Does it cost more to manage a sectioned strata?

Congratulations! You’ve just purchased a unit in a sectioned strata! This is likely going to be ultra-convenient for you, as usually there will be commercial units on the ground floor, and residential up above. Perhaps you have a London Drugs, or even a a Save- On Foods conveniently located below you! While living in a sectioned strata can be amazing due to the convenience of having amenities right below you, there is also a downside to it.

Sectioned stratas cost more to manage

As a strata management company, we are asked to quote for our strata management services on almost a daily basis, and owners can often be quite surprised to find out that sectioned strata corporations cost significantly more than non-sectioned ones.

Why do sectioned stratas cost more to manage?

Well, you essentially have 3 separate strata corporations within one.

You will typically have;

  1. A Residential strata section
  2. A Commercial strata section
  3. A Joint strata section

All 3 sections run like separate entities, of course with a LOT of overlap in most cases.

All 3 sections require:

  • Their own Strata Council
  • Their own Council meetings
  • Their own financial statements
  • Their own service agreements

This can lead to potentially tripling of the amount of administration required for a strata corporation, and significantly more work for your property management company.

While sectioned stratas certainly have their place, as they protect the minority section owners (usually the commercial owners), they do cost significantly more to administer and manage, so keep that in mind when buying into a sectioned strata building.

Looking for a quote for your sectioned strata corporation? Please reach out to us today to see how our strata management company can help you!



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