How does property management compare to strata management?

What are the important numbers in property management compared to strata/body corporate management?

If you were to look solely at strata management revenue and compare it to property management (not what we suggest as there are real benefits of the synergy of sales, property and strata working together) this is what it might look like.

Property management

Strata/body corporate management

Number of properties 1151 Number of buildings (Ave 16 units/bldg.) 804
Number of property managers 1 Number of strata managers 1
Your commission 7%1 Your fee share 70%
Average gross rent per week $400 Average contract fee per unit/year $1603
Revenue per average unit/year $1,456 Revenue per average building $2,560
Revenue per property manager $167,440 Revenue per strata manager $204,800
Total annual revenue $167,440 Total annual revenue $143,360
Capital asset x 3 $502,3205 Capital asset x 3 $430,0805,6

The OutSourced Strata advantage

 

The real reason you want to get into strata is not the revenue and capital value strata adds to your business
but more the boosted opportunities from:

1. More listings and sales
2. More property management opportunities
3. Additional cash flow

OutSourced Strata allows you to manage more buildings than the average strata manager.
This means you focus on relationship building and being proactive – something your competitors don’t do and gives you a distinct edge.

 

Source: 1. Macquarie Bank 2014 Residential Real Estate Benchmarking Report | 2. Median weekly rent Brisbane $400. Domain.com.au | 3. Macquarie Bank Strata Management Best Practice Benchmarking Report 2013 | 4. Average managements per strata manager with OutSourced Strata technology | 5. Industry averages | 6. Plus the real benefit of more listings and sales, more property management opportunities, and additional cash flow
NOTE: All areas and locations are different, therefore you must verify the figures to reflect your local markets and obtain independent accounting advice as you see fit.