Some owner’s corporations choose to manage themselves. When this happens, a few individuals volunteer to take on the tasks that a Body Corporate Manager would have done. These volunteers may be very motivated and well meaning but more often than not, things go wrong. When building matters are left to a person that may have a stake in any outcomes, this may cause a conflict of interest. In the worst case scenario, the building may suffer from not being adequately protected against potential risks.

Below are some self-management pitfalls to watch out for.

⦁ Not paying fees on time:

Every strata title will accrue fees that need to be paid on time. When a body corporate is self-managed, these can go unpaid and important maintenance or repairs does not take place. This makes the building become rundown and the building can fall into disarray. Renting apartments becomes harder and the resale value of the property can also decrease. At Montano Strata Management, all our managers are meticulous with record keeping and will ensure that all fees are paid on time.

⦁ Failure to deal with neighbour disputes:

Self-managed owners’ corporations may not always know all the statutory requirements that need to be met when decisions are being made. Unilateral decisions can be made in such cases which lead to some members being disadvantaged. As a result, arguments and disputes will come up and these can be hard to mediate if only invested parties are involved. When you work with a Montano Strata manager, all disputes will be dealt with professionally and efficiently.

⦁ Keeping body corporate fees low:

In the short term, this may seem like a good thing as everyone gets to save money but it can have long-term repercussions on your investment. Without proper planning, the administration and capital works fund may not have sufficient capital to cover the costs of the scheme. It is incredibly important that funding is in place to cover the monthly costs of the scheme but also to undertake repairs when necessary. A detailed budget in place will ensure the building will not degrade, and owners can continue to experience capital growth and rental returns for their investment. Keeping the body corporate fees low for the sake of having low fees is not the best long term outcome in maintain the current condition of the property.

⦁ Poor succession planning:

Should the current owner currently managing the strata title decides to sell or can no longer give their time, another owner to take on the role will need to be found. A replacement can be hard to find and even harder to train to take up the job. As such, the efficient running of the strata scheme can quickly be undone. In such a case, call Montano Strata Management and we will provide the solution to efficiently manage your strata scheme.

Do you have any questions regarding residential and commercial strata management? Are you looking to switch strata managers? Not altogether satisfied with the information you’ve been getting from your current strata managers? Don’t hesitate to contact Montano Strata’s qualified team today.

Many owners in body corporate schemes question if it is necessary to get an outsider to look after the complex on their behalf. From an outsider’s view it may seem like the work that an owner’s corporation manager does can be done by anybody else but this could not be further from the truth. Today we will take a look at why it is a good idea to get a professional on the job. Below are the top 6 reasons why it is better to appoint a manager to take care of your strata title.

1. A strata manager ensures compliance with statutory requirements:

There are a lot of legislative requirements that must be met by strata schemes. A good strata manager is aware of any amendments or changes to these statutory requirements which can affect your strata scheme and ensures that you are always in compliance.

2. A strata manager carries out day to day tasks

Every Body Corporate has day to day tasks that need to be carried out. A good strata manager will coordinate any repairs required, attend and provide minutes for all meetings. A strata manager is responsible for paying invoices as well as all the financials for the strata scheme. The manager also issues and collects levies and attends to any correspondence.

3. A strata manager is responsible for the record keeping:

Body corporate records must be kept in line with legislative requirements. A strata manager is responsible for making sure that this is adhered to. The strata manager also ensures that any and all records are always readily available to lot owners and any other interested parties.

4. A strata manager manages the bank accounts:

Finances can be tricky and if left to just anyone can result in unnecessary losses. A good strata manager prepares the financial statements when they are needed. This can be for tax audits, BAS lodgements or for tax returns. The manager takes care of the term deposits and deals with levy recovery.

5. A strata manager handles all insurance issues:

It is important that each Body Corporate has insurance that covers their scheme. A strata manager obtains quotations, helps in picking the right insurance for the title, deals with insurance claims and obtains policy renewal quotations.

6. A strata manager can be objective on all matters:

Sometimes issues can arise in the Body Corporate. With everyone having a stake in the outcome of any dealings that the strata undertakes, it is prudent to have a neutral party that can be objective in such cases.

Do you have any questions regarding residential and commercial strata management? Are you looking to switch strata managers? Not altogether satisfied with the information you’ve been getting from your current strata managers? Don’t hesitate to contact Montano Strata Management’s qualified team today.