Watch the recording at the bottom of the page.
Thursday’s webinar was the most well attended event in Australian strata history with over 1,000 people registered to attend. Diverse views about the future of strata management fees, and the industry generally were expressed. Here’s what I had to say.
- Strata management fees vary little between states. Melbourne-based fees may be a bit higher. Most use the traditional model of base fees, fixed disbursements, and insurance commissions.
- Service offerings are terribly homogonous within states and across the country. Most strata managers describe their services. They do not explain the outcomes or the value they deliver to owners.
- A few smaller, younger firms are building businesses without relying on insurance commissions. This is a key point of difference. Again, innovation here is most evident in Melbourne.
- Collaboration by strata managers on fees across the nation, and via various peak bodies, has mostly been whining about how hard done by they are by strata owners who want more service for the same or lower fees. My message to strata managers is this. Despite your demands for respect and higher fees on LinkedIn, strata owners won't suddenly declare, 'OMG! We should pay our strata manager more. I must hold a committee meeting to pass this!'
- Respect as a professional is earned, not demanded. The public decides if a job is a profession or an occupation. It’s not by government licensing. And not by some toothless professional standards scheme, the real purpose of which is to limit liability for negligence.
The answer to a fair and sustainable fee base for strata managers is simple, but it’s not easy. Strata managers must better explain what they do. They must show how their services deliver outcomes for clients. This is achieved incrementally. By small things done on a daily basis. Like delivering detailed monthly accounts of achievements. And, not paying yourself until endorsed. Also, making thoughtful presentations at AGMs and contract renewals. It also takes bravery to say no – I won’t be taken for granted and work for peanuts.
If you missed the webinar, you can catch up here.
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.
.png)