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Thinking of changing strata management?

By Salina Ng

“Your life does not get better by chance, it gets better by change.”
Jim Rohn – Entrepreneur, Author and Speaker

Is it time to change Strata Management?

The role of your strata manager is to relieve the load of managing your strata scheme. A proactive manager will improve your strata scheme to enable protection and growth of the value of your asset. If you’re not getting the service you think you deserve, it might be time for a change!

How to change your Strata Manager? While the act of changing can seem like a huge task, we will walk you through the step-by-step process to show how easy it can be. There are a few key steps to follow when you and the Council of Owners are thinking of changing strata managers.

Step 1: Management authority term

Obtain a copy of your strata management agreement to check if you are in a contracted term. Some strata managers appoint themselves for up to 5 years and if the initial term runs out, they usually appoint to renew themselves for a further term at the Annual General Meeting. It’s unfortunate but some strata managers charge penalties (i.e. a percentage of the management fee for the term you did not complete) so it's important to check when your term comes up. If your strata manager does want to charge a break fee, ask them to confirm the amount they are requesting to charge and why.

Step 2: Get majority agreeance for change

Call a formal or informal meeting of the strata scheme’s Council of Owners to discuss the problems that are being experienced and to ascertain if a change is warranted. The Council of Owners (or majority of owners) would need to vote to in favour of changing to a new strata manager to proceed any further.

Step 3: Comparison Strata Management quotes

The Council of Owners should seek alternate quotes. When seeking quotes from strata managers in Perth, ensure you are comparing:

  • fees
  • services they are willing to provide as part of their management
  • accessibility, experience and processes they will follow to address issues or concerns
  • service guarantee

It's always best to commit to a minimum term or ensure there is a service guarantee. We always recommend finding a strata manager that allows termination without penalties, and that way both parties always work hard to ensure the service is kept to a high standard.

High quality strata managers are more than happy to visit your strata scheme, answer all your questions and provide a detailed quote and proposal to ensure they meet your needs if you are looking at changing strata management Companies. If your current strata manager is charging contract termination fees, speak to your new Strata Manager that your are loking to change to, as some are willing to pay the break fees to secure your business.


Step 4: Making the change of Strata Manager

Once a majority decision has been made, it is recommended that a formal letter or email, signed by one or two members from the Council of Owners, is issued to your current strata manager to advise them of termination of service. The formal letter or email will advise your current strata manager that the strata scheme has decided to change managers and outline terms of the process and the date of termination of services.


Step 5: Changeover

Once a new strata manager has been appointed, they will handle the full changeover. The new manager will liaise with the outgoing manager to arrange a date for the handover of your strata schemes documents.

As each strata is different, and often the contract terms vary in regards to strata management services, please feel free to give us a call or email us and we can step you through the process. Changing strata managers might sound overwhelming, but it could be one of the best thing your complex does this year.


About the author

Salina Ng has been in the real estate and property industry for over 8 years. As a strata manager at Empire Estate Agents, Salina works closely with the Council of Owners, lot owners and managing agents of the strata complexes she manages in Perth. If you have a new strata development in Perth, Salina can take your strata management development from concept to registration and beyond.

Need more information or advice on how to change your strata management company? We can help with any of your strata management questions? Feel free to call and speak to us. Feel free to call and speak to us at Empire Estate Agents on (08) 9262 0400 or email reception@empireestateagents.com


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