6 Reasons Your Strata Corporation Should Hire a Management Company
As an elected council member, you’re tasked with maintaining and leading the community. While serving on council can be rewarding, it’s a significant commitment that comes with a lot of responsibility. To ease the burden and minimize stress, many stratas hire professional management companies.
Strata management companies can help council members successfully fulfill their roles, complete requirements, and assist with duties. These companies administer the strata corporation’s business affairs and support building management and financial management efforts, and so much more. If your council is on the fence about hiring a strata management company, here are six reasons why they should.
1. Save time and effort.
Some communities may have residents who are able and willing to dedicate their time and talents to self-manage their strata; however, it's a big undertaking and can be a full-time job. Council members are volunteers, and many have families, careers, or other interests that can prevent them from properly managing the strata. While every contract is different, many management companies can lighten the council’s burden and liability, provide peace of mind, and save volunteers time and effort by assisting with:
- Overall operations and administration of the strata
- Contract and vendor management
- Project management
- Insurance administration
- Member dispute resolution
- Meeting attendance and agenda preparation co-chairing, writing minutes and completing action items
- Annual building maintenance schedule
- Budget preparation
- Billing and collections
- Bylaw enforcement as per council’s instructions
2. Professional expertise.
Unlike council members, strata management companies in British Columbia are licensed under the Real Estate Services Act and all strata managers are licensed professionals and are required to take continuing education courses. Council members can trust that the guidance they’re receiving is accurate and lawful, and they can leverage this expertise to stay abreast of the latest developments in the property management industry and potentially access resources that may not be readily available to average volunteers.
3. Valuable connections.
Managing a successful strata corporation isn’t a solo endeavor—it takes a team of highly skilled service providers to get the job done. Luckily, many management companies have existing connections with dependable contractors and vendors that can help the council carry out its directive. From lawyers and accountants to insurance agents and landscapers, you can rely on a management company to make connections, solicit bids, oversee the relationship, and manage contracts.
4. Consistent enforcement.
Enforcing the strata’s bylaws and rules can be challenging for council members and may lead to sensitive and uncomfortable situations with fellow neighbours. Management companies can alleviate some of this stress and tension by ensuring the strata’s operations follow the requirements within the governing legislation. They may also guarantee that bylaws, rules and policies are consistently enforced and clearly defined and recommend solutions to resolve owner complaints and compliance issues.
5. Improved accounting.
While maintaining the financial health of strata corporation is a key council responsibility—it can also be a daunting task. Luckily, many management companies have highly-skilled accounting personnel on staff and employ the latest accounting software, ensuring the most accurate representation of your strata’s finances while aligning with the highest security and safety standards. A management company can also handle most day-to-day financial responsibilities, develop a solid annual budget, keep records, and provide recommendations to avoid special assessments.
6. Increased community value.
It’s easy for council members to get bogged down by the burden and rigors of daily property management. With the support of a professional management company, council members can focus on fulfilling their duties and improving the quality of life in the community. Additionally, many management companies offer unique systems, services, and offerings that inherently add value to the community.
Finding the Strata Management Company That’s Right for Your Community
To learn more about selecting the best management company for your association, read our ebook, “Top Questions to Ask Before Hiring Your Management Company.” In it, we identify important questions that will help you discover crucial information to make the right choice for your community.