If you are considering your options and need some clarity around the process of reviewing your current strata management, we’d like to share some simple steps and advice that will make the change quite a straight forward one.
Who can initiate changing strata managers:
If an owner is on the Strata Committee, they can generally initiate a change of strata managers through calling a Strata Committee Meeting to pass a motion to arrange a General Meeting to vote to change Strata Managers.
If lot owners who are not on the Strata Committee are able to secure 25% of financial owners (based on units of entitlement) to sign the Requisition of EGM to vote to change Strata Manager – they can email the Strata Manager two months prior to issuance of the AGM agenda, along with the required documents (*motion to change strata managers and requisition of EGM to appoint McCormacks Strata Management).
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If you like what you see on McCormacks website, and you are interested in getting in touch for a proposal, simply contact us now.
*We will send you the motion forms prefilled to make things easier to make the change.
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Important considerations when changing strata managers:
- Depth of Experience – Be sure to check the level of experience, including years in the business, and what other strata properties they have managed in the past. Ideally, your strata manager will have experience running similar sized properties to yours, and larger, more complex ones also. Ensure that you obtain recommendations and reviews from existing clients.
- Professional Qualifications – Accredited strata managers, professional accounting and legislative knowledge and guidance around legal issues are critical areas of expertise.
- Communication – First impressions are indicative of how well the new strata management team will communicate, respond to crises, and lead your strata committee towards success.
- Steps towards changing strata managers:
- Review the terms of your existing agency management contract
Your existing agency management contract will contain terms addressing termination procedures and the notice requirement period. It’s important to review these terms and ensure that you give notice as required by the terms before appointing a new strata manager.
Consider when your current management contract will expire , as it can be both complex and costly to get out of a strata management contract if the contract only allows early termination where the manager is in breach of the contract. Most agreements have a three month termination period.
- Conduct Due Diligence and Research
A fundamental step in changing strata managers is the research process. It is recommended to gather facts, comparisons and information illustrating why it is in the owners corporation’s interest to change your current strata management company.
This will formulate your proposal to the other members of the owners corporation and strengthen your recommendation for a new strata manager.
- Call An Owners Corporation Meeting For Agreement
After conducting your research, arrange a meeting with the owners corporation where you can showcase your collated information on a potential new strata manager.
This should then progress into a motion at the owners corporation committee meeting on whether the existing strata manager should be changed.
Legislative requirements and a quorum must also be considered when voting.
- Owners Corporation Agreement – Transitioning To A New Strata Manager
If the majority of owners vote to appoint a new strata manager at the AGM or EGM, you can then proceed to prepare for the transition to the new strata manager and terminate your existing contract.
Before the AGM, the secretary must attach the draft management agreement to the agenda to allow time for the owners to consider the contract terms.
Your new strata manager will provide you with a list of essential documents that must be completed to ensure the transition between strata managers is as smooth as possible.
Make the switch to McCormacks.
We provide the best strata management service, advice and leadership in Sydney.
Our difference is backed by McCormacks’ industry-leading customer performance rating scores – NPS by StrataMax™ – which are five times higher than the Sydney average.
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