As more and more people are living in high-rise buildings, the management of buildings is becoming increasingly important. The common question among residents is the integrity of the management and how they are managing.
The size of the property and the services offered by the management company have a large impact on the management fee charged to tenants. Maintenance or service charges must be proportionate to the services provided.
The larger the property, the higher the rent as it will require more security and more cleaning, and the greater the services offered, the higher the management fee.
With the rise in minimum wages, there’s a direct impact on the outsourcing(for example security) of services. As the cost of outsourcing increases, the number of staff required to provide a service decreases, being all the reason why maintenance or service fees are needed.
Therefore, when a building is not maintained properly, problems can and often do occur.
A tenant must also know the responsibilities of the management corporation and their status in the property. The management corporation must be able to assure the tenant that the property is being managed properly.
For instance, the management corporation(MC) is not responsible for whatever issues in the unit itself or during the Defect Liability Period(DLP). However, the MC can assist the tenants by connecting them to the developers.
In most cases, it is common for a tenant to want to know where the money goes as to make sure it goes directly to the management company that is responsible for the upkeep of the building.
It's encouraged that if the property is managed by either a management firm or developer, to willingly audit the accounts and share with tenants.
To better understand how a management corporation works and if they really are stealing your money, head to Property Hunter’s Facebook page to watch property management guru, Javed Sani share his years of expertise at https://fb.watch/cWQMw_D92q/.