Many Committees reach a stage where their manager’s performance no longer aligns with the expectations or needs of the community.
With the number of owners corporation (OC) management companies in Victoria, determining who is truly capable can be challenging. Unfortunately, not all providers deliver the level of service your community requires.
To guide your decision, we’ve outlined five important points to keep in mind when switching managers. Understanding these factors can help you make a more informed choice.
Key Takeaways:
- Owners and Committees often spot issues first, so your input is important when deciding if your manager still meets the community’s needs.
- Changing managers requires majority support and a clear understanding of your contract and legal obligations for a smooth transition.
- Every building has different needs, so choosing a proactive manager through a careful, thoughtful selection process can make a real difference.
1. Your role in your building and OC matters
Residents are usually the first to recognise when something in the community needs attention, whether it’s an unresolved matter or a concern about how things are being handled.
As a member of the OC, you have the right to raise these issues and take part in deciding the best course of action.
If you feel your current manager isn’t maintaining the building effectively or supporting the community’s welfare, it may be time to raise this with other members and discuss whether a change is needed.
2. Understand where the majority stands
An OC operates much like a democracy, where decisions are made by the majority. How this decision is reached will depend on your community’s structure:
- If you have an elected Committee: the majority of Committee members will typically decide whether to change management companies, in line with your governing documents.
- If there is no Committee: the decision falls to the lot owners, who will vote on the matter at a general meeting.
Knowing where most owners stand is an important step before moving forward with any change in management.
3. Review your management contract and relevant legislation
In Victoria, changing an OC manager requires an understanding of three key legal foundations:
Contract Law
Start by reviewing your current management contract, as this is the document that binds you to your existing manager. Important points to clarify include:
- the terms and notice periods
- any early termination clauses
- the obligations of both parties during the transition
Statute Law
OC management in Victoria is primarily governed by the Owners Corporation Act 2006. It’s also important to be aware of any relevant amendments or updates to the legislation, as these can affect how a change of manager should be handled.
Common Law
OC matters and disputes are often resolved through the Victorian Civil & Administrative Tribunal (VCAT).
Issues relating to the termination, change or exit of a management company may be heard and decided by a VCAT Member. As a result, there are numerous VCAT cases and legal precedents that may be relevant to owners and Committees when changing OC management services.
4. Know your building’s needs and owners’ expectations
When changing an OC manager or seeking consulting services, it helps to focus on two main aspects:
- the physical building
- the OC, including all lot owners and the Committee
Understand your building’s priorities
Every building has its own needs. For example, an older building might require more detailed long-term maintenance planning and closer attention to potential issues as they arise.
A newer building may instead require early focus on identifying and addressing any emerging defects.
Consider owners’ and Committees’ expectations
Owners and Committees will have different expectations of their manager, from communication and transparency to the level of day-to-day involvement.
Understanding these needs early on will help ensure you choose a manager who is well suited to your building and community.
5. Take time to find a reliable and proactive manager
Victoria has a wide range of owners corporation managers, from large management firms to real estate agencies to smaller independent operators. With so many choices, taking the time to compare providers is important.
A structured tender or selection process can make a significant difference. You are handing over important responsibilities, so choosing the right OC manager will directly influence how well your building is run.
Save time by working with trusted OC consultants
Finding a great manager doesn’t need to be difficult. At Owners Corporation Victoria, we’ve already done the hard work. After years of service and experience in the industry, we’ve put together a carefully chosen list of body corporate managers who meet the standards we know communities look for.
We’re selective because you should only work with the good operators in the industry. We take the same care in choosing managers as you do when choosing the right one for your building.
Ready to change your OC manager?
If you’ve been thinking about making a change, you’re in the same position as many other communities looking for better support.
Reach out to us today and let’s take the next step together.
