The self managed body corp thread...

Discussion in 'Property Management' started by hammer, 29th Dec, 2016.

Join Australia's most dynamic and respected property investment community
Tags:
  1. hammer

    hammer Well-Known Member

    Joined:
    26th Jul, 2010
    Posts:
    2,343
    Location:
    Darwin
    Anyone here part of a self managed body corp?

    Any strategies you've developed over time?

    Any tools or tips?

    Hoping this thread will turn into a good resource over time for anyone self-manging....
     
    hammer, 29th Dec, 2016
    #1
    Tony Fleming likes this.
  2. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    9,447
    Location:
    Brisbane
    Did it once... never again! :eek:

    Our BC votes were based on the number of toilets per unit (weird but true). I went half share with my father in a brand new six-pack. There were five units, four two bed, one bathroom and a "penthouse" with three toilets.

    This joker decided he wanted to dig up the brand new driveway because it held a puddle of water after rain. He had three votes and just needed to get one of the other four owners on board in order to call in a special levy to replace the brand new driveway :eek:.

    Luckily the other owners were young women who stood their ground. None of us saw a reason to rip up a perfectly good driveway and certainly enjoyed not giving in to the bully with the "penthouse".

    Dealing with that man put me off every wanting to buy anything with a BC ever again.
     
    wylie, 29th Dec, 2016
    #2
    Russ likes this.
  3. charttv

    charttv Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    295
    Location:
    Perth
    yeah. i'm the chairman of mine...i've found sticking every document into a shared google drive to be very helpful.
     
    charttv, 29th Dec, 2016
    #3
  4. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    9,447
    Location:
    Brisbane
    I'd also add that our son works for a BC management company. He deals with this stuff daily and even when the BC pays for management, they still have input and it seems there is always one or several busy bodies, know-it-alls and annoying people on every BC.
     
    wylie, 29th Dec, 2016
    #4
  5. hammer

    hammer Well-Known Member

    Joined:
    26th Jul, 2010
    Posts:
    2,343
    Location:
    Darwin
    I've just been pulled into mine. 4 units, all of them great friends. It's run by the two owner occupied units, mine and one other.

    It's been running fine for 20 years but I worry that there's no redundancy...One person has pretty much looked after it. If they keel over/turn to evil..what do we do?

    Also how does a self managed body corp collect funds should someone decide not to pay?

    Luckily the other owner is happy to look into this and develop something a bit safer.
     
    hammer, 29th Dec, 2016
    #5
  6. Tony Fleming

    Tony Fleming Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    705
    Location:
    Sydney
    I've got a few that are self managed. Much cheaper than a proper BC.

    It's good to have a mix of owner occupiers and investors involved. I've found as the only investor in a complex they are always trying to spend money to make the place more presentable rather than long term planning for construction issues. So I'd be wary of that.

    It's really a honour system when it comes to paying. We had one guy fall behind and they kept sending him letters and they didn't think they were allowed to charge him interest(how would they declare it etc). He did catch back up but I imagine it would be more difficult to chase up as individuals.
     
    Tony Fleming, 30th Dec, 2016
    #6
    wylie and hammer like this.
  7. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    19,228
    Location:
    Sydney or NSW or Australia
    Exactly the same way as they would account for interest on the bank account - interest earned in the GL.

    Great issue raised regarding spending - the strata manager generally creates a 10 year budget for capital works which is then used for the basis of sinking fund contributions.
     
    Scott No Mates, 30th Dec, 2016
    #7
  8. Angel

    Angel Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    5,199
    Location:
    Paradise, Brisbane
    Our TH is in a complex of 5 with two OOs and three landlords. Three of us pretty much run the BC as the other two owners work out west and dont really care as long as everything runs smoothly and there are no termites. The two OOs keep a good eye on everything as it is their homes. They deal with any tradies. So far so good.
     
    Angel, 3rd Jan, 2017
    #8
  9. balwoges

    balwoges Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,032
    Location:
    Lake Macquarie
    Many moons ago, I did this for an agency who managed a couple of strata property units, worst experience of my life, never ever ever would I do it again :eek:
     
    balwoges, 3rd Jan, 2017
    #9
  10. zac101

    zac101 Well-Known Member

    Joined:
    4th Jan, 2017
    Posts:
    123
    Location:
    Perth
    how does a two lot strata with common property work in WA? I guess all you need is just insurance for common property. No other strata fees or levies, right?
     
    zac101, 13th Jan, 2017
    #10