Why many management companies don’t want to manage small strata properties

For those who live in a smaller/ medium sized strata communities (under 100 units), it may come as a shock to you, but many strata management companies aren’t necessarily that interested in your business.

Why is this exactly?

How much work can managing a 30 unit strata building really be?

Well, it’s really all about the math when it comes to managing smaller properties.

Smaller properties still have many of the same needs that a larger (200 unit) property may have. A small strata property still has a roof that requires replacement every 25 years, windows that need to be washed regularly, and insurance that needs to be renegotiated annually. They also have an AGM that requires prep work, no different from a large building.

What smaller properties DON’T have is a large budget, which means that the management company doesn’t get paid as much, and thus cannot devote as much time to the smaller building as they could to a much larger one. Since they don’t have a large budget, many vendors may also not be as interested in working with them, and offer more limited scopes of work. They also don’t usually have an onsite caretaker or concierge, so the bulk of the work required ends up falling onto the Strata Agent, Strata Council, or volunteer Strata owners. 

Why are smaller strata buildings less desirable?

To summarize, smaller strata properties can be just as much work as large properties, but with less resources available, for considerably less pay.

Having said this, we work with smaller strata properties all the time, but expectation management is really the key so that everyone (owners, council, and management company) understand the economics of it all. Service limitations will usually come into play so that it works within the budget.

Reach out to us here if you are a smaller strata property looking for some help along the way.