There are a range of reasons to switch your strata management provider.
Ace Body Corporate Management understands that clients are conscious of both management fees and manager performance.
A property is a big investment, probably the largest investment you will ever make, and it’s to your detriment if the scheme is poorly managed.
Some of the warning signs may be:
Large levy arrears.
Late or non-existent Annual General Meeting’s.
Holes in sinking or maintenance funds.
Lack of effective communication between the manager and the committee.
If you’re concerned your scheme is being poorly managed, below are 5 easy to follow steps that you can take to part ways with your current strata manager, and switch to a professional management company like Ace.
The most important step (step one), is to find out when your current Contract of Appointment with your current manager expires.
These details will provide you with guidance on when to start planning your own schedule to part ways with your current strata manager. If you aren’t allowing enough time to take all the below necessary steps, it could mean that your Contract of Appointment may roll over; which means that you will be locked in with an underperforming manager for another 12 months.
Changing strata management companies involves many considerations. When you have a majority within the scheme who want to change strata managers, you can start following the below steps
1. Check Your Current Strata Management Agreement
If you haven’t already got a copy of your strata management contract, you will need to obtain one. Ask your current strata manager for a copy of this agreement. Check the exit details of this contract to see what notice period must be followed to leave the agreement and if there are any special considerations.
2. Seek alternative quotes from other Strata Managers
Obtain quotes online from several strata management companies. Make sure that all quotes are sent through to you via email so that you can review the contract terms. Compile a list of functions and prices that each company provides and compare with your current manager. Once you’ve done this review, list and choose your preferred strata manager.
Make sure to check that all strata management companies that you ask to quote are members of Strata Community Association (SCA), the leading industry body for professional strata managers.
Contact your newly nominated strata manager and advise them that you intend to transfer to their management. The new manager can then assist you with the formalities of exiting the current contract.
3. Provide your current strata manager with their formal termination notice as per the terms of the agreement
If you do not give notice to terminate the Contract of Appointment in sufficient time, your Contract of Appointment may automatically roll over for a further 12 months at the expiry date. Make sure that the termination notice falls within the guidelines of your relevant state legislation or Act.
4. Whichever comes first an EGM (SGM) or the AGM, ask for the required motions to be included in the meeting agenda
Owners may submit a motion to be included on the agenda at the next general meeting after the notice to terminate the current manager has been received. For the motion to be passed, a majority of those present at the general meeting need to vote in favour and pass the ordinary resolution.
5. Advise your new Strata Manager of their appointment
The strata committee will need to provide your new strata manager with the information of your existing Manager, from there your new strata manager can organise the final handover and transfer of documents. Generally, your newly appointed manager will handle the rest.
All of the above should be considered in conjunction with the relevant legislation in your region.
Ace is happy to answer any additional questions you may have or provide you with a no obligation free quote which may help you make an informed decision.