- February 26, 2025
- Posted by: @dmin
- Categories: Condo Community Issues, Condo Property Management Services
Like most industries, there are a lot of property management terms and definitions to keep track of. While some may be obvious, it’s understandable that you may sometimes need a refresher on what certain terms mean.
So, this article is a glossary of property management terminology. Please note that our glossary will be focused on terms that are relevant to the Canadian, specifically the Ontario, property management industry. We also will not cover rental or apartment-related terms.
General Property Management Terms and Definitions
Acting Manager
An acting manager temporarily oversees property operations when the regular manager is unavailable or during a transition period. They handle day-to-day management duties, including maintenance requests, coordinating with contractors, and addressing resident concerns.
Annual General Meeting (AGM)
An annual general meeting (AGM) is a mandatory yearly meeting for property owners to review financial reports, discuss property management updates, and elect board members. Owners can vote on critical decisions, such as budgets and major repairs, during the AGM.
Board of Directors
The board of directors consists of elected property owners responsible for managing the property corporation’s operations. They oversee budgets, enforce rules, and make decisions about common element maintenance and long-term planning.
Board Resolution
A board resolution is an official decision made by the board of directors. Resolutions may address policy changes, project approvals, or financial allocations. They serve as formal records of the board’s actions and provide transparency to property owners.
Bylaws
Bylaws are rules established by the property corporation to regulate behavior, property use, and management responsibilities. They govern aspects such as noise levels, pet restrictions, and the use of common elements. Owners and residents must adhere to these bylaws to maintain community standards.
Common Elements
Common elements refer to shared spaces and facilities within a property, such as hallways, lobbies, and recreational areas. These areas are jointly owned by all property owners and maintained through maintenance fees.
Common Area
Common areas are shared spaces within a property that all owners and residents can access, such as courtyards, hallways, and recreational rooms. They are maintained collectively and funded by maintenance fees.
Compliance Notice
A compliance notice is a formal notification sent to an owner or resident outlining a violation of property rules or bylaws. It typically includes a description of the infraction, required corrective actions, and a deadline. Compliance notices aim to maintain order and address issues without escalating to legal action.
Conflict Management
Conflict management involves resolving disputes between owners, residents, or the board of directors. Strategies may include mediation, open communication, or third-party intervention. Effective conflict resolution promotes harmony and prevents issues from escalating.
Declaration
A declaration is a legal document that defines the ownership structure, responsibilities, and division of property within a condominium or townhouse development. It outlines details such as common element boundaries and unit-specific obligations.
Director’s Liability Insurance
Director’s liability insurance protects board members from personal financial responsibility for decisions made in their official capacity. It covers legal costs and damages arising from claims of negligence or wrongful acts. This insurance ensures individuals can serve on the board without undue risk to their personal assets.
Disclosure Statement
A disclosure statement provides prospective buyers with detailed information about the property, including financial status, rules, and legal obligations. This document helps buyers make informed decisions before purchasing a unit.
Exclusive Use Common Elements
Exclusive use common elements are areas or facilities assigned to specific units but remain part of the common elements. Examples include assigned parking spaces, balconies, or storage lockers. Owners of these units have the right to use the space exclusively but must comply with property rules regarding maintenance and usage.
Eviction
Eviction is the legal removal of a resident or tenant from a property due to non-compliance with rules, non-payment, or other violations. It requires adherence to specific legal processes to protect the rights of both the property owner and the evicted party.
Fair Use Policy
A fair use policy outlines guidelines for equitable access to shared facilities and resources among owners and residents. It ensures that no individual or group monopolizes or misuses common areas.
Fee Schedule
A fee schedule details all charges property owners must pay, including maintenance fees, special assessments, and additional service costs. It provides transparency and helps owners plan their budgets. Fee schedules are typically reviewed and approved by the board of directors and communicated to owners.
Governing Authority
The governing authority includes entities responsible for the administration and oversight of the property, such as the board of directors and property management. They enforce rules, manage finances, and ensure compliance with legal obligations.
Investment Property
An investment property is a unit or building purchased primarily for financial gain through appreciation or income generation. Owners of investment properties may lease them out or hold them for future resale.
Maintenance Fees
Maintenance fees are regular payments collected from owners to cover the cost of managing common elements and shared services. These fees include expenses for cleaning, repairs, and utilities in shared areas.
Meeting Minutes
Meeting minutes are official records of discussions and decisions made during board or owner meetings. They include details about resolutions, votes, and updates shared with attendees. Accurate minutes provide transparency and serve as a reference for future decision-making.
Owner-Occupied Unit
An owner-occupied unit is a property used as a residence by its owner rather than being rented to others. Owner-occupancy often influences voting rights and eligibility to serve on the board of directors.
Policy Manual
A policy manual contains all governing policies, procedures, and operational guidelines for a property. It serves as a reference for board members, property managers, and residents. Clear and accessible policy manuals promote consistency and understanding within the community.
Proxy Form
A proxy form allows an owner to delegate their voting rights to another individual during meetings. This ensures representation when the owner cannot attend in person. Proxy forms are essential for meeting quorum requirements and facilitating decision-making.
Quorum
Quorum refers to the minimum number of participants required to conduct official business at a meeting. It ensures decisions reflect the collective interests of a significant portion of the community. Quorum requirements are usually specified in the property’s governing documents.
Shared Facilities Agreement
A shared facilities agreement defines the rights and responsibilities of multiple property corporations sharing amenities such as gyms or parking garages. It covers maintenance costs, usage rules, and dispute resolution procedures.
Tenant Screening
Tenant screening evaluates potential renters to determine their suitability for living in a property. This process may involve background checks, credit assessments, and reference verification.
Turnover Meeting
A turnover meeting occurs when control of the property transfers from the developer to the owners’ board of directors. It typically involves reviewing financials, property conditions, and operational procedures.
Vacancy Rate
Vacancy rate measures the percentage of unoccupied units within a property. A high vacancy rate may indicate market challenges or issues with property management. Tracking vacancy rates helps boards and managers plan strategies to attract and retain occupants.
Voting Threshold
A voting threshold is the minimum percentage or number of votes required to pass a resolution or make a decision during meetings. It ensures that decisions reflect a broad consensus among owners. Voting thresholds are often outlined in the property’s declaration or bylaws.
Commercial Property Management Terms
Assignment
An assignment occurs when a tenant transfers their entire lease interest to another party. The new tenant assumes all rights and obligations under the original lease. In Ontario, landlords typically require consent for assignments, and the original tenant may remain liable unless released by the landlord.
Build-Out
A build-out refers to the customization or improvement of a commercial space to meet a tenant’s specific needs. This process can include installing partitions, lighting, or specialized equipment. The lease agreement should specify who bears the cost and ownership of these improvements.
Commercial Real Estate
This term encompasses properties used exclusively for business purposes, such as offices, retail spaces, and industrial facilities. In Ontario, commercial real estate transactions are governed by provincial laws and regulations, including zoning bylaws and the Commercial Tenancies Act.
Commercial Tenancies Act
The Commercial Tenancies Act is a key piece of legislation in Ontario that governs the relationship between landlords and tenants of commercial properties. It outlines the rights and obligations of both parties, including provisions on lease agreements, disputes, eviction procedures, and remedies for breach of contract.
Common Area Maintenance (CAM)
Common area maintenance (CAM) charges are fees tenants pay to cover the maintenance of shared areas in a commercial property, like lobbies, hallways, and parking lots. These costs are typically apportioned among tenants based on their leased space.
Estoppel Certificate
An estoppel certificate is a signed statement by a tenant confirming the current status of their lease. Landlords or potential buyers may request this document to verify lease details and tenant compliance.
Net Lease
In a net lease, the tenant pays base rent plus some or all property expenses, such as taxes, insurance, and maintenance. This structure shifts certain financial responsibilities from the landlord to the tenant. The specific expenses covered depend on the lease terms.
Triple Net Lease (NNN)
A triple net lease requires the tenant to pay base rent along with all three primary property expenses: taxes, insurance, and maintenance. This arrangement places the majority of financial obligations on the tenant, while the landlord remains responsible for structural repairs.
Gross Lease
Under a gross lease, the tenant pays a fixed rent, and the landlord covers all property expenses, including taxes, insurance, and maintenance. This simplifies budgeting for tenants, as they are not responsible for variable operating costs.
Load Factor
The load factor is a ratio that combines a tenant’s usable square footage with a portion of the building’s common areas. It determines the rentable square footage and affects the tenant’s share of building expenses.
Tenant Improvement Allowance (TIA)
Tenant improvement allowance (TIA) is a sum provided by the landlord to the tenant for customizing the leased space to suit their business needs. The allowance amount and usage terms are negotiated in the lease agreement.
Usable Square Footage (USF)
Usable square footage (USF) refers to the actual area a tenant can use exclusively within their leased premises. It excludes common areas like lobbies and restrooms. Accurately calculating USF helps tenants determine if a space meets their operational requirements.
Property Management Financial Terms
Arrears
Arrears refer to overdue payments that a property owner, tenant, or corporation owes, such as maintenance fees, property taxes, or other financial obligations. They indicate non-compliance with payment terms outlined in the lease or property agreement.
Audited Financial Statements
Audited financial statements are detailed reports of a property’s financial activities that have been reviewed and verified by a licensed accountant. These statements provide transparency and ensure accuracy in reporting income, expenses, and reserve fund balances.
Budget
A budget is a financial plan outlining expected income and expenses for a property over a specific period, typically one fiscal year. It includes estimates for operating costs, capital expenditures, and reserve contributions.
Budget Surplus
A budget surplus occurs when actual income exceeds expenses within a given fiscal period. The surplus can be used to reduce future fees, enhance reserve funds, or address unplanned expenses.
Operating Budget
An operating budget details the regular, recurring expenses necessary to manage a property, such as utilities, maintenance, and staff wages. It excludes capital expenditures, which are planned separately.
Capital Improvement
Capital improvement refers to major upgrades or additions to a property that enhance its value or extend its useful life. Examples include replacing a roof, upgrading HVAC systems, or installing new elevators. These improvements are often funded through reserve funds or special assessments.
Capital Expenditures (CapEx)
CapEx includes significant, long-term investments in property infrastructure or major repairs, such as structural upgrades or equipment replacements. These costs are typically planned in advance and funded through reserve contributions.
Emergency Fund
An emergency fund is a reserve of money set aside to cover unexpected expenses, such as urgent repairs or unanticipated legal costs. Maintaining an emergency fund helps property managers address unforeseen issues without impacting the operating budget or requiring special assessments.
Insurance Deductible
An insurance deductible is the amount the property owner or corporation must pay out-of-pocket before an insurance policy covers a claim. Higher deductibles typically result in lower premium costs but may increase financial risk in the event of a claim.
Operating Expenses
Operating expenses are the day-to-day costs of managing a property, such as utilities, landscaping, and cleaning services. These expenses are typically covered by maintenance fees or tenant payments.
Property Taxes
Property taxes are government-imposed levies based on the assessed value of the property. They are a significant recurring expense for property owners and are typically included in the budget. Timely payment of property taxes is essential to avoid penalties.
Reserve Fund
A reserve fund is a dedicated account used to finance significant repairs or replacements of common elements, such as roofs, windows, or parking lots. Contributions to the reserve fund are collected regularly from property owners to ensure sufficient funding for future projects.
Reserve Fund Study
A reserve fund study is a detailed assessment conducted to evaluate the long-term repair and replacement needs of a property’s common elements. It includes cost estimates and recommendations for reserve fund contributions to meet future financial obligations. In Ontario, condominiums must complete a reserve fund study every 3 years to comply with regulations.
Special Assessment
A special assessment is an additional charge levied on property owners to fund unexpected or large-scale expenses not covered by the operating budget or reserve fund. These assessments are typically approved by the board of directors and may require a vote by owners.
Warranty Coverage
Warranty coverage protects property owners or corporations from defects or issues with materials and workmanship in new construction or major renovations. It typically includes specific terms and time limits, such as coverage for structural defects for several years.
Market Rate
Market rate refers to the current standard price for comparable properties or services in a specific area. It is often used to set fees, rent, or sale prices to remain competitive in the market.
Property Management Accounting Terms
Reserve Fund Accounting
Reserve fund accounting involves tracking contributions, withdrawals, and balances in a dedicated account for long-term repairs and replacements of common elements. Regular updates to reserve fund accounts help property managers prepare for future expenses.
Special Assessment Allocation
Special assessment allocation refers to dividing the total amount of a special assessment among property owners, often based on their proportionate ownership or unit factors. This allocation ensures fairness and consistency in collecting funds for unplanned expenses or large projects.
Common Expenses Ledger
The common expenses ledger tracks all costs shared among property owners, such as maintenance, utilities, and property management fees. It provides a detailed breakdown of income and expenses, ensuring accurate financial reporting.
Owner Arrears Tracking
Owner arrears tracking monitors overdue payments from property owners, including maintenance fees or special assessments. This process helps property managers identify delinquent accounts and take appropriate action, such as issuing reminders or pursuing legal remedies.
Condominium Budget Reconciliation
Condominium budget reconciliation is the process of comparing actual income and expenses against the projected budget for a specific period. This process identifies variances, allowing property managers to adjust future budgets or address discrepancies.
Audited Financial Statements
Audited financial statements provide an independent review of a property’s financial records, verifying their accuracy and compliance with accounting standards. These statements typically include income, expenses, reserve fund balances, and outstanding liabilities.
Fiscal Year
The fiscal year is a 12-month accounting period used for financial reporting and budgeting. It may not align with the calendar year but is chosen to suit the organization’s operational and reporting needs.
Maintenance Fee Breakdown
A maintenance fee breakdown details how collected fees are allocated to cover operational expenses, reserve fund contributions, and other costs. This breakdown helps property owners understand how their payments are used to maintain the property.
Deficiency Report Adjustments
Deficiency report adjustments involve updating financial records to account for the costs of addressing issues identified in a property’s deficiency report. These adjustments may include repair costs, warranty claims, or reallocation of funds.
Reserve Fund Study Projections
Reserve fund study projections estimate future repair and replacement costs for common elements, helping determine required contributions to the reserve fund. These projections are based on a detailed analysis of the property’s condition, expected lifespan of components, and inflation rates.
Property Management Technology Terms
Access Control Systems
Access control systems manage and monitor entry to buildings or specific areas, using technologies such as key cards, fobs, biometric scanners, or mobile apps. These systems enhance security and provide detailed logs of access events for property managers.
Automated Messaging Systems
Automated messaging systems send scheduled or triggered notifications to tenants or owners via email, SMS, or mobile apps. These systems improve communication efficiency by providing updates on maintenance, meetings, or emergencies.
Cloud Computing
Cloud computing allows property managers to store, access, and manage data online instead of using physical servers or local devices. It facilitates real-time collaboration, remote access to property management systems, and secure data backups.
Maintenance Management Systems
Maintenance management systems track, schedule, and coordinate property repairs and preventive maintenance. These systems streamline work orders, vendor management, and progress tracking, ensuring timely issue resolution.
Property Management Software
Property management software is a digital platform that centralizes tasks such as financial tracking, lease management, maintenance coordination, and communication. It simplifies operations by automating routine tasks and providing a single interface for managing multiple properties.
Smart Home Technology
Smart home technology includes devices and systems that enhance building automation, such as smart thermostats, lighting, and security cameras. These technologies improve energy efficiency, convenience, and security for tenants and owners.
Tenant Portal
A tenant portal is an online platform where tenants can access information, submit maintenance requests, and make payments. It provides a convenient, self-service option for managing tenant interactions and resolving issues.
Virtual Meetings
Virtual meetings use video conferencing tools to facilitate communication among property managers, board members, and owners. They allow participants to discuss budgets, projects, and governance issues remotely, reducing the need for in-person gatherings.
Virtual Tours
Virtual tours provide digital walkthroughs of properties using 360-degree imaging or video, allowing prospective buyers or tenants to explore spaces remotely. These tours save time and enable decision-making without requiring physical visits.
Property Management Legal Terms
Amendment
An amendment refers to a formal change or addition made to legal documents such as bylaws, declarations, or rules governing a property. In Ontario, implementing an amendment typically requires approval from a specified percentage of property owners.
Appeals Process
The appeals process allows property owners to formally challenge decisions made by the board or property management. Owners must follow established procedures, often including submitting documentation or attending hearings, to present their case.
Chargeback
A chargeback occurs when the cost of repairing damage or rectifying a rule violation is billed directly to the responsible unit owner. In Ontario, the Condominium Act permits such charges if the owner is responsible for the damage or violation.
Conflict of Interest
A conflict of interest arises when a board member or property manager’s personal interests could improperly influence their official duties. In Ontario, the Condominium Act requires directors to disclose any conflicts and abstain from related decision-making.
Dispute Resolution
Dispute resolution encompasses methods used to address conflicts between property owners, residents, or the board. The Condominium Authority Tribunal (CAT) offers an online platform for resolving certain disputes. Alternative methods like mediation or arbitration may also be employed, depending on the issue.
Fiduciary Duty
Fiduciary duty is the legal obligation of board members to act in the best interests of the property corporation and its owners. This includes duties of care, loyalty, and obedience, requiring directors to make informed decisions, avoid conflicts of interest, and adhere to governing documents and laws.
Indemnity Clause
An indemnity clause in property management agreements protects one party from financial loss or liability caused by the actions or negligence of another party. Such clauses are common in contracts between property corporations and service providers.
Lien
A lien is a legal claim against a property for unpaid debts, such as overdue maintenance fees or special assessments. In Ontario, the Condominium Act allows corporations to place a lien on a unit if the owner defaults on payments.
Rules
Rules are regulations established by the property corporation to govern the use of units and common elements, ensuring safety, security, and the welfare of all residents. Unlike bylaws, rules do not require a vote by the majority of owners but must be circulated to owners, who have 30 days to object.
Tenant Rights and Responsibilities
In Ontario, tenants have the right to live in safe, well-maintained homes without facing discrimination or harassment. However, they must pay fees on time, keep their units clean, and respect the property and neighbors. Both landlords and tenants should understand their rights and duties to maintain a positive experience.
Tenant rights and responsibilities are legally binding under the Residential Tenancies Act, 2006. This law outlines the obligations of both landlords and tenants, and is enforceable through the Landlord and Tenant Board.
The Housing Services Act, 2011 (HSA)
The Housing Services Act, 2011 (HSA) is an Ontario law that sets the framework for delivering housing and homelessness services across the province. Property managers working with subsidized or social housing must adhere to the guidelines and responsibilities outlined by local service managers under the housing act.
Condo Management Terms
Assessment Review Board (ARB)
The Assessment Review Board (ARB) is an independent tribunal in Ontario that hears appeals related to property assessments and classifications. Condo corporations or unit owners may approach the ARB if they believe their property tax assessments are inaccurate. The ARB’s decisions can impact the taxes paid by individual owners or the corporation.
Condominium Authority of Ontario (CAO)
The Condominium Authority of Ontario (CAO) is a non-profit organization established in 2017 to support condominium communities across the province. It provides information, education, and dispute resolution services to condo owners, residents, and boards.
Condominium Authority Tribunal (CAT)
The Condominium Authority Tribunal (CAT) is Ontario’s online platform for resolving condominium-related disputes. It offers a cost-effective and efficient alternative to traditional court proceedings. CAT handles issues such as records access, noise complaints, and other nuisances within condo communities and is managed by the CAO.
Condominium Management Regulatory Authority of Ontario (CMRAO)
The Condominium Management Regulatory Authority of Ontario (CMRAO) licenses and regulates condominium managers and management companies in Ontario. Established in 2017 under the Condominium Management Services Act, 2015, it ensures that managers meet specific education and experience standards. The CMRAO also enforces a Code of Ethics and handles complaints to protect condominium owners and residents.
Condo Board
The condo board is an elected group of unit owners responsible for overseeing the management of a condominium corporation. Their duties include enforcing bylaws, managing finances, approving budgets, and maintaining common elements.
Condo Bylaws
Condo bylaws govern the administrative framework of the condominium, detailing how the condo corporation operates. They cover topics such as board elections, meeting procedures, and financial management. Changes to bylaws require approval by a majority of unit owners and must comply with the Condominium Act, 1998.
Condo Fees
Condo fees are monthly payments made by unit owners to cover the costs of maintaining and managing the condominium. These fees typically include contributions to the reserve fund, operating expenses, and utilities for common areas. Fees are calculated based on unit factors or the size of each unit relative to the building.
Condo Governance
Condo governance refers to the systems and processes used to manage and operate a condominium corporation. It involves the condo board, property management, and owners working together within the framework of the Condominium Act, bylaws, and rules.
Governance Documents
Governance documents are the legal and operational guidelines for a condominium corporation. They include the declaration, bylaws, rules, and policies that outline the rights and responsibilities of unit owners, the board, and management.
Performance Audit
A performance audit is an evaluation of the condition and performance of a newly constructed condominium. It identifies construction deficiencies and helps determine whether the developer has met warranty obligations. In Ontario, this audit is often conducted within the first year of the condominium’s registration and is critical for warranty claims.
Post-Tension Cables
Post-tension cables are steel tendons used in concrete construction to reinforce and improve structural strength. In condominium buildings, they are often used in parking structures or large concrete slabs.
Status Certificate
A status certificate is a legal document providing detailed information about the financial and legal standing of a condominium unit and corporation. It includes details on condo fees, reserve funds, legal disputes, and unit-specific matters. In Ontario, it is a mandatory document when purchasing a condo unit.
Unit Factor
Unit factor represents the proportional ownership interest of each unit in a condominium corporation. It is used to determine an owner’s share of condo fees, voting rights, and financial responsibilities. Unit factors are typically assigned based on unit size, location, or other criteria outlined in the condo declaration.
Townhouse Property Management Terms
Back-to-Back Townhouse
A back-to-back townhouse is a type of townhouse where units share both rear and side walls with neighboring units, leaving only the front side exposed. These properties typically lack private backyards but may include small front yards or balconies.
Corner Townhouse
A corner townhouse is an end unit in a row of townhouses that has additional side exposure, often resulting in more windows, natural light, and outdoor space. These units are typically more desirable and may command higher prices due to their enhanced privacy and unique layout.
Community Rules and Regulations
Community rules and regulations outline the expected behavior and property use standards for residents within a townhouse community. These rules may cover issues such as parking, landscaping, noise levels, and the use of shared spaces.
Freehold Townhouse
A freehold townhouse is a property where the owner has full ownership of both the unit and the land it sits on. Unlike condos, freehold townhouses are not subject to condo fees or shared governance structures, but owners are solely responsible for maintenance and repairs.
Townhouse Association
A townhouse association is a governing body that manages shared responsibilities and enforces rules in a townhouse community. This may include maintenance of common areas, snow removal, and landscaping. Associations are typically funded by monthly fees collected from property owners.
Townhouse Association Meetings
Townhouse association meetings provide a forum for owners to discuss and vote on community matters, review budgets, and address issues such as rule enforcement or upcoming projects. These meetings are often held regularly and are open to all association members.
Townhouse Bylaws
Townhouse bylaws are legal documents that establish the governance structure of the townhouse association. They define the roles and responsibilities of the board, procedures for meetings, and rules for financial management. Bylaws are binding on all property owners and are critical for effective community management.
Row Townhouse
A row townhouse refers to a series of units connected side-by-side, sharing walls but typically having individual front and rear entrances. These homes provide a balance of affordability and privacy, with some shared responsibilities for common areas.
Stacked Townhouse
A stacked townhouse is a multi-level unit that shares a building with other vertically arranged units, creating a layered structure. Each unit has its own entrance, but with shared walls and limited outdoor space. Stacked townhouses are popular in urban areas for their space efficiency and affordability.
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