So If Low-Cost Condo Management for Small Condos Is Fading, What Comes Next?

For years, small condominium corporations in Ontario — buildings with fewer than 50 units — could find management services at relatively low cost. Some management companies specialized in small buildings, offering basic services at prices that small corporations could afford.

That model is under pressure.

Why Low-Cost Management Is Getting Harder to Find

Licensing costs. The CMRAO licensing regime has increased the cost of operating a management company. These costs are passed on to clients. Small corporations that were previously served by unlicensed or minimally compliant providers now need to pay for licensed management.

Manager shortage. Ontario doesn't have enough licensed managers to meet demand. Managers who can choose their clients are choosing larger buildings where the economics are better.

Regulatory complexity. The requirements placed on condominium corporations — reserve fund studies, financial reporting, AGM procedures, records management — have increased. Managing a small corporation properly takes more time than it used to.

Insurance and liability. Management companies face increasing insurance costs and liability exposure. These costs are reflected in their fees.

What Small Corporations Can Do

Understand what you actually need. Not every small corporation needs full-service management. Some need financial management and compliance support but can handle day-to-day operations themselves. Knowing what you need helps you find the right provider.

Consider self-management carefully. Some small corporations manage themselves. This can work, but it requires directors who are willing to invest significant time and who understand their legal obligations. The risks of non-compliance are real.

Look for providers who specialize in small buildings. They exist, though they're harder to find. A provider who understands the economics of small buildings and has built their service model accordingly is a better fit than a large company trying to adapt.

Invest in board education. Well-educated boards make better decisions and require less hand-holding from their management provider. This can reduce costs.

The economics of small condo management are changing. Corporations that adapt thoughtfully will find solutions. Those that expect the old model to continue may be disappointed.