All Owners Corporations must decide whether they want a self-managed strata scheme or whether to hire strata management professionals. Let’s take a look at some key considerations for both options
What is self-managed strata?
Self-managed strata is a system whereby no external strata management company is involved in running your property. So, in this type of strata setup, the strata committee generally takes care of everything. There are three major office bearer roles to fill – the secretary, treasurer and chairperson. Aside from this, other committee members may have a range of responsibilities depending on their skill sets.
Typically, the strata committee does everything from chairing and organising meetings to dealing with daily issues such as maintenance, complaint and by-laws breaches. This type of system works well if you have skilled operators on your committee. If not, it can become problematic and in fact costly. Any prospective purchasers conducting their due diligence will want to see a well run and compliant owners corporation, if this isn’t evident, they may be put off buying into the strata plan. That’s exactly why some schemes prefer to use a professional strata management company to ensure all i’s are dotted and t’s crossed.
Strata Hub reporting
One of a strata management company’s major responsibilities is handling all Strata Hub reporting in NSW, a new initiative that came into force in 2022. Strata Hub is an initiative that keeps all of your scheme’s management data in one place. It also provides support for emergency situations and keeps strata committees up to date with relevant strata information. Reporting needs to occur every year.
The reporting requirements include key information such as address, number of lots, registration date and office bearer details. But a lot of extra information is required, too, such as meeting details, fire safety information, financial records, occupation certificates and more.
While there are numerous benefits to Strata Hub reporting, it’s also quite a task, and failure to report may result in a fine. This is why many strata schemes prefer to have a strata management company because self-managed schemes need to handle all the reporting themselves
Considering committee member availability
Strata committee roles are voluntary and unpaid. Many members have other jobs, families and responsibilities of their own. So, let’s consider that your committee member in charge of parking disputes is unavailable for the day, and residents have complaints about parking. This causes a delay until your committee member is available
A strata management company, in comparison, can deal with enquiries quickly and efficiently, making everything a lot smoother for residents and avoiding conflicts between the committee and residents.
A strata scheme typically has a lot of money going in and out each year. Strata fees form the majority of the incoming money, and routine costs form most of the expenses. Unless you have experienced financial managers in your Owners Corporation and they’re willing to perform the voluntary role of treasurer, it’s daunting to look after these finances.
From approving expenditures to planning for major renovations, there is a lot to consider. Not to mention the taxation and other financial reporting requirements each year. Levy arrears and subsequently debt collection may be a difficult conversation between neighbours and best left to an independent third party such as More Than Strata.
Need expert strata management?
More Than Strata is your go-to for professional strata management services. We offer a comprehensive service designed to make life easier for your Owners Corporation, committee and residents. Take away the stress, and contact More Than Strata today to find out how we can help.