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Choosing between self-management and professional property management is one of the most critical decisions a condominium board can make. While the idea of saving money through self-management may seem appealing, understanding the full scope of responsibilities, challenges, and benefits of each approach is essential for making an informed choice.
Every condominium corporation in Alberta must comply with the Condominium Property Act, regardless of how it chooses to manage its property. The Act establishes comprehensive responsibilities that cannot be avoided, including financial management, reserve fund administration, bylaw enforcement, and compliance with provincial regulations.
Both self-managed and professionally managed condominiums operate under the same legal framework. The Alberta Condominium Property Regulation provides detailed requirements regarding reserve fund studies, insurance, and documentation that every board must fulfill. The key question is not whether these tasks need completion, but rather who will handle them and how effectively.
Managing a condominium corporation is far more complex than it may initially appear. The responsibilities include hiring and managing contractors for repairs and maintenance, fulfilling administrative duties such as maintaining owner registrations and responding to inquiries, handling financial management including budget preparation and collections, placing insurance and managing claims, and providing emergency response services around the clock.
In a self-managed community, all these important functions fall to volunteer board members who may or may not possess the necessary skills. These individuals often juggle full-time jobs and other life commitments alongside their board duties.
Potential Benefits of Self-Management
The most obvious advantage of self-management is the elimination of monthly management fees. For smaller condominium corporations with engaged owners and simple building systems, this can represent meaningful savings in the annual budget.
Self-managed boards also maintain direct control over all decisions and vendor relationships.
The Challenges of Going It Alone
Time Commitment and Board Burnout: Self-management requires a substantial time investment from board members. All the work that a management company typically handles becomes the responsibility of volunteers. Depending on the property size and complexity, this can significantly impact those giving up their personal time.
Risk and Liability Concerns: Board members in self-managed condominiums must thoroughly understand their bylaws and the Condominium Property Act. Without clear understanding of legal responsibilities, boards can face serious problems and potential legal disputes.
Limited Industry Expertise: Self-managed boards may lack experience in making decisions that maintain and increase property values. Without professional guidance, they might not fully understand the long-term implications of their choices regarding maintenance, reserve planning, or vendor selection.
Higher Operating Costs: While eliminating management fees seems cost-effective, self-managed properties often pay more for individual services. Professional management companies leverage bulk purchasing power and established industry relationships to negotiate favorable rates that individual boards simply cannot match.
Emergency Preparedness: When disasters strike, whether from fire, flood, or other catastrophic events, self-managed boards may struggle to respond effectively. Without experience handling emergencies, boards must invest significant time organizing restoration crews, insurance adjusters, and reconstruction companies, often without knowing who to call in the middle of the night.
Expertise and Industry Knowledge
Professional management companies bring extensive experience from managing thousands of condominium units of all types. They are industry experts who have built relationships with trusted vendors, service providers, and professionals including lawyers and engineers. They have encountered and resolved virtually every situation a condominium might face.
Since December 1, 2021, all condominium managers in Alberta must be licensed through the Real Estate Council of Alberta, ensuring a baseline level of competence, ongoing education, and accountability.
A professional management company helps maintain property values by guiding boards through important decisions about property maintenance, reserve fund studies, investments, insurance considerations, arrears management, condominium legislation compliance, and bylaw enforcement.
When it comes time to sell units, knowledgeable buyers thoroughly review condominium documents. They want to see healthy reserve funds, proper investments, accurate financial reporting, and evidence of sound governance. Some buyers are reluctant to purchase in self-managed buildings because they recognize these properties are often less expertly managed.
Professional management serves as the office of the corporation. Experienced staff handle paperwork and communicate with the board, owners, realtors, lawyers, financial institutions, and suppliers to ensure smooth operations. This means more gets accomplished in less time and with significantly less stress for volunteer board members.
Management companies allow boards to focus on strategic decision-making and policy development rather than getting bogged down in operational details.
Professional management companies maintain emergency plans for unexpected disasters. Companies with longevity have experienced most crisis situations and know exactly how to respond. They have managers supported by around-the-clock emergency service teams with direct access to experienced contractors and crews.
A common misconception about hiring a management company is that they take complete control once engaged. In reality, the elected board of directors remains responsible for running the corporation’s affairs according to the bylaws, including establishing overall corporation policies.
As the corporation’s managing agent, the management company has a responsibility to advise and help the board make informed policy decisions. The manager’s job is then to carry out those policies effectively. The best community managers form strong relationships with their boards, supporting them as they work with the best interests of the entire community in mind.
The decision between self-management and professional management should be based on a thorough understanding of what each approach truly entails. While both options require compliance with the same legal obligations under Alberta law, the path you choose will significantly impact your board members’ time commitment, your corporation’s risk exposure, and ultimately, your community’s property values and quality of life.
Ready to explore professional management for your Calgary condominium? UrbanTec Property Management brings over 30 years of experience helping Alberta condo boards achieve operational excellence and financial stability. Contact us today to discuss how professional management can benefit your community.
