How a strata committee can help your property
As there can be numerous property owners that make up the owners corporation or body corporate and multiple legislated responsibilities to manage, it’s generally not practical to have all owners participate in all the decision-making processes. Therefore a committee is needed to make the day-to-day decisions on behalf of everyone.Here are five reasons why you should appoint a strata committee:
- A strata committee (or body corporate committee) is a legislative requirement
- Managing a strata property requires expertise
- Managing a strata property requires a dedication of time and consideration
- Managing a strata property requires future planning
- Managing a strata property requires mediation skills to avoid disputes
A strata committee (or body corporate committee) is a legislative requirement
Legislation requires that most strata properties must have a committee elected by the owners corporation at an annual general meeting (AGM).
There are exceptions to this which vary between states. In Queensland, body corporate properties require a committee, except for some two-lot body corporate properties. In Victoria, it is not mandatory to have a committee if the property has fewer than 13 lots. In New South Wales, all strata properties require a strata committee.
Managing a strata property requires expertise
Governance, people and project management is not everyone’s expertise. To effectively manage a strata property, you need to engage with industry professionals such as tradespeople, building inspectors, insurance providers, government agencies, and council members. This requires strong people and project management skills.
Managing a strata property requires a dedication of time and consideration
A well-run strata property requires owners to dedicate time aside to research and make informed decisions. Some run-of-the-mill tasks such as overseeing cleaning and approving invoices can be less time-consuming. However other functions such as obtaining Development Approvals (DA) or dealing with legal issues may require considerable research and consideration. A dedicated committee overseeing these responsibilities ensures these matters are dealt with efficiently.
Managing a strata property requires future planning
Ensuring the successful operations of a strata property means that you also need to plan for the future, as well as the present. A strata committee ensures there are dedicated individuals that can see the big picture – develop a long-term maintenance plan and budget adequately for this. For example, is there enough money in the budget for future capital works? What building upgrades or technology will be required for the future?
5. Managing a strata property requires mediation skills to avoid disputes
Strata committee members can often play the “middle-man” role and help guide decisions related to property administration and management.
They may also help organise meetings, make sure the by-laws or building rules are in place and available to all owners and residents, and ensure decorum is maintained. Taking a broader perspective puts the committee in a better position to mediate disagreements and resolve disputes between the property owners.