When it comes to managing a strata scheme, one of the first and most significant decisions is whether to opt for self-management or engage professional strata management services. Both approaches have advantages, disadvantages, and demands on property owners, which is why understanding both options is crucial.

This blog analyses the core differences between self-management and strata management, focusing on responsibilities, financial implications, advantages, and key considerations to help your strata community decide.

What Does Self-Managed Strata Mean?

A self-managed strata means that the lot owners themselves take on the duties and responsibilities usually handled by a professional manager. In this setup, members of the owner’s corporation oversee all tasks, such as maintenance, budgeting, compliance, and organising meetings. It can be a cost-effective option for small buildings or tightly-knit communities that are willing to take on the extra work.

However, self-managing a strata scheme also means that the owners are responsible for understanding and applying relevant laws, maintaining compliance, collecting levies, keeping financial records, and coordinating repairs. This level of involvement requires time, organisation, and a good understanding of the Owners Corporation Act 2006.

Understanding Professional Strata Management

Professional strata management in Melbourne involves hiring a licensed manager or company to handle the day-to-day tasks associated with running a strata scheme. These services are very common and highly valued for their convenience and expertise.

 

A strata manager acts on behalf of the owner’s corporation and handles a wide range of responsibilities, such as:

• Organising maintenance and repairs for common property.

• Preparing financial statements and annual budgets.

• Collecting levies and managing funds.

• Ensuring compliance with strata laws.

• Coordinating meetings and documentation.

Choosing professional strata management in Victoria is especially beneficial for larger or more complex properties. It reduces the administrative burden on owners and ensures that the building remains compliant and well-maintained.

Comparing Self-Managed and Professional Strata

To decide which option is better, let’s take a look at some of the differences in more detail:

1. Cost

• Self-managed: Generally lower out-of-pocket expenses since there are no professional fees.

• Professional management: Professional management may cost more due to service fees, but this often comes with a higher level of service and fewer issues.

2. Time Commitment

• Self-managed: Requires significant time from the owners to organise meetings, manage contractors, and maintain records.

• Professional management: Professional management saves owners considerable time and effort, with the manager handling most duties.

3. Expertise

• Self-managed: Owners must stay updated on legal requirements and processes.

• Professional management: Managers are licensed and trained, with deep knowledge of strata legislation.

4. Compliance

• Self-managed: Higher risk of missing legal obligations, especially as regulations change.

• Professional management: Ensures the building meets all compliance standards.

5. Decision Making

• Self-managed: Owners are fully in control, which can be a benefit if they are well-organised.

• Professional management: Managers act on the direction of the owner’s corporation, offering support but not overriding owner decisions.

 

In areas like Melbourne, where property laws and regulations can be quite specific, many owners find that professional strata management in Melbourne brings peace of mind and reduces the risk of legal or financial issues.

Self-Managed or Professional Management: How to Decide

Here are a few key questions to ask when deciding between self-managed and professional strata management in Melbourne:

• Do owners have the time and interest to manage? If owners are busy or not confident in handling legal and financial matters, professional management is a safer choice.

• Have there been past issues? Disputes, maintenance delays, or non-compliance are signs that a professional may be needed.

• What is your budget? While self-management saves money upfront, professional management can prevent costly mistakes in the long run.

 

Companies offering strata management services can tailor solutions based on the building’s size and complexity. This is why many property owners in Melbourne prefer to hire professionals.

Frequently Asked Questions

1. Is it legal to self-manage a strata property in Victoria?

Yes, it is legal. The Owners Corporation can choose to manage the scheme themselves if they believe they can handle all the responsibilities.

2. What are the risks of self-management?

The main risks include non-compliance with legal obligations, poor record-keeping, mismanagement of funds, and unresolved disputes between owners.

3. How much does professional strata management cost in Melbourne?

Costs of professional strata management in Melbourne vary depending on the size and needs of the property. Most providers charge an annual fee based on the number of lots and the services provided.

4. What should I look for in a strata management company?

When searching for ” strata management near me, ” look for experience, local knowledge, transparency in pricing, and positive client reviews.

5. Can I switch from self-managed to professional management later?

Yes, the owner’s corporation can vote to appoint a strata manager at any time through a general meeting.

Conclusion:

Both self-managed and professional strata management options come with their own advantages. The best choice depends on your property’s needs, the owners’ availability, and your willingness to take on administrative tasks. Professional strata management is the more practical and effective option in many cases, especially for busy owners or larger buildings. 

For trusted, professional strata management, call us at (03) 9804 8770.