The Value of a Strata Manager

A competent strata manager brings professionalism, expertise, and peace of mind to the management of strata properties. They ensure that the property is well-administered, financially sound, and compliant. By guiding the committee to manage the day-to-day administration decisions and guiding them through complex challenges, they allow owners and residents to enjoy their homes without the stress and hassle of administrative and compliance tasks.

In essence, strata managers are the backbone of successful strata communities, fostering harmony, safeguarding investments, and enhancing the quality of life for all residents.

Here’s a detailed look at what a strata manager can do for your strata community depending upon terms of engagement, and insights from leading strata management firm, Archers the Strata Professionals:

1. Administrative Duties

• Meetings: Organising and facilitating annual general meetings (AGMs) and committee meetings. This includes preparing agendas, distributing notices, and ensuring proper conduct during meetings.
• Minutes and Records: Keeping detailed minutes of meetings and maintaining records of all decisions and actions taken. Accurate record-keeping is essential for transparency and legal compliance.
• Correspondence: Managing communication between owners, tenants, contractors, and other stakeholders. This includes responding to reasonable inquiries inside the scope of our appointment, sending notices, and distributing important information.

2. Financial Management

• Budgeting: Preparing and managing the annual budget for the strata scheme. This involves forecasting expenses for maintenance, repairs, and improvements, and setting levies to fund these activities in line with the sinking fund forecasts.
• Levies: Collecting strata levies, in line with budgeted spending, from owners and managing the funds responsibly, by ensuring the budgeted works are undertaken by reputable suppliers. Strata managers ensure that funds are used appropriately and efficiently for the upkeep of the property.
• Financial Reporting: Providing regular financial reports to the strata committee. These reports detail income, expenses, and the financial health of the strata scheme.

3. Maintenance and Repairs

• Routine Maintenance: Coordinating regular maintenance of common areas such as gardens, pools, gyms, and shared facilities, either with the committee or onsite caretaker. This ensures that the property remains in good condition and complies with safety standards.
• Repairs: Arranging for repairs when issues arise, whether they are minor fixes or major structural repairs. Strata managers obtain quotes, hire contractors with the approval of the committee, and confirm the works are completed satisfactorily.
• Upgrades: Planning and implementing improvements to the property, such as installing new amenities or upgrading existing ones in accordance with the sinking fund forecasts, which can enhance the value and appeal of the property.

4. Compliance and Legal Responsibilities

• By-Laws: Ensuring that all residents and owners comply with the strata by-laws, through the instruction of the committee. These rules govern behaviour, property use, and modifications to ensure harmonious living conditions.
• Insurance: Through an insurance broker, we can navigate and facilitate communication on insurance policies for the property, including coverage and being a conduit with handling claims. This protects the owners’ investment in line with the legislative obligations and provides risk mitigation.
• Legal Guideance: Staying updated with changes in legislation affecting strata properties and ensuring that the committee have the most up to date informationon relevant laws and regulations to make the most informed decision.

5. Conflict Resolution

• Mediation: Providing guidance in addressing disputes between owners, tenants, and the management team. Strata managers, where the dispute does not require the commissioner, act as independent mediators to attempt resolve conflicts amicably and fairly.
• Enforcement: Enforcing by-laws and ensuring compliance with the rules, in accordance with the committees instructions. This can involve issuing warnings or taking legal action if necessary.  Prior to enforcement, a conciliatory approach is recommended.

6. Community Building

• Engagement: Promoting a sense of community, among residents, by organising social events and encouraging participation in decision-making processes, such as a town hall meeting on pivotal decisions
• Communication: Facilitating open lines of communication between all stakeholders to build trust and cooperation within the community.

7. Education and Training

• Advisory Role: Providing advice and guidance to the committee on best practices, legislative changes, and effective management strategies to ensure the volunteer committee have all the information to make the best decision on behalf of all those living in the community.
• Training: Offering training sessions for committee members to help them understand their roles and responsibilities better.

What Does a Strata Manager Do for Your Committee?

Insights from Archers

Archers plays a crucial role in assisting body corporate committees to effectively meet their obligations to ensure they act in the best interest of the owners to maintain and positively influence community. Upon engagement for body corporate administrative services approved at a general meeting, an Administration Agreement is entered into.

This agreement outlines the agreed services included in the management fee, additional services, and disbursements.

Summary of Agreed Services

1. Meetings:
   • Organising Annual General Meetings (AGMs) and committee meetings.
   • Preparing and issuing agendas, holding meetings, and distributing minutes.
2. Financial Management:
   • Budget preparation, levy collection, and invoice payments.
   • Securing administration and sinking funds.
3. Administrative:
   • Managing routine correspondence and maintaining records.
   • Providing the committee with guidance on legislative requirements.

Non-Routine Services

1. Special Meetings:
   • Informal or additional meetings beyond the agreed number.
2. Complex Tasks:
   • Work orders, levy arrears collections, audit preparations, and special levies.
3. Special Services:
   • Dispute resolution, cash flow management, and investment strategies.

Examples of Routine vs. Non-Routine Tasks

1. Routine Tasks (Included):
   • Simple correspondence (e.g., providing copies of by-laws or levy notices).
   • Providing owners with general information updates and finance queries.
2. Non-Routine Tasks (Additional Fees):
   • Organising extra meetings and action items from meetings.
   • Issuing by-law contravention notices and managing maintenance contractors.

Administration Agreement Key Clauses and Schedules

1. Core Clauses:
   • Duties, authorised powers, payment terms, and termination conditions.
2. Schedules:
   • Details of agreed services, additional services, disbursements, and fixed percentage increases.
   • Disclosure of associates, commissions, and applicable regulation modules.

Archers ensures comprehensive support for the committee, addressing both routine and non-routine needs to maintain and enhance the value of the property while ensuring compliance with legislative requirements.

For a more detailed look into Archers services and inclusions, click Here.

This article was contributed by Nicky Lonergan, Managing Director – Archers the Stata Professional

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