Strata and Their Management Problems

• 

  salmon123 on 17/12/2019 - 18:02

  +1

  What can we do?

  Fire the strata manager? but honestly, expecting a strata manager to haggle with a contractor on your behalf is not realistic. A typical strata manager might handle 600 lots or more (across various complexes). Renters/Agents/etc aren't interested in what it costs, they want it fixed ASAP.

  they charge ridiculous prices leaving owners to share the cost

  What are we talking as an hourly rate for a handyman?

  Yeah, it's possible the contractor is gouging you, but it's also possible you have unrealistic expectations of what something should cost.

  You need to look at how much extra, this contractor is costing you and either chalk it up to "strata living" or find a cheaper contractor for certain tasks.

• 

  dcep on 17/12/2019 - 18:06

  +4

  3 quotes minimum for non-urgent job

  • 

    crashloaded on 17/12/2019 - 18:09

    +4

    This. And why aren't these jobs being approved by the committee? I would suggest putting in a motion to lower the amount that can be spent without committee approval.

• 

  HighAndDry on 17/12/2019 - 18:23

  -2

  I mean, sure, if you want the strata manager to charge you more for their time spent haggling and getting extra quotes from contractors and workers for every job.

  • 

    hawkeye on 17/12/2019 - 19:32

    He can get quotes himself then approach the committee if he's on the committee as an ordinary member would make it easier.

    • 

      HighAndDry on 18/12/2019 - 08:23

      And who's going to do all the admin work (send notices, organise meetings, write up minutes, etc) for each small job around the building that needs to be done?

• 

  hawkeye on 17/12/2019 - 18:39

  +1

  Talk to the pretend treasurer when we were managed by a bunch of thieving useless clueless problem making idiots they made me pretend treasure at an AGM. The first thing I did was sack all services and got my own then we worked out it was cheaper to flick strata management pay them out for the rest of year contract we had with them.

  Most people are worried about getting their ass sued that's why these companies are such a ripoff everybody wants to hide behind them and no one wants to step up to the plate and start running it.

  On big things you need 3 quotes but on gardening you might have a cheap price but his work is shit.

  I was reading back on our old contracts with strata they where charging $50 commission for small job to $500 or something like that then $501 -$2000 10% 2001 to 5k 5% etc.

  • 

    pformag on 18/12/2019 - 11:29

    brah

• 

  Seraphin7 on 17/12/2019 - 18:45

  Could we change the strata agent? i.e. use the same company but change the manager? if so, what is the procedure?

  Yes. Call them, tell them what you would like to happen, hopefully reach an agreement, document your agreement by return email and await the agreed action.

  If we all push to say we want it changed, does he have to change it?

  No. However, you can change strata management company, which frankly sounds like what you should do in this circumstance as my bet is this is a company issue, not a specific manager issue.

• 

  hawkeye on 17/12/2019 - 19:01

  You have to put a motion in the next AGM to flick them or get a band together and call an extraordinary meeting knowing you'll win with a plan. If you don't have a plan with support from other owners everyone is just going to vent and rant and nothing will change

• 

  garetz on 17/12/2019 - 19:36

  If you have enough votes you can even change the strata managing company all together.

  The strata manager should have 0 power unless they get your permission as a whole unless its an emergency or the cost is under an agreed upon amount that is specified in the by laws, usually $500 or so.

  It all depends on the by-laws though, the manager may have way too much power already depending on what is specified exactly.

• 

  LuffyTuffyFluffy on 17/12/2019 - 21:25

  The Strata Manager acts on behalf of the owners Corp executing the instructions given by the Exe Com. As a EC you have the right to request, object/dismiss, amend, negotiate on matters pertaining to the property.

  A SM can't reasonably deny your requests to change contractors or seek further quotes. If you do change contractors, it's the job of the SM to vet them so it's additional work.

  SM usually have large portfolios to manage so they'd may not be keen to undertake more work then necessary.

• 

  salmon123 on 17/12/2019 - 21:34

  +2

  A SM can't reasonably deny your requests to change contractors or seek further quotes.

  I think the OP is just having a winge. He hasn't posted any concrete facts about why he thinks the existing contractors are gouging them and by how much.

  Yeah, there is a lot of dodgy dealings in strata, but let's start with some basic facts before we take out the pitchforks.

• 

  Meho2026 on 18/12/2019 - 08:53

  The executive committee can direct the strata manager to obtain 3 quotes for big jobs, no problem, they wont charge extra for the additional time it takes to organise this.

  Have a look at your 10 year plan, there will be budget forecasts and estimates of planned maintenance. Compare your budget estimates with the actual charges because if you are being grossly overcharged, it will throw the 10 year plan out and deplete your sinking fund of cash.

  Ive dealt with many different strata managers over the years and I have never ever met a competent one or one that is a pleasure to deal with. Ive also never met any property owner or property manager that has held a high opinion of a strata manager. It could be that each strata manager has such a large portfolio of buildings its impossible to provide adequate customer service or that they are all the scum of the earth. Its a tough call to make.

  If you are going to change management, check your existing contract term and notice period and follow the rules regarding proposing the change and voting. Its usually straightforward when all the owners feel the same way.
  getting a quote from another strata management company is really easy too but get some recommendations. I find that asking real estate property managers which companies they prefer to deal with is a good guide.

  Just remember the executive committee basically employs the strata manager so you tell them whats going to happen, not the other way around.

  • 

    salmon123 on 18/12/2019 - 11:32

    -2

    It could be that each strata manager has such a large portfolio of buildings its impossible to provide adequate customer service

    Let's crunch some numbers. A strata manager makes ~110k. A strata management company charges between $200-$500/lot for their services, say $350/lot on average. They need to manage 314 lots, just to cover their salary. By the time you factor in other basic costs of running a strata management company, like rent, electricity, computers, software, marketing, etc, you might be looking at 430 lots/manager … and probably over 500/lots per manager if the strata management company want to make a profit. I've read somewhere the bigger strata companies operate at 600 lots/manager.

    Ive also never met any property owner or property manager that has held a high opinion of a strata manager.

    I've dealt with various strata managers over the years. I wouldn't go as far as saying "Mr XXX from YYY strata management was brilliant", I would say "Mr XXX from YYY strata management was easy to deal with and let me organize my own quotes, where I felt their preferred contractor was too expensive." Of course this only works in smaller complexes.