Key Takeaways:
- A proactive, service-focused OC manager restored confidence and improved communication so issues were addressed before they escalated.
- A fixed, all-inclusive fee structure helped the Committee cut costs removing hidden admin and software fees for clearer, more predictable budgeting.
- Through a structured review process, the Committee made a smooth change in OC management, resulting in improved service and lasting value.
In August 2021, a Committee representing an older apartment block in St Kilda East began reviewing its owners corporation (OC) management arrangements. The group had noticed that communication with their existing manager had become inconsistent and that general building upkeep was no longer being managed effectively.
Seeking to better understand their options, they approached us for guidance on how to proceed with a potential change in management.
When service quality slips
The Committee’s concerns were familiar. Maintenance tasks were being delayed, responses to enquiries had slowed and transparency had started to fade.
Over time, the manager’s approach had become reactive rather than proactive, addressing problems only after they were raised instead of anticipating them.
They wanted a manager who would
- communicate clearly and consistently
- take initiative in maintaining the property
- provide transparent and predictable costs
With their priorities defined, they began exploring how to identify and appoint a manager who could meet these expectations.
A structured process for change
We began by meeting with the Committee to discuss their priorities and expectations for a new provider.
A detailed Request for Tender (RFT) was then prepared, outlining the building’s requirements and management expectations. Once distributed, we managed the bidding process, reviewed submissions and discussed shortlisted candidates with them.
Every OC management company we work with is carefully vetted for
- OC experience and professional qualifications
- service quality and performance metrics
- integrity and professional values
- strata software, systems and processes
- commitment to ongoing industry training
The management company that was chosen was slightly less expensive than the incumbent and demonstrated a hands-on, service-focused approach that aligned with their expectations.
Comparing costs: old vs new OC management company
A cost review was conducted to compare the Committee’s previous management arrangement with the newly appointed provider.
Although the new management fee was slightly higher, the fixed-fee structure removed additional charges for software, work orders and administration.
The value of all-inclusive fees
Not all OC management contracts are structured the same way. Many include “disbursement” clauses that allow variable fees for administrative tasks such as printing, postage or responding to emails. Over time, these incidental costs can significantly increase overall expenses.
Most of the management companies we recommend provide fixed, all-inclusive pricing that covers administrative and technology services. Some also waive small fees entirely when lot owners choose to receive correspondence electronically.
This pricing model offered clarity and predictability, removing unexpected costs and simplifying financial planning for the St Kilda East OC.
Better service, tangible savings
The decision to change management companies delivered immediate improvements:
- faster response times and proactive maintenance oversight
- clearer communication between the Committee and manager
- predictable annual costs under a fixed-fee structure
- renewed confidence in the building’s management
This change was about more than saving $726 a year. It restored trust in how the property was managed and reinforced the value of choosing the right OC partner.
Considering a change?
If your OC is facing unresponsive service, rising costs or ongoing maintenance issues, it may be time to review your management arrangement.
At Change Body Corporate, we help Committees assess their current provider, compare options and transition to management companies that offer proactive service and genuine value.
With the right process, your OC can achieve stronger management and meaningful savings.
Visit us here to discuss how we can help your OC make a confident and well-informed change.
