Thinking about Changing Strata Managers?
Changing your strata manager doesn’t have to be as daunting as it might initially seem, the process should not be difficult if you are prepared, informed and follow the right steps.
Simply follow our Step by Step Guide on How to Change Strata Managers. The information below will guide you in hopes of making the switch easier.
What You Should Know Before Switching
Western Australia does not currently regulate the strata industry with licensing, which means the services offered by strata management companies, and the quality of those services, can vary wildly.
The legislative amendments that were proclaimed on 01 May 2020 list education requirements to be met in accordance with the Strata Titles Act 1985, as amended 2018 within 4 years of proclamation.
It’s important to meet with the Strata Management company you are considering appointing to fully understand the services they offer before engaging them as your managers.
You may want to consider if they are meeting all the new requirements; compliant contracts, education requirements, professional identity insurance, disclosing remuneration and benefits, along with procedures to ensure effective management of one of your largest assets.
Many successful strata schemes often depend on the areas of expertise and proper judgement of an experienced Strata Management company to assist with managing the legislative requirements.
So knowing that you are liaising with a compliant Strata Management company will reassure you that they are well prepared and should be able to assist in managing your schemes requirements.
Here a some simple steps to consider when changing strata management companies:
Step 1: Raise your concerns to the Strata Council
You can do this by calling a meeting of the Strata Council (if you are a member), or emailing them your current concerns.
At the Strata Council meeting all concerns can be discussed in depth and move a simple majority to seek quotations to change Strata Managers.
Please note that it is important to consider your current management contract, the length, expiration date, termination clauses, how much notice is required, and how the notice is to be provided.
Recent amendments have given all Strata Management Companies the unique opportunity to change managers. The Act stipulates certain requirements that are to be met by the new contact, which means your current managers have until the 01 November 2020 to ensure your satisfaction or you may be able to leave, if you no new contracts have been signed since 01 May 2020.
Step 2: Explore your options
Upon agreement to seek quotations for alternative management, you should discuss your needs with an approachable experienced, Strata Management company.
Many Strata Management Companies who are members with SCAWA will happily visit your building, and provide a detailed quote to meet your requirements.
Step 3: Call a meeting
Once the Strata Council have elected a new Strata Management company, the Strata Council will need to review the recent General Meeting Minute to determine if they have been given authority to enter into contracts on behalf of the Strata Company.
If the Strata Council already has the authority they can arrange for the new management contract to be signed.
If the Strata Council does not have the authority to make decisions and enter into contracts an Extraordinary General Meeting (EGM) will need to be called in order to pass an ordinary resolution that the Strata Council have the authority from time to time to enter into contracts. The Strata Council have the authority to call a EGM and the notice will have to be given to all owners.
Step 4: Appoint your new Strata Manager
You will need to provide your current manager with notice, as per your current management contract. Once a date has been set for termination, the Strata Council can sign your new Strata Management Contract and provide the date of termination, current Strata Managers email, a copy of the completed new contract to your newly appointed Strata Manager.
Your new Strata Manager will then begin liaising with your current manager.
Step 5: Handover
Your new Strata Manager will set a date and time to go collect the Strata Company records. When collecting your Strata Company records your new Strata Manager will check that everything is supplied, Financials, Strata Roll, Common Seal, Archives (if applicable) etc, this will enable ease of transfer.
Once the records are collected your new Strata Manager will need a couple of days to set up your company on their system, and complete your financial opening balances.
Many Strata Management companies will send a welcome letter to advise all owners that they are the newly elected Strata Management Company and details on how each owner can access the owner portal.
If you are unhappy with your current Strata Management company and looking to make a switch, we can help.