"If you're involved in a small scheme (for instance, a block with less than 6 units), special provisions have been made under the Act for small schemes.  Being in a small scheme means you have the luxury of being able to elect to do it yourself, in which case you should look at the Do-It-Yourself Strata Kit or a Record Keeping Service.  Below is some information on small schemes and an explanation on the two ways to help reduce your scheme's overheads."

Two-Lot Schemes
The Strata Schemes Management Act 1996(NSW) contains some special provisions for 2-lot schemes:

• the 2 owners automatically form the Executive Committee - the Executive Committee does not have to be elected
• Building insurance is not compulsory where the two buildings are detached and there are no additional buildings on common property. The owners must decide this by unanimous resolution by a meeting. Each owner may then insure the structure on their own lot.
• If the buildings are detached, the owners can decide not to have a sinking fund provided there are no additional buildings on common property. Both owners must decide this by unanimous resolution at a meeting.

All the other provisions of the Strata Schemes Management Act 1996(NSW) apply to 2-lot schemes.

Small-to-Medium Sized Schemes
The Owners Corporation is responsible for maintaining all the books and records and attending to everything required by the Strata Schemes Management Act 1996(NSW) regardless of the size of the scheme.

However, many owners in especially very small schemes can find the cost of a full management service by a professional strata managing agent a bit prohibitive.  Thankfully, for those schemes, there are alternatives.....

Another alternative is for you to choose to do some tasks yourself and have someone else look after all the paperwork, accounting and legislative compliance requirements for you by way of a Record Keeping service.  This is a really good, efficient, easier and less expensive way to go for some small-to-medium sized strata schemes — so please read on....

Record Keeping Service
For every scheme in NSW, the Owners Corporation can elect to handle the day-to-day repairs and maintenance while not be burdened with the onerous amount of paperwork, accounting and legislative issues needed to comply with the Strata Schemes Management Act 1996(NSW).  Such a 'system' allows them to have a certain amount of control while leaving the really difficult things to the experts.  The way to achieve this is through the use of a Record Keeping Service.  Experience indicates that such as service is more suited to schemes with up to 5 lots although some larger schemes have been known to have successfully implemented the system but it's not really a recommended option.

O'Connors Strata & Property Specialists, offer an excellent Record Keeping Service at a greatly reduced price when compared to the Full Management option and they will send you a FREE Record Keeping Service Information kit if you request one.