Self Managing a Strata Scheme Fraught with Risk and Liability

Self managing a strata scheme is often suggested by members who think that by running their complex themselves, they will save money. Certainly they will not have to pay management fees, but they immediately expose themselves to considerable liability if they neglect any essential tasks. Imagine for example, the anguish, stress and financial loss, and personal recriminations, if the building insurance lapsed and there was a major fire.

Here at WA Strata Management we understand the difficulties facing strata company Councils that decide to self manage. We know this because we are often called in after they have tried it and found how complex it really is. Along with the complexity, in some cases, we have seen conflicts between some of the Council members that created barriers to essential tasks being completed.

Professional Management Offers Peace of Mind

Every unit owner wants reliable body corporate management to protect their investment and living standards. If that means hiring a professional strata management company like ours, what is the better option? Is it better to pay fees and have peace of mind knowing that everything is looked after; it also saves having to constantly check on Council members to see if they have done this or that.

When we start working with a strata Council for the first time we establish first what they have in place. We check their level of knowledge about statutory requirements and regulations, which usually is only a fraction of that held by our professional strata managers. We check insurance cover, fire safety measures and workplace health and safety compliance. Again, these major risk areas are never adequately covered.

Major Risk Factors Kept in Check by Professional Management

With record keeping, we find again that the statutory requirements are rarely fully met, and the management and accounting systems set up to track income and expenditure are at best, basic. At WA Strata Management we have IT support, current software and compliant management systems that address all legislative requirements. Without these modern tools and support systems, being able to produce the required reports and ensure that financial obligations are paid on time is difficult and prone to error.

Often the minutes of mandatory meetings are inadequate and sometimes even non-existent. Producing and issuing notices and collecting levies is a vital part of keeping the building functioning, but again, many self managed Councils lack the skills or the will to collect outstanding debts essential to sound financial management.

If this all sounds far too hard, you are quite correct. The legislation is complex, the personal liabilities onerous and it is all unnecessary when you engage a professional strata management company. Full details of the services we offer are at www.wastrata.com.au. Do yourself and your Council members a favour and check us out.