Changing Strata Management
Are you a member of a strata committee that dissatisfied with your current strata manager? You can propose that you change your strata management. A good strata manager is supposed to communicate with the committee, owners and tenants, deal with maintenance issues and enforce the rules set by the strata committee. If they are falling short of your expectations, below are simple steps you can follow when you are changing strata management companies.
1. Make the proposal and check the existing agreement:
The first step to change strata management in Sydney is to make a proposal to that effect. In this document you can put down the reasons why you feel that the strata manager should be changed. Do your research on what their roles are supposed to be and how you feel they aren’t meeting expectations.
Check the existing agreement for strata titles, owner’s corporation legislation and any rules that are relevant to changing strata management. Also check for the notice requirement period and if there are any procedures that need to be followed prior to changing strata management.
2. Get strata committee agreement and find new management:
Call a meeting and discuss the possible replacement of the current strata manager. The voting regulations and quorum must be met, and any regulations must be followed for the resolution to be passed. The resolution must be recorded in the minutes. You can then start your due diligence for the new strata manager.
A subcommittee can be set up that is responsible for this task. They must be given enough time to conduct their research, get quotes and conduct meetings with all the candidates. They can present their findings and give recommendations at another meeting. This gives other committee members a chance to also provide input.
3. Call a General Meeting and confirm the change:
In accordance with the Strata Act, you will need to hold a general meeting so that the new management can be approved by majority. When preparing to hold the general meeting provide the owners with as much information as possible. Give the owners enough time to understand the reasons for changing strata management.
As with the committee meeting, due process must be followed for the resolution to be binding. If proper procedure is not followed, then you may face challenges at a later stage. Documenting the meeting and any resolutions must be included in the minutes of the meeting. Once a majority approval is received, the strata committee can prepare for the transition period.
4. Hand over to the new strata management team:
Engage the new strata manager and ensure that they have all the relevant records and have been received from the previous strata manager. You will need to hold a general meeting with the new strata manager to discuss rules, tasks, reporting requirements and other details.