Selecting the right strata provider for your property type

Selecting the right strata provider for your property type

Here’s what you need to know to select a strata provider that can successfully service your property type and meet its unique needs

Each strata property’s maintenance and administration needs will differ, depending on the property type and facilities within. When selecting a strata provider, it’s essential to consider whether they are suitable for your property type.

1. Community title

Community title properties are generally multi-tiered properties that span large areas. They may feature facilities including but not limited to gardens, spas, pools, lifts, garages, wellness facilities and entertainment facilities. While these amenities may increase the quality of life of residents, they may also increase the need for large-scale hands-on maintenance to stay immaculate, safe and compliant.

This is where your strata provider of choice can become imperative. When selecting a strata provider, don’t forget to consider how experienced they are at working with community title properties. Your strata provider will need to become an extension of seamless community living and be dedicated to your property’s care and functionality to protect your home or investment.

You’ll find that some strata providers — including Estate Managers — are well-known for managing community title strata properties and are even able to offer onsite building management, should your property require it. Such providers may be able to offer your committee the specialised service your strata property needs, all the while utilising their technical knowledge and expertise, building strong relationships with the committee and going above and beyond to service your property.

2. Company title

Company title management requires an in-depth understanding of corporations law and business management due to its governing frameworks. Ownership via company title means a company owns the land, and individual owners are shareholders who are entitled to exclusive occupation of a designated space. Shareholders do not technically own any land or airspace as owners do in strata schemes. Instead, they are shareholders within the company that owns all land, common areas and airspace.

This is an older form of land titles that predates community title. It is among the most complex to manage effectively and can be a highly litigious property ownership area. If your property falls under company title, it’s best to consider selecting a strata provider with this very specific skill set and knowledge base, such as Sydney Company Title Management.

Company titled buildings are generally between 50 to 100 years old, requiring maintenance and works. Renovating company titled properties is highly complex, and whether the cost sits with the company or the individual shareholder is assessed on a case-by-case basis

Having a professional strata provider onboard to navigate decision-making and interpret constitutions and house rules may minimise disputes and make processes more straightforward. The strata provider should also be able to make sure meetings are being held appropriately, ASIC is being updated with any company changes and the constitution is being interpreted correctly by directors and shareholders.

3. Building management committee (BMC)

BMCs are mixed-used developments. They can be large-scale sites with multiple apartment towers, shopping centres, offices and commercial car parks within the one structure. They can sometimes include just one or two retailers underneath smaller boutique apartments, forming the modern culture and lifestyle hubs that are easy and convenient.

This could mean all occupants of the property — both residential and commercial — share facilities, including but not limited to points of entry and exit, bathrooms, parking spaces, foyers and corridors, lifts, gardens and outdoor areas, loadings docks, electrical infrastructure, fire safety infrastructure and insurance obligations. These shared facilities may require management across repairs, maintenance, expenses and meeting legislative requirements. Such developments can be highly complex and differ significantly in their layout.

If your property is a mixed-use development, your committee may need to seek out an experienced mixed-use strata provider, such as PICA Group, that can give your building the individualised advice and care it needs. By selecting the right strata provider, requirements such as official schedules and the division of costs for shared facilities may become straightforward and easy to navigate.

Your property may fall into a different category to the ones mentioned above – perhaps you live in a retirement village or leasehold title property. If so, it is important to carefully consider your property type’s unique needs and engage a strata provider who can successfully service it while working closely with the committee and owners corporation.

Having set up the very first strata scheme in Australia back in 1948, we’ve come a long way in our knowledge and experience across a variety of property types. Whether you are new to strata management or an active committee member, we have developed an extensive library of resources to assist you. Click here to download our FREE Community Living guide on committee management. For a consultation to review your current by-laws with the Kemps Peterson Legal team, click here. To find out more about the services we offer, click here for a free strata assessment.