Strata management services are crucial to the successful running of properties that are jointly owned or co-owned by individuals. Read on to find out what strata management can do for you.
The details concerning the management of strata schemes have been outlined in the Strata Schemes Management Act 2015. Simply put, strata management involves the administration of state estates. This administration is carried out by a strata management company hired by the owners corporation to take over and fulfill their responsibilities. So, in essence, the strata manager answers to the owners of the lot, not individuals, and is given the mandate to ensure the smooth running of the schemes.
Typically, the strata manager works under a contract for a reward. The contract terms are stipulated by the owners and the manager must act within the limitations of that contract and the regulations set by the Strata Property Act. Let's look at what strata management can do for your venture in more detail.
Here's a detailed breakdown of what strata management can do for you and strata manager's duties and responsibilities.
Strata management ensures that residents of strata properties live in a well-maintained environment. As such, a strata manager must recruit cleaners, gardeners, repairmen, and other personnel needed for the upkeep of common areas, such as parking lots, swimming pools, and gardens. They are usually the first point of contact if urgent repairs are needed, and they can make maintenance decisions on behalf of the lot owners The strata manager does all this with the approval of the owners corporation.
Running a strata project is similar to running a complex business, so financial matters also come into play. Thus, strata management also involves financial management. To begin with, the owners corporation must make available a pool of funds as per the contribution notice and annual financial budget prepared by the strata manager. The strata manager then uses the funds to arrange invoice payments to cover insurance, utility bills, taxes, and other everyday expenses needed to keep everything running smoothly. Other related responsibilities include the preparation of financial statements as well as levy and GST management.
Strata management also involves a lot of paperwork. For starters, the manager must establish, update, and maintain all strata records. They should also maintain the strata committee's register or the strata roll. Documents that must be managed and kept include correspondence paperwork, notices, proxies, and agreements. The strata manager is responsible for preparing a wide range of paperwork, such as agendas, minutes, contribution notices, and notices of committee meetings.
Strata managers are the middlemen in interpersonal relations and correspondence amongst owners. They organize meetings, events, social occasions and attend to any required correspondence. They also help resolve conflicts since their involvement is considered objective.
Strata schemes are expected to adhere to Australian property ownership and management laws. The strata laws in the country apply to all schemes, and strata managers have intimate knowledge of how each law works and how to stay compliant. They also make an effort to stay up to date with changes in legislation to ensure round-the-clock compliance to safety and building regulations.
It's important to note that an owners corporation consists of individuals who are not experts at running a strata scheme. While the owners corporation remains in total control over the scheme, they continuously rely on strata managers to provide advice and guidance on any challenging or complex strata issues. So besides the duties and responsibilities outlined so far, a strata manager's work is never done. There's a constant need to liaise with the strata committee to ensure proper administration of the strata estate.
To conclude, strata management is performed by trained specialists that provide an invaluable service. Contrary to popular opinion, strata management is not equal to property management. Strata management is generally a more complicated and involved process. Therefore, hiring a strata management company with licensed professionals makes it easier for strata committees to stay legally compliant.
Strata management helps owners corporations to adequately and effectively manage a strata-titled scheme. Strata management companies offer a wide range of benefits that are a direct result of the duties and responsibilities they take on. So when it comes to, what can strata management do for you, the above-mentioned duties and their associated benefits will make it clear why you need to engage strata management services.