Strata management is a modern concept that is being commonly followed in many countries after the initial introduction in Australia. This is a property management concept that focuses on day to management of property that is owned jointly with many units, shared areas and facilities. Such management has many key areas it focuses on.
Under this management, there is primary focus given on financing for utilities, insurance on the building, maintenance cost and even repairs. And so, according to the law, in order to finance for such expenses, it is important that the Sydney strata managers or owners maintain two separate funds, namely the administrative account and the sinking account. The administrative account mainly is for financing costs of day to day operations, while the main purpose of opening a sinking account is for financing future capital expenditure. And today, based on the law amendments, it has now been made mandatory to maintain a ten-year sinking fund account. And this helps the owners prepare better for unexpected capital costs and repair expenditure.
Working out The Insurance
You never know how much damage a potential risk could cause. You also don’t know when such a risk could occur. This is why today most building owners and such, are advised by local authorities, to obtain insurance policies that would compensate for unexpected costs as a result of unforeseen risks. Accordingly based on the law, while it is important to ensure all necessary policies have been obtained and put into action, it is also essential that the building’s value ought to be assessed once in five years, as well. This helps in obtaining the right insurance coverage as well. And in order to ensure all these conditions are met, it is better to work with strata management services and nice strata maintenance providers than winging things out on your own!
This another important aspect in such property management. It is important that in such places, the owners’ corporation ought to finance costs for the repair for common property, while the lot owners finance costs for the repair of anything in their relevant lot. In addition to that, the law of the state also states that if there were minor or major restructuring changes taking place, there needs to be a 50% approval obtained through a general resolution and 75% approval at a special resolution. And only once such approvals have been obtained, that such proposed structural changes could be put into action. And so, there are many other key areas that ought to be focused on as well. And not knowing much on the subject could lead to underperformance in the expected areas. So work with a professional so that you could not only gain the maximum financial benefits but also obey the law!