Body corporate management is an essential part of running a strata property. It involves many duties, and you want to be sure your manager can handle them well.
A good body corporate managemer will be highly organised and have systems in place to deal with the requirements of your scheme. It will help you run your building more effectively and efficiently.
- Managing the finances
Adelaide body corporate management is a complex process requiring much financial planning and knowledge. It is especially true for larger strata schemes with more than six units.
The manager will be responsible for keeping track of the complex’s finances, ensuring that owners comply with the committee’s rules and regulations, and collecting and banking levies. The manager may also have to arrange insurance, manage disputes and keep meeting minutes and correspondence records.
Adelaide body corporate management has several different financial accounts to keep track of the funds and expenses related to the direction of the complex. These include an administrative and capital workers fund used to maintain common areas like gardens and cleaning services and capital expenses such as lifts and roof repairs.
Owners pay these funds to the body corporate. They are a mandatory part of the operation of a strata scheme and help cover the costs of running the system, including insurance.
Managing a corporate body’s money can be tricky, so hiring someone qualified and experienced to do the work properly is crucial. Many committees outsource their corporate body management to a professional strata manager.
If your body corporate is not being appropriately managed, you must raise your concerns with the manager as soon as possible and try to find a solution. A good strata manager can deal with these issues fairly and reasonably.
Often, the problems with body corporate management are caused by a lack of leadership from committee members. It is why committees must organise their meetings and ensure they are called and attended to regularly.
- Collecting owners’ levies
If you are a lot owner in a body corporate scheme, you should contribute towards maintaining the shared common areas. It includes the maintenance and repair of communal roofs, driveways, pathways, fencing, roadways and other shared areas that the scheme owners use.
The amount you are required to pay each year in contributions and levies depends on the size of your lot. The higher your (individual) contribution lot entitlement, the more you are required to contribute towards the overall costs of managing and maintaining your share of the common areas.
In addition to regular levies, a body corporate can collect extraordinary contributions from lots to cover specific costs that may not be included in the corporate body budget. For example, if the price of painting common property is more than what was allocated in the sinking fund budget, the body corporate can ask for a unique contribution from each lot owner to meet this extra expenditure.
Once the funds have been collected, they are combined and spent according to an approved budget. It can include administrative expenses such as maintenance, repairing and replacing shared common areas or sinking fund levies for future capital infrequent expenses such as replacing roofs or paving.
When the corporate body ends a financial year under budget, it can create a budget surplus that is automatically moved forward into the next financial year. It is usually the result of genuine savings, such as a new price for energy or a better rate on a service like pest control or professional fees. Still, sometimes it is due to timing, for instance, deferring maintenance tasks until before storm season.
- Organising and running meetings
Organising and running meetings is one of the critical duties of body corporate managers. It includes managing annual general and extraordinary general meetings, sending out meeting notices, preparing agendas, taking minutes of meetings and more.
As with any professional role, corporate managers must perform their duties properly to meet their objectives. It means ensuring that all owners know their rights and responsibilities, dealing with disputes fairly and impartially, and keeping accurate records for future reference.
To do this, body corporate managers must be familiar with the laws governing their bodies. They also need access to specialised computer systems for accounting and billing.
In addition, body corporate managers need to communicate effectively with all owners and understand their needs and concerns. It can be challenging, especially when owners have different interests and opinions.
An excellent way to avoid these problems is to set a clear purpose for all meetings and create a structure that supports that goal. Then, once you have a plan in place, encourage team members to follow it and take the time to write down what they’re doing. It will help to keep everyone accountable to the structure and ensure that decisions are made efficiently and effectively.
- Dealing with disputes
Adelaide body corporate management can be challenging, and it’s essential to watch for any disputes that might arise. Whether your dispute involves owners, committee members or other stakeholders, you must resolve it quickly and effectively.
A dispute between owners is shared in community title (strata) schemes. It is because many units have common areas and shared facilities, which can cause tension between the people in them.
Many different laws and regulations govern strata living. These include rules about levies, decisions by committees and breaches of by-laws.
Suppose a dispute between unit owners does not settle through conciliation. In that case, the body corporate can take it to a tribunal or adjudicator for an order to impose a fine or to rectify the problem. It can be a long, expensive process, but it can be well worth the effort.
As a body corporate manager, you’ll need to understand the laws and regulations that affect your role. It will help protect your property and maintain a strong, effective corporate body.