Across Australia, owners who form part of an owners corporation or Committee are often faced with the same question
“how do we best manage the ongoing responsibilities that come with shared property?”
In many cases, particularly as buildings grow in size and complexity, the decision is made to engage a professional body corporate manager.
A body corporate manager sits at the centre of how a building operates, supporting the decisions and processes that keep it functioning day to day and over the long term.
The role carries significant responsibility and requires experience particularly where multiple owners, shared assets and regulatory requirements are involved.
Key Takeaways:
- A body corporate manager oversees day to day administration and long term planning, becoming more critical as buildings increase in size and complexity.
- Self management may suit smaller schemes, but professional management is often more effective as owner numbers and responsibilities grow, depending on building complexity and owner capacity.
- Meeting legal requirements alone does not guarantee good management. Experience and strong systems are critical to protecting a body corporate’s interests.
What can a body corporate manager do?
A body corporate may appoint a manager to carry out any powers or functions it is permitted to delegate under the relevant legislation.
In practice, this generally includes matters that can be dealt with by ordinary resolution and do not require a general meeting of owners.
This allows the day to day administration of the body corporate to be managed efficiently.
The appointment must be made in writing, either through a formal instrument of appointment or a written management contract, which defines the scope of the manager’s authority and responsibilities.
Duties and legal requirements of body corporate managers
Professional accreditation for body corporate managers has long been discussed and remains some years away.
In the meantime, legal and regulatory requirements continue to apply at a state and territory level across Australia.
In general, a body corporate manager is required to:
- be appropriately licensed or registered
- be appointed by an instrument or contract of appointment
- act honestly and in good faith
- hold professional indemnity insurance
- hold all body corporate money in trust
- account separately for money held for each body corporate they manage
- report to the body corporate at each annual general meeting
- report to the Committee as required
While these requirements set the legal baseline, they do not in themselves indicate the quality of management provided.
Qualified and approved body corporate managers
At Change Body Corporate, we take it a step further. Rather than focusing solely on minimum compliance, we assess management companies based on quality, service and professionalism.
Every company we work with must satisfy the following criteria:
Experience and qualifications
Strategic body corporate management is a specialised field that requires the right mix of skills, expertise and qualifications.
People and service
A dedicated professional understands that timely communication and prompt responses are fundamental to effective management.
Integrity and values
Bodies corporate often accumulate substantial maintenance funds and operate sizeable annual budgets. Trust and integrity are therefore essential.
Systems and processes
Strata management involves multiple owners and high volumes of transactions. Robust systems and well-established processes are critical to maintaining consistency and control.
Knowledge and training
The rules and regulations governing bodies corporate are complex and constantly evolving. Reputable management companies undertake ongoing professional development and training.
When does professional body corporate management make sense?
Some bodies corporate elect to self-manage, particularly where buildings are small and owners are actively involved.
However, as a general rule of thumb, self-management becomes more difficult once there are more than 10 lot owners due to the increasing time commitment and level of coordination required.
As buildings grow, responsibilities often extend beyond basic administration. Professional body corporate management is commonly considered as these factors begin to apply:
- increasing compliance and governance requirements
- more complex financial and insurance arrangements
- ongoing maintenance planning and contractor coordination
- the need for consistency and continuity over time
That said, there are smaller bodies corporate that still prefer professional management, and conversely, there are larger schemes that successfully self-manage.
Ultimately, the decision depends on the complexity of the building, the experience and availability of owners and the level of risk the body corporate is willing to assume.
Selecting a body corporate manager who delivers
Choosing the right body corporate manager can be challenging, particularly given the variation in service standards across the industry.
Unfortunately, the industry includes unvetted and unreliable operators, which can place bodies corporate at risk.
We take a transparent approach, working only with management companies that meet clear standards for capability and service.
With a clear understanding of how a body corporate manager should function, we help bodies corporate identify experienced and trustworthy managers who are the right fit for their needs.
Contact us today for a free consultation, and let us help you find a management company you can trust.
