Larger Strata Managers Provice Economies of Scale 30/04/2009 For strata property owners, it is the Owner’s Corporation and Executive Committee that must find ways to maintain the building. And it is left to these people to get the work done as cost effectively as possible. Left with such responsibility these administrators keep a particularly sharp eye for ways to minimise expenses. Their need for careful scrutiny often sees them reviewing the work of their strata management companies and some begin to notice that the medium to larger firms have an edge. Such companies can often offer benefits of scale that others cannot.
Mr Richard Tooker, the director of New South Wales Strata Management, says economies of scale can be important. They can increase the value received on every dollar spent by an Owner’s Corporation.
He says that larger companies have muscle enough to help deliver a maximum range of benefits, and who use their buying power to help a strata scheme to save money.
“Obtaining quotations for maintenance work is an example. A company of sufficient size can stand at arms length from the work that needs doing. With hundreds of buildings under management, as we have, the company can assist through its contacts with reliable and reputable people. At no additional cost an Owner’s Corporation can use our larger buying power to achieve cost economies that would be difficult for them to achieve on their own.
“We receive no commission and have no commercial links with these providers. But due to our numerous buildings under management it behoves them to perform good work at what is often a bulk rate in order to maintain their position on our books. Our interest centres on our clients, who are the owners and their elected representatives. We want them to appreciate and value our assistance. So helping them to receive value for money is understandably important to us.”
Other benefits, he says, can include oversight roles. They can help committees to understand their insurance requirements, can assist with safety audits, arrange pest control, provide an assessment of sinking funds, and even the planning of meetings.
Mr Tooker says one of the most used benefits is the computer assisted management system that can track activities and help an Owner’s Corporation to keep abreast of its fulfilment duties as required law.
“Such tracking systems let us monitor activities with extreme care, acting proactively to provide timely alerts that can see that problems are avoided.”
Equally important, he says, is an ability to tailor the services to the specific needs of a particular strata scheme.
“As no two strata schemes are exactly alike it can be a very important for the programme to provide the type and range of skills that are most appropriate.
“This ability to match skills with requirements can see that the needs of an Owner’s Corporation and its Executive Committee are met at minimum cost.”
Mr Tooker says a service estimate can demonstrate the viability of such a carefully tailored programme and can be arranged by contacting New South Wales Property Management direct on 9890 1841.
New South Wales Strata Management (formerly Gilmour Strata Management) commenced business in early 1991, as a member of the highly respected J A Gilmour & Sons group of companies. Licensed solely and specialising only in strata management services, the company has steadily grown to become one of the largest such organisations in New South Wales.
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