NSW Is it common to have building manager in small building

Discussion in 'Property Management' started by Bill2255, 10th Aug, 2022.

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  1. Bill2255

    Bill2255 Well-Known Member

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    Hi,

    Just curious if you guys think that it's common to have building manager in addition to strata manager in a 32 unit block. The strata pays additional $30,000 a year for building manager that was appointed recently.

    What is typically size of building you find the strata needs building manager.
     
  2. datto

    datto Well-Known Member

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    I wouldn't think so, not for 32 units. I'd imagine you'd need at least 100m units. What's this fella gonna do? sit in the corner somewhere and have coffees till the shift is over?

    I knew someone who was a security guard in a huge apartment block in the city. He reckons most of the time he was sitting around twiddling his thumbs.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    So about $1000/yr of your levies would go to the concierge.

    What are their duties? Is it value for money? Are they short stay apartments needing keys, check in etc?
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Can be common for let apartments where they may handle common guest arrival, mow and other issues like daily pool clean, BBQ and common areas etc
    Or its a rort by one owner. I would be asking why and what do they do and WHO is being paid
     
  5. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    Depends on the scheme and its amenities. Caretaking remuneration is nothing to do with any Letting appointment that may be in effect as well.

    A good exercise to go through is to see what it would cost to outsource all the duties and also take into account after hours and weekend and public holiday rates etc, and compare that to what the current spend is on the Caretaking contract, which for this size would be a "do all" without hours specified and generally an understanding of when things need to get done, for example, the Caretaker may essentially (is probably) be on call 24/7/365 not that they would be working all that time but when you consider the value in having that compared with paying a facilities management business or contractor ADHOC to attend for things like that, would cost a lot more.
     
  6. Bill2255

    Bill2255 Well-Known Member

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    Thanks a lot for everyone feedback.

    I should have mentioned that is not a onsite building manager. So not a concierge, etc.

    I think lot of work was around getting the defects in building fixed. But still one would question it.
     
  7. MB18

    MB18 Well-Known Member

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    I rented in a similar sized complex with an onsite manager who was employed/contracted by the strata manager.

    It depends what he/she does as to whether thats of value or not.

    The bloke in the building I was in was brilliant. He did the cleaning, bins, gardening, signed for courier deliveries, arranged trades and utlities access etc.
    It was a higher end complex with a lot of owner occupiers so he was probably easier to justify paying.
    That said, I was a tenant so I didn't directly contribute to the running costs of the complex anyway.
     
    Michael Mitchell likes this.