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CONDOCENTRIC Protecting Your Condominium Community
In this day and age, protection of your condominium community has numerous facets and layers of meaning. However, here are some practical ways to protect the community.
With respect to the assets of the Condominium Corporation, hiring efficient, experienced and knowledgeable management that is well resourced and understands the need to report to the Board of Directors regularly on the status of maintenance and repair of the common elements is essential to the preservation and longevity of the capital assets of the Condominium Corporation. Proactive care of assets can lengthen the life span of an asset. This means that during the budgeting process, the Board based on advice from management and a review of the Reserve Fund Study, can adequately anticipate certain maintenance and repair projects for the upcoming year. Unit owners dislike nothing more than an unexpected special assessment.
Negotiation of and/or tendering of service contracts to protect the Condominium Corporation is another way to ensure that the Condominium Corporation is not unduly taken advantage of and is bound by market terms. For example, a clear description of the services to be provided, that is, the nature and scope of services to be provided, together with the timing of the services to be provided should be included in the contract; there should be provisions for adequate termination rights, ideally with little or no penalty to the Condominium Corporation and a short period for termination; indemnification rights amongst the parties must be well balanced; adequate insurance coverage for service providers should also be insisted upon as a term of the contract; and compliance with applicable laws at all applicable times during the term of the contract should be borne by service providers. As well, the term of the contract should be carefully considered where there are inadequate termination provisions. Ultimately, the contract should reflect the risks profile which is appropriate for a non-for-profit corporation in the context of the nature and scope of the contract and work to be provided pursuant thereto. Further, terms for service and meaning and reasonable contract term should also reflect the economic realities of the Condominium Corporation.
Creating a safe physical environment within the condominium community enhances value and protects your community. Accordingly, where the community desires, the use of a twenty-four hour concierge/security, can enhance safety. However, this is a costly option which may not be available to all Condominium Corporations. Alternative solutions include the use of card readers at key access points, the use of part-time security and the use of cameras. Well lit hallways, stairwells and walkways also enhance safety. Further, the establishment and consistent enforcement of rules and procedures with respect to the admittance of guests to the condominium premises are key. It is disconcerting when delivery people are permitted into the building without signing in and are given the latitude to wander the Condominium Corporation. All guests should be required to sign-in and where appropriate, guests should be announced to unit owners, where a concierge is in place.
The Board of Directors can further protect the Condominium Corporation from liability by making sure that it adheres to Corporate Governance procedures and processes for decision making. This will ensure that well-informed, well-reasoned and transparent decisions are made by the Board.
Making unit owners and residents aware of the rules and procedures can often be half the battle. In this regard, newsletters, community bulletin boards, websites, coffee mornings, information meetings and signage can assist in communication of the information and foster a sense of community for your community; and protect it and help it grow in a healthy way.
From "Common Elements” Fall 2008
All of the information contained in this article is of a general nature for informational purposes only, and is not intended to represent the definitive opinion of the firm of Elia Associates on any particular matter. Although every effort is made to ensure that the information contained in this newsletter is accurate and up-to-date, the reader should not act upon it without obtaining appropriate professional advice and assistance.
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