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Recent regulations have radically changed the area of multi-unit development management. As the Multi-unit development Act (2011) itself states, it is to "facilitate the fair, efficient and effective management" of bodies responsible for common areas in a development. In a nutshell, the Act gives apartment owners the ownership of common areas and empowers them as a colective body to make decisions relating to the running of a multi-unit development.

The Act aims to prevent the recurrence of some of the worst abuses which previously existed such as developers retaining ownership of common areas and imposing excessive fees on unit owers for their maintenance.

Amongst the main points of the Multi-Unit Developments Act (Mud Act) are the following:

(There are exceptions to these general rules - please contact us or consult the MUD Act for specifics)

An Owners Management Company (OMC) shall be set up
The Owners Management Company will be composed of the individual owners of units in the development
Each owner / unit will have an equal share in the OMC
All common areas shall be transferred to the ownership of the OMC
Unit owners must furnish their contact details or that of their tenants (or other habitual occupiers) to the OMC and update them of any changes in particulars.
The Directors of an OMC cannot be appointed as Directors for more than 3 years
The OMC will hold at least one meeting each year (AGM) with at least 21 days notice given of such a meeting
Such a meeting will take place within reasonable proximity to the multi-unit development and at a reasonable time (unless otherwise agreed by 75% majority vote of the members)
The OMC will prepare and furnish to each member an annual report at least 10 days before any such meeting
This report will include

- A statement of income and expenditure relating to the period covered by the report

- The assets and liabilities of the company

- A statement of funds in the sinking account

- Details of the annual contribution to the sinking fund and the basis on which the contribution is calculated

- A statement of the service charge and the basis of such a charge

- A statement of the projected or agreed service charge

- A statement of any non-recurring expenditure or refurbishment which it is intended to carry out

- A statement of the insured value of the multi-unit development, the premium charged, the name of the insurance company and a summary of the principal risks covered

- A statement setting out the fire safety equipment installed in the development and the arrangements in place for the maintenance of such equipment
- A statement fully disclosing any contracts entered into between the OMC and a Director or a connected person to a Director

The Service charge shall not be levied for a particular period unless it has been considered by a general meeting of the members concerned and shall be broken down into

- Insurance

- General maintenance

- Repairs

- Waste management

- Cleaning

- Gardening and landscaping

- Concierge and security services

- Legal services and account preparation
- Other expenditure relating to the maintenance, repair or management of common areas

The Service charge may be amended at the meeting with the approval of 60% of those present and voting
Where the Service charge is disproved by 75% or more of those present and voting, it shall not take effect and the previous charge shall continue to apply pending the adoption of a new charge
The Sinking fund (a building investment fund) is to be used for expenditure involving the (a) refurbishment, (b) improvement or (c) maintenance of a non-recurring nature or for advice from a suitably qualified person relating to a, b or c. The sinking fund shall be held in a separate and identifiable account.
The OMC may make house rules regarding the development with the objective of enhancing the quiet and peaceable occupation of the units and such rules will be binding on owners and tenants. A copy of such rules should be given to owners and unit occupiers.

It is important to distinguish between the roles of an OMC and the Property Management Agent. The Property Management Agent is appointed by the OMC to ensure the smooth running of the multi-unit development and oversee the day to day maintenance and issues associated with such a development.

The OMC sets the annual service charge for the development which amalgamates expenses such as insurance charges, cleaning fees, maintenance costs, sinking fund contributions and property management fees into one charge. The task of collecting this can be delegated to the property mangement agent.

Management of an Apartment Block.

Managing a Multi-Unit Development can be quite different from managing normal rental properties as a different set of needs and criteria can apply. The responsibilities of a Property Manager can be an onerous task, protecting many people's most valuable asset such as their home or investment properties. Ensuring the smooth running of a multi-unit development is hard work and a badly run complex will have a negative effect on property values in the development, impact on the quality of life of residents whilst careless money mangement can result in unneccessarily high service charges for owners.

Here at Hydeproperty, our standard multi-unit development management includes the following services;

Routine and regular property inspections. This includes an internal and external inspection of the premises to include common hallways, lifts, parking areas, gardens, gates, doors and refuse collection areas. Any repairs or maintenance issues arising from these inspections will be dealt with promptly.

General administration services

Organisation of refuse collection

Organisation of insurances

Obtaining quotes and organising repairs and maintenance by contractors

Maintain records of all inspections undertaken

Maintain records of all revenue and expenditure by the agency and the day to day accounts

Preparation of books for annual audit

Organise Auditors to oversee accounts

Organisation of sinking fund (has to be in place by October 2012)

Maintain close liaison with the OMC

Issue quarterly report summary to OMC and owners

Attendance at AGM

Preparation of budget estimates

Log and deal with owner requests and queries

A complete initial review of existing charges, contracts and fees with the aim of reducing expenditure

Continuous review of ongoing costs to ensure value for money

Dealing with breaches of house rules and updating the Management Company where appropriate

Provision of Management Contracts to provide a full breakdown of duties and responsibilities of the agency

We take great pride and care with every property we manage so if you want a no-obligation written quote for your OMC, contact us today and we'll be happy to help!