In any sufficiently large group of people you will always get at least one bully. Whether it’s the owner with an “agenda” (typically to reduce their levies) or just someone who thrives on conflict, you’ll have to develop the skills to deal with that person. A common strategy is to listen, understand and either accommodate if practicable or if not, to then ignore or isolate (if safe).
We’ve all heard it before … what can go wrong will go wrong. Whether the bank’s mortgage release gets lost in transit, the seller has misplaced their certificate of title or any one of hundreds of other reasons, sometimes settlement can’t happen on the day. In most cases the parties will come to an agreement to extend the settlement date. The terms of that extension are usually dictated by who is in the “wrong”. At this stage of a transaction both seller and buyer are usually keen to keep the deal alive and just want the settlement finished, as soon as that can happen. If something goes wrong don’t panic – with the help of your team have a constructive conversation to sort it out.
Years of experience in similar industries is great, but committees are impressed by formal training. ARAMA and a number of other private providers offer training courses for new entrants into management rights. Even existing experienced operators should consider undertaking a course or two, so as to be able to “smarten up” their application package. Training certificates are a great addition.
When money is cheap the conventional wisdom is to borrow more to buy more. This is because the net return on money invested in a management rights business (when money is cheap) should earn you more than the cost of the money borrowed. For example, if your interest rate is 7% but your return on investment is 21% then you can see how it works. Always bear in mind however that markets are volatile and the more you borrow, the more exposed to rate changes you are.
Caretakers are non-voting members of the committee. Given their role, caretakers almost always provide a report to each committee meeting. The report should include significant events, unusual items they have attended to and requests for future spending and/or projects. Use your liaison person to request the caretaker tailor the report to your needs. Also understand that the reports will be a body corporate record and therefore available to all owners and other interested persons on a search.