Changing body corporate managers can feel daunting. So the team here at BCsystems has put together a guide for how to best handle the change for your body corporate. Including how to off-board your current manager and what is involved with on-boarding Brisbane’s high rated body corporate managers, BCsystems.
Changing body corporate managers
Check your current body corporate management agreement
The easiest place to begin the process is with your current strata management agreement. If you can’t locate a copy of the agreement in your files you can ask the strata manager to supply a copy of it. Once you have a copy of the agreement you will be able to find the following information:
- The duration of the contract including the expiration date
- The terms in which the agreement can be terminated early
- The terms in which notice should be given, whether written, via email or otherwise
- The length of the notice period, and
- Any extra procedures that must be completed before the strata manager can be changed
Typically, you will only be able to terminate a contract before its expiry date if your strata manager has breached the terms outlined in the contract.
Body corporate management agreements are limited to a maximum of 3 years, and they do not automatically rollover. At each renewal, your body corporate has an opportunity to review the services you are receiving and make a decision to renew or switch to BCsystems. Therefore, if the current manager has not breached the contract you can still proceed, however you will likely have to wait until the AGM that corresponds with the expiry date outlined in the contract.
Deciding on a new body corporate manager
BCsystems is certainly not the only strata management company in Brisbane, however, our clients do think that we are the best. Although they might think that your criteria may be different. So what are some of the things to look for in a good strata manager?
- Be sure that the strata manager you pick can actually fix the problems that you are facing with your current manager
- Multiple experts for multiple fields of expertise (Example: One man bands, are not likely to be experts in accounting, administration and all strata laws)
- All-inclusive pricing (Example: don’t charge extra for emails or printing, etc.)
- Positive Reviews from clients (Example: BCsystems has 4.8 stars from 110 Google reviews)
- A high retention rate of clients (Example: BCsystems has retained 99.7% of our clients over 25 years)
You can acquire all of this information from most (good) body corporate management proposals or capability statements.
If you would like to request a proposal tailored especially for your body corporate scheme you can do that by filling out our request a proposal form (click here) or by calling Cameron Farrell, BCsystems Business Development manager, using this number: (07) 3899 0299.
Once the committee has satisfied any due diligence requirements they must then evaluate the proposals lodged by the strata management companies. If you decide to join BCsystems, we will provide a simple motion to include in your AGM.
Call an AGM/EGM
There are two situations in which you would be calling a meeting to remove your strata manager. The first circumstance is when the contract’s expiry date has arrived. In this case, the meeting would be an annual general meeting (AGM). The second circumstance is when the strata manager has breached either their contract or the laws outlined in the Body Corporate and Community Management (BCCM) Act 1997 and you are trying to terminate the contract early. In this case, you would need to call for an extraordinary general meeting (EGM).
In both scenarios, BCsystems will be able to assist you with everything including supplying any motions needed.
Minimising the awkwardness
The process unfortunately does involve an awkward conversation. The conversation we are talking about is the one where you are effectively firing the incumbent manager while they are in the room. So how exactly do you go about minimising the awkwardness for all parties?
1. Make sure that the incumbent manager knows ahead of time
The incumbent manager should be alerted ahead of the meeting that they are being let go. Blindsiding your current manager doesn’t necessarily
2. Make sure that all owners understand why there is a need to change.
Not all owners or committees may be as engaged in running the body corporate as you are. That means that there is a very real possibility that they may not have even realised that there are issues with the current manager. Therefore, the other owners must know what the issues are and how they will be addressed by bringing on BCsystems. This will allow the body corporate to have a singular and unified position on the matter.
3. Keep things courteous
There is no need to become hostile or snarky in situations like this. Of course, emotions can run high but it is always best practice to stay calm and remember that this is beneficial for all owners of the body corporate to
Sign the paperwork
Once the AGM or EGM formalities have been taken care of, all you need to do is sign our agreement. As soon as this is done we can begin working together to improve your body corporate.
On-boarding your new manager
The onboarding process at BCsystems is as simple as it gets for you and your body corporate. Throughout the onboarding process, there will not be a great deal for you to do as we will look after the process for you. Essentially your first 30 days with BCsystems will look something like this:
Within 24 hours: BCsystems appointed and owners are given access to the BCsystems portal
Within the first day of BCsystems being appointed as your new strata manager, all owners in your scheme will have access to our online owner’s portal. In the portal owners will be able to
Within 48 hours: Bank accounts will be set up
Within 2 days of our agreement being signed and delivered, we will have your body corporate’s bank accounts set up with StrataCash BOQ.
Within 30 days: Document handover
BCsystems will liaise with the outgoing managers and facilitate a seamless handover. This process all involves us digitalising any documents or records that have not already been digitalised by the outgoing manager.