Changing strata managers is a significant decision for any Owners Corporation. Whether it’s driven by dissatisfaction, a need for more proactive support, or simply the end of a contractual term, the transition process can seem daunting. However, with the right approach and understanding, a strata manager changeover can be a smooth, positive step forward for your community.
Why Change Strata Managers?
Before we get into the mechanics of a changeover, it’s worth acknowledging the reasons why OCs might seek new management. These can include:
- Poor communication or responsiveness
- Lack of financial transparency or reporting
- Unresolved maintenance issues
- Outdated systems and processes
- A better fit with a strata manager who understands the specific needs of the property or community
Whatever the catalyst, the priority during a changeover is to ensure continuity and avoid disruptions to the OC’s day-to-day affairs.
Step 1: Appointment of the New Manager
The first formal step is to appoint the new strata manager. This happens at a general meeting of the OC, where owners vote to:
- Terminate the current contract (in line with its terms)
- Appoint a new manager
- Approve a new management agreement
It’s essential that this process is documented clearly in the meeting minutes and that the new manager’s appointment aligns with the rules under the Owners Corporations Act 2006 (VIC).
Once appointed, the new manager typically sends a formal introduction to owners and begins coordinating the changeover process.
Step 2: Notifying the Outgoing Manager
The outgoing strata manager must be given written notice of contract termination, which usually includes:
- The termination date (as per the contract terms)
- Request for cooperation in the handover
- Details of the new strata manager
In most cases, strata management contracts include a notice period—often 28 days—during which the outgoing manager remains responsible for the day-to-day running of the property.
Professional courtesy and regulatory requirements dictate that the outgoing manager must provide access to the OC’s records, accounts, and assets within a reasonable timeframe.
Step 3: Document and Record Handover
A crucial part of any changeover is the handover of documents. This includes:
Administrative Records
- Minutes of meetings
- Register of owners and tenants
- Insurance policies and claims history
- Correspondence and service contracts
Financial Records
- Balance sheet and income statements
- Bank account details
- Levy notices and payment history
- Outstanding debts and invoices
- BAS and tax documents (if registered)
Legal and Compliance Documents
- OC rules
- Maintenance plans
- Building condition reports
- Defect and warranty documentation
These records are typically transferred digitally, though hard copies may be included for original documents. The new manager reviews these thoroughly to ensure nothing has been overlooked.
Step 4: Financial Reconciliation
Once the records have been transferred, financial reconciliation takes place. This process ensures that all funds, accounts, and financial obligations are correctly accounted for and transferred. It involves:
- Confirming bank balances
- Reconciling levy payments
- Ensuring all contractor payments are up to date
- Verifying any outstanding invoices or debts
- Setting up new bank authorities (if applicable)
In some cases, the new manager may recommend a third-party audit to confirm the OC’s financial health and identify any anomalies.
Importantly, the new manager also sets up financial systems for future operations—this may include new bank accounts, online payment platforms, or improved budget reporting.
Step 5: Communication with Owners
Clear, early communication is key to a successful transition. Owners are often understandably cautious about a management change, so it’s essential that they:
- Know who the new manager is and how to contact them
- Understand the timeline and steps of the transition
- Are reassured about the continuity of services (e.g. maintenance, levies)
At MBCM, we begin every new engagement with a welcome pack, including contact details, login instructions for our owner portal, and answers to frequently asked questions. We also make ourselves available to discuss any concerns directly with owners or committee members.
Step 6: Reviewing Current Contracts and Service Providers
The new strata manager will review all existing contracts with cleaners, gardeners, maintenance contractors, insurers, and more. This helps:
- Confirm that services are being delivered as agreed
- Ensure the OC is getting good value
- Flag any urgent renewals or opportunities for improvement
While there’s no obligation to change suppliers immediately, having a fresh set of eyes can often result in savings or improved service levels.
Step 7: Establishing a Management Plan
Once the transition is complete, the new strata manager typically develops a short-term and long-term plan for the OC. This may include:
- Maintenance priorities
- Capital works and sinking fund reviews
- Budget recommendations
- Compliance checks
- Communication protocols
This plan is then discussed with the OC committee and forms the basis of the new management relationship.
How Owners Can Support a Smooth Switch
While the heavy lifting is done by the managers, owners and committee members also play an important role in supporting a successful changeover:
- Attend meetings – Participate in discussions and decision-making
- Provide feedback – Let the new manager know about past issues or concerns
- Update your details – Ensure your contact and payment information is current
- Be patient – Transitions take time, especially when chasing documents or resolving historic issues
A collaborative mindset sets the tone for a positive working relationship with your new strata manager.
Strata manager changeovers can feel complicated, but they don’t have to be. With a structured handover process, open communication, and strong professional ethics, the transition from one manager to another can happen with minimal disruption and maximum benefit to the community.