Do you feel like your current owners corporation manager is no longer delivering the level of service you deserve? Well, changing managers is actually a lot easier than you might think.
While the process must comply with the requirements set out in your management agreement and Victorian legislation, it is generally quite straightforward when handled by the right experts.
In this guide, we’ll explore when it might be the right time to change your owners corporation manager and how a well-managed transition can guarantee continued, dedicated support for your owners corporation and, most importantly, owners and occupiers.
Understanding Owners Corporation Management in Melbourne
If you didn’t already know, Melbourne is home to Victoria’s highest number of owners corporations.
Owners corporations can be found right across Melbourne, from inner-city apartment complexes in the CBD and Southbank to established townhouse and residential communities throughout suburbs including Kew, Noble Park, Footscray and Box Hill.
As strata living continues to grow, effective owners corporation management has become increasingly important. According to the Strata Community Association, around 18% of Victorians live in an owners corporation, spanning approximately 128,900 owners corporations and more than a million lots, with a combined property value of around $471 billion.
As a result, the quality of management directly affects a significant proportion of Victorian residents, communities, and property assets.
Owners corporation managers operate under a variety of business models, including sole traders, partnerships, boutique firms, and networks.
While the legal term in Victoria is owners corporation manager, the terms body corporate manager and strata manager are also commonly used and are often used interchangeably.
Regardless of the title, an owners corporation manager is responsible for administering levy funds, coordinating maintenance, organising meetings, maintaining records, and supporting the committee.
In doing so, they help protect and manage some of the most valuable assets people will ever own. When management is effective, buildings operate smoothly, and issues are resolved proactively.
When management services fall short, the impact is often felt quickly by owners and occupiers alike.
When Should You Change Your Owners Corporation Manager?
If you’re questioning whether it’s time to change your owners corporation manager, it may already be time to explore your options.
While occasional issues are normal, ongoing service problems may indicate it’s time to consider a new management provider.
If you tick one or more of the following, it may be worth reviewing your current management arrangement:
☐ Your calls and emails regularly go unanswered or take too long to receive a response.
☐ Your maintenance requests are repeatedly delayed, overlooked, or poorly managed.
☐ Financial reports, levies, or invoices lack clarity or are difficult to understand.
☐ It’s difficult to access meeting minutes, records, or other important documents.
☐ Management fees have increased without any noticeable service improvement.
☐ Administrative errors, such as incorrect notices, inaccurate minutes, or poor record keeping, occur frequently.
☐ Concerns are raised repeatedly, but little or no action is taken to address them.<
If several of these issues sound familiar, your owners corporation manager may no longer be meeting your community’s needs. Reviewing alternative providers is now the right step forward.
Your Rights Under the Owners Corporations Act 2006
The Owners Corporations Act 2006 (VIC), is the governing Victorian legislation that frames how owner corporations are run, including the appointment and removal of managers. For more information, read here.
Essentially, under the Owners Corporations Act 2006, the decision to appoint or end a manager rests with the lot owners or the owners corporation. In most cases, this is done by passing the required resolution at a properly convened meeting in accordance with Victorian legislation.
However, the management agreement, known as the Contract of Appointment (CoA), is of equal importance. The CoA will typically outline the appointment term, notice period, renewal provisions, and any conditions for termination, all of which outline the scope of the management appointment and how and when a management arrangement can end.
Before making any decision, it is important to review both the management agreement and the relevant legislative requirements.
In Victoria, Consumer Affairs Victoria provides guidance on the operation of owners corporations and the appointment of managers.
Together, the legislation and management agreement establish a clear framework: the owners corporation decides whether to change managers, while the contract governs the practical steps required to undertake the transition correctly.
How to Change Your OC Manager in Melbourne: Step by Step
Changing your owners corporation manager may seem like a complex process, but it’s often more straightforward than many owners expect. Here’s a simple five-step guide to how the process typically works.
Step 1: Review your current management contract
Begin by reading and reviewing your current management contract carefully and in detail. The agreement should clearly set the rules associated with ending the appointment of your current OC manager. Check the notice period, the contract term, any renewal clauses, and whether there are termination conditions that must be met before the change can take effect.
This step is crucial, because even if you want to make the change, the contract still controls timing and the processes involved. Getting this right from the beginning helps alleviate potential disputes and makes the change process smoother.
Step 2: Call for a general meeting
The next step is to call for a general meeting. This meeting is generally requested by the committee or by lot owners with the relevant support under owners corporation rules. Notice must be given in the way required for the meeting type, and owners should be told clearly that changing the manager will be considered.
Step 3: Prepare and pass the resolution
Prepare a motion that clearly states the owners corporation intends to end the current manager’s appointment and appoint a new one. Depending on your management agreement and the circumstances, the decision may require either an ordinary or special resolution.
Ensure the meeting meets the required quorum, any valid proxies are recognised, and the resolution is accurately recorded in the meeting minutes. The motion should also specify when the change takes effect and who is authorised to sign any necessary documents, helping to ensure a smooth and well-documented transition.
Step 4: Appoint your new owners corporation manager
Once the owners corporation has approved the change, the new owners corporation manager can be formally appointed by signing the management agreement. The agreement should clearly outline the commencement date, services to be provided, management fees, and any agreed terms.
It’s also important to confirm how the handover will be managed, including the transfer of records, access to bank accounts, and responsibility for any ongoing maintenance or administrative matters. A well-planned transition helps the new manager take over smoothly with minimal disruption.
Step 5: Notify relevant parties
Once the new manager has been appointed, notify the outgoing manager, lot owners, insurers, and key contractors of the change. Remember to provide the outgoing manager with written notice in accordance with the management agreement, and clearly communicate the agreed handover date.
Lot owners should also be advised of any new contact details, online portals, or payment instructions, while insurers and contractors should be updated with the new management contact information.
Clear communication helps ensure a smooth transition and minimises the risk of missed notices, payment issues, or disruptions to ongoing services.
What Should be Included in the Handover?
A successful transition depends on the outgoing manager providing complete and up-to-date records. Before the new owners corporation manager takes over, make sure the following information is transferred:
- Relevant owners corporation records such as the owners register, committee contacts, meeting minutes, correspondence, and other key records.
- Financial documents, including bank account information, levy records, budgets, invoices, and any outstanding payments.
- Maintenance records, service schedules, warranties, repair history, and details of any other outstanding works.
- Contracts and supplier information such as current agreements with service providers.
- All building access-related material, i.e., master keys, access fobs, alarm codes, security information, and other relevant credentials.
- Insurance information like any current policies, broker details, and claims history.
It’s also important to agree on a clear handover date. This is to ensure all records are transferred in completion and in accordance with the management agreement.
A well-prepared and complete handover will help the new owners corporation manager maintain continuity and minimise disruption in the lives of residents.
Costs and Timing of Switching Managers
Changing your owners corporation manager is generally a low-cost process, with the main investment being the time required to organise the transition rather than significant upfront fees.
The overall timeframe will mostly depend on the notice period in the current management agreement and when the owners corporation can pass the required resolution. In some cases, the handover occurs relatively quickly, while in others it may be delayed until contractual obligations are met.
As always, the best outcome is a clean transition with no interruptions.
How to Choose the Right Owners Corporation Manager
Choosing the best fit for your owners corporations involves picking someone with extensive local expertise, a responsive communication style, and a clear understanding of administrative processes.
When comparing providers, here are some non-negotiables to keep in mind:
- Have proven experience managing owners corporations across Melbourne.
- Offer a complete service, including financial management, maintenance coordination, compliance support, and meeting administration.
- Communicate promptly and keep committees and lot owners informed.
- Provide clear financial reporting and arrears administration.
- Have established systems for coordinating contractors and following up on maintenance requests.
- Offer modern technology, such as online owner portals and digital access to important documents.
- Have a reputation for being responsive, honest, and easy to work with.
A capable owners corporation manager should strive to make life and everyday administrative decisions smooth sailing from the get-go.
Why Melbourne Owners Corporations Switch to SELECT
At SELECT, we guide committees through every stage of the transition, from reviewing your current arrangements to coordinating the handover with your outgoing manager. Our proven transition process is designed to minimise disruption and keep your owners corporation operating smoothly.
With over 50 years of experience managing owners corporations across Melbourne, SELECT proudly manages almost 1,000 owners corporations. If you’re looking for a smoother transition and a higher standard of service, yours could be next.
Once we receive your enquiry, we can either send you our free Transition Guide that steps you through the switch process in plain language. If you have already made the decision to switch to SELECT, we will prepare and send you a tailored management proposal as soon as possible. Your proposal will include information about:
- Our company
- Our services
- Our experienced team
- Our portfolio of managed owners’ corporations
- Our seamless management transition process
If we need to clarify any details before preparing your proposal, a member of our team will contact you.
Ready to Switch? Get your free Transition Guide
Unhappy with your current owners corporation manager? Looking for a new one in Melbourne? The team at SELECT can help you compare the right strata management approach for your building and effectively guide the handover process.
Here’s how the transition to SELECT typically works:
- A lot owner or committee member contacts our team.
- We review your current management arrangements, contract, and the needs of your owners corporation.
- The owners corporation passes the required resolution to appoint SELECT.
- The outgoing manager is notified, and the handover process begins.
- We coordinate the transfer of records and take over the day-to-day management of your owners corporation, ensuring a smooth transition with minimal disruption.
Ready to partner with SELECT? Reach out to us today for a free copy of our Transition Guide or a no-obligation phone-call to discuss your needs.
FAQs
Can lot owners change the owners corporation manager without the committee’s approval?
Yes, but not without its caveats. In Victoria, as per the Owners Corporations Act 2006, the owners corporation can delegate the power to appoint a manager to the committee, but if that delegation does not exist, the change normally needs to be approved through the proper owners corporation resolution process.
How much notice do we have to give our current OC manager in Victoria?
This largely depends on the management contract and the owners corporation’s tier. Generally, it’s one month’s written notice; however, for some agreements, it might be much longer. As a rule of thumb, check the contract first, then provide the relevant written notice,
Does it cost the owners corporation money to switch managers?
Typically, no direct cost falls on the owners corporation just for switching managers, but bear in mind that the total cost depends on the current contract and whether any exit fees have been written into the contract.
How long does it take to change the owners corporation managers in Melbourne?
In Melbourne, changing owners corporation managers usually takes between 4 and 8 weeks, but it can be faster or slower depending on the contract notice period and when the committee can meet to approve the change.
SELECT the best
SELECT provides you with a streamlined and simple transition pathway when the time comes to change your Owners Corporation manager and make the switch to SELECT.
