If you’re part of a strata scheme, you probably understand how complex the daily operations can be. Managing finances, maintaining the building, organising meetings, and ensuring compliance with the law can be overwhelming. That’s where appointing a strata manager becomes essential. Whether you’re dealing with a new development or a long-established property, having a professional on board makes all the difference. With proper strata management, your scheme can run smoothly, reduce disputes, and stay legally compliant.
To learn more about how to appoint a strata manager, keep reading this guide.
Understanding The Role Of A Strata Manager
The role of a strata manager involves handling the administrative, financial, and maintenance aspects of a strata scheme. This includes preparing and managing budgets, organising annual general meetings (AGMs), collecting levies, managing insurance policies, ensuring building compliance with safety laws, and handling maintenance requests.
Strata managers also maintain records, manage disputes, and ensure the scheme’s by-laws are enforced. Essentially, they act as a professional helping hand to ensure the day-to-day operations of the strata scheme are taken care of efficiently.
It’s important not to confuse a strata manager with a building manager. A strata manager focuses on the overall management of the strata scheme, including finances, meetings, and legal compliance. On the other hand, a building manager is usually involved in the physical upkeep of the property. They handle things like cleaning, maintenance work, and on-site supervision.
While both roles are important, appointing a strata manager offers broader oversight and ensures your scheme meets legal and operational requirements.
When Should You Appoint A Strata Manager?
If you’re unsure whether your strata scheme needs a professional manager, consider the workload and current management structure. While some smaller schemes are managed internally, larger or more complex properties often benefit from professional help. Here are a few signs that indicate it might be time to consider appointing a strata manager:
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Frequent Disputes Among Owners:
Persistent disagreements among strata owners can create a toxic and unproductive environment. When conflicts escalate over issues like parking, noise, or property maintenance, it signals a breakdown in internal governance. A strata manager can act as a neutral mediator, implementing fair processes and enforcing bylaws to resolve disputes, helping to maintain a more harmonious community.
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Difficulty Maintaining Common Property:
Maintaining common areas requires organised scheduling, budgeting, and skilled oversight. If the common property is deteriorating or if maintenance tasks are consistently neglected, it suggests the current management structure is struggling. A strata manager brings professional expertise to ensure regular upkeep, preventative maintenance, and prompt repairs, protecting the property’s value and appeal.
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Incomplete Or Inaccurate Record-Keeping:
Accurate and accessible records are crucial for transparency and accountability in strata management. If financial statements, meeting minutes, or insurance documents are disorganised or missing, they can create potential legal and financial risks. A strata manager implements robust record-keeping systems, ensuring all documentation is up-to-date, compliant, and readily available to owners.
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Lack Of Knowledge Around Strata Laws And Compliance:
Strata legislation is complex and subject to change. If the strata committee lacks the necessary expertise to navigate these laws, it can lead to costly compliance failures and legal liabilities. A strata manager possesses in-depth knowledge of relevant regulations, ensuring the strata scheme operates within the legal framework and avoids penalties.
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Inconsistent Or Delayed Levy Collections:
Consistent and timely levy collections are essential for funding strata expenses. If payments are frequently delayed or if there’s a high rate of arrears, it can strain the strata’s finances and hinder essential services. A strata manager implements efficient collection processes, enforces payment deadlines, and manages arrears effectively, ensuring a stable cash flow.
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Poor Communication Among Members:
Effective communication is crucial for a well-functioning strata scheme. If owners feel uninformed or if communication channels are inadequate, this can breed mistrust and dissatisfaction. A strata manager acts as a central point of contact, facilitating clear and timely communication and ensuring all members are kept informed about important matters.
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Overwhelmed Or Underqualified Strata Committee:
Strata committee members are often volunteers who may lack the time or expertise to manage complex strata responsibilities. If the committee is overwhelmed, struggling to cope, or lacking the necessary skills, it can lead to mismanagement. A strata manager provides professional support, taking on the administrative and operational burdens and allowing the committee to focus on strategic decision-making.
Thus, appointing a strata manager at the right time can protect your property’s value, prevent legal issues, and ensure a smoother community living experience. They also ensure precision in adhering to complex strata legislation and financial responsibilities, which ultimately minimises the risk of costly legal disputes and compliance failures.
Legal Requirements And Regulations
Each Australian state has specific laws for strata management. In Victoria, the Owners Corporations Act 2006 governs the responsibilities and powers of strata committees and managers. When appointing a strata manager, it is essential to follow the appropriate legal process, including holding a general meeting and securing the necessary votes from lot owners. Strata management in Victoria must comply with all obligations under this act.
Steps to Appointing a Strata Manager
Search fAppointing a strata manager involves several key steps. Here’s a detailed guide to help you make the right decision for your strata scheme:
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Assess Your Strata’s Needs
Before appointing a strata manager, evaluate the size and complexity of your scheme. Consider the number of lots, common facilities, maintenance needs, and administrative workload. This will help you identify the level of service you require and ensure the manager can handle your specific needs.
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Understand Legal And Contractual Obligations
Strata management is regulated by state laws. You must ensure that any appointment complies with the Owners Corporations Act. Contracts should outline the manager’s responsibilities, duration of service, fees, and termination clauses. It’s crucial to understand your obligations before signing any agreement.
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Research And Shortlist Candidates
or “strata management near me” to find local providers. Look at qualifications, licenses, and industry experience. Read client reviews, ask for references, and check their involvement in similar-sized schemes. Shortlist at least three strata managers to compare.
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Request And Compare Proposals
Ask shortlisted strata managers to submit detailed proposals. These should include the scope of services offered, pricing structure, and sample contract terms. Compare them not just on price but on the value of services, responsiveness, and understanding of your specific strata scheme.
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Hold A Vote And Make A Decision
The strata committee should meet to review the proposals and make a recommendation. The appointment must then be voted on at a general meeting of the owner’s corporation. In most cases, a majority vote is required to pass the resolution.
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Finalise The Contract And Onboarding Process
Once the vote is successful, finalise the agreement with the chosen manager. Ensure a clear onboarding process that includes handing over records, setting up communication channels, and aligning expectations on service delivery. A good start sets the tone for a successful partnership.
Common Pitfalls to Avoid
While appointing a strata manager can bring significant benefits, there are a few common mistakes to watch out for, which may include:
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Lack of due diligence
A superficial search for a strata manager can lead to significant headaches. Failing to thoroughly investigate their background can mean you end up with a manager who lacks experience in your building’s specific type, leading to poor handling of issues. Beyond simple references, it’s vital to check their industry certifications, past client testimonials, and their history of resolving complex strata issues.
A manager with a history of unresolved disputes or financial mismanagement can create legal and financial risks for your scheme. Inadequate checks might also miss red flags regarding their communication style or responsiveness, leading to frustration and a breakdown in trust among owners.
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Not Reviewing The Contract Properly
Strata management contracts are complex, and a quick glance can leave you vulnerable to hidden clauses and unexpected costs. Without a detailed review, you might find yourself paying for services you don’t need or lacking clarity on essential responsibilities. For example, vague language regarding maintenance or repair costs could lead to disputes over who pays for what.
The contract might also contain unfavourable termination clauses or automatic renewal terms, locking you into an unsatisfactory arrangement. Failing to understand the dispute resolution process can leave you without recourse if problems arise. A thorough review ensures that all terms align with your expectations and protects your scheme from potential financial or legal pitfalls.
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Choosing Based On Price Alone
While budget is a consideration, selecting a strata manager based solely on the lowest price can be costly. A manager who undercuts the market might compromise service quality, leading to deferred maintenance, delayed responses, and poor financial management. This can increase long-term costs, decrease property values, and cause potential legal issues.
A manager with insufficient resources may struggle to handle emergencies or provide timely communication, leading to dissatisfaction with the owner. A slightly higher fee might secure a manager with better experience, stronger industry connections, and a proactive approach, ultimately providing better value and protecting your strata scheme’s interests.
How To Change Or Remove A Strata Manager?
If your current strata manager isn’t meeting expectations, it may be time to make a change. Common reasons include poor communication, unresponsiveness, lack of transparency, or failure to meet legal obligations. In these cases, the strata committee can initiate a change to ensure better service.
To remove or change a strata manager, you must follow legal procedures as outlined in your contract and state legislation. This usually involves passing a resolution at a general meeting. Make sure to review the termination clauses in the current contract to avoid penalties. After termination, follow the same steps listed earlier to appoint a new strata manager.
Conclusion
Appointing a strata manager is a critical decision that can significantly improve the functioning of your strata scheme. With the right professional in place, your community can enjoy better compliance, financial stability, and smoother day-to-day management. Always follow the correct steps and do your research to make the best choice for your property.
Need help with Strata management? Call (03) 9804 8770 today for trusted, professional service.
