Selecting an owners corporation manager

Selecting an owners corporation manager

The role of an owners corporation manager or provider is to assist in the day-to-day operations of an owners corporation. The manager ensures the owners corporation is compliant with legislative obligations and handles many of the administrative and financial tasks and obligations of the owners corporation including keeping all records.

When you engage a professional strata manager you should expect professional service and guidance, which should result in:

  • Minimised exposure to risk
  • Enhanced enjoyment of your property
  • More informed collective decision making
  • Compliance with all mandatory obligations
  • Greater protection and longevity of your assets
  • Efficient and hassle-free management of your finances.

The convenience of delegating functions to an owners corporation manager

An owners corporation can appoint a manager to assist in the day-to-day administrative affairs. Without a professional manager, problems can arise with frequent changes in voluntary members who undertake the duties, resulting in different standards of record-keeping and potentially inadequate or missing records. Do note though, that the appointment of a manager does not affect the legal responsibilities of an owners corporation as they are still responsible for the actions of a paid or volunteer manager.

 

Appointing an owners corporation manager

The appointment of a manager or provider such as Body Corporate Services (BCS) must be in writing in the form of a service agreement or contract. This requires approval by ordinary resolution (more than 50% of owners in favour) at a general meeting or by ballot to enable owners to be part of the decision-making process, meet the manager, and enable powers and functions to be appropriately delegated.

A person or provider for managing an owners corporation must be registered with the Business Licensing Authority and carry professional indemnity insurance for the prescribed amount or a minimum of $1.5m. This assures that they are likely to act honestly and in good faith, and fulfil key responsibilities in accordance to the legislation such as holding money on behalf of an owners corporation in a trust account and lodging an annual statement with the Business Licensing Authority.

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Bust the myth

Does the owners corporation manager decide how the apartment building is run?

The apartment building is managed by a committee made up of members of the owners corporation i.e. the lot owners.

An owners corporation manager is contracted and paid by the owners corporation to handle the administration and financials involved with running the property to ensure legislative compliance. Managers also can provide guidance based on their years of experience across property types.

While they’re active in getting the job done though, they are not the key decision-maker.  The power of decisions belongs to the committee.

The role of an owners corporation manager

A manager coordinates the owners corporation’s daily affairs including collecting and banking fees, arranging property maintenance, and, in certain circumstances, organising meetings.

A manager’s duties generally include:

  • Paying invoices
  • Attendance to correspondence
  • Maintaining the owners corporation roll
  • Providing owners corporation certificates
  • Arranging audits and reports required by law
  • Preparing and implementing a grievance procedure
  • Arranging quotations for repairs and maintenance
  • Taking out and maintaining the required insurance
  • Preparing and distributing notices, agendas and minutes
  • Preparing and distributing financial statements and budgets
  • Organising meetings for the committee and owners corporation
  • Keeping and maintaining the owners corporation register and records
  • Ensuring compliance with the Owners Corporations Act 2006, the Owners Corporations Regulations 2018, and ensuring compliance with the owners corporation rules.

The ability to carry out these tasks are not the only thing that makes a good owners corporation manager – they are also pivotal in maintaining a harmonious community.

A good owners corporation manager will not only be able to ensure you’re compliant and follow the required processes, but they also need to possess excellent people skills. Community living is made up of people from diverse cultural, linguistic, ethnic, and religious backgrounds so it takes someone empathetic, patient, and a good communicator to assist in resolving issues and keeping the peace.

If you’d like to find out more, download our FREE Community Living guide on committee management & meeting management. Or ask a question at StrataFAQ.com.au.


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