The competition to find an effective property manager in Toronto is teetering on a crisis as government housing targets loom. Here we look at possible property manager availability
challenges the aggressive government housing plan presents, with condo board tips to help you avoid them.

The Current Scenario

According to the Association of Condo Managers in Ontario (ACMO), there are 2,543 General Licence holders managing over 12,400 condominium corporations, representing over 900,000
units throughout Ontario. Experienced property managers will tell you that they can effectively manage about 270 units. This means we need about 3,333 licensed managers to address the
city’s current unit count.

Limited License Holders

While there are 1,638 Limited Licence holders assisting in condo administration, these individuals lack the credentials to legally do much beyond day-to-day administrative tasks. Once
Limited Licensees complete 2,920 hours (about 2 years) of condominium management services under the supervision of a licensed manager, they can receive their General License.

However, although General License holders are almost guaranteed a job, low salaries paid both for limited and general licensees can disincentivize license completion.

The Housing Plan

The building target for the housing plan is 1.5 million homes in 10 years. The target includes the completion of 100,000 condo units by 2028. Based on the recommended 270 units per property
manager, we need at least another 880 new licensed managers now, and another 370 property managers to fill the needs of condo corporations by 2028.

The Manager Salary Conundrum

Although condo management can be a highly fulfilling career, notoriously low salaries fail to attract new recruits and lead to lapsed licenses. Condo corporations should focus on offering
more lucrative salaries to help attract and retain talent yet are faced with internal pressures to reduce condo fees. As a result, condo boards must choose between maintaining low condo fees
and healthy reserve funds or having sufficient property management oversight.

Self-Managed Condo Boards

Although the Condo Act requires licensed management for condominium corporations in Ontario, condo corporations self-managed by a volunteer board are exempt. However, the
volunteers of these boards rarely have the skills required to perform their duties without guidance. So where will that guidance come from if there is a property management shortage?

The Importance of Proper Condo Management

Ironically, condo boards/corporations are forced to sacrifice condo management quality for cost. However, it is quality management that provides the insights to introduce cost cutting strategies.
As a result, smart condo boards and corporations should partner with efficient property management companies now before the industry experiences serious manager shortages.

This forward-thinking approach will create a domino effect for savings:

• The management company will immediately introduce cost-cutting strategies
• The savings can help cover management costs
• Improved management will avoid common element fee increases and possibly decrease them
• Financial planning will create a healthier reserve fund
• A healthy reserve fund will avoid the need for special assessments

If your board invests in the right property management now, you will avoid the management shortage and improve your short and long-term financial health.

At CPO Management Inc, a Toronto property management company specializing in condo management services, we can help manage your accounting and improve operational
efficiencies while finding cost-saving opportunities. For more information about how we can assist with your property management or for any other questions, contact us.