Strata tip #72: Buying – Power of Attorney contract execution
If you are going to be in the back woods of Botswana during the contract negotiation phase, then consider granting a power of attorney to someone you trust; such as your lawyer. Make sure the power of attorney is prepared and executed before you leave the country. A well drafted power of attorney, and a […]
Strata tip #71: Buying – Looking for a complex
Most online sale listing sites online will allow you to subscribe and set alerts. Do that, but be specific and enter more than one saved search rather than casting your net too wide. It’s better that you find something within (say) 2 or 3 specific searches that tick (most of) the boxes for you, rather […]
Strata tip #70: Selling – Don’t send mixed signals
Sometimes a two person team can disagree about how to present the business for sale, or the asking price. Sometimes there’ll be more than one buyer and there will be a disagreement about which offer is the best. If you’re a joint owner of management rights trying to sell, then make sure that all of […]
Strat Tips #69: Getting ready to sell – How to stand out
While the “market” for management rights can be pretty inconsistent, information about properties for sale is always available online. Look at what you’re competing against and consider what sets your complex apart from the other offerings. Once you’ve found those things, make sure you emphasise those points of difference in your online and other sales […]
Strata tip #68: Operating – The sweet spot
Like most things in life there is a sweet spot when it comes to occupancy and room rate. Dropping tariffs may increase your occupancy and revenue, but only to a certain point. Increasing tariffs may reduce your occupancy but increase your profit, again only to a certain point. The sweet spot is optimal, sustainable profit […]
Strata tip 67: Buying – Settlement delays and early possession
Few lawyers appreciate just how much hassle is involved in moving house; including packing, booking removalists and then being on hand to distribute those dozens of boxes throughout the (usually much smaller) unit that you are moving into. If there is a delay with settlement, ask your lawyer whether it’s possible to obtain early possession, […]
Strata Tip 66: Buying – The Body Corporate Interview
Most Committee’s don’t appreciate that a resident manager is a contractor of the body corporate and not an employee. As a result, almost all committees will treat the interview as a job interview. That being the case, use all of the old tricks; arrive early, dress well, smile, project a positive attitude, be on top […]
Strata Tip 65: Buying – Notifying of finance approval
Ideally, you should receive the loan documents and not just a finance approval letter, before you notify that finance has been approved. While there will be a lot of pressure to “go unconditional”, sometimes there are unexpected things in the loan documents; e.g. a further guarantee or a top up condition. Given your capacity to […]
Strata Tip 64: Management Rights – Superman doesn’t work for peanuts…
If you pay peanuts, not only will you get monkeys, odds are that things will end up going a little bit ‘Jumanji’. As a general rule, every dollar that you underpay a caretaker, below a fair rate, is $2 that you’ll end up spending on a dispute or poor performance later on. By all means […]
Strata Tip 63 – Buying – Verification of financial records
Make sure your accountant sights all of the Form 6’s. When conducting the verification report process, the buyer’s accountant may attend on site to extract relevant financial information from the seller’s records. That is an ideal time for the accountant to also sight each one of the POA Form 6’s (letting appointments), to check that […]
Tip 59 – Getting Ready to Sell – Online unit valuations
Google your complex and particularly your unit number. Within the first page of the search results will almost always be a service offering to tell you what your unit is worth! Take the extra step – follow through and see what the estimate of value is. Whatever is available to you, is also available to […]