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Self managing an Owners Corporation

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Self managing an Owners Corporation
Most Owners Corporations (OC's) are managed by a professional/external management company. However some Owners Corporations are fortunate in having all the necessary skills in-house and decide to self-manage their property. Self-managed properties are typically small (3 to 9 lot) blocks of units where the unit owners aim to save money by delegating management tasks to one or more unit owners on a voluntary basis (and the voluntary factor is important because these persons must not receive payment for their services). Frequently one owner volunteers to take on all the tasks of managing the Owners Corporation.

This may often work well in the short-term, however over a period of time many self-managed Owners Corporations experience difficulty in handling the huge range of activities, large maintenance projects, paperwork and funds management that is required by law. This can be just as true of smaller Owners Corporations as it is for large ones. Many self-managed Owners Corporations become difficult to manage when a large proportion of the units are tenanted. As a result, difficulty is also experienced in remaining legally compliant, as well as in resolving potential disputes about everything from noisy neighbors to parking issues to maintenance problems. When this happens, the Owners Corporation often will seek the services of a specialist strata management firm like MBCM.

In our experience, self-managed Owners Corporations typically call for a quote from a management company when:

• The volunteer owner-manager has to resign from their Owners Corporation duties for any reason.
• Fees become difficult to collect from some owners (who may live in another state or even overseas).
• A dispute escalates and is deemed unresolvable. 
• Major maintenance or construction works are required.
• To ensure legal compliance.
• For any other reason (sometimes the task just becomes too onerous).
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Understanding-owners-corporation-disputes

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Understanding owners corporation disputes
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