There should be clear communication between the strata owners and the strata managers. And much of the information about the condition of the strata property will be given in the strata manager’s report.

When selecting a strata management company,

You need to ask them about their process when communicating with the owners, residents, strata council etc. There has to be certain communication channels maintained so that the strata manager is able to respond to issues and carry out day to day responsibilities of the property. One such responsibility of the strata manager is compiling reports. Strata United Sydney will ensure that the owners are provided access to all reports using their online portal. And these reports will help the owners understand the expenses of the property without going into technical jargon. Simplicity and comprehensiveness are important when compiling a report. The report should contain the basic details about the property and then go on to specific sections. The financial statements should be included in the report which will give the owners a good idea of the financial health of the property.

The financial statements should include

The income statement where the expenses and revenue of the property are highlighted, a budget comparison where the actual financial performance of the property is compared to the budgeted figures along with a balance sheet that gives a clear image of the financial position of the property at a specific time. For example, this should have the liabilities, equity and assets of the property. If there are any outstanding debts, that will be indicated here. Details regarding the reserve fund will also be given in the financial statement. This will give you insight into how to plan long-term finances. The strata fee arrears and collections should be included in the report. This will show outstanding payments and the steps taken to recover any arrears. If there is non-payment, the strata manager will inform the owners about any legal actions to be taken.

A summary of maintenance

And repair costs for the near future should be given along with the scope of work, costs and timelines. Insurance coverage is another aspect of the report. The owners will be notified of the current insurance policies along with details such as when these policies expire, limitations of the coverage, type of coverage and deductibles. There has to be transparency when it comes to insurance coverage and other financial matters. It is important to know which areas are protected and which areas need to be covered. The strata manager attends meetings such as annual general meetings, strata council meetings etc. And meeting minutes will be part of the report. Some of the details given in minutes will be key decisions made at the meeting along with action items. If there are legal actions, disputes etc. related to the strata property, the status of these will be provided in the report. Sometimes there can be changes to strata bylaws. And the strata manager can inform the owners of these changes through the report.