Owners Corporation managed by another owner...

[boxdog]

Hey guys

One of my properties is a unit in a 6-dwelling block of townhouses. Our OC manager just did a AGM which I was unable to attend, but it basically went to crap. About 6 months ago, 3 of the units were sold and bought by 3 seperate owner-occupiers. One of them, Belinda, has a very vocal accountant for a father who came along to the AGM.

During the meeting the manager, Danny, budgeted $255/qr for each of the owners for OC costs (including strata insurance, gardening etc). Her father had cheaper strata insurance quotes on hand and said he could get the fees down to $150-175/qr.. After the AGM there was a bit of to-and-fro apparently and then a few days later we all get notice from Danny that he is ceasing management of the owners corporation.

I have now found out through correspondence from Belinda that she is volunteering to be the new OC manager at no charge and is proposing to do the gardening (really just the nature strip at the front, anyway) as well and is asking for our votes for/against this motion.

As enticing as her offer sounds, I am a little skeptical about handing the reigns over to to the neighbor. My fears could be completely unfounded (considering that OC managers never seem to do anything anyway!!) but wouldn't her management of the OC by default mean there is a bias to any decisions made or motioned for in the meetings? What would you vote and why?

 

[Lil Skater]

It's not uncommon to have an OO as the OC manager.

Even if there is a bias, the majority of the other owners need to vote for any proposed changes/expenditure, so I wouldn't worry too much.

It's cheaper to have an OO as a manager than employing a company, it's just how the meetings are organised and in some instances the OO manager is preoccupied with managing the properties they drive tenants insane.

Other than that I don't think there's any further risks. Just make sure you have a copy of the insurance policy, all requests are in writing and that they funds are deposited into a separate account (I believe it's meant to be a trust account).

 

[depreciator]

In the block of (6) units my mother has her PPOR, the owners corp blokes is another is another owner occupier. He's retired and treats it like a job and keeps that place spick and span. It works well.

 

[Sez]

My only concerns would be;
A) Does she have previous experience and know what she is doing &
B) How much involvement will the "Vocal" father have?

Normally I wouldn't mind and would suggest that for the fees you save wouldn't be an issue but as some trouble has already been caused...........

Quite the pickle .

 

[boxdog]

Hi guys, thanks for your responses.

I went to a followup meeting and met the father face to face the other night. Turns out as he is an accountant he has experience managing Body Corporates in the past, he will provide whatever support necessary to Belinda to get the job done. Effectively I think all she'll be doing is mowing the lawns and managing maintenance.

He wasn't as bad as I imagined and while some emotions ran high at the past meeting and there was some disagreement I don't think he was being unreasonable. So there's not any extra documentation or evidence necessary for the owners corporation to file on a regular basis to a governing body or anything else?

 

[Peter_Tersteeg]

I've had some good BC managers and some bad ones. In a small site of 6 units I'd suggest that another owner occupier with support from someone experienced (from a legal and compliance point of view), is probably going to do a better job than many professionals. There are some risks but these are lower than the risk of a "don't care" attitude you might get from some of the BC managers I've dealt with.

I'm not having a go at BC managers in general and if it were a large site that would be my recommendation, but an owner occupier is likely to have a larger vested interest in things running well.

 

[DavidMc]

Nice one - he just saved the complex $2400 each year!

I'd say go for it and echo's others responses. If it's no good, go appoint a new manager. Looks like you're up for a new one either way.

Maybe you can propose a trial year with a vote at the end of the trial?