In December 2019, Nicole called into our office due to concerns about questioned financial dealings undertaken by their incumbent OCM.
Some of the reasons for the Committee wanting to discuss changing commercial OC management companies included:
- The incumbent OCM was dealing (for the most part) solely with the one lot owner who had brought them in that management. The Committee and others had questioned where the payment $4,000 by the insurance company for the repair of 3 doors went to.
- There were concerns about the quality and value of the gardening contractor as the Committee had been informed that “he was a good mate of the OCM”.
- The commercial OC and building was very straightforward to manage and the Committee’s view was certainly that a lot of the costs shouldn’t have been where they were.
- The Committee also wanted to start afresh with proper procurement processes implemented for their building / OC.
Qualified Commercial OC Management Companies
Every single OC management company we work with is carefully vetted and scrutinised in terms of their:
- OC experience and relevant qualifications
- Service and service metrics
- Integrity & values
- Dedicated strata software platform, systems, and processes
- On-going knowledge and training
Our expertise and industry knowledge takes the guesswork out of changing management companies.
Changing Owners Corporation Managers (Campbellfield, VIC)
We met with the Committee to understand their concerns with the incumbent OC manager and discuss what they would expect of their new OC manager.
After compiling a RFT with information and specifications particular to their building, we conducted a tender process. We met again with the Committee and helped them to understand all the new OC management proposals in terms of their offerings, qualities, and costs.
The Committee chose a company that was less expensive than their incumbent and we assisted with the appointment process.
COST COMPARISON
OLD OC MANAGEMENT CO. VS NEW OC MANAGEMENT CO.
| Cost Comparison | Previous OC Management Company |
New OC Management Company |
|---|---|---|
| Management Fees | $14,000 | $12,780 |
| Disbursement | $4,686 | $1,420 |
| Software, Work Orders + Misc. | $605 | $969 |
| Other Additional Charges | $1,100 | $250 |
| Total Strata Management Costs | $20,391 | $15,419 |
*OC guidance for all Committees: be careful when it comes to OC management contracts and ‘open-ended, blank cheque’ disbursements sections. Some OC management companies charge for every work order, phone call, email, page of paper, printing, postage, envelope, etc.
The vast majority of OC management companies that we work with – charge a fixed, all-inclusive fee for their disbursement costs. And of these OC management companies, most will waive their disbursement fee if lot owners elect to receive OC notices electronically
We helped the Committee and OC to help save all owners in the commercial owners corporation in Campbellfield (in Melbourne’s North) $4,972 per year on their commercial OCM costs.
Thinking About Changing Strata Management Companies?
Take the first step in process of changing commercial owners corporation management companies by speaking to a Strata Management Consultant at 1300-917-848.
Feel free to also send us an email on office@strataconsultants.com.au.
Meet the Strata Consultants Melbourne team – https://strataconsultants.com.au/our-team
