When a director joins the condo board, it is not uncommon to sense tension between the newcomer and the current members at first. Experience suggests this tension is usually the result of the new board member taking the position of there is a new sheriff in town, without even knowing how the board functions and what are the issues.

This kind of situation should be resolved as soon as possible in order to avoid conflicts among the board members. Left unaddressed, it may negatively affect the corporation if conflict distracts the board from looking after the affairs of the corporation in the best interest of all unit owners in a timely manner.

To avoid a conflict as much as possible, every board member needs to understand how the board functions. In this regard, it’s important that the new board members, as well as all the current members, acknowledge their role.

Having all board members read and sign a “Directors’ Code of Ethics” document can help. This document should cover the following major items:

1. Honesty and good faith

Require the board members to act honestly and not to violate the trust of owners.

2. Care and due diligence

Ask board members to try to attend all board and owners’ meetings and become familiar with the affairs of the corporation, as well as the declaration, bylaws, rules and regulations, policies and the Condominium Act.

3. Conflict of interest

State that no board member should ever be in a position of conflict with respect to any matter related to the affairs of the corporation. Further, require board members to immediately disclose potential conflicts to the entire board.

4. Confidentiality

Require board members to keep confidential any information discussed and decided upon by the board. Clarify that this information is not to be disclosed to anyone, including partners or spouses. If questions about this arise, have the board member confer with the board.

5. Good conduct

Require board members to act in a professional and business-like manner as well as other attributes of good conduct, such as an open mind, integrity and respect.

6. Support

Require board members to abide by the decision of the majority of the board of directors, even if they disagree. Also acknowledge that board members have the right to express an opinion to owners on non-confidential issues.

7. Defamation

Require the directors to not make any statements that would damage the reputation of the corporation or any owner, resident, director, officer, manager, staff or contractor of the corporation.

8. Minimize conflict

Ask board members to promote the good image of the corporation rather than defame it. It is unacceptable for a board member to put down the other board members. It is important for the sake of the corporation to display unity.

9. Education

Ask board members to enhance their knowledge by doing things such as attending condo seminars and reading trustworthy materials/articles regarding condo matters.

All of these items are geared towards ensuring that board members respect their role in governing their condo corporation. Board members new and old should review Directors Codes of Ethics before signing them. The property manager or the corporation’s legal advisor can help walk board members through this document to ensure that they’re all on the same page.

Is the signing of a Directors’ Code of Ethics sufficient? Does this mean that the board members do not have the right to express their opinion if they disagree with other directors? A recent court case showed that once a decision is passed by a majority of directors after debate, no directors should attempt to undermine the decision by disclosing their disagreement to the owners and thus advancing their own agenda.

However, at present, there are no consequences outlined in the Canadian Condominium Institute’s Directors’ Code of Ethics in the event that a director breaches the document. Nor are there consequences outlined in section 37 of the Condominium Act, which requires that a director act honestly and in good faith and to exercise the care, diligence and skill that a reasonable prudent person would exercise in comparable circumstances.

One alternative is to take legal action, which is costly and creates additional bad feelings among the condominium community. It’s important to remember that under section 37 (3) of the act, a director shall not be found liable for a breach of duties if he or she relies on a professional report rather than information which was provided to him/her by someone other than the board or property management.

Boards also have the option of passing a bylaw to permit a majority of the board to remove a director who is found liable for not acting honestly and in good faith. In the absence of such a bylaw, the board could also call an owners meeting and try to get the majority of unit owners to approve the removal of the director.

Having all directors sign a Code of Ethics should help prevent this type of conflict. In addition, it’s recommended that new board members take a mini training course within 90 days of being elected to learn about their duties and obligations.

Written by Shlomo Sharon and Vaishali Taylor

The Ontario government is preparing to license both condominium managers and management companies. But until it rolls out the Condominium Management Services Act, the industry remains unregulated. In the absence of regulation, the Association of Condominium Managers of Ontario (ACMO) created its own condominium management standards, which it recognizes with ACMO 2000 certification. What does it mean to be an ACMO 2000-certified management company? Taft Forward’s CEO, Shlomo Sharon, and Vice President & ACMO 2000 Leader, Vaishali Taylor, explain.

There are currently about 600 property management companies operating in Ontario. At the

time of writing, only 39 of them possessed the Association of Condominium Managers of Ontario’s ACMO 2000 certification.

The ACMO 2000 certification predates the provincial government’s plans to regulate the condominium management industry. In fact, the association representing condominium managers in Ontario lobbied for licensing as a way to raise professional standards.

Bill 106, which introduced the Condominium Management Services Act, has been passed but it has not been proclaimed into force. For now, the industry remains unregulated.

In this unregulated environment, the ACMO 2000 certification recognizes condominium management firms who meet its core operational standards. These standards are designed to ensure the consistent delivery of high quality service to condominium corporations and provide benchmarks against which to measure ongoing performance. The ACMO 2000 certification is based on eight principles: Customer focus, leadership, involvement of people, process approach, systems approach to management, continual improvement, management by facts and supplier relationship.

The ACMO 2000 program provides credibility to participating ACMO members, who are supervised by

ACMO’s Condominium Management Standards Council. The council includes a lawyer, an accountant and Registered Condominium Manager (RCM), an Associated of the Canadian Condominium Institute (ACCI) representative, an engineer or architect, corporate member and/or experienced condominium board member.

A management company must meet the following eligibility criteria to obtain ACMO 2000 certification:

1. Legal status: The management company can be an incorporated company, registered partnership or a registered sole proprietor. It cannot be a condominium corporation or employee thereof.
2. Organization of the firm: The management company must manage a minimum of three condominiums or a total of more than 500 units and have an office, equipment and personnel to operate its business.
3. Experience: A senior operating manager or the owner must have at least five years of condominium management experience and possess the RCM designation.
4. Financial reference: The management company must provide a financial reference from its bank.
5. Membership: The management company must be a corporate ACMO member in good standing and actively engaged in managing at least one condominium in Ontario.

Initial certification involves an audit of the management company’s standards and procedures. The compliance audit is done through sampling, meaning it is not necessarily a full review of the standards, procedures and policies. The audit which takes place over two days, focuses on eight quality management principles to ensure that the management company meets all the ACMO 2000 requirements.

On the first day, the auditor meets with and interviews management executives regarding the firm’s ACMO 2000 policy and strategic objectives, and how they meet ACMO standards. The auditor then reviews the firm’s ACMO 2000 manual and associated, documented policies and procedures. This include management responsibility, board relations, purchaser and supplier relationships, accounting, administration and insurance, human resources and the measurement and improvement.

The auditor also selects fives properties from a list of properties under management provided by the company. The auditor then reviews their monthly operating reports, which includes the income and expense statement, cash disbursements and cheque register, accounts receivable, investment of the reserve funds, list of accrued invoices, bank statements, statements of reserve fund as well as actual financial statements and budgets.

On the second day, the auditor inspects any two out of the five properties that were chosen on the first day of the audit. These visits include a tour of the building’s interior, exterior, all facilities and common elements. The auditor also interviews site staff and reviews the building’s operations manual and associated records. If the condominium corporation does not have an on-site office, the auditor tours the exterior of the property.

The auditor prepares and sends his or her report directly to ACMO. Then, ACMO notifies the management company of the outcome.

There are two possible outcomes. One is that the auditor found no non-conformities and issued a clean report; the other is that the auditor identified deficiencies. If there are deficiencies, the management company must rectify them within six months from the date the report was issued.

Since management companies pay for these audits, it’s in their interest to ensure that they are in compliance not only for the audit purposes, but also to ensure that their day-to-day operations maintain ACMO 2000 standards. Once certified, the company must undergo compliance audits every three years to ensure that it continues to meet ACMO’s standards.

Just as management companies benefit from this certification, so do condominium corporations and their boards. Knowing the management company is ACMO 2000 certified gives the board additional security that the management company is expected to provide an assessable standard and consistent level of service to the corporations.

At some point in its life, a condominium corporation is likely to face issues in which the owners want to have their say or at least be made aware of. These events can include changes to the corporation’s assets, bylaws, common elements or services. They can also include litigation and special assessments.

In most of these cases, any decisions are up to the board of directors, but it may be helpful for the corporation to communicate with owners in the interest of transparency and let owners express their opinions. In addition, it may avoid surprising owners, which can lead to a backlash.

One way the board of directors can do this is by calling an information meeting and inviting all the owners to attend. It is also common to invite professionals such as contractors, engineers or lawyers that the corporation has hired to help in the matter at hand.

To prepare for the meeting, send a notice to all owners advising them of the date, time and place of the information meeting, the subject matter and the financial or physical implications it may have for the corporation and owners. Also, let them know who else is going to attend and speak at the meeting in addition to members of the board of directors and any guests such as the professionals named before.

Provide relevant financial information in the notice, too. If there is no cost implication to the corporation or owners, as in a situation where the service provider is undertaking the cost, say so in bold text in the notice. However, if a cost will be incurred, provide owners with the details.

The notice should also state that the information meeting is just that for information and will not require the owners to vote. Although, in some cases, the owners need to be made aware of their right to requisition an owners meeting for example, if the corporation intends to make an addition, alteration or improvement to the common elements, or a change in the assets or services of the corporation. In that case, the notice of the information meeting should inform the owners of what sections 46 and 97(3) and 46 of the Condominium Act require.

Essentially, the corporation must inform owners of the proposed addition, alteration or improvement along with its costs and how the corporation plans to cover them. That information must be delivered in a notice that also explains and includes section 46, which gives owners the right to requisition a meeting within 30 days of its receipt if they can collect signatures representing at least 15 per cent of the corporation’s stakeholders. The addition, alteration or improvement can only proceed if owners do not requisition a meeting in the prescribed timeframe, or if the owners do not vote down the addition, alteration or improvement at a requisitioned meeting.

It’s recommended that a “Code of Conduct” be attached to the meeting notice to establish ground rules. Also provide time for questions in the agenda.

In preparing for the meeting, board members should put themselves in the shoes of the owners, so that they are ready to address any questions. However, the board should not hesitate to recognize that sometimes the answer will not be ready available and they should commit to providing the answer within a reasonable time.

Have extra copies of the notice on hand at the meeting in case an owner has misplaced theirs.

The more information is communicated to the owners in a clear, precise and accurate way, the more likely the information meeting will be a success. After the meeting, don’t forget to follow up with owners with a summary of what occurred.

Written by Shlomo Sharon | 21 November 2015
Condo Business

Consider this scenario: At the first meeting of a newly elected condo board, the property manager advises the board members that they need to appoint a lawyer to represent and direct the corporation on any legal matters related to the condo corporation.

In response, one board member suggests that his brother-in-law’s daughter, who just graduated from law school, could assume this task. Since she has just started her own practice, he adds, she may not charge as much as other lawyers. Everyone in the room gets excited. This fictional scenario is one that has played out in real life, with slight variations, at many board meetings.

But wait a minute: Does this lawyer have the expertise to advise the corporation? Condominium law is complex and constantly evolving with the latest court decisions. And as more people choose to live in condos, new legal issues, such as whether corporation documents permit the type of short-term rentals facilitated by sites such as Airbnb, emerge. Recognizing the changing landscape, the Ontario government is currently working on reforming condo law with the proposed Protecting Condominium Owners Act. For all these reasons, corporations require the advice of an experienced condo lawyer.

An experienced condominium lawyer should be able to provide the corporation with clear opinions, practical legal advice and creative solutions to problems. Initiating a lawsuit is not always the preferred approach. Litigation can be very costly and the outcome is never certain.

For example, a corporation that is negotiating performance audit deficiencies may think that going through the courts is the most practical avenue to take. However, it may take a few years to go through the process, with legal and engineering fees mounting every step of the way. An experienced condo lawyer should be able to provide the most cost-effective approach, possibly by recommending negotiating a settlement with the declarant whereby the corporation agrees on an amount and then takes responsibility for effecting the repairs. The lawyer would also ensure that the proper releases are signed without compromising any future issues the corporation may encounter.

In addition to looking for an experienced condo lawyer, corporations should also consider his or her firm’s fee structure, response time and extra services.

Fee structure

Before appointing a firm, ask how it charges for legal advice: a flat rate or by the hour? Does the firm charge for every phone call or email?

If a corporation sends an email or leaves a voice message, it may be charged for both, even if it received no reply. It’s common for a lawyer to record a five-minute phone call, or an email, round the fee up to fifteen minutes of legal advice, and bill the corporation for it. At a rate of $400 per hour, that would cost the corporation $100.

Note: A lawyer who offers a cheaper rate but lacks condo experience may cost the corporation a lot more in the long run. A lawyer without condominium experience will likely take more time to research and answer a question than a lawyer with condominium experience.

Response time

Also look for a lawyer who will reply to the corporation within 24 hours, not four weeks later. Response times can be critical and expensive.

To offer a real-life example: A discussion arose during a board meeting, with regard to a unit owner that had distributed a confidential email to a number of other unit owners. The property manager and board members agreed that the board members required legal advice to deal with it. The property manager called the corporation’s lawyer on her cell phone and was able to get the right legal advice in no time, which allowed the board to move forward on the item. In this particular case, the lawyer’s advice was to: 1. email the unit owner to request that he immediately refrain from distributing the confidential communications; and 2. email the other owners to advise that the communications were confidential and to request that they delete the e-mail chain immediately and not to further distribute same.

Extra services

Find out what other services the legal firm offers. Does it host seminars about condominium issues? As new legal developments occur, these seminars can be very helpful to affected condo corporations. Does the firm publish bulletins or maintain a blog which board members can choose receive via email or mail to stay informed and up-to-date?

Last but not least, take the time to meet with the prospective lawyer. Don’t be shy to ask questions during candidate interviews. A questionnaire isn’t a substitute for a personality fit.

To recap, the corporation should consider fees structure, response time and extra services when appointing a lawyer. But above all, the corporation should prioritize condominium law expertise. And for that reason, the board in the hypothetical scenario cited earlier would be wise not to hire the cheap but inexperienced lawyer related to one of the board members.

So the board wants to change management companies. The first question to answer is: Why? What is it that the corporation isn’t getting from the current management company? What would the board like to see from the new management company?

Once a board has established what it’s looking for in a new management company, the board needs to determine how it will select a new management company. Will the decision be based on information the board gets in reply to its request for proposal (RFP), or positive references? Or maybe it will be based on an emotional connection which forms when the board meets with candidates.

The reality is: all of these factors will influence the decision. The board assumes the responsibility of selecting a new management company. This selection process requires an exchange of information and personal interaction between the board and the management company candidates, which begins with the board preparing an RFP for the management of the corporation.

Note: Only distribute the RFP after interested management companies have signed confidentiality agreements.

Disclose building basics

Introduce candidates to the building with the RFP. Disclose the basics, such as the age of the building, the number of units, the number of elevators, any amenities and any commercial units. Also point out specifics that may affect the building’s future operations, such as past events (e.g. floods) or improvements. It’s important to make the management company candidates aware of what they will be walking into if they win the contract.

Consider including the condominium’s common element fees per square foot to help management companies assess their ability to improve the building’s operations. Also specify whether the building is sub-metered or the utilities are included in the common element fees, as well as who manages the billing (a third party or the management company). In the latter case, additional fees may apply.

Set out service requirements

Clearly spell out in the RFP what services are required, along with the board’s expectations.

For one, the manager should be able to prepare the budget for the corporation and review the financial results with the board. A firm which has the right personnel and accounting software will deliver accurate and timely financial information that will improve the overall management of the property.

Also describe the building’s demographics, as services will often vary based on the age and background of residents. A building which skews senior may have residents who require more assistance, while a building which skews younger may require more rules enforcement as a result of social activities.

Include other responsibilities, such as overseeing contractors and maintenance staff, conducting monthly reviews of the building’s physical elements and responding to any new maintenance issues.

Consider the emotional connection

Technical and administrative ability are a prerequisite, but those aren’t the only factors to weigh when selecting a new management company. The emotional connection between the manager, the board and the residents will have a great impact on the success or failure of the future manager.

Once the board has received responses to its RFP and narrowed down its candidates to a short list, the board should encourage the management companies to visit the site to familiarize themselves with the property. Recognize, though, that such an inspection can only touch the surface. That said, it will allow both sides to get acquainted with one another.

Check credentials, contact references

Look for ACMO 2000-certified management companies. The certification, awarded by the Association of Condominium Managers of Ontario (ACMO), recognizes quality of service. More specifically, ACMO 2000 certification signifies that a company has successfully completed a third-party audit and complies with industry standards. Also consider making it a prerequisite that the management staff who will be assigned to the building either possess or be actively pursuing the Registered Condominium Manager (RCM) designation.

The board should prepare a list of questions to ask the references provided by the property manager. At least two board members should check the references. Keep in mind that references usually support the candidate. Therefore, it’s important to ask the right questions, which should cover daily management tasks and the management personnel.

Finally, insist on meeting the designated manager to ensure that he or she is the right fit. A good fit between the manager and the board will ultimately help alleviate the board’s workload. Clear communication is a key ingredient in the success of this relationship.

When hiring a new management company, always remember that while the physical and administrative abilities of the management company are important, so too is the human connection.

Setting a condominium corporation’s budget, which will ultimately dictate the monthly fees each unit owner is required to pay, is by no means a simple task. The previous year’s actual operating results serve as a good benchmark for the upcoming fiscal year’s budget. But the board, with input from the management company, may make further considerations in preparing the optimal budget. Accounting for all the factors at play requires a balancing act.

Some factors are in the control of the board and management for example, service levels. Others, such as insurance premiums, are not. Both types of factors will impact maintenance fees.

Consider the following factors in preparing a condominium corporation’s budget.

Services

Service levels will influence a variety of budget line items. For example, a corporation could change from part-time to full-time security, or plan for additional underground garage cleaning, which would increase expenses. Conversely, a corporation could switch from a full-time to part-time cleaner, or maintain versus improve the building’s landscaping to decrease or contain costs. And don’t forget to account for necessary ongoing building repairs and maintenance here.

Owner expectations

Owners may expect certain maintenance and service levels, but those levels come with associated costs. Where this can get complicated is when various groups of owners have different expectations.

Resident unit owners generally have a greater interest in the well-being of their home. Investor-owners who do not reside in a community are typically more concerned with their return on investment. The greater the condominium fees, the lower their return, as it’s not the renter who pays the condominium fees, but rather the investor.

What’s more, an investor-owner who plans to flip their unit for a profit will be cognizant of the fact that a prospective buyer may be less willing to purchase a unit in a building where maintenance fees are high. That said, a well-maintained condominium is also likely fetch a higher price.

Even in a building with mostly owner-occupied units, an owner of a smaller, less expensive unit may have different expectations from an owner of a larger, more expensive unit. The latter may be more willing to accept higher condominium fees than the former.

Management company’s input

The management company’s input into a budget is important. The management company must obtain quotes for each line item, as it is common to see different prices from different contractors for the same work description. The board may also wish to consider the management company’s advice on the quotes. However, the board has final say on the budget.

Utilities

The utility expenses section of the budget will also be set based on the prior year’s actual results, after taking into account any anticipated increases the governing bodies of the utility companies are expected to make. If such an increase is contemplated, it would be subject to the approval of the provincial government.

Insurance premium

The insurance premium expense can also be calculated based on the prior year’s actual, plus the industry’s anticipated standard percentage increase. The board will need to remember that any insurance claims the corporation has filed may also affect both the premium and deductible and will have to budget accordingly. The board may also choose to obtain new quotes. This expense can be determined with a level of certainty.

Reserve fund contribution

Normally, one of the largest line-items is the reserve fund contribution. This amount is determined by the engineering consulting company when it prepares the reserve fund study, which must be updated every three years.

In the end, a budget is a financial projection.

Even if budget preparations suggest a fee increase is unnecessary, a board may still have reasons to contemplate one. A surplus that is used to keep the fees the same one year may not occur in following years, requiring a higher increase then to compensate for the surplus amount. A delayed but higher increase may not be welcomed by owners used to seeing no increase.

While a budget should not be prepared with the purpose of creating a surplus, the knowledge that future years will require an increase due to inflation as well as wear and tear, a modest annual increase equal to the Consumer Price Index or in the range of two to four per cent may help to minimize unexpected future and larger increases.

Some owners may question an unnecessary increase. It is the board’s duty to provide a clear explanation in communicating the increase in the budget.

Ultimately, annual budgeting requires the board to account for fixed costs and to balance the continued upkeep of the common elements of the property and the financial ability and willingness of the owners to pay for it.

The Renter’s Guide

From time to time management will receive complaints, from tenants in their building, that one or more of their neighbours appears to have over loaded their unit with material things or sometimes even with animals.

The party that brings the complaint will request that management take immediate action against the tenant in question. The party complaining is, of course, very concerned about the safety of the building and the health and safety of the other tenants. This type of situation is commonly called “Hoarding”. Then there are similar situations whereby tenants are accumulating things in their unit and are not able to dispose of same, due to psychological conditions.

It is important for management to understand and be aware of the mental condition of the tenant(s) who are displaying this type of behaviour, as it may affect any actions that are taken by the landlord. This insight will help both the tenant in question and the landlord in trying to resolve the matter. Hoarding can be defined as “Obsessive Compulsive Disorder (ODC). People who suffer from this disorder are not normally aware of their problem. They are not cognizant to what is useful and what is not, and therefore they become attached to items and it becomes difficult for them to dispose of them. The mental state of hoarders is very different from clutterers. Clutterers will fill up space in a disorderly fashion and then do not know how to deal with it.

It is not easy for the landlord to evict a tenant in this situation, even though one may argue that this behaviour may fall into one of the categories which allow the landlord to evict them, as they are clearly defined in the Ontario Residential Tenancies Act, 2006.

If a tenant does not remedy a situation as noted in the Notice to Terminate a Tenancy, then the landlord can open an application with the Landlord and Tenant Board. Â The board will then schedule a hearing. The notice of the date of the hearing will be sent to both the tenant and the landlord. The tenant will then have the opportunity to present their position to the Board. If the tenant is found to have a psychological disorder, the tenant will be protected from eviction under the Ontario Human Rights Code, which forbids the discrimination of people who suffer from psychological conditions, and therefore cannot be evicted. It is very important in such circumstances, that the management company keeps very detailed notes on every development. It would also be very helpful and important that the management company, together with a health provider and the fire department, work together to try and resolve such circumstances without taking the eviction steps.

What is important to understand is that the biggest issue with hoarding is that hoarders do not see anything wrong with their collecting behaviour and very often do not have the insight of inconvenience they are causing to others. They do not realize that their accumulation of things is excessive or that it is putting others in jeopardy.

Condo Business

From time to time, a condominium corporation is required to tender contracts. Service providers may be engaged to conduct yearly or seasonal maintenance, such as landscaping, snow removal or elevator inspections.

Contractors may be brought in to remedy construction failure, such as roof replacement and underground garage repairs. And the performance audits and reserve fund studies condominium corporations are obligated to undertake can only be executed by qualified professionals.

The purpose of tendering contracts is to ensure that the corporation obtains the best possible price, from the best possible service provider, in a transparent process. The end result of the tendering process is a signed legal contract between two or more parties that outlines in detail the agreed-upon terms of the work to be performed.

Prepare an RFP

To start, the engineer or property management company acting on behalf of the corporation prepares a request for proposal (RFP) to solicit bids from potential service vendors. Following a thorough investigation of the issue, the corporation specifies the planned work to be scheduled, in detail, as per the engineer’s recommendations. The engineer will then prepare the tendering documents for Canadian Construction Documents Committee types of contracts.

A request for proposal should outline cost, materials, insurance and warranty requirements, as well as contact information for the contractors, as follows:

Cost

Include a breakdown of the cost of each aspect of the work. Indicate method of payment, including progress payments tied to the completion of certain aspects of the work. Contractors should detail the hold-back method, amount, percentage and the release of the hold-back in their tender submissions.

As well, provide for a contingency amount for unforeseen expenses and overages in materials, with detailed per-unit costs, with a maximum allowance. The contractor should outline any extra work he may contemplate in his bid, with a full explanation of his rationale.

Additionally, where a building permit is required, specify who is responsible for submitting and paying for the application to the municipality. It’s also important to remember that all the tenders should specify whether HST is included.

Materials

Specify the quality of the materials/supplies that are expected, such as the use of pet-friendly salt for snow removal, or the frequency with which the landscaping contractor should water or fertilize the lawn. Also, if the contractor intends to have a material variation/change, he must specify this, with all the relevant information, including the manufacturer’s name, the supplier, change in price, and the reason for and detailed description of the alternative. All parties, including the engineer (if involved), have to approve the required change order.

Insurance and warranty

The tendering documents should also specify warranty/guarantee for the work, as well as insurance and WSIB certificate requirements. These certificates should name the corporation so that the corporation is not liable in the event that a mishap occurs when the work is being carried out and results in an insurance claim.

Contact information

Ask contractors to include the name(s) of the parties (the contractor, the sub-contractor) that will be engaged in the work, their addresses and telephone numbers, the contact person’s name, the deadline for submitting a bid, the description of each stage of the work, and the timeline of the work, from the start date to the end of the contract.

Solicit bids

Send the RFP to a minimum of three contractors. Contractors should be solicited for bids based on having previous experience working with either the engineering company or the property management firm, or coming recommended for the specific work to be done.

Select a contractor

Once all the bids have been received, on or before the deadline, they should be opened by the engineer, property management firm and the condo board. Together, they should review the total price, the price components and any modifications proposed by the contractor.

The engineer or property management company should prepare and present its analysis of the bids so board directors can make an educated decision, and to avoid any future misunderstandings. Call contractors’ references to get feedback on the quality of their past work before making a decision.

Negotiate the contact

Once the contractor is selected, the corporation should investigate whether there is any room available to negotiate on the contract price, based on the information available. After this, the corporation signs the winning bid and, where applicable, the engineer draws up a CCDC contract for all parties’ review and execution. Thereafter, a meeting should be set with the contractor to schedule the work.

Check work prior to payment

The corporation should remember to have the engineer review completion of any stage of the work and issue a certificate of payment to ensure that the work was completed in accordance with the specifications before any payment is released.

The Renter’s Guide

Recently, we received a rental application for a unit in one of the rental properties that we manage. All the required information (current residence, rental history, employment history, personal references and income verification) was provided. The rental application also included the number of people who would be occupying the unit. At first glance, it appeared as if we were not going to have any issue with the application. The financial information, subject to verification, and the credit report seemed to meet the financial requirements. However, when we counted the number of occupants, we realized that we would have a problem. The number of persons who would be living in the unit exceeded the allowance that is permitted by the Toronto Municipal Code.

Chapter 629 Property Standards, Article IV, Paragraph 629-25, Occupancy Standards, Subsection C, states the following: “The maximum number of persons living in a habitable room shall not exceed one person per each nine square meters of habitable room floor area”.

Regrettably, we had to reject the application, as the number of people in relation to the available rental space did not meet code.

It is not an uncommon situation. Renters sometimes include not only their immediate family, but also their extended family, which wishes or is required to live together. However, it is not always possible. Landlords are very sensitive and worried as permitting such violations may put them in a peril situation, not only with the City, but also with their insurance company. We also recognize the fire risk. The situation of overloading is, unfortunately, still in existence especially in the rental of rooming homes.

It was not long ago that a fire occurred in downtown Toronto where lives were lost, just to find out later on that an overloading situation existed.

Beyond the fire code, overcrowding can lead to the building not being able to service the community properly. One should remember that when a rental apartment was constructed, it did not contemplate the number of people or the ratio of the number of people per square meter. However, the fire code does apply and therefore the restrictions on the number of people do apply.

So what can be done when the place you wish to rent is not available to you because of this particular Municipal Code? The straight forward solution is to try and look for a larger unit that will be able to accommodate the number of people in your family or extended family. This can be located in mainly rental apartment buildings, which are part of the old inventory or large rental town homes or houses. As well, try to see if two apartments next to each other can be a solution. Of course, you may have to pay for two units which may at the end cost more, but will provide the necessary space and comfort to meet your needs.

It is important to understand that it may be for no other reason, that an application is rejected, other than non-compliance of the Fire Code.

The Renter’s Guide

There is a point in the life of some renters which is extremely uncomfortable for both the renter and the landlord: Eviction. This can be as a result of: financial difficulties that a renter has encountered, sometimes as a result of misbehaviour by the renter and/or his guests causing damage to the unit or the building, it can also be as a result of interference with the peaceful enjoyment of the other tenants in the building, to name a few. All these reasons can be categorized as “fault issues”. It can also be due to what can be described as a “non- fault issue” of the tenant, such as: the landlord needs the rental unit for his/ her own use or for a member of the landlord’s close family who wishes to move into the unit, or sometimes due to a major renovation or conversion of the building to a condominium.

In all these situations, there may be a need to evict the tenant. However, the Residential Tenancies Act, 2006 outlines the procedures and steps to be followed in each of these scenarios. In each of the above situations, before the landlord applies to terminate a tenancy, a specific form (which varies depending on the reason of termination) will be required to be issued by the landlord, which in effect will be the commencement of the ending a tenancy. The notice will spell out the reason for this action. The most common eviction notice is for non payment of rent (N4). It is important for me to state here that despite the impression out there, landlords are not heartless and everyone understands that financial difficulties can happen to all of us. I would recommend that in such circumstances to immediately approach your management company or your landlord and advise them of the fact that you will not be able to pay the month’s rent. You should consider what financial arrangements you can make and advise him/her at the same time.

You should not be surprised that a good landlord will show an understanding and will try his best to work with you. However, if you have chosen to ignore it, and you just do not pay the rent which was due, or the landlord is unwilling to cooperate with you, the eviction process will begin. The landlord will have to wait a specific number of days, which are set in the notice, to allow the tenant to correct the issue. It is important for the tenant to read the notice to see what the reason for the notice is, and if there is any room for discussions with the landlord and if the matter can be corrected. The tenant can also call the Landlord and Tenant Board to learn more as to what can be done. It is only at the end of this period, and if the tenant has not yet corrected the issue or did not move out, then the landlord can open an application for eviction with the Landlord and Tenant Board. Once the application is filed, a hearing date will be set by the Landlord and Tenant Board. If the Landlord does not attend the hearing or sends a representative on his behalf, the Board may dismiss the application. If the Tenant does not go to the hearing or sends a representative to represent them, the Board can decide the application without them. At the hearing, all the parties involved will attend and will be able to present their case. At the end of the hearing a decision will be made. If an eviction order is issued, the tenant will be told when he must move out of the unit. If the tenant does not move out, then the landlord can file the order with the Sheriff, who is the only one who can evict a tenant. It is not uncommon that even after the notice is issued, that a settlement can be reached.