Self managed strata corp

[Rob Williams]

I'm in the process of taking strata (body corp) management away from the strata mngt company that currently looks after it and bring it in house as a self managed strata.
I'm having a few issues with this, though.

Firstly, the bank requires me to register the strata corp with ASIC before they will open an account. Apparently because the word "inc" appears in the name "Strata Plan No. 2xxxx Incorporated" per the cert of title for common property.
I have other properties in self managed groups and the bank accounts were opened without ASIC registration.
Is this something new?

Secondly, The existing strata manager says it must be a trust account and be audited annually. That brings about a whole new level of complexity, making me rethink the self management path.

Either I'm being given misinformation or the regualtions have changed.
Any input would be warmly received. Thanks in advance!

 

[Project1080]

Hi Rob,
Our strata looked at self managing when it was first formed. In the end it went to a Strata Managing company-too much work involved.

can't confirm the ASIC scenario but think it may well be the case. Have a look at Regs 15f & 18 re: monthly and annual reporting. For the relatively small annual fee, i'd recommend paying someone. I can offer you a recommendation and two non recommendations for Strata Managers if you wish. Just email me.



Project 1080

The project: 10 IPs in 80 mths.

 

[Rob Williams]

Thanks 1080!

 

[john]

Hi Rob

My understanding is:-
that if all proprietors (owners) agree to self manage the Body Corp there is no drama providing there is no management fee charged by the owner/s who do the work. ie it's managed for free by a volunteer/s. The bank A/C should not be an issue - maybe drop the 'inc' - just so long as the A/C can be recognised by the Body Corp members as theirs and it does not need to be a trust A/C. Any two signatories - usually chairman/treasurer. It would still be advisable to have an accountant put together the end of year financials and also do an audit for presentation at the AGM. It is a bit of responsibility and work and time for a volunteer for a minimal saving in B/corp fees. Better to have a strong committee to work together to look after the maintenance needs of the building etc., and arrange for the work to be done and arrange for payment by the Body Corp Manager.

 

[Rob Williams]

Thanks John.
The interesting thing about my situation is that I own most of the villas in the group, so even though the saving per owner in body corp fees is not huge, in my case it's a few times more than the other 2 remaining owners will save.
The main problem for us was the fact that they management co. was engaging a gardener who was overcharging and despite many requests, the issue was never addressed.
With only 3 owners in the group, it seems to make sense to self manage.
I've since read the Strata act (thanks 1080) and it is made clear in there that the strata corp has the right to open an bank account, so it seems the person at the bank got it wrong (I'm shocked to hear that!).
Thanks for the replies guys.

 

[john]

Hi Rob

Yep in your situation probably better to do your own thing if you have the time. The more efficiently you maintain your complex, the easier to rent out and the easier to sell. Doing your own management now will save you learning the ropes when you eventually buy the remaining units and are the sole owner!

 

[yadreamin]

Hi Rob,
The self managed strata is a mine field to enter. Been there done that.
So many little things can trip you up and be legally challenged over.
Do you have[currently] a council of owners? if so then they should be making the decissions on gardens, maintenance etc. Then they inform the strata manager what to do.
Because the Strata manager did not listen to the owners requests then that will or should give grounds to sack them. You should check the Management agreement first though just to make sure you follow the rules and it doesnt cost you more than you think. How long has the current contract left to run?
Each strata management should have a council of owners.

Here in the wild west there is a 6 week course that any jo blog can do and then become a Certified Strata manager. It is run by the Strata Institute of WA.
Check for the same in SA.
There is a huge amount of work in being a strata manager.
You must make sure all you i, s are dotted and T,s crossed. The paper work is never ending.
Good luck Rob and look long and hard before you jump in.
Just one more thing .
Who will run it or take over from you if you go for a nice 6 months holiday to some nice warm beach?
cheers
yadreamin

 

[Silver.]

Hi Rob.
I'm a strata manager, and ive heard stories of people who've tried to manage it themselves and have always come back to the Strata Manager. It's a complex thing if you don't know what you're doing and can get very messy. I dont know what fees you were being charged, but for as little as $150 per unit, per annum you can get a strata manager to do all the work and take the hassle away, i think its best left to the professionals.
Also. How big is the strata scheme.
Goodluck in whatever you decide.