Many new condo owners are unaware a condominium is technically a corporation. And, like any corporation, it has revenue, expenses, employees and, most importantly, a board of directors that makes decisions on behalf of the owners.

Buying a unit in a condo building essentially means an owner is purchasing shares in its corporation and, therefore, is eligible to join its board. A standard board of directors consists of five volunteers that are elected at the condominium’s annual general meeting. All owners are entitled to vote, in person or by proxy if they cannot attend the meeting.

Like most corporations, the success or failure of the business is largely in the hands of its board. Good decisions and business practices lead to lower maintenance fees and higher property values, while bad practices can result in higher fees, fewer services, special assessments and frequent problems with amenities.

However, unlike other corporations, a condo corporation elects volunteers with no prerequisite experience to its board. As a result, it’s important that unit owners pick the right people for the job, especially since the corporation’s multi-million dollar budget is in the hands of volunteers.

While it’s impossible to be fully certain that a person is right for the board, there are three key criteria owners should consider: motivation, experience and goals.

1. Motivation
It’s important to ascertain why a condo resident is interested in sitting on a building’s board. Be sure to ask the candidate specific questions. The most effective board members are those with a genuine desire to improve their living space and protect their investment. The least effective are those who simply want to be in charge.

2. Experience
Even if running for the right reasons, the candidate may be a liability if elected due to inexperience. Business experience is an obvious asset but experience working in a team setting is also of value. While the corporation will likely hire a management company to handle many of its operations, it’s still the responsibility of the board to oversee the management company’s work and make sure the corporation’s finances stay on track.

3. Goals
Owners should make sure the candidate’s goals are specific and achievable. A candidate trying to get elected to the board to “build a better community” with no realistic thoughts on how to do so may not be the right person for the job. The candidate should be able to explain the reasoning behind and how to accomplish their goals.

Eric Plant is a director at Brilliant Property Management Inc. He can be reached at eric@brilliantproperty.ca.