In a vibrant city like Calgary, managing condominiums and residential communities is a complex responsibility. It’s not enough to just focus on buildings or maintenance today’s professional property managers need to focus on legal compliance, community relations, record-keeping, and ethical behavior.
Based on Parterre Property Services Inc.’s experience, we have seen many property managers unknowingly fall into legal pitfalls. These mistakes not only create legal trouble, but also erode trust the most important factor in any successful community.
In this detailed article, we will discuss the top 10 common legal mistakes that property managers should avoid and share best practices that will make you a responsible and legally sound property manager.
It is almost impossible to manage a condominium without Alberta’s Condominium Property Act. This Act clearly defines what rights and responsibilities the property manager and condo board have.
Common mistake: Sometimes property managers unknowingly violate bylaws such as unauthorized rule enforcement or making major decisions without board approval.
A manager enforced a no-pet policy without board consultation. Later, residents filed a complaint, and had to take legal action.
Best Practice:
- Every property manager should read the Act in detail.
- It is important to attend regular training and legal updates.
- Periodic consultation with legal advisors is also helpful.
Lack of proper understanding of the Condominium Property Act of Alberta
It is almost impossible to manage a condominium without Alberta’s Condominium Property Act. This Act clearly defines what rights and responsibilities the property manager and condo board have.
Common mistake: Sometimes property managers unknowingly violate bylaws such as unauthorized rule enforcement or making major decisions without board approval.
A manager enforced a no-pet policy without board consultation. Later, residents filed a complaint, and had to take legal action.
Best Practice:
- Every property manager should read the Act in detail.
- It is important to attend regular training and legal updates.
- Periodic consultation with legal advisors is also helpful.
Incomplete or Unorganized Record Keeping
Having records is important not just for reference, but also for legal protection. Whether it’s financial transactions, meeting minutes, vendor contracts, or complaint logs accurate and timely documentation of all is critical.
Real-life impact:
If records are not available when there is a dispute, your credibility comes into question and a weak position is created in court.
Best Practice:
Use a cloud-based record management system.
Store financial records securely for a minimum of 7 years.
Properly log every interaction big or small.
Poor Communication with Owners & Residents
A successful property manager is one who communicates transparently and timely. Lack of updates, missed notifications, or ignoring residents’ complaints can lead to direct legal hassles.
Example:
Residents did not receive notice of fire alarm inspection, and when technicians arrived, some denied entry. Result unnecessary delays and loss of trust.
Best Practice:
Diversify communication channels: emails, SMS alerts, printed notices, community portal etc.
Maintain transparency with monthly newsletters or circulars.
Define complaint-response time policy.
Violation of Privacy Laws (PIPA Compliance)
Under PIPA (Personal Information Protection Act), every property manager has to securely handle residents’ personal data such as contact details, payment history, access codes.
Common mistake:
Maintaining owner lists in unprotected Excel sheets, or giving access to unauthorized persons.
Best Practice:
Use data encryption and password-protected platforms.
Implement limited access policies on a “Need to Know” basis.
Providing privacy training to the team is a must.
Inconsistent Enforcement of Bylaws
Condominium bylaws should be equal for every resident. If selective enforcement is done such as warning one resident and fine another a discrimination claim can be made.
Example:
A fine was imposed on a resident’s guest parking violation, but a warning was given to another. Result complaint and investigation.
Best Practice:
Create a written protocol for bylaw enforcement.
Document each incident with date, time, evidence.
Seek prior approval from the Board before imposing fines or notices.
Lack of Due Diligence in Vendor Contracts
Agreements with vendors such as maintenance contractors, cleaners, landscapers, etc. should be properly drafted otherwise there could be performance issues or liability risks.
Not including liability clauses or insurance requirements in the contract.
Best Practice:
Get proof of valid liability insurance from vendors.
Clearly mention performance timelines and penalties.
Get contract review done through legal team.
Mishandling of Reserve Funds
Reserve funds are set aside for long-term capital repairs and replacements. Under Alberta law, misusing these funds—whether for minor repairs, operating costs, or unauthorized expenditures—can lead to legal scrutiny.
An inexperienced or careless property manager might use reserve funds to cover short-term budget shortfalls, thinking it’s a harmless decision. However, doing so without a formal reserve fund study or proper authorization violates legal protocols.
To prevent this, Edmonton property management professionals should coordinate with engineering consultants to schedule regular reserve fund studies and align all fund usage with the reserve plan approved by the condominium board.
Ignoring Owner Complaints or Disputes
Property managers are often the first point of contact for owner concerns or complaints. Ignoring or inadequately addressing complaints—especially when they involve legal or safety issues—can escalate into legal liability.
For example, repeated noise complaints or allegations of harassment that go unaddressed may expose the board and manager to potential lawsuits. Moreover, a manager who appears dismissive may be perceived as acting in bad faith.
An experienced condominium manager treats every resident communication with the seriousness it deserves. Prompt investigation, documentation of outcomes, and involving legal counsel when necessary are essential to maintaining legal protection and resident trust.
Failing to Maintain Confidentiality and Data Protection
With access to sensitive information such as owner contact details, legal documents, and financial records, property managers carry a significant responsibility in protecting confidentiality.
Any breach—intentional or accidental—can lead to privacy complaints or legal action under Alberta’s Personal Information Protection Act (PIPA).
Edmonton property management professionals must ensure that access to private data is restricted, digital platforms are secure, and team members are trained in confidentiality protocols.
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Conclusion
Avoiding legal pitfalls is one of the most important elements of successful condominium management. As Edmonton continues to grow and evolve, property managers must rise to meet the expectations of transparency, legal knowledge, and proactive leadership.
Whether it’s understanding bylaw enforcement, managing financial reporting, or navigating legislative changes, every detail count. By prioritizing legal compliance, ethical behavior, and ongoing education, property managers not only protect themselves and the boards they serve—but they also contribute to safer, more harmonious communities throughout Edmonton.
