Duties of A Condo Administrator in Alberta
As a condo administrator in Alberta, you are the main representative of the condominium corporation. You are integral to the day-to-day operations of the building and corporation, serving as the point-person for issues relating to condominium management.
With so many hats to wear, let’s take a closer look at your duties, and how to go about fulfilling some of these responsibilities.
The job of condo administrator
The responsibilities you have as a condo administrator are varied. Not only are you responsible for managing the budget and maintaining the building, but you are also in charge of board meetings, upholding bylaws, as well as ensuring both the corporation and its residents hold the proper insurance.
Most condo administrators are condo owners who choose to volunteer their time to protect their investment and share in the responsibility of managing the entire condominium development.
In Alberta, the condo administrator is typically appointed by the Court. The condo corporation or an individual who has a registered interest in the building will apply, and the administrator will be appointed.
Balancing the budget
Condominiums are a business. Just like any other business, budgets are required to ensure it operates smoothly. A key component of your responsibilities is to create and manage that budget.
Each fiscal year, the operating budget must account for the projected expenses for the development. This budget is used to determine the fees each unit owner must pay in any given year. Under Alberta’s Condominium Property Act, a budget forecast must be created each year. This is based on one year of full occupancy of the co-ownership unit. The budget will include debts and claims, revenues and expenses for the building, as well as common expenses. It will also include projected property taxes and forecasted contributions to the contingency fund.
To assist in building a concise and realistic budget, you’ll want to keep prior years’ income and expenses, plus a clear record of all completed work orders. Keeping a record of repairs done to the buildings and individual units allows you to forecast and budget accordingly.
It’s important to make sure you are collecting enough in fees to cover emergencies. Having a sizable contingency, or reserve fund, allows you to deal with urgent and unexpected repairs. It is the condominium corporation’s responsibility to complete a reserve fund study every five years, or within three years after the plan for the condominium corporation was registered.
On top of a reserve fund, a condo corporation will have an operating account. The operating account is to be used to pay for common expenses within the condominium. The amount that each unit holder contributes to the fund can vary, and the rate is determined by the condo corporation. The difference in fees can be attributed to differences in units or types of units.
NOTE: The condominium corporation must provide a report on the reserve fund and annual budget to unit owners who have requested them no less than 14 days before the annual meeting.
Representing the corporation and the unit owners
The condo administrator is the middleman between the condominium corporation and the individual unit owners. As such, you bear a unique set of responsibilities to manage both sides of the business.
The key to managing how the two sides interact is to hold annual meetings. This will help to make things run smoothly, but keep in mind that under section 29 of the Condominium Property Act, these meetings have specific requirements.
General meetings of condo owners can cover a number of subjects, but generally serve as a forum to discuss condominium management issues. These can include everything from the use and maintenance of the common spaces to the manner in which the property is being managed or work outsourced.