Body corporate management can be confusing to many property owners, but it’s important to understand how it works. This article discusses the various options available, including self-managing and contracting with a body corporate management group. It also explores the termination of a body corporate management contract. Finally, here are some tips to help you choose the best solution for your property.
Self-managed body corporates
Self-managed body corporates can reduce the workload for the body corporate management manager as they are not bound by the same codes of conduct and legislation as body corporates managed by a committee. In addition, a self-managed body corporate can reduce its cost by eliminating the need for extra service providers and lessening communication with the committee. A self-managed body corporate also gives lot owners more freedom to make decisions for themselves without the constraints imposed by a body corporate manager. For more information, go to my blog.
One disadvantage of self-managed body corporates is that they often need help to guarantee the quality of workmanship from contractors or suppliers. Self-management also means that owners must keep their documents up-to-date, adhere to rules and regulations and deal with maintenance issues. On the other hand, a management company provides owners with the necessary staff, policies and documents to run their corporate body effectively.
Self-managed body corporates are relatively easy to run, and owners may find the process overwhelming. However, self-managed bodies corporates have many advantages. These include lower annual levies and body corporate fees. They also provide more control over the process and avoid many complex regulations and obligations.
Strata complex owners need to pay their levies on time. However, sometimes they must catch up on their finances and need help paying their debts. If this happens, self-managed body corporates may need help recovering from the debts they have accrued. If this is the case, a body corporate management agent can help owners get back on track with payments. For more information, go to my blog.
A majority of committee members can terminate a body corporate manager’s contract. Unanimous approval is preferred, but it is not required. Moreover, the meeting minutes must include a motion to remove a manager. In addition, it is important to note that the manager’s contract has a set period to complete the tasks.
The body corporate management contract must be in writing and contain specifics about the terms of engagement. It should also state what functions the manager will perform, how much he will be paid, and whether the manager can make executive decisions. The contract should be sent to members before the general meeting.
The appointment of a body corporate manager must be decided at the annual general meeting. Multiple managers will be considered, and the person with the highest votes wins. However, if there is a unanimous choice, the meeting will continue. In such a case, the committee will notify the new body corporate manager of their appointment and provide contact details for the incumbent manager.
Termination of a body corporate manager’s contract
If you’re a body corporate and you’ve been unhappy with the service your manager has provided, you can end your contract. There are some ways to do so. First, you’ll need to consider the terms of your contract carefully. You need to know what penalties you’ll face if you choose to terminate your contract. Also, you need to know how to apply to a State government tribunal to have the contract terminated.
Under the BCCM legislation, you can terminate the contract of your body corporate manager if you don’t like their service. However, by law, this must be done within three years. It means you must avoid signing a contract over three years. In this case, the UOAQ was approached by a member who was unhappy with the renewal clause in the contract she was currently using with Complete Body Corporate Services. Furthermore, she worried about the contract’s lack of an ‘escape clause’.
When you want to terminate your body corporate manager’s contract, discussing any concerns with the managing group is a good idea. Of course, discussing this with the management group before the contract ends is best, but if you’re away from that point, you’ll have to start the change process by drafting a change proposal.