Appointing a professional Owners Corporation Manager

Congratulations!

You’ve made the decision to appoint a professional Owners Corporate Manager to assist in running your Owners Corporation.

The new Owners Corporation Manager will have a close working relationship with the Owners Corporation executive committee – particularly the Chairperson and secretary – and will take on the substantial burden of day to day operations.

Your Owners Corporation Manager will guide you through the appointment procedure, but to assist you in understanding the process we’ve put together this summary.

First things first

Check the Consumer Affairs Victoria website for registration and insurance details – in Victoria, all professional OCM’s must:

  • Be registered with the Business Licensing Authority
  • Carry professional indemnity insurance for the prescribed amount or minimum $1.5M
  • Be engaged under “contract of appointment” in the approved form.

A contract of appointment is between the Owners Corporation (as a legal entity) and the manager (or their company), so it’s the Owners Corporation that is held legally responsible for the actions (and omissions) undertaken by the appointed manager on its behalf!

The Owners Corporation Manager’s legal powers and functions are:

  • Determined or delegated by the Owners Corporation at a general meeting or,
  • Determined or delegated by the committee
  • In terms of Contract of Appointment

So what will your Owners Corporation Manager do?

Here’s a short list of the basics….

Your Owners Corporation Manager will works closely with the Owners Corporation executive committee, in particular the chairperson, co-ordinating the daily operation of the Owners Corporation in areas such as:

  • Organising Owners Corporation executive committee meetings
  • Reporting at Owners Corporation executive committee meetings and AGMs
  • Collecting and banking fees
  • Attending to correspondence
  • Arranging quotations for repairs and maintenance
  • Ensuring required insurance coverage is in place
  • Invoice payment
  • Preparation and distribution of budgets & financial statements
  • Provision of Owners Corporation certificates
  • Maintenance of the Owners Corporation register
  • Maintenance of records
  • Arrangement of legally required audits and reports
  • Preparation and implementation of a grievance procedures
  • Providing assistance in the development and implementation of by-laws
  • Ensuring compliance with the Owners Corporations Act 2006, the Owners Corporations Regulations 2007 and rules.

So that’s the summary, but as always the “devil is in the detail”!

If you’ve done your homework and selected the right Owners Corporation Manager for your facility, you’ll find the handover is a liberating experience – as always it’s about having the right People, the right Process to deliver the Performance you’re looking for.

* This is a summary and should not be taken as legal advice. For a comprehensive explanation of roles & responsibilities we recommend you visit: https://www.consumer.vic.gov.au/housing-and-accommodation/owners-corporations