Partial associations within an ACO, economies of scale or more autonomy?

Building complexes can choose various ACOs

Since the law of 2 June 2010 was passed, it has been possible to split a large complex with at least 20 apartments into various partial associations, each with its own autonomous decision-making powers. The benefit of this type of arrangement is that each partial association can choose its own preferred supplier for its common parts and does not have to negotiate with all the co-owners of the complex. This can benefit the efficiency of the decision-making process and it will also have a major impact on the operational activities.

For all those different partial associations function individually as a fully-fledged ACO, thus resulting in a lot more administration. For example, a general meeting must also be organised for each partial association, a report must be written on each meeting, a settlement invoice is produced for each ACO and each association has its own accounts. If the option of various suppliers is chosen, the economies of scale will then be lost and more follow-up activities will need to be carried out in order to manage and monitor all the parties involved.

As a professional property administrator, we attach great importance to the efficient management of co-ownerships. Syncura stands for transparent management, clearly defined costs and clear communication with owners. We strive to ensure that our various suppliers are deployed as efficiently as possible. We do that by working with framework contracts and making the best possible use of economies of scale. As a result, we are able to offer our co-owners attractive rates and work efficiently.

It is therefore important to weigh up what is more important: lower costs and efficiency or more autonomy?

In the first case, if you and the various co-owners choose a supplier together (e.g. for cleaning, electricity and natural gas), you will benefit from the economies of scale and framework contracts. In other words, you are going to save money by doing that. In the second case, with multiple partial associations, you have more freedom of choice and autonomy when it comes to appointing a supplier yourself, for example. However, there is a chance that you will not then be able to benefit from more favourable contracts and management will become more expensive and less efficient.

From experience, property administrators are better able to estimate the budget required and practical matters for future co-owners, thereby ensuring efficiency in the long term. Maybe the property administrator should become the contact for the notary/promoter when the co-ownership charter is being drawn up?

Johan Vande Moortel 

9 October 2017 - Johan Vande Moortel
Tags :property manager, economies of scale, freedom of choice, professional property manager