An all-too-common occurrence at owners’ meetings is the surprise residents feel when financial shortfalls for major capital repair projects are up for discussion.
Some would argue that owners are apathetic and should pay close attention to notices or participate in every owners’ meeting to stay up-to-date. Others might say condo corporations should focus more on when and how they are communicating so that owners have a better opportunity to understand what is happening in their community.
What is the best way to find middle ground so owners don’t feel ambushed when difficult news is delivered?
Back to basics
Communication is critical in a condo community. Notices and newsletters inform owners about disruption related to construction, unit access, fire alarms, and more. But are boards effectively communicating all the planning work that goes on behind the scenes? The planning process can take years, particularly for major capital repair projects, but owners are often unaware of what is really going on. They may see in the reserve fund study what projects are expected and they receive notice when the work is scheduled, but what about all the stuff in between?
Engaging with owners regularly about what is being planned extends beyond the day-to-day operations. It’s also about proactive leadership, consistency, and providing opportunities to ask questions along the way.
Use multiple communication channels
Using digital communication channels is an essential practice for keeping owners up to date, while being aware that complete reliance on digital tools is a fools practice. Since many individuals shy away from technology, know your audience and connect in a way that works for everyone. In most communities that means using multiple communication channels to deliver the same message. Being considerate of how people consume information will offer maximum reach and minimize surprises.
Get the board talking
Being a board member involves long hours and difficult decisions—all while trying to be part of the community. As such, some boards rely on their managers to deliver every message, but eventually, the elected leaders will need to speak directly to their neighbours.
This often happens at the annual general meeting where the president will deliver a report. While a good start, there may be owners who cannot attend or new community members moving in throughout the year. Think about adapting the president’s report into other forms of more regular communication.
Don’t wait
Planning a capital repair project has many moving parts. Owners might strictly focus on how project execution will affect their lives, information which may not be known until the board has signed with a contractor. As well, the financial realities can change as planning progresses.
Many boards want to wait until they know everything before engaging with owners. If this is the case, construction will have already started and owners will know nothing.
Communication must begin as early in the planning process as possible, which means being upfront about what is known and committing to keeping everyone informed throughout the process.
People do not like to be surprised. Not everyone pays as much attention as they should. But using reasonable efforts for transparency will minimize finger pointing when challenges arise.
Involve Owners in the Solutions
After keeping people informed, if challenges arise, boards have an opportunity to engage ownership in the solutions. Don’t shy away from owner information meetings, even if the subject matter is difficult or unpopular.
Delaying the conversation only provides an opportunity for people to get more worked up. Take a deep breath, face the conversation head on, and thoughtfully consider any feedback that is received, even if that feedback is negative.
This can present its own challenges as sometimes owners can be quite unreasonable; they may want the board to take no action at all, even if there is a statutory obligation that can’t be avoided. For this reason, when there are difficult discussions to be had, preparedness is key.
Make materials available
As a general rule, boards shouldn’t make blind decisions. They rely on their experts to guide them in the decision-making process. When complex resolutions need to be made, this usually involves written reporting to the board.
A common question at meetings is, “Can I get a copy of the engineer’s report?”, often followed by the manager giving a complicated explanation of how records requests work. These details are not secret, yet there are sometimes reasons to keep things confidential. Instead of waiting for someone to complain about needing more information, make it available from the beginning.
There is no sense guarding information that owners have the right to access anyway, and providing it helps ensure a productive owners meeting.
Ultimately, every decision the board makes will impact condo owners. Capital repair projects can be especially disruptive and have a major financial impact. Conversations about these issues can be tricky but are absolutely necessary. Timely, relevant, and transparent communication is key for success, and can help to reduce conflict when the unexpected happens. Don’t ambush owners with difficult news, and they will be less likely to ambush you in return.
Lyndsey McNally, OLCM, LCCI, CCI (Hon’s), is a Director at Condominium Lending Group and President of the Toronto & Area Chapter of the Canadian Condominium Institute.
