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Strengthening Financial Management in Strata: A Guide for Committees

Strata committees play a vital role in maintaining the financial health of residential and commercial buildings. With rising costs, increasing compliance requirements, and growing expectations from owners, it's more important than ever for committees to adopt smart, transparent, and proactive financial practices.

Here are six practical strategies strata committees can use to improve how they manage a building’s finances:

1. Set a Clear, Future-Focused Annual Budget

A well-planned budget is the foundation of financial stability. Committees should:

  • Include all expected expenses—maintenance, insurance, utilities, admin, and long-term upgrades.

  • Align the budget with a 10-year capital works fund plan to ensure future projects are covered.

  • Present the budget to owners for feedback and approval, fostering transparency and trust.

2. Use Cloud-Based Platforms for Financial Transparency

Technology can simplify financial management and improve owner engagement:

  • Implement digital platforms that allow owners to view levies, expenses, and reports in real time.

  • Automate reminders for levy payments and track arrears efficiently.

  • Use online tools to log and approve expenses, ensuring accountability and reducing manual errors.

3. Maintain Accurate and Accessible Records

Good recordkeeping is essential for compliance and clarity:

  • Keep financial records, insurance documents, and meeting minutes for at least seven years.

  • Store documents securely in cloud-based systems for easy access and sharing.

  • Ensure records are audit-ready and available to owners upon request.

4. Plan Ahead for Unforeseen Costs

Unexpected expenses—like emergency repairs or regulatory upgrades—can strain budgets. Committees should:

  • Allocate funds to a contingency reserve for emergencies.

  • Review and update the capital works plan annually.

  • Consider strata loans or insurance options for large, unexpected costs.

5. Engage Professional Support

Financial management can be complex. Committees benefit from working with:

  • Qualified strata managers or treasurers to oversee operations and ensure compliance.

  • Experts who can advise on insurance, financial reporting, and contractor negotiations.

  • Training for committee members to understand their fiduciary duties and legal responsibilities.

6. Communicate Clearly with Owners

Transparency builds trust and reduces conflict:

  • Provide regular financial updates via newsletters, portals, or meetings.

  • Be open about decisions affecting levies or major expenditures.

  • Encourage owner feedback and participation in financial planning.


🔍 Final Thoughts

Effective financial management is more than balancing the books—it’s about building a sustainable, transparent, and well-governed strata community. By embracing technology, planning ahead, and engaging owners, strata committees can lead with confidence and deliver long-term value.

Want to learn how our AI-powered platform can support smarter financial management for your strata scheme? Contact us today!

 
 
 
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