Strata management is an advanced form of property management that oversees the day-to-day running and care for a property with multiple units, common areas and shared facilities.
The industry is rapidly growing as more people gravitate to urban living. Strata managers must stay abreast of legislative updates through a program of continuing professional development and maintain professional indemnity insurance.
Strata by-laws
By moving into a strata scheme, you become part of the body corporate, which owns and manages the common property. You also contribute towards running costs through body corporate fees (levies). In addition, there may be restrictions on how you live within the complex, such as by-laws that restrict renovations, keeping pets or parking your car.
By-laws must meet certain criteria, such as not being unfair, discriminatory or oppressive. Furthermore, they can be amended or repealed if no longer necessary.
Lot owners or tenants can obtain copies of the by-laws from their strata corporation secretary or manager. Tenants can request these documents within seven days of signing your rental contract.
Strata by-laws can grant owners certain rights and privileges, such as exclusive use of part of the common property or special privileges (like dog leash rules). Furthermore, these by-laws must not conflict with other strata corporation rules or legislation.
In addition to the standard by-laws for a particular scheme, some schemes create more specific versions. These may be based on a model by-law or written with greater formality.
Budgets
Budgets are a vital aspect of strata management. The complete strata management Adelaide help determine how much money will be needed in the coming year and guarantee levies are charged fairly. Furthermore, budgets allow you to plan long-term projects like repairs and maintenance that need to be done.
Your building and its individual needs will dictate which budget type is appropriate. You may require an overall operating budget with estimated income and expenditures for the future period or a more detailed line-item approach.
Each budget type has its advantages and drawbacks, so it is essential to comprehend these distinctions before determining which is most beneficial for your business.
A comprehensive budget should estimate expected income and expenses based on market assumptions, drivers, and trends. It also should include the costs of ongoing improvements and upgrades that will enhance your building’s NOI (Net Operating Income).
It is essential to have a contingency reserve fund set aside for unexpected events that could occur. Doing this can help your property avoid large expenses or costly litigation.
Your budget should consider all sources of income for your building, such as rents and ancillary revenue like onsite vending machines or coffee bars. Furthermore, it should reflect any new initiatives the management company considers.
The budget should include the total amount owners must pay in levy fees for the coming year to cover daily maintenance and administration, long-term upgrades, insurance, and worker costs. Levy charges are determined by the strata council and approved at an owners corporation meeting.
Strata management requires many aspects, and an experienced professional should create your budget. Doing this will enable you to reach your objectives and cater to the requirements of your residents.
Financial reporting
Financial reporting is a critical element of complete strata management Adelaide. It gives CFOs and other managers an up-to-date business assessment, enabling them to make more informed decisions about operations and expansion strategies.
These reports usually consist of an income statement, balance sheet and cash flow statement. They measure a company’s performance and give insight to investors, creditors and other stakeholders.
For instance, investors who need to know how much money a business has available for investing in new equipment or sales staff can utilise a monthly report for an accurate overview of its financial condition. Furthermore, financial statements provide lenders and investors insight into whether the enterprise is doing well and well-positioned to meet future demands.