With thousands of registered Owners Corporation Managers in Melbourne all promising to manage your strata property smoothly, how do you separate the competent from the merely compliant?
Surprisingly, becoming an OCM is relatively easy. Choosing the right one for your property’s long-term success is not. And the difference between the two matters more than most owners realise.
Over the years in the strata industry, we’ve seen firsthand what poor strata management costs, not just in dollars, but in stress, conflict, and lost property value. When property owners come to us, one of the most common questions they ask is: how do you actually choose a good strata manager?
Key Takeaways:
- Not all strata managers provide the same level of service. Look for proven systems, strong communication, and up-to-date knowledge of Victorian legislation.
- A capable strata manager helps protect property value, financial stability, and resident relationships within the owners corporation.
- Poor strata management can lead to unresolved maintenance issues, levy disputes, compliance risks, and frustrated residents.
- Committees should assess experience, transparency, communication style, and legal knowledge before appointing a new manager.
Why choosing the right strata manager matters
The right management provider can help maintain your property, support financial stability, and keep communication running smoothly between owners, residents, contractors, and the Committee.
On the other hand, poor strata management can result in:
- unresolved maintenance issues
- delayed communication
- levy collection problems
- financial mismanagement
- compliance risks
- disputes escalating unnecessarily
- declining resident satisfaction reduced property appeal and value
In many new developments, the developer appoints the initial strata manager. While this may appear convenient, it can create problems later, particularly in larger developments with shared facilities and more complex infrastructure.
Under Section 67B of the Owners Corporations Act 2006 (Vic), a developer-appointed third party manager’s contract expires at the first meeting of the owners corporation unless a new appointment is made.
In one Melbourne case we assisted with, an owners corporation approached us after becoming frustrated with their developer-appointed manager. Concerns included unresolved maintenance, overdue levies, inaccurate owners corporation records, and poor financial oversight. After reviewing the situation, we guided the Committee through the process of changing managers and helped them appoint a more suitable provider. The result was improved communication, stronger financial processes, and a more organised estate.
What does a strata manager do?
Part 6 of the Owners Corporations Act 2006 outlines the role and responsibilities of an Owners Corporation Manager in Victoria.
The exact responsibilities may vary depending on whether the owners corporation has an elected Committee and what functions are delegated to the manager. If you’d like a more detailed explanation of the role, responsibilities and scope of services provided, read our guide to strata management.
When there is a Committee (Section 120)
Where a Committee exists, the strata manager carries out functions delegated by the owners corporation and reports to the Committee as required.
This commonly includes:
- coordinating maintenance and repairs
- organising meetings and agendas
- assisting with budgeting and financial reporting
- communicating with owners and contractors
- helping administer owners corporation rules
- maintaining records and compliance documentation
When there is no Committee (Section 121)
Where there is no Committee, the strata manager generally carries out the operational functions of the owners corporation in accordance with the legislation and rules.
General duties of a strata manager (Section 122)
Before assessing management providers, it helps to understand the legal obligations they must meet.
Honesty and integrity. Your manager must act honestly, in good faith, and with due care. They can’t misuse their position for personal gain or to benefit someone else at your expense.
Fair procurement. They must secure competitive prices and terms for goods and services. In practice, that means obtaining multiple quotes for significant work, not defaulting to the same contractor every time.
Transparency on commissions. If your manager stands to receive a commission or benefit from a contract they’ve arranged on your behalf, they must disclose it to the chairperson. This is one of the most commonly overlooked obligations, and one worth asking about directly.
No undue influence. Your manager must not pressure lot owners to sway the outcome of votes or elections. They’re paid to manage, not lead, the corporation.
Your money, properly handled. All funds must be held on trust in separate accounts, including any interest earned. If you request financial statements for any period within the past three years, they’re required to provide them.
Key qualities to look for in a strata manager
Finding the right strata manager often comes down to identifying whether they have the systems, communication style, and expertise to properly support your property.
Quality 1: Proven procedures and systems
A reliable strata manager should have established systems for:
- maintenance coordination
- financial reporting
- compliance management
- record keeping
- emergency response
- contractor management
Modern strata software and clear operational procedures can significantly improve communication and transparency for owners and Committees.
Quality 2: Strong support network
Effective strata management usually relies on more than one person.
A well-supported manager often works alongside specialists in finance, maintenance, compliance, administration, and technology. This allows issues to be handled more efficiently without delays caused by understaffed teams.
Quality 3: Financial management skills
Financial oversight is one of the most important aspects of strata management.
A capable strata manager should be able to:
- prepare realistic budgets
- manage levy collection
- provide clear financial reporting
- coordinate audits where required
- manage maintenance funds appropriately
- help the owners corporation plan for future expenditure
Under Victorian legislation, certain owners corporations must also prepare financial statements and maintenance plans depending on their tier classification.
Quality 4: Negotiation skills
Experienced strata managers often have established contractor networks and understand how to negotiate fair pricing for maintenance and services.
This can help owners corporations avoid inflated contractor costs while still maintaining quality outcomes.
Quality 5: Effective communication
Clear communication is one of the biggest indicators of a well-performing strata manager.
A good manager should:
- respond within reasonable timeframes
- explain issues clearly
- provide regular updates
- communicate decisions properly
- help reduce misunderstandings between residents and the Committee
Poor communication is one of the most common complaints owners corporations raise when considering changing managers.
Quality 6: Knowledge of the owners corporations act
Victorian strata legislation continues to evolve, so it is important your strata manager stays updated on compliance obligations and dispute procedures.
A knowledgeable manager should understand:
- owners corporation rules
- meeting requirements
- levy recovery processes
- maintenance obligations
- dispute resolution procedures
- VCAT processes
- insurance obligations
For example, if a dispute arises regarding pets, noise complaints, or property damage, a manager with strong legislative knowledge can help guide the Committee through the correct process under the Owners Corporations Act 2006 and the owners corporation rules.
Quality 7: Proactive approach
A great strata manager doesn’t wait for problems to escalate. They spot issues early, act on them quickly, and keep residents informed along the way. It’s the difference between a manager who reacts to complaints and one who prevents them.
Red flags to avoid when choosing a strata manager
A good first impression doesn’t always reflect what’s underneath. Here are some warning signs committees should look out for during the selection process.
- Poor Communication. Slow responses, vague answers, or difficulty getting hold of your manager are rarely just one-offs. They usually point to deeper operational issues that will only get worse once they’ve been appointed.
- Lack of Transparency. Ask for a clear breakdown of their fee structure and financial reporting process before you sign anything. If the contract is confusing or costs are buried in fine print, that’s not an oversight. It’s a signal.
- Limited legislative knowledge. Strata legislation changes regularly. A manager who isn’t across current laws or can’t demonstrate how they stay updated is a liability, not an asset.
- Negative Reviews. Look beyond the star rating. Are the same issues coming up repeatedly? Are complaints being addressed or ignored? Patterns matter more than individual reviews.
- Overloaded portfolio managers. Some strata managers handle too many properties at once, leading to delayed responses and inconsistent service. Ask how many properties or lots your assigned manager currently oversees.
How Strata Management Consultants can help your Committee
Choosing the right path for managing your strata property is a crucial first step. There is an option to self-manage, but you have to consider the size of your property, the complexity of its needs, and the resources available within your owners corporation.
If you do decide to appoint a manager, the process can be daunting. There’s the legal framework to navigate, existing contractual obligations to manage, and the pressure of finding someone who won’t repeat past mistakes.
That’s where we come in. We work closely with your committee from start to finish, guiding you through a smooth transition to a new and effective strata manager. Engaging a strata consultant offers several advantages:
- You’ll have an expert on your side, ensuring every step is fully compliant with the law.
- Our services come at no cost to owners or committees, as our fees are covered by the new manager.
- You’ll gain access to a panel of qualified and approved managers, giving you a range of trusted options.
- We remain impartial and independent, always putting your interests first.
With over 14 years of experience vetting strata managers, we’ve helped hundreds of owners corporations and committees find the right fit, saving them time, money, and unnecessary stress. In the video below, Toni explains how we guide committees through the process.
Finding the best strata manager for your needs
Whether you’re replacing a developer-appointed manager or choosing one for the first time, the process doesn’t have to be overwhelming. If you know what to look for, qualifications, experience, strong communication, and alignment with your property’s specific needs, you’re already ahead of most committees.
At Strata Consultants, we only partner with carefully selected and vetted management companies in Melbourne. We’ve done the due diligence so you don’t have to.
Contact us today for expert guidance and make the right choice for your property’s future.
