Property management

What was   he       thinking?   

 

Strata Management Services       Rob Kelly
Information on
ARDENT PROPERTY MANAGEMENT, Nanaimo, BC
Property Agents, providing Strata Management Services
Property Agent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

Property Management
Rob Kelly's inability to correctly interpret the Strata Property Act as it related to our Bylaws and disregard for any other opinions cost our strata almost $5,000 in unnecessary expenses and created undue dissention between the owners.  It may take some time to get back the harmony that existed prior to this problem.

Our Strata Corporation is Creekside Village, located in Chemainus, BC.   Creekside Village  is a phased strata development consisting of 42 apartment type units located in Buildings A and B and 7 townhouse units contained in Building C.  A Types Bylaw was adopted by the owners and registered in Land Title Office on September 16, 1996, and expenses were allocated by type accordingly from September 1996 to December 2006.

The problems actually began in January 2007 when our Strata Manager (Cascade) left the Strata Management business and Creekside Village engaged Westcoast Strata Management to replace Cascade.  Westcoast Agent, Greg Purkis, arbitrarily decided the Types Bylaw of Creekside was invalid and that operating expenses could not be allocated by type but had to be allocated to each strata lot based strictly on unit entitlement..

NOTE: The Types Bylaw was drafted by legal counsel for the Strata Corporation.

The Strata Council in place at that time and the townhouse owners disputed this position and the allocation of expenses by unit entitlement imposed by Greg Purkis of Westcoast.  Greg Purkis eventually tired of fighting the opposition and resigned in the second year because he said,  "We feel that we will never to come to an agreement that is satisfactory to both our company and the owners of C building units. " (See quotes).

Creekside Village then entered into a contract with Ardent Property Management because during Rob Kelly's interview at the management selection process, he gave the impression that he would develop solutions to resolve the dispute.  Instead, after acceptance of his contract, Rob Kelly followed the lead of Westcoast and said the way the expenses were allocated prior to Westcoast was illegal.  The Council Members found themselves again in dispute and some of them resigned in frustration.  Others succumbed and gave in to him.  Rob Kelly continued to resist solutions proposed by the townhouse owners and others. This resulted in the dispute being dragged out over another year for a total duration of 2 years. (See letters)

Rob Kelly, of Ardent Property Management, did not comprehend the issue of expense allocation by types but continuously maintained that it was an issue of unit entitlement and offered the following rationale:

· Expenses of the Strata Corporation are allocated to each strata lot based on Unit Entitlement. The old budget did not follow unit entitlement.

· In reality, it was a previous council that illegally deviated from unit entitlement and Westcoast corrected that error.

· Expenses of the Strata Corporation are allocated to each strata lot based on Unit Entitlement. The old budget did not follow unit entitlement. The Strata Corporation can not adopt a method other than unit entitlement without a unanimous vote by all the owners.

He was wrong on all counts because he was disregarding the Types Bylaw of Creekside Village. 

Only after much persuasion by certain Council Members, who did their own research of the Strata Property Act, Strata Property Regulations and our bylaws and were convinced that Ardent's position was not in compliance, did Rob Kelly agree to seek a legal opinion.

A legal opinion from a lawyer selected by Rob Kelly was obtained by Ardent Property Management on December 22, 2008, but was not presented to Council until January 13, 2009. Was the delay because the legal opinion they obtained went against their long held position? Having been contradicted by  the legal opinion, Rob Kelly  then tried unsuccessfully to persuade some Council Members to repeal the Types Bylaw.  Was that because he has admitted to council that he has no experience in dealing with a strata with different types of units?

In  returning Creekside Village to the "allocation of expenses by types" accounting,  Ardent Property Management charged the Strata Corporation for time spent because they hadn't worked with a strata with different types of units before and had to change their system in order to prepare a new budget that recognized the Types Bylaw. Doesn't that sound like he's learning at our expense?

At the AGM, Rob Kelly refused to admit he was in error or to apologize to the owners for his mistakes in misleading  the Council in the allocation of expense issue, a mistake that has resulted in unnecessary meeting expenses and legal costs to the apartment and townhouse owners of almost $5,000.

"What was he thinking?"
 

Times Colonist article by Harvey Williams, president of VISOA
 “B.C. strata owners walk legal minefield”

 “..............Strata managers, now called strata property agents, are limited in the assistance they can provide and in many cases that have come to VISOA’s attention are part of the problem.
 

(unfortunately so true and costly in the experience of Creekside Village)

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