As Australia’s capital cities continue to grow with new developments, more BMS buildings are starting to arise.
Building Management Statements (BMS) provide a mechanism for buildings with a variety of different types of lots (which may include residential, retail and commercial). The BMS is an agreement that helps the lots understand their rights and obligations and to manage the shared areas of the scheme.
Below is a diagram to explain an example of a BMS:
If you’re involved in BMS, it’s essential you ask the following questions:
If you answered no to any of these questions, then you may be missing crucial income.
Certain elements of a building that is part of a BMS will use particular facilities more than others. For example, retail spaces that are located on the ground floor may not use lifts, compared to the residential owners who will use the lifts multiple times per day.
Every Financial year, the Body Corporate of each lot must prepare a sinking fund.
Every Body Corporate that is part of a BMS must maintain a sinking fund and must forecast for that sinking fund periodically.
One of our key services that we can provide to Bodies Corporate are long term capital expenditure forecasts (also known as sinking fund forecasts) that consider the obligation of sharing facilities and their likely long-term costs to maintain.
With decades of experience shaping our established protocols, we understand that each BMS is a unique agreement requiring specialist management from inception through to exceptional financial management.
It should be in the interests of Bodies Corporate and Building Managers to ensure costs are portioned correctly.
Click here to contact StarBMS today to change the way your building operates for the better.