In early May 2020, the Chair of an owners corporation of 50 lots in Essendon called into our office. Their owners corporation manager had pulled the ‘your insurance expires tomorrow and you must approve this renewal that we sourced’…
It happens a lot – and it’s definitely not the right way to do things.
The Committee’s Other Concerns
Whilst that was concerning, there were many other things that the Committee had been putting up with:
- A lack of communications;
- Slow to take any action;
- Being assigned at least 5 different managers by strata management company over a period of less than 3 years;
- Manager was appointed by the builder/developer, which caused mistrust amongst some owners; and
- The manager spent ~$8,000 of the owners corporation’s money on a building defects report.
We met with the Committee via zoom to better understand the Committee, the owners corporation, the building, and delve into the other issues.
Other Strata Management Options
A few weeks after that phone call from the Chairperson, we were ‘sitting down’ (via zoom) and going through the new strata management proposals.
All the new strata management options were cheaper than the incumbent and they were independent of the builder/developer.
We explained to the Committee the fees, charges, inclusions, and exclusions of each of the strata management companies. We answered questions and discussed next steps.
Strata Management Due Diligence
The Committee then, after having read the documents, came back to us with a shortlist for interviews.
They interviewed and selected one of the strata management companies that we had invited to tender. The basis was that they were thoroughly professional, spoke to the issues
at hand, didn’t take any insurance commissions (which has its benefits), and were well versed with tackling building defect issues.
On top of which – the new strata management company that the Committee chose was also $1,553 per year less expensive than their incumbent strata management company.
The Updates from the Committee
A few months after that initial phone call from the Chairperson, we touched based with the Committee. The new manager was helping the Committee work through the issues (including the building defects). The Committee’s feedback was that the service and proactivity was streaks ahead – their exact words being “very, very positive experience” (with the new manager).
The Committee was also kind enough to provide this testimonial for us:
“Strata Management Consultants Melbourne were flawless to deal with. We needed to find a new OC for our building and reached out to Strata Management Consultants Melbourne and they were exceptional from the word go. Justin was always thorough, well researched and met the required brief. Not only did he get us what we needed, he was efficient in doing so and was always happy to answer any queries.
I would recommend this business without any hesitation.”
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 Essendon Owners Corporation Change to Proactive Strata Manager – Content Copyrighted 2020 by Strata Management Consultants ™