Your Condo Management Contract Is Up for Renewal: What London Boards Should Review

What should a condo board do when its management contract is up for renewal?

Treat the renewal as a decision, not a formality. Find the end date of the current term and the deadline for giving notice, then put a review on the board's agenda well before that deadline so you still have every option open when you decide.

Many management agreements renew automatically unless one side gives notice by a set date, so missing that date can mean another full term by default. Pull your signed agreement and read the term, renewal and termination clauses yourself rather than relying on a summary. The corporation should already hold a copy: section 55 (1) of the Condominium Act, 1998 requires it to keep a copy of all agreements entered into by or on behalf of the corporation.

This is not legal advice, but generally speaking under Ontario law, section 27 (1) of the Condominium Act, 1998 says the board manages the affairs of the corporation. Whether to renew the manager is a board decision, and it deserves the same care as any other contract the board signs.

What should the board review about its manager's performance before renewing?

Review what the corporation actually received over the term, measured against what the contract promised. A renewal is the best time to ask whether your current manager is doing the job well, not just doing it.

Useful questions for the board to answer together:

• Did monthly financial statements arrive on time, and could every director read them?

• Were owner and board emails and calls answered promptly, or did directors chase for updates?

• Were maintenance issues handled before they became repairs, or only after complaints?

• Was the last budget realistic, and did the reserve fund plan follow the latest reserve fund study?

• Were meetings, notices and records handled correctly and on time?

• Did the same manager stay on your building, or did contacts keep changing?

Write the answers down. A short, honest scorecard gives the board something concrete to discuss with the manager, and a fair record if it decides to look elsewhere. For a simple way to score each area, read our guide: How to Benchmark Your Condo Management Company: What London and Sarnia Ontario Boards Should Measure.

If the financial statements were the hardest part to judge, you can request a free financial review on us.

What does Ontario law require in a condo management contract?

A condo management contract in Ontario must be in writing, and the company and manager must be licensed. Renewal is a good moment to confirm both are still true.

This is not legal advice, but generally speaking under Ontario law, section 48 (1) of the Condominium Management Services Act, 2015 requires every licensee to have a written contract governing its services and to provide services only in accordance with it. Section 17.0.1 of the Condominium Act, 1998 says a corporation cannot enter into an agreement for management services with a provider or manager who is not licensed. Before renewing, search the company and your assigned manager on the Condominium Management Regulatory Authority of Ontario (CMRAO) public registry.

Conflicts of interest matter too. Section 52 of the Condominium Management Services Act, 2015 requires a licensee to disclose in writing any interest it has in a contract or transaction involving the corporation, and section 32 of O. Reg. 123/17 applies that rule to contracts that are amended, extended or renewed. If your manager has a connection to a contractor or supplier the building uses, the board should have that disclosure in writing.

Which contract terms should the board renegotiate at renewal?

Renegotiate anything that was vague, one-sided or missing in the current agreement. The board has the most leverage before it signs again, not after.

Terms worth a close look:

• Scope of services: exactly what is included, and what triggers extra charges.

• Reporting: what the board receives each month, and by when.

• Response standards: how quickly calls and emails from the board and owners are answered.

• Term and renewal: whether the contract renews automatically, and for how long.

• Termination: the notice period and whether the board can end the agreement without cause.

• Records on exit: how and when the corporation's records will be handed over.

On records, the law already sets a floor. This is not legal advice, but generally speaking under Ontario law, section 54 (1) of the Condominium Management Services Act, 2015 requires a licensee to transfer all of the corporation's documents and records when the contract ends, and section 35 (1) of O. Reg. 123/17 sets that deadline at no later than 15 days after termination. Your contract should not water that down. For clauses that tend to favour the manager, see Red Flags in a Condo Management Contract: What Ontario Boards Should Know.

Should the board renew, renegotiate, or compare other management companies?

Renew if the manager met the standard and the terms are fair. Renegotiate if the service was good but the contract was not. Compare other companies if the scorecard showed repeated gaps that conversations have not fixed.

This is not legal advice, but generally speaking under Ontario law, section 37 (1) of the Condominium Act, 1998 requires directors to act honestly and in good faith and with the care, diligence and skill of a reasonably prudent person. Asking two or three other licensed companies for proposals before renewing is a normal, prudent step, and it gives the board a real benchmark instead of a guess.

At Sapphire, the boards we speak with in London Ontario and Sarnia Ontario rarely want a dramatic change. They want a manager who answers, and the same service year in and year out. If you do move, our homepage notes that most contracts have a 60-day notice and most transitions are completed within that period, with a dedicated onboarding manager as the board's single point of contact. If ending the current agreement is where your board lands, our guide How to Terminate a Condo Management Contract in Ontario walks through the notice and handover.

Frequently Asked Questions

Q: Does a condo management contract renew automatically in Ontario?

A: It depends on the contract. The Condominium Act, 1998 does not set a standard renewal rule for management agreements, so the term, renewal and notice clauses in your signed agreement decide it. Many agreements renew unless one side gives notice by a set date, so boards in London Ontario should diarize that date early.

Q: Do owners have to vote to renew our condo management contract?

A: Generally no. This is not legal advice, but generally speaking under Ontario law, section 27 (1) of the Condominium Act, 1998 gives the board the job of managing the corporation's affairs, which normally includes renewing or replacing the manager. Check your by-laws and the agreement for any extra approval steps.

Q: Can our board get proposals from other condo management companies before renewing?

A: Yes. Asking other licensed companies for proposals before renewal is a routine part of a board's due diligence and does not commit you to anything. It shows the board what other managers would provide, so it can judge its current contract fairly before signing again.

Q: Does our manager have to disclose conflicts of interest when the contract is renewed?

A: Yes, where the interest is material. This is not legal advice, but generally speaking under Ontario law, section 52 of the Condominium Management Services Act, 2015 and section 32 of O. Reg. 123/17 require written disclosure of a licensee's interest in a contract, including one that is renewed or extended.

Related Reading

→ Red Flags in a Condo Management Contract: What Ontario Boards Should Know

→ How to Benchmark Your Condo Management Company: What London and Sarnia Ontario Boards Should Measure

→ How to Terminate a Condo Management Contract in Ontario