The word on the street in the Strata Management world is that commercial and light industrial strata properties are much easier to manage than residential stratas. Why is that you might ask?
There are a number of reasons that commercial stratas can be easier to manage than residential stratas.
Here a few below:
Less emotional decision making. Many residential condo owners live and occupy their strata lot. Unless it’s used as a rental property, they can develop very deep emotional attachment to the property, and sometimes this passion can lead to conflict amongst owners. This can sometimes lead to irrational decision making. On the flip side, most commercial owners are strictly using their strata as a investment, and less emotion tends to be involved when making decisions.
Business hours. Most commercial strata lot owners conduct their business during business hours. On the flip side, most residential owners want to meet when they are home from work, in the evenings.
Qualified Councils. Since most commercial strata lot owners are also business owners, they generally tend to look at their strata as more of a business. Sometimes, but not always, Residential owners will struggle to find volunteers to sit on Council, and this can lead to owners making decisions that they are not qualified to make. They may have never run a business before, and are all of a sudden in charge of a $200k small business.
These are a few of the reasons that commercial stratas CAN be easier to manage than Residential.
Having said that, commercial stratas are not always an absolute breeze to manage. For NEW commercial properties, managing the TI’s (Tenant improvements) can be an absolute nightmare, sometimes involving lawyers, engineers, construction managers, City planners and permit officers, etc. Be cautious if you agree to take on a brand new commercial strata that is still a shell and not yet built out.
Looking for some assistance in managing either your residential or commercial strata? Reach out to us here today!