Evaluating an incumbent or proposed new Owners Corporation Management team can be a challenge – and let’s face it – most incumbents aren’t keen to open that can of worms.
Despite the challenge, testing the market for stakeholder value is part of the responsibilities of each committee member.
This website has been created to assist OC committee members to identify the key performance indicators for assessing their current OC management provider.
At the core of any assessment are three key areas for review:
1. People: Registered, Qualified & Experienced?
First things first – in Victoria, all professional OCM’s must:
- Be registered with the Business Licensing Authority
- Be engaged under “contract of appointment” in the approved form
- Carry professional indemnity insurance for the prescribed amount
- Hold all money on behalf of an owners corporation on trust
- Account separately for money held for each owners corporation it manages
- Report to the owners corporation at each annual general meeting
- Report to the committee as required
- Lodge an annual statement with the Business Licensing Authority
- Act honestly and in good faith.
A manager’s registration and history can be checked on the Business Licensing Authority’s public register of owners corporation managers.
2. Process: Systems and Support Services?
Service delivery is only as good as the processes in place. Professional OCMs provide a range of support services delivered within a proven process framework to ensure the smooth running of these complex facilities.
Typical Support services include:
- Qualified Administrative Support to ensure timely handling of queries, issuing of agendas, minutes, notices and building circulars
- Professional Finance Support to ensure all accounts are managed according to best practice fiduciary standards. Quality processes & procedures are in place for cash management, budgeting & forecasting and the collection of arrears, ensuring accountable and transparent management of all OC funds
- Professional Insurance Advisors to provide industry relevant information and advice regarding coverage and negotiation of best rates and terms.
- Building Services Teams comprised of experienced industry professionals to support proactive building maintenance and operations management.
- Legal Guidance from experienced advisors to provide assistance to committees and owners in relation to OC legislation and related acts and laws.
3. Performance: Measurable, Accountable & Transparent
Professional OCMs are open to review, held accountable to their OC committee and transparent in all aspects of their performance.
Here’s a 10 point checklist of indicators that your facility is being well managed:
- Regular Committee meetings including the AGM (with comprehensive minutes to set agendas)
- All Owners Corporation records are complete
- Buildings are comprehensively insured to current value.
- Legislative compliance reports are up to date
- Levies are issued regularly (outstandings are recovered quickly)
- Maintenance Fund deposits that meet forecast demands
- Few outstanding maintenance issues/few complaints
- Few contravention notices
- High levels of stakeholder satisfaction!
- A glowing “Pre-Purchase Strata Report”
Number 10 is often overlooked, but this is the key to maintaining and growing the value of your residential investment!