As Australia’s housing crisis grows, high-density living has become a necessity, but concerns about hidden costs, unethical practices, and conflicts of interest within the strata industry have surfaced. The recent Four Corners investigation raised several issues that strata owners and committees should be aware of. At ESM Strata, we believe in proactive transparency and ethical conduct, ensuring that our clients understand how we operate and the value we bring to their strata companies.
Do We Receive a Commission from Insurance Companies?
Yes, ESM Strata, as Distributors/Authorised Representatives of Insurance Underwriters, receives a commission from aligned insurance companies. This commission is fully disclosed:
- On our management agreements
- Within all insurance policy documentation
- To each owner annually in the AGM documentation
Transparency is at the heart of what we do. Unlike some companies that may not fully disclose these commissions, we ensure all stakeholders are aware of any associated fees or commissions.
What Do We Do for This Commission?
Being an Authorised Representative or Distributor means that ESM Strata is not just collecting commissions without justification. Our team is required to undergo continuous training to stay updated with the latest insurance practices and provide your strata company with comprehensive general advice. This commission supports:
- Regular staff training so we can deliver up-to-date, quality advice.
- Coordinating with insurers by submitting claims, ensuring policies remain current, and handling all necessary documentation.
- Liaising directly with insurance companies to resolve claims quickly and efficiently, so you don’t have to worry about managing this yourself.
This is a far cry from the accusations of “phantom fees” or kickbacks. At ESM Strata, we are fully transparent about the services we offer and the commissions we receive for them.
Can You Opt-Out of Using Our Insurance Services?
Yes, absolutely. Owners always have the option to engage a different provider for their insurance needs. However, if the strata company chooses another provider, there may be fees associated with using that alternative service. ESM Strata respects the autonomy of owners in deciding what’s best for their property, but we are here to offer expertise and streamlined services when needed.
Clarifying Allegations of Overcharging and Non-Existent Debts
The video alleges that some strata companies overcharge for minor or non-existent debts. At ESM Strata, we adhere to strict financial management practices. Any charges you incur are clear, justified, and communicated in a timely manner. Our transparent billing process ensures there are no hidden or unnecessary charges, and we are always available to answer questions regarding your account.
We understand the frustration that comes with unexpected or unjustified costs, which is why we work to ensure that our billing is fair, accurate, and fully supported by documentation.
Addressing Conflicts of Interest
Conflicts of interest, particularly between strata managers and developers, were a major point of concern in the investigation. At ESM Strata, we prioritise the needs of owners and their properties. While we may work with developers initially when buildings are completed, our long-term focus is on the best interests of the strata company and its owners. We maintain a clear separation between developers and owners to avoid any conflicts that could compromise the quality of service you receive.
ESM Strata’s Commitment to Ethical Practice
At ESM Strata, we operate with transparency and integrity. Our focus is on providing the highest level of service to strata owners across Western Australia. From insurance commissions to fee transparency, we ensure that you are always fully informed and empowered as an owner or committee member.
If you have any concerns or questions about strata management or your current services, please don’t hesitate to reach out. We are committed to being a trusted partner in your strata journey.
