Is my superintendent getting paid too much?

[ACCT]

So I just moved in to my new condo and just got the details/financial statements for the AGM. I reviewed the financials and noted that the superintendent makes around $42K per year. In addition to that, he lives in the building in one of the suites (7th floor) for free as a benefit of his job. That adds to it another $1,000 (at least) worth of benefits that he enjoys.

I understand that the $1,000 is a housing benefit and he will be taxed, but looking at it from a gross level, he is making at least around $54K for being a superintendent. I've talked to a few friends about this and they are thinking that it appears a little bit too excessive, so I would like to hear a few more opinions on this before I raise the issue at the AGM.

Another thing is is that that the mortgage on the superintendent's unit pays a whopping 8.5% worth of interest. That is ridiculous... and that's probably something else I will be raising at the AGM. We're probably better off paying it off and then taking out a HELOC which is probably MUCH cheaper than this crazy mortgage rate we're paying...


Thanks in advance!

 

[cdr108]

the gross is probably closer to $60K since the $1000/m suite would normally be paid by after-tax income.

how big is your building, # of units?
if s/he's a really good super with experience, that gets things repaired quickly and properly, then it may be worth it.

however, if they're just average, according to servicecanada, the average annual income is more like $30K (i don't know if that includes free rent)

http://www.servicecanada.gc.ca/eng/qc/job_futures/statistics/6663.shtml

 

[DSC]

Is that your Super's salary or salary plus benefits, CPP, UIC etc etc? If the latter it's probably about average, if it's salary only it's maybe a bit high BUT it depends on size of building, whether there is a permanent Manager, whether there are other employees he supervises etc etc.

 

[ACCT]

I believe that is just salary since there is a separate line item for benefits. He lives in the building and his office hours are for only two days (you can set up appointments though and he is email accessible), although I am aware he also does stuff behind the scenes.

The building is approximately 250 units, and staff that I regularly see are around 2 cleaning staff and the concierge, although I am not sure if he actually has the authority to supervise them and tell them how to get things done.

 

[whatever]

Yeah, but that $30k figure is for "janitors, caretakers, and building superintendents." What's unique about this particular case is that the superintendent lives in the building, and that generally entails that he's on call 24/7. The janitors, caretakers, and building superintendents that make up the vast majority of that NOC code get to go home at night, and then there's a second person making the same money who's available to cover the off-hours.

To be honest I don't know what my superintendent makes (he's also the live-in sort), but I wouldn't at all be upset if he was making 42k for what he does.

 

[ACCT]

I think 42K is reasonable, but again, coupled with housing benefits, it is more like at least $54K gross, which I find to be quite daunting.

 

[whatever]

Again, I don't know what your particular superintendent is like, but I know mine seems to be a jack-of-all-trades, and I know he gets his hands dirty, so I tend to think he should be paid more like a tradesman than a janitor. I know I wouldn't want his job for 54k gross (if you include the housing), so it seems fair.

 

[Torontotony]

Check again to see if the $42k includes the $1,000/mth housing allowance. $30k + Allowances is more in line, based on what I have seen.

Re the 8.50% mortgage...it could be considered a commercial mortgage which is more expensive, but that interest rate is certainly not anywhere near comm rates of the last 5 years. More than likely, the mortgage is either a Vendor Take Back from the developer or a private to the condo corp. If it's to the condo corp, interest expense is being attributed to the Condo's revenues (which is offsetting). If it's a developer VTB, then absolutely bring it up with the condo board.

 

[lead82]

sorry if this sounds crude, but what exactly is a supers responsibilities in a condo? Most condos hire contractors to do any real work.

 

[DSC]

sorry if this sounds crude, but what exactly is a supers responsibilities in a condo? Most condos hire contractors to do any real work.

I suspect it varies quite a lot, if you are an owner you should be able to see a copy of the Super's job description (ask your Board). If a building hires contractors they need to be supervised by someone, in my building - which does not have an on-site Manager - that's the Super. If there is an on-site Manager I assume they would do this but Managers seldom live in the building while Supers usually do, and are thus, in theory anyway, available 24/7 for emergencies.

 

[shabbasuraj]

Your super is being overpaid.

 

[Actu]

Super overpaid?

Try following your super around for a day and see what he has to deal with. In most cases you will not be able to keep up with him, especially in a large building. Also it is very difficult to get reliable people who will work weekends, be on call 24/7 and quite often deal with with difficult people. Most likely your super is not overpaid!

 

[js97]

Try following your super around for a day and see what he has to deal with. In most cases you will not be able to keep up with him, especially in a large building. Also it is very difficult to get reliable people who will work weekends, be on call 24/7 and quite often deal with with difficult people. Most likely your super is not overpaid!

You can say that for every job. The super is only overpaid if there are equally/more qualified individuals willing to do the job for less. Although for a 250 unit buildling, a 5-10k amount is not that large of a number that you should be focusing on...

 

[Kenny]

The building is approximately 250 units, and staff that I regularly see are around 2 cleaning staff and the concierge, although I am not sure if he actually has the authority to supervise them and tell them how to get things done.

250 units? You can think of it this way. If he's being overpaid by 12K (meaning he should be paid 30K), then you are paying him an extra 12K/250/12 = $4/month. Now, if you ask me, a good super is worth more than $4 a month extra.

 

[Polkaroo]

Is he good at his job? If so I would not think he is being overpaid. If the job paid poorly, they would not be able to attract and retain someone good, and you would be stuck with an incompetent super. I know that I would not be willing to put up with a mediocre super just to save a few dollars a month.