How to Change Your Strata Manager: A Step-by-Step Guide

If you're unhappy with your current strata manager, you have the right to make a change. However, specific steps must be followed to ensure a smooth transition. This guide will walk you through what needs to be done to effectively replace your strata manager.

Common Reasons for Firing a Strata Manager

Many property owners become frustrated with their strata management due to:

• Lack of communication – Unanswered emails, unreturned calls, or poor responsiveness.

• High staff turnover – Frequent changes in managers leading to inconsistency.

• Slow task completion – Maintenance, financials, or key responsibilities not handled in a timely manner.

• Failure to meet expectations – Poor service leading to increased strata fees and frustrated owners.

A strata manager should be proactive, efficient, and communicative. If these standards aren't met, it may be time for a change.

The first step is critical - Engage with the Council of Owners

To initiate the process, you must either be a member of the council of owners or communicate openly with them. The council of owners is responsible for making decisions on behalf of all lot owners, including appointing or terminating a strata management company.

If you are not on the council, discuss your concerns with existing members. If they share your views, they can work collectively to initiate the process of changing the strata manager.

Suppose you are not on the council or there is no active council leading your strata company. In that case, your first step is to attend the Annual General Meeting or call an EGM to have a council elected and get involved with your strata company so you can be in charge of the management. 

Review the Strata Management Contract

Before taking any steps, carefully review the contract between your strata company and the current strata manager. Pay attention to the following details:

• Expiry Date: When does the contract end?

• Termination Clause: What conditions must be met to terminate the agreement either at the end of the term or before the expiry date?

• Notice Period: How much notice must be given?

Understanding these clauses will help determine whether you can exit the contract immediately or need to follow a formal process.

Early Termination: When You Can End the Contract Before Expiry

If your contract does not expire soon, you may still have grounds to terminate the agreement. Under Section 151 of the Strata Titles Act, an agreement can be ended early if the strata management company has failed to provide services to the required standard.

To take this route, you will need to:

• Refer to the contract’s service obligations and identify any breaches. This is generally a schedule towards the end of the contract. It will outline what the strata manager has promised to do for your strata company. If they have failed to complete any of these obligations, then the contract can be terminated. 

• Gather evidence showing how the strata manager has failed to meet its obligations. The evidence must be in writing and specific; vague allegations are not enough to terminate a contract. 

• Provide 28 days' written notice to terminate the contract based on these failures, signed by the council of the strata company. 

This approach ensures you have a legal basis for terminating the contract without financial penalties. If the strata management company doesn't agree, you may have to pay out some or all of the contract, so be careful to check this when you leave their services. If the negotiations get messy, you should engage assistance as soon as possible to help settle the matter.

Issue the Termination Notice and Find a New Strata Manager

Once you have confirmed the grounds for termination, follow these steps:

• Send a formal termination notice – Clearly outline the reasons for termination and provide the required notice period (usually 28 days).

• Confirm receipt of the notice – Ensure the strata management company acknowledges your request.

• Find a new strata manager—A replacement should be lined up to ensure a smooth transition. A new strata manager can also assist with navigating the termination process, so having someone in mind early can be beneficial. The 28-day notice period is ample time to find a new manager.

 Final Thoughts

Changing strata managers may seem complicated, but it can be done smoothly with the right steps. Ensure you communicate with the council of owners, review your contract carefully, and, if necessary, use Section 151 of the Strata Titles Act to exit the agreement early.

If you need help navigating the process, seek professional advice to ensure you meet all legal requirements and transition to a better strata management solution.

For help on how to select your next strata manager, you can refer to my next article. 

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