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FAQs when switching strata managers.

Does the appointment of a strata manager need to take place at a General Meeting or can the Committee decide?

The appointment of a strata managing must take place at a General Meeting. Either your Annual General Meeting or an Extraordinary General Meeting the motion can be included to appoint an alternative strata manager. The Committee would usually put a recommendation forward to the meeting if they have looked at different options and perhaps spoken with strata managing agents.

How many owners need to decide to change?

At the General Meeting where this decision is made of those owners attending (in person or by proxy) and entitled vote it is a simple majority. So only 51% or more. E.g. if 5 owners are attending only 3 need to agree for the motion to be passed.

How do I know if I’m locked into my current management agreement and when it is due to expire?

Your strata manager should provide a copy of your current agreement to you upon request or if they have an online portal for document storage you should be able to obtain one there. If their Agreement is a SCA standard the term and when the agreement started should be shown on the first page.

If we want to call a general meeting ourselves, can we?

Yes, the strata manager acts under delegated authority but the control and power to undertake functions like calling meetings are still yours. The Committee can call for a general meeting and hold it themselves for example and instruct the current strata manager to send the agenda.

What to look for in a new strata manager.

COMMUNICATION : A lot of strata management is simple, if there is clear regular communication from your strata manager then most issues and requests can be dealt with easily.

QUALIFICATIONS : Your strata manager should have professional qualifications, appropriate insurance cover, good knowledge of relevant legislation and experience managing similar schemes to yours.

REFERENCE CHECKS AND REVIEWS : Contacting references and looking at reviews on sites such as Google reviews and Product Reviews will soon tell you how well they are regarded by their clients.

SIZE : Make sure that there is sufficient size to ensure that there will be enough expertise and backup for when people are away or sick but small enough that you can contact someone who has direct responsibility

THE MANAGER : Who will be the person that is dealing with you on the day to day activities? It might not be the person who runs the company or meets with your to discuss so ensure they are qualified and have the required time and expertise.

COST : It can be difficult to obtain an apples-for-apples comparison of costs for strata managing agents as although strata management is highly regulated area and their agency agreement should set out all of the terms and conditions the pricing is not regulated by the government. Below are some areas of pricing that you should consider.

  • MANAGEMENT FEE : The main component of the fee structure which is for the strata managers time, their overheads and the activities that are undertaken as an ‘agreed service’.
  • DISBURSEMENT FEES : This is a term commonly used to cover a number of costs and activities undertaken by a strata managing agent. The most common of which are postage, printing, telephone costs, electronic communication etc.
  • INSURANCE COMMISSION : Widely used in the strata profession insurance commissions are payments received by the strata managing agents from an appointed insurance broker or underwriter when the insurance premium is paid. This income is used as a discount from the management fee in the strata profession.
  • ADDITIONAL FEES : Works that are undertaken outside of the Management Fee (or ‘agreed fee’) and often charged as an hourly rate. For example, additional meetings, site attendance, attendance at Tribunal matters to force compliance with by-laws etc

Flowchart : Changing Strata Managers

Below is a simple flow chart to show what process could be undertaken to call for quotations and for a meeting to be arranged to consider the change of strata manager.

switching strata managers

Motion : Appointment of a Strata Managing Agent

Please find below for your use a motion for the change to appointment of a strata managing agent managers which need to be included on a General Meeting. We can provide you with General Meeting templates, fact sheets on tender documentation, time frames for agenda distribution etc.

Appointment of a Managing Agent

That pursuant to section 49 of the Strata Schemes Management Act 2015 that [number of years]Ltd (herein called “the agent”) be appointed as managing agent of [strata plan no.] for a term of [number of years] from [commencement date] based on the management fee of $[base fee] per annum (GST inclusive);

That the owners corporation delegate to the agent all of the functions of:

(i)    the owners corporation (other than those listed in section 52(2) of the Strata Schemes Management Act 2015); and

(ii)   its chairperson, treasurer, secretary, and executive committee necessary to enable the Agent to carry out the ‘agreed services’ and the ‘additional services’ as defined in and subject to the conditions and limitations in the Agency Agreement.

That the common seal of the owners corporation be affixed pursuant to section 273 of the Strata Schemes Management Act 2015 to the agency agreement tabled at this meeting and signed by two persons nominated by the owners corporation (being owners of lots or members of the executive committee) which incorporates instruments appointing the Agent and delegating all the powers, authorities, duties and functions referred to therein.

Why you should consider Strata Life

Strata Life is an independent strata management company with a focus on individual attention and personalised service.  Both owners actively run the business including directly managing properties. We only answer to ourselves, not shareholders, and take full responsibility for all activity undertaken in our business.

  • The Strata Life approach to management is that your property is not just bricks and mortar. It is a home, a community, a major investment or even your place of business.
  • Our team has extensive experience with properties on the Upper North Shore, Hornsby and the Northern Beaches areas, with excellent local contractors and superior local knowledge.
  • We ensure our managers run portfolios significantly smaller than the industry standard allowing the ability to respond and action items quickly and proactively manage your scheme. We are committed to regular site visits, providing guidance on reducing costs where possible and quickly and effectively manage any disputes amongst residents to avoid unnecessary escalation.
  • Our team consists of hard-working, highly experienced Strata professionals. Our Stata Managers each have in excess of 10 years in the industry
  • We are large enough to ensure we have effective systems in place to ensure your property is compliant in an increasingly more complex litigious world, yet small enough to be able to manage each property according to their individual needs rather than a blanket one size fits all approach.
  • Each Portfolio manager has the back up of a dedicated Strata Assistant who is actively involved in running the properties and is available as a second point of contact for clients. Further to this the Licensee in Charge is familiar with all properties managed and is available for additional support and coverage especially complex situations or attend intricate meetings.
  • We place an emphasis on training, investment in technology and keeping abreast of the regular changes in the industry. Our company is a corporate member of the Strata Community Association (NSW) which is the peak body for the strata sector in New South Wales.

More information about Strata Life

Get in touch

Whether you’re an existing client or not, our strata managers are here to help with all matters relating to strata schemes and community living.  Our office is open Monday – Friday, 8am – 6pm to answer your call or, for after-hours assistance, please complete our online enquiry form and we’ll get back to you the following business day.

Telephone : 02 9456 9965
Email : contact@thestratalife.com.au
Online enquiry form »