The financial responsibilities of the Resident’s Association and Building Management Companies

The payments that are deposited into the Resident’s Association account are used for the day-to-day maintenance of the building. Whether it is the building’s external appearance or the internal systems, these payments play a crucial role in the daily upkeep as well as in the prevention of disasters resulting from failures in the various systems.

Who is the building manager and what is his role?

A building manager is a person who is appointed by the representatives of the shared building or through a building management company.

His responsibilities are wide-ranging and include accountability for the maintenance and management of the building.

Other responsibilities include:

Collecting and managing the funds used by the Resident’s Association.

Continuous communication with various service providers and suppliers.

Providing solutions to cleaning and maintenance problems in the common areas.

Monitoring the maintenance of the various systems in the building.

Taking in new tenants.

One of the main roles of the building manager is the collection of Resident’s Association fees. Deficiencies in the committee’s cash flow may lead to difficulties in the day-to-day maintenance of the building. This may result in a decrease in the quality of life of the tenants, a decrease in the value of the apartments due to the neglect of the infrastructure, and in severe cases also failures in the systems that may cause physical damage to the building occupants.

And what about the Resident’s Association?

The Resident’s Association is also known as the body that represents the shared house and appoints a number of tenants to be responsible for the maintenance of the common areas. Like the building manager, the tenants in charge of managing the Resident’s Association are the ones responsible for collecting the payments and managing the joint funds.

The amount of these maintenance fees may vary between different buildings based on variables such as the type of infrastructure, the type of management required, the existence of common facilities such as a parking lot or elevator and more. The fee will usually be the same for all the tenants and will be regulated in the building’s pre-agreed contract. If the fee is not regulated in this contract, other provisions regulate the payment for expenses in the common property, depending on the size of the apartments. Resident’s Association fees are used only for expenses that are enjoyed by all the tenants in the property and exclude anything to do with private apartments.

When should we contact an external management company?

Sometimes managing a Resident’s Association requires additional knowledge in the management and maintenance of buildings, which may not be suitable for an inexperienced group of tenants. The Resident’s Association is entrusted with the maintenance, responding to tenants’ inquiries, collecting fees, and in certain residential buildings, these can be very challenging tasks. The problems can evolve from a lack of communication or control over the cash register, and sometimes buildings require extensive maintenance, which tenants who take part in the Resident’s Association (voluntarily) may find difficult.

Engaging with a management company may begin when the property is handed over from the contractor to the tenants as part of the infrastructure inspection and may continue well after the residents have moved in. Other than monitoring the maintenance of system wear and tear or failures in a manner that may prevent disasters, a management company also has the role of supervising the building’s ledger. Budget management is critical to the functioning of the building and if not handled professionally, could lead to real damage and a significant decrease in the quality of life of the tenants.

We at Bllink believe that managing a Resident’s Association fund can become an easy and simple task. With the help of our convenient platform, we allow the tenants to manage their payments to the Resident’s Association without the need for technological knowledge. Contact us today and we will be happy to help make this a seamless process from beginning to end.