Body Corporate Management: Easing Real Estate Worries

Body Corporate Management
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Body Corporate Management refers to the management of common property that is jointly owned by all the owners within a strata scheme. Strata schemes are typically seen in residential, commercial, industrial, and mixed-use properties where each owner has a lot (such as an apartment or office space) and shares the ownership of common areas, like hallways, gardens, roofs, etc.

Body Corporate Management in Melbourne is concerned with managing residential, commercial, and industrial common ownership properties such as apartments, office buildings, and industrial estates. The body corporate is also known as an owner’s corporation in some australian states. It is a legal entity that is formed when a property is subdivided and registered to manage common areas and aspects of the property.

Body Corporate Management involves taking care of all the tasks related to the common property, including but not limited to:

• Maintenance and repairs of common property.

• Insurance of the building and common areas.

• Enforcing the rules and regulations of the property.

• Organising and conducting meetings for the owners.

• Handling disputes between owners.

• Managing financial aspects such as:

1. Collecting fees

2. Budgeting

3. Accounting

The Role of a Body Corporate Manager

To ensure all the requisites are met effectively, a Body Corporate Manager, also known as a Strata Manager in some locales, plays an essential role in managing residential and commercial properties that are under a strata scheme or body corporate structure.

A Body Corporate Manager plays a crucial role in the smooth functioning of a strata scheme or body corporate, managing everything from administrative tasks to financial oversight and conflict resolution. They ensure that the property is well-maintained, laws and regulations are adhered to, and any issues that arise are dealt with effectively and efficiently.

 

Advantages of Body Corporate Management

Efficient Management: Body Corporate Managers in Melbourne are professionals who have the skills and knowledge to manage properties effectively. They understand the legalities and technicalities involved in property management and can handle them efficiently.

Administrative Duties: This involves managing the records and correspondence of the body corporate, organising and attending meetings, taking meeting minutes, handling insurance, and administering the property’s sinking and administrative funds.

Compliance: Ensuring the body corporate complies with relevant legislation, such as health and safety regulations, is another important responsibility. This might include fire safety inspections, compliance with regulations for shared utilities, and ensuring the correct insurance is in place. There are various legal and statutory obligations that the owners need to comply with. Body Corporate Managers ensure that all these requirements are met.

Financial Management: This includes setting budgets, managing accounts, paying invoices, collecting levies, preparing financial statements, and organising the auditing of financial statements.

Regular Maintenance & Repairs: Body Corporate Managers ensure that the common property is regularly maintained. This helps preserve the property’s value and makes it a pleasant place for the owners. The body corporate manager will often be responsible for coordinating necessary repairs and maintenance in common areas. This might include cleaning, gardening, and repairing shared facilities like swimming pools or lifts.

Time-Saving: Managing a property is a time-consuming task. By having a Body Corporate Manager, owners can save a lot of time as they don’t have to be involved in the day-to-day management of the property.

Dispute Resolution: Conflicts and disputes are common in properties with multiple owners. Body Corporate Managers are skilled in handling such situations and can help resolve disputes fairly and efficiently. Body corporate managers often act as mediators in disputes between owners or external parties.

Financial Management: Body Corporate Managers take care of all the financial aspects of the property, including budgeting, collecting fees, and paying bills. This ensures that the financial health of the property is maintained.

Transparent Communication: Body Corporate Managers facilitate communication between the owners and keep them informed about the affairs of the property.

Body Corp Management: Legal Obligations in Melbourne

The body corporate must comply with the Strata Schemes Management Act 2015 in NSW, for example, or the equivalent legislation in other states. This includes responsibilities like maintaining a ten-year plan for the building, keeping financial records, and more.

In terms of structure, a body corporate generally comprises all the owners in a complex who have voting rights and can make decisions about the management of the property. A committee is elected from among the owners to handle the day-to-day running of the property, often with the assistance of a professional body corporate manager.

Body Corporate Management can vary from state to state as the laws governing strata living are not nationally consistent. For example, they’re known as “Owners Corporations” in Victoria and “Strata Companies” in Western Australia. It’s essential to understand the specifics of body corporate management in the context of the local laws and regulations in a given area in Australia.

However, it’s worth noting that while Body Corporate Management has several advantages, it might not be suitable for all properties. The decision to engage a Body Corporate Manager should be made based on the property and its owner’s specific needs and circumstances.

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