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21 May 2024

How to Change Body Corporate Managers

What is a Body Corporate Manager?

A body corporate manager (or a strata manager) is an external professional or company that manages the daily operations and administration of a body corporate. This includes overseeing common properties and assets of residential, commercial, or mixed-use complexes. 

Beyond administrative duties, they play crucial roles as mediators and advisors, while handling financial and sometimes legal aspects, too. The need to change body corporate managers may arise from various factors such as inadequate performance, poor financial management, lack of necessary expertise, and much more. These factors highlight the importance of aligning the manager’s capabilities with the ever-changing needs of the property and its residents.

Signs You Should Change Body Corporate Management Companies

Changing your body corporate manager is a decision that shouldn’t be taken lightly and requires careful consideration. Recognising when a change is necessary can significantly impact the well-being and efficiency of your property management. Here are a few signs that might indicate it’s time to consider a new strata manager:

Communication Issues

Regular and clear communication is key for effective property management. If messages are frequently ignored, responses are delayed, or the information provided is unclear or insufficient, it could lead to miscommunication which can cause headaches for all parties involved.

Financial Discrepancies

Effective management includes impeccable handling of finances. If there are frequent unexplained discrepancies, budget overruns without proper justification, or a lack of transparent financial reporting, this could suggest mismanagement of funds, warranting an immediate review of your current management.

Legal and Compliance Issues

Regular legal issues or fines for non-compliance with local regulations can indicate poor management. Managers must be up-to-date with laws to ensure that the property adheres to all regulatory requirements, protecting both the residents and property owners.

Resident Dissatisfaction

Persistent complaints from residents regarding issues like delayed maintenance, unfulfilled service requests, or poor communication can call into question the effectiveness of the property management, highlighting the need for prompt and decisive action to address these concerns.

Neglected Maintenance

If the common areas and facilities start to show signs of neglect or are not maintained to an appropriate standard, it suggests a lack of oversight or care from management. This neglect can negatively affect the property’s value and satisfaction of its residents.


The Potential Benefits of Changing Body Corporate Managers

Recognising the need for change is the first step. Understanding the potential benefits of changing body corporate managers can motivate you to take necessary action. Here are a few benefits that a new manager can bring:

Improved Communication and Transparency

A new manager can improve the efficiency of communication, ensuring property owners and residents are well-informed and that their concerns are promptly addressed. This can greatly improve the overall satisfaction and harmony within the property.

Enhanced Financial Management

A manager with robust financial expertise and management skills can help streamline budgeting processes, improve financial transparency, and ensure the property’s finances are managed appropriately and wisely.

Proactive Property Management

Having a proactive manager who addresses potential issues promptly before they become problematic helps to maintain the property’s value and the quality of life for its residents. A well-maintained property is also attractive to prospective buyers and renters.

Improved Compliance and Reduced Legal Risks

A manager who is knowledgeable and up-to-date with current laws and regulations can reduce the risk of non-compliance and avoid potential, and even costly legal issues.


Step-by-Step Guide to Changing Your Body Corporate Manager

Step 1: Review Your Current Agreement

Before initiating change, it’s crucial to thoroughly understand the terms of your existing management arrangement. This document outlines your legal obligations and those of your manager. 

Focus on the termination clauses and notice periods to ensure compliance and avoid potential penalties. If there are performance-related exit clauses, document all instances where management has not met their obligations to support your case. Consulting with a legal expert can provide clarity and help safeguard your interests during this phase.

Step 2: Research and Gather Information on Prospective Managers

Start your search for a new manager by listing the essential skills, experience, and services your property requires. Look for managers with a strong track record in similar properties and prioritise those who are known for transparency and strong communication skills.

Gather references and conduct thorough interviews, posing insightful questions about their management style, strategies, and approach to challenges. This ensures they are well-aligned with your property’s and residents’ specific needs.

Step 3: The Decision-Making Process

Decision-making within a body corporate usually requires a majority vote from the committee members at a general meeting. Prepare detailed proposals outlining the potential benefits of new management and include a comparison of costs, services, and benefits over the current management.

Step 4: Notify Your Current Body Corporate Manager

Once the decision has been made, draft a termination letter to your current body corporate manager. Ensure you maintain professionalism and adhere strictly to the terms set out in the existing contract. Clearly outline the reasons for termination, and the effective date, and express your gratitude for their service to uphold a positive relationship.

Step 5: Engaging The New Body Corporate Manager

When finalising the new contract, carefully consider the agreement’s duration, roles, responsibilities, and management fees. It’s essential to outline these factors explicitly to avoid future disputes.

Planning a crossover period in which both the old and new managers collaborate, transfer important documents, and inform residents about the change can facilitate a smoother transition.



So, to wrap it up…

Changing your body corporate manager is a vital step towards ensuring longevity, profitability, and satisfaction within your property management. This process requires careful planning, from recognising the signs that change is needed to engaging a new manager who better fits your property’s ever-changing needs. By taking control of this situation, you can significantly improve the overall management of your property, improving both the value of your assets and the quality of life for your residents.

Connect with AD Body Corporate Today

If you’re feeling overwhelmed by this process or need specific advice tailored to your circumstances, AD Body Corporate is here to help. Our team is dedicated to providing you with personalised service and expert guidance of body corporate.

We understand the nuances of body corporate management and are committed to ensuring our clients receive the highest level of support.

Whether you have questions, need guidance, or are looking for a dedicated team of professionals to manage your property, we’re here to help. Let us work together to make your body corporate experience a seamless and rewarding one.

Get in touch with us today.


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