Running a Small Strata | Self-Managed
Self-Managed Strata or a Management Company?
A self-managed strata is run by its own owners through council, and in BC those owners need no licence. A strata can instead hire a strata management company, which must be a licensed brokerage. In both cases council stays responsible for the duties in the Strata Property Act. This page explains what strata management is in BC law, who needs a licence, what a manager does, the duties a 2 to 6 unit strata keeps either way, how to end a contract, and what to check before you hire.
The short answer
- 01A self-managed strata is run by its own council with no hired strata manager. The Province says a strata corporation "may be self-managed".
- 02Owners who serve on council need no licence. An owner may also do strata management work for up to 2 stratas in which they own a lot without a licence (Real Estate Services Regulation s.2.17).
- 03Anyone else who does strata management work for a fee must be licensed, and the work must go through a licensed brokerage with a managing broker. The BC Financial Services Authority (BCFSA) licenses them.
- 04Council keeps its duties either way. A manager can do the work, but council stays responsible to the owners for budgets, records, insurance, Form B and Form F, and bylaw enforcement.
- 05A strata can cancel a management contract on 2 months' notice after a 3/4 vote at a general meeting, with no penalty, whatever the contract says. The manager must return all records within 4 weeks (Strata Property Act s.37, s.39).
- 06No official source publishes strata management fees. Check a manager's licence with BCFSA's "Find a Professional" search before you sign.
What strata management means in BC law
The Real Estate Services Act defines "strata management services" as any of the following, done for or on behalf of a strata corporation:
- collecting or holding strata fees, contributions, levies or other amounts owed to the strata;
- making payments to others on behalf of the strata;
- negotiating or signing contracts on behalf of the strata;
- supervising employees or contractors the strata hires;
- enforcing the strata's bylaws or rules.
Anyone who provides these services for a fee must be licensed, unless the Real Estate Services Regulation exempts them. All licensed services must go through a brokerage, and every brokerage must have a managing broker who supervises the individual strata managers. BCFSA calls a brokerage that provides these services a strata management company.
The BC Financial Services Authority (BCFSA) licenses strata managers, sets their education rules, and investigates complaints against them. The Province's licensing page says BCFSA "only enforces the Real Estate Services Act, it does not enforce the Strata Property Act." A complaint about the strata itself goes to council and then the Civil Resolution Tribunal. A complaint about a manager's conduct goes to BCFSA.
What self-managed means
The Province says a strata corporation "may be self-managed", and that "strata lot owners in a self-managed strata corporation do not have to be licensed." BCFSA says owners who serve on council typically need no licence. An owner may also provide strata management services, even for a fee, to a maximum of 2 strata corporations in which they own a strata lot, without a licence (Real Estate Services Regulation s.2.17). That owner must pass any money received to the strata promptly.
In a strata with fewer than 4 lots, or fewer than 4 owners, every owner is on council (Standard Bylaw 9(2)). So in a duplex or triplex, self-managed means the owners together do every task. In a 4 to 6 lot strata with 4 or more owners, owners elect a council of 3 to 7 at each AGM.
Council can share out the work. It may delegate some or all of its powers to a council member or to someone outside council (Standard Bylaw 20(1)). A spending delegation must name a specific amount for a specific purpose, or set a maximum and the purposes or conditions (20(2), (3)). Council cannot delegate its decisions on whether someone broke a bylaw, whether to fine them, or whether to deny them a recreation facility (20(4)).
Council members are unpaid unless the pay is approved in advance in the budget, in the bylaws, or by a 3/4 vote at a general meeting (Act s.34). The Standard Bylaws provide no pay.
Duties that stay with council either way
The Act says council "must exercise the powers and perform the duties of the strata corporation" (s.26). BCFSA's guide adds that when council delegates duties to a management company, "the strata council continues to be responsible and accountable to the strata lot owners". These are the duties a small strata must cover, with or without a manager.
| Duty | Source |
|---|---|
| Prepare a budget and hold the annual general meeting (AGM) within 2 months of the fiscal year end | Act s.40, s.103 |
| Put at least 10% of the operating budget into the contingency reserve fund, kept in insured accounts or allowed investments | Act s.95; Reg s.6.1 |
| Keep the strata's records and give owners copies within 2 weeks (bylaws and rules within 1 week) | Act s.35, s.36 |
| Give a Form B within 1 week of a request, for at most $35 plus 25 cents a page | Act s.59; Reg s.4.4 |
| Give a Form F (Certificate of Payment) within 1 week, for at most $15 | Act s.115; Reg s.6.10 |
| Insure the buildings at full replacement value, carry $2,000,000 of liability insurance, review the cover every year and report on it at each AGM | Act s.149, s.154; Reg s.9.2 |
| Enforce bylaws and rules, with written notice and a chance to answer before any fine | Act s.26, s.135 |
| Hold a hearing within 4 weeks when an owner asks in writing | Act s.34.1 |
| Send owners the council minutes within 2 weeks of each meeting | SB 19 |
| File a T2 corporation income tax return with the Canada Revenue Agency every year | CRA T2 page |
| At 5 or more lots: obtain a depreciation report and an electrical planning report on time | Act s.94, s.94.1; Reg s.5.8, s.6.21 |
The first-year checklist puts these duties in date order for a new strata, and the forms and records page lists how long each record must be kept.
What a licensed strata manager does
A manager does what the contract says. BCFSA describes two common choices: a company that carries out many of the strata's duties, or one that does only a few, such as collecting strata fees, paying bills and preparing financial reports. The company may also arrange plumbers, electricians, landscapers and other service providers the strata hires.
The manager acts as the strata's agent and takes instructions from council. BCFSA advises an owner who wants something done to put it to council in writing. BCFSA lists the duties under the Real Estate Services Rules: act in the strata's best interest, follow its lawful instructions, act only within the authority given, advise the strata to get independent advice on matters outside the company's expertise, keep the strata's information confidential, disclose all material information, and avoid conflicts of interest or disclose them at once.
A company must disclose in writing any payment it expects from someone other than the strata. BCFSA gives two common cases: fees it keeps for providing Form B, Form F and copies of documents, and referral fees from contractors, insurance brokers or other providers it recommends.
The management contract
Section 43 of the Real Estate Services Rules requires a written service agreement, signed before services start, unless the strata waives it. BCFSA lists what it must include:
- the legal name and address of the strata corporation, and the name of the management company;
- the date the agreement starts and how long it lasts;
- a general description of the services;
- the fees, and when they are payable;
- whether the company will hold the reserve fund, the operating fund, special levy money or other amounts;
- any extra ways either side can end the agreement;
- the company's authority to sign cheques, sign contracts and invest money for the strata;
- how often it gives accounting statements, and which records it keeps for the strata.
Changes to the agreement must be in writing and agreed by both sides. A fee increase needs council's written approval unless the original contract already sets the increase.
Ending a management contract
Section 39 of the Strata Property Act lets either side cancel a strata management contract "without liability or penalty, despite any provision of the contract to the contrary":
- the strata, on 2 months' notice, once a 3/4 vote at an annual or special general meeting approves it;
- the manager, on 2 months' notice.
The strata needs no vote to cancel the contract under its own terms, or to let it expire without renewing (s.39(2)). In a 2-lot or 3-lot strata, one owner who votes no blocks the 3/4 vote; in a 4-lot strata, 3 of 4 pass it. The vote calculator shows the count for your size.
When the contract ends, the manager must give the strata every record it holds within 4 weeks (s.37(1)). A manager who does not must pay the strata $1,000 (Regulation s.4.3).
A contract the developer signed before the first AGM has its own limit. It ends 4 weeks after the second AGM, unless owners renew it by majority vote at that meeting (s.24).
How to check a strata manager is licensed
If you are looking for strata management companies in Vancouver or anywhere in BC, these are the checks BCFSA's guide points to. We do not name or rank companies.
| Check | How |
|---|---|
| Licence | Search the company (the brokerage) and the named strata manager in BCFSA's "Find a Professional" search. |
| Discipline | BCFSA suggests asking whether any disciplinary action has been taken against the company or the proposed manager. |
| Workload | Ask how many stratas the company and the proposed manager handle, and what office staff support the manager. |
| References | Ask for references from other stratas the company manages. |
| Contractors | Ask whether the company will replace your current contractors with its usual ones. |
| Extra fees | Read every schedule attached to the contract for added charges, such as fees for Form B and Form F, which the company must disclose. |
| Trust money | Ask which funds the company will hold in trust, and when it needs council's approval to move money between them. |
What management costs
No official source publishes strata management fees, and we found no primary source with figures for 2 to 6 unit buildings. BCFSA says fees are often negotiable, that some companies have set fees, and that different companies charge different amounts for different services. The fee usually sits in the operating budget that owners pass by majority vote at the AGM.
A self-managed strata still has costs: insurance, any bookkeeping or tax help it buys, and the time of the owners who do the work. Put each one in the budget so owners see it. The budget page lists the lines the Regulation requires.
Best For
- ✓ Self-managed: a 2 to 6 unit strata where one or two owners will keep the books, the records and the calendar, and the others check their work.
- ✓ A manager: a strata where no owner has the time, or where owners do not trust each other with the money.
- ✓ Either way: a council that writes down who does each duty, with spending limits set by resolution under Standard Bylaw 20.
Usually Fails When
- ✕ One owner holds the bank account and the records, and the others never see a financial statement.
- ✕ Owners hire a person who is neither an owner nor licensed to collect fees or sign contracts for pay.
- ✕ Council signs a management contract and stops reading the monthly statements.
What To Verify Before Spending Money
- → The manager's and the company's licence in BCFSA's "Find a Professional" search.
- → Every fee in the contract and its schedules, and which funds the company will hold.
- → Who holds the strata's records today, so they can be returned within 4 weeks if the contract ends.
Common questions
What is a self managed strata in BC? +
A self-managed strata is one run by its own elected council, with no hired strata management company. The Province says a strata corporation "may be self-managed", and owners who do the work for their own strata do not have to be licensed. Council still carries every duty in the Strata Property Act.
What does self managed strata mean? +
It means the owners, through council, do the work a manager would do: collecting fees, paying bills, keeping records, arranging insurance, preparing the budget and AGM, and issuing Form B and Form F. In a strata with fewer than 4 lots, every owner is on council (Standard Bylaw 9(2)).
What is strata management? +
In BC law, strata management services are collecting or holding strata fees and levies, or using powers council has handed over, such as paying bills, signing contracts, supervising contractors and enforcing bylaws (Real Estate Services Act s.1). Anyone who does this for another person for pay must be licensed, through a licensed brokerage.
Who regulates strata management in BC? +
The BC Financial Services Authority (BCFSA) licenses strata managers and strata management brokerages and investigates complaints under the Real Estate Services Act. The Province notes that BCFSA does not enforce the Strata Property Act. Disputes with the strata itself go to council and then to the Civil Resolution Tribunal.
How do I choose a strata management company in Vancouver? +
Check that the company is a licensed brokerage and that the named manager is licensed, in BCFSA's "Find a Professional" search. Ask about any discipline, how many stratas the manager handles, references, and every fee in the contract and its schedules. We name no companies.
Does a strata owner need a licence to manage their own strata? +
No. BCFSA says owners who serve on council typically need no licence. An unlicensed owner may also provide strata management services to a maximum of 2 strata corporations in which they own a strata lot, and must pass any money received to the strata promptly (Real Estate Services Regulation s.2.17).
How much do strata management companies charge? +
No official source publishes fees. BCFSA says fees are often negotiable and that different companies charge different amounts for different services. The contract must state the fees and when they are payable, and a fee change must be approved by council in writing unless the contract sets the increase.
How do we end a strata management contract? +
Pass a 3/4 vote at an annual or special general meeting, then give 2 months' notice. The strata pays no penalty, whatever the contract says (s.39(1)(a)). It can also end the contract under its own terms, or let it expire, without a vote (s.39(2)). The manager must return all strata records within 4 weeks (s.37).
What happens if a strata manager does not return the records? +
The Act gives the manager 4 weeks after the contract ends to give the strata every record it holds (s.37(1)). A manager who fails to do so must pay the strata $1,000 (Regulation s.4.3).
Can council hand all its work to a strata manager? +
Council can delegate powers to a manager, but a spending delegation must set a specific amount and purpose, or a maximum and the purposes (Standard Bylaw 20). Council cannot delegate decisions on whether a person broke a bylaw, whether to fine them, or whether to deny access to a recreation facility. BCFSA says council stays responsible to the owners for the delegated duties.
Does a management contract signed by the developer bind the new owners? +
Only for a limited time. A management contract signed before the first AGM ends 4 weeks after the second AGM unless owners renew it by majority vote at that meeting (s.24). It can also be cancelled earlier under s.39.
Do strata council members get paid in a self-managed strata? +
Only if the pay is approved before it is paid: in the budget, in the bylaws, or by a 3/4 vote at a general meeting (s.34). The Standard Bylaws provide no pay.
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