Building Manager vs. Owners Corporation: What’s the Difference?

Building Manager vs. Owners Corporation: What’s the Difference?

In a strata property, two key entities play a vital role in keeping everything running smoothly: the building manager and the owners corporation. While both are responsible for different aspects of the property, it’s easy to get confused about what each one actually does. Let’s break down the differences in a more relatable way, so you can better understand how they work together to make your building a great place to live.

 

1. Who Does What on a Day-to-Day Basis?
Building Manager:
The building manager is the person who’s there on the ground every day, taking care of the little things that keep the building in shape. They oversee the cleaning, maintenance, and repairs of shared areas like hallways, lifts, and gardens. If there’s a plumbing issue or a broken light, they’re the first person to deal with it. They also make sure that any services like cleaners, gardeners, or security staff are doing their job properly.

Owners Corporation:
On the other hand, the owners corporation (OC) is made up of all the owners in the building, and they’re the ones who make the big decisions. They’re responsible for setting the budget, managing the building’s finances, and making sure the property complies with legal rules. They don’t get involved in the day-to-day tasks, but they approve the big-picture decisions, like hiring a building manager or setting a budget for repairs.

 

2. Making Decisions: Who’s in Charge?
Building Manager:
The building manager takes care of executing the decisions made by the owners corporation. While they have a lot of responsibilities in terms of managing the property’s operations, they don’t make the decisions about how the property is run. Their job is to implement what the OC has decided.

Owners Corporation:
The owners corporation is where the decision-making happens. They vote on major issues, such as approving budgets, deciding on repairs, and even setting building rules. They meet regularly to discuss these decisions, and all property owners have a say in what happens. The OC is responsible for keeping everything legally compliant and managing the finances of the property.

 

3. Legal and Financial Responsibility: Who Handles What?
Building Manager:
The building manager typically doesn’t handle the financials of the property. They don’t manage the levies or the budget – they focus on the hands-on maintenance and running of the building. They may work within a set budget, but they aren’t the ones approving or handling the funds.

Owners Corporation:
The owners corporation is legally responsible for the building’s finances. They collect levies from owners, set the building’s budget, and approve how money is spent. They also handle things like building insurance and major repairs, which may require dipping into the reserve fund.

 

4. How Do They Interact with Residents?

Building Manager:
If you have a question or an issue with something in the building, the building manager is your go-to person. They’re the ones who deal with residents on a day-to-day basis, addressing complaints, requests, and anything that needs immediate attention. Whether it’s a maintenance issue or a concern about common spaces, the building manager is there to help.

Owners Corporation:
The owners corporation is more behind the scenes. While they don’t typically interact with residents on a day-to-day basis, they’re the ones who set the rules that the building manager enforces. They’re also the ones who make decisions that affect the entire building, like agreeing on building upgrades or changes to the rules.

 

5. Who Takes Care of Repairs and Maintenance?
Building Manager:
The building manager handles the smaller, day-to-day maintenance tasks like fixing leaks, cleaning common areas, and making sure everything in the building is working properly. If something breaks or needs attention, the building manager is the one who arranges for repairs or services to be carried out.

Owners Corporation:
The owners corporation, however, is responsible for approving larger projects or repairs that might cost more or require substantial planning. They decide on things like major renovations or upgrades to the building, such as replacing the roof or updating the plumbing. These are typically funded by the building’s reserves, and the OC approves the expenditures.

 

6. Security and Safety: Who Keeps the Building Safe?
Building Manager:
The building manager makes sure the building’s safety systems are in working order. This includes overseeing things like fire safety, security systems, and ensuring that access points are secure. If there’s an emergency, the building manager is the person who takes immediate action to handle the situation.

Owners Corporation:
The owners corporation makes the important decisions about the property’s security and safety measures. For example, they might decide to upgrade the security system or hire additional security personnel. Once those decisions are made, the building manager will carry them out.

 

7. Who’s in Charge of Hiring and Contracts?
Building Manager:
The building manager is responsible for managing the day-to-day service contracts, like those for cleaning, security, and maintenance. They make sure these services are carried out as agreed and manage the relationships with contractors.

Owners Corporation:
The owners corporation is responsible for the bigger contracts and decisions. They may hire the building manager and other key service providers, like the strata management company or insurance brokers. The OC sets the terms and approves these contracts.

 

8. Communication: How Are Things Run Smoothly?
Building Manager:
The building manager is the main point of contact for residents. They’re the ones residents turn to with questions or issues about the building. They communicate with residents regularly to keep them updated on maintenance, repairs, and building-related news.

Owners Corporation:
The owners corporation communicates less frequently with residents but is responsible for important updates about the building, such as financial matters or major changes. They typically hold meetings where residents can discuss their concerns and vote on key issues.

 

9. What Happens if There’s No Building Manager?
If a strata property doesn’t have a building manager, the owners corporation takes on the responsibility for managing day-to-day maintenance, repairs, and resident concerns. This means the owners corporation may need to hire contractors directly, oversee maintenance tasks, and handle communication with residents themselves. While it can be more time-consuming, it allows for more control over how the property is managed. In such cases, the owners corporation might also consider hiring a professional strata management company to handle these tasks more efficiently.

 

Conclusion
In short, the building manager and the owners corporation have different but complementary roles. The building manager is the one who handles the day-to-day running of the property and takes care of maintenance, security, and resident concerns. The owners corporation, meanwhile, is responsible for making the big decisions about the building’s finances, legal matters, and overall direction. Both are essential in ensuring that the building runs smoothly and that residents enjoy a safe, well-maintained place to live.

 

If you have any questions about the roles of the building manager and the owners corporation or how they apply to your property, feel free to contact Amity Strata Management for expert advice.

For more information on how Amity Strata Management can assist with the management and smooth operation of your building, including maintenance, financials, and communications, contact us today. We’re here to help!

 

Date Published

09 April, 2025

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