Hiring a Strata Management company as part of the development process can be highly beneficial for developers and new developments, as there are many obligations under the Strata Property Act (SPA) that the developer is required to follow, such as when to hold the first Annual General Meeting (AGM) and transferring documents to the Strata Corporation. Additionally, there is lots of information that a Strata Management company can provide to developers. Without knowing the process of new developments, developers can end up with delays and costly mistakes.
Drafting an interim budget to include in the developer’s disclosure statement can be one of the more difficult processes for developers when it comes to new developments. The developer is responsible for all expenses incurred until one month after the first conveyance of a strata lot, and must prepare and provide a twelve-month interim budget to purchasers prior to entering into contracts. If the expenses in the interim budget exceed the projected expenses, the developer is required to pay the difference within eight weeks of the first AGM. If the interim budget is inaccurate, additional fees and penalties can be incurred. Hiring a Strata Management company will allow a developer to be more prepared and prevent inaccurate information in the interim budget.
Maintenance and regular upkeep are important, especially for new developments, as building wear and tear can affect a new development’s warranty. Without a list of trusted contractors and trades, it can be difficult for a developer to find the right team to oversee the new development. Hiring a Strata Management company will remove the headache and stress of managing multiple contractors and trades, and allow for a more seamless set up of services such as garbage collection, landscaping, janitorial services, and other services.
The Strata Corporation’s first AGM is one of the most important meetings for a new development and developer. At the first AGM meeting, the developer must have the annual budget, contracts, insurance, warranties for common property, and other important documentation ready to provide to the Strata Corporation. Providing ample notice to residents is crucial. It is the developer’s job to notify all residents of the first AGM meeting at least two weeks prior to the first meeting. They must also provide a detailed outline of the meeting and resolutions required for voting. If the developer does not meet the time requirements for the first AGM meeting, they may be penalized. With the help of a Strata Management company, the developer will ensure the residents are notified of the AGM meeting in a timely manner, ensure the agenda is complete and the meeting is conducted in an organized manner, ensure meeting minutes are accurately taken, and will help mediate and resolve disputes during the meeting.
In order to ensure a successful new development, a developer should hire a Strata Management company. Not only will they assist with planning the first AGM, but will also carry out the day-to-day obligations of the Strata Corporation including regular maintenance, attending AGM and Strata Council meetings, reviewing financial records and providing guidance on future budgets, collecting monthly strata fees, assist with securing sufficient insurance, and other requirements set out in the SPA.
At CENTURY 21 Prudential Estates (RMD) Ltd., we manage over 150 Strata Corporations throughout the Greater Vancouver area and parts of the Fraser Valley. Our Strata Managers are transparent, proactive, and have the knowledge and experience that you are looking for in a professional Property Management company. To learn more about our strata management services, visit https://century21pel.com/strata/.
