When do you need a compulsory strata manager?

If your owners corporation has been unable to live up to the task or needs help with technical matters, it’s time to look for the right strata managing partner. Mismanagement of a strata property not only affects the quality of life but also affects the market value of the property.

compulsory strata manager

According to NSW state strata laws and regulations, every strata property should be compliant and well-managed by an owners corporation and their elected committee. If this is not the case, you may need to appoint a compulsory strata manager.

What is compulsory appointment of a strata manager?

If there’s a dire need for getting your strata matters in order, a strata managing agent may be compulsorily appointed by the NSW Civil and Administrative Tribunal (NCAT). This usually happens when the owners corporation:

  • is being negligent of its duties
  • is non-compliant with the state law and regulations
  • is mismanaging funds
  • is ignoring orders

What is the compulsory strata manager’s role?

The manager can perform all or some of the functions of an owners corporation, committee and office bearers. These responsibilities are agreed upon by the owners and the contract is formalised by the Tribunal so that there is clear authority and responsibilities outlined for the strata manager.

What should you do as an owner?

  1. Be aware of the law. First things first, know your rights and responsibilities as per your state law. Strata properties have common areas that are jointly owned by all owners. Hence, it is mandatory that there be a process and due procedure to maintain and manage the property correctly.
  1. Take the help of professionals. Strata managers can work closely with your committee and take much of the burden off their shoulders with respect to day to day management and administration. They can also keep you aware of industry and legislative matters that impact your property – what laws apply to you, what changes have come into place over time, what are the key dates and deadlines you need to watch out for to remain compliant and so on. They also have the right contacts with industry professionals and tradesmen to take care of your maintenance and repairs work that is a huge part of strata living.
  1. Choose the right manager. You have a say in who you appoint as a manager. It’s hard to be sure right from the start, but while evaluating strata companies and agents, looking at their service history and track record should help you get started.
  1. Try the strata manager’s services for a year. As per NSW state law, strata managers can be appointed in an Annual General Meeting (AGM) for a 12-month contract term. If you’re happy with their work, you can choose to extend their contracts for a maximum of another two years.


Lastly, remember that when it comes to a compulsory appointment that you should take care to define the terms of the contract and decide the responsibilities carefully. While it is okay to trust the strata manager’s expertise and let them run the show, you as an owner should not feel powerless – it is after all your property and asset.

Looking to get a strata manager on board? Get in touch with us to try our free assessment.

You can also send us any question you have at http://stratafaq.com.au/ or subscribe to our newsletter to know more about strata property matters.