Widely known as homeowners’ associations or strata corporations, body corporates are ones who manage shared properties.
Primarily, the properties include multi-unit developments, such as apartment complexes, townhouses communities, and condominium buildings.
This comprehensive guide sheds light on what body corporates are and what responsibilities they have to fulfill. So, continue to read on… So, continue to read on…
Understand a Body Corporate and What its Purpose is
A body corporate is a legal entity specifically formed when a group of individuals owns common property. The main purpose is to manage the communal areas and facilities of a property. Once managed well, residents can enjoy a well-maintained and fully serviced living space.
Based on the jurisdiction in which it’s established, this entity operates under the laws and regulations specified in strata law or community title legislation.
Major Roles and Responsibilities of Body Corporates
Body corporates carry several key responsibilities that need to be fulfilled, some of which are mentioned below. So, check them out.
- Management of Common Property
One of the most crucial responsibilities is maintaining shared spaces, such as gardens, pools, hallways, and parking lots, in an efficient manner. Other roles include upkeep, landscape, and repairs, if needed. By doing all of this, they will ensure these areas remain safe and appealing for residents.
- Rule Enforcement
The pursuit of maintaining order and protecting the interests of all residents requires body corporates to establish bylaws. Such rules govern positive behaviour within the community. Furthermore, they address aspects such as noise levels, parking regulations, and pet ownership. In Melbourne, if you reside in a shared property, your body corporate Melbourne will reinforce these rules fairly and consistently, ensuring your smooth and legalised stay there.
- Financial Management
Body corporates must also collect fees from individual owners to cover maintenance costs, insurance, and other shared expenses. Preparing budgets annually and managing finances responsibly is what makes them an ideal choice for many. When providing regular financial reports to the owners, they stay transparent to ensure they won’t have financial concerns in the near future.
- Conflict Resolution
Conflicts may arise anywhere and at any time. The same goes true for residents or between residents and the body corporate. As a rule of thumb, it’s often their duty to mediate disputes. Not just that, they also find and provide amicable solutions to residents and maintain community harmony.
- Insurance and Risk Management
For common property, most body corporates arrange insurance. Having this insurance coverage can protect residents against damages and liabilities while staying there. They spend time reviewing coverage needs periodically to ensure how effectively it will serve and protect all residents.
- Meetings and Communication
Without regular meetings, not even a single body corporate can progress and no resident can lead a satisfying life. That’s why regular meetings are held to keep members informed and engaged in the decision-making process. They have the opportunity to communicate clearly with residents, providing the latest updates on issues such as maintenance work, financial matters, and upcoming projects.
In a Nutshell
Body corporates serve a vital purpose in managing the complexities of communal living. With knowledge regarding what roles they play, residents, including you, can actively engage in these communities and achieve a well-maintained and more fulfilling lifestyle.
