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Essentials

How to change Strata Management Companies

By July 27, 2019April 29th, 2022No Comments

We understand the idea of changing Strata Management Companies can seem a bit daunting. Whilst there are contractual processes you must follow, the team here at ESM Strata can guide you through this and make it as straightforward and pain-free as possible!

How do I change Strata Management Companies?

The process of changing Strata Management Companies is fairly straightforward and can be simplified into the following steps:

  • Check your current contractual obligations and performance contingencies
  • Provide a letter of notice to your current Strata Manager
  • Choose a new Strata Management Company (all council members must be in agreement)
  • Provide a ‘Termination of Strata Management Services Notice’
  • Define a handover date and sign your new contract
  • Your new Strata Manager will then complete the handover with your existing Strata Management Company without requiring any further action from you.

If you are considering moving your Strata Company to ESM Strata, your new ESM Strata Manager will help you navigate the change and action every step of the process.

A step-by-step guide to changing Strata Management Companies on your own*:

  1. Before considering a move to another Strata Management Company, it’s important to make sure you are aware of any pre-existing contractual obligations that your Strata Company has made.
    • The Strata Management Contract termination or expiry date
      • There may be grounds for early termination if you believe the terms of the contract are not being upheld. Feel like this is the case with your current strata services? Click here for more guidance on when you should change Strata Management Companies.
    • Strata Management Letter of Notice
      • There may be a condition in your contract requiring you serve notice to the current manager before termination can proceed
  2. Request a submission from ESM Strata or another Strata Management Company.
    • At ESM, we offer a free meet and greet, whereby our Strata Management Specialists will get to know your requirements and tailor a solution to your particular strata scheme’s needs. Your potential new Strata Manager will then come present a proposal for your complex and walk you through the many ways in which ESM works tirelessly to prioritise trust and alignment with our clients and partners.
      • The more information you provide us, the more accurate and informative this will be.
    • Council members must then review the quote and make a joint decision as to how your strata will proceed
  3. Accept a quote for new Strata Management
    • Choose a handover date
    • Two Council members must sign a contract with your new Strata Management Company
    • You may also need to provide a Letter of Appointment
      • ESM Strata can provide you with a draft Letter of Appointment
  4. Serve a Termination of Strata Management Services Notice to your current Strata Management Company
    • This begins a handover process between your existing Strata Management Company and your new one
      • ESM Strata can provide you with a complying draft Termination Notice
  5. Your new Strata Management Company will begin the hand over process, working towards your hand over date.
    • This involves liaising with the current Strata Manager, receiving all records, entering data, reviewing current issues and producing a report for the strata Council ‘as at date of handover’
  6. On your chosen handover date, your new Strata Management Company should advise all owners letting them know they have taken over.
    • At ESM, we send a welcome pack to all owners introducing their new Strata Manager and outlining our processes. We also arrange a meeting with the Council to resolve any outstanding issues.

*Please note, this process is written for Council of the Strata Company members. If you are not on your Council, you will need to discuss a change in Strata Management Companies with them. 

The handover process is very straight forward and involves very little involvement from you, the council member.

You can usually rely on the professionalism and efficiency of both Strata Management Company parties to ensure the process is as seamless as possible.

Get in touch with us today if you have any more questions about this process.