With the growing tendency in Australia today for its cities to develop upward rather than outward, strata living has become the norm for many property owners. There is now an increasing variety of apartments, townhouses, and mixed-use developments being managed under strata title, making strata management relevant to modern real estate. But what is strata management, and what makes it important?
What is Strata Management?
Strata management is the management of a property system whereby the land is divided into separate lots with a shared common area. Usually, the property operates under a strata title, a system whereby people own units (lots) and some common property with others, such as shared stairwells, lobbies, gardens, gyms, or pools.
A licenced strata manager handles the day-to-day running of the strata scheme. Their responsibilities are wide-ranging and include organising maintenance, managing budgets, collecting levies, enforcing bylaws, and facilitating meetings of the owners’ corporation (formerly known as the body corporate).
Why Strata Management Matters
Proper strata management is essential for creating a harmonious living environment and generally maintaining long-term property value. Without proper channels for communication and accountable management, little issues can escalate into major disputes among residents and owners.
Effective strata management ensures:
- Timely maintenance of common areas
- Accurate financial reporting
- Compliance with legislation
- Transparent communication with all stakeholders
As law changes concerning strata are quite frequent from one state to another and from one territory to another, professional strata managers play an important role in ensuring that the relevant legislation is complied with, avoiding instances of legal problems and costly blunders.
Strata and Real Estate Value
For investors and buyers, quality strata management can directly affect property value. Conversely, the overall desirability of a well-managed building or property is directly correlated with its relative ease of maintenance, cleanliness of common areas, and the community spirit found among its members.
On the other hand, a poorly managed scheme can deter potential buyers and tenants, drive up fees due to mismanagement, or even lead to litigation between owners.
When purchasing a strata-titled property, savvy buyers often review the strata records to assess the financial health and management history of the building. Things like a healthy sinking fund, timely repairs, and well-documented meeting minutes are all positive indicators.
Choosing the Right Strata Manager
Some strata management companies are on the same level. Experience, transparency, responsiveness, and thorough knowledge of the relevant legislation are the salient qualities that need to be looked for in a strata management company to manage a building. The appointment of a strata management company should go hand in hand with carving out their systems for financial management, dispute resolution, and maintenance coordination.
Many property owners are now opting for strata managers who offer digital tools, such as online portals or apps, that allow for easier communication, document access, and payment options.
Final Thoughts
For the success and liveability of strata communities in Australia, strata management is incredibly important. Whether you are an investor, owner-occupier, or a member of an owners corporation, understanding and engaging with a professional strata management firm is paramount.
If you’re part of a strata scheme, now’s the time to review how your property is being managed. Don’t wait for problems to pile up—partner with a trusted strata management expert to ensure everything runs smoothly. A well-managed strata isn’t just about ticking boxes—it’s your key to peace of mind, long-term value, and protecting your investment.
