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  • #11969
    Ethicsfirst
    Flatchatter

      The agenda for our recent AGM was prepared and distributed by the strata manager. It included an item/motion which was worded specifically to re-appoint the existing strata manager. The meeting re-appointed the strata manager. Would probity require the motion to be couched in terms of appointing a strata manager without nominating a particular manager? Is the resolution valid given that the motion was not proposed by an owner?

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    • #30582
      Bunyip1
      Flatchatter

        Hi Ethicsfirst,

        I think that it is standard practice that the Strata Manager puts forward a contract for renewal of their services at an AGM. It is up to the Owner’s Committee to decide whether they will retain the services of the incumbent strata manager. The strata manager cannot vote for the renewal of their contract. Like politics the government cannot vote themselves back in but can nominate themselves for re-election.

        #30626
        Seek
        Flatchatter

          How to go about determining whether the proposed strata management fee is reasonable?

          Is the strata management fee dependent on the size of the apartment block?

          Is there any source for comparison for the strata manager fees? 

          #30644
          spmanager
          Flatchatter

            There is no set rate for Strata Management. Basically its an open market. Each strata management company decides what they want to charge in fees. The owners decide if they accept the fees or not. The thing to do is to seek management proposals from other companies. That way you can compare fees. Just make sure you take into account, size of company (do they have the ability in house to manage your property?) or would they outsource a lot which adds to costs.

            Even though there is no agreement between strata managers as to standard fees. We all lose and pick up properties from other management companies so there is a general feel as to what is being charged. So its not absolutely random amounts.

            Also you need to take into account is there anything about your property that may demand extra and more demanding work.

            #30646
            Jimmy-T
            Keymaster

              As a general rule, buildings that have a lot of interaction with their strata managers should look for an all-inclusive fee.

              Buildings that rarely contact the SM might be better off paying a lower up-front fee while hoping their Schedule B charges – for everything from reading letters to making phone calls – don’t get out of control

              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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