Why strata management companies fire their clients

Perhaps you’ve just been fired by your Strata management company, or you’ve been told by your current strata management company to start looking for alternative providers. Don’t feel too bad as this is very common practice these days for a number of reasons.

Here are just a few of the reasons that Vancouver strata property management companies let their clients go:

1. Clients are paying “legacy” rates. With the escalating costs of rent, staffing, insurance, etc, many strata management companies now require minimums of $1500 or even $2000 per month just to remain profitable. If a strata corporation was used to paying a lower rate than this, they may be faced with the prospect of their fees increasing dramatically, or being forced to find an alternative strata management company.

2. Your Strata is too small. Many strata corporations under 50 units are going to have a challenge finding a management company willing to work with them. Look for a management company that specializes in smaller buildings, perhaps offering limited services. The reality is that Council may have to step up and do some of the work themselves. 

3. The Strata Management company is experiencing staffing challenges. Finding experienced licensed Strata Agents can be very challenging in the current environment, and there simply aren’t enough new licensees coming through the pipeline to keep up with the demand as many of the experienced strata managers are nearing the age of retirement. If the strata management company simply can’t handle the volume, then they will likely be looking to shed less profitable strata clients.

4. Strata Clients are using up too much of the strata management companies time. It’s important to remember that the time of the strata agent is not an unlimited resource, and they are likely splitting this between 10-20 other clients. If your strata is a “time vampire”, and using up more than your fair share of resources, then you can likely expect a notice of termination, or at the very least a hefty fee increase.

5. Clients are abusing the management company staff, or creating a negative environment. If your building has a couple of owners who are abusive towards the strata management company staff, this may be reason enough for them to terminate your agreement. Unfortunately every building seems to have one or two of these owners, and they can make things very miserable for everyone.

It’s important to remember, with so many new strata buildings being built in BC, Strata management companies have their choice of strata buildings to pick from, so be sure to stay off the “difficult” list. If you’re being bounced around from management company to management company, this is likely to raise eyebrows and may hurt the reputation of your building, and ultimately your resale and marketability value.

If you’re looking for some help managing your strata, please reach out to us here!



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