A co-ownership facing financial difficulty is never an easy subject to tackle, but it is a reality for many condo syndicates in Quebec. Outstanding fees, postponed major repairs, underfunded contingency reserves, poor management, or lack of communication — the causes are numerous. Fortunately, there are concrete strategies to help restore financial health and ensure the long-term sustainability of the building.
- Assess the true financial situation :
Before anything else, it is essential to have a clear and accurate picture of the co-ownership’s finances. This involves:
- Auditing annual accounts and the current budget
- Analyzing expense and income categories
- Identifying debts, arrears, and the level of capitalization of the contingency fund
Seeking support from an external expert, such as a property manager or financial consultant/auditor, can be crucial at this stage.
- Involve the co-owners :
Recovery inevitably requires collective mobilization. It is therefore vital to:
- Organize special meetings to present the situation transparently
- Communicate clearly about the challenges and consequences.
- Create a climate of trust and shared responsibility
- Group discussions may lead to viable solutions, such as staggered payments or voluntary contributions to replenish the reserve fund.
- Optimize expenses and review existing contracts :
A thorough analysis of current contracts (maintenance, snow removal, insurance, etc.) can reveal significant savings potential. It may be wise to:
- Renegotiate with suppliers
- Pool services with nearby co-ownerships (group purchasing)
- Temporarily suspend non-essential expenditures (though this is not always advisable)
- Implement a gradual recovery plan :
Solving everything within a month isn’t realistic. A well-structured 2–5 year recovery plan can help:
- Gradually rebuild the contingency fund
- Schedule repairs based on urgency and impact
- Realistically rebalance the annual budget
This plan should be formally adopted in a general assembly and monitored closely.
- Consider financing options :
When needs are urgent and resources are limited, external financing may be necessary:
- A collective loan in the name of the co-ownership syndicate
- Individual credit options for co-owners
- Government grants or support programs
Again, professional guidance is essential to assess the most suitable financing solutions for your syndicate.
- Turn to external management if needed :
When governance is in crisis or the board of directors is understaffed, temporary external management by a firm such as Condo Stratégis can help get the co-ownership back on track. This short-term solution (even a one-year contract) can:
- Establish best practices.
- Clean up the finances and boost financial transparency.
- Support administrative and human reorganization.
In conclusion :
A financially struggling co-ownership is not a dead end. With a clear strategy, open communication, and the right support, it is entirely possible to restore the financial health and value of the building. Condo Stratégis supports condo syndicates in navigating this demanding but essential process — so that every co-owner can regain peace of mind.
Would you like to discuss your situation with an expert? Contact our team for a confidential consultation.