How to Change Your Strata Manager: A Step-by-Step Guide

The complaint had been on the agenda three times. The lift had been faulty for eleven weeks. Emails to the strata manager had been acknowledged - once - then silence. The insurance renewal came in 18% higher than last year with no explanation, no alternative quotes, and no response to the committee's queries. At the last AGM, someone finally said out loud what half the room had been thinking: "Can we actually get rid of them?"

The answer is yes. And it's more straightforward than most owners realise.

You Have the Right to Change

Your body corporate - the legal entity made up of all lot owners - engages a strata management company under a contract. Like any contract, that contract has terms, notice periods, and termination provisions. The body corporate is the client. You have the right to end that relationship.

What often stops committees from acting isn't lack of legal authority - it's uncertainty about the process, concern about disruption, and sometimes a vague worry that the manager will make things difficult during the transition. None of these are insurmountable. Thousands of Australian bodies corporate change managers every year.

Common Reasons Committees Change Managers

Poor performance is the most common trigger, but there's a wide range of legitimate grounds:

• Unresponsive communication - ignored emails, delayed responses to maintenance requests, committee queries going unanswered for weeks
• Conflict of interest - managers who regularly refer work to related-party tradespeople at above-market rates
• Financial opacity - difficulty getting clear information about bank account balances, levy collections, or expenditure
• High management fees - particularly where services have not kept pace with fee increases
• Repeated errors - incorrect levy notices, missed insurance renewals, AGM notices sent late or not at all
• Poor contractor management - maintenance not followed up, quotes not obtained, work not inspected

You don't need to prove misconduct to change managers. Dissatisfaction with performance, or simply wanting a fresh start, is enough.

Step 1: Check Your Current Contract

Before anything else, get a copy of your strata management agreement and read the termination clause. Key things to look for:

• Notice period - typically 30 to 90 days, but some contracts specify longer
• Termination for convenience - most contracts allow the body corporate to terminate without cause, subject to notice
• Early termination fees - some contracts include fees if terminated before the end of the initial term
• Automatic renewal clauses - contracts that roll over automatically if not terminated within a specified window

The contract should be held by the body corporate. If you can't locate it, you're entitled to request a copy from the manager.

In most states, strata management contracts cannot bind a body corporate beyond a maximum initial term - typically one to three years - without a fresh vote of owners. Automatic rollovers that have extended the contract for many years without owner approval may be challengeable.

Step 2: Pass a Resolution at a General Meeting

Terminating a strata manager requires a decision of the body corporate, not just the committee. In most states this is an ordinary resolution - a simple majority of votes cast at a general or special general meeting.

Two paths:

1. At your next AGM - if one is coming up within a few months, include the management agreement as an agenda item. This is the simplest path if timing allows.

2. Call an Extraordinary General Meeting (EGM) - if you can't wait, any owner (or the committee) can requisition an EGM. The committee can also call one directly in most jurisdictions.

Motions should clearly state: (a) that the current management agreement is to be terminated, with notice given as required by the contract; and (b) authority for the committee to engage a replacement manager.

Step 3: Give Formal Notice

Once the resolution is passed, give written notice of termination to the manager in accordance with your contract. The notice should:

• Be in writing (email plus registered post is safest)
• Specify the effective termination date, allowing for the required notice period
• Reference the resolution passed at the meeting
• Request confirmation of receipt

Keep a copy of everything.

Step 4: Select a Replacement

Ideally your replacement manager should be selected before or at the same time as the termination - you want a handover, not a gap. When selecting a replacement:

1. Get at least three quotes - compare management fee structures, services included, and response time commitments
2. Check licensing - strata managers must be licensed in each state. Verify their licence status with the relevant authority (NSW Fair Trading, Consumer Affairs Victoria, the Office of the Commissioner for Body Corporate and Community Management in QLD, Building and Energy in WA, etc.)
3. Ask for references - particularly from schemes of similar size to yours
4. Review the proposed contract carefully - pay close attention to notice periods, fee escalation clauses, and what happens at termination
5. Check for conflicts of interest - does the manager receive commissions from insurance or contractors?

Step 5: Manage the Transition

The outgoing manager is legally required to hand over all records, financial accounts, correspondence, and funds held in trust. A clean handover requires:

• Setting a clear handover date in writing
• Obtaining written confirmation of all files and funds transferred
• Updating bank account signatories promptly
• Notifying service providers and owners of the change
• Confirming all outstanding maintenance, insurance renewals, and open correspondence are either completed or formally handed over

The outgoing manager remains responsible for day-to-day management during the notice period - they shouldn't disengage early, and your new manager steps in the moment the notice period expires.

Most transitions are completed without significant disruption. The outgoing manager has professional obligations to facilitate a clean handover, and most do.

What Each State's Law Says

The broad process is similar across Australia, but the legislation differs:

• QLD: Management agreements are governed by the Body Corporate and Community Management Act 1997. Contracts are subject to prescribed maximum terms. The BCCM Commissioner's office can assist with disputes.
• NSW: Strata managing agents are licensed under property services legislation and subject to the Strata Schemes Management Act 2015. Disputes about handover can be referred to NSW Fair Trading or NCAT.
• VIC: Managers are licensed under real estate legislation and subject to the Owners Corporations Act 2006. Disputes go to Consumer Affairs Victoria or VCAT.
• WA: The Strata Titles Act 1985 (reformed in 2020) applies. Managers must hold a licence under the Real Estate and Business Agents Act.
• SA, TAS, ACT, NT: Similar general principles apply - check your state's community titles or strata legislation for specifics on voting thresholds and contract terms.

In every jurisdiction, the body corporate retains the right to end a management relationship. The mechanics differ; the principle doesn't.

Key Takeaways

• You always have the right to change - dissatisfaction with performance is sufficient grounds. You don't need to prove misconduct.
• Read your contract first - notice periods and termination clauses determine your timeline.
• You need a general meeting resolution - the committee cannot terminate a manager unilaterally in most states.
• Line up your replacement in parallel - a good handover is better than a gap.
• Document everything - written notice, signed handover confirmation, and a clear record of all files and funds transferred.

Related Reading

Governance and management:

• How to Choose a Body Corporate Manager
• Is Your Strata Manager Taking Secret Commissions?
• Body Corporate Committee Performance: How to Evaluate and Improve

Disputes and rights:

• How to Deal with Body Corporate Disputes
• Body Corporate By-Laws: Everything You Need to Know

Compare body corporate fees across Australia at BodyCorporateFees.com.

This article is for informational purposes only and does not constitute legal advice. Strata management legislation varies by state and territory. If you are dealing with a disputed termination or a manager who is not cooperating with handover, seek advice from a strata lawyer or your state's consumer protection authority.