This is what you need to consider.
You were excited about moving into your new apartment but shortly after you begin to notice some problems. Maintenance items have not been addressed, finances are not adding up and you can’t get in contact with your Strata Company Manager. You may need to consider looking for a new strata management company.
Aligning your scheme with the right strata management company can be the difference between, simply running a strata company and running an effective and successful strata company.
Can’t decide whether to work things out or change? It can be hard to know what to look for in a strata manager so here is what you may need to consider.
Check your current agreement
Ask your Strata Manager to provide you with a copy of the current agreement between the strata management company and the Council of the Strata Company.
This may include:
- The contract commencement and expiration date
- Terms under which the agreement can be terminated early
- The form in which notice should be given
- The length of the notice period
- Any additional requirements that are included under the terms of the contract
Decide on a new strata management company
Before giving notice to the outgoing Strata Manager you first need to decide on a new strata management company.
This will likely start with the Council of the Strata Company sending out tenders to local strata management companies. The more information you can provide to the prospective company about what you are wanting from your Strata Manager the better.
Call a meeting of the Council of the Strata Company
A majority agreement of the Council of the Strata Company is required to change strata company managers. It is recommended that the Council of the Strata Company meet to discuss what they are looking for in a strata management company. The Council of the Strata Company should identify if the prospective company not only meets your fiscal needs but aligns with your strata company values.
Ensure a smooth handover
Once notice has been given to the outgoing Strata Manager, including who the incoming strata manager is, they will start the handover process. This means handing over the strata company records.
It recommended a nominated member of the Council of the Strata Company meet with the incoming Strata Company to review the strata company records to give all relevant parties an understanding of the information. Having a clear understanding of the process makes changing strata managers a far smoother affair.
It is also recommended to schedule a meeting with the new incoming Strata Manager to discuss the day-to-day running of the scheme, along with any administrative tasks or reporting requirements.
Wondering how to move across to ESM from another Strata Management Company? Discover a guide here.