As a strata council member, your responsibility is to make the best possible decisions for owners within your community. Strata councils require pinpoint organization and a comprehensive knowledge of the rules and regulations governing the property, their tenants, and the ownership structure.
To help support you in forming the ideal strata council and delivering for owners and renters in your community, here are our tips for resolving common strata council challenges.
Challenge: Responding Quickly to Maintenance Requests
Solution: Build a Property Maintenance Plan with Your Strata Management Company
One of the most common strata council challenges is organizing the maintenance of the property. Communicating with tenants regarding maintenance work and proactively resolving maintenance issues are two elements of success when building a maintenance plan. Your property management company can help you in both of these areas.
Many management companies offer an online management tool that allows for seamless contact between strata council members and tenants so you can quickly share a maintenance update and help tenants plan their schedules accordingly.
Following the Strata Property Act while adhering to the strata corporation’s governing
Documents are another challenge many councils face. Your management company can help you understand the council’s maintenance obligations under the Strata Property Act and ensure you meet all your obligations within the governing documents.
When building your strata maintenance plan, consider the following:
The Frequency of Maintenance for Common Areas of the Strata Property
Each area of the property should have a unique maintenance schedule. For example, the parking lot maintenance may be less frequent than the elevator maintenance within the building. Build a schedule with your property management company that takes the maintenance needs of each area into full consideration.
Common Locations for Strata Maintenance
In which areas of the property do most maintenance issues occur? Consider a proactive plan for maintaining these areas. For example, if the building’s furnace requires continued expert repairs, look into proactive furnace upgrades and maintenance plans ahead of winter.
The Schedule for Updates to Tenants
Consider both the schedule and the source for updates to tenants. Discuss with your property management company whether the communication will come from the strata corporation or the management company directly and how to deliver these communications.
Challenge: Managing the Day-to-Day Financials for the Strata Corporation
Solution: Hiring a Management Firm with Qualified Strata Accountants
The strata council should have a clear insight regarding the corporation’s current financial position so your fellow council members can plan updates and maintain the reserve fund.
Analyzing and improving the strata corporation’s finances can be a full-time job. Try and select a management company specializing in strata accounting services to reduce your council’s workload.
Strata-specific accountants within the property management company can help:
Prepare Monthly Financial Statements and Explain the Data
Financial statement preparation takes knowledge of accounting standards, best practices, and expertise on the data most important to strata owners. The accountants within the management company can help create comprehensive financial statements to deliver to owners every month, and they can then explain the data to the strata council. This approach gives the council visibility into the day-to-day financials.
Protect Financial Data
Not only are accountants experts in financial analysis, but they also help ensure optimal storage and security for all financial data within the strata corporation. Your property management company can provide stakeholders with the requisite permissions to secure access to the data.
Budget for the Future
Beyond day-to-day accounting, your strata management provider’s accountants can help plan for the corporation’s future and allocate resources where they will have the most positive impact within the community. This strategic accounting work begins with auditing current accounts, determining areas of shortfall, and providing a clear strategy for organizing all assets.
Challenge: Securing Strata Insurance
Solution: Hire a Management Company to Source Comprehensive Coverage
Many strata councils, especially those new to council roles and the strata market, find sourcing comprehensive insurance one of the more challenging elements of their job. Fortunately, strata management companies can often simplify sorting between the various insurance companies and their products and ensure the most affordable rate plan at the highest coverage levels.
There are several considerations when analyzing strata insurance:
Directors and Officers Coverage
Directors and officers coverage protects you and the other strata council members when there’s an insurance claim against the corporation. While directors’ and officers’ protection is not a requirement under the Strata Property Act, it is an essential component of comprehensive coverage for your strata council.
Flood Damage Insurance
Flooding and water damage coverage are crucial in protecting buildings throughout B.C. Work with your property management company to pinpoint the most comprehensive flood damage insurance you can get for your insurance spending.
Equipment Coverage
Your strata insurance policy should include all forms of large equipment within the property, including boilers, air conditioners, and furnaces. The loss of these units will impact all tenants, and having a policy to cover repair and replacement on short notice will save the strata corporation thousands of dollars and help ensure the ideal experience for on-site tenants.
Pacific Quorum Is the Trusted Strata Management Partner for B.C. Strata Councils
Considering a change in strata management and reviewing your strata council’s options? Pacific Quorum offers a free property management proposal to help address your council requirements and tailor a plan for your community. Request your property management proposal by booking online today.
