If you're a growing real estate investor, then you may already have a very diversified portfolio. You may be looking to expand even further though by adding a multi-family unit, such as a block of flats. In this case, however, you have some additional issues to consider, including a fairly complex management structure. Before you go ahead with this type of acquisition, what type of manager do you need to take the strain?
Crucial Choice
Effective strata management is very important for a multifamily development, as the needs of many different parties have to be catered for, in addition to the management of the common areas. The strata manager needs to have a number of different skills and character traits and you need to choose carefully.
Integrity
Firstly, ensure that they are always impartial and have complete integrity. They must treat everybody impartially and with fairness, while always having the interests of the owner's corporation at heart.
Knowledgeable
It's best to find someone who has previous knowledge when working in this type of situation. It can certainly help if they have a good understanding of property law, accounting and a general understanding of building construction principles. The best manager is an all-rounder who may have several different career paths, especially when those include a variety of different commercial engagements.
Educated
Strata managers need to have appropriate licensing in order to be certified. There are a variety of different training courses available in this field and these can augment the basic qualifications needed for an effective management position.
Personality
The most effective strata managers have a very pleasant personality that allows them to get on with all different types of people. Having said that, they should always be fair but firm in their dealings and gain the respect of everybody involved, from inspectors to contractors and from owners to tenants.
Proactivity
Finally, ensure that the strata manager that you engage to handle your affairs is proactive and able to get things done without constant reference to your office. This doesn't mean that they should have a completely free hand, necessarily, but that you can trust them to help you make the most of your considerable investment here.
Choosing Carefully
When you have a great team at your side, you should be able to take on the purchase of a multiunit property without fear, to add a significant extra level to your portfolio.
Share14 February 2018
Buying real estate can be complicated, and that's especially true if you are preparing to buy your first property. Whether you are buying your first home or your first investment property, you probably have a lot of questions along the way, and this blog is designed to help. If you need tips about hiring the right agent, deciding which property is the best, applying for loans or anything else, you have come to the right place. I plan to include posts like that as well as many similar topics. I am glad you find this blog, and thank you for reading. Good luck on your real estate buying experience.