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Professional Strata Managers
Some strata schemes can be complex and difficult to manage for the Owners Corporation without assistance from a professional, external manager.
Professional strata managers exist to provide administrative assistance to Owners Corporations. For a service fee, professional strata managers will undertake many of the day to day functions of the strata scheme that otherwise would be handled by the Owners Corporation and Committee.
Do we need to use a paid strata manager?
No, there is no requirement to use a paid strata manager.
Many strata schemes are not complex in nature. The Owners Corporations for these schemes will often prefer to handle their affairs themselves to allow them greater control over the day to day functions, as well as to save money on service fees.
However, it is important to remember that the Owners Corporation legal requirements must be met, regardless of whether you self-manage or pay a third-party manager. Legal responsibilities include (but are not limited to):
- maintaining of financial records,
- communication and notation of Owners Corporation meetings,
- insurance arrangements, and
- maintenance responsibilities.
Why do some professional strata managers receive insurance commissions?
Many professional strata managers operate as authorised representatives or authorised distributors of some strata insurance agencies and/or some insurance brokers.
By acting as an authorised representative or authorised distributor of these insurance providers, professional strata managers are compensated by these insurance providers via the payment of commission income as a portion of the premium paid by the owners corporation.