Why is having a professional Strata Manager important for your Owners Corporation?

Owning a property within an Owners Corporation can be both rewarding and challenging. While it can provide you with a sense of community and shared responsibility, it can also come with its fair share of issues and complexities. This is where a professional Strata Manager comes in – someone who can help you navigate the complexities of managing an Owners Corporation and ensure that your property is well-maintained and compliant with all legal requirements.

What is an Owners Corporation?

An Owners Corporation, formerly known as a body corporate is responsible for the management and maintenance of common property and assets in strata schemes. It is a legal entity created to represent the interests of lot owners and ensure the proper functioning of the strata scheme. Managing an Owners Corporation can be a complex and time-consuming task, which is why having a professional Strata Manager is crucial.

What is a Strata Manager?

A Strata Manager acts as a bridge between lot owners, occupiers, and the elected Owners Corporation committee, providing expert guidance and assistance with day-to-day strata-related activities. Strata Managers also ensure that all the practical and legal requirements of the Owners Corporation are met, including record keeping, documentation management, inbound and outbound communication, contractor management, budget preparation and administration, and accounting and finance functions.

One of the most critical tasks of a Strata Manager is ensuring that adequate and appropriate insurance protections and policies are in place. Strata Managers help the Owners Corporation navigate the complex world of insurance to ensure that the scheme has adequate coverage for any unforeseen circumstances. The Strata Manager can also arrange for the renewal of policies, making sure that the scheme is never left without insurance.

Hiring a Strata Management Company

Hiring a professional Strata Manager is crucial for the smooth functioning and management of an Owners Corporation. Without a Strata Manager, the lot owners, occupiers, and the Owners Corporation Committee may struggle to manage the day-to-day operations effectively. Strata Managers possess the experience and expertise that can help resolve disputes and conflicts that may arise between different stakeholders and assist members to make informed decisions about matters that impact the Owners Corporation.

A Strata Manager can provide peace of mind to the lot owners and occupiers. Knowing that a professional is taking care of the management and administration of the Owners Corporation can alleviate stress and ensure that the strata scheme is being run effectively and efficiently.

Hiring a professional Strata Manager is important for your Owners Corporation in many ways:

• Legal Compliance: The laws and regulations that govern Owners Corporations are complex and can be difficult to navigate. A professional Strata Manager has the knowledge and expertise to ensure that your Owners Corporation is compliant with all legal requirements. They can provide guidance on legal issues, such as building defects, by-laws, insurance, and common property repairs. A Strata Manager can also ensure that all necessary documents, such as the strata roll and minutes of meetings, are kept up to date and in compliance with the law.
• Financial Management: Managing the finances of an Owners Corporation can be challenging. A Strata Manager can prepare budgets, manage levies, and ensure that all financial transactions are recorded and reported accurately. They can also ensure that all owners are aware of their financial obligations and ensure that all debts are collected promptly. A professional Strata Manager can provide guidance on how to manage financial risks, such as uninsured events or unexpected expenses.
• Maintenance and Repairs: Maintaining and repairing common property is a crucial responsibility of an Owners Corporation. A professional Strata Manager can ensure that all necessary maintenance and repairs are carried out promptly and to a high standard. They can also help to develop a maintenance plan for the building, which can help to reduce the risk of future repairs and maintenance issues. A Strata Manager can also assist in identifying potential building defects and ensuring that these are addressed before they become a major issue.
• Effective Communication: Effective communication is crucial to the success of an Owners Corporation. A Strata Manager can facilitate communication between owners, tenants, and service providers. They can ensure that all stakeholders are aware of their responsibilities and obligations and that all communication is clear and concise. A Strata Manager can also act as a mediator in the event of disputes or conflicts.
• Administration: Managing the administrative tasks of an Owners Corporation can be time-consuming and challenging. A Strata Manager can take care of administrative tasks, such as arranging meetings, preparing agendas, and distributing minutes. They can also ensure that all necessary documents, such as insurance policies and contracts, are up to date and properly stored.
• Experience and Expertise: A professional Strata Manager has the experience and expertise to manage an Owners Corporation effectively. They have a deep understanding of the complexities of Owners Corporation management and can provide guidance and support to ensure that your Owners Corporation runs smoothly. A Strata Manager can also provide advice on best practices and help to identify opportunities for improvement.

Can I manage my own strata scheme?

Self-Managed strata, also known as “do it yourself” strata management, is an alternative to traditional strata management where the Owners Corporation manages the day-to-day affairs of the strata property without the assistance of a professional strata manager. This approach can be appealing to lot owners who want to have greater control over the management of their strata property and save money on management fees.

How does this work?

In a self-managed strata, the lot owners are responsible for managing the common property, enforcing the strata rules, collecting levies, managing arrears, and arranging services such as maintenance, repairs, and insurance. The Owners Corporation will typically elect a committee to manage the affairs of the strata property on their behalf. The committee members will be responsible for carrying out the decisions made by the Owners Corporation, managing the finances of the strata, and liaising with contractors and service providers.

How hard is it?

Self-managed strata can be challenging, particularly for larger strata properties or those with complex management requirements. It is also challenging for lot owners who may not possess the experience or expertise to manage a wide range of issues with a number of stakeholders. Committee members will need to have a good understanding of strata law and regulations, as well as the ability to manage finances, handle disputes, and coordinate maintenance and repair work. Lot owners will also need to be prepared to invest time and effort into the management of their strata property, including attending meetings and carrying out administrative tasks.

Benefits and pitfalls

The main benefit of self-managed strata is the potential cost savings. Professional Strata Managers typically charge fees based on the size and complexity of the strata property, and these fees can be a significant expense for lot owners. By managing strata property, themselves, lot owners can save money on management fees and have greater control over the management of their property.

However, there are also potential pitfalls to self-managed strata. Committee members may not have the necessary expertise or experience to manage the affairs of the strata property effectively, which can lead to mistakes or disputes among lot owners. In addition, self-managed strata may be more time-consuming and stressful for lot owners who are already busy with other commitments.

While it may be tempting to manage your Owners Corporation yourself, the benefits of having a professional Strata Manager far outweigh the costs. They can provide you with peace of mind, reduce the risk of legal issues, and ensure that your property is well-maintained and compliant with all legal requirements.

Hiring a Strata Management Company

Hiring a professional Strata Manager is crucial for the smooth functioning and management of an Owners Corporation. Without a Strata Manager, the lot owners, occupiers, and the Owners Corporation Committee may struggle to manage the day-to-day operations effectively. They have experience and expertise that can help resolve disputes and conflicts that may arise between different stakeholders and assist in making informed decisions about the management of the Owners Corporation.

In addition, a Strata Manager can provide peace of mind to the lot owners and occupiers. Knowing that a professional is taking care of the management and administration of the Owners Corporation can alleviate stress and ensure that the strata scheme is being run effectively and efficiently.

While it may be tempting to manage your Owners Corporation yourself, the benefits of having a professional Strata Manager far outweigh the costs. They can provide you with peace of mind, reduce the risk of legal issues, and ensure that your property is well-maintained and compliant with all legal requirements.

How to choose a Strata Manager

Choosing the right Strata Manager is an important decision that can have a significant impact on the management and value of your strata property. Here are some key factors to consider when selecting a strata manager:

• Experience and qualifications: Look for a Strata Manager with a proven track record and relevant qualifications, such as membership of a professional industry association like SELECT Strata Communities. Ask for references and check credentials.
• Services offered: Consider the range of services offered by the Strata Manager, such as financial management, maintenance, repairs, insurance, and dispute resolution. Choose a Strata Manager that offers the services that are most relevant to your strata property’s needs.
• Communication: Communication is key to effective strata management. Choose a Strata Manager that is responsive and communicates clearly and regularly with lot owners and the Owners Corporation.
• Fees and charges: Consider the Strata Manager’s fees and charges, including any hidden costs such as additional charges for services or disbursements. Ask for a detailed breakdown of all costs and ensure that you understand the fee structure.
• Technology and systems: Choose a Strata Manager that uses up-to-date technology and systems to manage your strata property efficiently. This may include online portals for communication and reporting, automated systems for maintenance and repairs, and secure data management systems.
• Reputation and reviews: Check the Strata Manager’s reputation and reviews from other lot owners or the Owners Corporation. Look for independent reviews and feedback from clients to gauge their level of satisfaction with the Strata Manager’s services.

By considering these factors, you can select a Strata Manager that meets your strata property’s needs and provides efficient and effective management. Remember, it is important to take the time to research and compare different strata managers before making a decision.

In conclusion, if you are part of an Owners Corporation and find it challenging to manage the daily operations, hiring a professional Strata Manager can make a world of difference. They can provide expertise, ensure compliance with legal requirements, facilitate effective communication, manage finances, and ensure efficient management of your property. Call us today to learn more about how we can help you achieve the right results for your Owners Corporation.