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Topic
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Hello,
Do we need to employ a Strata Manager, or can we chose to manage the property ourselves? (Committee and Resident Manager, with possibly help from an accountant)
Alternately, if we chose to change our Strata Manager, can the Committee do this or is it a AGM decision?
How do we select a new Strata Manager? (avoid the white shoe exec presentation where they promise the world)
Thanks,
Ken
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Replies
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Ken – In NSW and so far as I’m aware elsewhere, your Owners Corporation (O/C) certainly can decide to self-manage; ours has done that for 6 years. This needs to be done by way of a resolution passed by a majority vote of those Owners present, both in person and by proxy, at a General Meeting (e.g. an AGM); the Executive Committee cannot make that decision.
Be careful about the timing though, as most Agency Agreements that appoint Strata Managers require the O/C to give six (6) months written notice of termination.
That’s period of notice is not such a bad thing, as it gives the O/C time to locate, select, and appoint people to assist it to undertake some functions such as accounting, and time for the current Strata Manager to collate all your Plan’s records in preparation for a hand-over of those to the O/C.
Your O/C could self-manage with the assistance of a business that provides the basic “tools” and some telephone support – I’ve provided links to two of those HERE and HERE.
Your O/C could also contact a company who provides various levels of assistance, such as a basic record keeping, levy collection, and invoice payment style Agreement that leaves day-to-day activities with the E/C. One of those businesses is a sponsor of this Forum and there’s a link to them at the top of this page, or HERE if you wish.
One final word of caution…there is the potential for the roles of your Resident Manager (classified as a Caretaker under NSW Legislation) to overlap with the roles of whoever your O/C chooses to provide support. That’s why your O/C needs to have a formal agreement with its Caretaker, and in NSW that’s outlined in Clauses 40A, 40B, and 40C of the Strata Schemes Management Act (1996).
Ken said:
Do we need to employ a Strata Manager, or can we chose to manage the property ourselves? (Committee and Resident Manager, with possibly help from an accountant)
Notwithstanding the excellent advice from Whale (below) just to clarify, you could be in a spot of bother if your resident caretaker is seen to be earning money by carrying out strata management duties without having the correct licence.
How do we select a new Strata Manager? (avoid the white shoe exec presentation where they promise the world)
Obviously, I would recommend talking to our sponsors Strata Choice but there are other excellent (and not so excellent strata firms around). Often the best way is to match the size of the firm with the size of the strata scheme. There’s danger in hiring a huge strata management firm for a tiny block and vice versa.
But whoever you choose, make sure you meet the strata manager who will be handling your account, rather than the principals of the firm whom you might never see again (regardless of their shoe colour).
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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