Strata management refers to a section of property management that specifically deals with the administration of strata schemes in Australia. It includes a host of professionals whose duties relate to overseeing the day-to-day operations of a strata scheme. Consequently, the success of a strata relies upon its manager’s skill and efficacy.
The strata management industry is relatively new. You can trace its origins to the period after the NSW Parliament passed the Conveyancing (Strata Titles) Act of 1961. This legislation led to a marked increase in the number of strata schemes being established. However, each new community that arose had its own sets of needs. Consequently, the resultant body corporates began to find it more challenging to manage their strata effectively. These shortcomings then created a niche that real estate professionals identified and began to file into; hence, the establishment of strata management positions.
If you are asked to define strata management, you need only refer to its purpose within the strata industry. Therefore, you can say that strata management is the act of carrying out the functions of a body corporate in exchange for financial compensation. Notably, the most visible individual in strata management circles is the strata manager.
A strata manager is often responsible for a building or group of properties, depending on the size of the strata scheme. They derive their mandate from the owners’ corporation. As a point of comparison, a strata manager differs from a property manager in the scope of their obligations. A property manager takes care of individual units within one development. In contrast, strata management services oversee the entirety of the development, including the buildings and common areas.
Sometimes, the property manager may have to answer to their strata counterpart.
Since the body corporate’s needs dictate a strata manager’s duties, they have to tailor their skills accordingly. Conversely, the primary role of a strata manager lies in ensuring the effective operation of the strata community. To do so, they may implement structures that allow for smoother execution of their functions. Furthermore, the systems they put in place benefit from the strata manager’s industry experience.
Having a good strata manager is a valuable advantage. Conversely, competent strata management services will be in high demand. As a result, one manager may be in charge of multiple strata. To avoid conflict or misunderstandings, the strata manager signs a contract with the owners’ corporation. The contract states clearly the responsibilities that each party holds. With an agreement in place, it becomes easier to keep track of all the expectations.
While the manager’s obligations may differ significantly with many clients on their portfolio, there are still a few core responsibilities that the body corporate can assign, including:
- Administration- A strata manager handles correspondence concerning the strata, such as letters and notices from the insurance company and bills from contractors. They also schedule, communicate and run the body corporate’s meetings.
- General maintenance- There are a lot of components within a strata that require constant care, so the strata manager oversees the maintenance of these areas and commissions repairs when needed.
- Financial oversight- A lot of money moves within strata schemes, for instance, the fees members of the body corporate pay into the scheme and the bills this money is used to settle. Therefore, a manager needs to keep a sharp eye on and maintain a careful record of income and expenditures related to the living community.
Strata management takes on the complexities of strata schemes throughout the country and simplifying their operation. Consequently, living communities throughout Australia are thriving and becoming the ideal places to live.