How to change owners corporation managers? Committees need to understand that the owners corporation management landscape in Victoria is vast and there are sadly too many unscrupulous operators out there.
- At the end of the day it’s your building and it’s your owners corporation
- Understand where the majority stands when it comes to changing
- Consider owners corporation management contract and owners corporation legislation
- Understand your owners corporation management expectations
- Finding and appointing a reliable and proactive manager
Following these five (5) key areas and properly understand what to do in each of these areas will ensure that owners corporations are informed when it comes to “how to change owners corporation managers?”. Let’s run through each area in detail.
1. At the end of the day it’s your building and it’s your owners corporation
A owners corporation is made up of Lot Owners who each, whilst owning their own individual strata title lot, are members of the owners corporation. The member of the owners corporation are like shareholders in a company and may elect a management Committee to overview owners corporation management matters.
Most owners corporations in Victoria will engage and employ the services of a professional owners corporation management company. The appointment (and termination) of the owners corporation management company is solely and 100% the choice and decision of the owners corporation owners.
2. Understand where the majority stands when it comes to changing
When it comes to answering “How to Change Owners Corporation Managers?” – importance must be placed on the majority. Owners corporations are like a democracy in that it is the majority who makes the decision.
If there is a owners corporation management Committee then, typically, the decision to change owners corporation management companies will be that of the majority of the Committee [pending a number of other factors].
If the owners corporation hasn’t elected a management Committee then, typically, the decision to change owners corporation management companies will be that of the majority of the strata title lot owners.
3. Consider owners corporation management contract and legislation
In Victoria, changing owners corporation management companies requires owners and Committees to consider the following facets of strata law and legislation:
- Contract law – what does the last signed owners corporation management contract binding the owners corporation to the owners corporation management company say? What are the terms and conditions? i.e. if the owners corporation management were to be changed another services provider.
- Statute law – the primary piece of legislation governing owners corporations and owners corporation management in Victoria is the Owners Corporation Act 2006. However also worthwhile understanding these amendments and updates to OC Act 2006 that may be relevant.
- Common law – owners corporation matters and disputes are resolved through the Victorian Civil & Administrative Tribunal (VCAT). Matters and disputes revolving around the termination, sacking, changing, and exit of owners corporation management services can sometimes be presided and decided by a VCAT Member. As such there are numerous VCAT cases and legal precedents that may relevant to you when it comes to changing owners corporation management services.
4. Understand your owners corporation management expectations
It is important to remember that there are effectively two things that require and are seeking management services:
- The physical building itself;
- The owners corporation i.e. all the lot owners and the Committee.
Each building is different and each building will its own set of priorities and needs. As a high level example, older buildings will require a lot more attention with regards to maintenance plans, raising maintenance funds, and addressing issues before they get worse or become a safety issue. Where as newer buildings, the overarching priority for owners, Committees, and owners corporation managers should be about building defects (in Victoria you have six years to make a claim for structural defects and two six years for non-structural).
Owners and Committees are also going to have different demands of their owners corporation manager. This requires consideration and mapping out.
5. Finding and appointing a reliable and proactive manager
In Victoria, there are over 90,000 owners corporations – comprising of over 1,000,000 strata title lot owners.
In terms of owners corporation management companies in Victoria, there are over 1,300 owners corporation managers. These range from established owners corporation management companies (large to small), real estate agency managing owners corporations, and right through to the one-man operators who have been doing it for 5 minutes.
Owners corporation managers look after not only your owners corporation but also your money.
Going through a proper tender process and carefully choosing your new owners corporation management company are important in equal measure – have a read of this article for one example of where did things didn’t go right – Don’t Trust a One-man Band with Your Money (or Owners Corporation Management).
Lastly, at Strata Management Consultants Melbourne we specialise in, not only guiding Committees on how to change owners corporation management companies, but have also carefully vetted every management company we work with.
How to Change Owners Corporation Managers? – Content Copyrighted 2020 by Strata Management Consultants