Why this decision deserves a structured review
Changing condo management companies is one of the bigger decisions a board makes. The manager touches almost everything: finances, contractors, owner communication, records and the day-to-day running of the building. A change made in frustration can be disruptive, while staying too long with a manager who is not performing can cost the corporation money, time and owner confidence.
This article is about the step before any search or transition: judging how your current manager is actually performing and deciding whether the relationship can be fixed or should end. If you have already decided to change, our separate guides cover how to verify a condo management company's claims before you hire and planning a smooth management transition once you have chosen a new provider.
It is general information about Ontario law and practice, not legal advice. Your management agreement, declaration and by-laws matter, and your condominium lawyer should review any termination before notice is given.
Start with the board's own duty
Under section 37(1) of the Condominium Act, 1998, every director and officer must act honestly and in good faith, and exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. Supervising the corporation's service providers, including the management company, is part of that job.
Section 37(3) is worth knowing too. It says a director is not liable for a breach of that duty if the breach arises from relying in good faith on certain things, including financial statements that a condominium manager providing services under an agreement with the corporation represents to the director as presenting fairly the financial position of the corporation. In other words, directors lean heavily on what their manager tells them. If the board can no longer trust the reports it receives, that is a serious problem in itself.
Warning signs worth taking seriously
No manager is perfect, and every building has bad weeks. The signs below matter most when they form a pattern over several months, or when they continue after the board has raised them clearly.
Financial reporting you cannot rely on
- Monthly financial statements arrive late, are incomplete, or change after the fact without explanation.
- Variances against the budget are not explained, or the explanations do not hold up when directors ask follow-up questions.
- Arrears grow without a clear collection process or regular reporting to the board.
- Reserve fund spending is not clearly tracked against the reserve fund study, or the board learns about large expenses after they are committed.
- Audit queries from the corporation's auditor go unanswered or take far longer than they should.
Maintenance and contractor management slipping
- Recurring problems, such as leaks, elevator outages or garage issues, keep coming back with no root-cause plan.
- Preventive maintenance contracts lapse, or there is no current schedule the board can see.
- Contracts are renewed by default rather than reviewed or tendered when appropriate.
- The board cannot get a straight answer about who a contractor is, what they were paid, or why they were chosen.
Governance support that leaves the board exposed
- Board packages arrive too late for directors to read them before the meeting.
- Draft minutes are slow, inaccurate or missing decisions, and action items from previous meetings are not tracked.
- Owner meeting notices, information certificates or other routine statutory items need repeated reminders from directors.
- The manager does not flag issues the board should know about, leaving directors to discover them from owners.
Owner communication and service breaking down
- Owners report that emails and calls go unanswered, and complaints reach directors directly because the office is not responding.
- Notices to owners contain errors or go out late.
- The same complaint is handled differently depending on who answers it.
Records that are hard to find
Section 55(1) of the Act requires the corporation to keep adequate records, including financial records, the minute book, the declaration, by-laws and rules, and a copy of all agreements entered into by or on behalf of the corporation. Where a management company keeps those records for the corporation, section 6 of O. Reg. 4/18 under the Condominium Management Services Act, 2015 requires the licensee to maintain them securely and accurately, with due regard for the corporation's obligations under section 55, and to make them available to the client for inspection on request as soon as reasonably possible. If the board struggles to get its own records, or owner requests stall, treat that as a red flag. Our guide to handling owner records requests under section 55 explains what owners are entitled to.
Turnover and staffing problems
Frequent changes of site or portfolio manager are not always the company's fault, but repeated turnover usually means lost knowledge, repeated briefings and slower service. Pay attention to how the company handles it: whether you are told in advance, whether there is a proper handover, and whether the replacement is properly supported.
Separate a performance problem from a scope problem
Before deciding the manager is failing, pull out the management agreement and compare it with your frustrations. Boards sometimes expect services that were never in the contract, at a fee that never covered them. Ask three questions:
- Is it in the agreement? If the manager is missing obligations the agreement already sets out, such as reporting deadlines, site visit frequency or response times, that is a performance problem.
- Is it a capacity problem? A portfolio manager responsible for too many buildings, or a building that has outgrown its service model, can produce the same symptoms as poor performance.
- Is it a board problem? Conflicting instructions from different directors, unclear priorities or decisions that are not recorded can make any manager look ineffective.
Being honest about these questions protects the corporation. If the real issue is scope or capacity, a new company on the same terms may run into the same problems.
Try to fix it first, and keep a record
Unless something serious has happened, such as a concern about the handling of corporation money, most boards should give the current manager a fair chance to correct course. That also creates the paper trail you will want if you later decide to change.
- Write down the concerns. List specific examples with dates, rather than general dissatisfaction.
- Meet with the manager and their supervisor. Raise the concerns formally, at a level above the individual manager where appropriate.
- Agree on measurable expectations. For example, when financial statements will arrive, how quickly owner emails will be answered, and what reports the board will receive.
- Set a review period. A few months is usually enough to see whether things are improving.
- Record it in the minutes. Board decisions and the agreed review period belong in the board minutes.
If you believe a licensee has breached its legal obligations, rather than simply delivering a weak service, the Condo Management Regulatory Authority of Ontario (CMRAO) has a complaints process for licensed condominium managers and management providers. That process deals with licensee conduct; it is not a way to resolve a contract dispute.
Know your agreement before you decide
The legal route out of a management agreement depends mainly on what the agreement says and when it was signed.
Agreements signed by an owner-elected board
Most management agreements set out their own term, renewal and termination provisions, often including a notice period and sometimes a right to terminate for cause. Those provisions are what the board will usually rely on. Check the notice period, any renewal or expiry date, how notice must be delivered, and what the agreement says about handover and final accounts.
Agreements made before the turn-over meeting
Section 111 of the Act gives an extra right for agreements made before the owners took control. Under section 111(1), a corporation may, by resolution of the board, terminate an agreement under which it receives condominium management services that it entered into with a person before the owners elected a new board at the turn-over meeting held under section 43(1). Section 111(2) requires the board to give at least 60 days notice in writing of the date of termination to the person the corporation entered into the agreement with. Section 176 states that the Act applies despite any agreement to the contrary.
Section 111 does not give a general right to end any management agreement on 60 days notice. If your current agreement was signed by an owner-elected board, its own terms will usually decide how and when it can end. Have your lawyer confirm which rules apply before the board passes a resolution or sends notice.
What the outgoing manager must hand over
A common worry is that an outgoing manager will hold records back. Section 54(1) of the Condominium Management Services Act, 2015 requires every licensee that provides condominium management services to a client to immediately transfer all documents and records relating to the client upon termination of the contract, subject to the regulations. Section 54(3) says a licensee must not retain anything it is required to transfer as a means of pressuring the client to fulfil contractual obligations to the licensee.
Section 35 of O. Reg. 123/17 sets the timing: the transfer must happen no later than 15 days after the termination of the contract. If a record does not exist at termination but the contract required the licensee to create it, the licensee must create it, copy it and transfer it no later than 30 days after termination. The practical steps of the handover itself are covered in our article on planning a smooth management transition.
A simple decision framework for the board
When the review period ends, the board can usually reach a clear decision by working through these questions together:
- Did the specific problems we documented improve, stay the same or get worse?
- Are the remaining issues about performance, or about scope and fees that a new contract could fix with the same provider?
- Do we still trust the financial information we receive?
- What does the agreement say about notice, expiry and handover, and has our lawyer reviewed it?
- Do we have the time and volunteers to run a proper search and transition now, or should we plan for the agreement's expiry date?
If the answers point to a change, record the decision in the minutes, take legal advice on the notice, and run a structured search rather than moving straight to the first alternative. A clear request for proposal gives the board comparable answers on scope, staffing and fees.
How Brilliant Property Management can help
Brilliant Property Management has worked with Ontario condominium boards since 2002. If your board is weighing a change, we are happy to talk through your building's situation and what a realistic service scope looks like. Learn more about our condo property management in Toronto, see our full services, or invite a proposal through our request for proposal page.
Frequently asked questions
How do we know if our condo management company is the problem or the contract is?
Compare what the management agreement actually requires with what you are receiving. If the manager is meeting the written scope but the board wants more, the fix may be a revised scope or a different service level. If the manager is missing obligations that are already in the agreement, such as report deadlines or record keeping, that is a performance problem.
Can an Ontario condo board end a management contract early?
It depends on the agreement and when it was signed. Most management agreements set out their own term and termination provisions, and those govern. Section 111 of the Condominium Act, 1998 separately allows a board, by resolution, to terminate a management agreement that the corporation entered into before the owners elected a new board at the turn-over meeting, on at least 60 days written notice of the termination date. Have your condominium lawyer review the agreement before giving notice.
Do owners have to vote to change the condo management company?
Section 27(1) of the Condominium Act, 1998 says the board of directors shall manage the affairs of the corporation, and boards normally decide on the management company by resolution. Check your declaration and by-laws for any additional requirements, and keep owners informed once a decision is made.
How long does the old manager have to hand over our records?
Under section 54 of the Condominium Management Services Act, 2015, a licensee must transfer all documents and records relating to the client upon termination of the contract. Section 35 of O. Reg. 123/17 sets the deadline at no later than 15 days after termination, or 30 days for records that did not yet exist but that the contract required the licensee to create.
Is a single bad experience a reason to switch managers?
Usually not on its own. Boards get better results by documenting concerns, raising them formally with the manager and their supervisor, and setting a review period. A pattern that continues after clear feedback is a much stronger reason to change than one incident.
This article is general information about the Condominium Act, 1998, the Condominium Management Services Act, 2015 and their regulations, current as of October 2026. It is not legal advice. Your rights and obligations depend on your management agreement, declaration and by-laws. Consult your condominium lawyer before terminating any agreement.