I recently bought a unit in a 4 unit block. The body corporate was previously managed in house. That is, it was run by all the members. However, we have now decided to use an external body corporate manager. The fee the company charges is 1k a year, so pretty much $250 extra per unit per annum. Is this a cost worth paying? What are the pros and cons of hiring an external body corporate manager? We were told if we are doing it ourselves and something went wrong on common land and we did not have adequate insurance we could be sued? Whereas now the body corporate manager takes on the liability? Is the extra $250 a year worth the extra cost or should we continue to keep it in house?
Where is the property located ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
like everything else in life, if you are inadequately insured you will be liable for the shortfall. This goes for public liability, workers compensation, buildings, office holders etc. The strata manager will not take up the excess liability. They will recommend levels of insurance required, budgets for the sinking & administration funds etc.
Usually money well spent on larger complexes but if there are few issues or arrears, a small block should be able to do it themselves.
It is in Melbourne Australia
A 4 unit block.
Pretty much a shared driveway and very small common front yard as all 4 units have their own enclosed front yards w hich is not common land.
They are essentially 4 homes on a lot.
^sorry I am a bit confused.
Strata management is complicated, especially when there is disagreement. Went thru this recently. Messy tribunal.
Was very happy to pass the management onto a professional licenced strata mgr.
If you want advice on strata, Dept Fair Trading is excellent, very helpful.Good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Can you share your story? I would really like to know some potential real life issues that could arise
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