The Hidden Metrics That Define Great Strata Management

A data-driven approach to portfolio compliance excellence

In strata management, success is measured through many lenses: lots under management, arrears percentages, committee satisfaction scores. But what if the most powerful performance indicator has been hiding in plain sight all along?

After analysing compliance data across 800+ properties, we've discovered that the percentage of buildings with valid, signed Annual Essential Safety Measures Reports (AESMRs) might be the single most important metric that management companies aren't tracking.

Why This Metric Matters More Than You Think

When a building cannot issue a signed AESMR due to outstanding critical defects, it creates cascading impacts:

• Legal exposure for committee members who sign occupancy certificates
• Insurance complications that emerge only when claims arise
• Council compliance risks that can result in notices and fines
• Hidden management hours spent coordinating between contractors and committees

Yet most strata management firms don't track what percentage of their portfolio maintains current, signed AESMRs at any given time.

The 80/20 Rule of Compliance

Our analysis reveals a consistent pattern: roughly 20% of buildings drive 80% of compliance administration. These properties cycle through defects, rectifications, and re-inspections without achieving stable compliance. Meanwhile, approximately 30% of properties maintain near-perfect compliance year after year—yet their success goes unrecognised and unrewarded.

The opportunity: What if management companies tracked and celebrated managers who successfully moved properties from the problematic 20% into the stable 80%?

Understanding Contractor Dynamics

Fire service contractors are essential partners in building safety. Our data shows they operate with different approaches to defect identification, with some identifying 2-3 times more defects per property than others. This variance isn't necessarily about quality—it often reflects:

• Building complexity - Larger, older buildings naturally generate more items
• Risk tolerance - Some contractors flag every minor issue, others focus on critical items
• Service depth - Comprehensive inspections find more than surface-level checks
• Business models - Various approaches to balancing thoroughness with efficiency

The key insight: managers need visibility into these patterns to have informed discussions with contractors about the right balance for each property.

The Excellence Paradox

Here's what surprises many: achieving a high percentage of defect-free properties doesn't mean compromising safety. Instead, it typically indicates:

1. Proactive maintenance preventing defects before they occur
2. Strong contractor relationships ensuring quality service delivery
3. Effective communication closing loops between work completion and documentation
4. Strategic oversight catching missed service routines before they become defects

The best-performing portfolios we've analysed maintain 35-40% of properties completely defect-free while simultaneously ensuring all critical items are addressed promptly.

A New Framework for Performance

Progressive strata management companies are beginning to implement portfolio-wide compliance metrics:

• Signed AESMR percentage - The north star metric
• Critical defect resolution time - Speed from identification to clearance
• Defect-free property rate - Indicating proactive vs reactive management
• Service completion rates - Ensuring contractors deliver contracted services

These metrics transform compliance from a necessary evil into a performance driver that managers can actually influence and improve.

The Management Opportunity

For strata managers, this represents a significant opportunity. Those who master compliance metrics typically see:

• Reduced administration time through systematic processes
• Happier committees who appreciate proactive communication
• Competitive advantages in tenders showcasing compliance excellence
• Professional growth as compliance expertise becomes a differentiator

For management companies, supporting managers with tools and insights to improve these metrics can transform portfolio performance while reducing risk.

Moving Forward: Three Actions That Matter

1. Baseline Your Portfolio: Understanding current signed AESMR percentages creates the foundation for improvement
2. Celebrate Success: Recognise properties and managers achieving consistent compliance excellence
3. Enable Strategic Conversations: Arm managers with data to have productive discussions with committees and contractors about optimising compliance approaches

The Bottom Line

In an industry where differentiation is challenging, compliance excellence offers a measurable, meaningful way to demonstrate superior management. The firms that recognise and act on this opportunity will find themselves with happier committees, more efficient operations, and a powerful story to tell in competitive tenders.

The question isn't whether to focus on compliance metrics—it's whether you'll be among the first to turn this insight into competitive advantage.

Want to understand your portfolio's compliance performance? Focus BRC offers portfolio analysis and strategic consulting to help management companies implement data-driven compliance excellence. Contact us to explore how your team can benefit from compliance intelligence.