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Role of Board of Director vs. Property Manager

May 01, 2015
Role of Condo Board of Directors vs. Property Manager, Larlyn Property Management

Property Managers act as partners to assist the Board of Directors with the management of their community.  Each has their own strengths and together they can work as a very successful team.  Board Members are volunteers quite often with minimal experience or expertise yet are managing significant assets – people’s homes.  That’s where the Property Manager comes in – they provide the expertise and experience to help the Board make the best decisions to ensure they are taking the best care of their condo corporation.

HERE’S A BREAKDOWN OF TYPICAL FUNCTIONS OF THE MANAGEMENT OF A CONDO CORPORATION IDENTIFYING THE ROLE OF THE BOARD OF DIRECTORS VS. THE PROPERTY MANAGER:

FUNCTION BOARD OF DIRECTORS PROPERTY MANAGEMENT
Policies & Procedures Sets, approves, delegates Provides recommendations, implements
 Bylaws & Rules Sets, approves Provides recommendations, enforces
 Act, Declaration, Bylaws, Rules Enforcement Authorizes, delegates Carries out enforcement based on policies and procedures previously approved
 Budget Identifies wishes, reviews, approves Prepares, reviews with Board of Directors, provides recommendations, sends to owners once approved
 Maintenance & Repairs, Contracts, Insurance, Appraisal, Reserve Fund Study, Employees of Corporation Approves Obtains quotes, prepares analysis, provides recommendations, implements board’s decisions, monitors performance, reports to board upon completion
 Owner Meetings Calls, chairs, sets agenda, conducts, determines matters to be voted on, proposes bylaws  Arranges location, sends notices, registers owners, assists chair to ensure motions are being called properly
 Board of Directors Meetings Calls, suggests items for the agenda, conducts meeting, approves minutes Prepares agenda, presents Property Management Report including financial statement, items for approval, pending items and information
 Investments Sets policy, hires financial adviser Provides adviser options, transfers funds as per direction, maintains reporting of investments, keeps board informed of maturity dates
 Emergencies Obtains report, makes decisions as required  Takes immediate action, reports to board
Financial Reporting Approves Prepares monthly financial statements, distributes to board
Communication between Board & Property Management Keeps property management informed of all information Keeps board of directors via liaison person informed of all information
Relations with Owners & Residents Advises owners and residents to put concerns in writing to the board through the management company and makes decisions on concerns Acknowledges receipt of letter in writing with appropriate reply, attaches to property manger’s report if board decision required
Committees One board member to be a liaison on each committee.  Committee reports to board for any decisions Assists committee chairperson within scope of the management contract, does not take direction from the committee

To be certain of responsibilities, refer to your management contract and clarify with your Property Management team.  In a nutshell:  Boards make the decisions.  Property Managers provide administrative support and expert advice.