Managing-agent proposals can look similar on the first page while representing very different levels of service. One may include senior supervision, meeting support and digital case tracking. Another may quote a lower base fee but charge separately for work the estate regularly needs.
Why there is no single useful “market rate”
The required effort depends on estate size, age, facilities, operating hours, resident volume, staffing model, financial complexity, active projects and the condition of records. A meaningful proposal therefore starts with the estate—not a one-size-fits-all rate card.
Compare the staffing model
- Number and seniority of on-site personnel.
- Full-time, shared or visiting resources.
- Relief coverage during leave and staff turnover.
- Director or senior-management supervision.
- After-hours and emergency support.
Ask whether staff salaries and statutory employment costs are included in the quoted amount and what happens when the approved headcount changes.
Standardise the operating scope
Put every bidder against the same schedule: inspections, council meetings, general meetings, financial reports, collection work, vendor management, preventive maintenance, resident cases and compliance administration. Note the required frequency and expected output for each item.
Identify charges outside the base fee
- Additional meetings and extraordinary general meetings.
- Major-project or procurement-management fees.
- Software, resident portals and accounting systems.
- Printing, postage, storage and document retrieval.
- Banking, collection and legal coordination.
- Transition, data migration and opening-balance work.
Compare controls, not just deliverables
A report has limited value if the underlying records are late or cannot be reconciled. Ask how payments are approved, funds are separated, arrears are monitored, quotations are evaluated and exceptions are escalated. Controls reduce the cost of errors, delays and weak decisions.
Measure the cost of poor service
The lowest monthly fee may carry a higher estate cost if inspections are missed, arrears grow, contracts roll over without review or major works are poorly controlled. Councils should compare the fee against the consequences of understaffing, weak supervision and slow issue resolution.
Best practice for evaluation: create a three-column commercial sheet—base fee, predictable additional charges and variable/project charges. Place the staffing assumptions beside it.
Use a weighted score
Price should be one component of a wider evaluation. Other categories may include relevant experience, proposed team, transition plan, financial controls, reporting, facilities capability, governance support, technology and references. The weights should reflect the estate’s actual risks.
Questions to ask before award
- What important work is excluded?
- Which people are committed to our estate?
- What circumstances change the fee?
- Which services carry a percentage or project charge?
- Can we see sample reports and a transition plan?
- What service levels will be written into the agreement?
BCA’s Strata Management Guide on Managing Agents is a useful reference when councils review appointment, agreements and selection criteria.
Need an estate-specific proposal?
Bond structures the scope and commercial terms around your estate, so your council can compare like with like.