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HOW TO SWITCH TO MELB OC

From poor service levels, to unprofessional accounting practices, through to a lack of oversight of maintenance and badly run meetings, there may be any number of reasons to change your owners corporation manager.

Graphic portrayal of the change of an OC Manager

Here are the five most common reasons for replacement:

  • Unacceptable building presentation - messy corridors, lights not replaced, or lifts that never work

  • Accounting discrepancies or financial stress - usually due to poor governance in relation to expenditure

  • Communication problems - the manager taking too long to respond to an email, never answering the phone, or not informing all owners about owners corporation matters

  • Lack of transparency - not receiving independent quotes for maintenance and facility management

  • No on-site presence - a manager unable to provide professional advice to the committee because they never visit the precinct

If your current owners corporation manager isn’t up to scratch, here is how to change body corporate managers:

1. Obtain copy of current management contract and latest AGM minutes

All contracts form part of the ‘owners corporation register’, and as an owner you have a legal right to view or take a copy of any part of the register. 

2. Send current contract and AGM minutes to Melb OC, for review.

They will be able to tell you if there’s anything you should be wary of, such as any red flags in the termination clause of the contract. They will also be able to view from the AGM minutes if exactly what powers committee has been delegated from the owners corporation. 

3. Ask Melb OC and 2 other firms to quote service levels, improvements and price.

Be wary. 

The cheapest management firms don’t have chartered accountants on staff, which leads to errors in bookkeeping. Note that Melb OC both in-house Chartered Accountants and CPAs.

A large number of managers are connected to real estate agencies, and won’t enforce the owners corporation rules on their landlords. Melb OC is completely independent.

Ask about expertise in managing large capital works replacement issues when they arise, such as combustible cladding, the presence of non-compliant infrastructure in the building, or even major structural works.

4. Pass committee resolution to appoint Melb OC.

Melb OC will be able to assist you with this.

5. Give current manager notice (28 days minimum)

They will often ask to see a copy of the resolution in (4) above.

6. Ensure smooth transition from old manager to Melb OC.


Melb OC will manage this process for you.

 

Call Melb OC on 03 9108 3910, or email us at oc@melboc.com.au to make the switch.

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