What questions should I ask a strata manager before hiring them?

Ask questions that reveal who will actually manage your scheme, what the base fee includes, how additional charges are calculated, how conflicts and commissions are handled, what response times are committed in writing, and how easily the owners corporation can leave. Don't compare on base fee alone.

Before hiring a strata manager, ask questions that reveal who will actually manage your scheme, what the service includes, how fees are charged, how conflicts are handled and how easily the owners corporation can leave. A low headline fee may be offset by charges for meetings, correspondence, insurance claims, work orders, record searches, after-hours calls or supplier commissions.

The 12 most important questions

The manager and their workload

Who will be our day-to-day strata manager? The salesperson presenting the proposal may not be the person assigned after appointment. Ask for the proposed manager's name, role, experience, qualifications and availability, plus a clear explanation of support staff.

How many schemes and total lots does that manager handle? An overloaded manager may struggle to respond, inspect the property or follow up contractors. Ask for a precise current portfolio figure, the types of buildings managed and how workloads are monitored.

Who covers annual leave, illness and staff turnover? Your scheme still needs service when the primary manager is unavailable. Look for a named support structure, shared access to records and a formal handover or escalation process.

How long do managers usually stay with your company? High staff turnover causes repeated handovers, lost knowledge and inconsistent service. Ask for retention information and how the committee is informed before a manager changes.

Will the manager attend the building? Some services are almost entirely remote, while complex schemes need regular inspections. Confirm the included inspection frequency, what is checked, whether reports and photos are provided, and the cost of extra visits.

Experience and expertise

How many schemes similar to ours do you manage? A two-lot townhouse, a high-rise, a mixed-use development and a large community scheme each require different skills. Ask for examples matching your lot count, building age, facilities, location and governance complexity.

What experience do you have with our current issues? Defects, cladding, major works, insurance claims, arrears, embedded networks or disputes each require specific capability. Ask for recent examples, the manager's exact role, outcomes and any specialist partners used.

Which tasks are performed in-house and which are outsourced? Outsourcing affects cost, control, privacy and response time. Ask for a list covering accounting, levy recovery, insurance, after-hours calls, minutes, records storage and maintenance coordination.

Can you provide two or three comparable client references? References test whether proposal promises match actual service. Ask for recent schemes of similar size and complexity, with committee approval to contact them.

Licensing, registration and insurance

Regulatory requirements differ across Australia. Verify the business and the individual who will perform regulated work using the relevant state register or regulator.

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What licence or registration applies to your company and proposed manager? A valid credential confirms the person is authorised where registration or licensing is required. Ask for licence or registration numbers, the legal entity name and permission to verify them independently.

Have you or the business been disciplined, suspended or subject to regulator action? Past enforcement may reveal compliance, trust-account or conduct risks. Ask for a written disclosure that can be compared with public registers.

What professional indemnity, fidelity, cyber and public liability cover do you hold? Different risks require different policies, particularly where the manager handles money and personal data. Ask for insurer, policy period, limit, exclusions and a current certificate of currency.

Fees and the proposal

What exactly is included in the annual management fee? The base fee is meaningful only when included services are defined — meetings, minutes, budgets, levy notices, financial reports, correspondence, inspections, work orders and record requests.

What services are charged separately? Additional fees can substantially change the true annual cost. Ask for fixed rates or formulas for extra meetings, after-hours work, certificates, inspections, insurance claims, projects, debt recovery, postage, archives and termination.

Can you provide an estimated total annual cost for our scheme? A realistic scenario using your recent meeting, maintenance and correspondence volumes makes competing proposals easier to compare.

How and when can your fees increase? Automatic annual increases can become expensive over a long contract. Ask for the exact index or percentage, review date, notice process and whether owners can reject the increase.

Are GST, disbursements and software charges included? Small administrative charges create unexpected cost. Ask for a single complete schedule showing GST treatment, postage, printing, portals, storage, bank fees and third-party charges.

Commissions and conflicts

Do you receive commissions, referral fees, rebates or other benefits? Financial benefits can influence contractor, broker, insurer or service recommendations. Ask for a written dollar or percentage disclosure for every category, including related businesses and non-cash benefits.

Do you own or have an interest in any suppliers you recommend? Related-party relationships should be visible before owners approve work. Ask for the legal entity, nature of the relationship, pricing process and how independent alternatives are offered.

How do you obtain competitive quotes, and who owns the insurance relationship and commission? Owners need confidence that contractors and brokers are selected on value, competence and risk — not convenience or commission.

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Communication and service standards

What response times will you commit to? "Responsive service" is unenforceable without measurable standards. Ask for targets for urgent incidents, committee emails, owner enquiries, work orders, quotes and complaints, plus escalation if targets are missed.

What is your emergency and after-hours process? Leaks, fire systems, lift entrapments and access failures occur outside business hours. Ask for a 24-hour contact process, authority limits, approved contractors, incident reporting and fee structure.

How often will the committee receive a management report, and what is your complaint and escalation process? Regular reporting makes delegated work visible; a clear escalation path helps resolve service failures before termination.

Meetings, finances and controls

How do you prepare for and run meetings, and who drafts motions and checks voting thresholds? Good meeting administration protects the validity of decisions. Look for agenda planning, legal checks, explanatory notes, proxy management, electronic attendance, chairing support and correct identification of general, special or unanimous resolutions.

Where will our money be held and who can authorise payments? Strong controls reduce fraud and unauthorised spending. Ask about trust-account structure, approval workflows, payment limits and audit trails.

How are invoices checked before payment, and what financial reports will we receive? Expect matching to approved quotes or work orders, evidence of completion, GST checks and a full monthly or quarterly pack — balance sheet, income and expenditure, bank balances, arrears, creditor list, budget comparison and fund forecasts.

How do you manage levy arrears and help prepare long-term maintenance budgets? Ask for reminder stages, legal escalation thresholds, hardship handling and transparent recovery fees, plus use of capital works or maintenance plans, project forecasts and specialist reports.

Repairs, projects and contractors

Key takeaways

Related questions

What is the first question to ask?
Ask who will be the dedicated day-to-day manager and request that person's experience, portfolio size and availability.
What fee documents should we request?
The full management agreement, base fee, additional fee schedule, disbursements, commissions, project fees and exit charges.
How do we verify the manager?
Check the applicable state licence or registration register, insurance evidence, disciplinary history and comparable client references.
What contract terms matter most?
Term, renewal, fee increases, delegated powers, service levels, termination rights, handover duties, data ownership and commissions.
What service standards should be written down?
Response times, emergency escalation, reporting frequency, work-order follow-up, meeting documents and complaint escalation.
What is the biggest red flag?
A manager who will not provide transparent fees, disclose conflicts or identify the person who will actually manage the scheme.
How many strata managers should we interview?
For a meaningful comparison, most schemes seek at least three suitable proposals — subject to state-specific procurement or meeting requirements.
Can a strata manager promise a fixed annual price?
A manager may quote a fixed base fee, but the agreement may still allow additional charges. Review every fee category and estimate the likely total cost.

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