Signs It’s Time to Switch Your Property Management Company
Switching condo management companies is a major governance decision, but when your current provider is not meeting expectations, a change can significantly improve your condo community’s operations, financial health, and resident satisfaction.
Common signs it may be time to switch include:
- Slow or inconsistent communication with board members or residents.
- Frequent service delays, unresolved maintenance issues, or missed deadlines.
- Lack of transparency in financial reporting or budgeting.
- Minimal on-site presence or a declining quality of oversight.
- Poor vendor coordination and communication that creates inefficiencies or unnecessary costs.
- High turnover of property managers assigned to your site.
If your condominium corporation is experiencing these issues, it may be time to explore a new direction. If your board is unsure whether the issues your condo community is experiencing point to a larger performance concern, our article on recognizing when your condo property management provider is no longer meeting expectations provides clear warning signs and helps your board decide when a change is needed.
The Step-by-Step Process for Switching Property Management Companies
Switching condo management companies is not something your board should do casually. It is a multi-stage process that involves contractual review, governance decisions, transparency with owners, and a structured transition plan that helps prevent financial, operational, or compliance-related gaps. Below is a best-practice roadmap designed specifically for Ontario condominium corporations.
Review Your Current Management Contract
Before your corporation begins the process of replacing its property management company, the board must take time to thoroughly review the existing contract. This review helps your board understand what actions it can take during the transition and what limitations the agreement creates.
The first area of the agreement to examine is the termination clause. Most agreements contain two distinct pathways: termination without cause and termination for cause. Termination without cause typically allows the board to end the relationship for any reason as long as it provides the proper notice. Termination for cause is more serious and may permit immediate separation if the management company breached the contract, mismanaged the corporation’s finances, or failed to uphold core services. The board should always support this option with clear documentation and legal advice.
Notice period requirements also shape the transition timeline. Many management contracts in Ontario require the corporation to provide 60 to 90 days notice. Some contracts specify the exact method of delivery, such as written notice sent by registered mail to a particular address. If the board does not follow these requirements, the termination may be considered invalid and create legal or operational challenges.
In addition to reviewing termination and notice provisions, the board should identify the specific deliverables the management company must provide when the contract ends. These deliverables often include financial statements, bank account access, reserve fund records, owner and resident registers, vendor contracts, electronic documents, meeting minutes, work order logs, and other key files. Understanding what the corporation is entitled to receive helps the board hold the outgoing company accountable during the handover.
Confirm the Notice Period and Termination Clauses
After reviewing the contract, the board should confirm the exact notice period and process for delivering the termination letter. This step helps the board build an accurate transition schedule.
Most condominium management agreements in Ontario specify a notice period of 60 to 90 days. The board should confirm whether the contract requires an advisory meeting, a written letter signed by an authorized representative, or delivery to a specific office or corporate contact. It is also important to confirm whether the contract requires a formal board resolution before issuing notice. Following these requirements protects the board from claims that it delivered the termination improperly.
During the notice period, the outgoing management company continues to provide full service. It must continue to manage the site, respond to resident inquiries, maintain operational oversight, and complete monthly financial work. The back-office team must prepare financial statements, complete reconciliations, and organize physical and digital records.
The board should avoid giving notice before selecting a new management provider. If the board gives notice too early, the corporation risks being left without management support. The goal is to have the new firm begin service on the same day the outgoing firm concludes its responsibilities. This requires careful planning and coordination.
Form a Transition Committee
Most Ontario condominium boards consist of three to five directors, so forming a transition committee does not require a large structure. Instead, the board can simply appoint two or three directors who will take the lead on the transition while keeping the full board informed.
In many communities, the President and Treasurer assume this role because they already understand the corporation’s operational and financial needs. A third director may participate if they have experience with maintenance, legal matters, or vendor oversight. The goal is to identify a small group that actively manages the transition tasks and reduces administrative strain on the rest of the board.
Even with a small committee, the responsibilities remain significant. The committee guides the evaluation process, helps draft the proposal package, and coordinates interviews with potential firms. It also acts as the primary communication point for owners during the transition. This may include preparing notices, responding to questions, and helping residents understand how and when changes will occur.
Throughout the handover period, the transition committee works closely with both the outgoing and incoming management companies. The committee monitors progress, confirms that the outgoing firm is transferring records, verifies bank documentation, and checks financial information for accuracy. Regular updates to the full board keep all directors informed and aligned with the transition plan.
Start the Request for Proposal (RFP) Process
Once the board has formed its transition committee, the group can begin preparing the Request for Proposal. A well written RFP gives management companies a clear understanding of your community, its challenges, and the level of service required. It also helps the board gather accurate proposals that can be compared fairly. When preparing an RFP, it can be helpful to understand what qualities separate a strong management firm from an average one. Our guide on how to choose a condo property management company provides a deeper look at what boards should prioritize when evaluating potential partners.
A strong RFP begins with a detailed profile of the building. This includes the age of the property, the number of units and parking spaces, the amenity spaces, and any unique operational considerations. The committee should also describe current challenges, such as capital projects, long-standing maintenance issues, service delays, or financial concerns. Sharing this information helps bidders propose realistic solutions rather than relying on generic service models.
Service level expectations are another key part of the RFP. The board should outline the expected on-site presence, communication standards, meeting attendance, reporting expectations, and compliance requirements. Boards that want greater transparency or more modern technology should highlight expectations for digital record keeping, online portals, invoice approval systems, and preventive maintenance planning.
A clear and detailed RFP sets the foundation for high-quality proposals and a more efficient decision-making process. It also establishes early expectations for the professional relationship with the new firm.
Conduct Interviews and Compare Proposals
After the board receives proposals, begin interviewing shortlisted firms. Interviews help the board move beyond the written submission and evaluate each company’s service philosophy, leadership style, and operational approach.
During the interviews, the board should assess whether the company has experience managing similar properties. Firms with relevant experience are better prepared to support your community’s specific needs and avoid service interruptions.
Communication practices are another important area to explore. Boards should ask how the company communicates with owners and residents, how quickly it responds to inquiries, and what tools it uses to maintain transparency. Many companies now use online portals, inspection apps, automated workflows, and cloud-based systems, all of which strengthen accountability.
The board should also examine each firm’s approach to preventive maintenance, financial oversight, and capital planning. Understanding how the firm manages budgets, reserve fund planning, and vendor relationships helps the board assess whether the proposal reflects long-term value.
Another factor that influences service quality is the assigned manager’s portfolio size. Managers with smaller portfolios generally have more time to dedicate to each community. The board should also ask each firm to describe its transition process and explain what support it provides during the first ninety days.
Although cost is an important factor, it should never be the sole basis for the decision. The board should evaluate proposals based on overall value, service delivery, alignment with expectations, and the firm’s proven ability to support similar communities.
Vote and Approve the New Management Contract
Once the board finishes interviews and reviews the proposals, it can select the new management company. This step requires a clear and organized approach to support good governance.
The board makes this decision at a scheduled or special meeting. Before the vote, directors review the full contract, ask questions, and confirm how the terms align with the corporation’s needs. This process ensures that every director understands the agreement.
When the board votes, it records the decision in the meeting minutes. Most boards approve the contract with a simple majority, but some require unanimous support. Recording the vote creates a clear governance record.
After the vote, the board reviews the contract again before signing. Directors confirm fees, termination provisions, communication standards, meeting expectations, after hours support, financial reporting, and technology requirements. If the corporation faces complex projects, the board may ask legal counsel to review the contract.
Once the board approves the final version, the signing officer signs the agreement. The new management company then prepares its onboarding and transition plan and coordinates with the outgoing firm. The new management company will also prepare an owner communication, so residents know when the change begins and how to access support.
A well-planned approval process creates a smooth transition and builds a strong foundation for the corporation’s relationship with its new management provider.
Notify Owners and Communicate the Transition Plan
Once the board approves the new management contract, it can prepare communication for owners about the upcoming change. Clear and timely communication helps residents understand the transition, its impact, and where to find support.
The board’s first message should announce the new management provider and confirm the start date. Owners appreciate a brief explanation of why the board chose a new firm, without sharing confidential discussions. The board should also reassure residents that core services will continue and that both firms will coordinate to support a smooth handover.
Residents need practical information to adjust. The board can share contact details for the new management office team, instructions for reaching the manager, and an overview of what to expect in the first weeks. If the new firm uses different systems for maintenance requests, payments, or portals, the board should introduce this early to help owners adapt.
During the transition, some residents may have questions about their personal information or service requests. The board can guide residents to the correct contact and confirm that the corporation will transfer all records, including work orders and account information. Regular updates reduce uncertainty, especially when new digital tools or communication platforms will be used.
Clear communication helps residents feel confident in the corporation’s leadership. It also gives the new management company the clarity it needs to begin its work without delays. When the board communicates consistently and proactively, it sets a positive tone and supports a stronger working relationship.
What to Include in a Property Management Transition Plan
A well-developed transition plan gives the incoming management company the information and structure it needs to assume responsibility without disruption. It also provides clarity for the board and supports a smooth changeover from the outgoing provider. The strongest transition plans focus on the information that must be transferred, the timelines involved, and the roles each party will take during the handover.
When the new firm begins its onboarding process, it will assign staff responsible for day to day operations and compliance. Many boards find it helpful to understand the difference between a Property Manager and a Condominium Manager, particularly in Ontario where licensing requirements affect the scope of work and the level of oversight the corporation receives. If your board would like more clarity on these roles, our article explaining the difference between a property manager and a condominium manager in Ontario provides a helpful overview. With this understanding, the board can better evaluate staffing assignments, communication expectations, and service delivery throughout the transition.
Financial Handover and Bank Account Transfers
The incoming management company must receive accurate and complete financial information before it can take responsibility for the corporation’s accounting. This includes financial statements, reconciliations, reserve fund records, arrears information, pending invoices, and supporting documentation. Bank account access also needs to be transferred so the new provider can process payments, issue cheques, and manage day to day financial activity without delay. A thorough financial handover helps ensure that vendors are paid on time and that financial reporting remains accurate during the first months of service.
Transfer of Digital Records, Documents, and Access Credentials
Condominium corporations rely on a wide range of records to support governance, operations, and compliance. These files must be transferred in full, whether they are stored digitally or in physical form. This includes governing documents, meeting minutes, insurance certificates, communication logs, status certificate files, building manuals, warranty information, and compliance documentation. Access to software platforms or portals also needs to be addressed. If the outgoing provider cannot transfer access, the corporation must receive complete data exports so the new company can maintain continuity.
Status of Current Orders and Maintenance Schedules
To support operational continuity, the incoming firm must receive an updated record of open work orders, ongoing maintenance tasks, and recently completed repairs. Annual maintenance schedules and recurring service routines should also be included. This information helps the new management team communicate with residents, coordinate with vendors, and maintain compliance with life safety and building maintenance requirements from the first day of service.
Vendor Contracts and Service Agreements
Every condominium corporation depends on a network of vendors to maintain building systems and amenities. As part of the transition, the outgoing firm must provide the new provider with copies of all vendor contracts, including details on renewal dates, pricing, service expectations, and termination provisions. Recent service records, quotes, or invoices can also help the incoming company establish a clear understanding of vendor performance and upcoming needs.
Insurance Policies and Compliance Requirements
Insurance documentation must be transferred in full, including current policies, certificates of insurance, claims history, and broker contact information. The incoming management provider will also need a clear understanding of the corporation’s compliance status. This includes CAO filings, CMRAO licensing requirements, fire safety documentation, reserve fund materials, accessibility compliance, and other statutory obligations. With accurate information, the new provider can begin managing deadlines and maintaining compliance from the outset.
Common Mistakes Condo Boards Make During a Management Change
Many condominium boards change management companies to improve service, strengthen communication, or gain more proactive support. Even with clear goals, boards can face challenges during the transition.
One common mistake occurs when boards begin the transition without reviewing the existing contract. When boards overlook termination clauses or notice requirements, they risk delays or contractual disputes. A careful contract review prevents these problems.
Another mistake happens when boards give notice too early. If the board ends the contract before choosing a new provider, the corporation may lose management support. This gap can disrupt finances, operations, and legal obligations. Boards can avoid this risk by selecting the new provider before delivering notice.
Boards also create challenges when they do not request complete records from the outgoing firm. Missing files force the new provider to rebuild documents instead of supporting residents. When boards monitor the record transfer, they help the new provider start strong.
Focusing too heavily on price can also cause issues. The lowest proposal may not offer enough staffing, technology, or service quality. Boards achieve better results when they evaluate proposals on long-term value and service capacity.
Some boards also forget to communicate early with owners. When residents do not understand the reason for the change, they may feel uncertain or frustrated. Clear communication builds trust, helps residents adjust, and creates a smoother transition for the incoming provider.
Conclusion
A management change represents a significant shift in how a condominium operates. When boards take the time to plan carefully, review the existing contract, and coordinate a detailed transition, they create stronger conditions for both service continuity and long-term success. A well executed handover gives the incoming provider everything it needs to begin supporting the community effectively.
Clear communication, organized record transfer, and strong governance help the corporation receive the improved service, financial oversight, and responsiveness it expects from the new provider. With thoughtful planning and the right management partner, a condominium corporation can strengthen its operations and create a better experience for owners and residents.
