Strata management

Strata management, sometimes known as "body corporate management", is a specialist area of property management involving the day-to-day operation and management of a property that is jointly owned and comprises multiple units, common areas and common facilities. It is derived from an Australian concept of property law called strata title applied to the administration of common ownership in apartment buildings on multiple levels, or strata. Emerging markets in Dubai, Abu Dhabi, the Philippines and India have adopted the Australian system. It is one of the fastest growing forms of housing in the United States today, similar to common-interest development (CID), a category that includes planned unit developments of single-family homes, known as homeowner associations (HOAs), condominiums, and cooperative apartments. Federally-subsidized financing provided by two government-sponsored enterprises Fannie Mae and Freddie Mac via uniform financial instruments—mortgages that oblige the borrower to honor covenant restrictions of the collective-property regime with PUD or condo riders. Such provisions however are only enforceable where statutes recognize their validity. Common expense liabilities are often subordinated as junior liens in bankruptcy courts, with the bank retaining senior title.

The successful management of such developments requires the establishment of a strata title system to provide a framework for ownership, and guidelines to manage developments with multiple users and owners.

Many jurisdictions adopt the concept of jointly-owned property. Owners in these types of schemes automatically become members of an owners' or community association. These associations ultimately bear responsibility for the maintenance and management of common areas such as lobbies and corridors, and shared leisure facilities such as swimming pools and gyms. They are also responsible for running the administrative and financial aspects of the property.

The strata manager's role is to work with the owners' corporation and executive committee to successfully control, manage, maintain and administer the property and to create an appropriate community environment and includes tasks such as:

Strata management in New South Wales, Australia is currently governed by legislation including the Strata Schemes Management Act 1996 and the Strata Schemes Management Regulation 2010. However, in October 2015 the New South Wales Parliament passed the "Strata Schemes Management Act 2015" and the "Strata Schemes Development Act 2015" which largely replace the previous Acts governing strata management. Together, the Acts establish over 90 key reforms with the aim of simplifying strata laws. The majority of these reforms commenced on November 30, 2016. Some major changes include strengthening accountability of strata managers, quicker and simpler approval process for resolving disputes including renovation requests, tenant participation in meetings (scheme with over 50% tenants), electronic means for voting on motions, ability to fine unauthorised car parking, removing property developer's authority and influence in formulating Owners Corporation which can bind owners, guidelines to deal with construction defects, curbing practice of proxy farming.

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