Getting Better Services & Products in Strata

One of the longer running debates in strata management and operations has been about how specialist businesses serving strata schemes and owners can get recognised and preferentially selected by strata schemes over those who provide similar services generally.

In some cases that is legislatively or practically achieved or advantaged.  For instance strata managers need to have special qualifications and/or come from a limited group so strata schemes must choose from amongst that group and they are all (at least) focused on strata scheme needs.  But, even then general real estate agents and in some cases accountants also undertake strata management.

In other cases the product or service only exists for strata schemes and therefore only some business can (and do) supply them.  For instance, strata insurance must comply with the legal requirements and only some insurers offer it.  So strata schemes don’t generally look elsewhere for strata insurance.  The same applies for things like strata searching, strata certification, etc.

But in most cases the product or service exists generally and there are many possible suppliers (some of which specialise in strata and others who do not) … so strata schemes could choose either.  For instance, plumbers, electricians, cleaners, gardeners, lawyers, accountants, bankers, engineers, etc, etc. 

It’s in those situations that those of us who have focused and specialised on supplying strata schemes face the biggest challenges.

It is obvious that strata schemes have features that make working for them, supplying services or products to them and making sure they comply with operational requirements more difficult; involve knowing more than usual, tailoring products or services to their needs and understanding the differences. 

But this takes extra effort, time and cost.  And, strata schemes should also experience better outcomes and value for money from these businesses.

In comparison businesses simply supplying the same product or service that they supply to free standing property owners can do so more cheaply.  But it’s likely that the service or product may not be ideal (or in the worst cases totally unsuitable).

It’s a dilemma all round.  For businesses wanting their extra efforts and investments to get recognised and for strata schemes trying to find the best suppliers at the best prices.

So, what can (and should) be done ?  


I suggest some of the following.

1.    Businesses should explain their focus on strata, how they do that and the advantages of using them.  This happens to a limited degree.

2.    Strata schemes should find out about supplier experience working in strata and consider that (amongst other factors like price) when choosing.  This also happens but less often that is ideal.

3.    Industry associations should encourage specialist businesses to join and/or participate to help identify them.  There are some (limited) opportunities to do this but it is not widespread and not largely encouraged by industry associations.

4.    Strata schemes (and managers) should recognise businesses that actively participate in industry associations.  Sometimes this happens and sometimes it doesn’t.  Sadly, often price is seen as more important.

5.    Everyone should try to identify what differentiates services and products for strata schemes (from general supply) and include those matters in selection processes.  This rarely happens (except where some businesses do so as a marketing strategy).

6.     An accreditation, endorsement and/or rating system should be developed to compare businesses so that strata consumers can find out more and make better assessments.  There is no such system available in Australia.

7.     A longer term view should be taken by everyone about the running of strata schemes (after all they will be around for a long time) which mitigates to more specialised and focused business suppliers than cheaper alternatives.  This applies to owners, committee members, managers, associations and businesses. 

Sounds good … doesn’t it ?  Like strata supplier heaven ….

Francesco …