An owners corporation in Ivanhoe contacted our office concerned with a lot of things…
We sat down and went through the financial statements as a starting point. The building had about 30 primary lots and 2 owners corporations – meaning there were also 2 sets of financial statements.
Total/actual cost of owners corporation management in Ivanhoe
Sometimes when there are multiple owners corporations, it can be easier for owners corporation managers to hide/spread their costs across different sets of financials.
Our review of the owners corporation fees revealed that the incumbent OC manager was charging close to $30k a year to manage to the OC.
The Committee would also discover that their incumbent owners corporation manager was doing some other unscrupulous things with their money. One example was the hire of equipment, charged back to the OC for an inflated cost…
Changing body corporate management companies
Changing body corporate management companies was an easy decision for the Committee.
We met with the Chair who showed us around the building and gave us all the insights as to the history of some of the issues that the Committee was in the midst of addressing. We took pictures, made notes, and followed the plan of subdivision.
After the tender close date, we sat down again with the Committee and went through the prospective strata management companies, their overview, and their management submissions.
All the strata management options were significantly less expensive
Proving to Committees quality isn’t always easy on the paper – and it’s often not until months after the new owners corporation manager takes over that the Committee sees a tangible difference.
In terms of quantitative comparisons, we presented the Committee with 3 new strata management options. All were significantly less expensive – on paper, in terms of comparing management fees and disbursements.
Thinking About Changing Strata Management Companies?
Take the first step in process of changing body corporate companies by speaking to a Strata Management Consultant at 1300 917 848. We can talk to you through the general parameters, what needs to be considered and how the change process works.
For information about owners corporation living visit https://www.consumer.vic.gov.au/housing/owners-corporations