Let’s talk about the world of small condominiums in Quebec, a concept designating a small-scale real estate complex. These entities are characterized by a limited number of private lots, each under the individual ownership of a possessor. Duplexes, triplexes, quadruplexes or even modest buildings with 6 to 12 dwellings illustrate this architectural variety.
Municipalities sometimes encourage the emergence of these small condominiums, which are built around townhouses or townhouses and flourish near collective green spaces. These habitats represent an attractive alternative for families, combining the intimacy of an individual home with the conviviality of life in a condominium. To ensure the harmonious management of these spaces, property management and engineering as well as the use of tools such as the property maintenance logbook are essential, making it possible to guarantee the sustainability of the common infrastructure and to preserve harmony within the community.
Concerning the specificities of these small structures:
- Their size is often reduced to a handful of units.
- Their management, lightened by the small number of co-owners, allows for optimal responsiveness and distribution of responsibilities.
- The intimate setting of the assemblies encourages dialogue and consultation.
- The monthly costs for the administration are reduced due to the structural simplicity and the small number of residents.
In contrast, large condominiums, with their many dwellings, require a more structured organization, often under the leadership of professional managers. Decisions are more laborious and maintenance costs, increased by the scale of services, are higher.
In Quebec, the prevalence of small condominiums varies by location and type of property, with more pronounced in less densely populated areas. The influence of these condominiums on the real estate market and social life is undeniable and depends on various economic and social factors.
These smaller entities, like their larger counterparts, are an important part of the real estate market. They impress with their affordability, simplified management and warm atmosphere.
The preference between large and small condominiums is determined according to the desires, needs and financial means of the buyer.
According to research conducted by Micheline Renault and Patrick Coulombe of ESG UQAM, in collaboration with the RGCQ, more than 90% of condominium buildings in Quebec have fewer than 21 units. Condominium trends are evolving, reflecting a growing desire to build innovative, connected, and sustainable communities.
In small condominiums, the board of directors benefits from a certain flexibility. The composition of the board is determined by the declaration of co-ownership, and it is not uncommon for members to assume several functions, in line with the needs of the community and the involvement of the residents. The objective remains the effective management of the responsibilities inherent in co-ownership life. To facilitate this management, tools such as the register of private portions in co-ownership and the maintenance book for co-ownerships ensure the traceability of information and the maintenance of common areas. Effective real estate project management also ensures that the work necessary to preserve the infrastructure is well coordinated.
Condominium administrators: a key mission
At the heart of condominium life, directors take on crucial roles, whether they operate within a small or large condominium. They embody the guarantors of sound and efficient management, meticulously ensuring the preservation of the buildings, the administration of shared spaces and the protection of owners’ rights.
Management Challenges and Strategies
In their quest for optimal management, various obstacles stand in the way of administrators.
- Communication: a major challenge
Challenge: Disseminating information can be difficult.
Solution: Implement transparent communication vectors, such as newsletters, meetings and digital platforms, to keep co-owners informed of decisions and issues. - Finances: rigorous management
Challenge: Finances require constant attention, from the collection of expenses to the preparation of budgets.
Solution: Rely on accounting experts or property managers to develop a relevant budget, ensure effective collection of expenses and ensure financial transparency. - Conflicts: for a preserved harmony
Challenge: Dissension between owners can affect usability.
Solution: Establish mediation procedures and act promptly to de-escalate tensions. - Internal regulations: imperative respect
Challenge: Violations of internal regulations can generate friction.
Solution: Firmly communicate the rules, impose balanced sanctions, and cultivate mutual respect. - Legislation: constant monitoring
Challenge: Legislative change requires continuous adaptation.
Solution: Stay informed about laws, participate in specialized training, and adjust practices to maintain regulatory compliance.
By adopting relevant strategies, administrators can orchestrate a harmonious and efficient management of the co-ownership.
For administrators, novices or experienced, it is advisable to join associations such as the RGCQ or the ASCQ, in order to benefit from comprehensive support and to participate in continuing education. In addition, the literature offers resources such as the Manuel de gestion d’un syndicat de copropriété au Québec, published by Wilson & Lafleur, to deepen their knowledge.
The General Assembly
The general assembly, the pivot of the co-ownership, brings together the owners to deliberate on the management of their building. A platform for exchange, it allows each co-owner to question, debate and rule on crucial issues.
The organisation of these meetings is strictly formal: the board of directors notifies each member by mail or electronically, within a prescribed deadline. The notice, detailing the meeting, includes the agenda and, if necessary, additional documents.
The topics covered are varied and essential: financial statements, budget estimates, standards to be adopted, officers’ reports, elections, not to mention miscellaneous issues.
In Quebec, the Civil Code regulates these practices. A syndicate of less than five units adjusts to a separate framework, where the majority co-owner sees his influence balanced with the other members.
Each case should be examined carefully, considering, if necessary, mediation or arbitration.
Bill 16 and the reform of co-ownership
Law 16, adopted in 2020, reforms the sector by introducing major changes, particularly in terms of financial transparency. It prescribes the segregation of accounts for working and reserve funds. This legislation also required a study of the contingency fund and a maintenance logbook, the terms of which would be specified by a subsequent government regulation.
This legislation also required a study of the contingency fund and a maintenance logbook, the terms of which would be specified by a subsequent government regulation.
While Bill 16 modernizes the co-ownership regime, it raises challenges, especially for small syndicates facing increased financial requirements.
Most of the provisions apply equally to condominiums, whether small or large. Nevertheless, adjustments, integrated during the examination of Bill 31, offer welcome flexibility, allowing the standards to be adjusted to the specificities of the buildings.
The law also clarifies the distribution of charges, the registration of penalties in the deed of co-ownership, and makes the register accessible. It establishes an automatic power of attorney between co-owners at meetings and obliges directors to disclose the minutes within 30 days, thus guaranteeing greater transparency.
Finally, it reforms the voting procedures, facilitating the decision-making process, which is particularly relevant for small structures where interaction is often more immediate.
Insurance and financial strength in condominiums
The advent of Bill 141 in Quebec has shaken up the insurance landscape of condominiums. From now on, the syndicate is obliged to take out an insurance policy reflecting the replacement cost of the building, drawn up by a professional. This coverage covers damage to both common and individual areas. It is imperative that the syndicate clearly delineate the private units, excluding leasehold improvements, to determine precisely the extent of the protection.
The legislator also requires the syndicate of co-ownership to take out civil liability insurance. The purpose of this policy is to cover members of the board of directors, meeting officers and staff against the risks inherent in the exercise of their prerogatives.
The law also recommends the constitution of a self-insurance fund by the syndicate, in an amount equivalent to the deductible, thus strengthening the financial resilience of the condominium in the face of disasters.
These legislative adjustments impose an obligation on co-owners to obtain civil liability insurance, which directly influences their financial security.
The objective of these provisions is to consolidate financial protection and management within Quebec co-ownerships.
Condominium Finance and Administration
Rigor is required in terms of financial management and accounting for condominium administrators. Budgeting requires a keen understanding of operational needs and numerical forecasts. A small condominium can dispense with in-depth accounting skills, calling on the expertise of a professional if necessary. Nevertheless, the accuracy of financial data, compliance with accounting standards and tax obligations remain essential.
Regarding the annual provisional budget, the syndicate must establish one to meet the financial needs of the building. It includes an operating fund for recurring expenses and two separate funds: a self-insurance fund and a contingency fund for the maintenance and renewal of common elements, the latter based on a contingency fund study, if completed.
Although the regulations on the study of contingency funds and the maintenance logbook are not yet in force, obtaining them is recommended for a more accurate evaluation of real estate needs.
Specialized firms, such as REGISCO, offer innovative research services and tools, particularly suitable for small unions.
The calculation of the annual budget includes the operating, self-insurance and provident funds. The charges are divided between the co-owners according to the terms of the co-ownership regulations, with monthly fees proportional to their share.
Planning and management of the work
The building’s condition certificate, the contingency fund study and the maintenance logbook are essential references for anticipating the building’s conservation work. During major work, the use of an engineer or architect is recommended for the design of plans and specifications, and for obtaining tenders. The syndicate must keep the co-owners informed and supervise the site, thus ensuring compliance with standards.
Emergency Orchestration
The syndicate, in its pivotal role, establishes an emergency protocol to react effectively in the event of a disaster. This precise system guides directors and co-owners towards the actions to be carried out and the contacts to be mobilised during crises. With insurance covering the entire building, the union is directing the manoeuvre at these critical moments. To ensure optimal risk management, it is essential to maintain an up-to-date property maintenance logbook and to carry out regular building health diagnostics in order to prevent losses and ensure adequate responsiveness in the event of an incident. The proactive management of the syndicate thus guarantees the security and sustainability of the shared infrastructures.
Whether it is shared spaces or private lots, urgency requires that access be made easier for responders for any intervention required.
Stand-alone or professional management
The balance between autonomous management by administrators of a small group and the appointment of a professional depends on many parameters without a single solution.
The final decision is based on the administrative skills present, the size of the co-ownership, the financial means and the commitment of the administrators in the day-to-day management. Seeking the opinion of co-owners, comparing the offers of managers and weighing the pros and cons is a good idea before making a decision.
Services for small unions
Selecting a manager requires detailing the needs specific to the condominium to ensure the adequacy of the professional with the specificities of the community.
Smooth communication with owners is crucial. The manager must ensure constant interaction, provide information on important files and respond promptly to questions.
Regisco guides you in choosing a manager adapted to your condominium.
Pricing and Costs
Before deciding, it is essential to analyze the specific needs of the condominium, the skills of the owners and the costs related to hiring a manager. Comparing several proposals allows you to properly assess costs and benefits. It is also crucial to understand the details of the management costs and the services that can generate additional costs.
The remuneration of a manager is generally designed on an annual basis with a list of included services defined in the contract. Although pricing models vary, a system based on the number of units is often advocated.
Thus, for 10 units at $40 per door, the calculation would be $40 multiplied by 10, then by 12 months, resulting in a charge of $4,800 excluding taxes for annual management, or approximately $5,500 after taxes added to the estimated budget.
Over a decade, this representative management charge could reach $55,000, a considerable sum.
Harmonization and conflict management
At the heart of life in a small condominium, the understanding between residents plays a crucial role. Disagreements, arising from differences on the management of the common good or from opposing personalities, can be legion. Transparent communication is essential: hold regular meetings, focus on positive dialogue, and work together towards shared solutions.
For a serene management of tensions, the clarity of the regulations is essential from the outset. When faced with breaches, opt for benevolent reminders before considering sanctions. Direct communication is to be encouraged; If necessary, an impartial mediator may be indispensable in re-establishing dialogue and forging agreements. Irreproachable financial transparency dispels misunderstandings. Irreproachable financial transparency, in particular thanks to the good management of contingency funds and the use of a maintenance logbook, dispels misunderstandings and contributes to a serene and harmonious administration.
Condo Conseils offers specific training to guide you in the effective resolution of disputes in co-ownership.
Regarding self-management, Julie’s example in Montreal is eloquent. His small union, made up of six members, shares tasks, from maintenance to accounting. In a small structure, it is often prohibitive to use professional services. This is why it is advantageous to establish consistent practices, involving residents and making them aware of the dynamics of condominium life. It is time to design a “cohabitation contract”.
Legislative developments
On the legislative front, it is imperative to think about the necessary changes for small condominiums in Quebec. Extensive consultations are required to develop constructive proposals to submit to the Government. The main current recommendation is to take into account the specificities of small unions, which do not always have the same resources as large structures.
For the co-owner invested in the management of his small co-ownership, success is based on several pillars: mastery of the law, effective communication, rigorous financial management, relevant monitoring tools, decision-making transparency, conflict resolution, use of experts, preventive maintenance, and constant updating of residents on new practices. Organization is essential to manage various files.
Stay up to date on legislative developments and best management strategies. Continuing education is your ally in preserving your competence and acting with discernment.
By following these tips, an administrator will solidify his or her role and promote a harmonious and efficient climate within the condominium.
