To terminate a strata manager, the owners corporation should read the current management agreement, confirm the expiry date and termination clauses, identify the voting and notice requirements, compare replacement managers, pass the required resolution at a meeting, issue formal written notice, and manage a documented handover of funds, records, contracts and access credentials.
To terminate a strata manager, the owners corporation, body corporate or strata company should first read the current management agreement, confirm the expiry date and termination clauses, and identify the notice and voting requirements that apply.
In most cases, the safest process is to compare replacement managers before ending the existing arrangement, put a clear termination and replacement motion to the required meeting, give formal written notice after the resolution passes, and organise a documented handover of funds, records, contracts and access credentials.
The exact legal process differs between Australian states and territories. Early termination can also trigger contractual fees or a dispute, so the scheme should obtain legal advice where the contract is unclear, the manager contests termination or significant money is at stake.
Step 1: Decide whether the issue can be fixed first
Changing managers can improve service, but it also creates transition work. If the problem is isolated, the committee may first set written performance expectations and a deadline for improvement.
For recurring or serious issues, document what has happened. Useful evidence includes unanswered correspondence, missed compliance tasks, accounting errors, unapproved expenditure, unexplained charges, repeated staff turnover or failures to follow valid instructions.
A written record helps owners understand why a change is being proposed and can be important if early termination later becomes disputed.
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Step 2: Read the management agreement before doing anything
Start date and expiry date
Whether the term is fixed or has been extended
Notice required for non-renewal
Early termination grounds
Any cure or remedial period
Whether a breach notice must be served first
Termination fee, break fee or payment of outstanding fees
Automatic or deemed renewal wording
Required voting or meeting procedure
How notice must be delivered
Who must receive the notice
Handover timetable and format
Ownership and return of records
Dispute-resolution or tribunal clauses
What if the contract is close to expiry?
If the appointment is near its end date, non-renewal is often simpler than trying to terminate early.
Check how much written notice must be given and whether the contract contains an extension mechanism. In NSW, current government guidance says strata managers must notify the scheme of the agreement's expiry between three and six months before expiry, and specific extension rules can apply around the AGM.
Do not assume that allowing the expiry date to pass automatically ends every obligation. Confirm the contract and state law before relying on expiry alone.
Step 3: Find a replacement before serving notice
Unless there is a serious reason to remove the manager immediately, it is usually better to have a replacement ready first.
A new manager can review the existing agreement, help identify a realistic start date and prepare for the transfer of records and funds. This reduces the risk of a gap in levy collection, insurance administration, invoice payments or urgent maintenance.
Local Strata Manager's switching process is built around comparing replacement managers before formal termination so committees can move from one provider to another with less disruption.
Obtain at least several comparable proposals where practical
Confirm the new manager can start on the intended date
Ask who will personally manage the scheme
Review included services and extra charges
Check licence or registration where required
Confirm current professional indemnity and public liability cover
Ask how the incoming manager handles changeovers
Agree who will chase missing records if the outgoing manager delays
Step 4: Put the correct motion to owners
The committee should prepare the termination and replacement motions carefully. The wording should identify the existing manager, the proposed termination date and the contractual basis for ending or not renewing the appointment.
If a new manager is being appointed, the meeting papers should also identify that provider, the proposed term, fees, delegated functions and the management agreement.
Where practical, coordinate the outgoing termination date and incoming commencement date so the scheme is never left without an authorised person to manage essential tasks.
Typical motion structure
Resolve to terminate or not renew the current strata managing agent in accordance with the management agreement.
Authorise the secretary, chair or nominated person to serve written notice.
Appoint the replacement manager from the agreed commencement date.
Authorise execution of the new management agreement.
Step 5: Pass a valid resolution
The legal approval depends on the jurisdiction. In NSW, current government guidance says the owners corporation removes a strata manager by passing a majority motion at an AGM or, if owners cannot wait, at an extraordinary general meeting.
Victoria requires the owners corporation to vote at a general meeting or by postal ballot and then follow the removal process in the contract of appointment.
Queensland body corporate manager engagements are governed by the applicable regulation module. Early termination for specified performance or compliance failures can require a remedial action notice before an ordinary resolution at a general meeting.
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Australia does not have one national termination rule
The legal entity, voting threshold, notice requirements and dispute forum depend on the state or territory. Always check the local legislation and the signed management agreement before issuing notice.
Step 6: Issue formal written notice
After the resolution passes, give the manager written notice in the way required by the contract.
Use the legal business name, identify the relevant agreement, refer to the resolution, state the effective termination or non-renewal date and request confirmation of handover arrangements.
Keep evidence of service, such as the sent email, registered-post receipt, courier record or signed acknowledgement. If the contract specifies a particular address or method, use it.
A termination notice should usually identify:
Owners corporation, body corporate or strata company name and plan number
Manager's legal entity and address for notices
Date of the resolution
Agreement date
Termination or non-renewal clause relied on
Effective termination date
Any contractual notice period
Request for final accounts and reconciliation
Handover recipient and contact details
Deadline for transfer of records, funds and access
Request for confirmation of receipt
Do we have to give three months' notice?
Not automatically. The notice period depends on the agreement and the law in your jurisdiction.
Key takeaways
The management agreement is the first document to check.
Do not assume the committee can terminate the manager by itself.
The required vote and notice process differs by state and territory.
A replacement should usually be selected before the current manager is formally ended.
Coordinate the outgoing termination date with the incoming manager's commencement date.
Early termination can create break-fee or damages risk.
Written notice should follow the contract exactly.
The handover must cover funds, records, insurance, contracts, maintenance and digital access.
NSW generally requires a majority motion at an AGM or EGM to remove a strata managing agent.
Victoria allows removal by general-meeting vote or postal ballot and requires return of funds and records after termination.
Queensland may require a remedial action notice before termination for performance or compliance failures.
Legal advice is sensible when the right to terminate or the financial consequences are disputed.
Related questions
Can I terminate my strata manager before the contract ends?
Potentially, but only if the contract and applicable law allow it. Early termination may require a defined breach, remedial process, mutual agreement or tribunal order.
Do I need an AGM to remove a strata manager?
It depends on the jurisdiction. In NSW, owners can use an AGM or call an EGM if they cannot wait for the AGM.
How much notice do we need to give?
There is no single national period. Check the management agreement and state or territory legislation.
Can the strata committee send the termination notice?
It may be able to send the notice after the owners corporation has validly authorised termination, but the authority should be clear in the resolution or delegation.
Should we find a new manager first?
Usually yes. A replacement helps avoid a gap in financial administration, insurance, maintenance and owner communication.
What if the outgoing manager will not hand over records?
Make a formal written request, rely on the applicable contract and legislation, and seek regulator, tribunal or legal assistance if necessary.
What is the first step?
Read the signed management agreement and identify the expiry date, termination rights, notice period and handover obligations.
Who makes the decision?
The owners corporation, body corporate or strata company must use the decision-making process required by its legislation and governing documents.
Can we just email the manager?
Not safely. First obtain the required authority, then serve notice in the manner required by the contract.
Can we terminate for poor service?
Possibly, but the contract or legislation may require a breach or remedial notice and an opportunity to fix the problem.
Do we need a replacement first?
It is strongly recommended in most non-urgent cases so the scheme can transition without an administrative gap.
What must be handed over?
Funds, financial records, owner records, insurance, contracts, minutes, maintenance files, legal records and digital access should all be addressed.