A property management relationship that isn’t working is a governance problem — the corporation’s operations, finances, and owner relations are all affected. The response depends on whether the problem is correctable within the current relationship or whether the relationship needs to end.
“Most performance problems are correctable if they’re raised early, specifically, and in writing. A management company that gets a vague complaint (‘we’re not happy with the service’) has very little to act on. A management company that gets a written list of specific deficiencies with dates and examples has a clear remediation target. If they still don’t correct it, you have documented grounds for termination for cause.”
— Nida Galanxhi, Director of Operations at Duka Property Management and member of the Association of Condominium a recognized professional association (ACMO)
Table of Contents
Step 1: Document Specific Deficiencies
Before escalating anything, document the specific performance failures with dates and examples:
- Financial reports delivered late on these specific dates
- Board emails unanswered for this many days on these specific occasions
- Emergency on this date handled in this inadequate way
- Contractor payment delayed, causing this specific problem
- Expenditure made without board authorization on this date for this amount
Specificity is what makes a performance complaint actionable — and what makes a termination-for-cause claim defensible.
Step 2: Raise Issues Formally in Writing with the Management Company
Contact the management company — not just the assigned manager, but senior management or the company principal — with the documented list of deficiencies. Request a written response and a remediation plan with specific timelines.
Keep all communications in writing. The paper trail is your protection.
What a good response looks like: Acknowledgment of the specific issues, a described remediation plan with concrete timelines, and confirmation of what will change.
What a poor response looks like: Defensiveness, minimization of the issues, or vague promises without specific commitments.
Step 3: If the Company Doesn’t Respond Adequately
Review the management agreement for termination provisions
The agreement defines your options. Review:
- Termination for cause: Does the agreement allow termination for material breach? What constitutes material breach? Is there a cure period — a defined period for the management company to correct the deficiency after notice?
- Termination without cause: What notice is required? Are there financial penalties?
Consult the corporation’s condominium lawyer
Before terminating any management agreement, consult a condominium lawyer. The legal and financial implications of termination — particularly if there’s a dispute about whether cause exists — can be significant.
Step 4: File a Complaint with the CMRAO
If the performance failures involve potential regulatory violations — mishandling of trust funds, failure to maintain required documentation, unlicensed activity — file a complaint with the CMRAO (cmrao.Ca). The CMRAO has authority to investigate licensed management providers and take disciplinary action.
Grounds for a CMRAO complaint:
– Commingling of corporation funds with management company funds
– Failure to maintain required records
– Unlicensed management activity
– Misrepresentation to the board or owners
– Violations of the Condominium Management Services Act or CMRAO Code of Ethics
Step 5: Request a Different Manager
Before terminating the entire management agreement, consider whether the problem is with the assigned manager rather than the company. If the company has other qualified managers available, requesting a reassignment may resolve the issue without the disruption of a full management transition.
Most management companies will accommodate a reasonable request for manager reassignment rather than lose the contract.
Step 6: Initiate the Transition Process
If the relationship cannot be salvaged:
- Give formal written notice per the agreement’s termination provisions
- Engage a new management company — the transition timeline should overlap so the new manager can receive files before the old one leaves
- Request all corporation records from the outgoing company — all financial records, owner files, contracts, meeting minutes, correspondence, and any other corporation property
- Confirm return of all corporation funds held in trust
- Notify owners of the management change
Related Questions
- Questions to Ask a Property Management Company Before You Hire One
- How to Switch Property Management Companies
- Red Flags When Hiring a Property Management Company
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