Sectioned stratas are most certainly the future of what is being built here in BC, but that doesn’t make them any easier to manage! Administratively, they are far more work than a non-sectioned strata, very often requiring double the amount of work on a monthly basis. Having said that, they are here to stay until a better system replaces it. From a City planning and construction viewpoint, it just makes sense to have commercial on the street level, with residential units up above. This leads to more walkable, liveable communities, with less reliance on cars, etc.
If you’re currently part of a sectioned strata Council, here are a few tips and tricks to make things easier for yourself.
- Invoice allocation. Make sure that expenses are being placed in the correct buckets! Ensure that the expenses such as waste management and electricity are being charged to the correct strata. Undoing them can be very difficult if they aren’t initially set up correctly. If a vendor is working on the entire building, have him break down his invoice and submit to each section.
- Strata fees don’t offset. It’s important to remember that the strata fees for each section are independent of each other, and they don’t offset each other. Keep each strata fee withdrawal separate.
- Separate bank accounts. Each section should have its own bank accounts. They should each have their own CRF and Operating accounts.
- Treat all sections like their own entities. The less intermingled the sections are, the easier that the accounting will be.
- Plan for conflict and potential litigation. There will inevitably be disputes, so come up with a mediation plan and settle disputes in a professional manner. Avoid CRT clams and lawyers if at all possible as this can get expensive for all parties.
- Keep your bylaws clear when it comes to who is responsible for what. Ambiguity causes chaos. Examples would include major common property assets such as windows, building envelope, parking lots, enterphone, elevator, etc. The more clear that your bylaws are, the less potential that there is for conflict down the road. A great time to revise your bylaws is when all sections are getting along, not when they aren’t as it can be nearly impossible to pass bylaws if both sides are fighting.
- Different management companies for each section. Having different companies run and manage each section can create huge communication issues, more confrontation, and lead to inefficiencies.
- Be very clear as to which section is in charge of reviewing and approving commercial build-outs and renovations.
- Try to see the bigger picture and think about what is best for the building, not just each individual section. Sometimes we tend to get stuck on the small things, when really Council should be focusing on the big picture and overall health of the strata corporation.
These are just a few ideas to make things run more smoothly for your sectioned property. If you’re looking for some help managing a sectioned building, reach out to us here!