In this episode Donna Carroll, a strata manager of more than 20 years’ experience, responds to my controversial episode no. 327 (“Peter Blows the Whistle on Overcharging Strata Managers“). We discuss:

  • why strata managers charge the way they do
  • the need for owner education
  • the “inadequate” training some strata managers receive
  • the call for a dedicated strata commissioner,

 

and more.

Links mentioned:

 

6 Responses

  1. Donna nails it when she says the training is inadequate.
    The issue this raises is that the strata industry is now ‘full’ of people whose training is inadequate because the training has never been adequate.
    The state has allowed the creation of a large industry full of people with inadequate preparation. The product is often not fit for purpose yet it is the only product; if you follow what I am implying.
    It comes back to the state on a number of levels. The back slapping ego stroking insider view held by those who have responsibility for overseeing the licencing – epic fail by all of them.
    The lack of recourse available to the consumer when the product is called faulty is almost non existent. Here I refer to FT and their ‘refusal’ to take responsibility of those who have licences. Such things as the Rules for all Agents as found in the Property Stock Agents Regulations are reduced to nonsense by the states response to failures to comply with these alleged rules. The failure to follow the rules comes back to that the training never supplied a basis to be able to follow the rules.
    It goes on and on.
    Bottom line is best expressed by Mr Ilkin.
    “Having a practical working knowledge of this complex Act and its Regulations and by-laws is essential for the owner who wishes to participate in the day to day control, management and administration of the strata scheme and to exercise available rights and entitlements effectively”
    As applicable to agents as it is to owners.

    No faith in NCAT – get in the very long queue.
    Broken is the best way to describe NCAT and no one who oversee that, not fit for purpose with strata matters, organisation considers there is a problem that needs addressing. The PR flap trap various Ministers put in replies is just a reflection of how futile it is to bring up issues with the state, i.e. the source of the issue.

    Absolutely right strata needs to go back to the days of something like the Strata Schemes Board (SSB). Going from the SSB to CTTT was not a good move and the “Super Tribunal”, i.e. NCAT; nothing super about it.

    It is kind of funny that strata people constantly go on about the lack of knowledge owners have. I hate to point to the elephant in the room but suburban freehold land owners also have no real idea about the nature of their title. Nothing special about strata owners ignorance but the consequences are often more significant.
    We all live under the rule of law yet there is no compulsory education about any aspect of the rule of law – I believe there is a reason for that.

    If you ever wonder why your agent is not good; ask the people who licenced them.

  2. Being a Treasurer for a Strata Company for a number of years now I find it very unusual that some Strata Managers or their staff do not have to have some experience with the accounting side of the Business as this I feel is very important to be able to produce a true and correct set of accounts to the Strata Company as after all it is their funds being spent

    I do understand with all respect some owners are constantly not understanding the structure of their committees for instance we have two committees two budgets for different areas of the Village and some residents have lived in this complex some as long as 10 years , still do not understand how and where their two lots of fees are spent on what area of the village even though explained to them at every meeting and some times every day but it is so annoying when they are the residents that do most of the complaining and gossiping around the village and when they do to they complain to the wrong committee about the wrong areas of the Village

  3. Thank you Donna and Amanda!

    I’ve been living in strata for 17 years and an owner in strata for 12 years. Without knowing what I was signing up for, I agreed to be a part of the committee about a month after we purchased our property. Luckily, our strata plan had an exceptionally thorough, passionate and knowledgeable strata manager. She gave our committee members some key advice when I asked what our role was. She told us three pieces of information: 1. – She told us of the existence the Strata Schemes Management Act and the Owners Corporation Network (OCN) training courses, and that generally, the committee’s role was to ensure the proper repair and maintenance of our building’s common property. 2. – She explained what common property was, and 3. – she also told us that if there were ever proposals for changes to common property (not like-for-like repairs), those changes and related expenditure had to be approved at a general meeting. She repeated this advice each time we went to her with a question (before providing her advice – always with the finer details). We couldn’t have been in better hands. How I wish all strata managers had such clarity and ability to pass on that basic knowledge.
    In a way I’m encouraged to hear Donna’s voice of experience noting that training for strata managers is inadequate. It means there is an opportunity for curriculum change.

    Thank you for your very clearly articulated position on all the issues you raised, Donna. As a long term committee member I’m encouraged by all that you had to say, and in particular with your points regarding lot owner engagement, strata committee behaviour and lack of proper education of new strata managers.

    Strata communities can be good to live in, but they require engagement from the whole community, kindness and care for each other, and good guidance.

    Thank you both for your time and care in putting this podcast to air.

    Kind regards,

    Kristen.

  4. I agree with Billenben’s comment “No faith in NCAT – get in the very long queue.
    Broken is the best way to describe NCAT and no one who oversee that, not fit for purpose with strata matters, organisation considers there is a problem that needs addressing. The PR flap trap various Ministers put in replies is just a reflection of how futile it is to bring up issues with the state, i.e. the source of the issue.

    Absolutely right strata needs to go back to the days of something like the Strata Schemes Board (SSB). Going from the SSB to CTTT was not a good move and the “Super Tribunal”, i.e. NCAT; nothing super about it.”
    I don’t know how SSB was because my experience with the CTTT in 2007 was the same as the now NCAT where nothing is done if you need repairs on your strata scheme. I believe that the whole thing needs Urgent Repair if people do not want left with places they cannot live in.
    The other change I see that is not going to do anything for transparency or accountability is the new “Strata Hub”. I believe that is a waste of time and money.

  5. Thank you Donna, I appreciate you taking the time to articulate your thoughts and provide another point of view.

    While I DO actually believe that they key role of a truly great strata management is to support, educate and empower, fee structures are not set up to support this.

    It’s a cycle. We need to manage less buildings to have the time to provide the services that would render us more respect and frankly, income, but making those changes is a risk, as we need to demonstrate that we’re worthy of those higher fees which render better service.

    The question of under-trained strata managers is complex. I’d argue it is the responsibility of the company they work for to adequately train their people and not place them in portfolios until they are ready. I do wonder how any managers in leadership positions are able to this adequately if they also manage large portfolios. There are limited hours in a day. 100 entities is 100 AGM’s, before you do anything else. In my experience, every AGM, from prep, committee communications and approvals, budget, admin, meeting and follow up work takes approx. 7 hours. 100 of them is half a working year completing this one task per client. It’s a lot of work and many managers are expected to this and train team members. How?

    What I’ve taken the most from both episodes is that owners can ‘shop around’ to find a service that best suits your needs. There are providers who see themselves strictly as administrators, and as such are outstanding at this aspect of strata management, and others who want to form community and connection, which takes time, and costs more. It’s up to each OC to decide which service suits their needs and they are willing to pay for.

Post a Comment

Your email address will not be published. Required fields are marked *