Legal

January 6, 2025 Published by British Columbia Chapter - By Deborah Knott

Critical Mistakes Your Strata Council Can't Afford to Make

From CCI BC Strata Connection Magazine, Volume 03, Fall/Winter 2024

Anyone who’s ever served as a member of their Stata Corporation’s respective Council knows it’s no walk in the park. Volunteering your time and energy as a Strata Council member is a commendable endeavour. However, just because your Strata Council has the best of intentions, doesn’t mean that they’re immune to mistakes, errors and pitfalls. So, what critical mistakes can your Strata Council not afford to make – and what can be done to fix them if they happen?

Mistake #1: Not fully understanding the Strata Property Act

The Strata Property Act, which first came into action in 1998, is the cornerstone of all strata activity in British Columbia. Understanding and properly executing this legislation is crucial for Strata Councils. However, many councils struggle with this.

“I’ve often had to guide Councils that are trying to enforce bylaws or fines for infractions that the Strata Corporation doesn’t have a bylaw in place. They get frustrated when I tell them they can’t enforce a fine unless allowed under the Strata Property Act or their bylaws. I work with my Councils and encourage them to understand their bylaws or lack of, and that they’re governed by the SPA which is a legal entity that we must follow.” – Lana P, Strata Manager 

This kind of mistake can have real implications for any Strata Council: in June 2024, the B.C. Civil Resolution Tribunal penalized a Strata Council in Burnaby for trying to enforce fines for bylaws that didn’t even exist during the time of an alleged infraction.

Reading bylaws and understanding the fundamentals of the Strata Property Act can be challenging. With complex jargon and lengthy documentation, it can feel daunting for a volunteer Strata Council member to sift through all this material.

Your experienced property manager can help Council understand where their authority starts and stops in their community, and provide guidance on Corporation documents including when best to seek the advice of a lawyer. Licensed property managers should be well-versed on any changes to the Strata Property Act as well as other legal mandates Strata Corporations must follow. Take it one step at a time: build your fundamental knowledge of Strata Bylaws first and grow your knowledge from there.

This kind of mistake can have real implications for any Strata Council: in June 2024, the B.C. Civil Resolution Tribunal penalized a Strata Council in Burnaby for trying to enforce fines for bylaws that didn’t even exist during the time of an alleged infraction.  

Mistake #2: Coming Unprepared to Council Meetings

Another common Strata Council mistake? Not coming prepared to Council meetings. Whether it’s a scheduled meeting with a Strata Manager or an informal internal meeting, these are meant to foster meaningful dialogue that will lead to key decision-making and action items. It is not the time to read the meeting agenda for the very first time.  

“Common mistakes made by the Council include not reading the agenda, coming  unprepared for meetings and failing to prioritize directives and focus on the most relevant  topics,” – Melvin, Strata Manager 

There’s no shortcut to avoiding this critical Strata Council error; the solution is simple: come prepared. Reading a meeting agenda may not be as exciting as the latest New York Times bestselling novel. Focus on the key components of the agenda and prioritize accordingly. If winter is approaching, for instance, the snow removal quote is more important at that moment than the spring bike audit.

Another option? Consider assigning designated committee members within your Council to help divide up the work: one member could be responsible for mechanical issues, one for landscaping, and so on.

Councils should decide how far in advance the meeting agenda is to be circulated so that everyone is informed and prepared. If you have a Strata Manager, coordinate with them to determine a fitting timeline. Finally, keep in mind that if your manager is waiting on documents from contractors or other parties involved, you may not always have a complete agenda beforehand.

Mistake #3: Being Ractive, Not Proactive

Unfortunately, when some Strata Councils are asked how their day is going, they respond with "You know, we just put out fires...". This is a consequence of a reactive approach, which can lead to more significant issues down the line. By adopting a proactive approach and, in most cases, working with an experienced manager, these challenges can be effectively managed and even prevented. Running a Strata Corporation can feel like you’re a juggler with far too many balls than you can manage. How do you decide which ones to catch first?  

“It ends up costing Strata Corporations a lot of extra money, rather than putting in the time upfront to investigate where possible, they wind up cleaning up a mess. However, the other flip side of that is overkill or taking too long to make decisions.” – Michella, Strata Manager 

So how does a Strata Council shift their thinking from being ‘reactive’ to ‘proactive’? It’s all about looking ahead. Depreciation reports can serve as a valuable resource and potential road map into future capital improvement projects, such as re-piping, window replacements, and exterior painting.

Regularly engaging with the community, through action items such as surveys and town halls, can also help ensure that your Strata Council is attuned to the Strata Corporation’s needs – both current and future.  

Mistake #4: Not Trusting Each Other

Some might consider this the most dangerous of Strata governance pitfalls - lack of trust amongst fellow Council members. This issue can severely undermine the functionality of the Council.  

 “Councils begin to develop trust issues, for various reasons: misinformation within the industry, personal issues, differing priorities and agendas, and so on. This lack of trust ultimately erodes Council relationships amongst not only each other, but with the Owners, their manager, and various trades and contractors employed by the Strata Corporation.” – Michella, Strata Manager 

Distrust can lead to serious consequences for Strata Corporations, such as poor record keeping, secrecy, and lack of transparency. It can also result in the disclosure of confidential or sensitive information and, perhaps worst of all, a dysfunctional Strata Council where members act on personal agendas and fail to meet regularly.

The best way to combat this problem? Good ole' fashioned communication. A successful Strata Council prioritizes strong and effective communication skills, continuously makes efforts to listen to each other, and is always transparent.

It’s also vital to bring empathy to the table. Councils who seek to understand each other better - their opinions, perspectives, motivations and strengths – will be better positioned to work effectively with each other.

You might not always agree with each other’s votes at a Council Meeting. If a Council majority votes in one way, respect it and stand with the decision. Upholding the integrity of the democratic process can go a long way.

Always a Learning Opportunity

Mistakes happen. But no fear – mistakes can also serve as learning opportunities. Experienced property management companies can help Strata Corporation members not just succeed, but excel in their roles.  

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Deborah Knott
Tribe Management

Deborah Knott has worked in the industry for more than 10 years with Tribe Management and formerly Gateway Property Management.