In the case of multi-family or master-planned residential housing complexes, owners’ corporations govern the properties that are a part of the complex (for example, units, townhouses, and apartments).
An Owners Corporation (formerly known as a Body Corporate) is a legal organization that oversees the subdivision of land that has been legally recorded. An Owners Corporation is normally required for every property that is a part of a subdivided estate (i.e., a property that contains more than one residence).
Strata management Geelong and the preservation (but not restriction) of parts of partitioned property referred to as “Common Property” are the primary functions of a body corporate Geelong. The term “common spaces” refers to places or facilities that are shared and benefitted by all the individual home (lot) owners. The Owners Corporation structure assures that all this property is well-maintained, insured, and under strict management supervision.
What exactly does the term “common property” mean?
Although each lot has its own land title and ownership, the flats, apartments, and townhouses are all located on a bigger piece of subdivided property and so share some of the estate’s “community” qualities. A title or other evidence of ownership is held by each individual member in the common area for the property to which they have a claim.
What is the aim of a proprietorship or an owner’s corporation?
The following are the primary responsibilities of the Owners Corporation:
- Keep the common areas, fixtures, and services in good shape and condition (such as estate entrances, front gardens, public lighting, open spaces driveways, and driveway landscaping).
- Insurance for shared property, including obligatory public liability coverage, should be maintained at an acceptable level (e.g.: driveways that will be used by all members of the public, including visitors and trades).
- Organizing insurance coverage for building rehabilitation and replacement (i.e.: a policy to cover all individual buildings on the land).
- Manage and administer the land and structures owned by the Owners Corporation on an overall basis.
- Choose private rubbish pickup rather than relying on municipal services (estate dependant).
- Oversee the compliance with all applicable rules and regulations regulating the functioning of an Owners Corporation by the appropriate government agencies.
Owners Corporations offer a distinct advantage to investors in that they essentially operate as a “watchdog” over their asset, ensuring that it has every chance to grow and maintain its value as the market dictates. They’ll work in collaboration with a qualified property manager to guarantee that the interior and exterior/communal components of your investment are always kept in excellent condition. The investment is less stressful and time-consuming than owning a standalone property (such as a home and land), which may or may not generate superior capital growth or rental returns than the stand-alone property.
It is vital to remember that the owner corporation should not be regarded as an “expense,” but rather as an additional layer of protection and value, as well as an integral part of your overall property investment service. Keeping track of all owners’ company registrations and the roll, as well as responding to all orders, requests, and appeals will be much simplified because of working with them. They will also assist you in monitoring meetings and giving alerts, agendas, and minutes.