The strata management industry in Australia is long established and continuing to grow. Urban planning policies around Australia are forecasting annual growth of more than 10% for the next 15-25 years, so the prevalence and importance of this sector is increasing.

The industry in Australia at a glance:

• Around 270,000 strata communities (also known as owners corporations or body corporates)
• Over 2,000,000 lots worth more than $500 billion
• Approximately 2,500 owners corporation managers
• Around 3.5 million people living or working in buildings under owners corporation schemes
• An estimated 20,000 Australians work in the strata management industry

Buildings, large and small, commercial and residential, are often divided into separate occupancy spaces called lots. Strata title, also commonly known as strata scheme or strata, allows individual ownership of a property or lot, combined with shared ownership of the building and common property with other lot owners. Common property can include foyers, lifts, stairways, corridors, garden areas, driveways, pools and recreational facilities.

If you own a lot within a strata title property, you are automatically part of the owners corporation (also known as a body corporate or strata corporation, depending on the state or territory). An owners corporation is governed by state legislation and is the legal entity responsible for the maintenance of common property, deciding the amounts to be paid by owners for the operational costs of the building, enforcing the owners corporation rules, managing the finances of the owners corporation and taking out insurance for the property; among other duties.

Some owners corporations manage day-to-day administrative, maintenance and financial duties themselves, but given these are complex, most choose to contract out these services to a specialty strata management company, such as Network Pacific Strata Management. A professional strata manager plays a vital role in ensuring owners corporations are compliant with their legal responsibilities, while efficiently protecting and maintaining building owners’ assets.

The contract between the owners corporation and the strata management company sets out in detail exactly what functions the manager is responsible for and the fees and charges payable for providing these administrative and governance services.