Choosing the right strata management company can significantly affect the financial stability, compliance, and day to day experience of your building. For Victorian owners corporations, the right manager helps protect property values, improve communication, and support better long term decision making.
With so many providers offering similar promises, it can be difficult to know what separates a reliable strata manager from one that may create ongoing issues for your Committee and owners.
This guide explains what to look for when comparing strata management companies and how to choose a management partner that aligns with your building’s needs.
Key Takeaways:
- A proactive strata manager helps reduce risk, maintain compliance, and support the long term value of the property.
- Clear communication and financial transparency are essential when evaluating a strata management company.
- Victorian owners corporations should assess how managers handle insurance, maintenance planning, and regulatory obligations.
- Changing to a better strata manager can improve service quality, financial oversight, and owner satisfaction.
Look for a strata manager with a strong risk management strategy
A capable strata manager does more than organise meetings and issue levy notices. They also help reduce operational and insurance risks that can affect the entire building.
Insurers generally favour buildings that are well maintained and professionally managed. A proactive approach to maintenance and compliance can help reduce claims, improve insurability, and support more stable premiums over time.
A good strata management company should:
- stay on top of scheduled maintenance and preventative works to help reduce unexpected repair costs and prolong the life of building assets
- respond quickly to defects and repair issues to prevent minor problems from escalating into more expensive damage
- help minimise avoidable insurance claims to support more stable premiums and stronger insurability
- maintain accurate records and contractor documentation to improve transparency, compliance, and decision making
- assist the Committee in planning future capital works to help owners prepare for major expenses and avoid financial shortfalls
Under the Victorian Owners Corporations Act 2006, owners corporations have responsibilities relating to maintenance and repair of common property.
Buildings that delay maintenance often experience rising repair costs, insurance complications, and owner dissatisfaction.
Check how the strata manager handles insurance valuations
Underinsurance remains a major concern for many Victorian apartment buildings and owners corporations. Rising construction costs have made outdated insurance valuations increasingly risky.
A reliable strata manager should also help the Owners Corporation stay properly protected and financially prepared by:
- Regular building valuations: arrange professional valuations so the insured value reflects current rebuilding costs, not outdated estimates
- Construction cost monitoring: track changes in rebuilding costs so cover can be adjusted before a claim exposes a shortfall
- Building Sum Insured reviews: help the Owners Corporation confirm the policy is adequate for reinstatement, debris removal, and professional fees
- Insurance documentation support: maintain accurate renewal records so the Committee can make informed decisions before approving cover.
Victorian legislation requires certain owners corporations to obtain building valuations at least every five years, although many Committees choose more frequent reviews due to changing market conditions and construction costs.
Without accurate valuations, owners may face substantial financial shortfalls following major damage or rebuilding claims.
Demand transparency in insurance dealings
Insurance transparency has become an increasingly important issue across the strata industry.
A trustworthy strata management company should clearly disclose:
- premiums: the base cost of the insurance policy
- GST: the Goods and Services Tax applied to the premium
- commissions: any remuneration the strata manager or broker receives from the insurer for placing the policy
- broker fees: any additional fees charged by the insurance broker for their services
Victorian legislation also requires strata managers to disclose commissions, payments, and beneficial relationships in certain circumstances.
Transparency allows the Committee and owners to make informed decisions about insurance coverage, pricing, and risk management.
When comparing strata managers, ask:
- Do they explain insurance recommendations clearly?
- Are all commissions disclosed?
- Do they provide multiple insurance options where appropriate?
- How involved are they during claims management?
Poor transparency can lead to mistrust, disputes, and unnecessary financial costs for owners.
If your Committee is finding it difficult to get clear answers about insurance, fees, or supplier arrangements, it may be worth taking a closer look at whether your current management setup is still serving the building well.
Strata Management Consultants can help Victorian Committees review their current arrangement and understand what better management could look like before making any decisions.
Prioritise safety and compliance
Compliance obligations continue to expand for Victorian owners corporations, particularly around building safety, maintenance obligations, and fire protection systems.
This has become even more important with the growing use of electric vehicle charging infrastructure and lithium-ion battery systems within apartment buildings.
A proactive strata manager should help the Owners Corporation:
- Confirm EV charging stations are properly certified and installed: unapproved or incorrectly fitted infrastructure can present serious fire risks, potentially resulting in higher premiums or exclusions from insurance coverage.
- Implement and maintain comprehensive fire safety protocols: this includes regular testing of fire protection systems, clear evacuation procedures and compliance with all applicable regulations.
- Monitor evolving insurer and regulatory requirements: staying informed allows the manager to advise the Owners Corporation on necessary adjustments to maintain compliance and favourable insurance terms.
Under Victorian legislation, owners corporations are responsible for repairing and maintaining common property and shared services.
Failure to address compliance issues can expose the building to safety risks, legal disputes, and insurance complications.
Choose a manager who stays informed and proactive
Strong strata managers act as advisers, not just administrators.
The strata industry continues to evolve through legislative reforms, insurance market changes, and increasing compliance expectations. A knowledgeable manager helps the Committee understand these changes and respond appropriately.
When evaluating a strata management company, look for one that:
- Regulatory updates: keep the Committee informed about relevant strata, insurance, and compliance changes, with clear explanations of what they mean for the building.
- Owner education: help owners understand their insurance and risk management responsibilities without overwhelming them with technical detail.
- Insurance market support: work with brokers and insurers to help the Owners Corporation compare options, understand coverage, and seek suitable terms for the property.
Under sections 46 and 47 of the Victorian Owners Corporations Act 2006, owners corporations are responsible for repairing and maintaining common property, shared services, and related infrastructure.
Failure to address compliance and maintenance issues can expose the building to safety risks, legal disputes, increased repair costs, and insurance complications.
Choose a manager who stays informed and proactive
Strong strata managers act as advisers, not just administrators.
The strata industry continues to evolve through legislative reforms, insurance market changes, and increasing compliance expectations. A knowledgeable manager helps the Committee understand these changes and respond appropriately.
When evaluating a strata management company, look for one that:
- keeps the Committee updated on legislative changes
- provides practical recommendations instead of reactive responses
- helps owners understand their obligations
- supports long term maintenance and financial planning
- advocates effectively with insurers, contractors, and suppliers
An experienced strata manager should also understand how Victorian legislation applies to owners corporations and help guide the Committee through decision making processes.
Choose a strata management company with clear communication
Communication problems are one of the most common reasons Committees decide to change strata managers.
Delayed responses, poor follow up, and unclear financial reporting can quickly create frustration among owners and residents.
A reliable strata management company should:
- Reviewing the current management agreement: understand the notice period, expiry date, and termination requirements outlined in your existing contract.
- Researching and obtaining proposals: identify suitable strata management companies and request detailed submissions covering services, fees, communication standards, insurance support, and compliance experience.
- Presenting options to the Committee: the Committee can review the proposals and recommend a preferred candidate to the Owners Corporation.
- Holding a general meeting: an Annual General Meeting or Extraordinary General Meeting is usually required to vote on appointing a new manager. The resolution needed may depend on the agreement, rules, and relevant Victorian requirements.
- Serving formal notice: once the decision is approved, formally notify the outgoing manager in line with the contract’s notice requirements.
- Facilitating the handover: the outgoing manager must return the Owners Corporation’s records and funds, while the incoming manager should guide the Committee through the transition.
Good communication helps prevent misunderstandings, improves accountability, and supports better decision making across the Owners Corporation.
If your current manager is difficult to contact or consistently fails to follow through, it may be time to consider changing strata managers.
How to change strata management companies in Victoria
If your current strata manager is underperforming, changing to a better management company can improve communication, financial oversight, maintenance follow-up, and owner confidence.
For Victorian owners corporations, the process should be handled carefully so the change is compliant and does not disrupt day to day management.
The process generally involves:
- Reviewing the current management agreement: check the contract expiry date, notice period, termination conditions, and any handover obligations before taking action.
- Identifying what needs to improve: list the main issues with the current manager, such as slow responses, unclear financial reporting, poor maintenance follow-up, or lack of insurance transparency. This helps the Committee compare new providers more objectively.
- Researching alternative strata management companies: request detailed proposals that explain fees, communication standards, insurance support, compliance experience, maintenance processes, and who will manage the building day to day.
- Presenting options to the Committee: the Committee can compare proposals, ask follow-up questions, and recommend a preferred strata management company to the Owners Corporation.
- Holding a general meeting: an AGM or EGM is usually required to vote on appointing a new manager. The type of resolution needed may depend on the current agreement, the owners corporation rules, and Victorian legislative requirements.
- Serving formal notice: once the decision is approved, the outgoing manager should be formally notified in line with the contract’s notice requirements.
- Managing the handover: the outgoing manager must return the Owners Corporation’s records and funds. The incoming manager should help the Committee manage the transition, confirm key documents have been received, and keep owners informed.
A well-managed changeover gives the new strata manager the information they need from the start and helps the Owners Corporation avoid delays, missing records, or confusion during the transition.
What questions should you ask before appointing a strata manager?
Before making a final decision, ask potential strata managers:
- How many properties do they currently manage?
- Who will be the primary contact for the building?
- How do they manage after hours emergencies?
- What reporting systems and communication tools do they use?
- How do they handle maintenance and contractor management?
- What experience do they have with similar Victorian apartment buildings?
- How are insurance commissions disclosed?
- What support do they provide during disputes or compliance issues?
The answers can reveal a great deal about how proactive, organised, and transparent the company will be once appointed.
Ready to find the right strata management company?
If your current strata manager is not meeting expectations, Strata Management Consultants can help guide your Owners Corporation through the process of finding a better management partner.
We assist Victorian Committees with evaluating strata management companies, reviewing management arrangements, and supporting smooth manager transitions.
Our team has helped hundreds of buildings across Melbourne and Victoria secure strata managers who communicate clearly, operate transparently, and provide stronger support for Committees and owners.
To discuss your current situation with one of our Consultants, contact Strata Management Consultants today.
