How strata managers support governance, compliance, and decision-making.
INTRODUCTION
Strata finance decisions are rarely made by committees alone.
While owners ultimately vote on whether to proceed, strata managers play a central role in guiding, coordinating, and supporting the process from start to finish. In many cases, the success or failure of a finance application depends not on the product itself, but on how effectively the process is managed.
Understanding the role of the strata manager in a finance application helps set clear expectations, reduces friction, and ensures decisions are made with confidence rather than confusion.
WHY STRATA MANAGERS ARE CRITICAL TO THE FINANCE PROCESS
Strata managers sit at the intersection of governance, compliance, communication, and financial administration.
They understand:
- Legislative requirements
- The building’s financial position
- Levy history and arrears
- Committee dynamics
- Owner communication challenges
This makes them uniquely positioned to support committees through complex funding decisions.
IDENTIFYING WHEN FINANCE MAY BE REQUIRED
Strata managers are often the first to identify when existing funds may be insufficient.
This may occur when:
- A major remediation project arises
- Emergency repairs arise
- Insurance premiums increase unexpectedly
- Compliance upgrades are required
- Reserve balances fall below recommended levels
By raising funding considerations early, strata managers help prevent last-minute decisions driven by urgency.
SUPPORTING COMMITTEE DISCUSSION
Once a potential funding gap is identified, strata managers play a key role in facilitating informed discussion.
This includes:
- Explaining available funding options
- Helping committees understand levy impacts
- Coordinating indicative finance comparisons
- Ensuring decisions are properly documented
At this stage, the manager’s role is not to recommend a specific product, but to ensure committees are equipped with accurate information.
COORDINATING PROFESSIONAL INPUT
Project-related and finance decisions often rely on multiple sources of advice.
Strata managers commonly coordinate:
- Engineers’ or consultants’ reports
- Quantity surveyor estimates
- Capital works planning updates
- Finance specialist discussions
This coordination ensures funding decisions are based on realistic scopes, timelines, and costs.
DETERMINING THE PROJECT BUDGET AND THE FUNDING AMOUNT REQUIRED
Getting the project budget right ensures the appropriate funding is raised.
Key factors include:
- Contracted Works - a hard quote where a tender has been run, otherwise an estimate
- Contingency - 10% or more on remediation projects to cover variations
- Project Management / Other Consultants - professionals for larger or more complex projects
- Other Costs - items builders sometimes exclude, such as insurance, allowed for separately
Once the budget is set, the funding amount required should account for:
- Existing Cash Reserves - available after allowing for other expected future capital works
- GST - schemes registered for GST receive a refund of GST paid to suppliers, to be factored in to avoid over-borrowing
MANAGING OWNER COMMUNICATION
Clear communication is one of the most important and challenging parts of the finance process.
Strata managers support this by:
- Preparing clear meeting notices
- Distributing explanatory material
- Answering procedural questions
- Managing expectations around timing
Effective communication reduces misinformation and helps owners engage constructively with the decision.
INFORMATION SESSIONS AND EDUCATION
For many schemes, an information session can be invaluable.
Strata managers often:
- Arrange information sessions
- Coordinate attendance by finance specialists
- Ensure questions are recorded and addressed
- Maintain neutrality while supporting clarity
These sessions allow owners to hear consistent information and ask questions in a structured environment.
FACILITATING THE APPROVAL PROCESS
Finance applications typically require formal approval at a general meeting.
The strata manager ensures:
- Correct motions are drafted
- Voting protocols and thresholds are met
- Minutes accurately reflect decisions
- Statutory requirements are satisfied
This governance role is critical to the validity of the application.
COORDINATING THE APPLICATION AND DOCUMENTATION
Once approval is obtained, the practical work begins.
Strata managers usually:
- Gather required documentation
- Provide financial records
- Liaise between the lender and committee
- Track progress and timelines
Their involvement keeps the process efficient and avoids unnecessary delays.
IMPLEMENTING REPAYMENTS AND ONGOING ADMINISTRATION
After approval, the strata manager typically coordinates:
- Loan drawdown requests
- Loan repayments
- Owner levy schedules
- Monitoring arrears
- Reporting to the committee
Consistency here ensures transparency and confidence.
MAINTAINING NEUTRALITY AND TRUST
A key aspect of the strata manager’s role is maintaining trust.
They are not decision-makers, lenders, or advocates for a particular outcome. Their value lies in process integrity, clarity, and governance support.
WHY THIS ROLE MATTERS MORE THAN EVER
As strata schemes become more complex and financial pressures increase, the need for skilled facilitation grows.
Strata managers who understand finance processes help:
- Reduce conflict
- Improve decision quality
- Protect committees from procedural risk
- Support long-term asset management
FINAL THOUGHTS
Strata managers play a central role in ensuring that the process is transparent, compliant, and well-managed. When their role is clearly understood and respected, finance decisions are more likely to succeed for the benefit of the building and its owners.
Thinking About Funding Works in Your Strata Scheme?
Every building is different. The right funding approach depends on timing, owner mix, and long-term plans.
If your committee is exploring options, you may find it helpful to speak with a specialist who understands strata finance and owner dynamics.
To receive an obligation-free loan proposal for your strata scheme, complete the following form: Request a Loan Proposal