Updated on August 7, 2021
The Role of Strata Property Managers
Strata Management managers are trained to ensure that the operational and financial management systems are maintained to give the highest efficiency and productivity. They have general responsibility for all decisions relating to apartment rental management. In some cases, they act as the managers of individual apartments. In both cases, they have a responsibility for the maintenance of quality tenants’ service and ensure the development of strategies to meet current and future demand.
There are two main functions of strata managers: maintenance and development. Maintenance management seeks to resolve problems in the care of the buildings and spaces. In contrast, development management aims to make the most available resources to increase the property’s value. They also liaise with owners of the apartment block and other tenants in the building. When leasing an apartment, the property managers are responsible for meeting all obligations, including rent collection. In this role, they have a financial, social, and legal duty to the property residents.
The corporation manages all major financial schemes management including capital budgeting, leasing and purchase of properties, and all relevant Strata Management processes. Meetings of the board of directors, or the directors nominated by the Board, are required once a year to update and alter the strategy and programs relating to property maintenance and supply. It is usual for annual general meetings of the corporation to be held at least once a year. In addition to the general meetings, most corporations hold a Strata Management Strategy and Workshops to allow current and future strata managers to gather and exchange ideas on effective strategies, maintenance, scheduling and other matters.
At the yearly general meeting, the new Strata Manager is presented with a summary of the previous year’s activities and progress reports. Minutes of such meetings are then tabled in the Board Room for discussion and amendment. All important decisions are discussed at these meetings along with any new recommendations. After discussing and deciding the important matters, the corporation generally makes decisions to implement the strategies decided at the meetings. Generally, all meetings of the Board are held in private without the presence of other shareholders.
The strata company has a legal and general duty to carry out its duties and responsibilities as laid down by the laws. The duties and responsibilities of the strata managers include maintenance of the premises, keeping the buildings and grounds in good repair, maintaining safety, and keeping the orderly and cleanliness of the buildings. They are required by law to keep accurate timekeeping records and perform other duties in relation to the management and maintenance of the property. They also have to keep the peace and create a pleasant atmosphere in the work place.
Some strata property managers are elected to the Board by shareholders and some are elected by the Management Board. It is in fact the desire and responsibility of the shareholders to see that the strata property managers who represent them are independent and are not influenced by any type of personal or political influence. Candidates to become the next strata property manager need to be nominated by the Management Board.
To be confirmed as a strata manager, one needs to complete a full study of the statutes and by-laws of the corporation. He/she should also have sound knowledge of the functioning of the corporation and the various aspects of the business. Management by-laws contain detailed provisions on the standing of the property managers, the nature and operation of the company, rules for dealing with conflicts between the management and the tenants, the relationship between the management corporation and many other issues. Management by-laws are periodically revised by the Board of Directors by majority vote. During the last years of the Corporation’s existence, when the necessity of a revision arises, it is conducted by a General Meeting of the Board of Directors.
Before a strata manager can proceed with his functions, he should get the consent of the Board of Directors, which can be given by a majority vote. If the General Meeting is required to take up a certain matter, it is conducted by mailing a letter to the by-laws of the corporation. A related issue is then brought up before the Board of Directors for its consideration and approval. The General Meeting is called for by the Board of Directors at the last two months of the year. The by-laws which need to be taken care of during the General Meeting are included in the annual report of the corporation.