My Home Is My Fortress: Hidden Facts Regarding People Living in Strata Communities in British Columbia, Canada

By Vladimir Hristov

A newcomer from the old world came in Canada to live a better life. He hopes that his book will be accepted and make people understand the philosophy of the Strata communities in British Columbia, Canada

• Language: English
• Publisher: Balboa Press
• Release date: Dec 7, 2016
• ISBN: 9781504369626

Vladimir Hristov

The author is a newcomer from the Old World who came to Canada to live a better life. He hopes that his book will be accepted and make people understand the philosophy of the strata communities in British Columbia, Canada.

Book preview

Copyright © 2016 Vladimir Hristov.

All rights reserved. No part of this book may be used or reproduced by any means, graphic, electronic, or mechanical, including photocopying, recording, taping or by any information storage retrieval system without the written permission of the author except in the case of brief quotations embodied in critical articles and reviews.

Balboa Press

A Division of Hay House

1663 Liberty Drive

Bloomington, IN 47403

www.balboapress.com

1 [phone]

Because of the dynamic nature of the Internet, any web addresses or links contained in this book may have changed since publication and may no longer be valid. The views expressed in this work are solely those of the author and do not necessarily reflect the views of the publisher, and the publisher hereby disclaims any responsibility for them.

The author of this book does not dispense medical advice or prescribe the use of any technique as a form of treatment for physical, emotional, or medical problems without the advice of a physician, either directly or indirectly. The intent of the author is only to offer information of a general nature to help you in your quest for emotional and spiritual well-being. In the event you use any of the information in this book for yourself, which is your constitutional right, the author and the publisher assume no responsibility for your actions.

Any people depicted in stock imagery provided by Thinkstock are models, and such images are being used for illustrative purposes only.

Certain stock imagery © Thinkstock.

ISBN: 978-1-5043-6952-7 (sc)

ISBN: 978-1-5043-6962-6 (e)

Balboa Press rev. date: 11/17/2016

CONTENTS

WHAT IS STRATA PROPERTY MANAGEMENT?

HISTORY BACKGROUNDS

RESPONSIBLE OWNER

PERSONAL RESEARCH OF THE STRATA COMPANIES

STRUCTURE OF PROPERTY MANAGEMENT COMPANIES

AGENCY AGREEMENTS

PROPERTY MANAGER VERSA A CARETAKER

MANAGERS’ LICENSES

LAWYER OR NOT?

WHERE TO BUY?

SECRETS IN PROPERTY MANAGEMENT BUSINESS

PROPERTY MANAGEMENT AGENCY CONTROL

OWNERS’ ASSUMPTIONS AND GUESSES

GOVERN AND PROTECT OUR HOME

CONTINIUOS SERVICE OF THE PROPERTY MANAGER

HOW TO APPROACH THE AGENCY?

WORKING WITH THE PROPERTY MANAGER

PROPERTY MANAGER POSITION INSIDES

THE CHOICE AND THE MERIT OF THE PROPERTY MANAGER

PROPERTY MANAGER’S PORTFOLIO AND ITS REFLECTION ON OUR BUILDING.

THE ABILITY TO CONTROL THE PROPERTY MANAGER AND WHY TO DO SO.

MEETINGS WITH THE PROPERTY MANAGER AND WHY

DEMAND FOR A PROPERTY MANAGER OR A CARETAKER.

WAITING TIME FOR THE CORRESPONDENCE WITH THE PROPERTY MANAGEMENT

QUALITIES AND REQUIREMENTS TO BE A PROPERTY (STRATA) MANAGER

MYTHS AND REALITY FOR THE PROPERTY MANAGER DUTIES AND RESPONSIBILITIES

PHONE CALLS NOT RETURNED BY THE PROPERTY MANAGER

SCHEDULES AND DEAD-LINES FOR THE PROPERTY MANAGER

CUSTOMER SERVICE IN PROPERTY MANAGEMENT BUSINESS

HIGH EXPECTATIONS FROM THE PROPERTY MANAGERS

VERBAL ATTACKS AND THREATS AGAINST THE PROPERTY MANAGERS

SECRETARY OR A MANAGER OF THE PROPERTY

BUYING OR RENTING A UNIT

OWNERSHIP

TO BE A TENANT

RENT OR BUY

CHALLENGES WITH RENTING OUT

RENTAL PROPERTY MANAGEMENT

SECURITY & MOVING IN/OUT PROCEDURES

COMMUNICATION WITH YOUR TENANTS

STRATA MANAGER AND TENANTS

TENANTS AND STRATA CORPORATION’S COUNCIL

INVESTMENT OT LIVING IN OUR HOME

SMOKING ISSUES WITH THE RESIDENTS

SCREENING YOUR FUTURE TENANTS OR UNFORSEEN ISSUES.

EVICTIONS OF THE TENANTS

PETS IN THE BUILDING

BYLAWS, RULES AND ILLEGAL RENTALS

COUNCIL MEMBERS AND THEIR RESPONSIBILTIES

COUNCIL IN THE RESIDENTIAL STRATA CORPORATION

COUNCIL MEMBERS ELECTIONS

EXPECTATIONS FROM THE COUNCIL

RELATIONSHIPS BETWEEN THE COUNCIL AND THE OWNERS

RELATIONSHIP BETWEEN THE COUNCIL AND THE PROPERTY MANAGER

ARGUMENT WITH THE COUNCIL MEMBERS

COUNCIL MEMBERS APPROACH AND PRIVACY

OVERPOWERING THE COUNCIL MEMBERS

CORRESPONDENCE WITH THE COUNCIL

HEARING WITH THE COUNCIL

COUNCIL MEMEBRS AND THEIR TERMS IN THE COUNCIL

COUNCIL MEETINGS AGENDAS

DECSIONS IN THE COUNCIL

LEGAL ACTIONS AGAINST THE COUNCILS

PROPERTY MANAGER INFLUENCE OVER THE COUNCIL.

MINUTES AND HOW THEY REFLECT YOUR INVESTMENTS.

MEETING MINUTES ARE…

COUNCIL MEETING MINUTES POSTAGE.

THE IMPORTANCE OF THE MINUTES

MISTAKES IN THE MINUTES

PRIVACY ISSUES IN THE MINUTES

NOT MENTIONED IN THE MINUTES

CORRESPONDENCE IN THE MINUTES

INCIDENTS MENTIONED IN THE MINUTES

FACTS IN THE MINUTES WHICH INFLUENCE THE VALUE OF THE PROPERTY.

IN CAMERA MINUTES

TIME LINE OF THE COUNCIL MINUTES

AGM/SGM MINUTES AND THEIR DIFFERENCE

HEARING AND THE MINUTES

MINUTES’ AMENDMENTS

PEOPLE WHO MAY OBTAIN THE MINUTES.

BYLAWS, RULES AND OTHER LAWS TO BE CONSIDERED IN BC.

STRATA PROPERTY ACT IN BC, CANADA

BYLAWS OF THE STRATA CORPORATION

RULES OF THE STRATA CORPORATION

PRIVACY ACT AND ITS REFLECTION TO THE STRATA CORPORATION

CITY BYLAWS

FIRE DEPARTMENT BC CODE

APPLICATION OF THE RULES AND BYLAWS

BYLAW FINES OBJECTIONS FROM THE OWNERS

BYLAWS AMENDMENTS

RULES AMENDMENTS

SEVEN DAYS CONTRAVENTIONS IF THE BYLAWS APPLIED

VISITOR PARKING BYLAWS- APPLICATIONS AND CHALLENGES

PROPERTY MANAGER AND THE BYLAWS

THE REVERSAL OF THE BYLAWS’ FINES

LEGAL COLLECTIONS OF THE FINES AND THE CHARGE-BACKS

INSURANCE

BRIEF MEANING OF THE INSURANCE

VARIOUS DEDUCTIBLES

COMMON PROPERTY INSURANCE COVERAGE

PROPER INSURANCE CHOICE

INSURANCE CLAIM

EMERGENCY SITUATIONS

REPAIRS UNDER THE INSURANCE DEDUCTIBLES

PROPERTY MANAGER AND EMERGENCIES

HOME OWNERS INSURANCE

DISPUTES ABOUT MONEY CHARGED BACK TO YOUR ACCOUNT.

HEARING FOR THE CHARGE-BACKS

BEST INSURANCE COMPANY

ACCEPTING THE REALITY

INSURANCE COMPANY’S COVERAGE INSIDE YOUR UNIT

INSURANCE AND WARRANTY

CORRESPONDENCE WITH THE PROPERTY MANAGER AND THE STRATA COUNCIL

THE BASICS OF THE CORRESPONDENCE

CORRESPONDENCE WITH THE PROPERTY MANAGER

CORRESPONDENCE WITH THE COUNCIL

BYLAW FINE CORRESPONDENCE

CHARGEBACKS AND CORRESPONDENCE

NOISE COMPLAINTS CORRESPONDENCE

INSURANCE DEDUCTIBLES- CPORRESPONDENCE

E-MAIL CORRESPONDENCE

REQUESTS- CORRESPONDENCE

DEMAND LETTERS

LIEN LETTERS

LEGAL CORRESPONDENCE

MISTAKES IN THE CORRESPONDENCE

ASSUMPTION OF LIABILITY LETTERS AND NOTICES

ACCESS TO THE STRATA LOTS (UNITS)

STRATA LAWYERS

A LEGAL COLLECTION

DIFFERENCE BETWEEN THE PROPERTY MANAGER AND THE LAWYER

LEGAL OPINIONS

COUNCIL AND THE LEGAL CASES

LEGAL COLLECTIONS

SMALL CLAIM COURT POSSIBLE APPROACH

SUPREME COURT POSSIBLE APPROACH

ARBITRATIONS

MEDIATIONS

VOLUNTEER DISPUTE RESOLUTIONS

WHO HAS THE RIGHT TO JUDGE?

SHALL WE REALLY NEED A LAWYER?

THE REAL ESTATE COUNCIL OF BC

CIVIL RESOLUTION TRIBUNAL OF BC

GOING AGAINST THE PROPERY MANAGEMENT COMPANY

COMMON AND LIMITED COMMON PROPERTY

COMMON PROPERTY

LIMITED COMMON PROPERTY

VISITOR PARKING

ACCESS TO THE MECHANICAL AND OTHER UTILITY ROOMS

LEAKS AND THEIR INTERPRETATIONS

CHANGE OF THE COMMON PROPERTY

MOVE-IN AND OUT PROCEDURES RELATED TO THE PROPERTY

PROPERTY MANAGER AND THE COMMON PROPERTY

WAIVING OFF THE STRATA CORPORATION

DAMAGES ON THE COMMON PROPERTY AND REFLECTION ON THE BUILDING’S VALUE

OWNERS’ CONTRIBUTIONS TO THE COMMON PROPERTY’S MAINTENANCE

DEPRECIATION REPORTS

LIMITED COMMON PROPERTY REPAIRS

DISPUTES WITH THE STRATA CORPORATION

THE MINDSET OF AN OWNER

ABOUT THE AUTHOR

WHAT IS STRATA PROPERTY MANAGEMENT?

HISTORY BACKGROUNDS

Nobody was borne full of knowledge about anything in the world. We, as human beings, learn every day in every situation presented by Life. Since ancient times our home was a dominant core in every age of our life. Our home was something was proud of and we adored. In today’s busy life we also want to get back home and to relax, disturbed by anybody. That is why, it is important to understand why the Strata Property Management arises in North America and the idea related to that disguised industry. In 90 % of all countries over the world, there is no much legislation as here on American continent and all issues and challenges are handled by individual owners in every case. In Canada and the USA, the care of our home is taken seriously by the governments and by the owners. Understanding how the system works make us powerful and we may decide faster and precisely how to solve property related challenges. After the leaky condos and many abuses by the property management companies in British Columbia (BC), Canada, the local government decides to make the job of Strata property Manager licensed and be monitored by the Real Estate Council of BC. This brokers, assistant brokers and representatives of the brokers (Strata Property Management) are monitored, sanctioned heavily if it is necessary in order the regular owners to live a better, hazardous-free life. The education through which all employees of the Strata management companies are going must and is on-going in order the companies to keep up with current legislation. The governing of the properties can be handled successfully by the Owners in a community if they know and trust each other. You will care of your home better than anybody else. The main question is who is willing to do that on a volunteer basis with all challenges, humiliations and personal attacks? That is why the second option is more popular- Strata Management Companies, known by most of the people as Property Management companies or Brokers.

RESPONSIBLE OWNER

Ownership is an excellent and unique experience. I did that in my life twice and it is a great achievement. The more properties you have, it is better for your wealth, financial stability and families. Properties are something tangible, which you can rent, sell or share with anybody you choose. Unfortunately many people do not realize any property is coming with a responsibility. Your home is like a flower and all flowers are growing or dying. There is no middle way. In order your property to be in good condition, you have to take care of it as much as you can or to find somebody to take care of the property on your behalf. I would like to ask my reader not to take it personal, however it is our responsibility our property to look good, welcoming and attractive. It is our responsibility who I residing in our property, as a visitor or a tenant. Nobody else will do that diligently better than ourselves. Constant and on-going care is the key for success and better value of the property. If you invest more, you will receive better return in future. The long term mentality and attitude is a must if you want to be an owner. It is a life assignment and a daily task, a responsibility and a long term investment, a flower and maybe a long life durable tree, a wish and a burning desire which can make you breathe freely and independently.

PERSONAL RESEARCH OF THE STRATA COMPANIES

As owners we have too much on our plate before the real estate deal is over or accepted in the Notary office. We have our realtors and their advices are crucial for our purchase. We might not see our neighbours in our future home. Sometimes we visit our future residence or investment in a time which does not give us the full picture of the property qualities, but a small fraction of all details. Even though, we are not aware that the Strata Managers (Property Strata managers) are under direction of the Council (volunteering owners), we are as future owners might consider to make our own research and check who the current Property Management company is and how many positive feedbacks there are if any. It does not mean that it should stop our purchase if we find the negative comments, however if we have many owners complaining about the brokerage company, we may ask our realtor for advice and some feedbacks from the current owners if it is available. One Owner cannot change the Property manager, but may find more owners who might agree with him or her for the cancellation of the Strata Management Agreement (contract). The initial research and advice from the local realtor might help you to affirm your investment or not. As owners we have to understand that Property Management Company is a contractor who is following the directives of the Council (executive organ in the Strata Corporation) in the limitations of the current laws in BC such as: Strata Property Act of BC, Privacy Act of BC, Local City Bylaws, Fire Code of BC, etc. Property Management Companies are not managing the properties by themselves without any authorization and these companies have limited power to make decisions for any estimates or disputes between the owners in the community. Property Manager is not a caretaker and he/she does not work for the owners 24/7/365 days a year. We always forget that the Property Managers are humans as us and they have families, own issues and time for themselves. Supermen and women are only in the movies. The proper support structure will keep a Property Manager longer in an organization rather the individual be a jack of all trades and master of none. Research your property manager and your council in advance in order not to get surprised later.

STRUCTURE OF PROPERTY MANAGEMENT COMPANIES

After we become Owners, we have to receive documents related to our payment plan for the monthly strata fees (HOA fees in the USA). In North America we have mandatory monthly fees which are used to support the maintenance of the building, salaries for the Property Management Company, caretaker or concierges expenses, landscaping, mechanical contractors, etc. The submitted funds are divided into two: Operating budget which must be approved by all presented owners at their Annual General Meeting and this mandatory meeting is held once per year. Without this approval, there cannot be no budget acceptance by the Council and it must be scheduled another meeting to accept specifically the budget. Part of the budget shows the Contingency reserve Fund (CRF) which is accumulated by the owners’ monthly fees. The CRF money can be used for emergencies only or things which are happening for less than once a year and that means very rarely. The mindset for collecting of additional money from all owners is to protect our homes from any unforeseen events like flood, fire, leaks or earthquake. We, the owners, have to know every year where our money goes or being spent for the mandatory repairs and building quality tests. The volunteers who are in the Council may save these funds, however it is always better the allowed money to be spent reasonably. The Property Manager is not the only person who is serving the owners. There is a Regional manager, accountant and in some companies, administration, Forms department and clients service center assistants. The management fees are covering many services such as Financial Reports (usually monthly), preparation of the Annual budget, paying the Invoices to the contractors, meeting with government agencies and local agencies if it is necessary, Council meetings, meeting with an owner if it is something urgent, answering to the written and sometimes verbal correspondence, etc. Owners are mostly dealing with the Property Manager; however the Property Manager is not the only person in the Strata Management Company.

AGENCY AGREEMENTS

Two Members of the Council are signing the contract with the Property Management Company (Agency Agreement) and the final choice for that company has to be presented to all the Owners for approval. If you have a different company before the new proposal, a ¾ Vote Resolution must be presented to the Owners at the AGM or SGM (Special General Meeting). Owners do not know who is signing the new contract and send the cancellation letter to the Property Management Company, but the residents want maintenance to be made properly and efficiently. Council members have to make decisions which will lead to the proper agent for all owners. Council has the unpleasant responsibility for making that choice. Often owners do not know all details behind the proposed cancellation of the current Agency Agreement, however Owner in most cases trust their Councils. Councils are volunteers who sacrifice their time for the rest of the owners and they are acting on the owner’s behalf. Even some owners may be pleased by the services of the current Property Manager; the Council members are the main customers for the Property Management Company and their main reason for contract’s termination. It is really challenging that several, sometimes a few people may turn the tide against the Property Management Company. However if the termination of the contract is defeated by the Owners and the Council members who proposed stay the same then not many decisions will be held afterwards due to the harsh feelings and inconvenience. That is why all owners have to know their Council members and might also be a part of the Strata Council. The negligence or not paying attention is not an excuse if the projects are postponed or some mandatory repairs are not completed. Blaming is not an action, the participation is a progress.

PROPERTY MANAGER VERSA A CARETAKER

It brings a lot of dissatisfaction and frustration when we compare both vocations: Caretaker (handyman) and Property Manager. Owners hardly understand both positions characteristics and they are misled by the meaning of the word titles presented. The owners’ expectations are also high from both positions and that is an advantage if a company or a person wants to offer more services. The question is how much will cost all proposed services? Caretaker is a person responsible for the building day-to-day operations such as general cleaning, mechanical rooms check, possible power washing, some small painting, patching and parking check too. Caretaker contract may vary from monitoring of the Concierge Team on site to reacting to emergencies on a daily basis if it is necessary. The handyman is hands-on related professional and he/she is in charge of one, possible two buildings maintenance schedules. The caretaker is the eyes and the ears of the Council and the council members trust more the caretaker than the Property Manager. On the other side the Property manager is not a supervisor of the caretaker. The Strata Manager can advise the caretaker, a partner in solving various situations and a learner from a caretaker’s experience. Unfortunately many people do not understand the whole concept behind the property management and the same people assume that Property Manager and the caretaker is one and the same thing. The reality and the legislation show that both professional positions are not the same. The caretaker is an important person in any residential building; however when there is no Budget fund for such a position or service, Council automatically is responsible for the handyman role. This leads to a frustration to both owners and the Council members at the same time. Property Manager may help from time to time however he/she cannot replace the caretaker’s liabilities due to limitation of his/her time schedules and evening meetings. Property Manager has many buildings portfolio to attend and inspect and many daily or evening meetings with the Council members and/or owners. Both positions are vitally important for many Strata Corporations however these positions must not be mixed for their meaning and primary functions. Both professional vocations can be enhanced, developed and supported by the Council depending of mutual respectful relationships between the Councils from one side and the Property Managers and the caretakers from another.

MANAGERS’ LICENSES

Ownership, as we have understood by now is not only a dividend or a pleasure, but a responsibility for all of us who made the decision to become landlords. As owners we have to have the ability to discern the differences between a Rental Property manager and Strata Property Manager. All property managers are licensed, as well as their brokers (Property Management Companies). All licensees are monitored by BC Real Estate Council. The major difference the rental and the Strata manager is the fact that the rental property manager is representing many owners individually and then rental property manager is a buffer zone between the owners and their tenants. There is a different legislation related to that kind of relationships such as: tenant- Rental Property Manager and the owners. Rental Property Manager may represent the owners in front of the Council however they are not engaging in details with other owners in the building as well as the Strata Corporation budgets, Financials and major projects. The Strata (Property) Manager is dealing with all owners and the council members and not with the tenants directly. It is the owners who are responsible for the tenants’ actions or lack of actions. Strata Manager has different duties such as: Owner’s correspondence, emergencies which involve common property, units’ leaks, fire, floods, insurance coverage, obtaining quotes, AGM notices, legal opinions requests, hearings, Agendas of the Council meetings, etc. These are only several responsibilities which do not exclude follow- up disputes with owners, writing letters to the owners, monitoring the arrears and legal collections and many more. Strata corporations are non-to profit organizations, which are run by the owners, who delegate 3-7 Council members to represent the ownership. The Strata Corporations Bylaws are the guidance for the council to monitor and maintain the property. Both Property Managers must have licenses and that is the first thing which the Owners must ask. The proof of the active license is the main step to move forward to a long term partnership.

LAWYER OR NOT?

Property Manager is not a lawyer. You may find in the government websites of BC the basic difference between a lawyer and the Property Management functions. Many Owners assumed that the Property Manager who is quoting the Strata Property Act and the Bylaws is a paralegal or a lawyer. I would like to emphasize that the fact that the Property manager may ask for a legal opinion on behalf of the Strata Corporation and may use it for a future reference, however that does not make him/her a lawyer. Owners may ask for legal assistance and they have to be aware that it is their expense. In addition, owners have to be prepared for a long journey sometimes if they decide to use the legal service in BC courts. Sometimes it is better to deal directly with the Council if it is possible and to have a reasonable conversation or a hearing process to be involved too. Legal assistance is expensive matter for any party involved such as: Owner against Owner, or Owner against Strata Corporation. It can be a long dispute, full of humiliation, lack of night sleep, revenge and finally at the end most probably nobody will be satisfied from the Court’s decisions. There are always ways which might be cheaper and more humane. This includes changing the perspective of the Owners and their values. For example – A Bylaw fine may be paid instead of going in discussions, because this money is going in the common budget and not in the Council members’ pockets or Strata Manager’s pocket. It will be a hearing which can be useful in order to validate what Bylaw fine was implemented. The friendly approach is always much better than the aggression and frustration letters or e-mails. It is worth to forgive and understand rather judging the circumstances. Life is too short to lose the precious moments in the arguments and long debates. I would like to inform the readers that the legal fees may start from $400.00 up to a $1000.00 for 1 hour advice or reviewing written documents. Please take this into consideration before you approach strata/condo lawyers.

WHERE TO BUY?

There is not any specific advice what to buy and where to buy in Lower Mainland, BC.