Financial management

The administration of a syndicate of co-owners requires financial expertise, which is vital for the proper functioning of the co-ownership. In collaboration with the board of directors, the condo manager ensures budgetary balance and financial management which includes budget preparation, account management, and the distribution of common expenses (condo fees); he also plays an essential role in treasury management handling bank transactions, investments in contingency and self-insurance funds as well as bill payments. Additionally, the manager is responsible for managing debtor and creditor accounts; these tasks are essential to ensure smooth and transparent financial management within the immovable.

Accounting

One of the manager's tasks is to keep up to date the accounting of the syndicate of co-owners; thus, he could be called upon to:

Cash flow management

As part of its managerial tasks, the manager may be required to:

Management of the expenses

As part of its tasks related to the management of the expenses, the manager may need to:

  • proceed to the allocation of expenses between the different co-owners;
  • prepare and send notices of assessment, that is to say the requests for payment of the common expenses (condo fees) to the co-owners;
  • oversee the collection of the common expenses;
  • manage the accounts payables and the accounts receivables;
  • send reminder letters for the payment of amounts owed to the syndicate.

 

WHAT YOU SHOULD KNOW!​ The financial management of a co-ownership is a delicate and often a complex task; it requires rigorous accounting and therefore, it is in the directors' best interest to retain the services of a financially competent manager.

https://www.condolegal.com/images/Boutons_encadres/A_retenir.pngWHAT TO KEEP IN MIND: A manager must have a wide range of technical skills with a great deal of experience; he must have extensive knowledge of the operation of an accounting service, an understanding of the various software packages available on the market, a great experience in terms of efficiency as well as excellent communication skills.

WARNING! Some management companies intermingle within the same account the money belonging to many syndicates of co-owners' for which they work; this practice could be harmful to the syndicate’s financial assets and so, it's important to ensure that the manager doesn't advocate this method as it could result in extremely serious financial losses.

 

Back to the sub-factsheet: Functions of the manager