There are many investors in Dubai who are not aware of Owner Association or Strata Laws but they play a vital role in how your building is managed and how the finances are used to manage the building. As a property owner, you do have a say in how your building is managed and KAIZEN firmly believes that all owners should be given the information in order to make informed decisions. This is a brief introduction to Owners Association, Strata Law and the role of an Association Manager.
A Home Owners Association (HOA) is an organization of homeowners of a particular subdivision, condominium or planned unit development. The purpose of a homeowners association is to provide a common basis for preserving maintaining and enhancing their homes and property. The associations provide services, regulate activities, levy assessments, and impose fines. Usually, each member of a homeowners association pays assessments also known as service fees. Those assessments or dues are used to pay for expenses that arise from having and maintaining common property.
The Strata Law’s core principle is the division of property into privately owned units and jointly owned common areas, which are managed by an Owners Association. This is similar to other strata laws around the world. Carefully considered and drafted Strata laws create a transparent structure for the management of the common areas and facilities and the administration generally of subdivided buildings or developments. This is primarily achieved through the use of an incorporated Owners Association to represent the owners’ collective interest.
The Association Manager of a community/building involves various dynamics and is required to take over its management. Management of a building is similar to that of managing a corporate organization. The management of a jointly owned property differs to that of a singular owner property in the way in which the Owners Association must react to situations, make decisions, issue instructions and appoint service providers. The role of the Association Manager requires a high degree of responsibility and experience, it is the Association Manager that must guide the Owners Association on matters concerning the Jointly Owned Property Law, supervision of the day to day operations and manage the finances of the Owners Association.
Careful consideration must be taken when seeking a company to take over the Owner Association Management for your building and in the long run, this decision could save a large amount of money that is better used to improve the building which ultimately will increase the value; both in terms of monetary value and improvement to the quality of living.