Should we self manage or appoint a professional owners corporation manager?

The process and effective operation of bodies corporate (owners corporations) is facilitated and enhanced when a professional manager is appointed. It is not uncommon that a professional manager is appointed to solve intractable problems and relationship breakdowns in previously self-managed properties.  

The effective operation of an owners corporation is largely determined by the willingness of owners to engage with, and assume responsibility for, the operations of the owners corporation.

Professional owners corporation managers play a vital role in an increasingly complex environment by ensuring owners corporations are compliant with their legal responsibilities, efficiently and effectively protect and maintain the owners’ assets and plan for the future.

There are two key trends evident and growing, namely:

• the level of investment in properties subject to owners corporations is significant and increasing
• the significant number of properties with a large number of lots and complex services, such as can be found in high rise or mixed use developments

Both trends make the self management of properties extremely problematic and pose significant risks for owners who may not be informed of the complexities associated with the management of their common properties. Thus there are situations when professional management is required to protect highly valuable assets and facilitate the management of complex or large owners corporations.

Even in a small or “simple” owners corporation the decision of whether to self manage or appoint a professional manager needs to consider the issues - if no professional manager is appointed:

• Who will prepare the Annual Budget and then arrange to collect the fees?
• If an Owners Corporation Certificate (Form 3) is required to be issued, who will prepare that document?
• If an Owner does not pay his/her share of costs, who arranges for recovery proceedings to be instituted, and/or who pays that Owner’s share of costs initially so that bills are paid?
• Who will obtain quotations for the various jobs that need to be done at the property, even such small items as ensuring that public lighting is operating satisfactorily (in case someone trips over & sues the Body Corporate)?
• Who arranges for Contractors to correctly follow OH & S practices and procedure?
• Who arranges on a non-prejudicial basis for the Owners Corporation Regulations to be followed by all Owners, particularly regarding parking, noise, animals?
• Does the person conducting the affairs of the Body Corporate have Indemnity cover, particularly in these days of litigation?

If you are concerned about the current management of your Owners Corporation, we would be happy to provide you with an initial consultation. Just contact us here