If you are reading this then you have probably seen or heard about the 2024 Four Corners episode on ABC that focused on unethical business practices by some in the strata management industry. Unfortunately, many of the practices were already well known in the industry and are more common than the public would expect.
Direct Strata Management was established in 2021 based on values that oppose the questionable ways of these firms. This is through transparent business processes, high-touch client focus and a sustainable form of strata management that benefits both our clients and staff.
Direct Strata Management’s transparent management model is far more inclusive than our competitors who typically have many hidden costs. We differ from the examples shown on the Four Corners Episode through the following practices;
- We do not have any joint-venture arrangements with brokerage companies to derive profits from the placement of insurances. This was a major part of the Four Corners story that exposed strata managers taking commissions and undisclosed joint-venture broker arrangements. We work with several brokers and do not have any financial incentives to do so and are happy to work with any broker chosen by our clients.
- We do not have any financial relationships or connections with service providers as highlighted on the Four Corners story. The story exposed many agencies having undisclosed interests with builders, contractors, fire safety companies and building management firms.
- We do not have arrangements with property developers. From the time of strata scheme registration, the owners’ corporation are our client, and our duty is with them.
- There was a common theme reported throughout the Four Corners story that strata owners were finding unauthorised ‘mystery’ payments in their accounts. Direct Strata Management’s transparent owner platform allows clients to approve all payments before they are made whilst also having 24/7 access to online financial statements through our strata app.
- The industry benchmark for buildings managed per strata manager is over 80. This is not a sustainable business model its neglected staff who can only provide a reactive service, rather than a proactive service for their clients. Direct Strata Management provides an ethical workplace where our strata managers do not look after more than 30 strata schemes per manager. By providing a caring and supportive environment for our staff, we can maintain a 100% staff retention rate. This means you receive consistent service without a constant rotation of ‘burnt out’ strata managers who don’t know anything about your property.
Direct Strata Management are proud that we can continue to hold our head high and continue to grow a business based on clients seeking good old fashioned customer service and honesty. Thank you to all our clients for their support.
Nicholas Johnson – Managing Director
31 March 2025