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Understanding the structural flaws in condominium governance. And how to avoid them.
Finding Cost-Effective and High-Quality Condo Management Solutions
Condo owners often face high maintenance fees without seeing the corresponding service quality. Condo BI is developing a business intelligence tool to help condo directors optimize management efficiency, cut costs, and improve service quality. Our extensive research has uncovered critical insights into how some condos maintain top-tier services at a fraction of the cost
Best Examples of Condo Management Practice in Toronto & GTA
Best Condo Management Practice Exhibition. Best examples of condo management efficiency to show condo directors. Toronto & GTA
Key Findings from Our Research
Condo Fees Are Not Always Linked to Service Quality
Our January 2022 and July 2022 studies revealed striking differences:
- Some luxury condos with multimillion-dollar market values charge as little as $0.23 – $0.37 per sq ft/month for maintenance.
- Others charge four times more yet struggle with over $9 million in debt and require $14 million for emergency repairs.
📌 Conclusion: High condo fees do not always mean better service or financial stability.
COVID time was not a reason for many condominiums to raise condo fees. Some condos increased condo fees dramatically, but some condo did not change it and some of them even decreased.
Self-Managed Condos Save Money & Increase Property Value
A November 2022 study found that self-managed condominiums outperform professionally managed ones:
- 18% lower maintenance fees on average.
- 9% higher property values compared to condos managed by professional firms.
📌 Conclusion: Many professional management companies introduce unnecessary costs without delivering better results.
The Biggest Issue: Flawed Condo Management Practices
Our research uncovered major flaws in condo management decision-making:
🚩 Conflicts of Interest: Many condo decisions are made in conditions of a conflict of interests
🚩 Lack of Transparency in Vendor Selection: Many condo management companies use their preferred contractors and a pre-selection process is restricted for independent contractors and not transparent for condo directors. Some boards believe that having three to four quotes means transparency, but in reality, the pre-selection process itself is where decisions are made.🚩 No Performance Evaluation: Many condos fail to track project outcomes, leading to wasted resources.
Why Does This Matter?
These flawed processes put condo owners’ money at a very high risks and often result in subpar service quality.
📌 Key Takeaway: Condo owners and directors must verify if their management company uses transparent management processes in the areas of high risks:
Major Risks in Condominium Projects Explained
What Can Be Done to mitigate risks?
To protect condo owners and improve cost efficiency:
It is crucial to hire a transparent condo management company.
Request a list of
Transparent Condo Management Companies
and
4D Transparency Model Demo
FREE for Board Directors!