Navigating the world of strata management can be daunting, particularly with the prevalence of myths and misconceptions clouding the reality of what strata managers do. Understanding the truth can empower property owners, ensuring they make informed decisions about their investments. We believe education is the key to getting better strata communities. In this article, we will debunk some of the most common myths surrounding strata managers to provide clarity and foster a more accurate understanding.
Myth: Strata Managers Decide How a Property is Run
Many people believe that strata managers have the ultimate say in how a property is run, but this is not true. The day-to-day operations and key decisions are made by the lot owners through an elected committee.
Strata managers are employed to assist with the administrative and financial functions, but they do not have unilateral decision-making power. They act under the direction of the committee, facilitating tasks such as organising repairs, maintenance, and record-keeping. The responsibility for major decisions always remains with the owners’ corporation or body corporate.
Myth: My Levies Go Directly to the Strata Manager
It is a common misconception that the levies paid by property owners go straight to the strata manager’s pocket. In reality, these levies are deposited into the owners’ corporation’s trust fund, which is then used for the property’s administration and capital works. Strata managers, being service providers, are paid from this fund for the services they render, such as financial administration, arranging for maintenance work, and ensuring compliance with property laws.
Myth: Strata Managers Carry Out Repairs and Maintenance
Strata managers are often thought to be responsible for directly carrying out repairs and maintenance on the property. However, their role is generally to coordinate and arrange for specialist tradespeople to perform these tasks. The actual approval for this work arises from the strata committee or the owners’ corporation. The strata manager oversees these activities to ensure they are completed to the required standard but does not perform the repairs themselves.
Myth: You Save Money with Self-Managed Strata
While at first glance, self-managing a strata property might seem like a cost-saving measure, the reality is often different. The expertise and consistent management provided by professional strata managers can mitigate risks and ensure compliance with all necessary regulations. Self-managed properties may experience challenges such as inconsistent oversight and difficulty in maintaining a proper understanding of complex administrative and legal obligations, which could potentially lead to higher costs in the long run.
Myth: No Pets are Allowed in Strata Buildings
Another widespread myth is that pets are universally banned in strata properties. This is not entirely accurate. Many strata buildings have by-laws that either allow pets with certain conditions or require permission from the owners’ corporation. In some states, such as NSW, laws have been enacted making it illegal to have blanket bans on pets in strata properties. It is essential for owners and tenants to check the specific by-laws of their building to understand the rules regarding pets.
Myth: Strata Properties are Less Profitable Investments
Contrary to belief, strata properties can be a lucrative investment. They offer opportunities for rental income, property appreciation, and even tax benefits. The initial perception that ownership is fraught with difficulties often stems from misunderstandings about the roles and responsibilities within a strata scheme. With effective management and strategic planning, strata properties can indeed be highly profitable.
Myth: By-laws Cannot be Changed
Some people believe that once by-laws are set in a strata property, they cannot be altered. This is not true; by-laws can be amended or updated through a formal process typically requiring a majority vote at the Annual General Meeting (AGM). It is advisable to seek guidance from a strata solicitor or the strata manager to understand the specific process and ensure compliance with relevant legislation.
Frequently Asked Questions
1. What does a strata manager do?
A strata manager assists with the administrative and financial management of a strata property. They handle tasks such as organising repairs, managing funds, ensuring legal compliance, and maintaining records, all under the direction of the owners’ corporation or committee.
2. Are strata levies optional?
No, strata levies are not optional. They are essential contributions from property owners used to fund the upkeep and administration of common areas within a strata property. Failure to pay these levies can lead to legal consequences.
3. Can I make alterations to my unit in a strata property?
Yes, but you will likely need to seek approval from the owners’ corporation or committee, especially if the alterations affect common areas or the structural integrity of the building. Always check the specific by-laws and regulations before starting any renovations.
4. How are disputes resolved in a strata property?
Disputes within a strata property are typically resolved through the dispute resolution mechanisms outlined in the by-laws. This may involve mediation, formal complaints, or, in some cases, legal proceedings. The strata manager can assist in facilitating a resolution process.
5. Can I opt out of the owners’ corporation if I own a unit in a strata property?
No, if you own a unit in a strata property, you are an automatic member of the owners’ corporation or body corporate. Participation and contribution to decision-making processes are part of your ownership responsibilities.
Perth Strata Co. specialises in providing comprehensive strata management services, helping property owners manage and optimise their investments. Our team ensures efficient administration, legal compliance, and maintenance of your property. Contact us to learn how we can assist you in navigating the complexities of strata management.
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