Body Corporate ManagerIssues

Exit fees charged by Body Corporate Managers

This month we took on a new do-it-yourself client who had been using a Body Corporate Manager.  Their principal reason for moving away from the Body Corporate Manager was the significant exit fee stated in their proposed new contract.  The Committee would have happily signed the new contract provided the exit fee clause was struck out.  The Body Corporate Manager refused.

We do not have exit fees in our contracts, nor do we think that they are appropriate.  The work required to finalise a Body Corporate is very simple since most Body Corporate Managers use computer programs that keep all records up to date.  Finalising a Body Corporate can be completed in a couple of clicks of a mouse.

In truth, the biggest expense for a Body Corporate Manager is when a new client is onboarded.  Everybody wants a new client!  It can be very time consuming to recreate all the client’s records in a new system.  Matters are worsened when trying to recreate lot ledger balances when penalties, discounts and lot expenses are in play.  When transferring from another Body Corporate Manager, sadly the records are often passed over in a paper imaged format.  Unnecessary data entry is then required when the records could have been passed over in a simple spreadsheet format.

In order to win business, most Body Corporate Managers do not charge an entry fee when a new client is onboarded.  When they leave, some Body Corporate Managers try to make up for that with exit fees.

Tracsafe charges no entry or exit fees for our full service clients.