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Friday June 13 2025

Changing management companies : A crucial step that deserves careful planning

Are you a member of a condo board considering a change in property management? Before making any decisions, it’s essential to perform thorough due diligence to ensure a smooth and beneficial transition.

Think of your management firm as the pilot of an airplane — they’ll be at the controls, guided by the board’s directives. Choosing the right firm requires evaluating multiple criteria. Otherwise, the switch may not serve the best interests of your co-owners.

Start by identifying why you’re considering ending your current manager’s contract. Common reasons include lack of follow-through, failure to meet contractual obligations, high fees, or a desire by the board to resume self-management.

What to look for when comparing management firms :

1. Price

Cost is often a deciding factor — but the lowest price doesn’t always mean the best value. Many variables affect pricing, so make sure you’re comparing apples to apples when reviewing bids.

2. Services Included

Your syndicate’s needs will determine the type of contract — whether it’s financial/administrative management, full-service management, or a premium option. The more complex your building and the higher the resident turnover, the more hours of management your contract should include. Otherwise, the board will have to fill the gaps.

In larger buildings, contracts often include full-time on-site staff. These employees may be hired directly by the syndicate or provided by the management firm. Having syndicate employees can lower costs (e.g., no sales taxes, direct negotiation of wages and benefits), but it also means the board will be responsible for overseeing them.

3. Billable Extras

Most standard contracts cover core services like administrative management, bookkeeping, budgeting, vendor management, and organizing board and annual meetings. However, many include additional services billed by the hour, such as:

Claims management
Oversight of major repairs or improvement projects
Special board requests (e.g., installing cameras, upgrading access systems, improving common areas)
Legal or dispute resolution
Ongoing by-law violations
Follow-up on audit recommendations

Review your building’s recent history — past claims, special projects, and anticipated needs — to estimate future costs and compare each firm’s approach accordingly.

Premium contracts may include a set schedule of on-site staff (e.g., 40 hours/week) and a bank of director-level management hours. These hours can be used for complex tasks like restructuring staff, budget modeling, drafting procedures, or overseeing large-scale projects. Ensure this bank is sufficient to avoid end-of-year overages.

4. Relationship with Key Contacts

Board members come from diverse backgrounds, and personality conflicts can happen. While most boards find ways to collaborate, unresolved issues can affect decision-making.

The same goes for your manager. It’s crucial that the team you’ll be working with shares your vision and priorities for the syndicate. A strong fit and good chemistry with your management team are essential.

Before signing any contract, interview key personnel to align on expectations and ensure a productive working relationship. Addressing these matters upfront avoids future misunderstandings.

5. Competence and Internal Resources

Each building has unique needs. A firm managing a complex property should have access to specialized professionals — accountants (CPA), HR experts (CRHA), legal counsel, technologists, architects, etc.

On the other hand, smaller syndicates seeking a personalized approach may prefer a boutique firm with a simpler internal structure.

6. Potential Conflicts of Interest

Some management companies are owned, in part or whole, by real estate developers or related parties. This could lead to a conflict of interest — for example, if your syndicate is negotiating the turnover of common areas and the management firm is partially owned by the developer. Transparency and neutrality are essential.

7. Use of Specialized Management Software

Over the past five years, new legal and administrative obligations have changed the role of condo managers. Your firm should be using modern, efficient tools tailored to today’s market.

Also, ensure that the software used by your outgoing and incoming managers are compatible, or that a solid plan is in place for transferring all critical data so that operations can continue without disruption.

8. References and Reputation

Still undecided between two candidates? Reach out to their current clients for feedback. Real-world insights can confirm — or challenge — your impressions and help you make a more informed decision.

In Summary

Switching property management firms is a significant decision. Taking the time to evaluate your options carefully will help you avoid regrets and ensure that the transition is in the best interest of your co-owners.

As board members, your responsibility is to act in the collective interest of your community — and not every change is necessarily for the better.

Wishing you a successful search,

Renaud Bourassa
Director of Property Management