How do you become a strata manager in NSW and Victoria so you can add strata management to your real estate business?
For motivated and proactive real estate agency owners, the addition of property management as a service makes sense. Taking on responsibility for landlords and tenants creates a ‘bread and butter’ income stream, delivering more predictability and more financial stability.
For those looking to take things a step further, strata roll management can also be rewarding and profitable. However, you can’t take on the role of strata manager without certain qualifications.
Take a look at what you need to do in NSW and Victoria to become a strata manager.
Be a strata manager, New South Wales
Strata management is a complex job with a variety of responsibilities. Unlike property management, which deals with landlords, tenants, contracts and condition reports, being a strata manager means liaising with the body corporate and ensuring common areas are well looked after. There is also a financial element, taking care of the sinking fund and the annual budget. Then there is insurance and safety compliance to take care of.
In NSW, strata managers organise meetings, work with tradespeople and help manage disputes between lot owners. To qualify as a strata manager, you need to at least have completed a Certificate of Registration Strata course, which is available from a number of educational institutions. In addition, you need to be registered with NSW Fair Trading.
As an agency, to purchase and manage a strata roll, you must have a licence to do so from NSW Fair Trading. To receive this, you must be able to prove:
The corporation is fit and proper to hold a licence
Each director of the corporation is a fit and proper person to hold a licence
No director or executive officer is a disqualified person
At least one of the directors holds an individual licence for the industry sector in which the corporation proposes to operate
The corporation has paid the relevant contribution to the Property Services Compensation Fund.
It is also recommended to take a look at indemnity insurance requirements as part of the process to become a strata manager in NSW.
You can find the fees involved on the Office of Fair Trading’s website.
Be a strata manager, Victoria
As shared by Consumer Affairs Victoria, to carry on business as an owners corporation manager for a fee or reward in Victoria, you must be registered by the Business Licensing Authority (BLA).
“To be eligible for registration, a company must hold professional indemnity insurance with a minimum coverage of $1.5 million.
The company is automatically ineligible to be registered if:
It is under external administration, or
Any of its directors are currently insolvent under administration (bankrupt, debt agreements under Part IX or Part X) or a represented person under the Guardianship and Administration Act 1986 (where a guardian or administrator has been appointed)”
To gain the insights you need to become a strata manager in Victoria, you can complete a training course. One option, from the REIVIC, provides key skills and knowledge required to be successful in the industry of Owners Corporation Management. This can be completed in one day and give you a strong foundation for getting started.
The more knowledge you have about legislation and how to perform the specific functions of your role as a strata manager, the more successful you will be. There are a range of training institutions which can equip you with these skills, including a Certificate IV in Strata Community Management.
A recent article from Fairfax Media highlighted the need for good strata managers in Australia. With apartment numbers on the rise, there is a lack of qualified and talented individuals. Experts say you don’t need a high-level education but you should have good communication skills and be able to articulate your thoughts well.
As an agency, once you have more than 1500 lots on your strata roll, you will find this to be a profitable area.
BDH Solutions have been buying and selling rent rolls for over 30 years. Keep up with our latest listings here.