From OC Pitfalls to Reputable Management

We helped a Tier 3 Owners Corporation with 20 lots find a manager who offered the personalised level of service they had struggled to find in the past.

In July 2022, a committee member contacted us for advice to help them navigate the strata management pitfalls of finding a reputable owners corporation manager.

Background 

• The Owners Corporation, with 20 single storey units, was in past years self-managed.
• A manager who was then appointed failed to disclose his intentions to on-sell the management contract quickly after being appointed. The promises he made to the committee were not honoured.
• The company to who the contract was transferred failed to provide a satisfactory level of service, were impossible to reach, and were taking funds from the Owners Corporation bank account for the provision of services that were not agreed.
• Two bad experiences in a row created a mistrust with OC management companies and the committee wanted assistance to find a new reputable manager.

Outcome

• The OCguide provided advice via phone and email to educate the committee about their rights, obligations and, most importantly, expectations when considering the appointment of a manager.
• The OCguide then met with committee members on-site to tour the property and best understand their needs and expectations of a manager.
• The OCguide invited managers to tender who they were confident offered very high levels of service, with integrity and strong interpersonal skills — managers who would build a strong and lasting relationship with the committee members.
• The OCguide provided a report to the committee comparing six proposals to help them resolve their next appointment. 
• The Owners Corporation achieved $805 cost savings annually, including agreed KPIs and nil fees for additional services other managers expect a fee for.
• The committee’s feedback about their new manager indicates they are building a strong, trusted relationship and exceeding expectations.
• The OCguide managed the process from start to finish, including preparing all paperwork, convening, and chairing meetings and assisting and educating committee members regarding their rights and obligations.

Cost Comparison

The OCguide took the time with a committee that needed both time and patience to understand their needs and restore their faith in an industry where it is difficult to separate the good from the bad.  The OCguide have gathered data and feedback from their large OC client base, enabling us to guide future client OCs into fair and transparent agreements.