If you live in or own property in a multi-unit development such as an apartment complex, townhouse estate, or commercial strata building, you’ve likely encountered the term strata management. But what exactly does it involve, and why is it crucial for the smooth operation of shared living or working spaces?
Understanding Strata Management
Strata management refers to the administration of the owners corporation (also known as a body corporate) in a property where multiple owners share common areas and facilities. These can include lobbies, gardens, elevators, gyms, parking, and more.
A professional strata manager is usually appointed to handle the day-to-day running of these shared spaces and to ensure that the legal and financial obligations of the strata scheme are met.
Key Responsibilities of a Strata Manager
While responsibilities vary slightly depending on the region and type of strata scheme, strata managers generally handle:
- Financial Management: Preparing budgets, managing levies, paying invoices, and maintaining records.
- Maintenance & Repairs: Coordinating regular servicing and addressing urgent repairs for common property.
- Insurance: Ensuring the building has adequate and legally compliant insurance.
- Compliance & Legal Duties: Keeping the strata scheme in line with local laws and regulations.
- Meetings & Communication: Organizing annual general meetings (AGMs), distributing meeting minutes, and keeping owners informed.
- Dispute Resolution: Mediating conflicts between owners or residents when necessary.
Why Good Strata Management Matters
Poor strata management can lead to disputes, financial mismanagement, and deterioration of property value. On the other hand, effective strata management:
- Preserves property value through proper upkeep.
- Fosters a stronger community by encouraging clear communication and transparency.
- Ensures legal compliance, avoiding costly penalties.
- Reduces stress for owners, especially investors who don’t live on-site.
Self-Managed vs. Professional Strata Management
Some smaller properties choose to self-manage their strata affairs. While this may reduce costs, it often leads to burnout, inexperience-driven decisions, and strained relationships among residents. Hiring a licensed, experienced strata manager can bring peace of mind and professional oversight that’s difficult to replicate in a DIY setup.
Choosing the Right Strata Manager
When selecting a strata manager, consider:
Reputation and reviews from other strata communities
Experience and qualifications
Transparency in fees and services
Communication style
Technology tools (for things like maintenance requests, levies, and documents)
