FAQ Strata Management Services.
Here are some common questions about Strata Management services.
What is an Owners Corporation?
An Owners Corporation (formerly Body Corporate) manages the common property of a residential, commercial, retail, aged care, apartment hotel, industrial or mixed-use property development.
What is the difference between Owner’s Corporation, Body Corporate & Strata Management?
These terms can be used interchangeably (depending on which state in Australia you’re in). Strata management (or owners corporation management in Victoria) is the management of the legal entity that owners the common property of a building (i.e. the body corporate / strata scheme/owners corporation).
What's covered in your Annual Fees/Budget?
Your Strata Management administration fund fees include general maintenance and upkeep of the building, maintenance and upkeep of any common areas and amenities, building insurance, strata management fees, utilities to any common areas (for example, electricity to run elevators or lighting common areas).
There are many factors that impact on strata fee costs. One of the biggest is the number of facilities on site that require ongoing maintenance such as a gym, pool, lifts, essential services, roadways or gardens/grounds or whether the owners corporation has a maintenance plan.
Create a maintenance plan
Tier 1 or Tier 2 Owners Corporations are subject to the requirement of having a maintenance plan/fund.
Your maintenance plan should include the following:
- Major capital items requiring repair or replacement over the next 10 years
- The present condition of those items
- When the items or components will need to be repaired or replaced
- The estimated cost of their repair and replacement
- The expected life of those items or components once repaired or replaced.
More than 100 occupiable lots (and not a services only OC)
51 to 100 occupiable lots (and not a services only OC)
10 to 50 occupiable lots (and not a services only OC)
3 to 9 occupiable lots (and not a services only OC)
2 lot subdivision or a services only OC.
What’s covered in your Management Fees?
Strata Management fees cover the associated costs for administrative functions, review of all contractors/contracts annually (providing owners with the comfort of knowing they are getting good value and great service), transferring all documents to electronic format, obtaining quotes, placing insurance and handling claims, fee & reminder notices (final notices charge to the debtor lot), online access to property and personal information, work requests and quoting, financial management, budget preparation, postage, stationary, annual site visit.
What do the disbursement fees include?
Disbursements are the costs of carrying out the corporations business, these include items such as:
- Purchase and creation of files
- Document Storage
Many of the items covered by disbursements are not seen by unit owners as they involve sending remittance notices to contractors or work behind the scenes such as file creation and document storage inline with legal requirements and timeframes.
Disbursements can be charged either “at cost” or at an agreed flat rate amount, although we have seen examples of companies charging a combination of the two or adding additional fees to the mix such as key/common seal holding and archiving.
Additional fees may also be applicable and are dependent on the functions being carried out by the manager. You should check with your manager in relation to this.
How does an Owners Corporation raise its funds?
An Owners Corporation raises funds by levying contributions against all lot owners. The amount that each lot owner contributes to maintenance funds is calculated according to the ‘lot entitlement’ accompanying the Strata plan.
What is the role of an Owners Corporation committee?
The owners corporation (strata) committee of the owners corporation is a group which represents owners or owners’ nominees. The committee are elected at each AGM (Annual General Meeting)
The committee volunteer their time to assist the manager in administering the day-to-day running of the owners corporation.
The size of a Committee will vary depending on the number of units on the premises.
However, each committee includes some specific roles. These are the:
A member of an owners corporation committee or sub-committee must:
- Act honestly and in good faith
- Exercise due care and diligence
- Act in the interests of the owners corporation
- Not make improper use of his or her position as a member to gain an advantage (directly or indirectly) for themselves or for any other person
The committee must report to the Owners Corporation at each annual general meeting.
Once elected, the Committee will meet regularly to discuss and review the management of the building. Their overall goal is to ensure people are happy and safe, and to arrange for the building to be taken care of so it maintains value for unit owners.
What are the specific duties of a Strata manager?
Owners Corporation Managers are appointed by the Owners Corporation to carry out its functions in managing and administering the common property. These include maintenance and repairs, collecting fees, maintaining insurance and keeping financial records.
The role extends to the facilitation in dealing with defects, cladding issues, legal matters and/or disputes.
What is the difference between Strata Managers and Property Managers?
The main difference between a Strata Manager and a Property Manager is the Strata Manager works on behalf of all apartment owners and focuses on issues pertaining to common property, while the Property Manager works on behalf of one apartment owner and focuses on issues pertaining to private property.
Who should I contact for more information?
Please visit our contact us page on the link below.
contact Access strata management today
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Access Strata Management
With over 20 years' experience we are the leaders in the Strata industry, specialising in providing timely & professional Strata management services to our clients.
We are experienced in managing various Strata schemes, including residential, stratum, land, industrial, retail, commercial, Strata building management & mixed-use developments.
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