Question: What can we do when our Strata Manager is incompetent? Can we get our management fees back?
We are unhappy with the service provided by our current strata management company.
We are trying to convert to Community Title which has been delayed by 12 months. When have been told that the delay is due to the Strata Manager neglecting to submit a Lodgement Form. Can we as a corporation get compensated for the inept management?
We have also had 5 scheduled AGM’s which have all been cancelled by the Strata Manager. Can we get our management fees back?
Answer: This really comes down to what is in your Management Agreement.
This really comes down to what is in your Management Agreement with the current Strata Company representing you. The Strata Titles Act states in Section 27B that a contract must be in writing and sets out the functions or powers to be delegated. Horner Management use the Management Agreement which is written by the Strata Community Association (SCA) and it also has a section, ‘Termination of the Managers appointment’ if they fail to carry out the duties listed in the agreement. You would need to refer to your contract to see if there is any statement in there about refunding fees if they have not performed, however, this is not usually something we see.
In relation to your Annual General Meeting being cancelled 5 times, this is something that I would be raising with the Manager of the Company. The Strata Titles Act states that a Strata Corporation must hold at least one meeting every calendar year and no more than 15 months after the last such meeting Section 33(4). While there may have been issues with holding the meeting due to COVID-19 restrictions, your Strata Managers should be looking for ways to work with your Corporation to ensure that you are complying with the Act and holding the necessary meetings. At Horner Management we have used multiple different options to ensure that our clients can still hold their Annual General Meetings, such as online meetings, Zoom and teleconference meetings.
If your Manager is reluctant to hold the Annual General Meeting I would suggest that you as a Corporation call the meeting, which can be called by either the Secretary, the Management Committee (any two members) or one fifth of all unit owners. Your Strata Manager does not need to be there.
This post appears in Strata News #461.
Carrie McInerney
Horner Management
E: carrie@hornermanagement.com.au
P: 08 8234 5777
I have as a Strata unit owner, to agree totally with Gordon’s comments above. It is pointless lodging a complaint with the SCA ($250), as their organisation appears to be non transparent for an owner, but totally supportive of their members-managers- who obviously pay them a fee. Even if you join SCA as an owner, you do not have access to the same information as a manager.
I read the above Question: “Where do we lodge a complaint in South Australia in regards to the behaviour and conduct of our Strata Manager?”
Your site provided ABSOLUTELY no answer or value. I need to complain about a strata manager who refuses to respond to my requests for information.
After reading from your site I have NO more of an idea than I did before.
Sorry, but this has been of absolutely no use to me.
If you do have an answer, I would appreciate it.
Hi David
As Tyson clearly mentions in the article above, you would be best to contact Consumer Business Services.
Dear Nikki,
Thank you for your regular emails.
The following is my comment on your article by Tyson D’Sylva… SA: Q&A How do we Complaint About a Strata Manager in South Australia?
Dear Tyson, You failed to mention the $250 fee that has to be paid when you lodge a complaint with SCA. If SCA was serious about enforcing its Code of Conduct it would make the fee $50 or nil. A hearing at the Magistrate’s Court only costs $142. Suggest unit owners complain to Consumer & Business Affairs or Court. SCA in SA has become little more than an awards function once a year. My business will not join as there is no training or attempt to keep members informed. Take a look at SCA Victoria for a model.
http://vic.strata.community/
Thank you.
Regards,
Gordon Russell
Managing Director