During our work with Strata clients, it has become apparent that many Owners Groups have a minimal appreciation of the operational risks faced by their Strata Corporation in carrying out its business. (Please see our article, The Strata Plan as a Corporate Entity – A Philosophical Approach, under Strata Strategies).
As the “Property Manager”, the Strata Corporation is responsible to protect its Owners from potential or unnecessary physical and financial risks resulting from the operation of the property.
Some would say that it is the duty of their professional Strata Manager to guide the Owners and Council in these matters. While true to some degree, we remind the reader that these managers are only contractors to the Strata, and their presence does not absolve the Corporation, or its Directors, of its own Duty of Care.
For those Strata Plans that operate without a Strata Manager, it is even more imperative that the Owners Group and its Executive Council gain a clear understanding of the risks their Corporation can face from both external and internal sources.
Self-managed or not, it is the duty of each Strata Corporation to identify these risks and implement maintenance processes, and administrative plans and procedures, to mitigate them.
The property reviews undertaken by Unity Services Corporation attempt to identify and clearly explain the potential operational risks, and some of the financial and/or legal consequences that can come as a result of inadequate maintenance practices and planning. We offer suggestions and recommendations on how the Corporation can best implement the appropriate maintenance plans and procedures necessary to protect the financial interests of all the owners.