Changing Body Corporate: All Your Questions Answered

For many people, the housing market is challenging to enter into. House prices are rising month in month out, which is a boon for property owners but a bane for first home buyers. However, it is not an impossible task, especially if you consider buying strata properties such as apartments, units, and townhouses. These smaller homes can be a great way to get a foot in the door of the housing market.

Yet with strata properties come being part of owners corporations, or body corporate. Dealing with body corporate management companies, paying fees and attending general meetings all come with the territory of owning strata property. However, you are not stuck with the same body corporate for the entire time you live in a strata property. You can act to change your body corporate management company or manager. This is useful if they are not performing well or charge too much, amongst other things. 

In this article, we'll explain how to change strata management companies. But first, we'll share some of the signs that it is time to make a change. Read on to discover more. 

Warning Signs

There are certain red flags that signal a shoddy body corporate company. If any of these pop up, it’s a surefire sign that it is time for a change. 

If They Arrange Inconvenient Meetings

If your body corporate manager schedules meetings, such as the annual general meeting or a special meeting, during working hours, this is a bad sign. A good company acknowledges your busy schedule and will book meetings for after hours. 

Also, pay attention to where they hold meetings. If it is always at their office, this means it's convenient for them, not you. Especially in this day and age, when we are all used to Zoom for online meetings.

Poor Communication

Another warning sign that your owner's corporation manager needs to get replaced is if they are a poor communicator. If they are consistently late in replying to emails or returning phone calls, or fail to do so, this is poor form. You pay your fees to keep them employed, so they need to work for you and get back to you within a reasonable timeframe.

This is especially relevant if they are late in arranging quotes for repairs, maintenance or other works on common property, or when dealing with your insurance claims. 

Failing in Their Duties

Yet another red flag is if they do not perform their duties. For instance, this could include issuing breach notices to other owners if they are not following guidelines, such as parking in visitor parking, leaving rubbish strewn about or other inappropriate behaviours in common areas. 

A breach notice is a warning to the owner and a demand to rectify the behaviour. Continued breaches can wind up in front of the relevant state's tribunal body.

Another failure in their duties can include not issuing the correct paperwork before meetings or not sending the minutes after a meeting within a reasonable timeframe.
 

How Do I Switch?

Switching is a straightforward process.

Step One

You can begin the process of switching body corporate management companies by contacting other firms for quotes to manage your strata property. If the properties building insurance is managed via body corporate, ensure you mention this and that the quote covers it. If you switch without this, your home will be uninsured, which is an unacceptable risk for a homeowner.

What’s the Next Step?

The next step is to hold a special meeting and invite all the owners. Each state will have guidelines, but typically you need to give around twenty days notice and issue a written invitation. The meeting can be held online or in person, but online via Zoom is more convenient and will ensure more owners can come. Try to schedule it for 5.30 or 6 pm to ensure everyone can come.

How Do We Vote Them Out?

You will need to make a motion to sack the current management company at the meeting. You need a majority vote to achieve this. For instance, seven owners must vote for the motion if you have twelve owners within the complex or development.

A good tip here is to network with your neighbours before the meeting, convince them of the need to change, inform them of the better quote and get them on side. A failed vote means you're stuck with the current body corporate manager, who then knows you’ve tried to vote them out.

Suppose the vote succeeds; congratulations! You have essentially fired the poorly performing company. The next step is managed by the new management company you vote in, which will cover all the paperwork and transfers. At this stage, open the sparkling wine and have a drink to celebrate! 

A Clever Conclusion

We've covered some of the warning signs of a poorly performing body corporate manager in this helpful blog. Remember, poor communication and not following through on tasks is a big red flag. Then, follow the above process to change the management company to one that offers a better experience, good customer service, and potentially a cheaper fee structure.