What is body corporate management?
Managing a strata scheme can be devastating without the experience and knowledge needed. It’s no coincidence that most body corporates prefer employing body corporate management services, and for good reasons. Keeping up with complex and dynamic legislation and constant maintenance and repairs are a few items on the list.
Roles of the body corporate management
A body corporate management is an entity assigned by the property owners to manage the building on their behalf. It is further broken down to whether the body corporate has a committee or not. If a committee is in place, the management’s duty is more of a helping hand by doing what the corporate asks. In such a circumstance, the manager’s duties are outlined in a written agreement.
As for when there is no committee, the management qualifies to perform all the committee functions and exercise the committee powers where necessary.
The big question is, what does a body corporate management do?
They handle the affairs of the lot owners, including conducting meetings, giving advice on asset management, collecting and banking levies, arranging for insurance valuations, maintaining the financial accounts, and managing the building’s insurance claims. They also manage disagreements between owners towards an agreeable outcome.
- Make arrangements for the maintenance of the common property.
- Manage the expenses of the body corporate.
- Keep a register of proprietors.
- Contact third parties on the body corporate’s behalf.
- Ensure compliance with the body corporate’s bylaws.
- Maintain the role of owners.
- Offer to advise the committee on corporate governance.
- Call for committee and general meetings.
- Ensure the scheme complies with the work, health and safety regulations.
- Arrange for the insurance quotations of the building’s insurance.
- Collect levies from owners.
- Prepare financial accounts and budgets.
- Order for the auditing of the financial statements.
- Prepare various documents from the Annual General Meeting and the Extraordinary General Meeting.
Other obligations may include, but are not limited to the following:
- Draft a register of owners for a new body corporate.
- If needed, prepare disclosure statements for the owners selling their units.
- Assist the body corporate to establish a long-term maintenance plan.
- Help with units’ subdivision when necessary.
Code of conduct of a body corporate management
- Having knowledge and an in-depth understanding of the relevant acts and codes.
- Acting in utmost fairness, honesty, and professionalism.
- Working in the best interest of the body corporate
- Not participating in the unfair influence of the committee election outcome.
- Not engaging in any fraudulent activities.
- Maintaining the scheme’s property records as required by law.
Termination of a body corporate management
The engagement of a body corporate manager may come to an end if they:
Fail to uphold their duties or comply with the relevant Act or Code of Conduct;
Are guilty of any offence relating to dishonesty, assault, or fraud.
The body corporate management is responsible for the day-to-day and annual running of the property. Owners can manage some of the duties themselves, but leaving it to professionals ensures the smooth running of the building and sustainability while securing the future by abiding by the ever-changing and complex legislation.