Strata Managers: When and How to Engage Professionals
Note: This article is intended as a general guide only, and should not be taken as legal or professional advice. It’s essential to consult with a qualified professional or seek advice from your managing agent if you have specific questions or concerns about strata living.
The One-Minute Guide to Engaging Strata Managers
If you only read one section, here are the essentials:
What they do – Strata managers are professionals who handle the administration, finances, and compliance of strata schemes.
When to engage – Large or complex schemes, frequent disputes, or when owners lack the time or expertise.
How to choose – Check qualifications, understand fees, and confirm services cover your scheme’s needs.
Key benefits – Professional expertise, time savings, smoother dispute resolution, and better governance.
Why it matters – The right strata manager helps schemes run smoothly, stay compliant, and protect property value.
Not every Owners Corporation (OC) has the skills or appetite to manage a strata scheme effectively. From collecting levies to handling disputes, responsibilities can quickly become overwhelming – especially in large or complex buildings.
A good strata manager lifts this burden. They handle the admin, finances, and compliance so owners can focus on decision-making. Choosing the right manager – and knowing when to engage one – is critical to keeping your strata scheme on track.
This article covers:
- When to engage a strata manager.
- How to choose the right professional.
- The benefits they bring to your scheme.
When to Engage a Strata Manager
While some small schemes can self-manage, many find professional help invaluable. Situations that call for a strata manager include:
- Complex schemes – Large buildings or mixed-use developments with extensive facilities.
- Disputes – Ongoing conflict between owners or with the OC.
- Lack of expertise – Owners who don’t have the skills or time to handle finances, compliance, and contracts.
Who Needs to Know This?
- Lot Owners – Essential: Decide collectively whether your scheme needs management.
- Committee Members – Critical: Must evaluate when professional support is required.
- Strata Managers – Essential: Provide solutions to complex or disputed situations.
- Prospective Buyers – Helpful: A professionally managed scheme often signals stability.
TL;DR: Engage a strata manager when your scheme is complex, disputed, or beyond the expertise of owners.
Read more: Owners Corporation: Understanding the Central Legal Entity.
How to Choose the Right Strata Manager
The quality of management varies, so careful selection is key. When engaging a strata manager, consider:
- Qualifications – Ensure the manager is licensed in NSW and has proven experience.
- Fees – Understand management fees, disbursements, and any hidden charges.
- Services – Confirm the manager covers what your scheme needs, from financial reporting to dispute resolution.
- Contracts – Review termination clauses and authority limits to avoid future conflicts.
Who Needs to Know This?
- Lot Owners – Essential: Your levies pay for management services, so value for money matters.
- Committee Members – Critical: Must negotiate contracts and set service expectations.
- Prospective Buyers – Helpful: A well-chosen manager signals a well-run scheme.
TL;DR: Check a manager’s qualifications, fees, and service offering before appointing them.
Read more: Strata Committee: Roles and Responsibilities.
Benefits of Engaging a Strata Manager
Hiring a professional manager can transform how smoothly a scheme runs. Benefits include:
- Expertise – Access to legal, financial, and compliance knowledge.
- Time-saving – Owners and committees can delegate day-to-day administration.
- Dispute resolution – Professional mediation reduces tension and conflict.
- Better governance – Ensures compliance with NSW law and sound financial practices.
Who Needs to Know This?
- Lot Owners – Essential: Directly benefit from professional support and reduced stress.
- Committee Members – Critical: Can focus on decision-making, not admin.
- Tenants – Helpful: Benefit indirectly from well-managed buildings.
- Prospective Buyers – Valuable: A professionally managed scheme is often more attractive.
TL;DR: Strata managers bring expertise, save time, resolve disputes, and strengthen compliance.
Read more: Financial Management: Levies, Funds, and Budgeting.
Common Pitfalls in Engaging Strata Managers
Not every arrangement works out perfectly. Watch out for these issues – and the better alternatives:
- Choosing on cost alone – Cheapest is rarely best → Balance cost with experience and service quality.
- Lack of transparency in fees or contracts – Insist on itemised contracts and clear terms.
- Poor communication between manager and OC – Set expectations for regular reporting and updates.
- Failing to review performance regularly – Schedule annual reviews to ensure accountability.
- Over-reliance on the manager – Owners and committees should stay engaged in decision-making.
Important: If you’re considering engaging a strata manager, review their license, service agreement, and track record. For full details, consult the Strata Schemes Management Act 2015 (NSW).
