Changing Strata Managers in Perth: A Step-by-Step Guide
Thinking about switching strata managers in Perth?
The good news is that the process is far simpler than most Councils of Owners expect.
Why Changing Strata Managers Feels Harder Than It Is
Changing strata managers can sometimes feel like a daunting prospect.
Perhaps your Council of Owners isn't receiving the level of service it expects. Communication may have become slow. Maintenance isn't being followed through. Fees have increased. Or you simply feel your building deserves a more proactive and hands-on approach.
Yet many strata companies stay where they are because of one concern: "Is changing strata managers going to be difficult?"
The key is understanding your current strata management agreement and planning the transition properly. Once you do, the process becomes straightforward.
Step 1: Start With Your Current Management Agreement
Before making any decisions, the first step is to locate and review your current strata management agreement.
In Western Australia, a strata management contract must be in writing and specify when the contract starts and when it ends.
Your agreement should tell you:
The commencement date
The expiry date
The term of the appointment
How much notice must be provided
How notice must be given
Whether the agreement contains an automatic renewal or rollover provision
The circumstances in which the agreement can be terminated
Once you understand these provisions, you can establish the appropriate pathway and timing for changing managers.
Understanding Successive Terms and Rollover Clauses
What is a Successive Term?
This is something Councils of Owners should pay particular attention to.
Some strata management agreements contain a provision allowing the agreement to continue or "roll over" for a further period if the required notice isn't given before the end of the current term.
For example, an agreement might operate for an initial term and provide that, unless either party gives the required notice before the expiry date, the agreement continues into another term.
The exact wording varies from contract to contract, so it's important not to assume that every agreement operates the same way.
What is a Rollover Clause?
A rollover or automatic renewal clause is a contractual provision dealing with what happens when the current term reaches its expiry date.
Depending on the wording of the agreement, failing to provide notice within the required timeframe may mean the agreement continues or renews for another period.
This can sometimes catch Councils of Owners by surprise. You might have an agreement ending in three months and assume you can simply appoint another manager when it expires. But if the contract requires written notice to be given a certain period before expiry, missing that deadline may trigger the rollover provisions.
The important date isn't always just the expiry date. It's often the deadline for giving notice.
That's why we recommend reviewing your management agreement well before you intend to make a change.
Step 2: Provide Notice to Your Current Strata Manager
If your Council decides not to continue the relationship when the current agreement ends, appropriate notice should be provided in accordance with the existing contract.
That means checking:
How much notice is required?
Who must give the notice?
How must it be delivered?
When must it be received?
What resolutions or approvals are required?
Getting these details right can help ensure the transition occurs at the intended time and avoids accidentally triggering an additional term.
Important: Changing managers at the end of an agreement is different from attempting to terminate an agreement early because of an alleged breach or other grounds. Where early termination is being considered, different contractual and statutory requirements apply.
Don't Wait Until the Agreement Nearly Expires
One of the easiest ways to make changing strata managers difficult is simply leaving the decision too late.
If your Council of Owners is considering its options, start by reviewing the agreement now. Even if you're not ready to change managers, knowing these three dates can be invaluable:
When does our current agreement expire?
How much notice do we have to give?
What is the last date we can provide that notice before any rollover provision applies?
Put that final date in the Council's calendar. That way, your Council retains the opportunity to properly review its options rather than discovering too late that the agreement has continued into another term.
What About Your Building Records?
This is another common concern: "What happens to all our records?"
The good news is that changing strata managers doesn't mean starting your strata records from scratch.
When a strata management contract is terminated, Western Australia strata legislation requires the outgoing strata manager to return the strata company's records, including accounting records, together with keys and other property in the manager's possession or control.
Those items must generally be returned within 28 days following termination, and the strata company can agree for them to be made available directly to the newly appointed strata manager.
A professional incoming manager should coordinate this handover carefully so that the transition is as seamless as possible.
Making the Transition Smoother
At Ikon Strata Management, we understand that one of the biggest concerns for Councils considering a change is the workload involved.
Who contacts the existing manager? Who obtains the records? What happens to the bank accounts? What about owner details, levies, insurance, contractors, maintenance records, keys and building information?
Our approach is to make the transition as straightforward as possible. Once Ikon SM is formally appointed and appropriately authorised, we work through the handover process with the outgoing manager, establish the scheme within our systems, review the information received and help ensure the operational details of the property are captured.
The objective is simple: changing strata managers shouldn't create more work for your Council of Owners. It should ultimately create less.
What If Your Agreement Has Already Rolled Over?
If you've discovered that your management agreement has already entered a successive term, don't panic. It doesn't necessarily mean your strata company is permanently locked in.
It means the agreement needs to be carefully reviewed to establish the current contractual position, including the duration of the successive term, the applicable notice requirements and any other rights available to the strata company.
There may also be circumstances where a strata management agreement can be terminated before its ordinary expiry date. Under the Strata Titles Act 1985 (WA), proper grounds for termination can include a strata manager contravening the Act or breaching the management contract.
That is a different process from simply choosing not to renew an expiring agreement and involves specific statutory procedures. So before taking action, understand the agreement first.
This is an Opportunity, Not Just a Change
Changing strata managers shouldn't simply mean replacing one administrator with another. It's an opportunity for your Council of Owners to reconsider what it actually wants from its strata management company.
Do you want better communication? More transparency? Greater accountability? A strata manager who visits the property and understands the building? Better maintenance and contractor oversight? More support for the Council of Owners? A more proactive approach to protecting the long-term value of the property?
These are exactly the conversations worth having before appointing your next strata manager.
Ready to Make a Change?
If your Council of Owners is considering a change but doesn't know where to start, send Ikon SM a copy of your current strata management agreement.
We can help you identify the key dates and provisions to consider, including the expiry date, notice period and any successive-term or rollover provisions, so your Council has a clearer understanding of its position.
From there, we can discuss what you'd like to see from your next strata manager and how Ikon SM can make the transition as smooth as possible.
Changing strata managers doesn't need to be difficult. Sometimes the hardest part is simply deciding that your community deserves something better.