Choosing a new strata manager can affect how smoothly your body corporate handles meetings, records, levies and day-to-day administration. In Queensland, the usual term is body corporate manager, although many owners search for “strata manager”.
A body corporate can engage a body corporate manager to provide administrative services. Before recommending or appointing one, your committee should be clear about what your scheme needs and what each proposed manager will provide.
What questions should you ask when choosing a new strata manager?
Start by deciding what you want your next manager to do. Consider:
- How much support does your committee need?
- How often will the manager need to communicate with owners and committee members?
- Does your scheme need help with meetings, levies, records, maintenance coordination or insurance administration?
- What problems are you trying to resolve by changing managers?
- What would successful service look like after the appointment?
Your scheme’s service needs can affect the level of management attention and cost. Be realistic about the time and support your body corporate will need, then explain those expectations to each provider.
Ask each proposed manager:
- How many schemes do you currently manage?
- What experience do you have with schemes similar to ours?
- Who will be responsible for our scheme?
- How will issues be escalated if the usual contact is unavailable?
- Can you provide references or examples of comparable schemes?
A body corporate manager can only perform the duties and exercise the authority set out in the written engagement. If your scheme has a committee, the manager is engaged to help the committee, and the committee’s powers are not removed by giving the manager authority.
What services are included in the management agreement?
Do not compare proposals by the annual fee alone. Management agreements may include agreed services in the annual fee and charge separately for additional services.
Ask for a clear schedule showing:
- meeting and minute preparation
- levy notices and financial administration
- record keeping and information requests
- correspondence with owners and committee members
- maintenance coordination
- insurance administration
- assistance with general meetings
- charges for additional meetings, work or documents
- services the provider cannot offer.
Some providers may advertise lower annual fees while charging separately for additional services. That does not automatically make the proposal unsuitable, but you need to understand the likely total cost for your scheme.
Check which services are included, which attract extra charges and whether the manager can provide them. Ask for examples of situations that would trigger an additional fee. Work outside the agreed duties may be charged separately, while legal interpretation should be referred to a suitably qualified professional.
A body corporate manager should not be treated as a substitute for legal advice. If your committee needs advice about an agreement, dispute or legal obligation, ask a qualified professional rather than relying on a manager to interpret the law.
How will your body corporate access records and receive support?
Owners may need to inspect or obtain copies of body corporate records, including financial information, minutes and insurance documents. Ask how the proposed manager handles requests and how the records will be delivered.
Under the Body Corporate and Community Management Act 1997, eligible people can request access to body corporate records. An owner must make a written request and pay the applicable fee, while committee members are entitled to reasonable access to inspect records without paying a fee.
Ask each provider:
- Who receives record requests?
- How are requests recorded and followed up?
- Can owners inspect records, request copies or do both?
- What fees apply?
- Are some records held by another provider?
- How will historical records be transferred if the manager changes?
The body corporate may charge prescribed fees for access or copies, but it cannot add other costs for providing the information, such as a charge for the body corporate manager’s time.
You can also ask how owners will receive routine communication, meeting papers and financial information. Look for a process that is clear and practical for committee members and lot owners.
For more information, read our guide to accessing body corporate records.
Who will manage your scheme and what backup is available?
Meet the person who is likely to manage your scheme, rather than only the person presenting the proposal. Ask about their knowledge, experience, communication style and availability.
A strong working relationship with the manager can help your body corporate operate effectively. You should feel comfortable raising concerns and asking for an explanation when something is unclear.
Also ask:
- Who will be your usual contact?
- Who covers the role during leave or illness?
- Is there an accounts or compliance team?
- Who coordinates maintenance and insurance matters?
- Who can make decisions or respond if your usual manager is unavailable?
- How will you be told if your manager changes?
Larger firms may have dedicated accounting, compliance, maintenance and insurance teams. Smaller firms may offer more tailored or flexible service. Neither structure is automatically better for every scheme. Check whether the provider has enough expertise and backup to maintain service while giving your scheme appropriate attention.
Ask how many schemes the proposed manager personally handles and what support they receive. A capable manager with too many schemes may not be able to give your body corporate the attention it needs.
How should you compare management fees and contract terms?
Compare the proposals against the same list of required services. A lower base fee may not be cheaper if your scheme regularly needs services charged separately.
Before recommending an appointment, check:
- the annual management fee
- additional service charges
- meeting and document fees
- payment timing and review provisions
- duties and authority
- insurance and conflict disclosures
- the engagement term
- renewal arrangements
- termination rights and notice requirements
- what happens to records when the engagement ends.
The written engagement must list the manager’s authorised duties, the length of the engagement and payment arrangements. Where there is a committee, the body corporate must approve the engagement by ordinary resolution at a general meeting, and the contract terms must be provided to members before the meeting.
For an engagement under the committee arrangements, the term must not be longer than 3 years.
A shorter or longer agreement will not always be better. Termination, renewal and notice rights depend on the proposed management agreement and your scheme’s circumstances. Read these clauses carefully before the motion is considered.
The body corporate manager must also comply with the applicable code of conduct. This includes acting honestly, fairly and professionally, acting in the best interests of the body corporate where lawful, and keeping required records.
You can learn more about the role in our article on what a body corporate manager does.
What red flags should you look for before appointing a manager?
Online reviews can provide one indication of what to expect, but they are incomplete. Consider the detail, timing and pattern of reviews rather than relying on a single positive or negative comment.
A pattern of complaints may warrant further questions. Ask the provider how it handles disputes, missed deadlines, record requests and changes in assigned staff.
Other warning signs include:
- unclear answers about additional fees
- reluctance to provide the proposed agreement early
- no clear person responsible for your scheme
- limited backup when staff are unavailable
- high staff turnover without a clear explanation
- a manager with a workload that leaves little time for your scheme
- promises that are not reflected in the written agreement
- pressure to approve the appointment before owners can review the documents.
Ask for the proposal, agreement and fee schedule before the general meeting. Compare the documents carefully and record any changes promised during discussions. If a proposed manager cannot explain what is included, who is responsible or how the agreement can end, pause before recommending the appointment.
A careful comparison of services, support, fees and contract terms can help your body corporate choose a manager that matches its needs, and our team can answer questions at reception@stratacare.com.au.
