Sarah lives in a 12-unit condominium in Toronto, Ontario. Each year, the management company charges $6,200 to oversee a $48,000 budget—that's over 12% in management fees alone. A ratio that's become all too common in small condos.
Faced with this situation, a growing number of condo corporations are choosing self-management. Across Canada, thousands of condos operate successfully with volunteer boards, saving their unit owners significant money each year.
But going self-managed isn't something you improvise. This guide explains the benefits, legal obligations, and tools you need to make the transition successfully.
What exactly is a self-managed condo?
A self-managed condo (or "DIY condo") is a condominium corporation where the board of directors handles all management duties without hiring a professional management company.
Self-management works best for corporations that meet certain criteria:
- 50 units or fewer (ideal for under 25 units)
- Relatively simple common elements and amenities
- Active, engaged unit owners willing to serve
- Stable financial situation with adequate reserves
According to industry estimates, approximately 25-30% of small condos in Canada operate without professional management. This approach is especially popular in smaller corporations where professional fees would consume a disproportionate share of the budget.
Key information
Provincial laws vary significantly. In Ontario, the Condominium Act governs condos, while British Columbia has the Strata Property Act, and Quebec has the Civil Code. Most provinces require annual meetings, financial disclosures, and proper reserve funding regardless of management structure.
Three concrete advantages of self-management
1. Immediate cost savings on condo fees
Professional management companies typically charge $12-25 per unit per month, plus additional fees for services. For a 20-unit corporation, that's $2,880 to $6,000 annually—money that goes directly back to unit owners in a self-managed condo.
With self-management: zero management fees. The savings are direct and substantial.
2. Faster response times
Broken sprinkler in the common elements? A board member lives on-site. They know the local contractors. Issues can be addressed in hours, not days or weeks waiting for a management company response.
3. Better community relationships
When neighbours manage the corporation together, communication becomes more direct. Decisions are made by people who live there, not distant professionals. This often leads to greater trust and community engagement.
Good to know
Board members serve as volunteers but can be reimbursed for actual expenses: mileage, postage, office supplies. These reimbursements should be authorized by board vote and documented properly.
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Board responsibilities in a self-managed condo
A self-managed board assumes all the duties a management company would handle. The legal obligations are identical—only the execution differs. Board members have fiduciary duties governed by provincial law and your governing documents (declaration, bylaws).
Financial management
- Maintain a separate bank account in the corporation's name
- Prepare the annual operating budget
- Collect common expenses (fees) from unit owners
- Pay vendor invoices and maintain records
- Manage reserve fund contributions
- Prepare financial statements for unit owner review
Meetings and governance
- Hold an annual general meeting of owners (required by provincial law)
- Prepare meeting agendas and required notices
- Record meeting minutes
- Conduct board elections according to bylaws
- Notify unit owners of decisions and rule changes
Administrative duties
- Enforce declaration and rules consistently
- Maintain insurance policies (liability, property, D&O)
- Manage contracts with vendors (landscaping, maintenance)
- Keep corporation records for required retention periods
- File annual returns with the province if required
Important
Board members can face personal liability for decisions made in bad faith. Directors and Officers (D&O) insurance is essential for protecting volunteer board members. Annual cost: typically $600-2,000 CAD depending on corporation size.
Simplify your management
Free tools for self-managed condo boards
How to transition to self-management: 5 steps
Step 1: Assess your corporation's readiness
Evaluate whether you have willing volunteers with the time and skills needed. Survey unit owners about their comfort level with self-management.
Step 2: Review your management contract
Check termination clauses and notice requirements. Most contracts require 30-90 days written notice. Plan the transition timeline accordingly.
Step 3: Vote at an annual or special meeting
The decision to terminate professional management typically requires a board vote, but major governance changes may need unit owner approval per your bylaws.
Step 4: Secure all corporation records
The outgoing management company must transfer all documents: financial records, contracts, insurance policies, unit owner files, modification requests, and violation records.
Step 5: Set up financial systems
Open a new bank account if needed, set up bookkeeping systems, and establish procedures for collecting fees and paying bills. Consider accounting software designed for condos.
Three common pitfalls to avoid
Pitfall #1: Underestimating the time commitment
Self-management requires consistent effort. Expect 5-10 hours per month for a small corporation, more during budget season or when issues arise.
Solution: Divide responsibilities among multiple board members. Create clear role definitions and use management tools to streamline tasks.
Pitfall #2: Neglecting reserve fund planning
Many self-managed condos fail to conduct reserve fund studies or adequately fund future repairs. This leads to special assessments that frustrate unit owners.
Solution: Commission a professional reserve fund study every 3-5 years. Aim for 70%+ funding level to avoid surprise costs.
Pitfall #3: Inconsistent rule enforcement
Without professional distance, boards may enforce rules selectively—being lenient with friends and strict with others. This creates legal liability.
Solution: Document all violations and apply rules consistently. Use standardized notices and follow your published enforcement procedures.
Tools for effective self-management
Three categories of tools are available to help self-managed boards. The right choice depends on your corporation's size and complexity.
Free spreadsheets
Excel, Google Sheets, or templates found online. Advantage: free. Disadvantage: time-consuming to set up, prone to errors, no collaboration features, manual backups needed.
Professional condo software
Full-featured platforms designed for management companies handling hundreds of corporations. Cost: $250-600+ CAD per month. Often overkill for small self-managed condos.
Tools built for small corporations
A new generation of software designed specifically for self-managed condos. Simple interfaces, essential features, affordable pricing.
Fees calculator
Enter your budget and unit count. Get the breakdown per unit, monthly or quarterly. CSV export included.
Reserve fund planner
Project your major repairs over 10-20 years. Visualize fund balance year by year.
Frequently asked questions
Do board members need special training?
No formal certification is required, but education is strongly recommended. Organizations like the Canadian Condominium Institute (CCI) offer courses for board members. Most provinces also have free resources for condo boards.
How much time does self-management require?
For a small corporation without major projects, expect 5-10 hours per month total across all board members. This includes financial tasks, responding to unit owner inquiries, and coordinating with vendors. Time increases during annual meeting preparation or when handling disputes.
Can we switch back to professional management?
Yes, at any time. The board can vote to hire a management company. The transition typically takes 30-60 days. All records should be organized and ready to transfer.
Summary
Self-management offers a practical solution for small condos looking to reduce costs while maintaining quality governance. The savings are real: $2,500-7,000+ CAD annually for a typical small corporation.
But this choice requires commitment from volunteer board members. You need to understand your legal obligations, maintain proper records, and use effective tools.
With organization and the right resources, self-management is achievable for any motivated board willing to invest the time.
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