Identifying the most common challenges in strata management

Strata living is becoming an increasingly attractive option for a variety of property owners and investors across Australia. The combination of skyrocketing property prices as well as the allure of autonomous operations and maintenance (upkeep) such as building management, fire compliance, pools, grounds, cleaning and more periodical services such as painting is pushing more people to consider strata properties than ever before.

to have a seamless and comfortable living experience, strata schemes need to be managed efficiently and skillfully to avoid circumstances that may hinder their ability to realise their goal of maintenance autonomy.

These may range from ensuring prompt resolution to simple day-to-day challenges to the professional handling of more deep-rooted issues such as building defects claims that can open the door to more significant issues that can cause health and safety concerns for your occupants.

For strata managers, striving to deliver a comfortable, safe, and seamless experience for all the occupants in the buildings you manage,requires a solid plan and approach that can be seamlessly deployed not only to one customer, but your entire portfolio.

Here’s a quick list of some of the most common considerations in strata management and what course of action you can take to prevent these issues from hampering your strata scheme.

Difficulties in obtaining and maintaining strata corporation insurance

Today, obtaining strata insurance is a primary responsibility of the Strata manager. This covers the common property within the strata plan against major perils, including on-premise injuries, natural disasters, and more.

Generally, the cost of the insurance premium of the strata corporation insurance is shared by occupants of the strata scheme as part of their strata fees.

Today, due to market conditions, obtaining and maintaining a strata corporation insurance has become a tricky  undertaking. 

Across the market, the price of strata insurance has gone up, putting significant strain on finances, which will impact strata occupants as they incur the costs of the insurance premium.

What this means is that today, identifying the requirements for strata insurance will play a significant role in shaping the experience of your occupants.

As a strata manager, it pays to be mindful of additional options  when you are organising insurance for your customers. Consider the specific requirements of your strata scheme and only acquire the necessary optional extras so you’re getting the best bang for buck.

Challenges in managing building maintenance processes effectively

Tracking maintenance requirements of the strata scheme and following through on them with building managers is a critical aspect of running a strata facility.

Keeping all the common facilities in mint condition will inspire trust from your occupants and minimise health and safety risks across the community.

Unfortunately, due to the complexities caused by COVID-19, coordinating maintenance and repairs has become somewhat challenging prospect.

A combination of factors are underpinning this challenge, mainly due to labour and skills shortages, pent up demand caused by elongated lockdowns and the desire of many buildings to put the brakes on discretionary expenditure.

Here, consistent maintenance of a an operations and maintenance calendar in association with appointed strata building management companies can help you keep track of your maintenance requirements and communicate with maintenance teams and strata occupants seamlessly.

A lack of transparency into the financial position of the strata

Understanding the finances of the strata plans you manage is of paramount importance when it comes to planning for basic admin fund expenses such as cleaning and building management as well as less frequent services of a capital nature such as painting, plant replacement and refurbishment .

Not having a clear picture of your client’s finances can lead to unprecedented issues and can leave your portfolio strapped for cash when you need to pay off liabilities.

To get around this, assess your financial position continuously by maintaining a comprehensive audit trail of your financial obligations and assets. This includes any payments you need to make to your insurance company or the building management company, and strata fees you need to collect from your occupants—allowing you to keep track of your financial reserves and maintain upkeep at all times.

Optimise the strata living experience with professional support

With the increasing popularity of strata schemes, it’s important to understand common issues faced by strata schemes and create plans to get around these issues in your strata property.

By working with building management service providers with a wealth of experience, you can ensure a seamless experience for your occupants.