Benefits of Talking to a Strata Manager Before Setting up a New Development

Right from the start, property development is a complicated process. From insurance and legislation to by-laws and unexpected bumps, you’re bound to run into an issue that requires expert advice.

For developers, nothing beats having an experienced strata manager working with them from day one – helping to make sure the whole journey is that much smoother.

Getting a strata manager on board early is important. But there are also key moments during the process when seeking their help will make your life easier. To give you a better idea, let’s break it down.

Start early

The earlier you bring a strata manager on board, the better. From day one, having a qualified expert in your corner will make going to market with your development much easier. Tackling the process yourself – and potentially getting it wrong – can cause big problems down the line.

A strata manager can offer expertise in insurance, certification, building codes and standards, and all the grey areas in between. In a nutshell, they can help ensure the development runs smoothly and that all bases are covered.

With a strata manager on your team from the get-go, you can save a lot of money, time and hassle – not just in taking your development to market, but also when it comes to dealing with changes in legislation, reporting to council or town planners, offering ongoing advice and building better communities.

Write by-laws specific to the development

Put simply, by-laws are a set of rules that govern a particular strata scheme. They cover the behaviour of residents and the use of common property, as well as other things such as parking and noise levels, how smoking is regulated, and whether pets are allowed on the property or not.

It’s important to note that by-laws can vary dramatically from scheme to scheme. While each state and territory sets out model by-laws for different schemes, each development can also draft its own additional by-laws. You’ll save a lot of hassle if you get a strata expert to draft the first set for you.

The by-laws that apply to your scheme are then lodged with the Lands Titles Office.

Estimation of strata fees

Calculating strata fees (also known as levies) is a very individual process – no two buildings are exactly the same. From building maintenance and insurance, to onsite caretakers and sinking fund costs, there are many variables that impact how much the fees for the building will be.

How does the process work? Every year, the committee will sit down and hash out what the owners corporation’s needs are. The amount that is totalled up to cover these needs becomes the “administrative fund”. They will also have a “sinking fund” – which is there to cover expected and unexpected long-term expenses.

But how are the levies estimated? They are calculated based on a Lot Entitlement. Sometimes all the lots have equal entitlement, but sometimes they don’t. Lot Entitlements are a percentage of overall costs each Lot pays based on a calculation taking into account things like size, bedrooms, car parks, balconies and other benefits .

Set up service contracts

For all developments, there will need to be service contracts set up with specific vendors. These might include businesses and companies that deal with the lifts, fire equipment, caretaking, building security and repairs.

It goes without saying, it’s important that these service contracts are organised and agreed upon early on. Talking to a strata manager and getting them involved in this process will make your life much easier.

Why? Because these contracts can often be large and complex, and the legislation surrounding them can often change. Having a strata manager help set them up will ensure everything is written properly, which will reduce the risks of encountering legal problems down the track.

Building a healthy partnership

Building a solid relationship with a strata management firm from the very beginning is crucial to the success of your development.

They can help by navigating you through the approval process, writing specific by-laws, offering updated advice on legislation, draft budgets, managing staggered move in days among residents and so much more. The stronger this relationship is, the smoother the process will be. This works out for both parties.

For a developer, a smooth process enhances their reputation, which means better buying power, increased buyer confidence, easier financing and more opportunities to work with superior contractors and suppliers. For a strata manager, if developers and buyers have a better experience, it’s more likely they’ll stay with them.

Ultimately, working with a strata manager is a win-win situation. But to strengthen the relationship, and make the most of your development, make sure you talk to them – and get them involved – at all the key moments.

At Strata Data, we provide solutions to developers that enhance sales and help you achieve better margins from your development. Let us assist you in establishing your next successful property development. Talk to us today.