Question: We own and maintain a block of 4 units. Can we self-manage? We feel our strata manager does little for their fee.
My partner and I own a small block of 4 strata units which we keep like new. We have attended to all repairs and maintenance at the property for over 10 years. Would we be better off taking over the strata management? We feel our strata manager does nothing apart from bookkeeping and costs us a fortune in fees.
Answer: I would speculate that if you did take on strata management responsibilities, you would quickly discover there was considerably more to it than you first thought.
What a strata manager does is quite different to what you have seemingly and successfully been doing with maintenance. It is not just ‘bookkeeping’ in other words. The strata manager for example will usually maintain records, an essential function if at any stage you decide to sell some or all of your lots. Your strata manager may also be a member of the professional body, which ensures they keep their professional standards and general strata knowledge up to date. Again, this can only be of benefit to you.
While I obviously don’t know what your skill sets are, I would speculate that if you did take on strata management responsibilities, you would quickly discover there was considerably more to than you first thought. Bear in mind also that in some jurisdictions there are obligations to be registered if you are performing functions as a strata manager – which would be another cost and responsibility you may have to meet.
Perhaps your better approach is to have some discussions with your current managers to clarify any issues on which you are dissatisfied and what could potentially be done differently into the future.
This post appears in Strata News #589.
Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898