Community Property Management is a highly complex environment as it has almost all the traditional complexity of running a typical business (e.g. with financial functions and daily management issues), but with with additional complexity, as:
- Office bearers having a fiduciary duty, a legal obligation to act in the best interest of others, with due care and diligence.
- There is extensive and complex regulatory environment that applies to schemes and office bearers.
- Office bearers are typically volunteers, many of whom are not sufficiently (emotionally) ‘invested’ in their role.
- The nature of scheme oversight (e.g. occasional trustee meetings) and inflexible financial management (e.g. annual budgeting and increases).
- Community schemes typically have considerably more personal interests and interpersonal issues than the typical work environment.
- There is often confusion about the role (scope of responsibility) played by managing agents and operational management as office bearers often assume that these parties are doing everything, and
- The money allocated to management and oversight is generally very limited, despite all the complexity.