We have received some questions about setting up a new strata management company. These have been answered by Jan Browne, Whittles Strata Partners.
Question: Our new strata management company has claimed administration fees from the two months before they took over. Is this usual practice?
Our Body Corporate voted to change strata management companies in December 2018. They also voted to change the payment periods for fees.
We had already paid fees to the previous management up to and including November 2018.
The new strata management company has claimed administration fees from beginning October 2018 (for a period two months before they took over).
We are happy to change the payment periods – but not to pay for the extra 2 months.
Is this usual practice?
Answer: This will depend on what is in the contract.
This will depend on what is in the contract.
There may be an agreement that the manager charge an additional 2 months fee in lieu of set up fees. The minutes of the general meeting should note a commencement date.
As the owner the person can also request a copy of the agreement.
If the charges are for backdated levies, then if that is the resolution of the meeting it would be binding.
This post appears in Strata News #235.
Question: We are looking to test the market for a new Strata Management company. Can you send me a template or some information the committee could use to put a set of specifications together?
I have been receiving your emails and have been finding them very helpful and informative.
I have been elected as the chairperson of our Executive Committee to our complex located in Greenway, ACT.
It’s time to go out to test the market for a new Strata Management company. I was told by our present strata management people that they can’t really help as they will be quoting for the job. They are a good company but we have run out of extension.
Can you send me a template or some information the committee could use to put a set of specifications together?
Answer: Template Supplied. If you’re happy with the current agent, just ask for a new contract. It’s sometimes hard to find a compatible agent to the units plan.
Can I suggest that the Executive Committee start testing the market for a new strata management company by looking at the Agency Agreement? This will list standard duties and extras. The Executive Committee could develop a scope from that. But I would advise them not to make it too onerous as this could deter the management company from addressing. I’d suggest keeping it to key points.
Most agents will have similar duties in their proposals so will allow the Executive Committee to hone in on their most pertinent duties and expectations. If you’re happy with the current agent, just ask for a new contract. It’s sometimes hard to find a compatible agent to the units plan.
Template to send out:
Dear [Strata Management Company]
I am the Chairperson of Units Plan [Name of Building] [Address] and we are seeking the services of a suitably qualified company to provide strata management services.
Please find attached: a scope of services expected with the contract.
We are a [Class A OR B] Complex with [Number of] units.
Our contract with our current agents finishes on [Date].
Please respond to here [email address] by the closing date [Date].
This post appears in Strata News #227.
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This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.