“This is how they operate and they get away with it.”
This was one of the first remarks we heard from a lot owner in Chelsea who reached out to us, deeply concerned about how their building was being managed. With no active Committee in place, owners had little visibility over decisions, and complaints about slow communication, unclear fees, and unresolved issues were steadily increasing.
The problem: What we found when we reviewed the building
Once we began assessing the situation, it became clear that the issues extended far beyond slow communication. With no active Committee in place, the manager had been operating with almost no accountability, and several major concerns emerged.
Excessive charges and restricted access to essential records
One of the earliest red flags surfaced when Sandra, one of the lot owners, attempted to obtain basic documents such as AGM minutes, financial statements, and the management agreement. The manager demanded over $160 for access to these records.
This amount was unjustified and far above the regulated fees at the time. Under Consumer Affairs Victoria, the allowable charges were:
- $16.35 for the first financial record
- $7.60 for each additional record requested at the same time
- $43.09 for a full OC register
- Free inspection of records at the manager’s office, including taking photos
When we explained these rights, Sandra’s concerns reflected what many owners feel in similar situations: If the manager was charging well above the regulated fees, what else might be happening behind the scenes?
The excessive charges, combined with repeated delays, shifting requirements, and refusal to provide straightforward access, raised immediate concerns about transparency and whether the manager was operating in compliance with Victorian legislation.
Ongoing maintenance issues without resolution
As we continued reviewing the building’s situation, it became clear that essential maintenance was not being handled in a timely or competent manner. Several issues had been left unresolved for months, despite owners repeatedly raising concerns.
A key example was a switchboard and electrical problem that had been ongoing for over six months. Owners received no clear updates, no action plan, and no explanation for the extended delay. This created both frustration and genuine safety concerns.
Maintenance issues like this are often a sign that a manager is either overwhelmed, unresponsive, or not prioritising the building’s needs.
In this case, it reinforced a broader pattern: Owners were not getting the service they were paying for, and the building was not being managed proactively.
Unexplained or questionable charges
Another major concern was the appearance of significant and poorly documented expenses. One of the most alarming was a charge of $23,725.46 categorised only as “Miscellaneous Repairs/Maintenance.”
There was no clear documentation to explain:
- what work the charge related to
- whether multiple quotes had been obtained
- whether the Owners Corporation had approved the expenditure
- whether the work had even been completed
When we asked the lot owners and the new incoming manager whether there was any record of what this amount covered, the response was uncertain and vague and no supporting paperwork existed to confirm this.
Smaller charges also raised concerns. Owners questioned expenses such as light fittings, as there was no clarity on whether they were quoted, approved, or invoiced correctly.
The lack of transparency, proper documentation, and approval trails further confirmed that the building’s financial management lacked oversight and accountability.
Barriers and delays when requesting information
Each time Sandra or other owners requested important documents, they encountered unnecessary delays, additional forms, new fees, or shifting requirements. Whether they asked for AGM minutes, financial records, or the management contract, the process was far more complicated than it needed to be.
These obstacles made it extremely difficult for owners to understand:
- how their funds were being used
- whether expenses were legitimate
- what agreements were currently in place
- the true state of their Owners Corporation’s affairs
Instead of providing transparency, the manager’s responses created confusion and frustration. For owners who simply wanted clarity, every request felt like a challenge rather than a basic entitlement.
This pattern of obstruction was not only inefficient but also raised questions about why the manager was so reluctant to provide standard documentation.
Communication issues that created uncertainty
Owners consistently described the manager’s communication as slow, inconsistent, and unclear. Questions went unanswered for long periods, updates were vague, and important information was often provided only after repeated follow-ups.
Without an active Committee to oversee the manager, and with no structured communication from the manager themselves, owners were left feeling uninformed about matters that directly affected their homes and financial contributions.
How Strata Management Consultants stepped in
Once the problems are identified and communicated, we brought structure, clarity, and a compliant process to a situation that had become increasingly chaotic.
1. Reviewing the OC’s documentation and management agreement
We began by helping owners obtain the essential records needed to assess their position such as financial statements, AGM minutes, and the signed management agreement.
When the outgoing manager attempted to charge more than $160 for these basic documents, we guided the owners on the correct legal process, including:
- the Consumer Affairs Victoria regulated fees at the time
- their right to free inspection of records
- how to make a compliant request
This allowed owners to access the information they were legally entitled to — without paying unjustified fees.
2. Engaging and informing all owners
Before we became involved, owners had limited visibility and inconsistent communication from their manager. Some were frustrated, others were unsure what their rights were, and there was no active Committee to coordinate decisions.
We helped Sandra communicate clearly with all owners, explain the issues, and build agreement on the need for change. This ensured the OC moved forward as a unified group, not divided or uncertain.
3. Running a compliant Ballot, SGM, and tender process
With majority support established, we handled the formal process required under the Owners Corporations Act, including:
- preparing ballot documents
- issuing SGM notices
- drafting motions for termination and appointment
- ensuring all statutory timelines were met
At the same time, we conducted a competitive tender, reviewing the building’s needs and comparing proposals from reputable, vetted managers. Owners received clear, side-by-side comparisons of capability, service, and cost, which is something they had never had before.
They ultimately selected a new manager who was transparent, responsive, and better aligned with the building’s needs.
4. Supporting owners through a difficult termination
When the OC issued its valid termination notice, the outgoing manager immediately resisted. They attempted to impose “termination fees” that were not properly set out in their own contract. The agreement:
- left the fee amount blank
- referenced a non-existent body (“Owners Corporation of Victoria”)
- did not provide a proper basis for calculating any termination cost
Despite this, the outgoing manager tried to withhold the OC’s records until the alleged fee was paid. We advised the OC that the claimed amount was not enforceable, should not be paid, and that the manager was obligated to release the records without unreasonable delay.
5. Navigating the VCAT dispute and protecting the OC’s position
The outgoing manager escalated the issue to VCAT, seeking more than $2,300 in termination charges.
We supported the OC by:
- preparing documentation
- reviewing the contract terms
- assisting with the Points of Defence
- explaining the process and ensuring owners were confident in their position
The defence made it clear that no termination fee was payable under the contract’s own wording.
6. Ensuring the new manager could take over effectively
The incoming manager repeatedly followed up for records, identified missing information, and uncovered inconsistencies in past financial statements. Throughout this period, we stayed involved to:
- maintain pressure for handover
- provide support to the new manager
- ensure the OC had what it needed to move forward
Eventually, the outgoing manager released the books and records, allowing the building to finally begin operating under competent, transparent management.
The outcome: A clean transition and proper management restored
Despite resistance and a VCAT dispute initiated by the outgoing manager, the Owners Corporation was able to regain full control of its building and move forward with confidence.
With our guidance:
- owners were properly engaged through a compliant ballot
- a transparent tender process allowed them to compare reputable managers and choose the right fit
- the termination was issued correctly, backed by clear documentation
- the improper termination fee of more than $2,300 was challenged at VCAT
- missing records and funds were pursued until handed over
- major financial concerns were uncovered, including an unexplained $23,725.46 maintenance charge with no supporting documentation
By the end of the process, the Owners Corporation had clarity, proper oversight, and a manager who communicated and acted in their best interests. The building finally returned to stable, transparent, and accountable management.
If your building is facing similar issues, we can help
Situations like this are more common than many owners realise. Unreturned calls, unclear fees, delayed maintenance, difficulty accessing records, and a manager who no longer acts in the OC’s best interests are all signs that something needs attention.
Changing managers is possible, but the process can feel overwhelming without guidance. There are ballots, contract reviews, statutory notices, and compliance requirements to navigate, and in some cases, disputes that need to be handled carefully.
Our role is to provide clarity, structure, and support so owners can make informed decisions and regain proper oversight of their building. Whether your OC is small or complex, we help you understand your options and move forward confidently with a manager who is transparent, responsive, and aligned with your building’s needs.
If you would like to discuss your situation, you are welcome to speak with one of our consultants on (03) 9007 2618 or send us a message here.
