An owners corporation Committee in Highett contacted us to ask about the process for changing strata management companies. It was a relatively new building and they had been left ‘stuck’ with the company appointed by the developer that they didn’t choose.
The Committee’s Concerns
In the words of the Committee: “it had been on their mind for a while now to change owners corporation managers”. The Committee was convening a meeting solely to discuss the management company’s performance. Their primary concerns related:
- A number of outstanding issues with the manager unwilling or unmotivated to do anything about; and
- Not happy with the level of service and advice – especially after months and months of promised improvement that was never delivered on.
The Committee after much reflection and discussion were ready to move forward and there was unanimous support.
From A to B
We help Committees to change owners corporation management companies.
Measuring the quantitative cost savings (old management company vs new management company) is always much easier than demonstrating the qualitative improvements.
On this occasion, the cost savings of changing owners corporation management companies was $651.00 (saving to the OC); not big bickies by any measure.
The Updates from the Committee
In late April 2020, the Committee met with their shortlist of management companies. After a productive Zoom interview, the Committee were comfortable and confident in moving forward with Andrew and his team.
A few months later we touched base with the Committee and asked how they were going, this was the feedback they provided:
“On behalf of our Owners Corporation Committee I would like to thank Strata Consultants and in particular Rus Ilyassov for their work on our behalf. Throughout the process, Rus was unfailingly professional, approachable and responsive. Consistently reassuring and knowledgeable, he stepped us through the process in an easy and painless manner. We are not only happy with the end result, but also the entire process.
Once again, THANK YOU”.
The Update from the New Manager
Earlier this morning, we had our regular managers’ catch-up with Andrew over Zoom. Andrew was also able to give a detailed update as to this Highett OC and what’s been happening in the 6 months since his management company took over.
Here were some of the updates:
- Andrew and his team starts with new owners corporations by reviewing all the contracts and services being provided to the building / owners corporation.
- As part of this process, he uncovered a somewhat dubious ‘building maintenance’ contract for 5 years that charged the OC ~$5,000 per year for supposed ‘maintenance check-up visits’. The invoices were being and paid but there doubts about the necessity for such a service.
- There were a lot repairs and maintenance invoices being sent to the owners corporation (and in the name of the owners corporation) that were not necessarily the responsibility of the owners corporation. The new manager discussed the matter with the Committee and they agreed a process for approving new invoices for works that could potentially relate to private property (vs common property).
- The new manager chosen and appointed the Committee was independent of the builder and the developer. The new manager worked with the Committee and a building consultant was engaged to prepare a building defects (to identify any potential issues before warranty timeframes lapse).
Having a professional, proactive, and diligent strata management company is important for every building / owners corporation in Victoria. Due diligence and process when it comes to changing strata companies is instrumental – here is one example of where things didn’t work out – Don’t Trust a One-man Band with Your Money (or Owners Corporation Management).
Strata Management Consultants specialises in working with Committees on how to change body corporate management companies. Get in touch on 1300 917 848 or via email at email@example.com.
We Helped Highett OC Change Strata Managers and Improve Services – Content Copyrighted 2020 by Strata Management Consultants