Changes To Alberta Condominium Property Act - Free Information Session

The CCI-North Alberta Chapter will be presenting an information session for Condominium Boards, Condominium Unit Owners and Property Managers to understand what the changes will be to the Condominium Property Act. 

Hugh Willis and Victoria Archer (Condominium Lawyers) will be the speakers for this session.

This is a Free Admission Event! 

BUT!

You Must Pre-Register! 

Click here to register for this free event

 

AVAILABLE DATES

Friday, May 8, 2015 – 6:00 PM – 9:00 PM - FORT MCMURRAY 
Quality Hotel Fort McMurray
424 Gregoire Drive
Fort McMurray, AB

Saturday, May 23, 2015  - 9:30 AM – 12:30 PM - EDMONTON
Central Lions Senior Centre
11113 – 113 Street 
Edmonton, AB

Saturday, June 13, 2015 - 1:00 PM – 4:00 PM- GRANDE PRAIRIE
Pomeroy Hotel 11633 – 100th Street 
Grande Prairie, AB

Saturday, June 20, 2015 - 9:30 AM – 12:30 PM - EDMONTON
Providence Renewal Centre 
3005 – 119 Street 
Edmonton, AB

 Click here to register for this free event

 

We feel that this information session is very important to all condominium owners in Alberta. The changes to the Condominium Property Act may impact you in various ways.

If you have any questions in regards to this event, please contact The Canadian Condominium Institute - North Alberta Chapter at 780-453-9004 or via email at info@ccinorthalberta.com

Sincerely,

Rafal Dyrda,
CEO at GeniePad.com

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Wednesday, April 22 2015

How Do Condo Portals Boost The Resale Value Of Your Home?

If you happen to live in a condo, then you must know about the turnaround time for each little complaint related to repairs or problematic neighbors, or any other problem. Despite having a condo board, problems may go unaddressed for ridiculously long periods of time because let’s face it, the board has other primary things to do in life. Board-related matters come much below in their priority, and are only discussed during that monthly, bi-monthly, or semi-annual meeting. 

One can tell when a building is in a problem. News travels fast in a neighborhood and if your building has problems pertaining to seepage or gas lines, then chances are everyone in the neighborhood will know about it. The principal of "tell 10 to tell 10" applies here as far as the real estate news is concerned. If you are thinking of selling your condo or looking to move your lease to someone else, then know that these annoying problems can become major hurdles in you trying to do so. 

Prospective buyers do ample research when they are looking for homes, simply because it is a gigantic investment. Even minor problems can tick of an interested party because the realtor will have better options for them. He would rather make a sale elsewhere and earn his commission than lose a client over a petty condo leak.

What does one do then? One goes to the root of the problem and fixes it.

How about doing away with the paperwork attached to the condo feedback between the residents and the board? Who knows who reads those paper notices near the elevator when going up and down? Does one still want to keep physical files of all bills in this age of digitalization? Whatever happened to saving trees and all?

What I am veering towards is a need for an electronic portal for the condo. A portal which will have all the requirements of condo management presented at the click of a mouse. One can file complaints, read complaints, archive them, time them and also check for progress. Any and all announcements should be sent with a notification so that they are taken seriously. No more ignoring papers on the wall or a lousy sheet coming in the mail. 

One can keep tabs of the bills coming in and whether they have been paid or not. All your condo needs fulfilled in one go. How can a prospective buyer not see the beauty in this? They not only get a great house but a convenient system to manage it. It also instills harmony among people because their issues are addressed on a timely basis and there is no more bickering about the laziness of the condo board or how inefficient they are. 

You can easily get such a portal made online through GeniePad as per your requirement. You do not need any advanced programming classes to run it. It is simple to use and highly convenient. So what are you waiting for? Go make some points with the board by advising them to have one of these!

 
Monday, February 23 2015

Condominium Safety and Security

Safety is one of the key features of a condominium living. One of the reasons why so many families opt for a condo is that they feel secure in the idea of living where there are many others to help them in time of need. Therefore, if a condo is not safe enough, it technically becomes useless for these residents. The one thing that you will need to keep in mind though is that security measures used for a condo are more easily broken down as compared to a bungalow living. This is why you need to be extra cautios when you search for the perfect condominium for your family. 

Here is where a communication portal comes into the picture. When your condo has a proper communicating portal, everyone will be informed on happening in the neighborhood. If there is any danger or if a robbery took place on the next street, the portal can be updated with this information and everyone living in the condominium would automatically become more security conscious. 

Likewise, if there is construction work going around your condo building, the management can inform all the residents and ask them to keep a lookout at all times. This would reduce chances of a break in. What’s more, with the aid of the portal residents can not only get information from the condo association, they can also remain in touch with each other. If any residents have a problem, they can communicate this through the portal, and other residents can rise up to help them in their time of need. This would lead to greater unity and understanding between all the occupants of the condominium building. 

The management can also come up with different ideas on how the residents can ensure their family and their own safety. They can inform about certain lock systems, security systems and other safety features available at the nearest market, or give the residents an idea of the kind of security system that would work best. The management could also suggest a kind of alarm system that secures the whole building, where all the residents would benefit. Communicating through the portal would not only be easy, it would also be prompt and effective. Everyone would be able to see any updates, news or information that the management adds to the portal. 

 
Tuesday, February 17 2015

Reserve Fund Studies - What Are They?

When I tell people what I do for a living, I explain first that I love my job.  It incorporates so many different aspects of being outside, doing tons of math, talking to people and educating them.  What do I do?  I prepare building component and financial audits for condominium corporations.  In short, I do Reserve Fund Studies.  I get questions that are both simple and complex and will attempt to address some of the main ones. 

What is a Reserve Fund Study?

A Reserve Fund Study is a document that assesses all of the common property and the current funding of a condominium corporation.  The study should make recommendations for future funding.  When assessing common property, quantities and condition should be determined.  

Reserve Fund Studies are required by section 38 of the Alberta Condominium Property Act (the Act), which states:

A corporation shall, subject to the regulations, establish and maintain a capital replacement reserve fund to be used to provide sufficient funds that can reasonably be expected to provide for major repairs and replacement of

a)  any real and personal property owned by the Corporation, and

b)  the common property

where the repair or replacement is of a nature that does not normally occur annually.

In layman’s terms the Act requires that an account be created to provide funding for the replacement or major repairs to all common property for which the corporation is responsible.  In order to create this account, money must be deposited on a regular basis to ensure that funds are available when required.  This protects the investment of every owner in his or her property.  When replacement of common property components is deferred for financial reasons, the individual units will suffer devaluation of the property.

Why do we need a Reserve Fund and a Study?

Some reasons for including section 38 in the Act are:

  • The conversion of some older rental projects into condominiums completed only aesthetic repairs.  Units were sold with insufficient reserve funds and a significant amount of deferred maintenance.  
  • Annual contributions were set extremely low by developers to increase buyer appeal.
  • Annual contributions were set too low by directors pressured by owners to keep them low.  The directors also failed to think about the corporation as a whole. 

How is a Reserve Fund Study done? 

When a condominium corporation contracts to have a Reserve Fund Study done, the steps below should be followed:  

  • All common property components should be measured, counted and their condition assessed.  In order to determine what is common property, condominium plans, bylaws and as-built-drawings are reviewed.  Discussion with the Property Manager, Board Members, on-site personnel and any existing contractors is advisable.
  • Replacement costs of each common property component are determined, and should include the cost of full replacement.  Phasing repair or replacement of components over time for financial reasons is not recommended due to the difficulties this will cause future Boards and owners.
  • The current funding is reviewed and compared to expected expenses.
  • Required funding scenarios are provided.
  • The study provider must submit a written reserve fund report to the Board for review.  

Most providers will not only attend a meeting to discuss the report with the Board and to answer any questions, but also will attend the Annual General Meeting (AGM) to discuss the report with the unit owners as well. 

What information is included?

Information that should always be in a Reserve Fund Study includes, but is not limited to, the following: 

  • The qualifications of the person(s) and/or corporation who completed the study.
  • Recommendations for reserve fund contributions.
  • A common property inventory and condition assessment for all components that may require replacement or major repair over the next 25 years.

Additional information that the Study may include is:

  • Spreadsheets showing funding scenarios.
  • Pictures showing the condition of common property.
  • Recommendations for investing.

Who should do this Study? 

In order to get a useful Reserve Fund Study, it is important for the Board to understand what they want out of it.  Boards should use the study as a planning guide.  This means choosing the right provider.  Studies vary from provider to provider.  Providers have different funding philosophies as well as financial planning ideas.  Questions the Board should ask providers when getting a proposal are:

  • Do you incorporate construction inflation? Some providers do not use construction inflation.  The result is that the price of the roof stays the same now as when it requires replacement in 10 years.
  • Do you incorporate a contingency and a safety margin? Contingencies allow for small errors in expected costs.  Safety margin amounts are useful as a buffer for the replacement of components that are not visible for inspection such as underground services.
  • What are the qualifications of the main person doing the study? When hiring a corporation – who is participating in the study?
  • What level of customization are you willing to provide?
  • Will they phase components at the Board’s request?
  • How many funding options will be provided?
  • What funding philosophy will be used?
  • How long will the study take once awarded?
  • Will a sample study be provided for the Board to review to ensure that the document is usable for their purposes?
  • What will the study cost?

The answers to these questions will assist a Board in determining which provider will best fit their needs.  Cost should not always be the deciding factor when choosing a provider.   

The Alberta Condominium Property Act states that a qualified person must do the study.  A qualified person is someone who has knowledge and experience in assessing depreciating property, the operation and maintenance of the property, and cost associated with replacement of the common property.  The Act does not say that you must have an engineering company perform the study.  Property Managers, accountants, real estate agents, and adjusters bring their own unique experience to the development of a Reserve Fund Study. 

When should a Study be done? 

Generally, a Reserve Fund Study should be completed every 5 years.  However, since the Board should use the study as a planning tool for operating the corporation, it can be done more often than every 5 years. 

New corporations must complete a study within 2 years of its initial development.  If the corporation is a conversion of previous rental units, then the study must be completed prior to any units being sold. 

There are no condo police to fine a Board when they do not complete a study every 5 years.  However, neglecting to have a study updated could cause the following: 

  • Insufficient funding of the reserve fund account.
  • Unexpected costs associated with failure of components, which usually results in special assessments.
  • Legal implications for Board Members.
  • Lower value of properties due to components not being replaced in a timely manner.

A Reserve Fund Study is a tool that the Board uses to help manage a corporation and its assets.  Therefore, it is important to find a provider who will produce a document that the Board can use.  

 

This article has been written by Sharon Bigelow.
Sharon is a Bigelow is a Reserve Fund Study Consultant in Edmonton, AB, Canada. You may contact Sharon at Phone: 780-965-0965 

Wednesday, January 14 2015

Common Problems Condo Boards Face and How They Can Be Resolved

You may believe that volunteering in the board of directors of a condominium complex might be a great experience for you, but the truth is that there are several difficulties that condo boards face from time to time that make the job quite challenging. Disagreements, delinquencies, short-term problems, and long-term concerns are all quite common experiences in condo board management.

If you are thinking about joining a condo board, then knowing the most common challenges faced by condominium boards will help you out considerably. Some of these are detailed below:

Problems in Management

In a few cases, condominium boards fail to understand the methodologies utilized by a property manager. This is most likely to be due to the property management associations’ habit of using the best practices in their industry, which don’t always go along with the preferred ideas of a condo board.

These issues are quite common and more often than not, a condo board is likely to find its property manager’s approach quite irrational. The best way to tackle such problems is to make sure there is sufficient communication between the property manager and the condo board. This can help rectify any underlying problems or confusions on both ends. Furthermore, the board can even invite the property manager for a formal meeting to discuss the matter in a more precise manner.

Reserve Funding

Condo boards need to monitor their reserve fund levels quite closely. Furthermore, they should keep track of their savings and whether or not they have sufficient funds to take care of future maintenance requirements. If a condo board, or condo corporation to be exact, has large reserves with a decent number of assets that require managing, opting for a professional reserve fund study can be a good choice. In certain provinces and states, a reserve fund study is required by law every several years.

Shortfalls in Budget

The biggest challenge any condo board faces is a budget shortfall. If your condo board is facing the same problem, the main solution is cutting back on your unnecessary expenses. Raising condo fees or charging special assessments can also seem a suitable idea, the best way to deal with a budget shortfall is to postpone minor repairs and improvements until the budget has recovered.

Lack of Communication with the Condo Owners

Communication is perhaps the main reason why a condo board exists. If there is a lack of it between the board and the owners, all sorts of problems can arise. The sole reason as to why a condo board is created is to make sure none of the owners ever face any problems and all of their issues are effectively dealt with. Until and unless there is sufficient communication between the two parties, there possibly can’t be any progress on either end.

Serving on the board of directors of your condominium complex can be quite challenging. Nonetheless, it is likely to be an experience from which you can learn a lot. As long as you keep the above mentioned solutions in mind, you are likely to have an easier time volunteering for your condo board.

 
Monday, January 12 2015

Securing Condo Portals - Connect Securely to Condo Communities

Condominium Portal Security

Users often ignore the importance of a secure connection while reviewing a condominium portal. There is not much you can do about public forums, but with customized condo portals you are at liberty to choose according to your preferences. There is no denying the fact that features like chatting, exchanging files, and browsing normal internet is not encrypted. Within a condominium association, information you provide to your owners and residents must not compromise security over other features.

It means that the personal information exchanged by the users, their IPs and their identifications will be protected from external intrusions. SSL (Secure Socket Layer) is a medium layer which is highly encrypted and protects data to be accessed by any unidentified source. This is something all GeniePad accounts are protected with. The little lock in your address bar just as if you were logging into your bank account.

As customized portals allow users to communicate with each other via various methods it is very important to select a portal that allows secure access through SSL.

Here are some of the advantages of using a SSL certified portal.

1. Authentication

With so many proxy servers operating actively, it is very important to make sure that you are connected to the right server. SSL does not only allow users to enjoy encrypted data transfer but also ensures authentic connection. It means that, users don't need to worry about the server connection while communicating through the portal. Although it is true that a customized condo portal is reserved only for the member of condo community, portal IPs can be hacked. Therefore to avoid so it is very important to choose a server that allows connection through SSL.

2. Personalization

SSL is a data transportation layer designed especially for private communication. It distinguishes one personal network from the other and makes sure that a private network enjoys complete privacy. It is important for a community portal to ensure residents and management complete privacy. Condo portals can also serve the purpose of databases where the personal information of clients is stored. Therefore make sure that no other unauthenticated user can access the portal. Although once purchased you can fully administer the portal on your own; it is very important to choose a condo portal that includes SSL.

3. No Cross Connection

As a vendor or the condo portal company manages thousands of portals, it is very important to prevent cross connection between two portals. One way to avoid so is SSL encryption. SSL gives unique identity to every network and a cross connection is instantly detected because of the mismatched sender and receiver identities.

Condo portals allow communities to interact with each other and with the association board via an easy-to-access platform. All you need to have is a reliable internet connection and a computer. The technology has matured over years and is now considered as an effective condo management tool.   

Wednesday, January 07 2015