The benefits of using a strata manager

Date Published: 15 September 2024, updated 11 October 2024

Managing a strata property can be difficult, time-consuming and complex with many legislated requirements to deal with.

Many strata owners and committees are often very busy and don’t have the time or expertise required to manage their strata properties effectively.

This is where a strata manager can help. Strata managers are specially trained professionals who deal with the management and needs of strata properties. A strata manager is engaged by the committee on behalf of the strata owners* to manage the day-to-day running of the property and ensuring it is fulfilling all its legislated obligations.

The roles of a strata manager

Strata managers carry out duties such as the ones listed below. These take a particular skill set. Strata managers are experts who have a deep understanding of strata and state legislation. The strata management agreement lists the activities they perform on behalf of the strata owners and it may include one or more of the following:

Manage the building and common areas as directed by the strata owners in accordance with state legislation. This includes ongoing repairs and maintenance of the property.
Organising the annual general meeting (AGM), including sending out the agenda and taking and distributing the minutes of the meeting.
Keeping a record of all assets to ensure they are managed and maintained. This includes items found on common property such as fire safety equipment, security systems, garbage bins and lights.
Manage the financial and risk management aspects of the scheme such as:
Levies - sending notices, banking funds and following up with those who are behind in their payments.
Risk management, in the form of organising insurance and ensuring all statutory compliance is met (such as organising an occupational health and safety report).
Manage the financial accounts such as the capital works and administrative funds, budgets and financial statements.
Pay invoices for suppliers such as gardeners, electricians, plumbers and utilities.
Maintain an up-to-date record of lot owners and their details.
Dispute resolution when issues arise between lot owners or neighbors and councils.

Assistance with insurance

A strata manger can also assist with the necessary insurance for a strata property:

As an enhanced service offering many strata managers choose to become Authorised Representatives (AR) of an insurer, underwriting agency (like Flex Insurance) or broker. As an AR, strata managers are then able to assist the strata owners arranging their strata insurances and provide general advice which is an important benefit.
On behalf of the strata owners, a strata manager can coordinate the insurance for the property through their relationship with a broker, who assists with risk management and places the necessary insurance.

Strata managers are there to relieve owners of the multifaceted management required to smoothly run a strata property. Strata managers can give owners peace of mind and make living in an apartment or owning an investment strata property that much easier.

Utilises technology for effective management

Most strata managers use technology to streamline day-to-day tasks, making strata management more efficient. Digital platforms such as strata management software and apps can be used to facilitate communication between property owners, managers, tenants, and committees to ensure timely updates on important meetings, feedback, and maintenance tasks. Additionally, financial management tools are used to automate invoicing, payments, and budget forecasting to keep strata owners informed about the financial performance of their strata property and address issues before they escalate.

These tools enhance transparent communication between owners, tenants, and committee members by reducing any misunderstandings or disputes. Maintenance requests, for example, can be quickly submitted and addressed through these platforms and strata fees can be collected and allocated appropriately without any delays or confusion.

Reduces legal risks for owners

Another important role of a strata manager is keeping updated on changing regulations to ensure strata compliance. Strata managers help minimise legal risk for owners by assisting with important legislative and safety requirements including fire safety inspections, regular maintenance and property audits, and arranging annual inspections and compliance certificates for things like air conditioning towers, and cooling systems, elevators/lifts, and other safety factors. They also ensure that all records required by legislation are properly maintained and recorded.

Strata manager vs self-management

The decision to self-manage or hire a strata manager depends entirely on the size and requirements of your strata property as well as the time and resources you can dedicate to it.

There is no legal requirement to hire a professional strata manager. For some owners (especially those with smaller properties), self-management may be a more practical and cost-effective option. However, poor management may heighten the risk of non-compliance and potentially reduce the property’s value.

If you’re trying to decide between self-managing your strata property or hiring professional strata management, consider the responsibilities required for maintaining and managing your property. This includes not only the day-to-day tasks like managing finances and carrying out maintenance but also ensuring compliance and handling things like disputes, liabilities, administrative tasks, navigating levies, maintaining records, running committee meetings, actioning committee decisions, and managing all communications.

As you can see, strata management is time-consuming and requires hard work to do it right. If you are confident in your owners corporation’s ability to handle these tasks efficiently then self-management may be a suitable option. However, if you find these responsibilities beyond your scope of expertise or too overwhelming then hiring a strata manager is a wise option. Not only does it give you more time to focus on other aspects of your investment, but having the help of strata management offers greater peace of mind knowing that your property will remain compliant with all relevant laws and regulations.

*Please note: We have used the generic term of ‘strata owners’ as the name of a strata entity varies across Australia – it refers to an owners corporation, body corporate, strata company or community association.