The demands of managing property vary from building to building.
Indeed, many disputes within a body corporate are between one side that wants to invest to maximise asset value and the other which wants to keep running costs down.
Within Bodies Corporate the majority rules, but the committee must, to the best of its ability, act in the best interest of all lot owners. Given that sometimes conflicting interests of the people involved are present, how can the committee make decisions without causing an upset? And which side, if any, should they prefer? Or might it be possible to attend to every lot owners’ needs?
First, let’s consider the primary interests in managing premises:
1. Securing asset value:
- Buying property is often the largest single investment most people or businesses make, so ensuring that the value is stable, preferably improving over time, is important.
2. Ensuring proper maintenance:
- For the best enjoyment of the facilities, and to ensure that the building assets remains in good condition, it is critical to ensure that best maintenance practices are performed. This requires the building or facilities manager – or other nominated person – to plan execute required maintenance in good time, be vigilant and react in a timely way to unexpected events. It is important to utilise the services of reputable contractors and tradespeople to provide a quality service and materials.
3. Minimising running costs:
- Careful consideration needs to be given to all expenditure, ensuring value for money is achieved in all aspects of the running of the building from the price of repairs to obtaining competitive maintenance contractors.
- It is important to not fall into the trap of neglecting routine maintenance. It could lead to much more expensive repairs, replacements, or refurbishments.
4. Removing and minimising risks to health and safety:
- All Bodies Corporate should take reasonable steps to protect the health and safety of occupiers, visitors and works attending site. They Body Corporate has a duty of care.
Few people would argue against the virtue of this duty. Making the right decisions in relation to managing health and safety not only protects people from harm but also protects the Body Corporate from the consequences of breaking the law as well as common law litigation.
So, what does this mean? Communication is the key. Engaging a qualified safety and compliance expert to provide a detailed report of the status of the obligations of the body corporate is the perfect place to start.
Consulting with contractors, building managers, residents and the Body Corporate is critical. If everyone is aware of the risk management and safety requirements and follows the set rules everyone’s interests are protected.
