Step-by-Step Guide to Change Strata Management

If you are a member of an Owners Corporation you may have been noticing the red flags in terms of the responsibilities of your strata managers not being fulfilled as you expected. This hints that maybe it's time to change strata management. 

A strata manager is there to ensure the smooth operation of the strata property. They do so by maintaining it well, ensuring its financially sound and compliant with the state’s legislation. 

However, poor performance, lack of communication, being technologically behind or simply a difference of opinions might be enough reasons for you to change strata management.

How to change strata managers

Leading effective change management for the service industry is not simple. The same applies when the change pertains to strata management.

1. Identify the reason to change strata management: Are your common areas always in a shabby condition? Are you experiencing unsatisfactory communication and a clash of personalities? What is your reason to change strata management?

Some of these could be sorted out simply by talking. At other times, you find yourself with no other option than to change strata management.

When putting up your case to change strata management, make sure all stakeholders are on board. All stakeholders need to understand the benefit they will get out of it. This is a good time to look at the agreement to identify:

• Contract expiry date
• Terms that would terminate the contract
• Notice period and what should be included in it
• Procedures that need to be followed to put the termination in effect.

2. Take your time to find and shortlist potential candidates: Now that you know the areas where your current strata manager is failing, it's easier to identify qualities that your new strata manager must have. Additionally, look for experience and reviews too. Finally, it's time to shortlist your candidates by conducting interviews and understanding their management style in more detail.

Get quotes from multiple strata managers to ensure you choose the right company that understands your values and meets your requirements.

3. Call a meeting of the Owners Corporation: You need the vote of the majority of the owners to change strata management. Your current strata manager will be in the meeting, so to avoid awkwardness, make sure you inform them in advance.

Ensure those who are not in the meeting such as tenants, employees, suppliers, etc, are also communicated about the change.

Communicate the timeline for the transition. Also, let them know what changes to expect. Ideally, you should also be providing them with a point of contact until the new management takes over. Also make sure that each stakeholder understands their responsibilities to be carried out, during this period.

4. Plan the change and get the new team onboard: Is your plan to change strata management incremental, transitional, or transformational? This depends on the reason behind the reason for the change. Develop a plan to outline the timeline, budget, and resources needed to bring this change.

Once done, it's time to get the new team on board. Provide all the relevant documents to the new strata management team, and make sure they understand your policies, procedures, and expectations. It’s now time to hand over the management of your strata property to the newly hired team.

Common examples of when you need to change strata management

Owners Corporations may consider changing strata managers due to the following reasons:

1. Implementation of new technology: New advancements in technologies are happening every day. Strata managers need to keep up to maintain properties optimally. Failing to do so, might force an Owners Corporation to rethink its decision and look for a new management company. This is especially true improving technological capabilities makes more business sense.
2. Mergers & acquisitions: If your present strata management company is merging with another company, their goals might no longer align with yours. Hence it makes sense to find a new strata manager for your property.
3. Change in leadership: Sometimes the current strata manager's leadership is not effectively handling the matters it was hired for. When this happens, it may be time to consider a new management company that’s better aligned with your goals.
4. Times of crisis: Natural disasters and unexpected events can disrupt the usual operations of the property. During such times, it may be necessary to change management companies to ensure that the property is managed effectively. For example, a new management company may have better disaster response capabilities or be better equipped to handle an emergency.

Challenges faced when changing strata managers

Changing strata managers can be a complex process if it is not planned well.

The process involves significant coordination and planning. Here are some common challenges that companies may face when changing their strata managers:

Contractual obligations: Sometimes you are bound by contractual obligations with your current strata manager. This may prevent you from terminating the agreement. These obligations may include termination clauses, notice periods, and penalties for early termination.

Transfer of information: Accurately and securely transferring all information to the new strata management company is vital. This can take time and resources as it is a complex process. 

Coordination with owners: A significant amount of coordination needs to take place between all stakeholders to ensure a smooth transition. This includes getting the opinion of owners, updating internal records, and ensuring that all stakeholders are duly informed of the changes.

Staffing changes: When changing strata managers, there may be staffing changes as well. You might need to hire new personnel or transfer existing staff to the new management company. This requires careful planning and a great deal of coordination.

Adaptation to new management style: The new strata management company may have its own management style. Hence your existing staff might need to adapt to it. This means introducing new processes, conducting training, and putting new systems in place to seamlessly work with the new strata manager. 

Maintaining service levels:  Sometimes service level agreements tend to compromise during the transition phase. A big challenge is to ensure that facilities are still maintained to the highest standards and that owners are not inconvenienced during the transition.

Wrapping up

Changing strata managers can be a challenging process. However, it is essential when the current strata management fails to meet the expectations of the Owners Corporation.

The first step is to identify the reasons for the change and the benefits stakeholders will get. It's also crucial to plan the transition in detail and call a meeting of the Owners Corporation for a vote.

Some common reasons for changing strata management include the implementation of new technology, mergers and acquisitions, change in leadership, and times of crisis.

Lastly, it's important to understand the challenges that come with changing strata managers. These include contractual obligations, transfer of information, coordination with owners, staffing changes, and adaptation to a new management style.

By following a step-by-step guide and understanding the challenges, owners can smoothly transition to a new strata management company.

i4T Maintenance is a state-of-the-art Property Maintenance Management Software that helps Strata Managers process service requests Efficiently, Transparency, Compliantly, and Safely.

The platform also maintains a complete record of all tenants, properties, field service suppliers, and completed service requests. This helps you accurately and securely transfer all information if you decide to change strata managers for your facility.

Get in touch with us to learn more about i4T Maintenance.