Most Common Owners Corporation Mistakes When Self-Managed
Some owner’s corporations choose to manage themselves. When this happens, a few individuals volunteer to take on the tasks that a Body Corporate Manager would have done. These volunteers may be very motivated and well meaning but more often than not, things go wrong. When building matters are left to a person that may have a stake in any outcomes, this may cause a conflict of interest. In the worst case scenario, the building may suffer from not being adequately protected against potential risks.
Below are some self-management pitfalls to watch out for.
⦁ Not paying fees on time:
Every strata title will accrue fees that need to be paid on time. When a body corporate is self-managed, these can go unpaid and important maintenance or repairs does not take place. This makes the building become rundown and the building can fall into disarray. Renting apartments becomes harder and the resale value of the property can also decrease. At Montano Strata Management, all our managers are meticulous with record keeping and will ensure that all fees are paid on time.
⦁ Failure to deal with neighbour disputes:
Self-managed owners’ corporations may not always know all the statutory requirements that need to be met when decisions are being made. Unilateral decisions can be made in such cases which lead to some members being disadvantaged. As a result, arguments and disputes will come up and these can be hard to mediate if only invested parties are involved. When you work with a Montano Strata manager, all disputes will be dealt with professionally and efficiently.
⦁ Keeping body corporate fees low:
In the short term, this may seem like a good thing as everyone gets to save money but it can have long-term repercussions on your investment. Without proper planning, the administration and capital works fund may not have sufficient capital to cover the costs of the scheme. It is incredibly important that funding is in place to cover the monthly costs of the scheme but also to undertake repairs when necessary. A detailed budget in place will ensure the building will not degrade, and owners can continue to experience capital growth and rental returns for their investment. Keeping the body corporate fees low for the sake of having low fees is not the best long term outcome in maintain the current condition of the property.
⦁ Poor succession planning:
Should the current owner currently managing the strata title decides to sell or can no longer give their time, another owner to take on the role will need to be found. A replacement can be hard to find and even harder to train to take up the job. As such, the efficient running of the strata scheme can quickly be undone. In such a case, call Montano Strata Management and we will provide the solution to efficiently manage your strata scheme.
Do you have any questions regarding residential and commercial strata management? Are you looking to switch strata managers? Not altogether satisfied with the information you’ve been getting from your current strata managers? Don’t hesitate to contact Montano Strata’s qualified team today.