The difference between a strata manager, a property manager and a building manager
Although they may seem similar, strata managers, building managers and property managers have very different roles and contribute to enhancing community living in different ways. They often work together to assist property owners, but their job responsibilities are rarely interchangeable.
Here’s a breakdown of what each of these roles entails.
It’s easy to get confused about what strata managers, building managers and property managers actually do and what they are responsible for. Here’s a simple explanation:
1. A strata manager is responsible for matters relating to the common property
A strata property’s owners corporation or body corporate may appoint a licensed strata manager or body corporate manager to assist in the day-to-day management of the building and to ensure the strata property fulfils its legislative responsibilities.
Under a service agreement, it is usually their responsibility to manage matters relating to common property – the areas of the building that are shared amongst the owners such as pool facilities, the foyer, hallways and communal gardens.
A strata manager’s role includes but is not limited to:
- Coordinating and managing committee meetings and AGMs
- Issuing strata levy notices on behalf of the owners corporation
- Administering insurance claims
- Preparing and distributing agendas and minutes
- Arranging the payment of invoices on behalf of the owners corporation
- Preparing and managing the annual budget
- Enforcing by-laws
- Record keeping: the strata roll, registered plans, by-laws, correspondence and specialist reports
- Promoting legislative compliance for various types of necessary certification and Work Health & Safety obligations
- Providing general guidance on by‐laws and assisting with by-law breach management, mediation, NCAT orders & appeals.
2. A building manager coordinates the maintenance and upkeep of the common property
A building manager is sometimes referred to as a caretaker, facilities manager, or resident manager and can be appointed by the developer, owners corporation or body corporate.
Their role is quite different to a strata manager’s, as it involves coordinating the maintenance of common property.
A building manager’s role includes but is not limited to:
- Creating and managing the asset register and preventative maintenance schedule
- Organising and co-ordinating repairs and maintenance (to common property)
- Issuing work orders and verifying invoices
- Being an on-site contact for owners, residents and contractors
- Periodic site inspection of all common property
- Help identify by-law breaches for escalation
- Registering common property access devices such as keys, swipes, and remotes
- Preparing notices and communications, and posting to the building noticeboard
- Record keeping of all services, costs and expenditure associated with contractors authorised by the owners corporation
- Ensuring building compliance and safety is maintained, and coordinating certifications including lifts, swimming pools, fire systems, and roof anchor points
- Obtaining and recording all documents from contractors (such as their insurance certificate and copy of a business/contractor licence etc.) to ensure compliance and regulatory requirements are met
Additional Services that can be performed by a building management company:
- Conducting a capital works fund assessment to provide cost-effective and sustainable solutions
- Preparing a building condition report
- Project co-ordination and supervising the contractor’s agreed services on-site
A building manager is generally the primary contact for contractors working on-site. Unlike a strata manager, a building manager does not have the authority to enforce by-laws and is not licensed to carry out certain duties performed by a strata manager.
3. A property manager acts as a middleman between a tenant and their landlord
Property managers normally work in real estate agencies. They act as a middleman between the tenant and landlord and manage residential tenancies. Property managers are employed by the apartment or lot owner, unlike a strata manager, who is employed by the owners corporation.
Part of a property manager’s role is to find suitable tenants for owners and to manage the leasing contract between the two parties. Some of their duties include marketing the property, collecting rent and conducting property checks to ensure the property remains in good condition and managing the financial accounts for the investment property. They must inspect and determine whether there is adequate fire and safety measures within the apartment in keeping with legislation. For example, checking that the smoke alarms work.
Property managers are the first point of contact for a tenant. If the tenant raises any strata related issues, the property manager will take these up with the strata manager or owner. A tenant typically has no direct dealings with the strata manager, who only represents the owners of a lot.
A property manager’s role includes but is not limited to:
- Managing move-outs, bond evaluations and evictions
- Showing and leasing vacant apartment/lots
- Managing the set-up, collection and adjustment of the rent
- Arranging and managing non-common property repairs and maintenance on behalf of the lot owner
- Keeping of apartment/lot access devices such as keys, swipes, and remotes
- Liaising between the tenant and lot owner
Q:What to do when your property manager won’t get matters resolved? – Linda, NSW
A: If you are a tenant and the matter relates to an issue within your apartment, you may be able to apply to the tribunal in your state for a ruling requiring that your landlord/property manager complies. If the matter relates to common property, your building or strata manager may be able to assist. Read more at StrataFAQ.
While it’s easy to get confused between the three, strata managers, building managers and property managers have very different roles. Strata managers are responsible for matters relating to the common property, building managers coordinate the maintenance and upkeep of common property, and property managers act as a middleman between the tenant and landlord.
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 Petersons team, click here. To find out more about the services we offer, click here for a free strata assessment.
Originally published on 16 May 2022
Updated on 1 July 2022
Categories: Certainty, Enhancing Community Living, National, Repairs & maintenance