Appointing strata managers and other workers

Strata managers and building managers help with the day-to-day running of a strata scheme. How to appoint and remove strata and building managers.

Last updated: 12 December 2023

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Key information

Strata and building managers are usually appointed at annual general meetings (AGMs). Other workers are usually hired without the need for a vote.
Owners corporations can remove managers if the job is not being done properly, but there is a process to follow.
If owners corporations don’t carry out their tasks properly, the NSW Civil and Administrative Tribunal (the Tribunal) may appoint a strata manager.

Hiring a strata manager

Owners corporations decide if they want a strata manager to help with the day-to-day running of the scheme.

The owners corporation can delegate some of its duties to the strata manager. This can include the duties of treasurer, secretary and chairperson.

Not hiring a strata manager can save some money but will require the strata committee spend more time managing the scheme.

What a strata manager can do

The owners corporation should decide what tasks they want the strata manager to do.

Examples of strata manager tasks are:

issuing a notice to follow a by-law
giving a strata information certificate to interested buyers (within 14 days of a written request)
keeping and updating records
arranging records for an owner or person to look at
organising and sending meeting notices
telling people they have a ‘priority vote’ and when and how they can use it
making sure fire safety inspectors can access all parts of the property when doing inspections
giving copies of a Tribunal application to all owners
giving all residents at least five days’ notice before a pesticide treatment is used.

A strata manager can’t:

change by-laws
remove a strata committee member
hire a building manager
set levy amounts.

How to choose a strata manager

The owners corporation should get a quote from three or more different strata managers or strata managing agencies.

As well as cost, consider:

who you would be speaking to and how experienced they are. Ask to speak with them before deciding
how the fees work
how long it takes to answer questions
conditions in the contract. What would happen for you to change strata manager before the contract ends?
reference checks and any reviews.

Appointing a strata manager

To appoint a strata manager, the owners corporation needs a majority vote at the annual general meeting (AGM). If owners cannot wait for an AGM, they can hire a strata manager via an extraordinary general meeting (EGM).

First, you choose a strata manager.

They will provide their draft management agreement. Pay attention to the contract terms, which can be negotiated. This is the case even if the strata manager says the contract has ‘standard terms’.

Before the AGM, the secretary must attach the draft management agreement to the agenda.

This gives owners time to consider the contract terms.

Learn more about how general meetings and voting works

Length of management agreements

If a strata manager is appointed at the very first AGM of the owners corporation, the appointment can only be for 12 months.

After that, strata management agreements can go for up to three years.

A strata manager must give notice of the expiry of their agreement between three to six months before the expiry date.

A strata manager can be appointed after the old agreement ends. This involves a vote at an owners corporation meeting (for example, the AGM).

If a strata manager’s contract ends before the next AGM, the strata committee can extend it up to three months at a time until the AGM happens. A strata manager must give at least one months’ notice before the end of the extension term.

If the strata committee extends the appointment but decides not to extend again, or not to re-appoint the strata manager, they must give the strata manager at least one month's written notice.

In some cases, the strata manager can also extend their agreement for an extra three months. The agent must write to the owners corporation to tell them if they are using this option.

They can only do this if their agreement was for three years and:

the owners corporation chose not to reappoint the agent and doesn’t want to extend the appointment, but
they did not give the strata manager three months' written notice that their contract would not be renewed.

Removing a strata manager

Sometimes, an issue can’t be solved directly with the strata manager. The owners corporation may then wish to end their management contract. The owners corporation may handle this or escalate it to the Tribunal.

The owners corporation might choose to remove a strata manager if:

there is an ongoing issue with contacting the strata manager
facilities aren’t being maintained
finances aren’t being managed properly
the agent hasn’t properly disclosed information about their commissions.

Review the terms of your management contract

The management contract will say when and how you can end your agreement.

A copy of the strata managing agent agreement must be available to the owners corporation at all times.

The owners corporation should look at the contract carefully. Check what the early termination conditions are and how they apply to your case.

If the options to end the agreement seem unreasonable, you should consider whether to apply to the Tribunal.

Add a motion to your next general meeting

If you decide to remove a strata manager, you will need to pass a motion at the next AGM.

You can wait for the next AGM if it is not too far away. Otherwise, call an EGM if you wish to move forward quickly.

The motion will need a majority vote to pass.

Tell your strata manager

If the motion is successful, you must write to the strata manager to tell them.

You will need a handover between the outgoing and new strata manager. If you don’t have a new one, the handover will be to the strata committee.

Ending your management agreement through the Tribunal

The owners corporation may apply to the Tribunal to resolve the dispute. For example, you might do this if there are issues with the terms of the management agreement.

For general information about the dispute resolution process, including applying to the Tribunal, visit the disputes page.

Compulsory appointment of a strata manager

If an owners corporation isn’t completing its duties, the Tribunal may appoint a compulsory strata manager.

The Tribunal can appoint a nominated person as a strata manager to carry out:

all jobs of an owners corporation
all jobs of the strata committee and/or the chairperson, secretary or treasurer
only some of those jobs.

The Tribunal can appoint a strata manager if the owners corporation:

isn’t doing its work properly – for example, not keeping proper financial records
has not complied with an order – for example, a Tribunal order for the owners corporation to install window locks
has failed to perform one or more of its duties – for example, not doing repairs and maintenance
owes a Tribunal judgement debt.

From 1 November 2024, Fair Trading can also apply to the Tribunal for the compulsory appointment of a strata manager in response to severe mismanagement of a strata scheme.

Fair Trading will only consider using this option as a last resort, following an investigation.

Strata lot owners must continue to follow the established processes for dispute resolution. This may include making their own application to the Tribunal for compulsory appointment of a strata managing agent, if they believe the scheme is not functioning properly.

For general information about the dispute resolution process, visit the disputes page.

Hiring a building manager

To hire a building manager, the owners corporation needs a majority vote at the annual general meeting (AGM). If owners cannot wait for an AGM, they can hire a building manager via an extraordinary general meeting (EGM).

Building managers must be appointed in writing. They must tell you if they are:

connected with the original owner or developer
have any financial interest in the strata scheme.

Length of building manager agreements

A building manager agreement can last up to 10 years. After it ends, the building manager may be re-contracted.

Sometimes, a building manager is appointed before an owners corporation starts.

If they were hired before the first AGM, then the building manager agreement ends at the first AGM. The same or a new building manager can be hired, if needed.

Removing a building manager

You might decide to remove the building manager – for example, if they are not performing their job well or if they are not needed for the scheme.

The owners corporation can end a building manager agreement at a general meeting.

Review the terms of your contract

Your reason for removing the building manager will affect how you can end their agreement.

Read the building management agreement. It will say why you can end an agreement early. It will also include the steps to do it.

If the options to end the agreement seem unreasonable, you should consider whether to apply to the Tribunal.

Add a motion at your next general meeting

If you want to remove the building manager, you will need a majority vote at an annual general meeting, or an exceptional general meeting if you can't wait for the AGM.

Learn more and meetings

Tell your building manager

If the motion is passed, you must tell the building manager. Follow the process for this in the management agreement.

Ending your building management agreement through the Tribunal

The owners corporation can apply to the Tribunal to end a building manager agreement.

For general information about the dispute resolution process, including applying to the Tribunal, visit the disputes page.

Hiring other workers

The strata scheme may need to hire other workers or tradespeople. This can help with day-to-day tasks, repairs and maintenance. Examples include gardeners, cleaners, security, a concierge and repair workers.

The owners corporation can also have the strata committee or strata manager hire these workers, if it wishes.

Some strata managers will have preferred people to do the work.

When hiring other workers, you should think about:

if the work is urgent or needs a licensed tradesperson
your work health and safety obligations (if the workers are not contractors)
the insurance you might need, such as personal liability
including future costs in the annual budget.

Check whether you have planned in the budget to pay for the workers. Try to get different quotes to see how much the work will cost.

Large schemes have extra financial rules.

For example, they need at least two quotes for items more than $30,000. Also, if an item is more than 10% of the amount estimated at the AGM, the owners corporation must meet and agree to the cost in a majority vote.