Help! My Self Managed Strata is a Mess
Self-managed Stratas can be a lot of work but not to worry, Blue Owl is here to help.
With 20+ years of property management experience and 25 years of business leadership between the two principals, Blue Owl is here to help self-managed strata’s lessen the burden of the day to day, month to month; and / or annual responsibilities of managing buildings, realtors, meetings, and so much more..
Our services are custom tailored to each Strata’s unique needs. We can offer a little support or a lot, depending upon your needs and your budget.
Below is a list of the most common issues Blue Owl offers support on.
1. Owner Participation and Volunteer Fatigue
Self-management relies heavily on owner involvement.
Common issues are:
● Difficulty in recruiting volunteers for council positions
● Burnout among active members
● Uneven distribution of responsibilities
This can result in operational inefficiencies and decreased community engagement.
2. Insurance and Risk Management
Securing appropriate insurance coverage is vital. Self-managed strata corporations may struggle with:
● Understanding policy requirements
● Ensuring adequate coverage for common property
● Managing claims and premium increases
Inadequate insurance can expose the corporation and owners to significant financial risks.
3. Communication and Transparency
Effective communication among owners and council members is essential. In fact, it’s certainly one of the most common challengers we hear about from new clients. Common specific challenges include:
● Lack of regular updates on strata matters
● Insufficient documentation of decisions
● Misunderstandings due to informal communication channels
● Challenges with Form B, A, F, etc
Poor communication can lead to mistrust and decreased owner satisfaction and it simply makes living in the community or building more challenging.
4. Financial Management and Levy Challenges
At Blue Owl, we focus on effective financial planning and offer accurate and reliable bookkeeping services.. We are not trust accountants (although we can recommend some great ones) as our clients tend to like to keep their hands on the incoming and outflowing strata fees.
Common services include:
· Monthly, quarterly, and annual AP, AR, P&Ls, remittances, etc
· Cap Ex forecasting
· TCO calculations
· Grants and subsidies for MURB infrastructure upgrades
Common issues include:
● Underfunded reserve (sinking) funds
● Unexpected special levies due to unforeseen repairs
● Pressure to keep strata fees low, leading to deferred maintenance
Such financial missteps can lead to significant burdens on owners and may affect property values
5. Conflict Resolution and Governance
Without a neutral third party, resolving disputes among owners can be challenging. Issues often arise from:
● Disagreements over bylaw enforcement
● Perceived dominance by certain council members
● Lack of clear procedures for decision-making
These conflicts can lead to a toxic living environment and hinder effective governance.
6. Maintenance and Contractor Oversight
Self-managed strata councils are responsible for organizing and overseeing maintenance tasks. Challenges include:
● Identifying reliable contractors
● Ensuring timely and quality repairs
● Managing costs effectively
As anyone who has owned real estate for any period of times knows, Inadequate maintenance can lead to property degradation and increased long-term costs.
7. Regulatory Compliance and Legal Complexity
Navigating the intricate web of strata legislation can be daunting without professional guidance. Self-managed strata councils are responsible for ensuring compliance with various legal requirements, including:
● Proper maintenance of financial records
● Adherence to building codes and safety regulations
● Timely submission of mandatory reports
Failure to meet these obligations can result in legal penalties and jeopardize the corporation's standing.
For self-managed strata corporations, addressing these issues proactively is key to maintaining a harmonious and well-functioning community.
Interested in learning more? Contact us today by clicking the link below or calling us at 604-764-9834