Prior to getting into any further discussion, it will be an only fair thing to know something first about the term body corporate first. Well, it can be referred to as a separate entity having its own legal body along with other responsibilities relating to a company. It can take legal actions, can get into the contracts, can indebt a property or credit the debts or loans. This type of entity may be subjected to any legal obligation such as payment of taxes etc. However, it manages and maintains the company assets. It is solely responsible to call a general meeting to sort out various issues relating to the company, maintaining the personal records of the members, keeping an update of the financial status of the company etc. In short, it can be called as the backbone of a company.
As mentioned earlier, there are several body corporate services to be performed by the same. First of all, when a body corporate is established, there are certain things that need to be put together in order to run a successful establishment. The very first thing it needs to do is to set up a fund that will cover all maintenance and repairing costs, premiums along with management and administration fees. However, these funds need to include provisions for future needs as well. In this concern, owner’s corporation managers have to donate to this fund as well. Now, the body corporate determines the amount that the owner has to contribute to the fund on the basis of a nominated value or the owner’s participation quota in the property. Now, the participation quota is based on the overall size of the unit whereas the nominated value is a flat rate that has been set already. Finally, all funds need to be put into the main account and has to be opened and operated by the body corporate itself.
Next, the body corporate management must have insured the buildings to the complete replacement value of the same in order to have precautions for fire along with other types of hazards that might occur any time. Once a building is insured, the body corporate must assign a registered owner for it. Moreover, a body corporate should also invest in liability cover that may help if any incidents occur in which the residents of the property get injured. Finally, the body corporate must maintain the common property in a regular basis so that it may remain in a good condition.
Several people who own their own properties usually opt for mange the investment by themselves. But sometimes, those landlords require a little bit more assistance. This is where the business of property management comes to the field. Now, there are basically three common conditions for which people opt to hire their services. First, when the client does not live near his/her rental property. In this case one needs to stay in touch with the management company to cope up with several challenges. Next, when the client has not enough time in the hand though they rely on hand-on management. And finally, the clients are not serious about the aforesaid hand-on management. Thus three conditions are needed to be fulfilled. Click here for more info on property management from Newcastle.