So you want to join a MC or JMB committee?
I recently commented on Syafiqah Razak's LinkedIn post on the "qualifications" for MC and JMB committee members that property managers would like to see. She mentioned leadership and integrity as desirable qualifications for the job .
As a ex investment analyst covering the Malaysia, Singapore and Hong Kong markets (and trained to evaluate corporate managements) I think good leadership is vastly overrated by most people. In my opinion these are the only "qualifications" that matter for people who want to serve on condo boards:
#1 Integrity
Integrity is a self explanatory pre requisite given the many important fiduciary roles MC chairmen, treasurers, etc play in the financial management of their Management Corporations or Joint Management Bodies.
In simple language, they sign the cheques. If you think you don’t trust them, don’t vote them in. Otherwise, you might have a situation like 1MDB where a lot of money belonging to a fund went missing.
#2 Communication Skills
In my opinion, the second most important pre requisite. Too many MC and JMB committees seem to think owners should be given the minimum information about their properties, IE the barest minimum the law requires.
I was a previous MC chairman of a KLCC luxury condominium at Jalan Pinang. More than 10 years ago, owners had a quarterly newsletter that kept them in the loop on what was happening in their condominium and a regularly updated website. The monthly minutes of the MC committee and unaudited monthly financial accounts of MC were posted on the 2F management office . By openly communicating with owners and showing where money was spent on maintaining common property, the MC committee and resident building manager found it easier to collect from owners the monthly service charges plus sinking fund contributions every month.
#3 Legal /Conflict Management Skills
Sooner or later, all MCs and JMBs will run into situations where conflict management skills are required. Of course, I mean the occasions when mediation efforts at housing tribunals fail, and the lawyers have to be called in to sue people in court. It helps if at least one MC/JMB committee member has the contact numbers of a top corporate litigator (even better -two or more litigators) in her or his phone book.
Condo AGMs can be occasions for MC or JMB committee members to demonstrate solid team work and forward planning. At some condo AGMs the atmosphere can be heated if some owners want to air a grievance or complaint against a property manager, a committee member or staff. MC/JMB committees and their appointed property managers must often walk a fine line between stifling dissent (in my opinion, not a good thing) and allowing some owners to drag on proceedings when more important issues need to be presented. In this connection I think after a short general introduction by the MC or JMB chairman on the committee's accomplishments, AGMs should be left to be run by the professionals, IE the property manager. You see, a MC or JMB chairman might not like to cut short another fellow owner's speech. In contrast most experienced property managers are quite happy to take the heat off the committee's shoulders. A “No” from a professional manager might be enough.
#4 Financial Management Skills
Ten years ago when I was a committee member, there were no Malaysian handbooks available to MC or JMB committees that provided advice on the financial management of strata titled buildings. E.g. how to conduct the procurement process for big ticket capex projects like lobby renovations, facade repainting ,how to cut operating costs, how to determine an appropriate sinking fund contribution etc.
As a result, committee members of MCs and JMBs had no choice but to rely on their property management teams to guide them in these important areas. I think the situation in 2022 hasn't changed.
A handbook on building financial management for board members of owners corporations is however available on the website of Hong Kong’s independent anti corruption agency. The Malaysian Institute of Property and Facilities Managers (click here for MIPPM newsletter “The Property Manager “ archive) has also useful resources.
Some magazines that cover the property management industry eg Habitat Magazine, a New York based newsletter aimed at condominium boards and property management companies have searchable archives of topics like Annual General Meetings, a Legal Podcast, and useful directories of professionals .
I have posted my previous experiences as a committee member of 4 owners corporations in my blogs on the following topics:
1. standing for election at condominium AGMs
2. saving money for MCs and JMBs
3. how to get FREE PR for your condominium
4. preparing for a major capex project (a KLCC condominium lobby renovation)
