WHY Registered Real Estate Negotiators Produce Better Sales ResultsJune 23, 2021
Like it or not, when you own a unit in a stratified residential project, you’re responsible not only for your parcel unit, but also the common properties. However, who is responsible for the day-to-day administration of management and repairs required for the common properties?
Here is where the Joint Management Body (JMB) or Management Corporation (MC) comes into place. They may sound familiar but not many know what exactly these organizations are and their role in managing a strata development.
Both JMB and MC are a management body that comprises elected volunteer parcel unit owners. The number one task of JMB and MC is to manage the strata property in common interest with the appointed property management company.
The main difference between a JMB and MC is that the former is an interim body before the issuance of strata title by the land office, as well as it has a developer’s representation as one of the Joint Management Committee (JMC) members.
On the other hand, MC comprises only unit valid owners (who are eligible to vote in the Annual General Meeting) without any representative from the developer. It only comes into the picture once the individual unit strata title of the project is issued.
Be it JMB and MC, both organizations are entrusted with the powers and responsibilities to manage common areas of stratified developments, enforce by-laws and collect maintenance charges and contributions to the sinking fund and others. Therefore, it is important to build a solid JMB or MC to ensure all owners’ interests are well taken care of. The question is, how?
Here are a few tips to build a strong JMB or MC team:
1. Maintaining a good relationship with the property manager
Maintaining a good relationship with the appointed property management team is important as JMB or MC work with them as a team in running the building. The good working relationship of the two parties from day one will ensure the building runs smoothly in a correct manner. However, if the relationship between JMB or MC and the property management team against each other, the building management works would struggle right from the beginning and eventually do harm to the interest of all owners.
2. Be transparent, open and honest
Please bear in mind that JMB or MC is entrusted with powers to manage and maintain the building with public funds. Therefore, setting a correct vision, mission and working culture, such as transparency to the financial account, always open for discussion and opinion with the residents and be honest in handling property related works, as early as the formation of JMB or MC is critical in building a strong JMB or MC in the long term.
3. Pick the right candidates
JMC or MC member is a voluntary commitment, every owner has the equal chance to be part of the organization. One tip to build a strong JMB or MC is to identify those that are genuinely passionate to volunteer his/her time to serve for the wellbeing of the community. It may be a good idea to ask the volunteer to declare his/her job to see if he/she has any personal agenda to take advantage of his/her position to help himself/herself with jobs, status, information and gains to enrich himself/herself.
4. Set clear KPIs and goals
Having KPIs and goals are important as it is the metrics that help to measure, manage and monitor operations and performance in order to build a strong JMB or MC team. By setting clear KPIs and goals, it will help the JMB or MC to keep everything – from fees collection to spending, in line to protect the benefit of all owners. While JMB or MC has various duties, the main objective is to maintain and manage the building and common properties of a strata development project. Therefore, the KPIs and goals should be set around this objective.