The most prevalent question you must have is how to change strata management companies. Changing strata management companies involves many considerations, conversations, and processes. Even more important is choosing a professional and competent strata management company that won’t cause you the same problems as the last one. So, how to change strata management companies? This is our comprehensive guide to what is strata management and how to implement change in a strata setting.
These are the primary areas of consideration that strata management Committees should duly consider. Let’s discuss each point about how to change strata management companies in detail.
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 strata management matters.
Most owners corporations in Victoria will engage and employ the services of a professional strata management company. The appointment (and termination) of the strata management company is solely and 100% the choice and decision of the owners corporation.
When it comes to answering “How to Change Strata Management Companies?” – importance must be placed on the majority. Owners corporations are like democracy in that it is the majority who makes the decision.
If there is a strata management Committee then, typically, the decision to change strata 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 strata management companies will be that of the majority of the strata title lot owners.
In Victoria, changing your strata manager or strata management companies require owners and Committees to consider the following facets of strata law and legislation:
It is important to remember that there are effectively two things that require how to change strata management companies and are seeking management services:
Each building is different and each building will have its own set of priorities and needs. As a high-level example, older buildings will require a lot more attention with regard to maintenance plans, raising maintenance funds, and addressing issues before they get worse or become safety issues. Whereas newer buildings, the overarching priority for owners, Committees, and strata 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 from their strata manager. This requires consideration and mapping out.
In Victoria, there are over 90,000 owners corporations – comprising over 1,000,000 strata title lot owners.
In terms of strata management companies in Victoria, there are over 1,300 strata managers. These range from established strata management companies (large to small) to real estate agencies managing owners corporations, and right through to the one-man operators who have been doing it for 5 minutes.
Going through a proper tender process and carefully choosing your new strata management company are important in equal measure. Lastly, at Strata Management Consultants Melbourne we specialise in, not only guiding Committees on how to change strata management companies but have also carefully vetted every management company we work with.