How to Change Strata Managers in NSW: Process, Notice Periods & Costs
- Timothy Lee
- Jan 29, 2024
- 9 min read
Considering a switch in strata management? Whether it's slow communication, financial transparency, unactioned repairs or the ownership group just feels like it's time for a change, you're not alone, and the process is more straightforward than most committees expect. This guide walks you through changing strata managers in NSW step by step: the legal requirements under the Strata Schemes Management Act 2015, notice periods, general meeting rules, the handover, realistic timelines and costs. We've also included a section on compulsory management under section 237, the path available when a scheme's problems run deeper than its managing agent.
Can you change strata managers in NSW?
Yes. Every owners corporation in NSW has the right to change its strata managing agent. Both the appointment and the termination of a strata manager are decisions of the owners corporation, made by ordinary resolution, a simple majority vote, at a general meeting. That can be your Annual General Meeting (AGM) or General Meeting (GM) called for the purpose.
Two things follow from this. First, the strata committee alone cannot appoint or terminate a strata manager, that decision belongs to all owners at a general meeting. Second, your current manager cannot stop you from leaving. At most, your agency agreement determines when and on what terms you exit. Most schemes that follow the steps below complete the change within six to twelve weeks.
Is it time for a change?
Not every frustration justifies a switch, and to be frank, changing managers isn't always the answer, sometimes the issues sit within the scheme itself, and a new agent inherits the same problems. But some patterns rarely fix themselves: emails and calls that go unanswered for weeks; levies collected while maintenance sits idle; missing financial reports; AGMs run as box-ticking exercises; and commissions or supplier relationships that were never properly disclosed, and worse forced onto the owners corporation.
On that last point, it's worth knowing that since the NSW strata reforms commenced in 2025, strata managing agents must make enhanced disclosures about commissions, supplier relationships and training services. If your agent hasn't provided these, that alone is a legitimate reason to review the relationship.
If several of these sound familiar, here's how the process works.
Step 1: Review your existing agency agreement
Obtain a copy of the final executed Strata Agency Agreement. It's more common than you may think that a strata committee doesn't actually have a copy of this important document. If so, request it in writing. The agreement must be made available to the owners corporation at all times.
Once you have it, check three things:
The term and expiry date. Under section 50 of the Strata Schemes Management Act 2015 (NSW), a strata manager appointed at a scheme's first AGM can only be appointed for 12 months; every appointment after that runs for a maximum of three years. Your agent must give the owners corporation written notice of the end of the term at least three months (and no more than six months) before expiry. If your agreement is approaching its end date, you may simply be able to let it lapse and appoint a new manager, no termination required at all.
Rollover and extension provisions. If the term expires before your next AGM, the strata committee can extend the appointment for successive periods of up to three months while a decision is made. One trap to watch: under section 50(7), a three-year agreement is taken to include an option for the agent to extend for up to three further months if the owners corporation decides not to reappoint, unless you give the agent at least three months' written notice that they won't be reappointed. If you know you want to change, put that notice in writing early.
Early termination clauses. Terminating mid-term is possible, but only in accordance with the instrument of appointment and authorised by a general meeting resolution (section 50(3)). Breaking the agreement prematurely can be costly, so understanding the exit clauses is crucial. It's worth knowing that since 1 July 2025, unfair contract terms are banned in standard-form contracts with owners corporations, so an excessive exit charge may now be challengeable. If the termination provisions look unreasonable, or the agent has breached the agreement, the owners corporation can apply to the NSW Civil and Administrative Tribunal (NCAT). Seek advice before paying to exit, there may be provisions in the contract that allow early termination, but the appropriate steps need to be followed.
Step 2: Discuss with the committee and owners
The decision to change is made by majority vote at a general meeting, therefore the practical work is building support. Share your concerns with the strata committee first, they play a key role in decision-making, and document specific, factual issues: response times, unactioned repairs, missing financials. Generalised complaints rarely move a meeting; a dated list of evidence does.
From there, share the case for change with fellow owners along with the proposed alternative. In most schemes the committee's recommendation carries real weight, but remember the vote belongs to all owners.
Step 3: Look for a new management team
Begin the search early and explore your options before making any decisions. Obtain proposals from at least two providers, and consider factors beyond price: experience managing similar communities, availability to the committee and owners, and cultural fit.
A five-minute check every committee should do: NSW Fair Trading's free Strata Hub includes a Strata manager finder that lets you verify each candidate's licence status and any compliance or disciplinary records against the public register.
When comparing proposals, assess each candidate against a consistent set of selection criteria:
What to check | Why it matters |
Who will actually manage your building, and their experience | The agency brand matters less than the individual manager's capability and workload |
Experience with communities like yours | A scheme with arrears, disputes or major works needs a manager who has run those matters before |
What the base fee covers versus additional charges | Low fees can sometimes mean low service. Understand how additional services work. |
Commission and insurance disclosures | Required under the 2025 disclosure reforms, opacity here is a red flag |
Exit terms in their draft agreement | Check the process and cost of changing managers before the contract ends |
Step 4: Pass the motion at a general meeting
A strata managing agent must be appointed by an instrument in writing, authorised by a resolution at a general meeting of the owners corporation (section 49). In practice, the meeting deals with two motions: terminating (or not renewing) the current agent, and appointing the new one on the terms of the attached agency agreement. Both pass on a simple majority.
If your next AGM is close, the motions can simply be added to its agenda. If not, owners holding at least 25% of unit entitlements can call a general meeting by qualified request. Your incoming manager will typically assist with the notice, motions and proxies so the meeting is validly convened. If the motion succeeds, the owners corporation must notify the outgoing agent in writing.
Step 5: The management handover
Once the new appointment takes effect, the outgoing manager must hand over the owners corporation's property: the strata roll, books and records, financial statements, trust account funds, insurance policies, contracts, keys and access devices. Your incoming manager should drive this process, checking records against a handover schedule, reconciling the trust account, confirming insurance continuity, and chasing missing items. A delayed or incomplete handover is one of the most common friction points in a transition, and an experienced incoming manager will know exactly what to demand and how to escalate if records are withheld.
A good incoming manager will also treat the handover as a diagnostic: reviewing the capital works fund position, the arrears ledger, outstanding maintenance and compliance items (fire safety and the AFSS among them), and any live legal matters, then work with the committee to agree on priorities.
How long does it take, and what does it cost?
Timeline: allow six to twelve weeks end to end in a typical case, two to four weeks to review the agreement and gather proposals, two to three weeks to convene the general meeting (allowing for notice periods), and two to four weeks for handover. If your current agreement is near expiry, the change can be timed to the expiry date at no extra cost.
Cost: there is no statutory fee for appointing a new manager. The costs to watch are early-termination amounts under your current agreement (if exiting mid-term) and any charges the outgoing agent applies for preparing handover records. Most incoming managers, Compass Strata included, may charge an onboarding fee to cover setup costs.
When changing managers isn't enough: compulsory management
Sometimes the problem runs deeper than the managing agent. If an owners corporation itself has stopped functioning, a committee that can't reach decisions or won't act, common property left to deteriorate, levies not being raised or collected, mandatory insurance lapsed, or persistent non-compliance with the legislation, then replacing the agent simply hands a new manager the same dysfunction.
For these situations, NSW law provides a circuit-breaker. Under section 237 of the Strata Schemes Management Act 2015, NCAT can appoint a compulsory strata managing agent to take over some or all of the functions of the owners corporation - including, where ordered, the functions of the chairperson, secretary, treasurer or the strata committee itself. The Tribunal may only make the order if satisfied the scheme's management is not functioning satisfactorily, the owners corporation has failed to comply with a Tribunal order, has failed to perform its duties, or owes a judgment debt.
A few practical points owners should understand:
Who can apply: a lot owner (or another person with an estate or interest in a lot), a person who holds an unsatisfied Tribunal order against the scheme, a judgment creditor, or the Secretary. The Tribunal can also act on its own motion.
What the order looks like: the appointed agent must hold a strata managing agent's licence and consent in writing to the appointment. The order specifies the functions transferred, the remuneration and the duration, capped at two years. Before the appointment ends, the agent must convene a general meeting and return all records to the owners corporation, with the aim of handing back a functioning scheme.
What it means day to day: decisions that previously stalled at committee level are made by the compulsory manager, levies are set and collected, maintenance and compliance obligations are actioned, and owners' interests in the property are protected while governance is restored.
Applying for, or responding to, a section 237 appointment is not something to navigate alone. The application needs evidence of dysfunction, a proposed agent who has consented, and properly framed orders. This is where Compass Strata's consultancy service comes in. We provide clear, practical advice to individuals and owner groups weighing up their options: whether your scheme's problems can be fixed by changing managers, whether a section 237 application is warranted, how to prepare it, and what the appointment will mean for your building. And with proven experience managing schemes under compulsory appointment, we understand both sides of the order, what the Tribunal expects, and what it takes to return a dysfunctional scheme to healthy self-governance.
Frequently asked questions
Q: Can we terminate our strata manager mid-contract?
Yes, if the termination is authorised by a resolution at a general meeting and carried out in accordance with your agency agreement (s.50(3), Strata Schemes Management Act 2015). Check the termination clauses first; if they appear unfair or the agent has breached the agreement, the owners corporation may apply to NCAT.
Q: How much notice do we need to give?
It depends on your agreement. If you simply don't want to renew at the end of the term, give the agent written notice at least three months before expiry. Mid-term termination notice periods are set by the agreement itself.
Q: Do all owners need to agree?
No. Changing strata managers requires only an ordinary resolution, a simple majority of votes cast at a general meeting. It is not a special or unanimous resolution.
Q: Can the strata committee change managers without a general meeting?
No. The committee can extend an expiring appointment by up to three months at a time pending a decision, but appointing or terminating a strata managing agent requires a resolution of the owners corporation at a general meeting.
Q: What happens to our trust account funds?
Levies and other funds held in the agent's trust account belong to the owners corporation. On termination, the outgoing agent must account for and transfer all funds as part of the handover, together with the books and records.
Q: What is compulsory strata management?
It's the appointment of a strata managing agent by NCAT under section 237 of the Act to exercise some or all of the functions of a dysfunctional owners corporation, including committee and office-holder functions where ordered. Appointments run for a fixed term of up to two years, with the goal of restoring the scheme to self-governance.
Q: Who can apply for a compulsory manager under section 237?
A lot owner or other person with an interest in a lot, a person holding an unsatisfied Tribunal order against the scheme, a judgment creditor of the owners corporation, or the Secretary. The Tribunal can also make the order on its own motion.
Q: Does changing strata managers cost the owners corporation anything?
Often nothing, if timed to the end of the current term. Mid-term exits may involve break fees under the agreement, though excessive charges may be challengeable as unfair contract terms since 1 July 2025. Outgoing agents often charge for preparing handover records, and the incoming agent may charge an onboarding/setup fee.
Feeling overwhelmed? You don't have to navigate this alone
Switching strata management may seem complex, but with Compass Strata, we've mastered the process, our simple 4Rs transition framework guides your scheme from first conversation to completed handover, and we'll review your current agency agreement and exit obligations with you at no cost. And if your community's challenges go beyond the managing agent, our consultancy service can help you assess whether compulsory management under section 237 is the right path, and support you through it.
Count on us to guide and support you from start to finish. Ready for a change? Start here!
