What Ontario Condo Boards Must Ask Before Signing with a New Management Company
(From a Condominium Management Expert)
Practical Guidance for Smarter Governance in London & Sarnia, Ontario
Choosing a new condo management company in Ontario is one of the most consequential decisions a condo board makes. The wrong choice leads to years of poor service, surprise costs, and frustrated unit owners. Boards in London and Sarnia that have made strong choices share one habit: they asked the right questions before signing anything.
This is not just a list of interview topics. These questions are board due diligence. Directors have a legal obligation to act in the best interests of the corporation, and that includes carefully vetting any company you are about to hand your operations to. Here is what to ask, and why each answer matters.
Ask About Licensing Before You Do Anything Else
In Ontario, every condominium management company and every individual property manager must hold a valid licence issued by the CMRAO (Condominium Management Regulatory Authority of Ontario). A General Licence is required for managers handling the full scope of management responsibilities. A Transitional Licence covers managers who are still completing their licensing requirements.
Before you interview any firm, go to the CMRAO public registry and confirm the company's licence status. Then ask which individual manager would be assigned to your building and verify their licence separately. Boards in London Ontario sometimes receive proposals from companies that have licensed principals but unlicensed staff doing the day-to-day work. That is a compliance risk your corporation should not take on.
The question to ask: Are the company and the specific manager assigned to our building currently licensed by the CMRAO? Can you provide the licence number for both?
Understand the Full Cost Before Comparing Proposals
Management proposals often lead with a monthly base fee that looks competitive on paper. The real cost emerges only when you read the full fee schedule. Ask every candidate for a complete list of what is included in the base fee and what triggers an additional charge.
Common extras to ask about include after-hours call fees, project management markups on contractor invoices, charges for preparing status certificates, and administrative fees for owner correspondence. Some companies in Sarnia Ontario and London Ontario charge a percentage markup on all vendor invoices, which can quietly add thousands to your annual budget.
The question to ask: What does our total annual cost look like, including the base fee and every additional charge your fee schedule includes? Please provide a written estimate based on our building's profile.
Financial Reporting Questions Every Ontario Board Should Ask
A management company controls your corporation's money. Before you hand that over, you need to understand exactly what financial reporting you will receive, how often, and in what format. Vague answers to these questions are a red flag.
Specific questions worth asking:
• How often are full financial statements produced, and on what day of the month?
• What accounting software does the company use, and can the board access the system directly?
• Who holds signing authority over the corporation's operating and reserve fund accounts?
• How quickly will you flag a budget variance to the board?
Boards that received unclear or defensive answers to these questions during the hiring process tend to encounter the same opacity once the contract starts. Clear, confident financial reporting answers indicate a firm with nothing to hide.
Communication and Condo Management Response Times
One of the most common complaints condo boards in London, Ontario and Sarnia, Ontario raise about their management company is slow or inconsistent communication. Ask every candidate how they handle it before you have a problem, not after.
Questions to ask about communication:
• How many buildings does the assigned property manager personally oversee right now?
• What is your standard response time for a board email or phone call?
• What happens if our assigned manager leaves the company mid-contract?
• Is there an online portal where owners can submit requests and view documents?
A manager carrying more than 10 to 12 buildings is unlikely to give your building the attention it needs. If a candidate cannot give you a clear number, that is worth noting.
Ask for References and Ask the Right Questions
Any management company can provide a reference. What matters is whether you ask the right questions when you call. Ask their current clients not whether they are satisfied, but what one thing they wish they had known before signing. Ask how the company handles maintenance contractors and whether vendor costs have stayed predictable.
When possible, ask for a reference from a building of similar size and age to yours. A company that manages high-rise towers in Toronto may not be the right fit for a 40-unit low-rise building in Sarnia Ontario. Ask specifically whether they have managed buildings in the London Ontario region or in southwestern Ontario, and for how long.
What the Management Agreement Itself Should Say
Once you have selected a company, review the management agreement carefully before signing. The contract should clearly define which services are included in the base fee, what reporting is required and on what schedule, and how either party can terminate the agreement.
Under Ontario's Condominium Act, Section 112, either party may terminate a management agreement with a minimum of 60 days written notice. Your contract should reflect this and should not include provisions that penalize the corporation for exercising its legal right to terminate.
Ask your condo lawyer to review the agreement before you sign. One review protects your corporation from terms that look standard but create financial or operational obligations you did not intend to accept.
Frequently Asked Questions
What questions should you ask a condo management company in Ontario before signing a contract?
Start with licence verification through the CMRAO registry for both the company and the assigned manager. Then ask for a full fee schedule with all additional charges, a sample financial reporting package, the manager's current portfolio size, and at least two references from similar buildings. Ask each question in writing and compare the responses side by side before making a decision.
How do you verify that a condo management company is licensed in Ontario?
The CMRAO (Condominium Management Regulatory Authority of Ontario) maintains a searchable public registry at cmrao.ca. Search for the company name and then verify the individual manager's licence separately. Licences are either General (full authority) or Transitional (supervised or limited scope). If the company or its assigned manager does not appear in the registry, they are not legally permitted to provide condo management services in Ontario.
How many properties should a condo property manager handle in Ontario?
There is no regulatory limit set by the CMRAO, but boards in London Ontario and Sarnia Ontario consistently report that managers carrying more than 10 to 12 buildings struggle to respond promptly and attend meetings reliably. Ask the candidate directly how many buildings the assigned manager currently oversees, and ask how that number compares to their company's policy or recommendation.