How proactive strata management turns struggling properties around: real examples from Melbourne

Sometimes, it feels like OC management companies forget that we’re all working towards the same goal: a better strata industry.  We’d love to see more collaboration and innovative solutions that benefit everyone involved.

Why? Over the years, we’ve sat in front of too many disheartened Committees and Owners who have themselves in tough situations:

• Building defects and no action/plan/support from the OC management company to fix the issues;
• Stuck in lengthy strata / building management / cleaning / embedded network etc. contracts that they were entered into before they had even settled on their properties;
• Terrible or no communication from their OC management company;
• Poor advice or no interest from their OC management company in complex or challenging issues; and
• At least one OCM who disappeared and left the Committee and Owners to pick-up the pieces.

So, here’s some good news showcasing the good work being done by good strata management companies:

Change of strata management for Swanston St, Melbourne

The new strata management company took over in October 2023 and recently reported back to us on some of the progress that they have since made with the property:

• The new strata manager has done between 10-15 site visits to this property since the handover.
• State of property damages internally/externally – arranged for trades to attend to. Maintenance issues noted on site visits, raised cleaning issues with cleaner, and changing contractors (where it was appropriate and better for the OC).
• The strata manager has been working with the commercial lots about an ongoing issue with shop fit-outs and pending insurance claims due to leaks and ceiling collapse.
• Working through internal leaks in properties that had not been previously addressed by the previous strata management company.
• There was an issue with homeless people at the property, and the strata manager contacted the police to attend and intervene. The strata manager has worked to fix garage access weaknesses and also obtain camera footage for recent on-site issues.
• Insurance claims that were paid out but no work was done— the strata manager is trying to access information as well as get an update on where the claims are at. Subsequently, additional insurance claims had to be lodged directly with CHU due to the lack of assistance from the current insurance broker.
• This Committee is notably an active and responsive group, frequently posing numerous inquiries and seeking detailed information. Cara, the strata manager, consistently offers updates and feedback upon request.
• The majority of concerns stemmed from agents/tenants who previously experienced delays or lack of responses regarding issues. As Cara, the strata manager, gradually addresses these past issues with the property, we anticipate a decrease in the frequency of such inquiries. 

Appointment of strata management for new development in Elwood

In January of 2024, we helped the finance company of a property development, which had taken over from the initial developer to appoint a professional strata management company for the OC:

• The appointed strata manager and team members have made over 20 site visits to this property since the handover – also, site visits with current owners/new owners were requested. 
• The strata manager has been working with stakeholders to identify issues with the builder. Trying to work with owners and the builder on mediation relating to defects. Working to address common property defects with the builder has not always been responding.
• Leah, the strata manager, has been actively chasing the builder’s contractors as they have not been attending to fix urgent issues such as: 
  • ongoing meter board issues.
  • gas leaks and gate repairs were not addressed by the builder.
  • major delays with handover keys from the owners caused delays in contractors commencing.
  • move-in and move-out issues with lifts not operating.
  • Security system was a major issue – cameras installed but not operational due to insufficient system.
  • Issues with isolation panels / lights – had to have assessments done to provide the builder with reports of defects.
• Trying to communicate and explain to owners complaining that OC was not managing property due to delays and that issues were stemming from the builder’s inaction.
• Dealing with a major insurance claim due to flooding from council roads – council refusing to assist, owners refusing to lodge claim causing major delays. However, owners are now extremely happy with the outcome and work done by the strata manager

The property owners are now highly satisfied, particularly with Leah, the dedicated strata manager who has diligently addressed all issues. Leah has also effectively mediated between owners/builders regarding individual Lot issues and matters concerning common property. Consequently, the property is gradually achieving a state of stability.