Making the right call
Monday 29 January 2018
Selecting a high performing body corporate manager for a commercial property might be difficult, but it can be done.
Body corporates have long been a source of bemusement and frustration.
Now, thanks to the rise of apartment living and an increase in mixed use commercial properties, they are coming under greater scrutiny.
But they have long been a fact of life for many commercial investors.
Despite this, confusion about the way they work remains – and that often leads to problems.
The relevant legislation, which is currently under review, is outdated and complex. And, on top of this, multiple owners makes for multiple, often opposing opinions.
For these reasons, it usually pays for a body corporate to employ a professional body corporate manager.
Costs aside, the reality is that well run body corporates attract better tenants, and rents, and are more attractive to buyers.
Unfortunately, horror stories about less than effective body corporate managers are prevalent.
So, in this month’s issue of NZ Property Investor magazine, we talk to some experts and put together a comprehensive guide to what commercial investors need to know when selecting a good body corporate manager.
Here’s our experts’ top five tips on what to watch out for in a body corporate manager:
1. Watch out for managers who have the wrong drivers, get into conflicts, and/or are too litigious or confrontational without their clients’ best interests in mind.
2. A manager should never attach liability to their clients either directly or indirectly
3. A manager should not be biased when it comes to disagreements between owners or when chairing general meetings. They must remain neutral with a view to actively promoting the best direction for the overall group.
4. A manager should never use proxies to vote at general meetings in order to further their own agenda.
5. Communication is key and yet the biggest issues tend to be with communication. Bodies corporate wish to be kept regularly, well and accurately informed by their manager. Be wary of managers who don’t ensure this.
But to read our full guide on how to select a high performing body corporate manager, click here to get the digital issue of NZ Property Investor magazine.
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