Key Takeaways:
- Owners are increasingly frustrated by hidden costs and commissions, calling for transparent procurement and fairer fee structures to protect their communities.
- Committees report a pattern of overpromising and underdelivering, where ongoing mistakes and inaction steadily erode confidence in managers.
- Developer influence and lack of genuine representation leave many owners sidelined, driving demand for independent and accountable governance.
Common struggles Committees report About OC management
The frustrations of Owners Corporation (OC) and Committees dealing with poor management have been widely reported and we’ve heard them firsthand from our own clients.
While not every OC manager delivers bad service, the recurring issues raised point to deeper challenges across the industry. From hidden costs to weak governance, these experiences reveal why owners are demanding more transparency, fairness, and accountability.
The following quotes from real clients shine a light on the most common issues Committees face and the lessons they reveal. Each one reflects a broader theme in the industry and underscores the need for reform.
1. “Daylight robbery. We don’t want to be robbed.”
This quote captures the frustration of owners who feel overcharged for services that lack transparency or value. One client expressed concern about a $17,000 commission paid to an OC manager for an insurance renewal, asking bluntly:
“What exactly are we paying for?”
The question underscored doubts about whether the insurance quotations presented were genuinely competitive or artificially inflated by hidden commissions. Ultimately, concerns of this nature highlight the urgent need for greater transparency in fee structures and procurement practices.
2. “A lot of promises, but nothing happened.”
Clients often report that OC managers overpromise during onboarding or tender presentations, creating expectations that are rarely fulfilled. As one Committee member recounted:
“They met Tim in person several times… but nothing happened at the end.”
Instead of results, Committees are frequently left with administrative mistakes in levy management and prolonged inaction on critical building defects. For many Committees, the gap between promises and delivery erodes confidence and leaves termination as the only viable option.
3. “Understaffed and making mistakes on basic things”
A recurring theme in owner feedback is the impact of inadequate resourcing. When managers are understaffed, even basic administrative tasks such as levy collection and record keeping are prone to error. One Committee chair expressed their frustration:
“Understaffed, a lot of mistakes on basic things like levies.”
Over time, these repeated mistakes undermined confidence in the manager’s ability to fulfil their core responsibilities. In this case, the breakdown in trust led the Committee to unanimously terminate the contract.
4. “We’re being blocked by the developer’s people.”
In some newly constructed buildings, developers continue to exert influence even after settlement by placing their own representatives on Committees. This practice often leaves genuine owners feeling disenfranchised. One client described how:
“The Developer placed five of themselves on the Committee to continue to block our voices.”
Such manipulation of governance structures undermines transparency, restricts fair representation, and creates conflicts of interest that prevent owners from making decisions in their best interests. These situations underscore the importance of governance safeguards to ensure Committees remain independent and representative of owners.
5. “Can we get our own tradie quotes ourselves? We don’t want to be ripped off.”
Procurement remains one of the most contentious areas in owners corporation management. Many Committees suspect that preferred contractors, whether for building works or insurance, are selected not because they offer the best value but because of commissions or prior relationships. As one owner put it plainly:
“Do you have any recommendations on how to get arm’s-length quotes or get less ripped off?”
This sentiment underscores the need for open tendering, clear disclosure of any financial interests, and greater owner involvement in sourcing quotes. For many Committees, requiring multiple independent quotes has become a practical safeguard against inflated costs.
Towards better practice
Each of these quotations represents not just frustration but a call for better practice. Owners corporations are communities, and they thrive when fairness, accountability and representation are upheld. Meeting these expectations is not optional; it is fundamental to maintaining trust and protecting shared assets.
Steps Committees can take
The message from Committees and owners is clear: they want transparency in costs, accountability in service, and independence in governance and procurement. Managers who respond to these demands will build lasting trust and stronger communities. Those who do not risk being left behind.
If your Committee is ready to explore fairer, more transparent management, visit Owners Corporation Victoria to learn how we can help. Small steps today can transform the way your community is managed tomorrow.
