Owning a property and deciding one day to rent it to turn some extra profit in the progress calls for a lot of responsibilities such as regular tax payments and maintenance of the property you rent. In that regard, you have to choose the type of management you wish to employ. But what is strata management exactly? Most simplistically explained strata management is a real-estate concept in which a property owner has only partial ownership of it. It also includes day-to-day operations as well as the management side of things, which makes this a bit complicated for those indulging in this without prior experience. Strata management derives its roots from the Australian concept of property law called strata title that applies to the administration of common ownership on multi-level apartment buildings. It is also known as a “body corporate management”.
Residential and commercial properties require objective management especially when they are co-owned by individuals. Although self-management is a viable alternative, strata management is far much better. DIY management comes with its drawbacks that are not worth the hustle. Moreover, the possibility of making mistakes out of ignorance and misinformation is high. Self-management has grave financial and legal implications when property management is not handled well. On the other hand, strata management is safe and has several benefits. You have strata managers that will easily take all your worries from your hands and do what they do best. Here is a look at some of the benefits given by Strata Title Management professionals which you can enjoy with strata management services.
Maintenance and repair services
As any other residential and commercial spaces have numerous common areas that need a lot of attention. Whether it is an old or new property you always have something to worry about and there is always something to take care of like parks, parking lots, gardens and playgrounds, and that is just on the outside. Strata management companies ensure common spaces are well maintained. They will do everything for you and you don’t have to worry about stuff like cleaning which is done regularly and all maintenance work that is carried out on time. Moreover, property damage is repaired quickly to ensure all facilities remain functional. Strata management companies also follow up on plumbing repairs, electrical repairs and other repairs. Bills are also paid on time to maintain good living conditions.
Conflicts are inevitable when it comes to residential and commercial properties. Moreover, when you are buying in a community and have more than one person owning a certain property, conflicts will arise in one way or another. Strata management companies provide clear channels to raise complaints and resolve conflicts, between both owners and residents. These managers are in place to watch over everyone and to make sure that everyone is pulling their weight as well as adhering to all the rules from the agreement. They ensure the interests of all stakeholders are well represented and amicable solutions are made. Moreover, strata management companies organize stakeholder meetings and provide seamless communication channels.
The finances surrounding residential and commercial spaces are often complex. This is why we previously stated that if you are new in these waters and without any financial background, meaning that you do not know what you are doing, you are likely to misrepresent the financial statements and cause yourself a whole bunch of other problems that will not be cheap to solve. Strata titles, as well as managers, save you the trouble of monitoring and reporting finances. These professionals will make sure to keep all the books up to date and reports will be accurate and timely. Strata managers will also handle all your funds used for property management to eliminate all possibilities of misappropriation. Where there are big sums of money included there are usually problems attach to the way big money is handled. When all the finances are in order, budgeting also becomes simple.
Laws are the one thing that keeps us all in check, they also keep in check residential and commercial properties and everything has to comply with numerous laws. Having this kind of managers representing you means that they will track and evaluate laws that guide property ownership and management. Moreover, they interpret and implement those laws to ensure the property is always compliant, and that you have no problems in any way possible. Strata management companies always follow changes in safety which is why they always ensure all safety regulations are met, and in case certain changes to the regulations are made they are always quick to react as well as quick to implement them.
However you look at this, it is a pure business and as in any business, you always have a lot of paperwork attached to running residential and commercial properties. Lot of paperwork means a lot of time lost making copies of it, mailing it and waiting for the same to arrive. It also means additional costs for you, whether you like it or not. The paperwork you will be piled up ranges from financial data to legal compliance documents. This means filing, storing, safekeeping and always knowing where you put what. That is how once again strata management companies come in handy and all thanks to the fact that they will ensure all documents and data are safely filed and stored. Moreover, a record of all communications made to stakeholder is kept for future reference.
Strata management companies save stakeholders with a lot of work. The cost-benefit analysis of having properties under strata management companies goes in their favour. At first, maybe it will seem a lot cheaper to run this operation by yourself, but if you consider all the things we said you can make an honest judgement regarding the benefits or their lack of, expenses, waste of time and at the end the financial gains if there are any. Nonetheless, it’s imperative to use reputable strata managers. Don’t be a victim of mismanaged properties. Save yourself the legal and financial consequences of mismanagement and outsource the right strata managers. You only get to enjoy the benefits of strata management if you are using the appropriate one.