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"Although highly recommended, especially for schemes with more than 5 lots, it's not compulsory to appoint a professional strata managing agent to look after a strata scheme. You CAN do-it-yourself and there are even a couple of different options open to you. However, if you decide to take the 'totally on your own' option then I can highly recommend the DIY STRATA KIT outlined below. It's not expensive for what you receive and I'm sure you'll find it invaluable for getting started in the world of strata self-management."
DO-IT-YOURSELF STRATA MANAGEMENT
- What to do...
- Management Types
- Full Management
- Record Keeping Service
- Do-It-Yourself (Self-Management)
- Do-It-Yourself Strata Kit details
- How to order the DIY Strata Kit
- How to make a Strata Management Enquiry
- Order and Enquiry Form
What to do...
Due to the increasing complexity of managing Strata schemes these days, especially the larger ones, most owners choose to engage a professional Strata Managing Agent (SMA) to save them the hassles of the day-to-day business of running a scheme.
However, there are others who'd prefer to 'Do-it-themselves'. Owners Corporations who decide to do it this way operate what is known as a Self-managed scheme. This type of management is really only suited to the smaller schemes having no more than about 5 lots due mainly to legal risks involved and the ever-increasing amount of legislative compliance that must be done and monitored. The more lots there are, the more difficult the whole process becomes. For more details on the different types of management read on....
Management Types
Most SMA's offer both Full Management contracts and Record Keeping contracts.
Full Management
Full Management is where the SMA does just about everything on behalf of the Owners Corporation. Under this style of management, the Executive Committee (EC) for the Owners Corporation really only has to work closely with the SMA, give the OK on a number of issues and provide the money (received from all the other owners) to pay the bills.
Using an SMA is sort of similar to the way a lot of people have an accountant (the professional) do their yearly tax returns and their quarterly BAS (if in business) - the accountant does it all for them saving them the effort, hassle, pain (and time) of having to do-it-themselves - and that's the expertise they pay for.
Also, the accountant is always 'up-to-date' with all the latest tax laws - after all, that's his job - while it's relatively easy for you to miss something important if you aren't fully aware of all the latest changes in legislation. With strata, the SMA is the professional who can save you the effort, hassle, pain and time.
To make an enquiry regarding the Full Management Service please fill in the form at the bottom of this page to speak to someone qualified to discuss your scheme's requirements.
Record Keeping Service
Record Keeping is where the SMA handles all the onerous paperwork and procedures for the records and accounting side of things as well as all the compliance and legislative issues required by the NSW Strata Schemes Management Act 1996 leaving the co-ordination, control and payment of all day-to-day (and preventative) maintenance and repairs to the Owners Corporation's EC.
This reduced service is ideal for schemes up to about 30 lots and allows the EC to be in total control of this vital part of scheme management knowing the other important (and always difficult and complex) tasks of running a scheme are being looked after by the SMA.
Some EC's have reported good savings in both time and money due to the greater level of control they can exercise, not to mention the reduction in the SMA's fees due to the reduced workload. These savings can make it worth the effort but it does require quite an extra time commitment from the EC members. Always keep in mind though that this style of management does NOT suit everyone.
To make an enquiry regarding the Record Keeping Service please fill in the form at the bottom of this page to speak to someone qualified to discuss your scheme's requirements.
Do-It-Yourself (Self-Management)
The last option is where YOU take on the roll of a Strata Managing Agent and do it all yourself (DIY).
It's sort of like setting up your own superannuation fund where you have to comply with all the laws, rules, conditions and regulations, report annually to the authorities, select and manage the investments, manage the portfolio's risk profile, pay any taxes and statutory fees and so on. Just as doing your own super is not for everyone, running a strata scheme is also not for everyone.
However, having said that, some schemes are very successful at managing themselves. And yet, others fail miserably – usually because of the self interest of those owners elected to the Executive Committee, a lack of the necessary skills and/or a general lack of support from the scheme. The decision to self-manage should not be taken lightly and the following questions must be asked.
- Are there sufficient owners with the required time and interest to undertake the tasks?
- Are these people sufficiently skilled?
- Are these people likely to loose interest in a year or two?
- Do these people truly have the best intentions for the scheme in mind or is there another agenda?
- Is the state of harmony within the scheme such that self-management will be supported?
- Is the complexity of strata management fully appreciated and understood?
- Is the responsibility of strata management fully appreciated and understood?
If you can get past this hurdle and the decision is still to self-manage, then the right 'equipment' needs to be assembled including publications, copies of legislation, computer facilities and suitable software as well as all the 'legally required' books and paperwork. To do this you'll more than likely need some assistance getting started unless, of course, you've done it before and know what's required.
So, for DIY management you'll specifically need to:
- know what existing rules and regulations to follow
- learn all about insurances, fire safety and OH&S requirements
- learn what other legal and legislative obligations you have
- interpret and apply all new legislative and compliance requirements
- set up and maintain the Records and Accounts required by legislation
- know how to convene and run the mandatory meetings
- produce and process financial statements and budgets
- produce, issue and collect quarterly levies
- know how to deal with tradespeople from a legislative as well as operational standpoint
- put an appropriate preventative maintenance program in place for the scheme
- keep the scheme's insurances current and correct
- ensure all the scheme's bills are paid and on time
- manage the scheme's RISK environments for OH&S and Fire Safety
- handle all owner disputes no matter what the problem
Obviously, having to do all the above will require a fair amount of time and effort and it's definitely not a simple 'one or two hours per week' job.
Warning - Just keeping up with all the compliance requirements and legislative changes can be quite a complicated and involved task so, if you are not prepared to 'put in the effort required', don't head down this path. Also, the Executive Committee members can be held legally liable for not doing the many things that need to be done and is, therefore, quite a responsibility to take on. If all this seems a bit daunting then Record Keeping might be a better option as it effectively gives you the 'best of both worlds'.
If you still think DIY Management could be for you then I advise you to fill in the form at the bottom of this page to speak to someone qualified to discuss your options.
One Final Note - If you're in a scheme that is currently being managed by a Strata Manager, please make sure you mention this to the person you speak to. The situation becomes quite a bit more involved when it means dissolving the current agreement you obviously have in place. Also, the DIY Strata Kit mentioned directly below is for NEW schemes only and is not required if the records and accounts have already been setup elsewhere.
Do-It-Yourself Strata Kit details
A DIY Strata Kit (for those wanting to go it alone) is available from O'Connors Strata & Property Specialists - a company with many, many years experience in managing strata schemes both big and small.
For a nominal charge, you'll receive a self-contained kit complete with instructions and everything you need to get started. You'll get the necessary Records and Accounts framework needed to startup a strata scheme as required by the NSW Strata Schemes Management Act 1996.
The included explanatory letter helps to guide you through the maze and, to assist even further, the kit comes with one free consultation with an O'Connors staff member to get you up and running on your DIY journey.
NOTE - An updated version of the DIY Strata kit, details of which are yet to be finalised, will contain very detailed "How-to" sections on the main areas of strata management which will answer many of the 'commonly asked' questions thereby reducing the need for the included consultation.
It's also anticipated the price of the updated kit will need to increase due to the many added extras. To avoid the price rise, buy the current version NOW and get the upgrade pack (containing the "How-to" sections) when it's released with the new version.
The DIY Strata Kit includes:
- Explanatory letter
- Strata Roll (containing relevant documentation provided for individual owners, common property, insurance and by-laws)
- Suggested drafts of Minutes of required meetings
- Relevant Notices and Proxy Forms for meetings
- Draft Financial Statement and Budget
- Accounting Records pack
- Minute Book
- Common Seal
IMPORTANT!!! - The DIY Kit is only for those schemes that are NEW that do not have the Accounts and Records already setup. If you are NOT a NEW strata scheme this DIY Kit is not for you!
| Do-It-Yourself Strata Kit Pricing | |
|---|---|
| Schemes of 5 lots or less | One-time cost is $399.00** (including GST) |
| Schemes of over 5 lots | add an additional $5.50 per lot (including GST) |
**The one-time cost includes a consultancy session to assist in setting up the records
**The DIY Strata Kit is suitable for NEW schemes in NSW only
**Any NSW Dept of Lands searching fees are NOT included (if required)
How to order the DIY Strata Kit
To place an order for the DIY Strata kit simply fill in your details in the form at the bottom of this page making sure you TICK the box for DIY Strata Kit.
Please do not tick ANY Management option boxes when ordering a Kit.An O'Connors Strata staff member will contact you within approximately 3 working days of receiving your request to obtain some extra details (so we can mail the kit to you) and to discuss your payment options.
How to make a Strata Management enquiry
To make an enquiry about the different types of Strata Management options open to you simply fill in your details in the form directly below making sure you TICK at least ONE of the boxes for
- DIY Management
- Record Keeping Service
- Full Management
Please do not tick the DIY Strata Kit box when making an enquiry.
An O'Connors Strata staff member will contact you within approximately 3 working days of receiving your enquiry for a no-obligation discussion about the options that best suit you and your scheme.
Order and Enquiry Form
PLEASE NOTE: All fields are REQUIRED
DISCLAIMER: All information on this website is of a general nature and is intended as a guide only. Readers should check all information obtained from this website for accuracy from other sources and seek professional legal advice before taking any action based on any information obtained from this website. Information on this website should not be substituted for proper legal advice. The owners of this website will not be held responsible for any action taken as a consequence of same.
EXTERNAL SOURCES: The owners of this website do not make any warranty or representations regarding the information, products, services provided by or qualifications of any external sources listed on this website. Readers should make their own appropriate enquiries regarding accuracy, qualifications, licences, etc. The owners of this website will not be responsible or liable in any way for any representations made by any external sources listed on this website.
IMPORTANT NOTE: This website deals with strata matters in NSW, Australia only. Legislation varies in different states and territories and in other countries. For information pertaining to places outside of NSW, Australia please refer to the appropriate legislation for your region.
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