Strata Manager vs Property Manager: Understanding the Differences

When it comes to managing properties, the roles of a strata manager and a property manager are often misunderstood. Both roles are crucial in the real estate industry, but they have distinct responsibilities and focus areas. Let’s take a look at each role and when they may overlap.

Strata Manager

A Strata Manager, also known as an Owners Corporation Manager, is a company that manages the common property on behalf of all the owners within that building. They work in the owners’ collective interest and manage everything from legal compliance to building maintenance and financial administration.

Roles and Responsibilities of a Strata Manager

An Owners Corporation Managers’ responsibilities can be split into three main categories: administration, finance, and community.

Administration:

• This involves running meetings, managing correspondence between owners and taking care of legal compliance
• Strata Managers also oversee the maintenance of all common areas and are the first point of call for emergency repairs
• Managing service contracts
• Assisting the Owners Corporation Committee in building-related matters or when issues arise and require resolution
• Ensuring emergency service contracts for after-hours issues are in place

Finance:

• Strata Managers facilitate payments to contractors, balance the books, and issue and collect levies. Levies are regular financial contributions made by lot owners that go towards the maintenance of the communal property
• Managing and maintaining Owners Corporation financial accounts and reports
• Overseeing contractor and third-party service provider remittances
• Organising the annual budget

Communication:

• Strata Managers are responsible for addressing and resolving disputes, such as noise complaints, issues with parking, and a range of other daily duties
• Registering Owners Corporation Rules in accordance with legislation
• Ensuring owners are informed about building updates and common areas
• Liaising with Building Managers and conducting on-site meetings to rectify building issues to common areas

Property Manager

A Property Manager works on behalf of one owner and focuses on issues pertaining to private property. They are responsible for managing individual properties, which includes finding tenants, collecting rent, and arranging repairs and maintenance.

Roles and Responsibilities of a Property Manager

Administration:

• Property Managers are responsible for finding tenants, collecting rent, and arranging repairs and maintenance
• Providing quotes to landlords to facilitate works and rectify repair issues
• The key liaison between the landlord and resident
• Undertaking required ID checks and background checks on tenants before accepting lease terms

Finance:

• Collecting rent from tenants
• Organising the payment of bills for the property
• Managing tradespeople to undertake repairs or maintenance on the premise
• Setting rent prices in place, aligning with current market trends

Legal Requirements:

• Property Managers must hold a Real Estate Agent License and be registered under a licensed real estate agency
• Property Managers set up lease agreements
• Undertaking property inspections and conducting condition reports as set out by legislation
• Must stay updated with current and changing laws

Accountability:

• They are accountable to the property owner, and their primary responsibility is to ensure that the property is tenanted and maintained

Communication:

• Property Managers are required to communicate with the property owner, providing regular updates on the status of the property and any issues that arise
• Communicating with tenants during the sales process regarding their rights and responsibilities
• Communicating with the Strata Manager of the overall building to discuss common area issues or move-in and move-out plans

While both strata managers and property managers oversee properties, they have distinct responsibilities and focus areas. The main difference between a strata manager and a property manager is that the strata manager works on behalf of all owners and focuses on issues regarding common property, while the property manager works on behalf of one owner and focuses on issues pertaining to private property.

If you have any questions about these different roles or need a quote for your Owners Corporation, reach out to Melbourne’s leading strata management company, Melcorp Strata today!

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