Isn’t it funny … how everyone is strata splaining managers?
Since the 2024 Strata Insurance Crisis broke 4 weeks ago strata managers are getting a lot of attention at the moment [good and bad] and that’s fine.
But it seems to have prompted a lot of strata experts, pundits, activists, ambulance chasers, vested interests, opportunists and boffins out of the woodwork with their 20% to 45% percent’s worth of opinions and advice. It’s also started a secondary discussion about strata managers not being paid enough and whilst they are under-appreciated relying on the proposition that these are the reasons why strata managers are taking insurance commissions.
So, in less than 1 month, we’ve already got the following examples of this kind of strata splaining.
There’s a slew of lawyers telling strata managers to be more ethical [like them] and abandon long term revenue sources, even where they give useful advice about the legal issues like Allison Benson’s throw away question/comment in an otherwise good article Insurances, Commissions and Kickbacks in our Strata & Community Title Schemes that:
‘given the lack of understanding of fiduciary duties and issues with disclosure should it ever be acceptable for a managing agent to obtain a benefit or service from a third party in the course of its duties to an owners corporation or association? It is better to outright prohibit this behaviour?’
There’s even one strata lawyer [Michael Kleinschmidt] telling strata managers to do a time and motion study in their businesses as if they haven’t done so and it will miraculously solve the problem in his article Strata Managers are undervalued and underpaid.
A prominent strata insurer that earns plenty from strata insurance [CHU] is running a business seminar on strata manager pricing strategies The Art of Selling Your Value by an old school B2B salesman. BTW … isn’t that another non monetary supplier benefit?
There’s Flat Chat Wrap is telling the ‘bad’ strata managers to be better with a smattering of specific criticisms and suggestions in the podcast Simple fixes that Strata Managers desperately need.
Plus, others are creating LinkedIn groups like Strata Management With Purpose - Ethics, Honesty, Objectivity, Community as a forum to workshop strata manager activities and remuneration that are full of other strata sector suppliers.
And, there’s plenty more.
Now, I like intelligent, informed and productive discussion about challenges, opportunities, and solutions facing the strata sector so I have no problem with non strata managers expressing opinions. But not with them telling strata managers what to do.
So, I’m calling out that non strata manager strata splaining here and now.
That’s because most of them have nothing useful to say about the actual underlying and important issues of strata insurance supply chains, coverage, and premiums; so, they’re mostly just saying ‘be better’ than you are. And, that discussion quickly morphs into rationalisation of the current state of affairs.
So, I suggest that everyone stop strata splaining, leave strata managers to sort things out for themselves, and, deal with their own issues.
Whether or not strata managers are paid too little, too much, or just enough [the goldilocks dilemma] is their problem to identify, address, and resolve. And, since they’re the ones taking insurance and other commissions and/or have special business arrangements with insurance and other suppliers, they can decide whether to continue, stop or change.
I respect strata managers enough [as a result of my dealings with them over 30+ years] to leave them sort it out.
After all, don’t these considerations apply to strata manager strata splaining right now?
1. Strata managers have everything to gain [and lose] so they need to decide about their future and fate. Plus, they know more about strata management than anyone else.
2. What do lawyers and other suppliers really know about running strata management businesses? Plus, they have their own vested interests in the strata sector to preserve which hardly makes them independent.
3. Strata insurers make more money than anyone from strata insurance and have benefitted from easier/cheaper customer and product distribution networks provided by strata managers for years. So, perhaps they’re also a bit self interested in preserving the status quo and any changes that might be made.
4. Strata sector commentators and pundits who want eyeballs or clicks, advertisers and subscribers, will typically promote simplistic and sensational, dramatic and extreme views and ideas.
5. The advice of bystanders who have nothing to lose is always abundant, but pretty worthless.
So, in the nicest possible way I say to all the strata managers: go and solve these problems for yourselves, you know best what you want, what you can [and can’t] do, and where you want to be.
Your future should be, and is, in your hands. And, good luck!
Just strata sayin …
April 26, 2024
Francesco ...