Is having a strata manager mandatory?

In most Australian strata schemes, having a professional strata manager is not always mandatory. Many owners corporations, body corporates and strata companies can choose to self-manage, especially smaller schemes with simple finances and active owners. However, some larger or higher-tier schemes may be required to appoint a manager, and some schemes may be ordered to appoint one if there is serious dysfunction, poor compliance or financial mismanagement.

The answer depends on the state or territory, the size and complexity of the scheme, the applicable legislation, and the scheme's own circumstances. There is no single Australia-wide rule that makes a strata manager compulsory for every apartment building.

What does mandatory strata management mean?

Mandatory strata management means the law, a tribunal, court order or scheme requirement requires the owners to appoint a professional manager or administrator to help run the scheme. In many cases, appointment of a strata manager is optional. Owners may decide to appoint one because the scheme is complex, time-consuming or difficult to manage without professional support.

A strata manager may help with meetings, levy notices, records, maintenance coordination, insurance, financial reporting, compliance and owner communication.

Is a strata manager compulsory in Australia?

There is no single Australia-wide rule that makes a strata manager compulsory for every apartment building or strata scheme. Strata and body corporate laws are state-based, so each state and territory has its own rules about appointment, duties, licensing, self-management and when a manager may be required.

In practical terms, smaller schemes may be able to self-manage, while larger or more complex buildings often appoint a professional strata manager because the workload, compliance obligations and financial responsibilities are higher.

When can a strata scheme self-manage?

A strata scheme may self-manage when the owners take responsibility for administration themselves instead of appointing a professional strata manager. Self-management may work well when the scheme is small, owners communicate well, finances are simple, there are few disputes, maintenance needs are manageable and owners understand their legal duties.

Typical self-managed tasks include:

When should owners consider appointing a strata manager?

Even when a strata manager is not legally mandatory, appointing one may be the safer and more practical choice for many buildings. Owners should consider professional strata management when:

Can a tribunal or court force a scheme to appoint a manager?

In some situations, a tribunal or court may appoint a manager, administrator or compulsory strata manager where the scheme is not functioning properly. This is usually a serious step and may happen when the owners corporation or body corporate cannot meet its obligations, make decisions, maintain the building or manage finances properly. The exact process and terminology vary by state and territory.

Is self-managed strata cheaper?

Self-managed strata may reduce professional management fees, but it is not automatically cheaper in the long term. Poor record keeping, missed compliance duties, delayed maintenance, unpaid levies or insurance mistakes can become expensive. A self-managed scheme still needs time, organisation, financial discipline and owners who understand their responsibilities.

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Key takeaways

Related questions

Is having a strata manager mandatory?
No, not always. Many Australian strata schemes can self-manage. However, some schemes may be required to appoint a manager depending on the state, scheme tier, tribunal order or scheme circumstances.
Can a strata scheme be self-managed?
Yes. A strata scheme can often be self-managed if owners are willing and able to handle administration, records, levies, insurance, meetings and maintenance responsibilities.
Is a strata manager mandatory in Victoria?
For Tier 1 owners corporations, a manager must be appointed unless the owners corporation opts out by special resolution. Tiers 2–5 may choose to appoint a manager, but it is not compulsory.
Is a body corporate manager mandatory in Queensland?
No. A Queensland body corporate is not legally required to have a body corporate manager, although many schemes choose to appoint one.
Why appoint a strata manager if it is not mandatory?
Owners may appoint a strata manager to improve administration, financial records, maintenance coordination, insurance handling, compliance and communication.
Can one owner appoint a strata manager?
Usually no. Appointment normally requires a proper decision by the owners corporation, body corporate or strata company according to the scheme's rules and state legislation.

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