The Risks of Long-Term Leadership: Why Rotating Condo Directors Matters
Are you so busy to vote in your condo?
A few years ago, we owned a rental condo unit in downtown Toronto. It was in a prime location, consistently in high demand by young professionals—lawyers, businesspeople. The condo fees were low, and when it came to Annual General Meetings (AGMs), we never attended. We simply didn’t care. I remember handing over a signed proxy for the AGM, and when I was asked whether it was okay for the property manager to appoint any name, I agreed without much thought.
However, a year later, we had a rude awakening. The condo board wanted to spend over a million dollars on a project that could have been covered by the warranty, or done for less than $200,000 by the original contractor. The property manager had hidden the contractor’s more affordable quote and brought to the board table the quotes that were much higher.
Too Late awakening
We realized that things had gone terribly wrong and tried to rally the other owners, but it wasn’t easy. More than 50% of the units were rented out, and it was impossible to contact many of the actual owners. We spent a great deal of time and effort trying to stop the board from squandering over a million dollars on unnecessary expenses.
We eventually succeeded in stopping the board from making these unnecessary expenditures, but the experience taught me a valuable lesson.
The quality of property maintenance and the amount of condo fees we pay is a direct reflection of the attitude of the owners. Our indifference allowed the board to be equally indifferent to our needs, and fixing the problem took a lot of effort and time for us.
Similar problems are everywhere
This wasn’t the only issue we faced, both with the condo we rented out and the one we live in. Eventually, I started a company to address condo problems:
That company is dedicated to making the condo market more transparent and competitive. The main goal is to transform condo service market empowering condo board directors with AI-powered information, so they can make well-informed decisions that provide the best quality and value for all owners.
How Major Players in the Condo Market Operate:
The condo market is often dominated by a few powerful players, and their influence extends across multiple areas. Here’s how these major condo market players typically operate:
Influence Over Decision-Making: Large property management companies and developers often have strong ties to condo boards. These relationships can influence critical decisions, sometimes prioritizing their interests over the best outcomes for condo owners.
Long-Term Contracts with Little Oversight: Many big players secure long-term contracts with little room for competitive bidding. This lack of oversight can lead to inflated prices and services that don’t always deliver the best value.
Control Over Maintenance and Renovation Projects: Big players often steer maintenance and renovation projects toward contractors they have long-term relationships with, bypassing more cost-effective alternatives.
Minimal Transparency: Transparency is often lacking when it comes to finances and decision-making processes, leaving condo owners in the dark about how their fees are being spent or why certain decisions are being made.
Use of Legal Leverage: When faced with resistance, major players sometimes use legal pressure, including condo lawyers, to silence opposition or enforce compliance.
Understanding how these big players operate is essential for condo owners who want to ensure that decisions are made in their best interest. Awareness and active participation in condo governance are crucial to maintaining fair practices and protecting the value of your investment.
Why is long-term power dangerous?
So, why would some condo board directors want to remain in their positions for 10-15 years? Why do they spend so much time working for free, while constantly protecting the ways of property management companies choices? Why do they resist receiving independent quotes and quality comparisons from outside contractors? Why do they sometimes exhibit aggressive behavior toward other board directors and owners? Why do they resort to using condo lawyers to intimidate and “convince” others?
The answer is rooted in the dangers of holding power for too long. Just like in politics, when someone stays in power for too many years, they can become a dictator. Consider historical examples like Vladimir Putin, Adolf Hitler, Joseph Stalin, and Saddam Hussein, Benito Mussolini, Muammar Gaddafi. When individuals hold on to power for too long, they often stop serving the interests of the people and instead become consumed with maintaining their authority and influence.
This is why regular leadership rotation is crucial! It prevents individuals from becoming too comfortable in their positions of power, ensuring that fresh perspectives and ideas are continually brought to the table.
Condo owners don’t be indifferent to elections!
You have the power to make a change. Don’t let long-term directors who are more interested in maintaining their influence than in serving the community control the decisions that affect your property and your investment.
Vote for directors who are motivated to bring positive change and who are open to new ideas and solutions!