The proliferation of condominium properties across the Greater Toronto Area in the past 20 years is truly staggering. Hundreds of thousands of units have been added to Toronto’s housing supply since the 1960s, when legislation allowed for this new form of home ownership and communally-minded approach to building upkeep.
Of course, the task of keeping the towering, often expansive communities in the sky operating in good condition is the responsibility of condominium property managers. These unsung heroes are responsible for everything from managing maintenance-related issues—think elevator repairs and snow plowing—to hiring the security firms that guard a property around the clock. But as Armand Conant, the former president of the Canadian Condominium Institute explains in a recent blog for the Remi Network, an acute shortage of trained and qualified condo property managers is raising concerns for many in the residential property industry:
Ontario has more than 11,700 condominium corporations. While a good number are self-managed – which, of course, is a very acceptable way of managing a building – most are managed by professional management.
That said, there are currently about 2,500 licensed managers, 1,500 of which are General Licensees, and an estimated 300 of these which are in upper management and do not manage specific buildings. This then means that there are only about 1,200 General Licensees for thousands of existing corporations. And with more condos coming on stream at a fast pace – the talent crunch is only intensifying
As Conant notes, the Condominium Management Services Act, which took effect in late 2017, requires condominium property managers to be licensed. That involves taking four mandatory courses and obtaining two years of experience before being designated as a ‘general licensee.’ Managers must also pay an annual fee to maintain their license. The legislation has introduced stricter guidelines and qualification requirements before an individual can take on this important—and often highly complex—role.
He suggests several tactics to ease the shortage, including educating unit owners and the condo industry at large as to the crucial role that managers play in “protecting the building, enhancing the market value of units, and in helping in improving the condominium community.” He also suggests working to boost and maintain higher managerial compensation rates and focusing on recruitment to attract more young people to the industry as retirement rates surge.
Of course, we also can’t forget that experienced property managers with the right expertise are a vital resource in helping to guide a condominium’s board of directors—who are typically resident volunteers with no experience in this area—on best practices to reduce legal liability.
When he mentions ‘protecting the building,’ Conant touches on another key point that many overlook. Condo property managers are responsible for a building’s security as mentioned above, and it’s in that area that ample experience is crucial. As a starting point, hiring an experienced individual who can juggle the many requirements of effective property management is an essential component for ensuring the safety of a property and its residents. Security personnel are typically the first line of defence in managing everything from emergencies to maintenance issues, so being able to liaise with—and deploy—guards in an effective way is important to delivering an optimal security outcome.
This acute property manager shortage highlights another potential vulnerability in the property-management process: effective security firm recruitment.
Property managers with the right experience and expertise will have the know-how to carefully recruit, vet and select experienced security companies with the right skill set to best protect their property and assets. That’s especially important when a condo or rental building’s population requires security staff with the right touch to provide effective customer service—think buildings that cater to seniors, as one example.
It’s even more essential when we consider that not all security firms are created equal. While many will have staff with experience patrolling low-rise properties, for instance, they may not have professionals with the expertise to manage the needs of one of Toronto’s many new ultra-high-rise condos. As we’ve noted in previous blogs, these soaring communities in the sky come with a unique set of challenges, from emergency evacuation procedures to far more complex maintenance and customer-relations requirements. The concierge service component across these properties is often as important as traditional guard services, particularly in buildings that cater to well-heeled, discerning residents. Choosing the right security company can have a direct impact on livability and even occupancy rates. The same holds true for commercial properties, where effective management can make or break a property owner’s reputation and a portfolio’s bottom-line performance.
Lastly, increased turnover in the property manager ranks—a common occurrence when professionals are in short supply and both stress and demand prompt individuals to frequently change employers—will only further complicate matters for residents and property owners going forward.
That’s why it’s important to take the property manager shortage seriously and take immediate steps to address the issue. Doing so will deliver long-term benefits across the commercial and residential property industry, ensuring the safety of buildings and residents alike.
Winston Stewart, President and CEO