How to tell if an owners’ corporation manager is reputable
Before appointing an owners’ corporation manager, it is imperative to do some investigating to ensure they are trustworthy and reliable.
Here’s how to tell if an owners’ corporation manager is reputable. Okay, Sherlock, let’s get started.
Look at the big picture
Consider the history of the owners’ corporation manager and their track record.
Are they new to the game or experienced? What is the verdict from other clients? Be sure to check the manager’s registration on the Business Licensing Authority’s public register of owners’ corporation managers to see whether any orders have been made against them and the outcomes.
Find out how they operate
Is the owners’ corporation manager a one-person show or a team, and how will this impact the service you receive? Will they help you make informed decisions and advise you of your rights and obligations?
Scrutinise their service providers. The last thing you want is dodgy tradespeople taking care of your common areas, or the owners’ corporation manager attempting to do repairs themselves if they’re not adequately qualified.
Find out whether they offer 24-hour hotlines for emergency repairs, or how long you’re likely to wait.
Use your microscope!
Part of your detective work should hone in on the owners’ corporation manager’s record-keeping. Complete records indicate professionalism and a commitment to uphold the Owners’ Corporation Act 2006.
Insurance should be in order and all legislative compliance reports should also be in place. For example, swimming pools must have a pool safety certificate.
Beware of the following red flags when choosing an owners’ corporation manager:
- A high level of levies in arrears (this could indicate they are repeatedly failing to collect payment from lot owners and lack solid levy collection procedures)
- Late or missed Annual General Meetings (ideally these should be held within three months of the financial year’s end)
- Delayed action on repairs and maintenance
- Budgeting in arrears (e.g. spending more annually than they’re making)
- Being slow to recover administrative fund deficits
- An unhealthy sinking fund balance that looks unlikely to cover major capital works.
Need a professional owners’ corporation manager?
At LDB, we offer owners’ corporation management services so we know what to look for and can offer valuable advice.
With our combination of property and financial expertise, we are ideally placed to provide management services to owners’ corporations.
To find out more, please get in touch by phoning (03) 9875 2900 or completing the contact form below.