How to change your strata management company in WA

If your strata manager is not working out, you are allowed to change. It happens all the time, the law is on your side, and you will not be doing it alone. Schemes that switch are usually surprised by how simple the process turns out to be, because the incoming manager does most of the work for you.

Not sure where to start? Start with us. KPR is not a strata management company. We sell strata property and manage rentals, which means we work beside Perth’s strata managers every week and we see up close which ones keep clean files, answer their phones, and look after their buildings. Contact KPR or call 08 6385 6800 and we will put you in touch with strata management companies suited to your scheme’s size and needs, ones who can then guide you through the change itself. No cost, no obligation, and we do not collect commissions or fees for the introduction.

The contract has an end date, and that is your way out

Every strata manager in WA must have a written contract with the strata company. Since the Strata Titles Act 1985 was overhauled in 2020, that contract must state when it starts and when it ends, and any extension or renewal must be in writing. It does not roll over by itself. If nobody signs a new agreement, it simply runs out.

So the easiest change of manager involves nothing dramatic at all. Note the end date, choose your new manager in the months before it, give whatever notice the contract asks for that you will not be renewing, and let the old agreement expire on schedule. On a one or two year contract, that date is never far away.

Need to leave mid-term? There is a path

Mid-term, you have two options. The first is mutual agreement. Most contracts allow both sides to agree to part ways, and an unhappy client is not much fun to keep, so this conversation succeeds more often than you might think. The second is termination on proper grounds under section 151 of the Act, for example where the manager has contravened the Act or the contract. The Act sets out a formal notice process with strict steps and timeframes, and your incoming manager or a strata lawyer can walk you through it, so do not let this part put you off. Get advice early and the path is well marked.

Your records are protected by law

The fear that keeps schemes with a manager they have outgrown is usually the handover. It should not be. When a strata management contract is terminated, section 152 of the Act requires the outgoing manager to return all of the strata company’s records, keys, and other property within 28 days, and they cannot hold your records hostage over a disputed invoice, because the Act denies them any lien over strata company property. On top of that, section 96 lets the strata company demand its records, keys, and property in writing at any time, and failing to comply without reasonable excuse is an offence. Your incoming manager will chase the handover for you. It is one of the first tests of whether you chose well.

A simple sequence that works

1. Pull out the current contract and find the end date and the notice period.
2. Talk to KPR, and we will introduce you to two or three managers worth comparing.
3. Get written proposals and compare the whole schedule of fees, not just the base number.
4. Decide at council, or put it to a general meeting of owners.
5. Give your notice in writing, on time, and let the incoming manager run the handover.

Why we care about your strata manager

Because we read strata files for a living. Before any strata listing goes to market we compile the scheme’s records into a strata information pack, and the difference between a well-managed scheme and a neglected one is visible on every page. Buyers pay more for buildings that are visibly well run. Changing to a strata manager who keeps the file straight shows up, over the years, in what every lot in the scheme sells for.

So if any of this feels daunting, make one phone call. We will listen to what is going wrong, connect you with strata managers who suit your building, and they will handle the paperwork, the meeting, and the handover from there. Contact KPR or call the office on 08 6385 6800.

This article is general information about Western Australian strata schemes, not legal advice, and contracts differ. For a dispute or a mid-term termination, speak to a strata lawyer.

By James Yeoman, Director of KPR Perth Pty Ltd T/A Key Performance Real Estate