Strata Management: A Guide
The main task of any body corporate is to make profits and maximize the wealth of the stakeholders, there are many issues that one needs to keep a check on and pay attention to.
While a body corporate must focus mainly on its business affairs, they need to keep a check on the assets and liabilities they hold.
The management of their property can be done by the process of strata management. In this article, we will discuss everything about strata Management.
The concept of strata management is becoming very popular in today’s time. Body corporates are delegating the task of managing their properties to the strata managers, hence, strata management is also known as management of body corporates.
This form of managing the properties is across the world at a huge pace. The origin of this belongs to Australia.
Although this concept is in use by body corporates, if they feel they can manage the things by themselves, they can also involve themselves in individual strata management.
ELEMENTS INVOLVED IN STRATA MANAGEMENT:
1. Management Of Finances Of The Body Corporate:
The most important thing that strata management is involved in is the management of finances with respect to the property joint;y-owned by the body corporate.
The strata management services provide the services of keeping a check on the expenses of the property and planning and managing them accordingly.
For instance, in the case of a building, it includes all the expenses associated with its repair and maintenance of the same.
Other than this, the managers keep a check on the per-unit allotment of electricity and water supply if the connection is provided to it.
2. Keeping A Track Of Adherence To The Law:
Another important thing that a strata management service provides to its clients is keeping a track of adhering to all the provisions of the law governing the strata management.
The way a company needs a professional to keep a track of environmental protection and laws, it needs a professional service that helps in keeping a track of the provisions of strata management as well.
This reduces the intervention of the government and legal hassles that can degrade the reputation of the company and put it in a bad name.
3. Keep A Track Of The Past Records:
When a tangible property is bought, a huge sum of amounts is involved. One can not make payment on a lump-sum basis because the amount involved is proportionately high.
The EMI system of payment, lease, hire-purchase, and other options are also available depending upon the need and the utility of the property.
Thus, whatever the mode of transaction is, one has to keep a check on the amount paid and the sum outstanding.
4. Keeps A Track Of Strata Roll:
Another most important thing that is included in the purview of strata management is maintaining a strata roll.
The strata managers keep a record of the tenants to whom the property was rented at any point in time, the agreements made and the legal papers associated with it, the insurance policies associated with the property, the rent received with its voucher, other managing agents who have looked after the property in the past, the details of all the contracts they have entered into and all other such details are maintained by the strata managers.
CREATION OF AN EXECUTIVE COMMITTEE:
While a body corporate delegates the task of looking after the jointly-owned property of the company, the strata management agency forms an executive committee which is exclusively formed to look after the daily decisions regarding the strata of the company.
The strata of the company are managed by the entire agency, but a particular committee is formed to look after a particular unit separately.
These committees that are formed are completely in charge of all the decisions taken by them in general meetings of the strata managers and the implementation of the same.
MEETINGS OF STRATA MANAGERS:
The strata management team is also a management unit that comes together at regular intervals just like the meeting of the board members of a company takes place.
This meeting involves a discussion about various important affairs of the company related to the strata they hold.
The following meetings are conducted by the strata managers:
- First Annual General Meeting
- Annual General Meeting
- Extra-ordinary General Meeting
- Executive Committee Meeting
Thus, in the above sections, we discussed various facts about strata management.
It is a form of management therefore, it functions just like the management of the company in the general sense takes place.
Strata management services can be very helpful for corporates that are large and wide in the scale of operations.
These services help one in providing cushioned support to the management and enable it to focus on the other important decisions of the business.