The world seems angrier since the pandemic. The rising cost of living isn’t helping. You see the signs everywhere. At my local Nab branch, ‘We will treat you with respect and ask that you treat us the same way’. There’s a more aggressive version in the Service NSW offices, ‘We have zero tolerance for abuse on disrespect of our staff. Police will be called to deal with offenders.’ I even saw one at the Darrell Lea chocolate shop in the city which begs the question, if you’re not happy buying chocolate, will you ever be?
Regardless of the effectiveness of these signs, they do convey the rising temperature of customers, and of course strata managers are well and truly in the firing line. Frankly, it seems many strata bosses don’t care and are working on the beatings-will-continue-until-moral-improves strategy. Many are paying lip service to protection of mental health of strata mangers but manageable portfolios and hard dollar investment in email reduction software and improved transparency of charges and service delivery is what is really required.
There are good reasons why strata principals should reflect on why strata managers are vulnerable to such abuse, and moreover, what can be done to reduce the risk -
- It’s the right thing to do, and it’s your duty under WHS laws.
- Staff turnover is more expensive than you think, and strata talent is scare.
- Absenteeism and toxicity in the workplace impact profitability.
So, what can be done to turn down the dial in strata?
One thing Safe Work Australia advises business owners to do is to manage customer expectations by clearly communicating the products and services you are providing.
On this front, you would have to say we are not doing that well. I reviewed a BigStrata management agreement for a 14-lot residential scheme with a base management fee of less than $5,000 and here’s what I found -
- 21 pages
- 27 related party service providers (with no disclosure of how they charge)
- 62 items of charge
This is the standard form of agreement for many strata managers. Whose fault is it that owners don’t know what we do?
Check out ‘This Weeks Win’ below for a good way to communicate what you do and how little owners really pay for your service.
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
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