How to Change Strata Management Company

A strata management company keeps financial accounts, advises on asset management, arrange property maintenance, collect and bank levies and conduct meetings on behalf of the owner’s corporations.

However, if the strata management company does not do their job or breaches the contract, the council of owner’s can change the company. 

Also read: What is Strata Management in Real Estate?

Here is how to change a strata management company: 

1. Decide on a New Strata Management Company 

• Once you decide to change your strata management company, you can now choose a new strata management company. The Council of Owners can, meet to decide on a new company. 
• The Council of Owners can send out invitations to prospective Strata Managers to quote. They will get pricing from local strata management companies. Once the Council of Owners chooses a potential company, they must terminate the existing agreement correctly. 

You might also like: Strata Management Fee in Perth

2. Check the Current Agreement 

• Check the contract between the owner’s corporations and strata management company. 
• If the strata management does not breach the terms of the contract, then the owners corporation cannot terminate the contract before its expiration date. They need to follow the terms of the contract to avoid a lawsuit. 
• If you, however, want to terminate the contract before the expiration date, then you need to seek legal advice. 

3. The Owners Corporation Must Meet 

• A majority of the owners corporation must agree to change their strata management company. Therefore, they must meet to decide whether to change their strata management company. 
• If the owners corporation wants to terminate the contract due to breach, they do not have to wait until AGM to terminate the contract. They can call an Extraordinary General Meeting (EGM). 

4. Sign the Paperwork

• Once the owners corporation decides to terminate the contract with their current strata management company, they need to provide formal notice to the current company. They can send the notice through email. 
• Once they finally terminate the contract and choose a new strata management company, they can now sign the paperwork with the new company. 

5. Ensure a Smooth Handover

• Once you choose a new strata management company, the outgoing strata management company can now begin the handover. The current company hands over all important documents and records to the new company. 
• It is helpful to nominate a member of the executive committee or owners corporation to ensure a smooth handover. The new strata management company can get the necessary paperwork and records from the old company. 

It is easy to change a strata management company. It is, however, more important to choose the right company. Choosing the right company can save you time and money. If you are a property owner looking for a strata management company in Perth, Western Australia, contact Home2Home Realty to know more about Strata Management.