Who looks after what in strata management?

By Roland Franz, Body Corporate Headquarters, Strata Consulting Services (Qld).

In strata property management, successful collaboration among key players is the cornerstone of a thriving community.

The building manager, the committee, and the body corporate manager each play crucial roles in ensuring a seamless and positive strata experience. Their collective fiduciary responsibility is to maintain the strata community assets—building, facilities, and grounds—while always acting in the best interests of owners and residents.

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The Building Manager

The building manager/caretaker often wears multiple hats, including that of a letting agent, especially in schemes where they have purchased management rights. Their primary responsibilities revolve around the day-to-day management of the property, including common property maintenance coordination, by-law reporting, as well as additional services as engaged under their caretaking and letting agreements. This means they ensure all communal areas are well-maintained, address repair needs promptly and coordinate with service providers for routine maintenance tasks.

Letting agent responsibilities extend to tenant acquisition, lease management, and property maintenance coordination internal to the lot. They handle marketing vacancies, screening potential tenants, and facilitating lease agreements. Their knowledge of the property’s intricacies allows for efficient management and resolution of issues, significantly contributing to the property’s overall appearance and reputation.

The Body Corporate Manager

The body corporate manager acts as the central administrative figure, serving as a liaison between the committee, property owners, and external stakeholders. Their responsibilities encompass organising meetings, preparing budgets, and ensuring compliance with legislative requirements. They facilitate administrative, financial, and legal matters, ensuring transparency, adherence to regulations, and equitable outcomes for all owners. This includes preparing financial statements, managing the body corporate’s bank accounts, and ensuring all statutory obligations are met. Notwithstanding that the instructions in performing these duties are taken from the committee.

One of their critical roles is to facilitate communication and coordination among the various stakeholders. By organising regular meetings and maintaining clear records, the body corporate manager ensures all parties are informed and engaged in the decision-making process. They collaborate closely with the building manager/caretaker and committee to align plans, budgets, and actions, ultimately enhancing the property’s value, desirability, and community experience for residents.

The Committee

Representing the collective interests of property owners, the committee assumes decision-making authority within the body corporate. Their duties include formulating policies, enforcing by-laws, and making decisions on behalf of the body corporate. The committee ensures that property management activities align with strategic objectives and governance priorities, contributing to transparency for owners.

The committee consists of elected property owners who typically volunteer their time to oversee the management of the scheme. They set the direction of the body corporate and ensure the management team acts in the best interests of all owners. This includes approving budgets, approving maintenance items, and planning for capital works, by-law management, and addressing disputes that may arise within the community.

The power of collaboration

When the building manager, committee, and body corporate manager work together proactively and collaboratively, the benefits to the strata community are substantial:

1. Enhanced property maintenance: Collaborative efforts ensure that maintenance issues are addressed promptly, preserving or enhancing the property’s condition and reducing the risk of costly repairs.
2. Increased property value: Properties managed effectively and maintained well typically see an increase in market value, benefiting all owners.
3. Improved tenant satisfaction: A well-maintained and efficiently managed property attracts and retains tenants, ensuring stable rental income and a positive living environment.
4. Streamlined communication: Clear roles and regular communication between the building manager, body corporate manager, and committee ensure that all stakeholders are informed and engaged, fostering transparency for owners as the management team works towards achieving common goals.
5. Regulatory compliance: The body corporate manager’s expertise in legislative matters ensures that the property remains compliant with all relevant obligations.
6. Strategic planning and decision-making: A unified approach allows for more effective forward planning. The committee, with input from the building manager/caretaker and body corporate manager, can make informed decisions that align with long-term goals and owner interests.

Clear and effective communication, defined roles, and collaborative effort are the keys to unlocking the full potential of property management dynamics that will enhance the customer experience and foster better capital gains and returns for owners in strata-titled schemes.

Responsibilities at a glance

• Letting agent: Internal lot maintenance, tenancy applications.
• Building manager: External lot maintenance, common property maintenance, behaviour of residents and guests, by-laws, general inquiries relating to occupancy or use of common facilities
• Body corporate manager: Owner lot improvements, approvals and applications, levy inquiries, body corporate records, meeting notices and minutes, insurance claims, administration, and other general inquiries.

   

  

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