How Much Strata Management Help Does Your Strata Actually Need?

Compare full-service and financial-focused strata management in BC to help your strata council decide which level of support best fits its time, experience and day-to-day needs.

Does your strata need someone to manage almost everything, or does council really just need help with certain areas?

It is an important question because strata management does not have to be all or nothing.

Some councils want assistance with meetings, contractors, owner communication, maintenance and finances. Others have active volunteers who are comfortable handling the property and administration but want professional help managing the money.

Neither approach is necessarily better.

The goal is to figure out what your council can realistically handle and where professional support adds the most value.

Full-Service vs. Financial-Focused Management

There is no universal package called "full-service" or "financial management." The actual responsibilities depend on the management agreement.

However, the following gives a practical comparison of how the two approaches commonly differ:

Responsibility	Financial-Focused Management	Full-Service Management
Strata fee collection	Commonly included	Commonly included
Accounts payable	Commonly included	Commonly included
Owner account records	Commonly included	Commonly included
Monthly financial statements	Commonly included	Commonly included
Budget preparation support	Commonly included	Commonly included
CRF and special levy accounting	Commonly included	Commonly included
AGM and council meeting support	Usually council	Often included
Minutes and meeting notices	Usually council	Often included
General owner correspondence	Usually council	Often included
Contractor coordination	Usually council	Often included
Maintenance follow-up	Usually council	Often included
Day-to-day property issues	Usually council	Often included

The key word is commonly. Management companies structure their services differently, so council should never assume a service is included simply because of the name of the package.

BCFSA specifically recognizes that a strata council may delegate many responsibilities to a management company or only a limited number, such as collecting strata fees, paying bills and preparing financial reports.

Step 1: Look at What Council Already Does Well

Start with your current council.

• Are council members comfortable organizing meetings?

• Can someone deal with contractors and follow up on repairs?

• Is council comfortable communicating with owners and handling routine property issues?

If those responsibilities are being handled effectively, there may be little reason to outsource all of them.

On the other hand, if meetings are difficult to organize, maintenance issues linger and volunteers are overwhelmed by owner correspondence, broader management support may make sense.

Be realistic about council's time, not just its ability.

A volunteer may be perfectly capable of coordinating contractors but may not want to spend several hours every week doing it.

Step 2: Identify Where Expertise Matters Most

Next, look at the responsibilities council is less comfortable managing.

Financial administration is one example. It can involve:

• Collecting strata fees

• Tracking owner arrears

• Paying invoices

• Reconciling bank accounts

• Preparing monthly financial statements

• Tracking CRF expenditures

• Accounting for special levies

• Assisting with annual budgets

Other councils may be comfortable with the financial side but need more help with maintenance projects, meetings or administration.

The purpose of this exercise is not to outsource everything that seems complicated.

It is to identify where mistakes, missed deadlines or lack of experience could create problems for the strata.

Step 3: Read the Management Agreement, Not the Marketing

This may be the most important step.

Terms such as "full-service," "complete management" or "financial management" are descriptions. The management agreement determines what the company is actually responsible for.

BCFSA requires strata management service agreements to address matters such as the services being provided, fees, how strata funds will be handled, the manager's authority and the financial statements and records that will be provided.

Before signing, council should be able to answer:

1. What exactly is included in the monthly fee?

2. Which responsibilities stay with council?

3. Which services cost extra?

4. What authority does the manager have to make payments or enter into contracts?

5. What financial reports will council receive and how often?

If those answers are unclear, ask before signing.

Step 4: Compare Services Before Comparing Price

Two management proposals with different monthly fees may not be offering the same thing.

One company may include meeting attendance, minutes, contractor coordination and owner correspondence.

Another may focus primarily on financial administration.

Comparing only the monthly fee can therefore be misleading.

Instead ask:

What work will the management company actually take off council's plate?

Then decide whether those are services your strata needs.

Remember That Council Still Has a Job

Professional management does not replace council.

Under the Strata Property Act, council exercises the powers and performs the duties of the strata corporation, subject to the Act, regulations and bylaws.

Council can delegate responsibilities to a management company, but BCFSA notes that council remains accountable to owners for ensuring those delegated duties are being carried out.

That does not mean council needs to duplicate the manager's work.

It means council should stay informed, review reports and ask questions.

Five Questions to Ask Before Choosing

Before deciding on a management model, have council answer these five questions:

1. What are we already comfortable handling ourselves?

2. What work is taking too much volunteer time?

3. Where do we lack the knowledge or systems to do the job properly?

4. What services are actually included in each proposal?

5. Are we comparing services and responsibilities, or just comparing monthly fees?

Those answers will usually point council in the right direction.

Choose the Model That Fits the Strata

A strata with a busy property, limited volunteer involvement and frequent maintenance issues may benefit from comprehensive management.

Another strata may have an experienced council that prefers to manage meetings, contractors and the property itself while outsourcing financial administration.

And some communities will fall somewhere in between.

There is no single management model that is right for every strata corporation.

The best approach is to decide what your council genuinely needs help with first, then choose a management arrangement that fits those needs.

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