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Top 3 reasons for self managed Strata corporations to use a strata management company to manage their financials

Here are the top 3 reasons to use a strata agency to manage your financials

1. Transparency 

Most strata management companies will produce monthly financial statements for your strata corporation, and post these in an area (usually an online portal) where all owners are able to see them. This usually leads to greater trust and transparency amongst strata owners as expenses and bank account statements will be visible to everyone, not just Council members. We find that many self managed strata corporations don’t provide this transparency. 

2. Oversight by an impartial third part

Using a licensed strata agency to handling your accounting needs will provide you with an impartial third party overseeing your financials. All licensed strata management companies are required to do an annual review engagement by an independent accounting agency, and this is overseen by the Governing body BCFSA (formerly the Real Estate Council of BC.)

3. Easier to market the property and to obtain mortgages

Having accurate and timely strata corporation financial statements are what Realtors, Buyers, and Mortgage lenders want to see. This can make it much easier to market and sell your property, and to obtain a mortgage. We find that many self managed strata buildings don’t always produce the financial statements in an accurate and timely manner. Of course there are many exceptions to this, but it’s been our experience over the years that this is generally true. 

Looking for a strata management company to help you with your accounting, financial, and administrative needs? Please reach out to us here

Chris Stepchuk

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