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Despite everything you have heard the strata committee only has two jobs that they need to balance.
- Manage the expenses and levies of the strata building.
- Increase rental yield & market values at or above area averages.
After all, if you have purchased an apartment that’s what you want. Achieve the, lowest possible costs for the highest possible yield.
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Expenses and Levies
Your committee should always be considering if every expense incurred is achieving the best value for the owner occupiers and investors within the building.
This should include insurance, contract fees against the scope of works, utility costs, not just the repair costs that are typically scrutinized but make up a small percentage of the buildings actual running costs.
Increase rental yield & market values
In contradiction to reducing costs, the committee should also be spending money and investing back into the building, to create a premium place to live and a premium place to invest your money. Which should create increase rents and sale values.
What next for your strata committee?
To empower your strata committee to action these two long-term duties and move away from the annual short-term management of levies and maintenance. The apartment owners need to be engaged at the AGM and decide. What type of people they want on their committee running the building, and how much are they willing to pay them to make this a professional role. See Should Committee Members be paid?
With this professionalism owners also need to define the projects and objectives this committee needs to act over the following 36 months. See the Buildings Strategy tool to help create your building’s first building strategy.
If your building is only getting started in becoming a professional operation I also recommend read 7 things every committee should do 2018
