What is the Process for Changing Body Corporate Management?

What is the Process for Changing Body Corporate Management?

“What is the Process for Changing Body Corporate Management” is a common question asked by strata management Committees. There are a lot of elements when it comes to the process for changing body corporate management, however it needn’t be overwhelming for Committees. At Strata Management Consultants, we are 100% dedicated to guiding and working Committees with the help of our knowledge, assistance and support.

  1. Afford Current Strata Management Company Reasonable Opportunity to Rectify Their Shortcomings.
  2. Speak to the Committee, or the Owners where there is no Committee.
  3. Obtain a Copy of the Current Contract of Appointment.
  4. Identify What the Committee Expects and What the Building Needs.
  5. Prepare Scope or Request for Tender and Choose Very Carefully.

So, for those that are planning on going through this process for the first time, let’s discuss What is the Process for Changing Body Corporate Management.

 

1.  Afford Current Strata Management Company Reasonable Opportunity to Rectify Their Shortcomings.

Unless the current strata management company has fundamentally let you down, we think it’s only fair to give them due notice of their shortcomings and allow them a chance to retain your business.

Having said that if the issues can’t be resolved or the trust and relationship beyond repair, then by all means seriously consider changing strata management companies.

Strata management companies look after one of your largest assets – professional service, the right advice, and sound management are all integral.

 

2. Speak to the Committee, or the Owners where there is no Committee.

Owners corporation operate much like a democracy. The Committee is elected to represent owners and owners corporations. Committees are tasked with making decisions regarding the running of the Committee.

Changing strata management companies will often require a majority of the Committee, or some instances a majority of the owners.

 

3. Obtain a Copy of the Current Contract of Appointment.

It’s always prudent to understand what your current contractual obligations are (if any) to your incumbent strata management company.

The contract of appointment (or management agreement) is good place to start. Ensure that it is the signed company and that it has been properly executed.

We help Committees with general reviews and conversations about the contract of appointment. Should the matter be more complex, or you require further advice, then we can suggest 2 or 3 owners corporation lawyers we have had experience with.

 

4. Identify What the Committee Expects and What the Building Needs.

It is important to remember that there are effectively two things that require and are seeking management services:

  1. The physical building itself;
  2. The body corporate i.e. all the lot owners and the Committee.

Both of these facets will drive and dictate what is needed (or who is needed) to properly and professional strata manage the building and owners corporation (and more often than not, owners).

 

5. Prepare Scope or Request for Tender and Choose Very Carefully.

There’s a marked difference between quotes and tenders. Canvassing your strata options online or by calling around and getting quotes may not necessarily lead to the best outcomes.

Furthermore… a lot of strata management companies will often give you a quote (all too willingly) that has a management fee that looks low however if you were scrutinise their management contract they may contain a lot of hidden and additional charges.

A detailed and properly scoping document or tender request will dictate the terms that you wish to engage the strata management companies on. And it will also box them in as to how they respond and how they price in regards to your building and owners corporation in particular.

 

Owners Corporation Managers Look After Not Only Your Building But More Importantly, Your Money.

Due diligence and choosing carefully is important – 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).

Strata Management Consultants Melbourne specialises in not only advising and guiding Committees on how to change strata management companies but have also carefully vetted every management company we work with.

Find out more about the value of having a Strata Consultant working for you here, or feel free to get in touch on 1300 917 848 or via email at office@strataconsultants.com.au.

What is the Process for Changing Body Corporate Management in Victoria? – Content Copyrighted 2020 by Strata Management Consultants Melbourne.

The contents of this article or website are only intended to provide a general overview of the topics discussed. The author of this article makes no representations as to the accuracy or completeness of any information and the information is not intended to constitute investment, legal or professional advice. You should seek professional advice before acting or relying on any of the content. This article does not contain references to any specific company, organisation or individual, unless expressly specified.
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