Gone are the days when condo fees were voted at the lowest possible rate! Bill 141 and Bill 16, passed last December, have upset the habits of a good number of co-owners and condominium syndicates, leading to an increase in fees..
Although the final details have yet to be worked out, within the next three years, unions will need to have adjusted their dues in line with these two laws, and for some, this will represent an increase of 50%. A necessary increase, but one that will certainly have its impact!
Seeing these laws coming, some condominium corporations have been making this shift naturally for some time now, and won't notice any difference since their dues have already been adjusted accordingly. But how did they get there? They planned and organized!
Payment automation becomes a necessity
Automated payments have become an essential part of managing condo fees. Like the mortgage, fees are deducted from the bank account on a fixed date, helping co-owners to organize and plan ahead. This makes it easier for administrators to manage fees, and dues can be easily adjusted without the need to request a new series of cheques.
But how will automation help with the new legal requirements for syndicates and their co-owners?
To keep things organized, syndicates can opt for a single levy that covers condo fees, self-insurance fund fees and the progressive increase related to the new legal provisions. They can also choose to separate the deductions over several dates during the month to spread out the financial burden on co-owners. In addition to creating a healthy payment habit, direct debits offer that payment flexibility that cheques don't, at least not without effort and the risk of getting lost!
The new laws are designed to improve the financial health of condominium syndicates and avoid the surprise of large special assessments, as we've already seen. However, despite the merits of these new provisions, for many co-owners, this will be a huge change. We might as well take advantage of the opportunity to introduce an automated payment system that will help both co-owners and boards of directors through the transition.
An informed union is an organized union! A visit to the payments.ca site, which governs payments in Canada, will provide you with a wealth of information on this simple and secure payment method. It's time to move into the era of digital payments. It's easier and cheaper than you think.
Think about it and get organized!
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