Red Flags That Your Owners Corporation Needs a New Manager

At what point does a frustrating strata manager become the wrong strata manager for your owners corporation?

That line is not always obvious. In most cases, it is when the service starts making the Committee’s job harder than it should be.

A few delays can happen anywhere. But when routine matters need constant chasing, decisions take longer and the Committee is spending more time managing around the service, it may be time to look more closely at the relationship.

In this article, we use “owners corporation” as a general term when referring to owners corporations and bodies corporate. Here are the red flags that can help you tell the difference.

Key Takeaways

• Recurring service issues can make everyday management harder for the Committee.
• Poor communication, stalled maintenance and weak administration can point to deeper problems with the management service.
• Before changing managers, the Committee should be specific about what needs to improve and what it wants from the next arrangement.

What are the biggest red flags with an owners corporation manager?

The biggest warning signs tend to show up in the basics of the service.

They often become noticeable through the way information is handled, tasks are progressed and everyday management issues are dealt with. Here are the signs worth watching.

Communication is consistently slow or unclear

Your Committee should not have to keep chasing basic updates.

Emails may go unanswered, specific questions may receive vague responses or important developments may be communicated later than expected.

A manager may not always have an immediate answer, but they should still be able to explain where a matter stands, what happens next and when you are likely to hear more.

Agreed actions are not being completed

Committee decisions should lead to action.

If quotes are not requested, insurers are not contacted or agreed tasks remain unfinished unless someone on the Committee steps in, the management process may be falling short.

The result is often more work for volunteers and less certainty about whether important matters are actually moving.

Maintenance and repairs keep stalling

Maintenance is one of the easiest places to see whether management processes are working.

A repair may be reported, but quotes are not progressed. A contractor may attend, but the next step is left unresolved. The same issue may keep returning to meeting agendas without a clear outcome.

Some repairs will naturally take time, especially where approvals or specialist contractors are involved. What matters is whether the Committee understands what is causing the delay and what is being done about it.

Financial reporting leaves too many unanswered questions

Financial information should help the Committee understand the position of the scheme and make informed decisions.

Budgets, levies, expenditure and financial reports should be presented in a way that Committee members can follow.

If significant costs are difficult to explain, reports regularly lack context or questions about spending are met with vague answers, the Committee may not be getting the financial visibility it needs.

Meetings are poorly prepared or managed

Meetings should help the Committee make decisions and keep important matters moving.

Late agendas, missing supporting documents, unclear minutes or unresolved issues appearing meeting after meeting can all make the process less effective.

Good meeting support should leave the Committee knowing what was decided, what still needs attention and who is responsible for the next step.

Too much of the management work is falling back on the Committee

Committee members are expected to be involved in running the scheme, but they should not have to become the day-to-day management team.

If volunteers are regularly organising contractors, keeping their own action lists or handling administrative tasks they expected the manager to coordinate, the balance may no longer be right.

Over time, that can make Committee roles more demanding than they need to be.

Staff turnover is disrupting the service

A change in portfolio manager does not have to cause disruption.

The problem is when every change means explaining the building again, reopening old matters or losing momentum on work that was already underway.

Good internal systems should allow a new manager to understand the history, records and active issues without the Committee having to start from the beginning.

You no longer trust the advice you are receiving

A Committee does not need to agree with its manager on every issue. It does need to be able to rely on the information and guidance being provided.

If advice is inconsistent, important details are missing or Committee members regularly feel the need to double-check routine guidance elsewhere, the relationship may no longer be working as it should.

Once the Committee starts second-guessing the information it receives, even straightforward decisions can become harder.

How can your Committee decide whether it’s time to change managers?

The decision should come down to whether the service is improving and what impact the problems are having on the scheme.

Think about what has happened so far. Is this a one-off, or has the same issue come up again? Has the Committee raised it with the manager and given them a fair chance to improve?

If so, the next question is simple: has the service actually changed?

Then consider what the problems are costing the Committee in practical terms.

Are repairs being held up? Are decisions taking longer? Are volunteers taking on work they did not expect to handle?

One practical question can help put it into perspective: If nothing changed over the next 12 months, would the Committee be comfortable continuing with the current manager?

If the answer is no, it may be worth exploring what other management options are available.

What should your Committee check before changing managers?

Once the Committee is seriously considering a change, the focus shifts from deciding whether there is a problem to preparing for what comes next.

Start by being specific about what you want to improve. “Better service” can mean different things to different Committees. It may mean:

• faster responses
• stronger maintenance coordination
• more useful meeting support
• financial information that is easier to understand

The Committee should also review the current management agreement and the requirements that apply to the owners corporation before taking steps to end the appointment or appoint a new manager.

When considering a replacement, look at:

• who will actually manage your property and their experience with similar schemes
• how communication and day-to-day support are handled
• what is included in the management fee and what may cost extra
• how maintenance, meetings and records are managed
• how the handover from the current manager will be handled

Price matters, but it should not be the only factor.

A lower fee may look attractive, but if the Committee ends up doing more administration or spending more time resolving issues, the saving may not represent better value.

The better test is whether the manager’s service, systems and approach are a good fit for the needs of your scheme.

How can StrataQuote help you find a new manager?

If your Committee has reached the point where the current arrangement no longer feels right, the next step is understanding what other management options may be available.

StrataQuote gives Committees a simpler way to start that search through one enquiry. You can tell us about your property, what is not working with the current service and what you want from a new manager.

Where suitable options are available, we can help connect your Committee with managers that may be a better fit.

That means you can explore a change without having to start the search from scratch.

If your Committee is starting to question whether the current manager is still the right fit, you can make an enquiry here to see what other options may be available.