Common Myths about Strata Managers

admin | Posted on Wednesday, January 3rd, 2018

There are several myths about strata managers that have been floating around as long as strata schemes
have existed! If you’re new to strata living or are unsure about what a strata managing agent actually does,
it’s a good time to separate the fiction from the fact. Here, we address the common misconceptions about
strata managers.

Myth 1: Every strata scheme needs a strata managing agent.
While strata managers make strata living easier for hundreds of thousands of residents across Australia,
they are not mandatory. Your owners corporation may choose to self-manage the strata scheme itself.
However, if the scheme has more than a few lots then management can get complex and take up a lot of
time for the secretary and strata committee. Administration includes arranging insurance, keeping records
and meeting fire and safety regulations as per the Strata Schemes Management Act 2015 and other
legislation. For many strata schemes, it’s much easier to appoint a strata manager and let them handle these

Myth 2: Strata managers choose your strata levies.
You and other lot owners are in charge of your strata levies, not the strata managing agent. While strata
managers can prepare recommendations and budgets regarding the strata fees, these are ultimately
decided by the owners corporation. Levies and budgets will be calculated and presented with the notice of
the Annual General Meeting, then only passed if voted in by a majority vote. Strata managers cannot set
levies, delegate their authority to others or decide on matters that would require a special or unanimous

Myth 3: Strata managers maintain individual units.
This one is a common misconception; however, strata managers are not the same as property managers. A
property manager is the intermediary between a tenant and landlord who collects rent and manages the
property. A strata manager, on the other hand, manages the collective aspects of a strata scheme. That
means that if you are renting a unit within a strata scheme and have a problem with your sink leaking, you
will need to either contact the landlord or their property manager rather than the strata manager. If the
problem originates in a common area such as a corridor, then this is when the strata manager should be

Myth 4: You’re stuck with a terrible strata managing agent.
You won’t be stuck with them for good, and if you feel this way then there’s a very good chance your strata
scheme should be changing managers. Your strata managing agent should be making life easier,
streamlining your administration matters and minimising costs through effective management. The good
news is that if you aren’t happy with your managing agent, their term is limited to three years in New South
Wales. You can contact Real Property Services today and make arrangements for a motion to vote in a new
strata manager via an ordinary resolution.

CATEGORIES strata laws