The ten roles and responsibilities of a committee in a strata, owners corporation, or body corporate property
The committee plays an important role in the administration and management of the common property, such as duties around record keeping, financial management and insurance obligations. These elected representatives are tasked with making decisions and overseeing legislative functions for all owners of the strata, owners corporation or body corporate.
As volunteers, committee members fulfil their duties without expectation of fee or reward and invest much of their time to ensure the property maintains its value and enhances community living for all.
The committee’s functions fall into one of two scenarios depending on whether it is self-managed or a strata manager is engaged.
Scenario one
If an owners corporation or body corporate property is self-managed, the committee would need to carry out all tasks of the owners corporation, such as issuing levy notices, arranging insurance quotes, preparing financial statements, and keeping records.
Scenario two
If a strata manager is engaged, the committee’s functions become less task-related to a management style of leadership to ensure their legal obligations are fulfilled. If a strata property has enlisted the help of a professional strata manager, these will be the ten main roles and responsibilities of the committee:
- Repairs, replacement and maintenance of common property
- Manage by-laws and building rules
- Managing finances and funds
- Meeting management
- Record keeping
- Securing insurance
- Raising strata levies
- Capital works & building upgrades
- Communicating with owners and residents
- Being your point of contact
1. Repairs, replacement, and maintenance of common property
One of the most important duties of a committee is to help maintain the common property. This involves communicating to the strata manager about works that need to be undertaken, ensuring all tradespeople working on common property are licensed and insured, ensuring that major works have been accounted for financially and scheduled in the appropriate timeframe before a safety issue occurs. While the committee does their bit to manage common property, it is also the responsibility of all owners to support them by reporting damage and safety concerns.
2. Manage by-laws and building rules
The committee’s role in administering by-laws or building rules can be put into two categories:
Complaints about by-law or building rule breaches should be directed to the committee, which then decides whether to issue a Notice to Comply (known as a Compliance Notice in Tasmania, Breach Notice in Victoria, or Contravention Notice in Queensland and Northern Territory) or another course of action.
The committee is also responsible for reviewing applications for approvals that are required from a by-law or building rule, such as for a resident to keep a pet or to make alterations to their property that affect common property, such as air conditioning installation. The committee does not have the power to pass new or alter existing by-laws or building rules but may propose an amendment to an existing one and include it as a motion for all owners to consider at a general meeting.
3. Managing finances and funds
An owners corporation or body corporate is responsible for fulfilling the financial obligations of the property. While duties such as preparing budgets, financial statements, and notifying owners about contributions is generally done by a strata manager, the owners corporation is still responsible for the manager’s actions.
This is where the treasurer’s role comes into play. It is their role to ensure the financial obligations of a strata property have been executed correctly, adequate funds to cover expenditures are available, and the financial records are made available to owners. The treasurer should review each invoice and check its accuracy before approving the payment.
The committee has a spending limit. Before they spend anything, they should ensure that money is formally included and available in the budget. The committee can call a general meeting to change the budget or raise a special levy if there aren’t enough funds.
4. Meeting management
Meeting procedures are a key part of the committee’s role, including organising, conducting, recording and adjourning meetings as necessary.
The secretary informs owners of upcoming meetings in advance by putting up notices on the notice board, handing in the notices in person or delivering notices via email or post (with the assistance of the strata manager). The secretary is also responsible for preparing the meeting minutes, collating the action items, sharing reports and maintaining records.
5. Record keeping
If a strata owners corporation, or body corporate property has delegated responsibilities to a professional strata manager, the strata manager stores records on their electronic document management system.
The strata committee, however, plays a pivotal role in keeping accurate records. This includes agendas, minutes, and documents required to be kept by legislation and passed onto the strata manager.
These documents may include invoices, receipts and expenditures, correspondence received or sent to the owners corporation or body corporate, meeting minutes, notices of meetings, proxies, defect or engineer’s reports, any notices or orders, and relevant insurance details. It is also the committee’s role to keep on top of the strata actively roll to ensure it is current.
6. Securing insurance
While the strata manager will arrange quotations from brokers for the required insurance for common property, the committee is responsible for nominating the sum insured, having adequate coverage, and deciding if additional insurances are required.
7. Raising strata levies
If a professional strata manager has been engaged, they will develop a budget forecast for the owners corporation or body corporate for consideration for the upcoming year. This budget determines the levies.
The committee should receive a draft budget for review before it goes out to all owners in the meeting agenda. The committee must review whether the proposed budget is sufficient to cover operational and capital expenses.
8. Capital works & building upgrades
Part of the committee’s role is to review the capital works or maintenance plan and schedule the required works, ensuring enough budget is allocated for the works to take place.
This may involve meeting with and engaging the appropriate consultants to review the condition of the building and its assets, creating a scope of works, meeting with tradespeople, obtaining quotations, applying for necessary permits or Development Applications, informing residents of works, and ensuring the works carried out following work, health and safety standards.
9. Communicating with owners and residents
Good communication makes a huge difference to strata, owners corporation, or body corporate living – there’s nothing like an open discussion to help turn things around. In meetings, it is encouraged that a committee supports conversations and promotes balanced discussions to lead to a consensus.
When there are disagreements, they’re responsible for mediating matters and building rapport so that everyone is heard and fairly treated. The committee is responsible for making sure all owners are aware of the by-laws or building rules and abiding by them.
10. Being your point of contact
As representatives for the owners corporation or body corporate, the committee’s role is to be the point of contact for other owners and building residents. The strata committee should be able to answer strata-related questions regarding by-laws or building rules, finances, and access to information and be ready to mediate discussions between neighbours.
