A well-run scheme is always a result of good management. It is not unusual to outsource the management of the scheme instead of employing or using the services of one of the owners or shareholders. In fact, it is preferable to have an independent person or agency managing the scheme.
There are several buildings in the inner cities, unfortunately, managed by autocratic persons. Armed with some knowledge of the companies and sectional tiles act, they make rules and execute these with cunning impunity since the shareholders, owners or trustees have no time to familiarise themselves with the relevant laws and rules.
Such ‘autocrats’ become the de facto trustee/supervisor and the law enforcer, creating havoc in the lives of the shareholders, owners, tenants and visitors. They even succeed in becoming directors of share blocks or trustees of sectional title blocks, earning salaries of several roles they dexterously assume.
Efficient estate agents and landlords do background checks of their prospective tenants. Some landlords and agents enter into agreements that explicitly identify what is expected of the agents and the duties of the landlords. Advertising and procuring a tenant, doing a detailed background check, calculating the commission to be paid to the agent, concluding the lease and even managing the property are part of an agreement or mandate.
Parties are clear about their roles, duties and diligence requirements. Similarly, owners, trustees and shareholders ought to establish exactly what they require from the prospective “manager agent”. He or she cannot be a supervisor and a trustee or shareholder, the contractor or maintenance person. If the role and responsibilities are not defined, clearly and in writing, bullying, conflict, mismanagement and disaster will eventually engulf the scheme.
Some points to note for an effective and successful scheme:
• Owners and shareholders must get involved in ensuring a well-managed scheme since they owe it to the fellow owners and shareholders.
• Owners and shareholders ought to focus on the common goals and agree on the milestones since the rights of every owner and shareholder must be respected and protected.
• Owners and shareholders must attend meetings.
• It is important to vote out persons who do not have the interest of all owners as well as those who do not have the skills.
• Those elected must be familiar with the relevant laws and rules and act within the law.
• Get to know the rules for convening meetings, voting procedures, presenting audited financial statements and other rules.
• Election of office bearers and trustees are democratically done and regulated by law; understanding the process is crucial.
• Engage the services of experts, such as managing agents, to carry out the management functions.
• Consult an attorney to deal with defaulting owners and unruly tenants, without delay or fear.
Owners, shareholders, trustees and all persons involved in a sectional titles or share block scheme should remember that the relationships and rights of people are more important than the dwelling or unit.
Written by Sayed Iqbal Mohamed
Article reference: Paddocks Press: Volume 8, Issue 3, Page 2