If you are considering your options and need some clarity around the process of reviewing your current strata management, we’d like to share some simple steps and advice that will make the change quite a straight forward one.

There are several key reasons for initiating a change in strata managers. If you’re dealing with any the following, it is time to review and initiate a change in strata management:

• Slow response, or no response
• Poor communication
• Low trust that they are acting in your building’s best interest
• Hidden fees
• Financials are incorrect or unclear
• Lack of proactive advice or support
• Gaps in strata law knowledge and legislative compliance
• Repairs are reactive, not proactive
• A sense that the committee is doing all the work

Every year, many NSW strata committees switch managers to get the service their building deserves. The good news is we’re here to build a cohesive strata community, protect your property value into the future and deliver an exceptional strata experience along the way.

What you should expect from your new strata manager

Changing strata managers shouldn’t simply mean getting better responses to today’s problems.

It should mean having a professional advisory team that is already thinking about tomorrow.

At McCormacks, strata management is underpinned by the professional disciplines of law, accounting and property management. That means rigorous legislative compliance is the starting point — not the finish line.

From there, we focus on the things that genuinely shape the performance of a building and its community:

Plan ahead.
Understand the building, anticipate its needs and plan for maintenance, capital expenditure, compliance and long-term asset performance.

Advise with authority.
Bring together legal, accounting and strata expertise to give committees considered advice and confidence in their decisions.

Communicate and respond.
Be accessible, accountable and clear — because good advice is only valuable when it reaches you when you need it.

Operate with transparency.
Clear fees. No hidden surprises. No unnecessary lock-in. Trust is earned by being open about how we work and what things cost.

Use technology intelligently.
Use systems and data to improve transparency, efficiency and oversight, while keeping professional judgement at the centre.

Build relationships that last.
Know the building, its people and its history. Build trusted relationships with committees, owners, contractors and advisers.

Think beyond the next meeting.
The role isn’t simply to administer what happens today. It is to provide the leadership, planning and professional oversight that helps a building perform at its best over the long term.

Compliance is the foundation. Professional advice is the difference.

That’s the McCormacks approach to strata management: rigorous in the detail, proactive in the planning and professional in the advice.

Who can initiate changing strata managers

If an owner is on the Strata Committee, they can generally initiate a change of strata managers through calling a Strata Committee Meeting to pass a motion to arrange a General Meeting to vote to change Strata Managers.

If lot owners who are not on the Strata Committee are able to secure 25% of financial owners (based on units of entitlement) to sign the Requisition of EGM to vote to change Strata Manager – they can email the Strata Manager two months prior to issuance of the AGM agenda, along with the required documents (*motion to change strata managers and requisition of EGM to appoint McCormacks Strata Management).

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If you like what you see on McCormacks website, and you are interested in getting in touch for a proposal, simply contact us now or call us on 1300 991 825.

*We will send you the motion forms prefilled to make things easier to make the change.

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Important considerations when changing strata managers

• Depth of Experience – be sure to check the level of experience, including years in the business, and what other strata properties they have managed in the past. Ideally, your strata manager will have experience running similar sized properties to yours, and larger, more complex ones also. Ensure that you obtain recommendations and reviews from existing clients.
• Professional Qualifications – accredited strata managers, professional accounting and legislative knowledge and guidance around legal issues are critical areas of expertise.
• Communication – first impressions are indicative of how well the new strata management team will communicate, respond to crises, and lead your strata committee towards success.
• Customer Service — be sure to ask what their StrataMax™ NPS® score is, as this is an independent third-party rating of their customer service levels. Also, ask how many buildings are in their strata manager’s portfolio, as this will indicate the level of service you will receive.

Four Steps towards changing strata managers

1. Review the terms of your existing agency management contract

Your existing agency management contract will contain terms addressing termination procedures and the notice requirement period. It is important to review these terms and ensure that you give notice as required by the terms before appointing a new strata manager.

Consider when your current management contract will expire, as it can be both complex and costly to terminate a strata management contract if the contract only allows early termination where the manager is in breach of the contract. Most agreements have a three month termination period.

2. Conduct Due Diligence and Research

A fundamental step in changing strata managers is the research process. It is recommended to gather facts, comparisons and information illustrating why it is in the owners corporation’s interest to change your current strata management company.

This will formulate your proposal to the other members of the owners corporation and strengthen your recommendation for a new strata manager.

3. Call An Owners Corporation Meeting For Agreement

After conducting your research, arrange a meeting with the owners corporation where you can showcase your collated information on a potential new strata manager.

This should then progress into a motion at the owners corporation committee meeting on whether the existing strata manager should be changed.

Legislative requirements and a quorum must also be considered when voting.

4. Owners Corporation Agreement – Transitioning To A New Strata Manager

If the majority of owners vote to appoint a new strata manager at the AGM or EGM, you can then proceed to prepare for the transition to the new strata manager and terminate your existing contract.

Before the AGM, the secretary must attach the draft management agreement to the agenda to allow time for the owners to consider the contract terms.

Your new strata manager will provide you with a list of essential documents that must be completed to ensure the transition between strata managers is as smooth as possible.

Make the switch to McCormacks

We provide the best strata management service, advice and leadership in Sydney.

For over 30 years, McCormacks has set the standard for best practice in strata management across Sydney’s most established and complex landmark buildings. These include Woolloomooloo Wharf, The Horizon, Quay Grand, Observatory Tower, Quay West, and Top of the Town.

Our approach is grounded in professional discipline from our origins as a law firm, and applied through a service model that prioritises responsiveness, accountability and considered decision-making.

The result is a level of consistency and care that supports both the immediate needs of your building and the long-term performance and value of the asset it represents.

The common good, made exceptional by McCormacks.

Our difference is professional discipline, applied to strata.

Professional advisory expertise — A dedicated team drawing on legal, accounting and strata management expertise.

Proactive building leadership — Rigorous compliance, long-term planning and considered advice that protects the building and supports its future.

A service model built around you — A limited portfolio, responsive communication, intelligent technology and relationships that endure.

Our Demonstrable Difference is backed by McCormacks’ industry-leading customer performance rating score by NPS® by StrataMax™.

Let us work together to make the common good exceptional in your complex.

Get in touch today for a confidential discussion.