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