If it\u2019s been a while since you read the BCCM Act<\/a> and\/or Code of Conduct, here\u2019s a quick refresher.<\/p>\n Under the Act, resident managers are required to:<\/p>\n There is of course a lot of other legislation that you need to stay on the right side of, and there\u2019s also the schedule of duties you\u2019re contracted to perform on a regular basis. This is a common source of conflict between resident managers and other owners or the Committee, as there are often disagreements over what the caretaking\/maintenance contract actually says you have to do.<\/p>\n Review your schedule of duties, and review it often. Take note of how much work is involved in each task, and keep records of everything you\u2019ve done. By keeping diligent records, you\u2019ll be protecting yourself from two angles: if the body corporate accuses you of not fulfilling your duties, you\u2019ll know exactly what you have and haven\u2019t done, down to the last letter; and if you\u2019re regularly performing extra work for no additional compensation, you\u2019ll have documented proof with which to negotiate an amendment to your contract.<\/p>\n The issue of sketchy role descriptions is more common with older agreements, however even if yours is fairly fresh there\u2019s no reason not to keep records of your workload – as we\u2019ll see as we go through this list.<\/p>\n Don\u2019t: Go above and beyond without showing it<\/strong><\/p>\n If your agreement mentions \u201cregular gardening and maintenance\u201d, does that mean once a week or twice? Chances are, the other owners won\u2019t all agree on the answer either. The pool cleaning schedule is usually very comprehensive, but can you say the same for the gutters, windows, or other items in the common area?<\/p>\n There have been numerous cases of management rights purchasers who have moved into their new scheme and started work, only to be told that they\u2019re expected to do more than their contract states, based on what the previous manager did for free.<\/p>\n If you\u2019re looking to sell your MR business, putting these additional duties in writing will give your prospective buyer a better picture of the expected workload – and it could earn you a higher asking price too.<\/p>\n Ask yourself: am I going above and beyond my responsibilities<\/a>, and do I have anything to show for it? If not, there\u2019s no time like the present to start keeping better records of what you\u2019re doing.<\/p>\n Do: Focus on communications above all else<\/strong><\/p>\n Keeping records is one thing, and maintaining excellent communication is another – though it flows on as a direct result.<\/p>\n As they say in any business, communication is key. The better your documentation of what exactly you\u2019re doing, the better you\u2019ll be able to draw on evidence (email chains, phone records, invoice and transaction receipts) to communicate – in a timely manner – what exactly is going on in your scheme.<\/p>\n Being the proactive one in the relationship will stand you in good stead, especially if your OC needs to be reminded about who\u2019s taking the initiative, and how long it\u2019s been since something was brought to their attention. In the long run, this\u2019ll all add up to a tighter ship, a better dynamic between you and the body corporate, and if the other owners know what\u2019s good for them, a larger letting pool for you.<\/p>\n Don\u2019t: Over-involve yourself<\/strong><\/p>\n There\u2019s a difference between being a proactive communicator and being seen as overly nitpicky. Tread the line carefully, especially where there are internal politics at play.<\/p>\n Your role as the onsite manager isn\u2019t to lobby or over-involve yourself beyond your legislated rights (e.g. as a non-voting committee member), so it\u2019s probably not a good idea to allow yourself to get too deep into the interpersonal agendas of your fellow owners.<\/p>\n When selling your management rights business or having it valued, you won\u2019t want any of this ongoing conflict to be on the record. So if, you\u2019re abiding by the previous tip (knowing your role, sticking precisely to it and keeping records), then it\u2019ll make sense to never let your involvement in these types of disputes become an issue.<\/p>\n Do: Get on top of your finances<\/strong><\/p>\n It might sound obvious, but you\u2019d be surprised at how many management rights businesses fail to make the most of their financial position.<\/p>\n Speaking to an expert accountant or financial advisor with prior management rights experience is the best place to start, but there are a few basic steps you can take yourself.<\/p>\n For starters, if you qualify as a small business operating from a home office, you\u2019ll be able to claim relevant expenses, including office equipment, phone and internet, and whatever other running costs you incur (though you\u2019ll only be able to claim the portion used for your business, and not in your home).<\/p>\n You should also brush up on your bookkeeping \u2013 you\u2019re running a business, so if you want to sell it, you\u2019ll do a lot better if you can show how well it\u2019s running, rather than just relying on market appreciation. Regularly do the calculations on how long there is left on your contract, and work with your accountant to work out best- and worst-case profitability scenarios.<\/p>\n As for insurance, make sure you\u2019re covered for both public liability and professional indemnity insurance. This\u2019ll protect you against claims that might arise due to alleged errors, omissions or negligent acts. If you\u2019re found to be in breach of your professional duty, you could find yourself being fought for financial losses, personal injury, or property damage.<\/p>\n Don\u2019t: Exploit your position for financial gain.<\/strong><\/p>\n There are times when your entrepreneurial ambitions may need to take a back seat – particularly if they clash with what\u2019s written in your contract. Just as it\u2019s now illegal for retailers to charge flat-rate surcharges on credit card transactions, the same goes for your \u201cresourceful\u201d reduction of standing expenses.<\/p>\n Subcontracting work to third parties is a common sticking point: you may be able to find someone to do the work for less than your estimated hourly rate, but unless your contract explicitly allows you to outsource, you could be in breach of your terms. After all, the whole point of hiring onsite managers is that it\u2019s meant to be cheaper than having everything outsourced to third parties.<\/p>\n Secondly, your owners want someone to be available 24\/7 (or close to it) so if you\u2019re making yourself less available than you should be (based on your contractual terms), then they have every right to kick up a stink.<\/p>\n Again, if you\u2019re keeping accurate records and reporting regularly to the body corporate, this type of thing probably won\u2019t have a chance to arise.<\/p>\n Do: Be the Owners Corporation\u2019s eyes on the ground<\/strong><\/p>\n As a contracted service provider reporting to the body corporate, it\u2019s your job to report any breaches or wrongdoing in a timely manner. This doesn\u2019t only apply to partiers or parking infringements – it also includes any maintenance or caretaking issues affecting common areas.<\/p>\n In practice, this means being proactive. Do your regular inspections in your letting pool and stay well aware of any structural problems – before they become huge money pits. Roofs, gutters, leaks and other slow-progressing damage might not be easy to spot if you\u2019re looking at it every day, but if you\u2019re keeping records and performing all the correct inspections (or having someone perform them for you) then you could just save the scheme – and yourself as a member owner – a lot of money.<\/p>\n Don\u2019t: Overstep boundaries<\/strong><\/p>\n If you spot an issue or think you need to file a notice of breach, follow the rules. Always report to the body corporate and seek approval before taking any action – aside from it being the right thing to do, you\u2019ll also be safe in the knowledge that they\u2019ll have your back if you encounter resistance or non-compliance.<\/p>\n Naturally, some owners and tenants will also feel uncomfortable if you\u2019re constantly nosing around; while this is hard to avoid when you\u2019re trimming lawn edges or cleaning stairwells, keep in mind that some people like their privacy.<\/p>\n Do: Grow your letting pool<\/strong><\/p>\n Rental commission is the biggest earning factor you can directly influence, which is why it\u2019s so important to follow the points above.<\/p>\n Playing by the rules, being proactive in your communication and doing your best to keep the scheme running smoothly will ultimately give the other lot owners a good reason to pass their rental management over to you. After all, you already know the complex like the back of your hand, you know how to sell it, and if you\u2019re doing a great job for the other landlords in your letting pool, word of mouth will spread.<\/p>\n You\u2019ll be hard pressed to find an external property manager who can come close to servicing the tenancy as well as you can, so make the most of your position. Stay up to date with market prices in your area and adjust them quickly (with the owners\u2019 approval, of course), learn the pros and cons of each individual lot, and invest in some decent photography.<\/p>\n Be fast and responsive (and affordable) with your maintenance call-outs, be thorough with rental application reference checks, and keep accurate records of all communication. You\u2019ll be a shoe-in.<\/p>\n Don\u2019t: Treat non-clients differently<\/strong><\/p>\n They say management rights is a \u201cpeople business\u201d, and it is. But sometimes this goes the wrong way.<\/p>\n Some onsite letting agents have been known to treat non-clients a little differently – knowingly or unknowingly – especially when it comes to maintenance requests, handling complaints, or just saying hello.<\/p>\n The best argument for treating everyone with the same priority is that the people who aren\u2019t in your letting pool are your single biggest chance at building your rental management income: they\u2019re your prospective clients, and you won\u2019t win them over by giving them the cold shoulder.<\/p>\n Do: Be the Body Corporate\u2019s financial ally<\/strong><\/p>\n Your role is likely different to that of a strata or body corporate manager (i.e. you\u2019re not responsible for administrative tasks) but by understanding what the body corp needs, when it needs it and in what format, you\u2019ll be growing your reputation – and in the long run, your potential rent roll.<\/p>\n It\u2019s about adding value. If you can offer support where the body corp needs it, you\u2019re making yourself indispensable. As an asset to the smooth running of the complex, you\u2019ll not only improve your image in the eyes of the owners and tenants – you\u2019ll also strengthen the ongoing value of your business.<\/p>\n Do: Upskill or look into other profitable side services and revenue streams<\/strong><\/p>\n If you\u2019re not already licensed in real estate sales, you should think about doing the extra two days\u2019 training. Just as you\u2019re better placed than external agents for managing rentals, you\u2019re also better placed for selling lots. You know everything there is to know about the scheme (including existing maintenance issues, potential future costs, specific rental yields and vacancy rates, and so on) so it makes sense to use this knowledge to your advantage.<\/p>\n For mixed and short-term complexes, there\u2019s also the possibility of extra income from offering side services, such as unit cleaning, car hire, linen hire, tour bookings, and other affiliate\/commission-based partnerships you can run with nearby businesses.<\/p>\n Don\u2019t: Lose sight of the basics<\/strong><\/p>\n It\u2019s all very well trying to find extra ways to earn some bonus dollars, but none of them will matter if your business isn\u2019t the well-oiled machine it should be. Focus on the basics first: know your duties and the legislation, keep accurate records, communicate regularly, report consistently, and help the committee and body corporate by giving them the information they need to make decisions.<\/p>\n If you\u2019re more of a people person than an organisational genius, play to your strengths. Likewise, if you have a knack for spreadsheets and record-keeping, let this guide your management style. But every now and again, remind yourself: a successful business is only as good as the sum of its parts, so try to tick as many of the boxes as you can.<\/p>\n When it\u2019s time to extend or sell your management rights, future you will thank you.<\/p>\n","protected":false},"excerpt":{"rendered":" When running a management rights business, it\u2019s so easy to get so caught up in the day-to-day that you forget you\u2019re not just an employee doing a job, but in fact a business owner and investor. It\u2019s understandable – if you\u2019re spending all your time listening to complaints and getting covered in bin juice, it\u2019s not hard to lose sight of the reason you first went into management rights: to enjoy a better work-life balance, to semi-retire, or to build a nest egg off of your letting pool income. Unfortunately, there\u2019s no secret get-rich-quick method to running an effective, profitable management rights business. But thereRead More →<\/a><\/p>\n","protected":false},"author":1094,"featured_media":729,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mbp_gutenberg_autopost":false},"categories":[8,19,6],"tags":[],"_links":{"self":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/727"}],"collection":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/users\/1094"}],"replies":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/comments?post=727"}],"version-history":[{"count":3,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/727\/revisions"}],"predecessor-version":[{"id":738,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/727\/revisions\/738"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media\/729"}],"wp:attachment":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media?parent=727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/categories?post=727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/tags?post=727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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<\/a>Just because you live onsite and have a vested interest in how your complex looks, that doesn\u2019t mean you should feel obligated to do more than your contract states.<\/p>\n![\"\"](\"https:\/\/www.theonsitemanager.com.au\/news\/wp-content\/uploads\/2017\/11\/nosey-196x300.jpg\")
<\/a>There\u2019s a fine line between being proactive and being a busybody: know your boundaries and rights, and don\u2019t overstep them. Some managers take it too far, letting themselves into other people\u2019s lots without the required notice or justification, or taking it upon themselves to enforce body corporate rules without consulting anyone first.<\/p>\n