At first glance, you might think that running a company in a building with shared spaces is no big deal, but to be honest, it comes with certain responsibilities that aren’t immediately noticeable. Yes, you might still have your own office, commercial property, and retail unit, but bear in mind that it’s highly likely that you’ll share lifts, entrances, parking areas, and so on.
In these instances, the body corporate should step in. If you’re a business owner, then it would be advisable to get a grasp of how a body corporate works, because that’s something that’s going to keep misunderstandings, disputes, etc. at bay.
Even though specific problems can be resolved relatively quickly, there are those that are a bit more puzzling and require corporate advice, which is why it’s crucial to stick with us to learn more about this topic!
How Can A Body Corporate Be Defined?
A body corporate is basically in charge of running and fixing up all the common property and shared facilities across a development. The exact setup and legal rules shift a bit depending on your location and the type of building you are in.
For a business owner, this means that even though you own or lease your specific commercial unit, you are still completely tied to decisions that affect the entire property. Now, the question is, what encompasses common property?
- Shared entrances, lobbies, and hallways
- Roofs and the main exterior structure
- Driveways, alleys, and parking lots
- Courtyards, gardens, and landscaping
- Shared utility rooms or gym facilities
The big takeaway here is that you don't call the shots on these spaces alone. Because these areas are shared, no single business owner has total control over them.
You Should Go Through Corporate Documents
One of the most common reasons people decide to ask for advice is when they do not comprehend the paperwork. Body corporate records usually involve financial statements, meeting minutes, insurance information, correspondence, maintenance records, rules, and others.
If you are unfamiliar with these things, then you won’t be able to tell which information is important. Luckily, you can rely on the Opes Partners body corporate guide, which is a great resource that’s going to help you better understand body corporate concepts and everything that comes with them. The main goal isn’t solely to gather documents, but also to understand their meaning.
You Must Be Familiar With Your Financial Duties
Easily one of the biggest reasons business owners go hunting for body corporate advice is that they are totally in the dark about the real costs. Body corporate setups usually require you to chip in regular fees to keep those shared spaces running smoothly.
On top of that, you can get hit with extra bills whenever an unexpected emergency pops up, or the building needs a major facelift. If you are running a business, you absolutely have to bake these expenses into your math to figure out the true cost of renting or owning that space.
Imagine buying a great commercial unit because the monthly mortgage and utilities look totally manageable, only to get blindsided a month later by a massive repair bill for the building's main roof that everyone has to split.
Doing your homework on the building's financial health before you sign on the dotted line is the only way to protect yourself from these kinds of brutal financial surprises.
Major Repairs Can Be Pretty Tricky!
Routine maintenance is one thing; however, major building work is something else. A body corporate frequently needs to handle repairs to roofs, lifts, electrical infrastructure, etc. All of these endeavors can be quite costly and may require owners to invest a substantial amount of money.
As an entrepreneur, you need to better understand how decisions regarding major works are made, who needs to pay for what, and if the building has enough cash at its disposal for any anticipated maintenance.
If you want to obtain a commercial property, then you need to go through the building’s maintenance history first.
When Renovations Are Next On Your List
Business owners almost always want to tweak and modify their premises to perfectly suit their daily operations. A retail shop might be dying for a fresh new storefront, an office tenant might want to knock down or shift some internal walls, and a restaurant will almost certainly need to install specialized kitchen equipment, extra ventilation, or heavy-duty plumbing.
While not every single change you make is going to touch the building's common property, plenty of renovations will require you to get formal body corporate approval or strictly follow specific building bylaws.
Even though in some instances, you can deal with certain things without professional help, as you can see, there are still those that require it. By virtue of this, you’ll save both time and money; hence, you shouldn’t hesitate to seek it.
