Changing Strata and Community Managers A Practical Guide
A Practical Guide for Owners Corporations / Bodies Corporate / Community Associations / Company Title Buildings
Changing managers can feel like a big task, but it doesn’t need to be stressful. With good planning and cooperation, the transition can be smooth and beneficial for the community.
Why Switch Managers?
Owners may decide to change managers due to:
Poor communication or slow response times
Lack of financial transparency
Ongoing or unresolved maintenance issues
Outdated systems and processes
A manager better suited to the property’s needs
The aim is to improve service and keep day-to-day operations running without disruption.
Here is the best practice process in 3 easy steps
Step 1: Appointing and Notifying
A new manager is formally appointed at a general meeting, where owners vote to:
Terminate the current contract (in line with its terms) of the existing agent
Approve the new management agreement (often 1–3 years, depending on state or territory law)
Appoint the new manager
The outgoing manager must then be given written notice, including the termination date and details of the incoming manager.
Key documents generated at this stage:
General meeting notice and agenda, you will need specific Motions to attend to the process
Meeting minutes recording the decision
Termination notice letter to the outgoing manager with the Minutes
New Agency agreement
Step 2: Handover of Records
By law, the outgoing manager must hand over all records and funds promptly to the new manager. In most Agency Agreements there is a specific clause outlining the handover period. Bear in mind that the amount of records and files, particularly in larger schemes, can be massive. This process can take around 7 business days so be patient, don’t expect an instant handover. Good agents will work out the process between them and cooperate as professionals.
These records can extend to:
Administrative records
Minutes of past meetings
Register of owners and tenants (the aka the Strata Roll)
Insurance policies and claims history
Current service and maintenance contracts
Correspondence files (these can be massive - think every email sent!)
Financial records
Bank account details and authorities
Balance sheets and income/expenditure statements
Previous bank statements
Levy notices and payment histories of Lots
List of outstanding debts and invoices
BAS, Tax and GST records (if applicable)
Legal and compliance documents
By-laws or rules of the scheme
Maintenance and capital works plans
Building condition reports
Work, Health and Safety audits
Defect and warranty records
Safety compliance certificates (e.g. fire, lift, pool where relevant)
Other items
Keys, fobs, swipe cards, security codes
Asset registers (plant, equipment, machinery)
Archive boxes (if your strata manager offers a digitisation of these then be sure to take this up)
Finances and Accounts
The new manager checks that all accounts are correct and transfers financial control.
This may include:
Confirming bank balances match the records
Reconciling levy payments and arrears
Verifying contractor payments are up to date
Reviewing outstanding invoices or debts
Setting up new bank accounts or signatories
Documents and records needed
Current bank statements
Levy contribution register
Accounts payable and receivable lists
Copies of all paid invoices and receipts
Audit reports (if any)
Step 3: Communication with Owners
Owners should be informed early and clearly about the changeover. Most newly appointed managers will provide a welcome pack or email.
Documents and information generally provided to owners:
Welcome letter with new manager details and a confirmation check of your information
Access details for owner/committee portals
FAQs or information sheets
Updated emergency contact information
Instructions for levy payments
Tip: there will be a new account and levy reference numbers to be set up so don’t pay levies to the old account! (You will be spending a lot of time on the phone to banks, it’s not the fault of the previous agent and there is little they can do to assist as the old account will be closed.)
The Role of Owners
Owners and committee members can support the process by:
Attending meetings and approving required motions
Updating their contact and payment details
Raising concerns or historic issues with the new manager
Being patient while systems and records are transferred, this can take around 2 weeks (one week out, one week in) if all goes well.
A Final Word
No matter the state or territory, the process for changing strata & community managers follows the same pattern. With the right documents exchanged at each stage, the transition can be seamless and deliver long-term benefits to your community.
Disclaimer:
This article is intended for general educational purposes only and does not constitute legal or financial advice. Readers should seek independent legal and professional guidance relevant to their specific circumstances and jurisdiction.