In the world of property ownership, strata living has become increasingly popular. However, this rise in popularity brings a fair share of misunderstandings and myths around strata management services.
These misconceptions can lead to confusion, frustration, and even financial stress for property owners. In this article, we’ll explore and debunk some of the most common strata myths, shedding light on the realities of strata living and the crucial role of strata management services.
Top strata management myth
1. Strata managers take control over how a property is run
One of the most persistent misconceptions is that strata managers have complete control over how a property is run. In reality, the lot owners are the ones who run a strata property through an elected committee. This committee is responsible for day-to-day administrative tasks and record-keeping. Strata managers may be delegated tasks, but they operate under the direction of the owner’s corporation. So, while they can be contracted to support the committee with things like admin and financial duties, or maintenance and repair coordination, they are not the key decision-makers.
2. Levies are paid directly to the strata manager
Another common misunderstanding is that strata levies go straight into the strata manager’s pocket. This is not the case. Levies paid by owners are deposited directly into the owners corporation’s trust fund, which is divided into administration and capital works accounts. The strata manager is a service provider, and their fees are paid from this account, not from individual levy payments.
3. Strata fees cover everything
Many people believe that their strata fees cover all potential maintenance and repair costs, which isn’t the case. Strata fees typically cover regular maintenance of common areas, building insurance, and contributions to a sinking fund for future major repairs. However, unexpected or significant repairs may require special levies or additional contributions from owners.
For example, while regular garden maintenance might be covered by strata fees, the cost of replacing a roof or repairing structural damage could require additional funds from owners. It’s crucial for strata property owners to understand what their fees cover and to be prepared for potential extra costs.
4. Self-managed strata will save you money
Self-managed strata will save you money While it’s true that self-managed strata properties don’t pay management fees, this approach isn’t always costeffective in the long run. Self-management requires significant time, expertise, and consistent effort from volunteer owners. As owners come and go, maintaining consistency can be challenging. Moreover, the lack of professional oversight can expose the strata scheme to risks that could prove more expensive over time.
Professional strata management services bring expertise in legal compliance, financial management, and dispute resolution. They can also negotiate better rates for services and insurance, potentially saving money in the long term. You can find more details about the benefits of professional strata management vs self-managed strata here.
5. Only units and apartments are part of strata schemes
Many people associate strata schemes exclusively with apartment buildings or units. However, strata can encompass a wide range of property types. From high-rise apartments to townhouses, villas, duplexes, and even blocks of land with shared facilities like driveways – strata schemes are diverse.
6. By-laws and building rules are set in stone
Strata by-laws and building rules are often perceived as unchangeable, but this is far from the truth. These rules are designed to promote harmonious living and clarify what is and isn’t permitted within the strata community. If they become outdated, unhelpful, or incomplete, they can be changed.
Owners can propose changes to by-laws or building rules by filing a motion at the Annual General Meeting (AGM) and seeking approval through a majority vote. However, it’s advisable to consult with a strata solicitor or your strata manager before initiating this process to understand the implications and requirements.
7. Only owners can be at meetings
Speaking of meetings, contrary to popular belief, strata meetings aren’t exclusively for property owners. In some jurisdictions, like New South Wales, if more than half of the properties in a strata scheme are occupied by tenants, a tenant representative can be appointed to attend strata committee meetings and advocate on behalf of other tenants. Tenants can also be involved in committees if appointed by an owner.
This inclusivity can lead to better community engagement and more comprehensive decision-making that considers the perspectives of all residents.
8. Voting requires physical attendance
The use of technology means you don’t need to be at the meeting to vote. Owners have always had the option to vote by proxy if they couldn’t attend in person.
More recently, electronic voting has been introduced in many jurisdictions, allowing owners to participate in meetings and decision-making remotely. This flexibility ensures that all owners, regardless of their location or circumstances, can have a say in important strata decisions.
9. There is lots of in-fighting in strata communities
Some think that strata communities are rife with conflict and litigation. The reality is most strata communities operate smoothly, with residents coexisting harmoniously. In fact, strata lawyer Amanda Farmer reports, “In my experience, probably less than 10% of buildings have real problems.”
This myth likely persists due to the disproportionate attention given to conflicts when they do occur. Professional strata management services actually play a vital role in preventing and managing conflicts when they arise.
Why you need strata management services
With these busted myths in mind, here are the opportunities available to you when you invest in professional strata management services:
- Expertise in strata law: strata managers stay up-to-date with the latest changes in strata legislation, ensuring your property remains compliant.
- Efficient financial management: they handle budgeting, levy collection, and financial reporting, reducing the burden on the strata committee.
- Maintenance coordination: strata managers can organise and oversee maintenance and repairs, ensuring work is carried out efficiently and cost-effectively.
- Dispute resolution: they can act as neutral parties in disputes, helping to maintain harmony within the strata community.
- Time-saving: by handling administrative tasks, strata managers free up time for owners and committee members.
- Risk management: professional managers can identify potential risks and implement strategies to mitigate them, protecting the interests of all owners.
- Communication facilitation: they ensure clear and timely communication between owners, tenants, and the strata committee.
Talk to MBCM for premium strata management services
By dispelling these common strata myths and clarifying the realities of strata management, we hope to empower property owners to make informed decisions about their strata communities. Whether you’re considering buying into a strata scheme or looking to improve the management of your current strata property, understanding these misconceptions is the first step towards efficient and harmonious strata living. For more information, or for support from a professional strata management company, get in touch with MBCM.