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A Body Corporate will often have a contract for the provision of caretaking and/or letting. The BCCM Act allows for the Body Corporate to either:
- engage a person as the body corporate manager or a service contractor (the contracted party); and/or
- authorise a person to conduct a letting agent business (also the contracted party)
Body Corporate managers will refer to the entity that provides on-site management services as the Caretaking Contractor. This entity may also be referred to as the Resident Unit Manager (RUM), the body corporate manager, the on-site manager or the building manager. Duties for a Caretaking Contractor will vary between schemes, although they most often contain the following:
- Supervision of the common property
- Supervision of work to be carried out on the common property
- Ensuring that cleaning is completed
- Ensuring that maintenance is completed
- Reporting to the Body Corporate Committee
A Caretaking Contractor may also possess an authority to conduct a letting agent business. This allows the Caretaking Contractor to act as a rental agent for lots with the scheme from an office within the scheme (this is often the on-site manager’s home).
Under the Standard and Accommodation Module, a Caretaking Contractor is ineligible to be elected as a voting member on the Committee.
Developers must give consideration to their position if they retain the ownership of the Management Rights or Caretaking Contracts and if not being a voting member on the Committee is an issue.
