Body corporate management is an area that specialises in property management and involves the daily operations of properties that are jointly owned. The strata title system is established for the purpose of successfully managing various developments by providing an ownership framework and guidelines for managing developments that have multiple owners and users.
Role of Strata Manager
The primary role of the strata manager is to work with an owner’s corporation as well as the executive committee to effectively manage, control, administer and maintain the property while creating a suitable community environment.
Tasks include budgeting, general accounting, invoicing service charges or levies, financial reporting, arrears collection and contract management. Duties also consist of preparing meetings, communicating with property stakeholders, enforcing rules, coordinating maintenance tasks, issuing certificates, orders and notices and handling general secretarial responsibilities.
Foundation of Successful Management
Whether you refer to it as a body corporate or owner’s corporation, the same principles, rules and regulations are applicable for a successful property. Effective management requires a solid foundation that determines how content you will be as a part of the Body Corporate.
The factors that ensure you have a Body Corporate that is managed properly include effective management, insurance renewals and claims, compliance, maintenance and property administration and financial management.
Significance of Effective Management
Effective management is a top priority because lack of good leadership can be disastrous for your new property. A competent strata manager is necessary for working effectively with an executive committee to make sure that all the other factors are fruitful.
If strata managers and executive committees of a Body Corporate do not work together or communicate effectively, great structures can deteriorate. Owners have high expectations regarding strata managers. The level of communication and responsiveness between owners and managers has a significant impact on driving change. Click here for body corporate services in Brisbane.
Prospective purchasers who have written permission from lot owners and lot owners can assess records and books of strata schemes at a fee according to the stipulations of the management act. Companies are available to inspect the records and books and organize strata search inspections.
Owners Corporations and conventional householders are responsible for similar expenses. These include insurance, repair, maintenance and utilities. In accordance with the law, every Owners Corporation is required to set up an administrative and sinking fund and can raise levies to cover expenses. Administrative funds cater for daily expenses while sinking funds cover the future costs of capita expenses.
All the required insurance policies should be in place in compliance with the Management Act. This is the responsibility of the Owners Corporation along with ensuring that the building is valued every five years. Certain records must be kept by The Body Corporate for a number of years and should include meetings minutes, correspondence and financial records.
Records and Strata Roll
The Body Corporate is required to prepare and retain a strata roll as per the regulations of the Management Act. A strata roll includes the names and addresses of lot owners, mortgagees, tenants and insurance details.
Strata Management Agents
The Body Corporate can engage the services of strata managing agents on behalf of the owners to assist with managing the strata scheme. A management agency agreement outlines duties and responsibilities.