Managing and maintaining a tenement building requires co-operation from multiple owners. This can be tricky, especially in buildings with mixed ownership, such as landlords and owner-occupiers. However, having an owners’ association, a formal arrangement between the owners, complete with a constitution, and agreed rules and procedures, can make it much easier.
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Proposal for compulsory owners’ associations
In May 2024, the Scottish Law Commission (SLC) released a discussion paper exploring proposals to make owners’ associations compulsory for every tenement building in Scotland. The key points include:
- Replacing the current Tenement Management Scheme with an Owners’ Association Scheme
- Giving owners’ associations the power to enter contracts and appoint managers
- Introducing duties like organising annual meetings and approving budgets
- Standardising property titles to ensure consistent maintenance rules
The SLC is inviting feedback on the discussion paper via their website until 1st August 2024. The final recommendations and proposed legislation are expected in 2026.
Why have an owners’ association?
There’s no reason to wait on getting started on the single most important thing you can do to address issues with your building. An owners’ association can provide many benefits, such as:
- Improved owner communication, providing a dedicated channel for sharing updates and decisions
- Ability to open a maintenance account and collect funds towards future repairs and ongoing maintenance
- Efficient management, with a single point of contact, enabling faster decision-making
- Increased satisfaction among owners with how their building is managed
- Preserve property value – regular maintenance keeps homes warm, dry, and structurally sound
It’s important to understand the benefits of having an owners’ association, so that you and your co-owners know why it is a worthwhile investment.
Simplifying the repairs process will likely positively impact the condition of your building and its value. For example, if the gutters are blocked and overflowing, this could lead to dampness and potentially structural damage that could cost thousands of pounds to repair. Regular gutter cleaning, costing a few hundred pounds, can prevent this damage.
Organising something like gutter cleaning is made easier by having an owners’ association to streamline the process. It could mean the difference between a disruptive and expensive repair or a straightforward maintenance task.
Getting started: contact your co-owners
The first step is to contact your co-owners. Set up a group chat or email thread to open communication. Having some sort of group communication method is useful for informing owners of maintenance issues and arranging owners’ meetings if required.
If you are struggling to contact an owner in your building, there are various ways to try and reach them:
- Landlords: if your co-owner is a landlord, search for their details on the Register of Private Landlords. You may also ask the tenant of the property for their landlord’s name. They may refer you to their letting agent
- Owner-occupiers: for owner-occupiers, you can post a note through their door with your details, asking them to get in touch and why
- Shop owners: search the Scottish Assessors website for the name of the shop owner and their tenants
If you suspect a flat is empty, you can search for the name of the current owner in the Land Register for a small fee. Or it may be necessary to contact your council’s Empty Homes Officer or the Scottish Empty Homes Partnership for assistance.
If you are a landlord overseas, you can similarly find out details of your co-owners on the Register of Private Landlords or the Land Register, or you may be able to ask your letting agent to assist you in the process of setting up an owners’ association in your building.
It can be useful to carry out an initial survey, asking whether your co-owners want an owners’ association, if they would contribute into a maintenance account, and whether there are any priorities in the building that they feel need addressing. This can help give credibility to actions later.
Make it official with a constitution
Once you’ve gauged interest, you may decide to establish the association formally with a constitution. Your constitution should outline rules like:
- The association’s purpose and objectives
- Membership criteria and fees
- Roles and responsibilities of office bearers
- Meeting procedures and decision-making
- Financial management guidelines
There are currently no set guidelines on how an owners’ association should be constituted, however, it is a good idea to use the above sections as a starting point and amend as required for your building.
Elect office bearers
It’s a good idea to have a dedicated committee led by key office bearers to ensure your owners’ association can run smoothly. Outline the roles and responsibilities of office bearers in your constitution. They should include:
- Chairperson: a trusted leader who represents the interests of all owners
- Secretary: an organised individual responsible for record-keeping and documentation
- Treasurer: someone ideally with a knowledge of using spreadsheets to manage the association’s accounts
Additional committee member roles can be assigned to share responsibilities and provide opportunities for involvement, depending on the size of your association.
Open a maintenance account
A key function of an owners’ association is managing funds for building repairs and maintenance through a dedicated account. A maintenance account usually holds a float contributed by each owner, as well as any advance payments for upcoming repairs.
Most banks require a constituted owners’ association to open this type of account, and they are generally referred to as non-profit, charity, or community accounts. Search online to find a bank that provides such an account that would be suitable for your association.
Fostering co-operation and continuing success
While establishing an owners’ association takes initial effort, the long-term benefits of improved building management and increased property value make it worthwhile. It can also foster a stronger sense of community in your building.
Co-operation and effective communication among owners are crucial to keep your association running smoothly. Share regular updates, meeting minutes, and be prepared to address concerns or conflicts through open dialogue. To learn more about owners’ associations, and download a constitution template, check out this article.
