Just when you think it couldn't get any worse in your Condo you wake up to some random decision that some board member thought would be a good idea. Those random decisions are made because boards are frustrated with owners and don't know what to do, they are not skilled at leadership, and fail to understand how to govern a condo building. These board decisions hurt all owners and drag down property values and if you are lucky that's the only consequence you face. Each condo board needs to develop their own way of making decisions that provides for thoughtful analysis that includes:
1. discussion of the pros and cons;
2. discussion of the consequences and how the decision could impact and effect owners
3. is the decision made in accordance with the ACT
4. the best possible way to fund the decision’
5. Finally, have we honored our fiduciary duty.
Sounds like a lot well it is a lot, its a lot because as board members you are responsible for human lives, a building and owners’ money.
When boards plan to make changes or implement new technology or repair the roof, it takes planning and consultation. For example, if a board is planning on adding a new intercom system – this is common these days, the old intercom systems from 20 years ago should be updated, they can be tampered with and are not very effective. When you are updating a new intercom system its recommended that you change the locks at the same time. Lock changes should occur periodically to make sure that there are not any keys floating around out in the world that could show up. In this instance the board has two situations that need to be carefully thought out. The intercom system updates should generally be approved at AGMs, the new systems are expensive, and owners should be provided an opportunity to approve these types of significant improvements and given the opportunity to review the options. Don’t just make the decision for the owners share in the governance and share with them the options the board has narrowed down. Explain the options and how the board intends to pay for the new intercom system. Once you’ve decided on the intercom system and the installation date the board needs to weigh the decision as to notification. Years ago before everything was electronic boards sat in lobbies for a couple days in the afternoon and at night to make sure they could catch as many owners as possible to make the key switch. There are so many ways to notify owners of the change and so many options to ensure a smooth transition. The one thing a board needs to ensure is that they do not lock anyone out and do any harm. Boards need to understand that owners could be away on vacation, in hospital, working and not able to attend the swap. Boards can’t just say oh well, too bad you didn’t make it so you’re locked out. That would be doing harm and it's a pretty awful thing to do Imagine coming home from a vacation you’ve planned for years on a long weekend and be locked out of your own home? Or, you’ve been working for weeks out of the country or up north, this is Alberta for goodness sake only to be locked out of your building? It’s horrifying and completely unnecessary. Condo communities don’t need to be singing Kumbaya with their owners every weekend but they need to make sure they aren’t being cruel and locking an owner out of their home because they couldn’t fit in with the board’s schedule. So how do you make sure your owners feel respected and do a good job? Well, depending on the building, several types of notification should be planned. A board should at the very least:
1. Put signs on all entrances as well as emails with clear instructions and information;
2. Boards should at least spend two days in the building at different times (the first day could be the morning and the next day after works hours) to catch owners and get them switched over to the new system and locks. After the two days in the lobby, the board should be provided with a list of owners who were able to make the changes.
Boards should never just change the locks the next day after the intercom system has been installed, it has to be a process depending on the building. There are so many ways to complete the task and protect owners at the same time. You could stagger the lock changes by putting signs on each door saying this lock will be changed on…please contact the board to make sure you have access. So they aren't locked out because there are other doors they can use but it reminds them to get their business done. These new systems could provide QR codes that could be placed on signs in the building so could set up independently and then have new keys put under the doors in the building. There are so many options to ensure that the changes are made without any issues and negative consequences for owners.
Being a board member is a big responsibility, it takes effort and skill, the best board members are empathetic and caring individuals who have organizational skills and listen to their owners. Board members need education to understand their obligations and responsibilities and the scope of their power and authority to ensure the corporation is operating at its best and to ensure they don’t just make random decisions that could harm the owners in your building. Have a good weekend everyone!
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