How to Change Your Strata Manager in NSW

Is your strata manager proactive and responsive? An expert in all aspects of strata living, who communicates with not just the committee, but owners and residents too? If not, you may wish to consider changing your strata management company. Here’s an overview of how to do that in NSW.

The legal process to change strata manager

The Strata Schemes Management Act 2015 (NSW) outlines how to change strata manager within the state. The key points are as follows:

The decision to change strata manager must be made by the owners corporation, not the strata committee.
The decision is made at an annual general meeting or extraordinary general meeting. In most cases a simple majority vote is enough.
Once the new agreement is executed, the outgoing strata manager must be notified. They will then transfer records and authority in good faith.

The strata manager may be changed when the contract comes to an end, or the contract may be terminated. Early termination is either for breach of contract (which you may need to prove) or according to the terms of the contract.

There is, of course, a lot more to consider.

If you’re changing your strata management company, it’s because you want better service. Strong processes for selection of and transfer to the new strata manager make for a great start towards this goal.

Best practice recommendations for how to change strata manager

1. Define current issues and set future expectations

You’re looking to change strata manager because you’re unhappy with performance – but in what way? Is your current manager falling down on every aspect of strata management, or just in some areas? And what would satisfactory performance look like?

Give specific examples of good and bad performance in areas like:

Communication: time to respond to emails or phone messages; clear explanation of decisions and actions
Proactive management: budgets, maintenance plans and preparation for meetings
Follow-through: actioning decisions, chasing contractors, ensuring tasks are completed
Meeting management: timely, clear and complete agendas and minutes
Financial management: quality of budgeting and reporting, payment of contractors, collection of levies, unexpected or unexplained fees
Expertise and compliance: meeting statutory deadlines, keeping up to date with legislative changes, complete and clear records
Staff relationships and customer service: impact of staff turnover and company culture

2. Review existing contracts and documentation carefully

Check details including:

Expiry date
Notice periods required
Any termination rights or fees
Any service standards which may have been breached

This information not only helps you decide the right time to change strata manager, it can also be useful when reviewing contracts with your future strata manager.

3. Select your new strata manager carefully

You may wish to consider several candidates. (We would of course love to be considered!)

Assess possible strata managers against the expectations you have already defined. The following steps are also useful:

Always meet in person, and be sure to meet the person who will be your day-to-day contact. This will help you assess personality and communication style.
Investigate reviews. Ask to speak to committee members from other strata the company manages.
Ask about experience with strata schemes similar to yours. (Location, size, age of buildings etc.)
Clarify fees and inclusions. Fee structures vary from company to company. It can be difficult to estimate the overall cost, which makes comparison more complicated.

Bear in mind that the lowest overall cost is not always the best value for money. A company which estimates a small number of hours to look after your strata may look cheaper, but if there isn’t enough time to manage the workload, then service standards drop. Calls aren’t answered, issues are missed, and so on.

At Strata Master, we offer a flat fee to cover a clearly defined list of services. This gives you certainty about your costs in a ‘business-as-usual’ scenario. We also offer a fee schedule in case additional work is required – for example if a major maintenance project comes up. We aim to balance certainty and flexibility.

Once you have selected a preferred strata manager, review terms and conditions of the contract before making a recommendation to the owners corporation.

4. Hold the general meeting and have the change of strata manager adopted

You will need to follow all the standard procedures and notification periods for this meeting. Your current strata manager may not be happy to organise this meeting and the resolution. They are legally required to act in the interests of the owners corporation, but you may wish to supervise carefully.

5. Prepare for the handover from your current strata manager

It’s a good idea to have a checklist of everything which should be covered in the strata manager handover. This includes:

All strata records and paperwork
Bank authorities
Contracts and contact details for existing suppliers
Access devices and codes, for security gates, strata buildings, CCTV footage etc
Current issues and projects, from maintenance work to legal proceedings

You also need to communicate clearly with all owners and residents in advance of the change. In addition to new contact details, they need to know of any changes to payment processes and information resources such as websites.

We assist clients with all aspects of handover including checklists and communication with your entire strata community. A clean handover of responsibilities is in in everyone’s best interests.

Setting your strata up for success

Everyone involved in your strata will benefit from the support of a good strata manager.

The strata committee have expert support to manage the strata efficiently and in compliance with all laws
Residents enjoy living in well-maintained buildings and grounds
Owners see their assets protected and maintained so value can grow

You want to make the most of your strata. You need an individual and a company who are not only expert but also proactive, who follow through and who communicate with all parties.

If your current strata manager isn’t ticking all the boxes, it’s time to consider alternatives.

For more information about Strata Master, our services and our fees, get in touch at any time.