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Dear Jimmy,
I am part of an 8 unit strata title complex in Tasmania that is due to hold its first AGM in 2 weeks time, at that meeting we are going to be asked to appoint a manager, at least 3 of the 8 unit owners don’t want this because of the extra cost, is this motion seen as a special resolution and therefore requiring approval of at least 75% of the Body Corporate? is there a detailed list/explanation/ definition of what is a special resolution?
- This topic was modified 2 years, 11 months ago by .
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I’m not terribly au fait with Tasmanian strata law but on the briefest of reading, this is what I think
- Appointment of a strata manager can be done by a simple majority vote.
- the committee can make pretty much all of the decisions for the scheme unless the body corporate votes to limit their decision making power.
- This includes by-laws.
- In the early stages of your scheme, a strata manager might be a good idea. The cost should be about $250-$350 per unit per year (or it would be in Sydney). That’s less than the cost of a TV streaming service for peace of mind while you set yourselves up
- don’t blindly accept the strata manager proposed by the developer.
- don’t sign an initial strata management contract for more than the first year. If they’re any good, you’ll want them to stay on for longer later. If they’re not, you don’t want to be saddled with them for longer than you have to.
- If they say a longer contract is standard practice, and therefore you must sign them up for longer, thank them for their time and point out the exit.
- As far as I can tell, there is no such thing as a special resolution in Tassie strata – just simple majority and unanimous votes.
While you might think a small scheme doesn’t need a strata manager, you are going to have people in there basing their ideas about procedure and right and wrong on what they’ve heard from other states.
Also, in a small scheme, disputes can get very personal very quickly. A strata manager can be the one to cut through misinformed opinionated squabbling with clear, unbiased and legally sound advice.
NB: This is not legal advice – merely an informed opinion.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
The hiring of a strata manager versus self managing is a such a personal choice for each strata. Mostly it depends upon the skills and knowledge of owners and everyone’s willingness to pitch in.
I lived in a 5 unit strata and we decided to self manage. In the end we decided that it was preferable to spend the money that would otherwise be spent on a manager on repairs and improvements on the property.
Professional managers in my experience restrict their contacts to a very narrow range of administrative duties. They will go beyond this but it costs. We decided that we could do the admin stuff ourselves (there are a few very useful resources for this and I am sure Jimmy knows these).
We put our bank accounts on line and arranged that any owner can view the accounts and transactions. We all exchange emails and have discussions that way. A few of us are ok with spreadsheets and drawing up agendas and taking minutes.
Finally as Jimmy rightly points out things can get very personal and a a bit awkward but no more than with a larger strata I think. The main issue is that some are less reluctant to take duties but if something affects their unit they want and expect it done straight away!
The hiring of a strata manager versus self managing is a such a personal choice for each strata. Mostly it depends upon the skills and knowledge of owners and everyone’s willingness to pitch in.
Could not agree more. And that’s probably the first question to ask the other anti-manager owners – do you have the knowledge, time and energy to do the work that the strata manager might otherwise be doing?
That’s why I suggested short-term contracts initially, just so that everybody in the scheme can sort themselves out, chase down defects, amend their by-laws and work out their invoicing and payment and internal communication systems.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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