Appointing strata managers and other workers

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
• make a decision on a payment plan request
• make a decision on a request to waive interest.

How to choose a strata manager

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

Consider these items in addition to costs when choosing a new strata manager:

• 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. How would you 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.

If the fees are expected to be more than $30,000, the secretary must attach two independent draft management agreements

Check that any new management agreement from 1 October 2025 does not have: 

• terms that require the owners corporation to pay for the agent’s professional indemnity liability, including insurance excess
• terms that limit the agent’s liability to a specific amount. This is only allowed if the agreement is covered by a professional standards scheme approved by the Professional Standards Council.

If the agreement contains these terms, talk to the strata managing agent and ask that the terms be removed. 

Check the contract for any potential unfair contract terms. For example, terms that require the owners corporation to pay an excessive amount in charges for ending an agreement. Learn more about unfair 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.

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 or where the strata manager acts unlawfully.

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. Before being appointed, they must tell you if they:

• are connected with the original owner or developer
• have any financial interest in the strata scheme
• may receive a benefit that affects the fees that they will charge under the building manager agreement.  

A benefit includes a referral fee, commission or a direct or indirect benefit.  

For example, this would include telling the owners corporation that they expect to receive a referral fee from the cleaning company they will nominate after they are appointed as building manager.

Before you choose a building manager, they will provide their draft agreement. Pay attention to the contract terms, which can be negotiated. This is the case even if the building manager says the contract has ‘standard terms’.

Before the AGM, the secretary must attach the draft agreement to the agenda. This gives owners time to consider the contract terms.

If the fees are expected to be more than $30,000, the secretary must attach two independent draft agreements.

Check the contract for any potential unfair contract terms. For example, terms that require the owners corporation to pay an excessive amount in charges for ending an agreement. Learn more about unfair contract terms.

Building manager duties

Building managers have duties under the strata laws that regulate their conduct. Substantial penalties may apply where a duty is breached.

These duties are to:

Act in the owners corporation’s best interest (unless doing so would be against the law).

Act promptly and with due diligence to –  

• bring the owners corporation’s attention to any maintenance, repair or safety issue with the common property that the manager is aware of. This includes both a problem that the building manager becomes aware of (e.g. a lift outage), as well as a problem that the building manager ought to be aware of (e.g. that the regular maintenance of the lift is overdue).
• propose to the owners corporation how a problem should be addressed. For example, recommending a plumber comes to repair a persistent leaking pipe.

Give written notice of benefits and connections when suggesting a contract  

• If the building manager will receive a benefit in relation to a contract they are suggesting to the owners corporation, the written notice must include the person who will provide the benefit, and the monetary value of the benefit or the method of calculating the value.  
• If the person the contract would be with is connected with the building manager, the written notice must include the nature of the relationship between the building manager and that person.

Disclose any relationships and financial interests  

• A building manager must promptly give written notice to the owners corporation if the building manager:  
  • is connected with a supplier of goods or services for the strata scheme. The notice must include what goods and/or services are provided by the supplier, and the nature of their relationship to the building manager.  
  • is connected with the original owner of the strata scheme. The notice must include the nature of the relationship between the building manager and the original owner.
  • has a direct or indirect financial interest in the strata scheme. The notice must include the nature of the financial interest.  

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. 

Ending your building management agreement through the Tribunal

The owners corporation can apply to the Tribunal to change or end a building manager agreement on certain grounds. This includes where the building manager acts unlawfully in their role. For example, breaching a duty under strata laws.

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. It's a good idea to get multiple quotes to get an accurate estimate of how much the work will cost. You will need at least two independent quotes for items more than $30,000.

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.

Popular pages

Helpful links

Join our mailing list

Find out about strata announcements, recently published resources and more. You can also subscribe to other newsletters of interest.

Sign up to the Strata and community scheme updates newsletter