Sujenna, firstly the numbered list and outline by newb is excellent. Self management is not hard I have been in a few strata that have done it. Never a 2 owner strata, the smallest I have been in is 5 unit.
As Jimmy says you need to examine the contract to see when and how the current strata manager can be exited. If you are otherwise happy at your existing strata why not see if it could be self managed?
The rules and regulations around strata have become more complex and time consuming over the last 10 years.
However the availability of most things via the internet is a boon for self managed strata. With email and electronic banking it is mostly very easy. I find one thing that is great is having your strata bank accounts on line. I set them up so that every owners can view the balance of accounts but it takes 2 owners to make a payment.
I have found the main issue for self managing is assigning responsibilities. Usually when you ask for volunteers to step forward everyone takes a step back. My way of encouraging self management is looking at the annual fees to the contracted strata manager and the service they provide. I then worked out by self managing we could save ourselves over say $5,000 a year which can be used to reduce levys but also be better spent on repairs etc.
From what I have seen and read contracted strata managers only do the administrative work which with a little input from 5 owners can be done without placing too much burden on anyone. At each AGM we elect 5 executive members as below:
- Chair, this role includes resolving issues of compliance with the act and others like “who responsibility is it” (the department of Fair Trading in NSW has comprehensive guidelines on this)
- Secretary, preparing and distributing the Agenda and Minutes.
- Treasurer, requires some money awareness in preparing year end accounts (I do this easily using a spreadsheet. Also whose role also is initiating payments to tradesmen, vendors etc
- On Site Manager for arranging repairs and looking at issues raised
- Levy issuer and Bank Inspector for issuing notices to owners that levys are due and checking that levys are paid (issuing a reminder to delinquent payers).
The strata can try it for a period and always go back to a contracted manager