Strata communities represent a unique blend of individual ownership and collective responsibility. From serene townhouse complexes to towering apartments to commercial blocks, these communities thrive on collaboration, effective communication, and skillful management. At the heart of it all lies the pivotal role of a strata manager, whose expertise and guidance are instrumental in ensuring the smooth functioning and harmonious interactions within these communities. In this article we delve into the fundamental elements that underpin the success of strata communities, exploring how adept strata managers play a vital role in their thriving ecosystem. Fostering Clear Communication One of the cornerstones of a successful strata community is clear communication. A proficient strata manager serves as the conduit through which important information flows seamlessly between owners, the strata committee, and service providers. Whether it's updates on maintenance schedules or reminders about upcoming meetings, timely and transparent communication lays the foundation for a cohesive strata environment. Encouraging Active Participation Encouraging active participation from owners is pivotal in nurturing a vibrant strata community. A proficient strata manager not only fosters a strong sense of ownership and belonging among owners but also motivates them to engage actively in meetings and decision-making processes. By empowering owners to play an active role, the manager cultivates a community where every voice is heard and valued, fostering collaboration and collective ownership of the community's well-being. Upholding Respect for Rules and By-laws Consistent enforcement of strata by-laws is essential for maintaining order and harmony within the community. A proficient strata manager ensures that rules are upheld impartially, providing guidance to residents on compliance and addressing any violations promptly. Through clear communication and fair enforcement, the manager helps create a respectful and law-abiding community environment. Supporting Effective Governance Behind every well-functioning strata community is a dedicated strata committee supported by a knowledgeable manager. From financial management to legal compliance, the manager assists the committee in fulfilling its duties effectively. By providing guidance and support, the manager empowers the committee to make informed decisions that benefit the entire community. Ensuring Financial Stability Sound financial management is essential for the long-term sustainability of a strata community. A competent strata manager oversees budgeting, reserve fund planning, and financial reporting, ensuring that resources are allocated wisely and transparently. By maintaining financial stability, the manager helps safeguard the community's assets and ensures ongoing maintenance and upkeep. Facilitating Maintenance and Upkeep Preserving the physical integrity of common areas and facilities is paramount in a strata community. The strata manager (in the absence of a building manager) takes the lead in coordinating routine maintenance tasks, obtaining quotes for repairs, and overseeing contractors. Through proactive maintenance and diligent upkeep, the manager ensures that residents enjoy a safe and well-maintained living environment. Resolving Conflicts with Diplomacy Conflicts are inevitable in any community setting, but how they are addressed can make all the difference. A skilled strata manager serves as a mediator, facilitating constructive dialogue and resolving disputes with diplomacy and fairness. By promoting open communication and conflict resolution mechanisms, the manager helps maintain peace and harmony within the community. Embracing Adaptability and Flexibility Change is inevitable, and a thriving strata community must be adaptable and flexible in its approach. The strata manager stays abreast of evolving regulations, trends, and community needs, advising the committee on relevant policies and strategies. By embracing adaptability and innovation, the manager helps ensure that the community remains resilient and responsive to changing circumstances. In conclusion, the success of a strata community hinges on the expertise and dedication of its strata manager. At Compass Strata, our team is committed to nurturing vibrant, harmonious environments where owners are thrive. From fostering clear communication to promoting community engagement and resolving conflicts, our skilled managers leverage their expertise to create inclusive and sustainable communities. By partnering with Compass Strata, strata communities can rest assured that they are in capable hands, dedicated to their well-being and long-term prosperity. Reach out today to switch up to a better strata journey.

Understanding the distinction between common property and lot property is essential for strata owners to navigate their responsibilities effectively. This knowledge forms the foundation for clear delineation of duties between owners and the owners corporation, ensuring transparency and harmonious strata living. Common property is defined in the Strata Schemes Development Act 2015 as follows: common property, in relation to a strata scheme or a proposed strata scheme, means any  part of a parcel that is not comprised in a lot (including any common infrastructure that is not part of a lot). Defining Common Property: Common property refers to the areas within a strata scheme that are collectively owned by all lot owners. These spaces are shared and typically include items like driveways, stairwells, gardens, and recreational facilities. The management and maintenance of common property are overseen by the owners corporation. Understanding Lot Property: Lot property, on the other hand, is the individual, privately-owned space within the strata scheme. This encompasses the actual apartment or unit and can extend to other areas like balconies or courtyards. Lot owners have exclusive rights over their lot property but must adhere to by-laws set by the owners corporation. Exclusive Use Areas: In some cases, a lot owner may be granted exclusive use rights to certain parts of the common property, like parking spaces or storage areas. These areas remain common property, but the specific use is allocated to a particular lot owner. Responsibilities for Maintenance: The responsibility for maintenance and repair varies between common property and lot property. Common property upkeep is a shared responsibility funded by strata levies, while lot property maintenance is the sole responsibility of the individual lot owner. By-laws Governing Usage: By-laws play a significant role in defining how common property and lot property can be used. These rules, set by the owners corporation, help maintain order, resolve disputes, and ensure that the rights and responsibilities of all lot owners are respected. Below is a general guide of Common Property versus Lot Property but it's important to note that owners or owners corporations possess the authority to alter, add to, or remove common property after the registration of the strata plan, provided they follow due process. This flexibility allows for adjustments and modifications to better suit the evolving needs and preferences of the strata community, subject to adherence to established procedures and regulations. The Strata Community Association offers a valuable resource titled 'Who's Responsible? A Guide to Common Property,' which presents a comprehensive list clearly delineating the responsibilities of owners and owners corporations. This document serves as a helpful reference, providing clarity on the distinct roles and obligations associated with common property within a strata scheme. When uncertainties arise regarding responsibilities for common property or lot property, it is advisable to consult with your strata manager. Their expertise and knowledge of the specific strata scheme can provide accurate guidance tailored to the individual circumstances of your property. From understanding the nuances of common property and lot property distinctions to addressing broader strata management requirements, our dedicated team at Compass Strata is devoted to ensuring owners stay informed, enabling them to make informed decisions. Contact us today for expert guidance tailored to your strata needs.

Strata living, with its diverse communal spaces and shared responsibilities, thrives on effective management. Two key roles play vital parts in this ecosystem: Strata Managers and Onsite Building Managers. While their objectives align in fostering a harmonious community, their responsibilities and scopes differ significantly. It's common for roles to overlap in smaller communities due to budget constraints that make it impractical to hire an onsite building manager. In such cases, the strata manager often assumes both responsibilities. Let's delve into the distinctions to gain a clearer understanding. Strata Manager: The Architects of Administrative Precision Strata Managers serve as the administrative architects, overseeing the broader aspects of strata living. Their role encompasses: Financial Oversight: Strata Managers handle budgeting, financial planning, and fee collection. They ensure transparent accounting practices, making certain that funds are allocated appropriately for maintenance, repairs, and shared services. Legal Compliance: Staying abreast of complex strata laws and regulations is a key responsibility. Strata Managers guide Owners Corporations on legal compliance, ensuring that decisions align with statutory requirements. Meeting Facilitation: From organizing Annual General Meetings to facilitating decision-making processes, Strata Managers act as the conduit for open communication and consensus-building among owners. Conflict Resolution: Strata Managers mediate disputes and conflicts, promoting a harmonious living environment. Their objective is to address issues swiftly and diplomatically. Onsite Building Manager: The Guardians of Day-to-Day Operations Onsite Building Managers take a more hands-on approach, focusing on the daily operations within a strata property. Their responsibilities include: Facilities Management: Onsite Building Managers handle the day-to-day upkeep of facilities such as gyms, pools, and common areas. They coordinate maintenance schedules and address minor repairs promptly. Security Oversight: Ensuring the safety and security of residents is paramount. Onsite Building Managers may coordinate security measures, respond to emergencies, and oversee access control systems. Tenant Relations: For rental properties within the strata, Onsite Building Managers often act as the first point of contact for tenants. They address concerns, facilitate move-ins and move-outs, and uphold community guidelines. Emergency Response: In the event of emergencies or unexpected issues, Onsite Building Managers play a crucial role in coordinating swift responses and ensuring the well-being of residents. While Strata Managers and Onsite Building Managers have distinct roles, their collaboration is essential for seamless strata living. Strata Managers provide strategic oversight and legal guidance, while Onsite Building Managers offer on-the-ground support for day-to-day operations. Together, they contribute to a thriving, well-managed community. Strata Managers as Multifaceted Guardians In strata communities where an onsite building manager isn't present, Strata Managers seamlessly step into the void, shouldering additional responsibilities to ensure the smooth operation of day-to-day activities. This includes overseeing maintenance tasks, coordinating repairs, and handling emergency situations. While their primary role revolves around strategic planning and legal compliance, Strata Managers, in the absence of an onsite counterpart, become versatile figures, adept at juggling various operational aspects. In such an all-encompassing role, the experience of the strata manager becomes quintessential. This adaptability showcases the dedication of Strata Managers to the wholistic well-being of the strata community, ensuring that residents experience a high standard of living even in the absence of an onsite building manager. At Compass Strata, our seasoned team is equipped to navigate diverse scenarios. Whether you seek strategic guidance or hands-on operational support, we are committed to elevating your strata living experience.

Are you a new owner venturing into the realm of strata living in New South Wales (NSW)? Congratulations on your property acquisition! As you embark on this communal living journey, understanding the dynamics of strata living is crucial for a harmonious and fulfilling experience. Here's a comprehensive guide to help new owners navigate the intricacies of strata living. Understanding Strata Living: What is Strata Living? Strata living involves shared ownership of a property, typically within a multi-unit complex. Owners, or "lot owners," collectively manage and maintain common areas, ensuring the overall well-being of the strata community. The Strata Committee: Each strata scheme has a governing body known as the Strata Committee. Comprising elected owners, this committee oversees day-to-day operations, financial matters, and decision-making processes within the strata community. Key Considerations for New Owners: Strata Levies: Strata levies are regular fees paid by owners to cover the shared expenses of the strata scheme. Understanding the types of levies, including strata fees, capital works fees, and special levies, is essential for budgeting purposes. Unit Entitlement: Unit entitlement determines the proportionate share of ownership each lot has in the entire strata scheme. New owners should grasp the concept of unit entitlement to understand their financial contributions and voting rights. By-Laws: Strata schemes have by-laws that outline rules and regulations governing community living. Familiarize yourself with these by-laws to ensure compliance and a respectful coexistence with fellow owners. Meetings and Decision-Making: Regular strata meetings provide a platform for owners to discuss important matters and make decisions affecting the community. New owners should actively participate and engage in these meetings to stay informed and contribute to the decision-making process. Engage with the Strata Manager: Strata schemes often employ a professional strata manager to assist with administrative tasks. New owners should establish open communication with the strata manager, seeking guidance on procedures, dispute resolution, and other strata-related matters. Talk to the Building Manager: In larger strata schemes, you may also encounter an onsite building manager. They play a crucial role in handling onsite issues, including coordinating move-in/out, managing bookings for communal facilities, and ensuring the day-to-day smooth operation of the property. Proactive Strata Living Tips: Open Communication: Foster open communication with fellow owners and the Strata Committee. Collaboration and understanding contribute to a positive strata living experience. Stay Informed: Regularly update yourself on strata-related developments, meeting outcomes, and any changes to by-laws. Being informed ensures you can actively participate in the strata community. Respect Common Spaces: Respect shared spaces and adhere to community guidelines. Consideration for fellow owners promotes a harmonious living environment. Now that you're settled into your strata living experience in NSW, it's natural to envision ways to enhance the management of your building and foster a stronger sense of community. At Compass Strata, we are more than ready to partner with you on this journey. Whether you're seeking improved efficiency, transparent communication, or tailored solutions to meet your community's unique needs, we have the expertise to turn your strata living goals into reality. Don't hesitate to reach out to Compass Strata for a collaborative approach to strata management. Our team is committed to working with you to elevate your community experience. Together, we can implement positive changes that contribute to the well-being and satisfaction of all residents. Contact Compass Strata today, and let's embark on this journey toward enhanced strata living together. Your community's success is our priority.

Unit Entitlement (UE) is a crucial concept in the realm of strata schemes, playing a significant role in determining the financial contributions and voting rights of individual owners within a strata development. This concept revolves around the notion that not all units or lots in a strata scheme are created equal. Here's a comprehensive breakdown of what Unit Entitlement entails: 1. Defining Unit Entitlement: Unit Entitlement represents the proportional value assigned to each individual lot or unit within a strata scheme. It serves as the basis for calculating levies, including strata levies, capital works levies, and special levies, as well as determining voting rights. 2. Allocation of Unit Entitlement: The developer or original owner of a strata scheme, usually with the help of a quantity surveyor, initially assigns Unit Entitlement during the registration of the strata plan. The allocation is typically based on various factors such as the size, location, and features of each lot. Larger or more strategically positioned lots may have a higher Unit Entitlement. 3. Financial Implications: Owners with a higher Unit Entitlement generally contribute more to the overall levies of the strata scheme. This ensures that those with more substantial interests in the scheme bear a proportionate share of the financial responsibilities. 4. Voting Rights: Unit Entitlement also influences the voting power of owners in key strata decisions. Owners with a higher Unit Entitlement often have more significant voting rights, aligning with their greater financial stake in the strata scheme. 5. Changes in Unit Entitlement: Changes to Unit Entitlement are possible but typically require the passing of a special resolution at a general meeting. Depending on the size and complexity of the scheme, it can be a complex and expensive process that typically involves legal and surveying professionals. Alterations might be prompted by modifications to lot sizes, amalgamation of lots, or other changes in the strata scheme. 6. Ensuring Fairness and Equity: The Unit Entitlement system aims to establish a fair and equitable distribution of financial obligations and decision-making influence among strata owners. It reflects the relative value and significance of each lot in the overall scheme. Understanding Unit Entitlement is pivotal for strata owners as it forms the basis for their financial commitments and participation in the governance of the strata scheme. If you have questions or need assistance navigating the complexities of Unit Entitlement, Compass Strata stands ready to provide expert guidance and support. Reach out to us today for effective strata management.

When diving into the world of strata, it's crucial to grasp the dynamics of strata levies, as they play a significant role in your ongoing commitment. However, the intrigue lies in the fact that not all strata levies are created equal. Low fees might raise a red flag, signaling potential issues with building maintenance or overall upkeep. In this blog post, Compass Strata unravels the mysteries surrounding strata levies, shedding light on why they differ from one building to another. Unveiling the Strata Levy Landscape Strata levies encompass different components, each serving a specific purpose: Administration Levy: These are the standard, recurring fees covering day-to-day expenses such as maintenance, cleaning, insurance, and common area utilities. They're an annual commitment for all owners. Capital Works Levy: Set aside in a dedicated fund, these fees cater to major renovations, repairs, and significant maintenance beyond the scope of standard daily operations. The fund may also finance upgrades and approved infrastructure projects. Special Levies: When capital works funds fall short for substantial improvements or urgent maintenance, special levies come into play. The implementation of these levies requires approval through a General Meeting vote. Both the Admin and Capital Works levy are struck quarterly, whilst the frequency of any Special Levy (if struck) will depend on the urgency in which funds are required. Deciphering Equality and Disparity in Levies While some buildings might have uniform strata fees for all apartments, most situations involve varying sizes and, consequently, different strata levies. The size and specific features of each unit contribute to the fee calculation. For instance, additional amenities like balconies, extra parking spaces, or direct courtyard access enhance a unit's value, leading to higher strata fees. Ultimately levies are struck based on your Unit Entitlement. Moreover, investors with multiple apartments are subject to individual strata fees for each property they own. This diversity in fees aligns with the principle of paying based on the specific value and attributes of each unit. Cracking the Code: How Strata Fees Are Determined Strata fees are not a one-size-fits-all scenario; they depend on a myriad of factors: Property Value: Strata fees often range from 0.3% to 1.2% of the property value. Buildings with added amenities command higher percentages, reflecting the overall value of the structure. Onsite Services: The level of onsite services, such as concierge, security, or cleaning, directly influences strata levies. More services mean higher fees to cover the additional costs. Location Matters: Desirable locations translate to higher property values and, consequently, elevated strata fee percentages. Investing in prime locations often comes with a premium on strata fees. Unlocking the secrets of strata levies can be challenging, especially for those new to strata living. Let Compass Strata be your knowledgeable guide through this complex terrain. If you seek expert assistance in strata management or have concerns about your scheme's financials, reach out to Compass Strata today. Allow us to handle the responsibilities of strata management, ensuring transparency and peace of mind for all lot owners.

Discovering an abandoned vehicle in your strata parking spot can be frustrating, but knowing your rights and the proper procedures can help resolve the situation effectively. In this article, we'll explore the steps you can take to deal with an abandoned vehicle in your strata complex, ensuring a smooth process and a clutter-free environment for all residents. Understanding Your Rights Abandoned vehicles on common property in strata schemes are governed by the Uncollected Goods Act 1995. This act allows the owners corporation or individuals to dispose of abandoned vehicles, provided they comply with the procedures outlined in the Act. It's essential to understand your rights under this legislation to ensure proper compliance and resolution of the issue. Complying with the Act To comply with the Uncollected Goods Act, it's crucial to keep appropriate records of the sale or disposal of abandoned goods. Documentation for low-value items should be retained for at least 12 months, while records for higher-value items must be kept for at least 12 years. Additionally, it's essential to note that goods cannot be confiscated solely due to the owner's outstanding debts, such as unpaid levies. Steps to Remove Abandoned Vehicles in Strata Obtain Certificate from Commissioner of Police: Apply for a certificate stating the vehicle is not recorded as stolen at least 28 days before moving or selling it. Provide vehicle details such as make, model, color, and registration number. Obtain Written Search Result: Obtain a written search result from the Personal Property Securities Register confirming the vehicle is not stolen. Provide Notice of Disposal: Issue a notice regarding disposal, specifying the notice period based on the vehicle's value. For vehicles worth less than $1,000, a verbal or written notice with a 14-day period is sufficient. Dispose of the Vehicle: If the vehicle remains unclaimed after the notice period, dispose of it appropriately. For vehicles valued between $1,000 and $20,000, conduct a public auction or private sale. For vehicles worth over $20,000, obtain an order from the NSW Civil and Administrative Tribunal, which will determine the notice type, period, and disposal method. Transfer Funds: Ensure any funds collected from the vehicle's sale are given to the Chief Commissioner of Revenue in New South Wales if they cannot be given to the owner. Dealing with an abandoned vehicle in your strata complex can be a challenging task, but by understanding your rights and following the proper procedures, you can effectively resolve the issue. If you require assistance or guidance throughout the process, don't hesitate to contact Compass Strata for expert support and advice tailored to your strata management needs.

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!