Strata living brings people together under one strata title, with individual ownership but shared responsibilities. However, inconsistent communication, delayed repairs or financial disputes can lead to frustration and affect confidence in how the scheme is managed.
In these situations, changing your strata managing agent may be a necessary step to restore trust and address pending issues more effectively. This guide outlines the process of how to change strata managers in New South Wales with confidence and compliance.
Why would you change your Strata Manager?
Over time, unresolved issues can interrupt daily operations and reduce trust in the current management. Missed deadlines or poor communication often signal deeper problems with how responsibilities are being handled. Other committees often consider changing strata management companies to resolve these issues more efficiently.
Common reasons for changing strata managing agents include:
- Delays in communication or response times
- A lack of transparency around financials and reporting
- Neglected common property or repairs
- Non-compliance with relevant legislation or poor recordkeeping.
A strata manager is responsible for guiding the scheme as outlined in the Strata Schemes Management Act and assisting the committee with key decisions. If these responsibilities are not being fulfilled, it may be time to assess your options and change strata management.
Steps to changing Strata Management Agency
Changing management is a straightforward process if the proper procedures are followed. Take the right steps at the right time to ensure all decisions are made in compliance with legislation and your current agreement.
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Step 1
Check your current contract
Begin by reviewing your current strata management agreement. Most strata management agreements in NSW run for a fixed term, usually up to three years, and include a required notice period, typically three months. Before making any changes, review the contract carefully. Look for automatic renewal clauses or limits on early termination, as these can affect your timing and the steps needed to exit the agreement.
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Step 2
Contact Netstrata for guidance
Contact Netstrata as early as possible for guidance on how to interpret the agreement and plan your next steps. This way, we can also provide you with our termination and appointment motions.
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Step 3
Submit the motions to your current manager
The motions will be included on the agenda at your next Annual General Meeting (AGM).
Appointing a new strata managing agent requires a majority vote at your AGM, which must meet notice, quorum and voting requirements set out in the current legislation.
For a detailed explanation of how meetings work, including how to raise motions, meet notice requirements and understand voting thresholds, see our guide to the process for strata meetings and voting.
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Step 4
Notify Netstrata about the motions
Once the motions have been passed at your AGM, let us know. Then, you’ll need to sign our Agency Agreement.
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Step 5
Provide a formal notice of termination to your current manager
Once a resolution has been passed to appoint a new manager, formal notice must be issued to the outgoing manager, following the terms of their agreement.
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Step 6
Send us the documentation
Send us the documentation, such as the minutes of the meeting and the signed agreement. We will then coordinate the handover, including the transfer of financial records, the strata roll and all relevant documentation.
A structured handover helps preserve continuity and ensures the new manager can take over responsibilities with full access to the necessary documentation.
Important legal points to remember
Strata schemes in NSW operate within a legislative framework designed to ensure that changes in management are handled fairly and transparently. Several important reforms have been introduced to strengthen compliance and clarify roles within strata communities. Owners must follow the appropriate procedures under the Strata Schemes Management Act 2015 and the reforms in the strata laws.
Key points to consider:
- General meetings must follow notice and quorum requirements under the legislation
- Owners Corporations must act within the powers set by the Strata Schemes Management Act, and decisions should be properly recorded and distributed to all owners
- Owners corporations must act within the powers set by the Strata Schemes Management Act
- Recordkeeping and access to information must comply with the law.
How Netstrata makes the change easy
Changing strata managers isn’t something most owners do regularly. The process can involve multiple parties, timelines and procedural steps. Here at Netstrata, we support Owners Corporations by providing practical guidance during transitions and helping the Strata Committee understand what is required at each stage.
Where appropriate, we assist the Strata Committee with:
- Reviewing agreements to clarify key dates and obligations
- Preparing sample motions in line with current regulations
- Communicating key deadlines and documentation requirements
- Liaising with outgoing managers as needed to support record handover.
Our focus is on supporting good governance and helping strata committees make informed decisions in line with current legislative requirements. To understand more about strata management or for practical support in changing providers, contact us.
Speak to a Netstrata Expert Now
FAQ about changing Strata Management
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How long will it take to switch?
This depends on the notice period in your current agreement. In most cases, the process can be completed within 4 to 12 weeks. It’s important to account for the time needed to hold a meeting, pass a resolution and allow for any notice periods under your current agreement.
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Do we need lawyers?
Legal advice is not always required, but it may be helpful in cases of contractual disputes, misunderstandings in financial arrangements and other similar issues among owners. In most cases, strata management transitions can proceed without procedural support, provided all motions and notices are properly prepared.
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Will there be any extra costs?
This will depend on the termination terms of the current agreement. Some agreements include early exit clauses or administrative fees. Review any outstanding invoices or project costs that need to be resolved before the handover. Netstrata can help with reviewing your documentation and identifying possible fees.
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What if we can’t agree to switch?
A resolution must pass by a majority. If a motion is not successful, the matter may be revisited at a future meeting. Strata Committees may consider further consultation with owners or clarification on concerns before reintroducing the motion. Ongoing concerns should be documented and raised formally to help guide future decisions.
