What does a body corporate do?
Body corporates, also known as strata corporations, play a crucial role in managing and maintaining shared properties and communal assets and spaces in multi-residential complexes like unit and townhouse developments. Here is a list of their main responsibilities.
Property management, repairs and maintenance
Property management is one of the primary responsibilities of any Mount Isa body corporate. Owners in the complex usually can vote annually for a body corporate manager and committee to represent them and make routine property management decisions on their behalf. Tenants don’t have voting rights in a body corporate scheme.
The body corporate manager and/or committee is responsible for overseeing the repairs and maintenance of common property areas, including landscaping, swimming pools, parking lots, leaking roofs, and recreational facilities like gyms.
This ensures that the overall property remains attractive and functional, enhancing property values for all residents.
Budgeting and financial management
Body corporates create annual budgets that outline anticipated expenses and revenue. They set and collect fees or levies from property owners to cover these costs. Sound financial management is essential to ensure there are adequate funds for repairs, maintenance and emergency situations.
Part of each owner’s body corporate fees are allocated to an administration fund to cover short-term expenses, while the remainder is allocated to a sinking fund to cover longer-term expenses.
Enforcement of rules and by-laws
Body corporates establish and enforce rules and bylaws that govern how residents should use and maintain their properties. These rules may cover issues like noise levels, pet ownership, exterior modifications, and more. Enforcement of these rules and by-laws helps to maintain a harmonious living environment and protects property values.
All property residents (both owner and tenants) must comply with body corporate rules and by-laws.
Mt Isa body corporates must ensure that the residential community complies with local laws and regulations. This includes building codes, safety standards, and zoning regulations. Failing to adhere to these can result in legal trouble and financial penalties for all owners.
In any community, disputes can arise among residents. Body corporates often serve as mediators or arbitrators to resolve conflicts and ensure that disputes are settled in a fair and impartial manner. This can range from neighbour disputes to disagreements about common area usage.
Body corporates are legally required to purchase insurance policies that cover common areas and shared facilities. This includes liability insurance to protect against accidents and injuries that occur in communal spaces.
The body corporate’s insurance is crucial to protect the interests of all property owners. However, property owners are responsible for their own contents insurance.
Meetings and communication
Body corporates are required to have an annual general meeting to update residents on community matters, discuss budgetary issues, and make decisions on behalf of the community.
Owners can submit motions to be voted on by other owners at annual general meetings or at other times, including suggestions for changes to rules and by-laws. If a majority of owners vote in favour of a motion, then the suggestion will be implemented.
More frequent meetings than an annual body corporate meeting may occur, and owners may also be contacted more regularly via emails or letters if necessary. Effective communication ensures that residents are well-informed about important body corporate issues or developments.
Record-keeping and disclosure statements
Body corporates are required to keep financial and decision-making records, as well as minutes of all meetings. They are also required to provide disclosure statements to potential buyers of accommodation in their complexes that outlines their current financial position.
If you’re thinking about buying, selling, renting or leasing any Mt Isa property, or you need your property professionally managed, then contact our team today for an obligation-free chat!
We’d be happy to provide you with advice and to answer any property questions you have.