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Self-managing a strata offers several advantages. These include reduced costs for owners, the potential for additional income by avoiding management fees, and increased control as the management layer is removed, allowing the committee and owners to make decisions independently. 

However, self-managing strata properties can lead to more costly disputes without a proper understanding of the existing legislation and regulations. This is when engaging professional strata management comes in.

What’s Strata Management?

“Strata Management” involves the day-to-day operation and management of multi-owner properties with multiple units and common facilities and areas. This idea comes from an Australian law called “strata title,” which deals with managing shared ownership in a building. While it started in Australia, it’s now used in many places worldwide, such as Dubai, Abu Dhabi, Canada, and the Philippines, where such services are needed. 

There are two kinds of strata management: self-managed and professionally managed. In a self-managed strata property, the owners’ corporation (the owners of the lots) handles the management responsibilities. 

Conversely, a professional strata manager assumes various duties of the owners’ corporation and provides guidance and support as needed. An example of this is the Hunter Strata Management, a strata management central coast. They’ve been offering strata management services, such as developer consultations, insurance quotes, levy estimates, and draft budgets, to Central Coast residents for almost 25 years. 

Self-managing strata properties can vary widely in their success, with some being exceptionally well-run while others may face challenges that significantly impact residents. Its effectiveness depends on how well strata management tasks are carried out. 

These strata management tasks include but aren’t limited to the following: 

  • organizing and maintaining strata records
  • handling accounting tasks such as managing cash accounts
  • paying invoices
  • producing financial reports and addressing tax requirements
  • issuing and collecting levy payments
  • running committee meetings
  • taking action on committee decisions
  • managing communications and addressing disputes
  • establishing and overseeing a repairs and maintenance program
  • understanding and complying with all legal requirements and obligations

As noticed, managing a strata property can be a time-consuming responsibility. It also demands diligence and hard work to be done correctly. That’s why self-management is advisable only if the owners are confident that they can effectively handle the tasks mentioned above. Otherwise, hiring a professional strata manager is a better solution.

Why Is A Strata Manager Necessary

Hiring a professional strata manager comes with a lot of benefits. First, every strata property needs to have a yearly meeting called the Annual General Meeting (AGM). In this meeting, they talk about important things like money, voting for the committee, managing the property, and taking care of maintenance. 

If these meetings aren’t well-planned, they might forget about essential matters, causing bigger issues later. If the meetings are often late, it could show that the property isn’t being appropriately organized. A professional strata manager helps ensure these meetings happen on time and in a well-organized way. 

Second, hiring professional strata managers offers effective financial management, ensuring well-managed fees and levies. They can make handling money matters much easier for the owners. They also help set budgets for the year, adjust fees, and ensure bills are paid on time. 

In other words, the owners won’t have to worry much about accounting and finances. Conversely, if they self-manage their strata, they have to deal with all these financial transactions. If they’re not knowledgeable about them and can’t manage them well, they may hurt their property’s compliance and market value. 

For example, if fees aren’t paid on time, it could show that the owners’ property lacks a good system. This lack of organization can lead to bigger financial problems, leaving expenses uncovered and causing issues for potential buyers and current owners. 

Overall, a strata management provider can assist owners’ corporations in handling the property’s finances openly and ethically. These experts can dive into the details when the numbers seem confusing and investigate issues on behalf of the owners’ committee. They can provide financial reports and helpful insights to ensure they get the most value from their strata property. 

Lastly, strata managers are well-versed in strata legislation. They can clarify owners’ queries and help them implement their state’s strata legislation. Laws are known to be amended often, so owners must always be aware of and compliant with all these changes. Otherwise, they’ll likely face heavy fines and legal consultation fees due to compliance failure. 

Additionally, if a dispute takes place, strata managers can quickly handle the issue “legally”. They can handle mediation without escalating it to a more formal and often costlier dispute resolution option. This can save the owners’ corporation’s reputation, time and money.

Final Thoughts

In the complex world of strata management, having a strata manager isn’t just necessary but also a game-changer. From legal matters to financial management, communication to quick issue resolution, a strata manager is crucial in making strata living a positive experience for everyone involved.