The concept of a management body should be fairly clear to a
Management Corporations' Council' members or even many long-time strata
property owners. For non-involved owners and residents - especially
first-time owners - this form of common-interest 'governance' can be
perplexing and, at times, bewildering., what with the many parties
(developers, managing agent, management council, other buyers) involved
as well as with the legal duties of each party.
Those who have never lived in an owners' corporation (condo, apartments, townhouses, gated communities) often do
not
understand the necessity of service charges, sinking fund, rules and
volunteering to sit in the management council. For them, the
'management' may be perceived as little more than a nebulous entity
that expects prompt payment on monthly invoices. This lack of
understanding can lead to miscommunication and misunderstanding with
the general perception that condo living is 'hard'.
Required by law
Call it by
whatever name, Joint Management Body (JMB), Management Corporation
(MC), Residents Association, they are all basically a community
association of property owners looking out for their best interest. In
the first two, it is a requirement by law for strata titled property
under the Strata Titles Act, 1985 and the new Building and Common
Property (Management and Maintenance) Act, 2007 ('BCP'), whereas
Residents' Association are voluntary organizations registered as a
society.
The new BCP Act now allows the formation
of a joint management body from the start and owners do not have to
wait till the first annual general meeting called by the developer to
have a say in how their investment is managed and maintained.
Very often, only a small percentage of
owners in condominiums or other types of strata titled development take
interest in how their properties are managed. This leaves the handful
of volunteers burned out after years of volunteering their services.
There are also some who are interested but do not have the knowledge or
skill to sit in the decision making council.
Challenging duties
In the BCP, the joint management committee representing the purchasers' should number at a minimum 5 purchasers, maximum 12. Whereas, in the Strata Titles Act, the Management Council should consist of, a minimum of 3 parcel owners, maximum 14.
Although
these are voluntary positions, it has to be taken seriously because it
involves people and their investments. Most owners' corporations are
headed by a leader who might also be the chairman at meetings. Strong
leadership is an essential component of every successful owners'
corporation. Very often, those who speak the loudest at meetings are
elected which may not be sufficient for the long term.
A good leader can make a difference for an
owners' corporation spirit. By considering the strength and qualities
it takes to succeed, selecting your leader can in a very real way, lead
to a more productive and happy community. Here are some tips on how to
choose the leader of your home community.
"A manager does things the right way and a
leader does the right thing." A leader is someone who not only
recognizes the "right thing," but who can also motivate others to help
him get the right thing done. Strong leaders should have skills,
knowledge, and experience plus the abilities to motivate and command.
How do you recognise who has this special
combination of insight and inspiration? There are personal
characteristics that point to strong leadership style. Look for people
who display these particular abilities:
- Ability to take criticism
- No one in a position of power will escape criticism. Leaders have the
ability to discern when criticism is valid and when it is not.
- An open mind - A leader must be
able to approach a problem creatively. Perspective is an invaluable
leadership tool. A council/committee that is afraid of change will
stagnate.
- Communicate well - Explains,
persuades and praises. Some volunteers are not particularly articulate,
yet are valuable and productive. Leaders should be able to express
ideas clearly and persuasively.
- Decisiveness - Taking a stand
involves making mistakes. A good leader takes a stand and if an error
is made, acknowledges it and makes a course correction.
- Enthusiasm - Enthusiasm is
contagious. With it, council members are motivated to keep
volunteering. Without it, voluntary work becomes a burden.
- Leads by example and promotes teamwork
- Arrives on time, never shirks responsibilities and demonstrates good
work habits. Instills cooperation among volunteers, making it easy for
them to pitch in together. Pitches in along side others and not just
issue orders for others to follow-up.
- Listens to others - Source for and uses other's ideas and gives credit when credit's due.
- Problem solving skill - Uses knowledge and experience to help get the job done.
- Sensitivity
- A genuinely caring leader inspires confidence in others. Confidence
leads to results. Leaders delegate, give and seek constructive
feedback. A leader knows how and when to give praise. Praise is the
simplest and often the most valued form of reward. A leader knows how
to criticize constructively: pointing out what is wrong without
attacking personalities. A good leader seeks opinions and ideas from
others.
- Sound judgment - Has the ability to identify and prioritize issues. A good leader then weighs alternatives carefully before making decisions.
- Takes responsibility - Never blames others for problems.
- Vision
- A strong leader understands and promotes the community's best
interests. Leaders set goals, communicate what's needed to achieve them
and then move toward them.
Here are some tips to consider when electing the leaders of your owners' corporation:
- A
leader should understand the functions of the owners' corporation and
be familiar with significant historical events of the community.
Newcomers frequently make good volunteers. However, there are some
situations which call for someone possessing a historical perspective.
For example, if the corporation is in the midst of a sensitive
litigation or a new management contract, a newcomer might detract by
insisting on covering old ground again.
- How much interest has the candidate
shown in the community and its undertakings? Has there been regular
meeting attendance and participation in activities? If not, investigate
the sudden interest. Be particularly careful about "one-issue"
candidates who volunteers because they dislike a certain contractor or
are opposed to a recent service charges increase.
- A candidate should not have
conflicting personal and professional commitments. For example, a high
public profile candidate may have numerous commitments that mean
infrequent participation.
If all the
above sounds to you like a mini-government, it is in fact one. If you
own a property with common property, you automatically become a member,
like it or not. Over time, we have noticed that home owners can be
categorized into three groups; those who make things happen, those who
wait for things to happen and those who asked what happened. Which
group do you belong to? Choose your leaders well and prosper or wait
for the next election at the annual general meeting and run for council
member post.