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Hello all,
We are about to start the process of changing strata management. Does anyone have any warnings or tips? Many thanks
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The Strata Schemes Management Act (in NSW) provides that a Strata Manager’s services may only be terminated by way of a resolution voted upon and passed at a General Meeting of the Owners Corporation, and then only in accordance with the conditions contained in the Strata Manager’s “instrument of appointment “; and that’s the Strata Management Agency Agreement between your Owners Corporation (O/C) and its Strata Manager.
So the first thing your O/C needs to do is to peruse that Agreement, and in particular the Clause relating to its termination, where save a significant breach of fiduciary responsibilities, the usual provision is that the O/C must provide its Strata Manager with three (3) months written notice of its intention to terminate. If that’s not possible given the Agreement’s expiry date, then it’s easiest to let the Agreement expire and roll-over, and then give the prescribed notice.
Once the termination provisions have been determined, then your O/C Secretary should convene the General Meeting (an AGM if the timing suits or an Extra Ordinary Meeting otherwise) and place a suitably worded Motion on the Agenda. Take care to ensure that any proxies submitted are properly completed in terms of Proprietors giving specific instructions concerning their vote on the Motion to terminate the Agreement.
The above summarises the legal aspects, but the relationship aspects are equally important, and in that regard your O/C should seek proposals from other Strata Managers prior to the General Meeting and put a complementary Motion (to the one to terminate) on the Agenda covering the appointment of its new Strata Manager, and ensure that there’s a hand-over process locked in – because it’s rarely good enough to rely on the professionalism and goodwill of the parties to strictly follow those provisions even though they too are provided for in the Agreement!
Hi,
looking to do the same – move strata managers.
However we do have a lot of issues to address still.
Does anyone have a list of points to look out for, looking for a good strata management company?
See the previous post (#2) re points to look out for, and try the sponsors of this forum – there’s a link at the top of the page and you’ll find two Strata Management businesses there providing somewhat different types of services.
Whatever you do it’s good to remember that it’s the responsibility of all Owners to manage their Plan via an Owners Corporation, and that a Strata Manager is just there to provide guidance and administrative support.
The only tip I have is:
When dismissing your current agent, try and do everything according to the SSMA 1996. Make sure all of the procedures for general meetings are followed as close as possible as many strata managers will do whatever it takes not to be dismissed. In other words they will do their best to find a technicality, and use that to ensure that they aren’t dismissed and hence gather more fees and charges over time.
Stevecro et al – I’m sorry but how is anything that you’ve posted different from what’s already been said? Maybe I’m just becoming older and crankier, but people here sometimes post replies just for the sake of doing so, without adding any value to the discussion and simply push the post containing the original query further down the page!
Maybe I shouldn’t jump on you as some of your posts have added real value, but to all here I say please don’t reply by going over old ground or by simply agreeing with someone else.
Two elements to this – dismissing your current SM the right way, and finding the most suitable replacement. The first element has been covered in the discussion to date. But choosing the right SM is much tougher. A word of mouth recommendation seems to be the easiest way to go, but I can’t remember the last time someone told me that they have a great SM. Here are my thoughts on how to choose a new SM.
1. Assess why you are unhappy with your current SM. Is it responsiveness? Cost? Competence? Are you 100% certain that there is no way these issues can be resolved with the current SM? If the current SM is a lost cause, then you want your new SM to be strong in the areas that are currently deficient.
2. Determine how hands-on the owners will be. How much do you want to outsource to your SM?
3. Are there any features the owners need, eg, online lodgement of issues, a variety of levy payment methods, access to an online portal? Do you have a lot of defects? Problems with by-law violations?
Having come up with a shopping list of needs, try to come up with a list of possible SMs. My own feeling is that the SM needs to have a local presence (ie, managing other properties in the area). Talk to the other owners – see if they know of any good SMs. You’ll probably spend a fair bit of time Googling and looking at websites. Review websites are worth a look (eg, productreview.com.au) but bear in mind that reviews will be very skewed to the negative (ie, people who have had a recent bad experience with their current SM and want to vent). Having sad that, our current (poor) SM is listed and the feedback is pretty accurate.
Next step is to contact your shortlist of possible SMs and ask them for a written proposal. Explain your current situation, why you want to change SMs, and your special needs (ie, shopping list). Ask them for details of properties they manage in your area. Get a copy of their proposed agreement. And cost, of course. Many SMs have a variety of packages at different costs.
Once the owners have assessed and ranked the proposals, get a couple of SMs to come out to the property to talk to the owners. Ensure they bring the person who will be the actual strata manager for your property, not just the principal. Think about some specific scenarios, eg, “resident X is constantly parking in a visitor spot”. Get them to explain how they would deal with this, how long the various steps take, and how much of this work would be covered by the standard monthly fee.
Finally, ensure that the SM choice is a group decision – not just the Chairman or EC’s favourite. And don’t dismiss your current SM until you have chosen the new one.
(Whale said …… now that’s what I’m talking about!!)
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