Strata Living: 6 Reasons People Love It, and 4 Things to Consider

For many British Columbians, strata living offers an appealing middle ground between renting and owning a traditional detached home. You get the benefits of home ownership while sharing responsibility for many of the costs, maintenance tasks and common areas that come with a property.

It is also far more common than many people realize. The Province of British Columbia estimates that about 1.5 million people live in strata housing, which can include condos, townhouses, duplexes and even single-family homes in bare land strata developments.

So, what makes strata living attractive? And what should prospective owners understand before buying?

Here are six of the biggest advantages, along with four realities worth considering.

6 Biggest Advantages

1. Less Exterior Maintenance on Your To-Do List

For many owners, this is one of the biggest attractions.

Depending on the type of strata and its bylaws, responsibilities such as maintaining roofs, building exteriors, landscaping, common hallways, elevators and other shared property are handled collectively by the strata corporation rather than falling entirely on one homeowner.

Under B.C.'s Strata Property Act, the strata corporation is generally responsible for managing and maintaining the common property and common assets for the benefit of the owners.

That can mean fewer Saturday mornings cleaning gutters, arranging exterior repairs or figuring out which contractor to call when something goes wrong.

For retirees, busy professionals, frequent travelers and anyone who simply does not want a house to become a second job, that can be a significant advantage.

2. Major Property Costs Are Shared

Owning any type of real estate involves expenses.

The difference in a strata is that many common expenses are shared among the owners rather than being paid by one household alone.

Owners contribute through strata fees to an operating fund for regular common expenses and a contingency reserve fund for less frequent expenses. Special levies may also be approved when additional funding is required.

A roof replacement on a detached home might be entirely your responsibility. In a strata, the cost of repairing or replacing common property is generally shared according to the requirements of the Strata Property Act and the strata's governing documents.

Shared ownership does not make major repairs free, of course, but it spreads responsibility across the community.

3. A Strata Can Offer Amenities You Might Not Own Yourself

Depending on the development, strata owners may have access to amenities such as fitness rooms, swimming pools, workshops, guest suites, gardens, lounges, bike storage or other shared facilities.

Buying and maintaining some of these amenities privately would be expensive, impractical or both.

In a strata, the cost and responsibility can be shared among many owners.

Even relatively simple amenities, such as secure underground parking, landscaped common areas or a shared meeting room, can add convenience to everyday life.

4. There Is a Built-In Framework for Looking After the Property

A detached homeowner makes almost every property decision alone.

A strata operates differently.

Owners collectively form the strata corporation, and the strata council carries out many of its duties and decisions. B.C.'s Strata Property Act establishes the framework for strata councils, budgets, bylaws, common property, financial management and other aspects of running the property.

When a strata is well run, this structure can be a major benefit.

Maintenance can be planned. Budgets can be prepared. Contractors can be coordinated. Larger projects can be discussed before they become emergencies.

In other words, the building or development is not simply a collection of individual homes. There is an organization responsible for looking after the shared property.

5. Reserve Planning Can Help Prepare for the Future

Every building eventually needs major work.

Roofs wear out. Exterior components deteriorate. Mechanical systems need replacement. Pavement needs resurfacing.

One important feature of strata ownership is the contingency reserve fund, commonly called the CRF. Every strata corporation in British Columbia is required to maintain a CRF for common expenses that usually occur less often than once a year.

A well-managed strata can use long-term planning and reserve funding to prepare for major expenses rather than dealing with every project as a surprise.

That does not eliminate the possibility of a special levy, but thoughtful financial planning can make future costs far more predictable.

6. You Are Part of a Community

This benefit is harder to put on a balance sheet.

Strata living means sharing a property with neighbours who have a financial interest in maintaining it too.

In many communities, that creates opportunities for people to know their neighbours, look out for one another and participate in decisions affecting their homes.

Owners also have the opportunity to attend general meetings, vote on important matters and, if they choose, serve on strata council.

For people who like the idea of having some say in how their community operates, that can be a very positive part of strata ownership.

And Now, 4 Things to Consider

Strata living comes with many advantages, but it is not identical to owning a detached home. Understanding the differences before buying can prevent frustration later.

1. You Have Bylaws and Rules to Follow

One person's home is also part of a larger shared community.

Strata corporations can have bylaws governing matters such as noise, renovations, use of common property and other aspects of strata living, as well as rules governing the use, safety and condition of common property and common assets.

That means you may not always be able to do exactly what you want without considering the bylaws or obtaining approval.

The best approach is simple: read the bylaws before you buy.

The right strata should fit the way you already want to live.

2. You Will Pay Strata Fees

Strata fees sometimes get viewed as an additional expense of ownership.

A better way to look at them is to ask what they are paying for.

Strata fees fund common expenses and contributions approved through the annual budget. Depending on the property, that may include insurance, maintenance, landscaping, utilities, management, cleaning, repairs, reserve contributions and many other shared expenses.

A low strata fee is not automatically a good strata fee.

What matters is whether the property is being adequately maintained and financially prepared for the future.

3. Some Decisions Are Made Collectively

Living in a strata means accepting that not every decision is yours alone.

Owners vote on budgets and many significant matters, while strata councils handle much of the ongoing business of the corporation.

Sometimes the majority will make a decision you would not have made personally.

That is part of shared ownership.

On the positive side, owners also have a voice. Attending meetings, reading the financial statements, voting and participating in council are all ways to influence how the property is managed.

4. Special Levies Can Happen

This is probably one of the most discussed concerns about strata ownership.

Sometimes a major repair or unexpected expense cannot be fully covered by the operating fund or contingency reserve fund. In those situations, owners may approve a special levy to raise the required funds. B.C.'s strata framework specifically recognizes special levies as one of the ways common expenses can be funded.

The important distinction is that a special levy is not necessarily evidence of a poorly managed strata.

Buildings require work.

What prospective buyers should look at is the bigger picture: the condition of the property, the contingency reserve fund, financial statements, depreciation reports, meeting minutes and how proactively the strata has been planning for future repairs.

The Bottom Line

Strata living is not better or worse than owning a detached home. It is simply a different form of ownership.

For the right person, it can offer an excellent combination of home ownership, shared expenses, reduced maintenance, amenities and community.

The trade-off is that ownership comes with shared responsibilities, bylaws, monthly fees and collective decision-making.

The key is finding a strata that fits your lifestyle and, just as importantly, is being managed and funded responsibly.

Before purchasing into a strata, look beyond the unit itself.

You are not only buying a home. You are also buying into the financial health, maintenance history and decision-making of the strata corporation around it.

Taking the time to understand both can make strata living one of the most convenient and rewarding forms of home ownership.

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