Quote:
Originally Posted by tiger_handheld
Thats exactly the case.
He is the owner of Prop Mgmt company.
He owns 5 / 330 units.
He has one of his employees as the designated property manager.
Interestingly he says there is no conflict that he is the owner of the mgmt company and he also owns 5 units. He used to be president of the council too he has stepped down but he is still very much invovled. Recently he contacted a trades guy to fix a door problem. He emailed the council to get the ok though.
What kind of special deal between strata and prop mgtmt co?
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Personally, I think it's a conflict.
A strata council is supposed to represent the collective interests of all owners. They are not supposed to give preference to one owner over another.
The property management company is hired by the strata council to help them with managing the building and running the council. The property management company should be a neutral 3rd party.
For example, let's say the owner of the property management company is named Fred (just making it up).
Now for example the strata council has to make a decision that would impact a unit(s) owned by Fred. Fred, or Fred's employee, could give information to the council that could sway them one way or another, depending on Fred's personal preference.
If the council doesn't see this as a conflict, then I suspect there is some kind of deal going on. Say, the council agrees to give the property management contract to Fred's company. In return, Fred gives the council a discount on his contract. It's in Fred's best interest to give a discount because he can then play both sides (strata and owner) with respect to his 5 units. There's also lots of opportunity for Fred to do side-deals between contractors and the council, knowing he has special access to the council when it comes to hiring outside contractors and trades.