I Want A New Strata Managing Agent

Choosing the right strata managing agent can make or break the smooth running of a strata scheme. A good agent takes the stress out of compliance, meetings, levies, and maintenance. The wrong one can lead to frustration, wasted money, and disputes.

If your owners corporation, body corporate or community association is thinking about making a change, the first step is to gather quotations from prospective strata managers before making a choice.

Here’s how to approach the process so that you make an informed and confident decision.

Why change strata managers?

Schemes usually seek new quotations when:

• Service levels have slipped, or communication is poor.

• Fees are unclear, rising, or don’t match the service being delivered.

• The scheme has grown, or its needs have changed (e.g. more lots, new facilities).

• There is a churn in the assigned managers.

• Owners simply want to test the market and ensure they’re getting value for money.

Step 1: Do your homework first

Before reaching out for quotations, owners should:

• Review the current contract: Note expiry dates, termination clauses, and notice periods.

• Identify needs and priorities: Is your focus compliance, maintenance, financial reporting, dispute handling, or communication?

• Agree on scope: The committee should be clear on what they want in a managing agent to avoid confusion when comparing quotes.

Step 2: Requesting quotations

When inviting strata managers to submit a proposal, provide them as much detail as possible.

The more information you give, the more accurate and tailored their quotation will be.

Here’s a checklist of items to include in your quotation request:

1. Number of lots in the scheme.

2. Type of scheme (residential, commercial, mixed-use, community title).

3. Copies of your recent meeting minutes and budgets.

4. A list of current facilities (e.g. lifts, pools, gyms, car parks).

5. Current levies and funds held.

6. A summary of issues or priorities (e.g. large repairs, insurance claims, compliance, disputes, litigation, defects) be honest from the outset so there are no surprises down the line, transparency means everything.

7. Expectations for reporting and communication (e.g. monthly financials, meeting attendance).

8. Request for disclosure of all fees:

   Base management fee (what they do as their standard work)

   Disbursements (printing, postage, software, etc.)

   Additional services (by-laws, debt collection, compliance notices, defects management, disputes…..).

9. References from other schemes they manage.

10. Evidence of licences and professional indemnity insurance.

Step 3: Compare like with like

Not all quotations are presented the same way, which can make comparison tricky. Create a simple comparison table showing:

1. Core management fee & services included in that management fee

2. Additional charges for services that you may need from time to time

3. Level of support dedicated manager or shared team

4. Experience with similar-sized or complex schemes

5. Insurance services is it commission based or a transparent fee for service with an independent broker?

6. Reputation references, client feedback, professional memberships

Don’t forget quality of advice
A strata manager isn’t just an administrator, they are also your guide on compliance, legislation, and best practice. Poor or incorrect advice can lead to costly mistakes, penalties, or disputes. When reviewing quotes, look for managers with demonstrated expertise, continuing professional development and commitment to education, and a track record of giving practical, accurate advice.

Step 4: Avoid common pitfalls

• Don’t just choose the cheapest option, the lowest fee can mean the least service.

• Check that the strata manager is properly licensed in your state or territory.

• Watch out for hidden fees buried in the fine print.

• Don’t skip reference checks, ask other schemes about their experiences.

Step 5: Present options to owners

Once the committee has reviewed and compared quotations, prepare a summary for the next meeting of the owners corporation. Be clear, balanced, and transparent so that all owners feel confident in the decision.

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Scenario

At Riverside Apartments, the committee was unhappy with their agent’s slow response to maintenance issues. They invited quotations from three licensed strata managers. Each was asked to provide a fee schedule, service list, references, and proof of insurance. The committee compared the quotes side by side, noting that one agent’s “cheap” base fee hid large charges for simple administrative tasks and work order management. After weighing service levels and transparency, the owners voted to appoint a new agent who had a clear fee structure and strong references.

The takeaways

Seeking quotations for a new strata managing agent isn’t just about price. It’s about finding a professional who understands your scheme’s needs, communicates well, and provides value. By preparing properly, asking the right questions, and comparing like with like, your scheme can select the best partner to manage your property.

Why good advice matters

A strata manager isn’t just there to send levy notices or book meetings — they’re also your guide on the law and compliance.

• Good advice helps avoid fines, costly disputes, and delays.

• Bad advice can end up costing owners thousands in mistakes or missed obligations.

When comparing quotes, don’t just look at fees look at the quality of advice you’ll be getting. In strata, the cheapest option isn’t always the safest.

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Top 6 Things to Check in a Strata Manager’s Quotation

1. What’s included in the base fee?
   Make sure essential services (AGMs, financial reports, compliance, basic work orders & minor admin) are covered, not charged separately.

2. What extra fees apply?
   Look closely at meeting fees, or additional time disbursements (printing, postage, software), debt collection, and by-law work.

3. Licensing and insurance
   Confirm the agent holds a current licence in your state/territory and has adequate professional indemnity and fidelity insurance.

4. Conflicts of interest

   Is the agent entirely independent of related service contractors, insurance brokers or law firms?

5. Experience and fit
   Check if they manage similar-sized schemes and ask for references. A good cultural fit matters just as much as price.

6. Communication and support
   How quickly do they respond? Do they offer online portals, regular reporting, or a dedicated manager?

If all six stack up, you’re in a strong position to compare managers fairly and choose the right fit for your scheme.

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