What is Strata Management?

Strata management South Australia, or body corporate management, is a unique form of property management for jointly-owned developments. It is governed by the Strata Titles Act and Community Titles Act, along with specific rules of the product itself.

Strata managers are professionals administering the owner’s corporation of strata-titled buildings and land. They are responsible for ensuring the installation meets state-based regulations and abides by the corporation’s articles.

Legal Requirements

Buying into a strata property isn’t for every person or family. However, for some, it can be the perfect fit. When buying a strata-titled property, it’s essential to understand what you’re purchasing and what ongoing rights and responsibilities you have. This includes the details of your site, such as the Articles relevant to that complex. In addition, knowing how to manage and maintain your strata scheme is crucial, including mandatory insurance, insurance advice, levy collection, record keeping, and what to do when an owner fails to pay a levy.

Strata laws vary between states and territories. Generally, the owner’s corporation is responsible for running and managing the property by the governing legislation. A group of owners (called Members) is usually elected as the official representatives of the corporation. These are the office bearers (presiding officer, secretary, and treasurer) to run the corporation and handle its affairs. The office bearers and other Members may form a committee to consider particular issues or decisions on behalf of the corporation. This committee must formally meet at least once a year.

The governing legislation also allows a corporation to delegate certain powers and functions to a strata manager, often called a corporate body manager or a strata managing agent. Strata managers must follow specific instructions from the owner’s corporation. It is a legal requirement for all strata managers to be members of the State body corporate association, Strata Community Australia (SA).

Although different States have their requirements, SCA is the peak governing body for Strata Management South Australia and nationally. The SCA provides the framework for the accreditation of Strata Managers in SA and nationally. At Stratarama, we maintain membership in the SCA and Tony Johnson, our Managing Director, is a level three accredited Manager. This means he is at the forefront of best practices and industry development for our clients. SCA is also a not-for-profit organisation representing the interests of people who own and live in strata-titled properties. SCA is a Strata Community Association chapter representing practitioners throughout Australasia.

Strata Fees

Strata fees are a contribution that every owner in a strata title property makes toward the upkeep and maintenance of shared areas. These fees vary depending on the size and location of the property, as well as its amenities. For example, a building with a pool or gym will have higher management fees than one without these features. Moreover, fees will increase for older structures with more extensive maintenance requirements.

Typically, the corporate body will charge an administration levy and a sinking fund levy each quarter. The former cover daily expenses, while the latter fund more ongoing capital expenditures. The latter can include anticipated costs such as roof repairs, repainting, and replacing carpets. The corporate body may also charge a special levy to cover urgent costs such as repairing damage caused by fire or floods.

The corporate body will set the fees at each AGM after considering a budget prepared by the manager or committee. The budget must detail the current financial situation and any estimates of payments to be made and received between the AGMs. Therefore, the members must carefully review the budget before it is put to a vote.

Strata levies can generally range from 0.3 per cent to 1.2 per cent of the property value. However, a low levy can correlate with poor maintenance and impact the property’s long-term value. Therefore, prospective buyers should always research the cost of strata fees by looking at similar buildings in the area before committing to buy.

With more and more Australians moving into apartments, the need for strata managers is on the rise. The services these professionals strata management South Australia offer are necessary for those who want to live in an urban setting but don’t have a yard to maintain. Nevertheless, the costs of hiring a professional can be prohibitive for some. Luckily, there are ways to reduce the overall cost of strata management. For instance, choosing a smaller building with fewer facilities may be more financially viable. In addition, it is essential to pay your levies on time as they attract interest. If you have difficulty paying your levies, you can ask the council or the strata management company to arrange an arrangement.