6 Ways A Strata Management Company Can Help You Save Money
While serving on your Strata Council can be rewarding, it's a significant commitment with a lot of responsibility. To ease the burden, stress, and liability, many Strata Corporations hire professional management companies to oversee operations and offer continuity through access to procedures, personnel, and business equipment. Although hiring a management company comes at a cost, and each contract is different, partnering with a reputable one can help you save time, effort—and money. Read on to learn how.
A Strata management company's financial services allow you to improve your accounting measures and decrease the likelihood of paying fines.
Maintaining the financial health of a strata corporation is a key council responsibility, but it can be a task beyond the Council’s professional capabilities. Whether or not council members have an accounting background, ultimately, mismanagement of funds can have detrimental consequences to your bottom line.
Luckily, many management companies have skilled accounting personnel and employ the latest software to accurately represent your Strata finances and align 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 share recommendations to prevent special levy assessments. This professional oversight helps Council avoid paying fines and fees they may encounter when personally administering the financials.
Some Strata management companies leverage advanced technology solutions to provide greater efficiency and cost savings on Strata operations.
Residents expect their Strata Corporation to deliver digital solutions that make their lives easier. By adopting a management company's advanced technology, you stay competitive in the market, maintain resident satisfaction, and work more efficiently within your organization. A management company's technological solutions, like an operations management platform, community app, or community website, might also help you cut costs. You're most likely to see savings in these areas:
- Postage. Instead of sending notifications through the mail, distribute them digitally for free.
- Printing. Save paper and money by communicating events and updates via email.
- Website development. Don't pay someone to build your community's website when many management companies offer this service.
- Payments. Automate payments to vendors so you won't incur late fees.
Many Strata management companies have connections with dependable contractors and vendors that may render services at a discounted rate.
A major component of completing a job on time and under budget is knowing the right vendors and contractors to hire. Strata management companies typically include a staff of seasoned, well-connected industry professionals. Their experience has afforded them the time to vet essential contractors, like plumbers, landscapers, roofers, and electricians, to identify their qualifications, licensing, insurance, professionalism, and follow-through.
These established relationships create a strong negotiating position for the management companies, allowing for vendor contracts to be written with better, more advantageous terms for clients. Always ask your management company about its partners and whether they provide discounted services or service guarantees.
Strata Management companies offer free council member training to help you make more informed decisions for your community.
Property management can be complex. While it's important to have a network of experienced professional advisors and service providers to ensure your community is protected and prepared for the future, management companies often host educational sessions where these professionals share their insight for free. Generally, you can get free advice about:
- Insurance
- Maintenance
- Legal updates
- Contingency Reserve Funds
- Financials
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 industry developments and access cost-effective resources that may not be available to self-managed communities. You don't have to spend money on courses or expensive partnerships to ask questions and get the valuable information you need to set your community up for success.
Strata Management professionals have a better understanding of relevant industry laws so you might avoid spending money on attorney fees.
Every Strata Corporation must operate under a specific set of legally-binding guidelines, including a community's governing documents and local, federal, provincial, and municipal laws. Among the potential challenges, detailed governing documents must be adhered to correctly, contract negotiations may require legal intervention, Strata Corporation rules can change frequently, and established laws must be followed.
Although professional Strata managers aren't licensed legal professionals, they typically hold certifications requiring specialized training and education. That certification permits Strata managers to offer guidance within their scope of expertise and identify when a licensed attorney would benefit the Council. A Strata manager's legal expertise can save your Strata Corporation from paying attorneys just to receive general advice and help you avoid spending sparked by potential lawsuits.
Strata management companies review supplier and service contracts to ensure you're getting what you paid for.
In an effort to lighten the council’s load, many community managers take on the responsibility of overseeing contractors, checking in on projects, and reviewing service contracts to confirm each vendor delivered on their services. If there are inconsistencies or unsatisfactory services, or the current contract prices aren't competitive, the management company can assist in finding an alternative vendor. A management company may work to solicit bids and RFPs and interview potential candidates, vetting them to select the most appropriate provider for your needs.