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23 Aug 2013

Reducing your risk as a resident manager

As the development of management rights continues to progress both in a business sense and legally, there must be a closer scrutiny on the risks that are endemic within the boundaries of a resident manager’s mandate.

The highest risk areas that are on common property include:


  • Stairs, walkways and balconies
  • Carparks, driveways, roadways
  • Gardens, trees
  • Sewers, electrical boxes, swimming pools

Over time the increase in litigation surrounding the above named risk areas has slowly increased and it is therefore imperative the resident manager is aware of how to identify and reduce these risks.  It is absolutely essential that a manager has public liability insurance and professional indemnity insurance.

This insurance may not ever be required as the body corporate already has its own insurance in place.  This is adequate if the claim is not due to the resident manager’s neglect.  For instance any negligence, poor property management, defamation and discrimination that can be attributed to the manager is not covered by the body corporate insurance.  It is therefore a case against the management rights holder as opposed to the body corporate.

The following are some tips for minimizing risk:


  • A little known type of negligence is the selection of tenants.  Ensure that you are aware of the residents in the property and have all their correct details verified by references. 
  • Ensure you inspect, describe and display the property correctly to potential suitors.
  • Take action and record on any maintenance repairs.
  • Take action and record any complaints and your reply to them.
  • Ensure any third party contractors are licenses and have their own insurance

These are just a starting point for resident managers to think more about their duties under the legal system.  Alert Property Group recommends seeking legal advice regarding a managers personal circumstances.  Contact us for more information.

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