Pablo Picasso once said: “Learn the rules like a pro, so you can break them like an artist.” While this philosophy served Picasso well in his creative endeavours, a property manager would never want residents of his building to apply this philosophy to everyday life.
Condominium rules, as defined in Section 58 of the Condominium Act, govern the use of common elements and units and can be made, amended or repealed for one of two purposes: “to promote the safety, security or welfare of the owners and of the assets and property of the corporation; or to prevent unreasonable interference with the use and enjoyment of the common elements, the units or the assets of the corporation.”
Put simply, condominium rules outline the expectations of a given community, guiding both residents’ conduct while living there as well as their understanding of fellow residents’ conduct. Prospective residents also refer to condominium rules to determine what is and isn’t allowed in a particular community before buying in.
For these reasons, it’s important that a condominium’s rules are in line with the community’s expectations, and that they are kept current. As a best practice, property managers should review the rules of a condominium with its board annually, and also make a copy available to all residents (especially newcomers).
Upon review of a condominium’s rules, many boards will say, for example, “I did not even know that owners required written permission from the board for plants on balconies. Why would we have that as a rule?” or “Do we not have a rule regarding use of visitor parking?” After review, update a condominium’s rules to remove outdated provisions and add any new provisions deemed necessary. Implementing new rules is a fairly straightforward process (outlined in Section 58 of the Condominium Act), but before proceeding, consider the following two questions:
1. Is the rule contradictory to any act, code, or legislation that would undermine it?
It’s important to understand the hierarchy of the condo world. The Criminal Code and Human Rights Act override everything. Next comes the Condominium Act. And after this is the corporation’s declaration, then its bylaws, then its rules. Last are basic condominium policies, such as a gym’s hours of operation.
Because the rules are so low in the hierarchy, they often become difficult to enforce. For a rule to be enforceable, it must not conflict with any of its superiors. For example, a rule that allowed people to steal from each other every other Friday could not be enforced, as this would contradict the Criminal Code. Similarly, a rule that allows for the condominium to increase the board of directors from three to five members could not be passed, as this would contradict the bylaws. (To change the size of the board of directors, the relevant bylaw would need to be amended, which requires the support of owners representing a majority of a building’s units.)
However, a rule that prohibited satellite dishes from being installed at the complex could easily be enforced, as would a rule that says, “No swimming after 10 p.m. Monday to Friday,” as there is very little chance either of these subjects is addressed in any of the superior acts, codes, or legislation that apply to condominiums.
2. Is the rule reasonable?
Use some basic common sense and logic. When it comes to notifying residents of a new rule, remember that it’s their community; property managers work for them. If a property manager tries to implement a rule that is clearly unreasonable or opposed by a majority of residents, they may call him out on it. Not only will he quickly lose their trust and confidence, but he will also waste valuable time and money trying to explain the rule when residents petition for a special meeting, as is permitted under Section 58(6)(c) of the Condominium Act.
It can be helpful to first run a draft rule by a few colleagues (or even family members), and ask, “If you were living in a condominium and saw this rule, would you have any objections? If yes, what are the objections?” A property manager will be amazed at what reasonable objections he will hear. If he can address these issues prior to notifying residents of the rule, he will have a much greater chance of avoiding objections.
An example of an unreasonable rule would be: “Residents may only take their dogs for a walk between 7 a.m. and 9 a.m., and 5 p.m. and 7 p.m.” (an actual suggestion from a board). An example of a reasonable rule would be: “Dogs must be on a leash at all times while on the common elements.”
Once a property manager establishes that a condominium rule is reasonable and doesn’t conflict with superior legislation, he can present a final draft to the board for endorsement (in a duly called meeting, with quorum present). After the board approves a rule, the property manager must notify residents. The Condominium Act requires that notification include a copy of the rule as proposed, the date that the board proposes that the rule become effective, and a statement that the owners have the right to requisition a meeting under Section 46 of the Act.
After residents have been notified, and assuming the property manager has not received any petitions or major objections, a rule becomes official and effective 30 days after the initial notification. If all residents were properly notified, the rule did not contradict is superior authorities and the rule was reasonable and in line with community expectations, the property manager will hopefully never need to actually enforce it.
Scott Newhouse, BA, RCM, is President and CEO of Harmony Management, a boutique management firm with a speciality in condominium property management.
