This is a great question that we get asked a lot from smaller strata building owners and Councils.
Should we hire a Strata Management Company to manage our building, or should we simply do it ourselves?
Likes pretty much everything in life, the answer to this question really depends on a few factors.
Here are the top 5 things to consider when deciding to self-manage, or to hire a strata agent.
1. Who is going to do the accounting? If you have bookkeepers or accountants who live in the building and are willing to take on the role, then you’re well on your way. If not, you will likely have to farm this out to another accounting firm. Keep that in mind when working the budget.
2. Is someone home during the day to take care of the maintenance work? Buildings that have retirees who are generally home during working hours, and that understand how buildings work, can typically do a good job with the maintenance side of things.
3. Who is going to run the meetings? If you have a person on Strata Council who is organized and likes to run meetings, than you’re in the game! Very often these people have their own businesses, and enjoy this type of thing.
4. Who is going to get involved in a dispute between neighbours? This one can get messy, particularly if the owners involved in the dispute actually live in the building, and have to share the elevator on a daily basis. Buildings that are non-owner occupied typically work better for this. The benefit here about having a strata manager is that they can become an impartial third party, and assume the role of “bad-guy” so that no owners end up in a spat.
5. Who is going to supply strata forms to prospective Buyers, Lawyers, and Realtors. When the sale of a strata lot occurs, forms such as the Form-B, Form-F, etc., are required by different parties. Generally you have a week to supply these forms, but sometimes they are required in a rush situation, so someone from Council will have to be prepared for issuing these documents.
Is self-managed for you? Or are you better off hiring a Strata Management Company? Hopefully this article will give you some good food for thought when making this decision.
Please feel free to reach out to our Property Management Company if you have any questions regarding Strata Management.