Find A Good Body Corporate Manager In Melbourne

Do Real Estate Agents Make Good Body Corporate Managers?

It is absolutely staggering to see the weekly growth in Consumer Affairs Victoria’s list of registered body corporate managers.

It seems that the register of body corporate managers in Victoria is being inflated with new entrants every week. This makes it even harder to hire good body corporate managers in Melbourne or anywhere in Victoria.

Some are experienced body corporate managers who have worked in the industry and are now out to make it independently. However, from the inside looking out, there’s certainly been a notable influx of real estate agents entering strata management.

It’s happened before—then the Owners Corporation Act 2006 came into force.

Many real estate agents, accountants, bookkeepers, and others who had the mad rush in quickly got out as the new Act imposed extra burdens and requirements. Now, it seems to be a case of history repeating itself.

With certainty, there are companies that provide real estate services and body corporate management services—and do it well. That is to say that they’re experienced, have the track record, systems and processes, and have the staffing and resources dedicated to providing both services.

A Few Simple Signs of Potentially Not-So-Good Body Corporate Managers

While some companies successfully provide both real estate and body corporate management services, many smaller real estate agencies view body corporate management as just another revenue stream.

This approach can be problematic.

Effective body corporate management requires a diverse skillset, including in-depth knowledge of:

Strata legislation: Understanding the Body Corporate Act 2006 and related regulations is crucial.
Building regulations: Managers must be aware of building codes and compliance requirements.
Financial management: This includes budgeting, financial reporting, and managing body corporate funds.
Bookkeeping and accounting: Accurate record-keeping is essential for transparency and accountability.

Real estate agents may excel at sales and property marketing, but they may not possess the comprehensive knowledge and experience needed to manage a body corporate effectively.

Spotting the Red Flags

Here are some signs that a body corporate manager might not have the necessary expertise:

Limited strata management experience
Frequent job changes
Unprofessional email addresses
Poorly designed website
Stock images for staff
No listed office address
Lack of dedicated software
Insufficient client base
Limited network of tradespeople
No in-house accounting
Focus on other businesses

Body corporates and Committees should always ask tough questions before appointing or changing body corporate managers. Don’t hesitate to request references, enquire about their experience, and clarify their financial management and communication approach.

What does not-so-good body corporate management look like in the real world?

So it’s actually pretty easy ‘as it stands in Victoria’ to become a registered body corporate manager. And certainly, there are a lot of not-so-good body corporate managers in Melbourne.

So what does a not-so-good body corporate manager in Melbourne look like in action??

From A to B – Changing Body Corporate Management Companies

We recently assisted a body corporate in Melbourne struggling to terminate their contract with a problematic corporate manager. The manager was uncooperative, making the process difficult and stressful for the owners.

They were met with harassment and some pretty intense vitriol. The manager claimed that things weren’t done right, notices/minutes weren’t properly prepared, and there was no way that he was letting them leave him.

The Owners called us and told of their situation. They asked if there was anything at all that could be done.

After a few conversations and helping them to review the documents and emails, it became clear that there was a path out.

The Updates from the Body Corporate

In mid-December 2020, before the Christmas break, we spoke to the owners to find out how they were doing with the new body corporate management company.

The new body corporate manager had already been in touch with owners. They had collected the books and records from the old body corporate manager (after some minor difficulties).

The new body corporate manager had scheduled their next AGM for the end of January 2021. The owners hadn’t had a chance to meet with the new body corporate manager in person yet (largely due to COVID restrictions and hesitations) but from what we gathered, they couldn’t be happier.

Their exact words:

“Just happy that they’re no longer with [name omitted].”

Appointing or Changing Body Corporate Managers in Melbourne?

Switching to a corporate body manager can be a complex process. To ensure a smooth transition, it’s important to understand the legal requirements and follow the correct procedures.

Need help navigating the change? Change Body Corporate Victoria can guide you through each step, from terminating your current contract to appointing a new manager that meets your building’s specific needs.