How to check if a strata manager is good?

Discussion in 'Property Management' started by pwt, 23rd Jan, 2017.

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  1. pwt

    pwt Well-Known Member

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    Long story short, the committee member in one of my IP unit block wants to change the current strata manager. We tried changing strata manager about 5 years ago then some members changed their mind.

    I am a bit over it but committee member keep hassling me to check a quote from a strata manager. I can't find any online review about them. Their fees seem cheaper than the existing strata manager and it's one of the main reason why the committee member wants to change.

    Any recommendation on how to suss out if the strata manager is any good? I guess I can ask for references but think most will give good ones anyway.

    Thanks.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Ask to grab the files of three clients randomly from their clientele or why they lost their last 3 clients etc.
     
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  3. Russ

    Russ Well-Known Member

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    nobody should hand over other people's information.

    I think your bigger problem is that other committee members want you to be their slave. Tell them to go get the quote themselves if they care! What are they on the committee for?

    Online reviews are tainted by the negative. Have any of you gone and posted a good review about a strata manager? It's hard to know whether a negative review comes from a whinger who didn't get their own way - quite possibly correctly, or whether there is really a problem.

    I don't even offer proposals to buildings that are looking for a cheaper manager, unless they're actually getting ripped off. If your manager is half-good give them a hug and stay put. Better the devil you know, unless there is a real performance problem - in which case the thinking should be: "find the service you need and pay a fair price" not "find cheap". Cheap doesn't usually equate to good, and this strata caper is getting harder each year.

    But even when you're comparing price, you can't just look at the management fee. Look at Schedule A to see what it includes vs excludes, and look at the rates applicable for additional services. And look at the insurance commission. And look at their systems and technology, and their style of service. Some agents are set up to help people help themselves, some are set up to do a lot and charge a lot, and some are set up to do very little but charge a low enough fee that people won't leave even though their scheme will be 'failing' (not resolving issues properly, not keeping up with matters as they arise, etc).
     
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  4. datto

    datto Well-Known Member

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    Have a look at some of the properties they have managed for say 10 years.

    You'll soon get an idea of how good the strata coy is.
     
  5. Russ

    Russ Well-Known Member

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    but don't forget that the strata manager works under instruction, the OC is the boss.

    It's not a bad idea, but you'd need to do some homework to strip the noise from the important bits. Arguably, a good strata manager should have blocks that look great and blocks that are cheaply maintained because that's the democratic outcome based on what the OWNERS want for their own block - in terms of what they're prepared to pay for. Some blocks look great because a couple of retirees or passionate residents have pride in their home and do stuff, and it sets a tone. Sometimes you have a very good manager looking after a block who are so tight they won't pay for a good gardener or lift a finger.

    I think: talk to the strata manager. Get the committee together to meet with the prospective manager and ask them questions about how they'd handle some relevant issues. See whether you think it makes sense. See how you feel about them. It's like buying anything. You do a bit of homework on the objective factors, and you end up using a bit of 'gut' for the subjective ones. Intuition has its place.
     
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  6. datto

    datto Well-Known Member

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    By all means do the extra spade work. The more one digs the more one finds.

    High levies and a run down block (eg blocked drains, scary looking balconies, unruly tenants, faded/damaged paint work, cracks, concrete cancer etc etc) indicate a problem with both strata committee (if one exists) and strata manager.

    I save myself the headache and walk away from these blocks where possible. Trying to change these blocks may take years and there may also be resistance. So I sold out. No regrets there.

    Also by checking google reviews you get an idea of the strata manager quality. I know some people post fictitous reviews but a heavy stream of poor reviews should sound alarm bells.

    I'm sure there are good strata managers out there but unfortunately I haven't come across one.

    And yes I know there are lousy owners out there that want everything cheap, put crappy tenants in their unit and won't get off their rear end to help out even though at the AGM they promised the world. Phew, that's a load off, I'm knackered.
     
  7. Russ

    Russ Well-Known Member

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    All true mate.
     
  8. pwt

    pwt Well-Known Member

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    @Russ the committee member got the quote but wanted me to have a look and let her know if it is OK. For me, the price a strata manager charges isn't the only thing we should consider. As a background, my IP was my former PPOR and the committee member is my former neighbour.

    Thanks for all the feedback. I will pass on the feedback to the committee member and let her assess the strata manager. I doubt we will end up changing anyway as there are too many conflicting personalities living in the block (hence, me trying not to get involved in the politics).
     
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  9. Russ

    Russ Well-Known Member

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    oh yeah I see that in your post, now

    couldn't agree more.

    The politics can be really painful and good to avoid if you can. Good luck with it all pwt :)
     
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  10. dabbler

    dabbler Well-Known Member

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    I did it in a block we were involved in, many owners like you, had to drag them along (but they were always complaining about things).

    Cutting a long story short & why I do not agree with Russ, block looked fine, very fine actually, the strata manager had become buddies with one owner at the front of the block and they proceeded to treat it like it was theirs to do as they like, fix this, dig out plants and put in new ones, plant trees of wrong type in poor locations, paint things that did not need painting etc, all the while the manager copped fees for phone calls, getting quotes etc etc, they also had a thing set up where money was passing to this owner on a regular basis & of course most of this stuff was for this one owners benefit, the rear had nothing done.

    Went to a new manager with a flat fee & they were on top of things, costs came down, cleaning was done properly on whole building, not just for one owner, no more money leaking too this owner, of course said owner and prior manager were all sour grapes, owner left not long after.

    So I say do it if being mis managed if you have the numbers, make sure the new managers are ok and fee structure really does suit, it is a lot of work to change if you end up with the same, or worse.

    If your at the meet up tonight, feel free to talk to me about it & I will tell you pretty straight as have no dog in the fight.
     
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  11. Russ

    Russ Well-Known Member

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    I'm not sure what you think you're disagreeing with me about. I hope you're not equating what you describe above with a strata manager being 'half-good'????

    What you describe is a disfunctional scheme with a lack of interest in affairs by owners, generally, allowing an opportunistic & selfish owner / committee member to effectively rip the rest of you off, and probably a 'not good' strata manager.

    Not for once second would I advocate continuing the situation you describe.
     
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  12. dabbler

    dabbler Well-Known Member

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    Nah....I just do not think you can discount someone with a cheap fee as no good. The one we moved too was very cheap and included everything (and did a good job), the other one was charging top tier, but doing wrong thing, so you can't go on fee alone is what I am saying.

    Regarding dysfunctional, well, if you ask me most of them are, most owners have no clue what strata is, many think it is like Santa Claus :)
     
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  13. Russ

    Russ Well-Known Member

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    Bang on!

    Yeah, true, you CAN save money and get a job done well - if your starting position is a 'not good' manager charging high fees.

    In Sydney, the costs of an agency are Sydney labour costs, Sydney rentals, software and utilities, Professional indemnity insurance costs which increase for all agents because of some agents getting sued, and other costs - most of which aren't going up by CPI (much higher instead). Efficiency is challenged by increasingly complex legislation, and reform of it, and more problems than the past (building defects, behavioural issues exacerbated by higher population density, more litigious society, people wanting to renovate after watching tv shows, short-term letting, etc) - which means training and supervision should be increased, but cost pressure largely prevents it.

    Against THAT backdrop, a lot of people focus on cost when changing - and somehow expect that a cost reduction will automatically be accompanied by an improvement in service.
     
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  14. Ted Varrick

    Ted Varrick Well-Known Member

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    Dabbler, Having been in strata for multiple decades, sooner or later your Owners Corporation strategy is going to come undone.

    Probably shortly after your strata manager realises that they are not making any profit out of your site (not that there is anything wrong with that...)

    I'd guess that some realisations occur sooner than others...
     
    Last edited: 25th Jan, 2017
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  15. pwt

    pwt Well-Known Member

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    @dabbler unfortunately can't make it for the catch up tonight.

    Just thinking out loud, is it worth showing the annual strata report to prospective strata managers and asked them what can one do better than the current strata manager?
     
  16. dabbler

    dabbler Well-Known Member

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    Nah, the manager had a strong business at the time, it was sold so not sure how it is going now.
     

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