Strata Management Companies, Part 1
Depending on the results of your depreciation report, your strata may determine that there is a lot that needs to be done to their property. Sometimes this task is well beyond the scope of a small strata corporation. In these cases, many stratas turn to a strata management corporation. The next two articles will explain just what these corporations do, how to go about hiring one and how they can help a strata manage their property.
What is a Strata Management Company?
Many strata councils and corporations are made up of volunteers who are residents of the property. Managing a property involves quite a bit of knowledge. Knowing how to properly maintain the property, how to navigate the complicated laws governing the property and understanding the role of the strata corporation is complex. The accounting involved can be a nightmare. This is where a strata management company can help.
Management companies are contracted by strata corporations to handle these aspects of managing the property. These companies are licensed to provide these services and have expertise that may be lacking amongst the volunteers on the strata corp.
Selecting a Strata Management Company
If your strata corporation has decided to go forward with contracting a strata management company, there are several things to keep in mind.
Research is the most important first step in finding the company that is right for your property. Spending time speaking to other stratas in the area is a good start. The internet has a wealth of information on different management companies. These resources should provide your strata with enough information to build a list of companies they would like to speak to.
Once the short list has been created, it is time to interview them and see if they are a good fit for your property. Asking the right questions during this period can go a long way to helping to determine if a management company is the right one for your strata. Here are some questions to ask:
- What qualifications, certifications or professional memberships does the company hold?
- What experience do they have, and how many years have they been in operation as a management company?
- What types of support and administrative services are available to the manager and the strata?
- What specific contractor contracts does the company hold that might affect existing contracts the strata already holds?
- Has a government regulatory committee taken any action against the company, either past or pending?
- What references can the company provide from other strata corporations they might currently be working with?
Working with this information, your strata should be able to narrow the list down to one or two final candidates for the contract. Remember, the contract is binding, so the strata should be sure they are hiring the company that is right for the property.
Next time, we will discuss how to engage a management company and what to expect from a contract with one.
Remember, a depreciation report is essential to being able to assess the needs of a property. Contact Reserve Fund Advisors for any depreciation report services your strata might need.