Whether it’s an investment property or your home, when you buy a townhouse, flat or apartment in a multi-unit development you’ll automatically become a member of the owners’ corporation.

The job of the corporation is to look after the common property of the development. This covers a range of obligations including repairs and maintenance, taking out insurance and keeping financial records.

Not surprisingly, many owners seek professional help and appoint an owners’ corporation manager to take care of the hard work.

A manager may be a volunteer or a paid professional. Paid managers must be registered and hold professional indemnity insurance. There’s no requirement for volunteer managers to be registered or insured, so the professional option is usually the safer way to go.

Here are some tips for appointing an owners’ corporation manager:

Appointing your manager

The first step is to find the best owners’ corporation management for your property and do some research to ascertain whether an owner’s corporation manger is reputable and experienced. Once that is decided, there are a few formalities to be completed.

The owners’ corporation as a whole can make the appointment or the decision can be delegated to a committee, sub-committee or even a single lot owner.

Whichever approach is taken, it must be supported by a resolution put to a meeting of the owners’ corporation or by ballot.

If the appointment is made at a general meeting, the powers and functions can be delegated at that point.

A written contract of appointment needs to be prepared and authorised to document arrangements.

Delegation

The duties, powers and functions of the corporation are delegated to the manager via an instrument of delegation.

The manager is then able to act on behalf of owners. However, anything that requires a decision of the owners at a general meeting, or a special or unanimous resolution, cannot be delegated.

Owners need to understand that the corporation remains legally responsible for the actions taken by a manager on its behalf.

Replacing an existing manager

When appointing a new manager, it may be necessary to remove an existing one.

The process may be set out in the original contract of appointment, or it may be necessary to put it to a vote, either at a general meeting or via a postal ballot.

Need help?

If the thought of navigating the complexities of appointing an owners’ corporation manager is enough to make your head spin, don’t worry.

LDB Group offers a comprehensive range of property services including management of residential, commercial, industrial and retail owners’ corporations.

Give us a call on (03) 9875 2900 or complete the form below, and discover how we can take the hassle out of your owners’ corporation management.