Continuing our series on what to look out for at your first AGM, one of the major decisions you may have to make is whether or not to have a building manager and who that person should be.
This is your and your neighbours’ decision and no one else’s. Once you get up to 100 units, a competent, reliable and honest building manager is almost essential.
What you want is an independent expert who knows how to deal with tradespeople, owners, residents, and commercial entities and can tell the difference between defects and maintenance issues. What you are offered may be very different.
For instance, the developer may suggest you sign up a building manager employed by them or a subsidiary. Given that you want your building manager to help you identify building defects – and all new buildings have some defects – why would you imagine an employee of the developer is going to help you to cost his bosses money? Just say no.
Or you may find that the developer has sold an apartment to a full-time residential manager and expects you and your fellow owners to endorse the deal that could, in a building of 200 or more units, have earned them a couple of million dollars.
How do you think this residential building manger going to make a profit on their investment? You will have to pay the building manager’s wage – at a rate they have set – plus a premium so they can make a profit.
It’s a nice financial double-dip for the developer and it’s also another drain on your finances.
This manager may also decide to supplement their income by letting out flats in your building. Many blocks have discovered that owner-investors become second class citizens in their own homes for the simple reason that they are not bringing in additional income for the managers.
Your building manager should be saving you money rather than costing you, without compromising the level of service. They should be looking after all residents equally and have the expertise to help you through the maze of defect regulations and claims.
Anything less than that and you are being ripped off.