Strata councils use strata management companies to ensure that the council and property owners meet their obligation under the Strata Property Act, and correctly address tenant issues. The Strata Property Act provides the legal framework which all strata corporations in BC must operate.
If the current strata management company isn’t maintaining the property and expectations of the tenants, then it may be time to consider changing the strata management company. But transitioning requires careful planning, clear communication and adherence to the legal requirements. This post serves as a guide.
Discussion with the current management team
Sometimes it is easier to have a discussion with the current management team and make it aware of the issues that are of concern, be it financial mismanagement, poor communication, or inefficient operations. If these issues can be addressed and resolved by a certain deadline, then it is expedient not to change, if not, then it’s time to select a new strata management firm.
Thoroughly review the current contract
Understand the terms of the contract with the current strata management company. Abide by any termination clauses and the notice period. Failure to do this could result in expensive litigation. It may be wise to seek legal counsel if the process of termination is not clear.
Consult with the council and owners
The decision to change should have the consent of the strata council and owners. Therefore, it is necessary that strata council and owners are complaint with the reasons for change and processes involved.
Create a proposal for new strata management
This is important as it will give potential management companies a better understanding of the property and its needs. It also helps the council define and agree on what is required. The proposal typically includes, amongst other things, information about the building, the type of strata and any ongoing or anticipated projects.
Research into a new strata management company
When looking for a suitable company as a replacement, the following facts must be taken into consideration: reputation and track record of the company, services offered, references from clients, and costs and fees. A site visit will allow prospective companies to understand the property and community they hope to manage.
Termination of the current contract
Once a suitable replacement strata management company has been chosen, the contract with the current company will have to be terminated. The current management company can waive the 3/4 vote for the termination of the contract. If it does not, then the Strata Council must call a Special General Meeting (SGM) or conduct this business during the Annual General Meeting (AGM). The Council requires a 3/4 majority vote for the resolution to be carried. If approved, the current strata management company must be given a 60 days’ notice.
We have a division called RENT + MANAGE dedicated to rental property and management. Contact us if you require a company to help you with all the aspects of managing your property.
A Guide To Changing Strata Management Companies
Strata councils use strata management companies to ensure that the council and property owners meet their obligation under the Strata Property Act, and correctly address tenant issues. The Strata Property Act provides the legal framework which all strata corporations in BC must operate.
If the current strata management company isn’t maintaining the property and expectations of the tenants, then it may be time to consider changing the strata management company. But transitioning requires careful planning, clear communication and adherence to the legal requirements. This post serves as a guide.
Discussion with the current management team
Sometimes it is easier to have a discussion with the current management team and make it aware of the issues that are of concern, be it financial mismanagement, poor communication, or inefficient operations. If these issues can be addressed and resolved by a certain deadline, then it is expedient not to change, if not, then it’s time to select a new strata management firm.
Thoroughly review the current contract
Understand the terms of the contract with the current strata management company. Abide by any termination clauses and the notice period. Failure to do this could result in expensive litigation. It may be wise to seek legal counsel if the process of termination is not clear.
Consult with the council and owners
The decision to change should have the consent of the strata council and owners. Therefore, it is necessary that strata council and owners are complaint with the reasons for change and processes involved.
Create a proposal for new strata management
This is important as it will give potential management companies a better understanding of the property and its needs. It also helps the council define and agree on what is required. The proposal typically includes, amongst other things, information about the building, the type of strata and any ongoing or anticipated projects.
Research into a new strata management company
When looking for a suitable company as a replacement, the following facts must be taken into consideration: reputation and track record of the company, services offered, references from clients, and costs and fees. A site visit will allow prospective companies to understand the property and community they hope to manage.
Termination of the current contract
Once a suitable replacement strata management company has been chosen, the contract with the current company will have to be terminated. The current management company can waive the 3/4 vote for the termination of the contract. If it does not, then the Strata Council must call a Special General Meeting (SGM) or conduct this business during the Annual General Meeting (AGM). The Council requires a 3/4 majority vote for the resolution to be carried. If approved, the current strata management company must be given a 60 days’ notice.
We have a division called RENT + MANAGE dedicated to rental property and management. Contact us if you require a company to help you with all the aspects of managing your property.