Navigating the Complexities of Property Management and Construction

Kimberly is an experienced professional in property management, particularly in condominiums and the commercial sector. She assists property owners in managing maintenance tasks, negotiating contracts, and overseeing construction or remediation projects.

Please tell us about the journey that you've had so far and your roles and responsibilities at Canderel Group.

I began my career in property management in British Columbia, primarily focusing on Strata properties, similar to condominiums in Alberta. Initially, I worked with residential properties, occasionally handling commercial ones as well. Upon moving to Alberta, I managed a diverse portfolio comprising both condominiums and commercial properties. Eventually, I transitioned fully into commercial property management.

In my role, I assist property owners in overseeing their assets. This entails managing maintenance tasks, negotiating contracts, and overseeing construction or remediation projects, whether they're necessitated by the building's age or emergency situations like water damage. In addition, I handle financial matters such as accounts receivable and payable on behalf of property owners.

The objective is to create harmony within condominium communities by fostering positive relationships between the board of directors and unit owners. In the commercial realm, I focus on establishing and maintaining positive relationships between property owners and tenants to ensure a mutually beneficial partnership for all parties involved.

What are some of the major challenges in the apartment and condominium space?

From my experience and perspective, managing a condominium owned by a corporation or overseen by a board of directors presents unique challenges, especially concerning construction and contractors. When it comes to construction projects and working with contractors, there seems to be a misconception between the industry and the board of directors or condominium owners regarding project proposals and quotes. There's an expectation for fast turnarounds and immediate results, driven by the fact that condominium residents view it as their home rather than a business they're representing.

As property managers, we strive to obtain quotes to ensure that we deliver the best quality service to the property owners. However, there is a common misconception, especially in the construction industry, regarding this process. Some highly reputable contractors may be extremely busy, and this can lead to a delay in project timelines. On the flip side, apartment or condominium owners might not fully grasp that occasionally, time sacrifices are necessary to secure superior quality of work. When we talk about higher quality, it's not just about the end result; it also involves factors such as the skill level of the construction teams, which can be reflected in the pricing of their quotations depending on the project.

The property owners and decision-makers overseeing the management of apartments and condominiums often overlook the complexities involved in hiring contractors for construction projects. They may prioritize price without fully comprehending the myriad dynamics at play. Often, there's a tendency to prioritize price as the key factor, seeking the best value. However, it's crucial to convey that the best value doesn't always guarantee the best results. Therefore, it's crucial to emphasize that selecting a reputable contractor based on referrals or recommendations might come with a higher price tag, but it ensures quality and reliability.

Understanding the dynamic between property managers and the construction field is crucial for identifying the specific needs and skill sets required for a given project. This knowledge is essential for explaining pricing accurately. Availability also plays a significant role, as everyone seeks optimal pricing and swift completion of work. This places pressure not only on the construction industry but also on companies striving to establish or uphold their reputation amidst changing dynamics.

In the construction industry and perhaps in other sectors as well, we often encounter challenges such as rising insurance premiums. These increases directly impact the costs that homeowners in apartments or commercial tenants in high-rises may bear. Navigating through this complex landscape requires a deep understanding of numerous variables. However, this understanding can sometimes lead to frustration from the owner's perspective, as they typically desire quick solutions.

In addition, when we are estimating project costs, establishing strong relationships within the industry becomes paramount. It's essential to partner with companies known for delivering exceptional care in building, remediation, or renovation projects, ensuring a high-quality end product.

We actively cultivate those relationships within the industry to gain a comprehensive understanding of its current status and the speed at which supplies are replenished. The logistical challenges experienced during the COVID-19 pandemic significantly impacted material costs for construction companies, forcing them to pass these expenses on to us and ultimately to the property owners. So there are numerous dynamic factors at play behind the scenes, and it's crucial to navigate these complexities to maintain a balanced relationship. Our goal is to ensure that construction companies can thrive, and homeowners in apartments and condominiums receive optimal value for their contributions to various construction elements.

I suppose my role is to try and find that balance and provide sufficient insight from both perspectives to foster harmony. Achieving this equilibrium is perhaps the most challenging aspect, as we tend to become absorbed in our industries and only recognize the challenges within our immediate scope. Thus, we must broaden our perspective to consider the broader challenges facing the construction industry. For instance, are we anticipating material price hikes that will impact project costs and labor because we did see a shift in the labor landscape both during and after the COVID-19 pandemic.

From my perspective, the labor force faced significant challenges in assembling enough teams to tackle projects during the aftermath of the Covid shutdown. Despite the slowdown in construction, numerous tasks that were put on hold still needed attention. As the world reopened, construction activity surged, but now we're dealing with a backlog of projects. Contractors find themselves with an excess of work and are strategically choosing projects that align with their business growth and support employment efforts to ensure the continued progress and satisfaction of their workforce.

It’s possible that certain projects in apartments and condominiums, which previously may not have been as easily quoted for, might now be paused. This pause could stem from recent projects that provided an opportunity to carefully assess which tasks would best facilitate their growth. It seems we're transitioning beyond that phase now, where there's a more balanced accessibility to construction companies. This allows for the establishment and cultivation of relationships, whether these are with new or existing contractors. With some of the backlog likely addressed, there's a hope for a more equitable understanding between contractors and apartment/condominium owners, where both sides recognize the value in their partnership.

Any specific piece of advice that you'd like to share with your fellow peers or other industry leaders?

It is crucial to approach property management with patience and understanding, along with thorough research. It is important to build strong relationships with contractors, comprehend their specific needs, and avoid merely soliciting bids without consideration. In the industry, it is common practice to seek multiple quotes for projects, but it's important to recognize that only one contractor will be chosen. This process can be burdensome for contractors who invest time in bidding for projects they may not win. Therefore, it is essential to establish solid relationships between property management, condominium associations, and contractors. This helps identify reliable contenders for each project, reducing wasted time and ensuring that the right contractors are considered for the right reasons, ultimately providing the best value for all parties involved.