You are likely to be a member of an Owners Corporation if you own a flat, apartment or unit in Melbourne- so what are the benefits for you and what do they do?
What is an Owners Corporation?
An Owners Corporation is the group responsible for managing the common property of a development. This can be residential, retail, industrial, commercial or mixed-use property, but for this article, we will primarily focus on residential Owners Corporation.
Common property includes communal outdoors areas, entrances and exits, hallways, parking spaces, lifts; any area deemed to be common property as per the plan of subdivision.
What is the Owners Corporation responsible for?
- The management of all common property.
- Insurance, maintenance and repairs for common property.
- Administration fees, statements and records for all expenditure.
- Maintaining registers, certificates and procedures for all lot owners.
If you own property in an Owners Corporation development, you will automatically become part of the Owners’ Corporation.
What are the benefits for investors?
Property maintenance: A diligent Owners Corporation, in conjunction with your Owners Corporation Manager, will preserve, improve and repair common areas in a timely manner and will ensure the repairs are to the highest standard. What this means for you, is less time and effort managing surrounding areas to your property.
Independent resolutions: It is inevitable challenges will arise between lot owners. A competent Owners Corporation will appoint a dedicated manager, who acts as a fair and independent arbitrator between lot owners. This will reduce your time finding a resolution, and ensure the outcome is fair.
Insurance: The combined fund of fees from all lot owners will mean the Owners Corporation Manages ensures your property has comprehensive insurance, with no need for you to maintain an individual building insurance policy. Owners will need to arrange their contents insurance.
Minimised reporting: The Owners Corporation Manager can handle all building-wide paperwork that you may otherwise have to complete as an individual lot owner.
Overall, an Owners Corporation acts as a protective layer around your property. Much of the essential administration, maintenance and insurance work can be handled by a committee if there is one, or dedicated Owners Corporation Manager.
Choosing the right Owners Corporation Manager for your property is of paramount importance, and no one is better suited than Nelson Alexander. With experience in Owners Corporation Management across Melbourne and Regional Victoria, and an extensive 16 office network powering one of Victoria’s largest property portfolios, your property will be in safe hands by our Owners Corporation team.