The building manager runs a business that is commonly known as “management rights”. Terms that are defined under the Body Corporate and Community Management Act, which apply to a resident manager are
- “Management Rights” –
- The letting agent business for the Scheme (including the letting authorization), and
- The business conducted by the letting agent under a service contract for the scheme, and
- The letting agent’s interest in a Scheme Lot used in conducting the business, and
- Any right of the letting agent to use and occupy part of the common property for the business.
- “letting agent” – is a person authorized by the body corporate to conduct a letting agent business for the lots in the community titles scheme.
- “service contractor” – is a person (other than an employee) who provides services for the lots or common property under a contract with the body corporate of one year or longer
The management rights business has two aspects to it, both of which come from contractual privileges, rights and responsibilities with the body corporate. The contract form must comply with strict requirements. The body corporate enters into a contract with the building manager to either preform or to supervise the on site caretaking of the common property. Caretaking usually involves maintenance style services. For these services the body corporate will pay the building manager remuneration in accordance with the agreement. Secondly, the body corporate authorises the building manager the right to run an on-site letting business for the owners that wish to take advantage of this service.
These duties are entirely different to the function performed by SSKB. SSKB provides administration services for the body corporate. SSKB is a “body corporate manager”.
Duration of Building Manager’s Contract
The maximum duration of the building manager’s contract will depend upon the Regulation Module applicable to the management contract. The length of the contract may be no more than 10 years from the day of the resolution approving the contract but can also be extended for further terms of five (5) years in accordance with the Body Corporate and Community Management (Accommodation Module) Regulation 2008
Building Manager’s Role
The caretaking services provided by the building manager are specified in the caretaking agreement between the resident manager and the body corporate. Usually, the building manager will be responsible for duties such as maintaining the garden, mowing lawns, cleaning, lifts, lobbies, changing light bulbs, and overseeing refuse collection.
The Building Manger also plays an important role in confirming work has been done (to the standard required) by the other body corporate contractors and service providers, and authorizing accounts as suitable for payment. Although the building manager’s letting business arises from an agreement with the body corporate, it is not within the power of the body corporate to monitor the performance of this service, as letting of lots is a contractual agreement directly between the building manager and the owner of the rental lot.
Resident Manager’s Report to the Committee
The manager’s report to the committee is an important part of the committee meeting. As the building manager is both the eyes are the ears of the body corporate on-site, it is essential for the committee to be brought up to speed with cleaning, maintenance and by-law issues. This is done most effectively with a written report that is prepared by the building manager before the meeting and circulated with the notice of a meeting but can also be provided at the meeting.
Building Manager’s Remuneration Increases
The management agreement generally provides for annual increases in the remuneration in accordance with a fixed percentage, or in accordance with the inflation rate. It is the building manager’s responsibility to lodge a request for the remuneration increase at the relevant time.
Assignment of the Management Rights
One of the significant events that will from time to time confront the body corporate is the request from the incumbent building manager for the body corporate to content to the assignment of the management rights from that building manager to another person, company or trust. The assignment of the management rights is an event that is contemplated by both the body corporate and Body Corporate and Community Management Act 1997 and the management rights agreement between the body corporate and the building manager. It is a right of the manager to request and be given consent to the transfer of the management rights, providing the incumbent building manager meets certain pre-conditions.
Committees Working with their Resident Manager
Often committees and building managers need to temper their expectations of one another.
Every building manager has a different skill set, experiences, temperament, and goals and expectations for their time as the building manager of your building. However, as a service contractor, the committee is entitled to expect the building manager to perform to a high commercial standard the duties prescribed in the management agreement.
Since 1995, SSKB has been the industry leader in strata management. Servicing clients through Queensland, New South Wales and Victoria, we have a broad portfolio of schemes under management and pride ourselves on having the most experienced and skilled management team in the industry.
SSKB builds strong relationships with their committees and their building managers, click here to make the switch to SSKB today.