Words or numbers? I prefer words. I can do numbers, but I prefer to get financial information in words.
So, when the AGM papers for my rental apartment in Qld arrived, I couldn’t help but wonder how many others would feel better informed if they were accompanied by some words.
I did what people increasingly do when they don’t get what they want from their advisors, I turned to AI. I uploaded the AGM papers to AI and simply asked this –
You own a unit in this complex and want a commentary and interpretation of these accounts and reports to monitor the performance of the body corporate and the body corporate manager.
In seconds, I had my answer. And it was all good news for the committee and the body corporate manager. Here’s some of what AI told me -
· The sinking fund is being rebuilt after a major works period in the prior year (reflected in the large prior year expenditure and special levy). Actual expenditure was much lower than budgeted, contributing to a strong surplus. The fund is now well placed for future capital works, but next year’s budget anticipates higher expenditure, notably for exterior finishes and garage doors
· The manager appears to be fulfilling statutory and contractual duties. The documentation is clear, and financial management is sound. The committee and manager have also established clear processes for contractor engagement and utility agreements
· The body corporate is in a strong financial position, with healthy reserves, effective debt management, and prudent budgeting. The body corporate manager is performing well, and governance processes are clear and transparent.
What a missed opportunity for my strata manager. I’ve known this strata management business for my entire career. I know they are good, but others probably don’t. A few more minutes of work would have given this strata management firm the only thing they, like so many others, have traditionally lacked: the ability to sell themselves.
If you would like to see the entire AI report, click here. Upload your AGM packs to your preferred AI agent and see how you measure up.
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
