Owning property is often the most significant investment many people make. To ensure that investment appreciates in value, particularly over time, is the natural expectation. For owners of strata property – whether residential or commercial - maximizing the value of their property is typically a top priority.
The achievement of this goal is directors dependant on the quality and timeliness of decisions made by the strata council or board. To influence this group of decision makers is to influence property value. Therefore, proactive strata management strategies are the key to ensuring that the value of your strata property is maximized.
One the most effective ways to increase the value of any property is by keeping it in pristine condition, and strata properties are no different. Making sure there is regular maintenance and any necessary repairs are done, will help prevent a minor issue turning into a costly problem. A proactive strata management team will ensure there a maintenance schedule is carried out frequently to guarantee all common areas and shared facilities are kept in good as new condition.
The proactive strata management consists of imposing fees from the owners to reserve the funds for the future maintenance work, the payment of these fines by the owners, the budget of the strata scheme according to the fees or charges that are in response to the basic utility charges or fees and it constitutes the emergency services in case of repairs or new service enquires. The fees must be deducted after a periodic tenure.
Efficient governance within the strata community comes from the Strata Manager being proactive. They are meant to hold regular meetings, address concerns that arise, enforce rules and regulations as set out by the Strata Property Act and ensure bylaws are being met by each of the owners. This approach to strata management is meant to put the property owners at ease by making sure that work is being done and that they are a part of the process and this will help with property values.
Strategic planning is an essential part of the long term growth in property value. It is important to invest wisely in improvements to common areas, energy efficient upgrades, or security measures. A proactive strata management will have a clear vision for the community and goals to go with that vision.
In this environmentally conscious age, sustainable living practices are not only responsible, but attractive to potential buyers or tenants. The strata management can make early strides on this front by implementing eco-friendly initiatives such as energy efficient lighting, recycling programs, and landscaping practices that promote biodiversity. These efforts have the potential to decrease operating costs and make the unit more attractive to people that prioritize environmental considerations.
Finally, a professionally managed strata corporation can be beneficial. Experienced managers will have the knowledge and abilities to assist with more complex issues, navigate legal requirements, and implement best practices. Not only will this help in keeping the community smooth and efficient and averting conflict, it will also help in increasing property value.
Maximizing the value of your strata property is not equivalent to winning a lottery – luck has nothing to do with it. It takes a combination of good, prudent and consistent strata management strategies to ensure that your strata property continues to grow in value and doesn’t become a liability. These include good maintenance, good financial planning, good governance, being strategic in your outlook, being proactive, (fostering) sense of ownership, planning for sustainability, engaging with your community and professional management.