Why Onsite Management Works Better For Lot Owners?
Without a doubt, onsite management has a substantial advantage over property management by outside agents.
The Onsite manager is on the spot.
They have a hands on knowledge of the building and a very strong understanding of its requirements.
They know the other owners and tenants, and should be a far better judge of which potential tenants will be a good, harmonious fit with the other residents.
They have a vested financial interest in the well being of the building as a whole entity, as they have generally made a substantial financial investment in it themselves.
Good upkeep and maintenance is in their best interests also, not only from a business perspective, but also from a personal perspective.
They live on site, are in touch with what is going on, and will become aware of any potential issues far more quickly than an external agent, who is often only made aware of problems when matters become quite serious.
How Do You Protect Your Managements In The Letting Pool?
Why then, is it that losing managements from the Letting Pool continues to be a concern for management rights owners? ARAMA has recently held a series of workshops with industry specialist speakers, such as Danny Little, from Mgt Rights Advice and Service Consultants, Frank Higginson from Hynes Legal, John Punch from Short, Punch and Greatorix and Rusty Lush from RAAS, among others, aimed at providing the secrets of maintaining your letting pool and properties under management. In a recent article in AccomNews, John Punch discussed the key ingredients to a successful management rights business :-
(1) KNOW YOUR BUSINESS
(2) KNOW YOUR OWNERS
(3) COMMUNICATE QUICKLY AND EFFECTIVELY WITH THEM
His advice to onsite managers was to;
Build a strong relationship with every letting unit owner and with any new owner buying in to the complex;
Have the correct legal and professional relationship via a correctly completed Form 20a, regularly updated;
Understand how the Form 20a works as regards the “fixed” sections, with a properly filled out assignment clause, and the added terms and conditions;
Understand the 90-day right of termination and the limitations on commission and management fees, applying to a Form 20a;
Apply the code of conduct for letting agents under the BCCM Act;
Strictly comply with licensing requirements either with a RLA or a full licence whether or not utilising a corporate involvement;
Properly cover GST and comply with the code of conduct when attending to lease back arrangements;
Look for alternatives to lease backs, in order to properly protect management rights.
Your choice of accommodation software should assist greatly in managing the property and making effective communication so much easier. Having a centralised system to track all aspects of the management of the property simplifies your record keeping and makes it so much easier to provide the owner with all the necessary information, accurately, every time.
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