Property management refers to monitoring, managing and accounting for real estate property. This includes residential, commercial and or industrial property. Property managers are tasked with preserving the value of a property while ensuring it generates income. The profession involves numerous other facets regarding management of the property that may go as far as initiating litigation with non paying tenants. Nevertheless, property management varies from country, province, states, and cities.
Property managers in different areas perform different roles, operate within certain legislation and charge different fees for the services they provide. Australia, for example, has different license and compliance requirements in each state. This is a similar case in Canada as laws governing property management are determined by each province. In addition to provincial regulations, some cities go further and have their own by-laws. Property management governing Toronto will thereby not be exactly the same as those being followed on the province of British Columbia. Outlined below is the difference between how property management is handled in Toronto and in the state of British Columbia. For comparison reason, we will use the city of Victoria which is the capital of the province of British Columbia.
Cost of Living
First, it is very important to note that the cost of living in Toronto and Victoria are quite different. Living in Toronto is in many ways much more expensive than in Victoria. One such expense is the price of property in Toronto. Rent prices in British’s Columbia’s capital, Victoria, for example, are 13% lower on average than in Toronto which would have an implication on how property management is carried out in the two cities.
The average rent for a one bedroom apartment in Toronto City Center is 1784 C$. A similar one bedroom apartment in downtown Victoria is 1354 C$. Similarly, the buying apartment price in Toronto is 35-40% more costly in Toronto. Since the majority of property managers charge a predetermined percentage fee for managing apartments, condos and other property, a Toronto property manager will make much more than their British Columbia counterparts. Toronto has also currently been experiencing a condominium boom which is a very lucrative enterprise of property managers in the city.
Laws & Regulations
In British Columbia, property managers are licensed and regulated by the provincial government under the BC Real Estate Council agency. The agency is mandated to protect the interest of the public, enforce entry qualifications, invest complaints against real estate firms and impose disciplinary sanctions. Ontario State also has its own defined property laws, but no licensing is required for property managers. Property management in these two regions is then not fundamentally different. Real estate agents will generally perform the same roles in both territories amid small differences in property laws governing place to place.
Toronto’s property management, however, will be tougher to join because of a large number of already established property management firms in the city. How well your property is monitored will all depend on the property manager you chose. ICC Property Management is one such firm that provides excellent services in various cities in Canada including Toronto.