A capable building manager will increase the value of your investment property: Carlie Ziri
When purchasing an apartment, all investors and owners share common goals: to ensure the value of their property increases and that their property’s development is well managed for the entirety of its future.
This is why I am often surprised when I come across clients who underestimate the impact that a building management firm can have on their investment. Investing in a building that is managed by a reputable, knowledgeable and responsive company is essential for the maintenance of the development’s assets, which ultimately contributes to the property’s long-term growth.
When a new building’s executive committee is deciding on which company to appoint to manage the development, the decision is often based on cost. Unfortunately, this can affect the long-term value of the development, as there are many other factors that need to be considered.
An established and capable building management firm will have a highly skilled team and structured processes to ensure the building is maintained on a daily basis, preventative maintenance schedules are operational and managed effectively, bylaws are adhered to, a detailed monitoring system is in place, and security systems are well-maintained and updated annually.
The company should also be financially savvy, cost-effective, and have experience in preventative and corrective maintenance and dealing with OH&S standards. The firm should also have a good selection of quality service providers to maximise the longevity of the development’s assets.
Defect management is another important issue which falls under the realm of building management. Where owners are within their seven-year home owner's warranty period, defects should be raised immediately to the builder and the Home Owner Warranty insurer.
My husband, George Ziri, who is director of Building Facilities Management Solutions (BFMS Pty Ltd ), says when discussing defect management, the building manager should always conduct themselves in an impartial manner to establish credibility between the owners and the builder/developer.
Building managers also need to be realistic when producing defect reports. According to George, it’s best to wait for the sixth year of the home owner's warranty before the owner works with an independent building consultant to review the property and status of defects.
This review will give both the owner and builder the assurance of independent advice. The consultant will also support the owner as an expert witness, in the event they wish to pursue any legal matters.
Reliable and trusty building management is essential in all developments. For investors, property location and views can go a long way in ascertaining the value of their purchase; but, it is also worth remembering the building’s management also plays a large part in determining what an investment is worth now and in the future.
Carlie Ziri is the director of Lifestyle Property Agency.
