By: Ryan Lee
Is it time to change Property Management Company?
The role of your Property Management Company is to relieve the load of managing your strata scheme. A proactive management company will improve your strata scheme to enable protection and growth of the value of your asset. If you’re not getting the service you think you deserve, it might be time for a change!
How to change your Property Management Company? While the act of changing can seem like a huge task, we will walk you through the step-by-step process to show how easy it can be. There are a few key steps to follow when you and the JMB are thinking of changing Property Management Company.
Step 1: Management authority term
Obtain a copy of your property management agreement to check if you are in a contracted term. Some Property Management Company appoint themselves for 12 months and if the initial term runs out, they usually appoint to renew themselves for a further term at the Annual General Meeting. It’s unfortunate but some Property Management Company charge penalties (i.e. a percentage of the management fee for the term you did not complete) so it’s important to check when your term comes up. If your Property Management Company does want to charge a break fee, ask them to confirm the amount they are requesting to charge and why.
Step 2: Get majority agreeance for change
Call a formal or informal meeting of the JMB to discuss the problems that are being experienced and to ascertain if a change is warranted. The JMB would need to vote to in favour of changing to a new Property Management Company to proceed any further.
Step 3: Comparison Strata Management quotes
The JMB should seek alternate quotes. When seeking quotes, ensure you are comparing:
It’s always best to commit to a minimum term or ensure there is a service guarantee. We always recommend finding a Property Management Company that allows termination without penalties, and that way both parties always work hard to ensure the service is kept to a high standard.
Shortlist the candidates, and arrange the Property Management Company for interview session / meet & greet session. High quality Property Management Company are more than happy to visit your building, answer all your questions and provide a detailed quote and proposal to ensure they meet your needs if you are looking at changing Property Management Company. If your current Property Management Company is charging contract termination fees, speak to your new Property Management Company that your are loking to change to, as some are willing to pay the break fees to secure your business.
Step 4: Making the change of Property Management Company
Once a majority decision has been made, it is recommended that a formal letter or email, signed by one or two members from the JMB, is issued to your current Property Management Company to advise them of termination of service. The formal letter or email will advise your current Property Management Company that the JMB has decided to change Property Management Company and outline terms of the process and the date of termination of services.
Step 5: Changeover
Once a new Property Management Company has been appointed, they will handle the full changeover. The new Property Management Company will liaise with the outgoing Property Management Company to arrange a date for the handover of your building documents.
Changing strata managers might sound overwhelming, but it could be one of the best thing your building / community does this year.