The changing pressure profile for Ontario condominium boards
Serving on a high-rise condominium board in Ontario has never been simple, but the pressure involved has changed. Many communities are balancing higher operating costs, increased need for growing reserve funds, more resident scrutiny, and tougher decisions about what can be deferred and what can’t. In that environment, it’s understandable that boards are becoming more price sensitive, and that management proposals can start to look like a fee comparison exercise.
The risk is that a fee-first decision can mask a much bigger choice: the service model that will run your community day-to-day. When property management is treated interchangeably, boards can unknowingly select an approach that looks efficient on paper but is fragile in practice. Over time, fragility shows up as slower follow-through, increased board workload, less financial clarity, and an erosion of resident confidence.
Market shifts that are increasing in complexity, not reducing it
The Ontario condominium market is also experiencing shifts that make consistency harder to deliver. Many buildings have a higher percentage of rental and investor-owned units than they did a decade ago. That can change priorities, increase turnover among residents, and add complexity to communication and enforcement.
At the same time, labour shortages and burnout in the property management profession are real. A model that depends on one person carrying the full burden is increasingly hard to sustain.
Why the management fee alone tells an incomplete story
Mark Hopkins, President of FirstService Residential Ontario, describes the moment plainly:
“Boards are being asked to make decisions under real financial pressure. The temptation is to focus on the management fee, but what matters most is whether the operating model behind that fee can deliver consistently when the building gets busy, when issues stack up, or when staffing changes happen.”
If you are a prospective director, that perspective matters because the board’s responsibility is not only to keep costs controlled. It is also to protect the asset, meet legal and financial obligations, and maintain a living experience that residents will defend, not complain about.
A model that produces short-term savings, but long-term instability can cost more in the end through deferred maintenance, repeated vendor issues, insurance risk, and resident frustration.
Why fee-first decisions are becoming more common
So why are fee-first decisions rising? One reason is sustained economic pressure. Residents feel it, and boards feel accountable to respond.
Another is the commoditization of property management. In many cases, proposals use similar language and lists of deliverables, which can make different approaches appear equivalent. A third is that boards are often composed of volunteers with limited time and limited visibility into what is happening behind the scenes.
That last point is important. Boards can only evaluate what they can see. When service is running smoothly, it is easy to assume the underlying system is healthy. When service slips, boards may blame individuals rather than the structure that set those individuals up to struggle.
Governance risk when operating models are overlooked
John Damaren, Vice President, Community Development and Governance, sees the governance impact when boards do not dig into the operating model.
“A condominium board’s fiduciary obligations do not change just because budgets are tight. The board still needs predictable processes, clear reporting, and support for compliance. If the management model cannot consistently produce those outcomes, the board ends up doing more of the work, and risk increases.”
This is why the fee is not the only number that matters. The more useful question is: what is included in the service model and who is accountable for delivering it?
In practice, boards are buying capacity, processes, and continuity. They are buying an operating rhythm that keeps small issues from becoming big ones.
Visible service vs. Structural support: What boards should understand
A helpful way to think about it is to separate what is visible from what is structural.
Visible elements include response times, meeting support, vendor coordination, and resident communication. Structural elements include how many communities a manager supports, what specialized teams exist behind them, what standard operating procedures guide decisions, and how performance is measured and reported.
When boards choose a lower-fee model, it can be because the company is efficient and well run. It can also be because support layers are thin, roles are stretched, and services that boards assume are included are treated as add-ons or handled inconsistently. This is not about assuming the worst. It is about asking questions that reveal the operating reality.
How strong management structure reduces board and resident friction
Stephanie Cox, Vice President, Operations, suggests prospective directors focus on the board and resident impact.
“When management is structured well, boards spend less time chasing follow-ups and more time making operational and strategic decisions that set direction and shape capital planning. Residents feel the difference, too. Service is more predictable, rules are applied more consistently, and operational issues are resolved before they become patterns.”
Key questions boards should ask before making a decision
So, what specifically should you be asking when you are looking to make a management change?
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Start with pricing transparency. Ask for a clear breakdown of what is included, what is billed separately, and what triggers additional fees.
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Ask about manager capacity and coverage. How many communities does a typical manager oversee? What happens when the manager is away or when urgent issues occur at the same time across multiple properties?
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Ask about financial reporting discipline. What is the reporting calendar? What quality checks exist? How are variances explained, and how quickly are questions resolved?
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Ask about continuity. How is community knowledge documented? What does onboarding look like when staffing changes happen?
Choosing an operating system, not just a service provider
It’s important to keep one idea front and centre: a board is not simply purchasing service. It is choosing an operating system for the community. In a market where cost pressure is real and complexity is rising; the best protection is a model that does not rely on a single point of failure.