Building Managers and Caretakers: How to Audit the Person Running Your Building
The job is bigger than opening doors
- The building manager is often the person who sees problems first.
- The contract should match what the building actually needs.
- Disclosures, access control and maintenance records deserve committee attention.
In many apartment buildings, the building manager is more visible than the strata manager. They meet contractors, receive residents' complaints, manage keys, inspect common areas, notice leaks, open plant rooms, arrange access and quietly decide which small problems become large ones.
That makes the role powerful. It also makes it easy to under-audit.
Committees often spend months arguing about strata manager fees, then renew a building management or caretaker agreement without the same scrutiny. That is a mistake. A good building manager is valuable. A vague contract, weak supervision or undisclosed benefit can cost owners for years.
The NSW strata reforms that commenced in October 2025 added stronger duties and disclosure requirements around building managers. Even outside NSW, the same practical principle applies: if one person is being paid to help run the building day to day, the committee needs to know exactly what they do, what authority they have, who they deal with and what records they keep.
Building Manager, Caretaker, Facilities Manager: What Is the Difference?
The titles vary by state and by contract. Some buildings call the role a building manager. Queensland schemes often use caretaker language. Larger buildings may have a facilities manager. Smaller schemes may have a resident owner doing a paid part-time role.
Do not get trapped by the label. Read the contract.
The contract should tell you the scope of work, hours, reporting obligations, authority limits, remuneration, termination rights, insurance requirements, conflicts rules and whether the person or company can engage contractors.
If the contract does not make those things clear, the committee is managing the role by assumption. Assumption is where many building management disputes begin.
The Audit Questions
Start with the contract term. How long is the agreement? When does it expire? Does it roll over automatically? What notice is required to terminate or renegotiate it?
Check the scope. Does the agreement cover cleaning oversight, contractor access, minor repairs, resident communications, move-in management, key control, fire safety coordination, lift access, waste areas, pool or gym areas, gardens, defects management and after-hours emergencies? If the building expects these things, they should be in writing.
Check authority. Can the building manager approve spending? If so, what is the limit? Can they issue work orders directly to contractors? Can they instruct contractors preferred by the strata manager? Can they act without committee approval in emergencies?
Check reporting. Is there a monthly report? Does it list completed tasks, open issues, contractor attendance, incidents, defects, complaints and upcoming maintenance? A verbal update at the committee meeting is not enough for a complex building.
Check conflicts and benefits. Does the building manager receive any referral fees, gifts, commissions, discounts, rebates or other benefits from contractors or suppliers? The answer should be in writing.
Check insurance. Does the manager hold the required public liability, workers compensation and professional indemnity cover where applicable? Are certificates current?
Check keys and access. Who has keys, fobs, garage remotes, plant room access and system credentials? How are they logged? What happens when staff change?
Check resident complaints. Are complaints recorded, triaged and closed, or are they handled informally until someone escalates?
Check contractor performance. Does the building manager keep records of who attended, when, what they did, what remains open and whether the invoice matches the work?
Check after-hours arrangements. If a pipe bursts at 10 pm, who takes the call? What authority do they have? Which contractors are used? How is the committee notified?
The Warning Signs
The first warning sign is a long contract with weak performance standards. A building should not be tied to years of management without clear service expectations.
The second is contractor concentration. If the same contractors receive most work because "the building manager likes them", ask why. Familiarity can be useful. It can also hide lazy procurement.
The third is missing records. A good building manager leaves a trail. A weak one leaves stories.
The fourth is blurred authority. If residents think the building manager can approve renovations, waive by-laws, spend committee money or settle disputes, the role has drifted beyond its contract.
The fifth is gatekeeping. A manager who blocks committee access to records, contractor details or site information is no longer just performing a service. They are controlling the building's information.
The sixth is dependency. If the building cannot function for two weeks while the building manager is on leave, the systems are too personal.
What Changed in NSW
The NSW reforms added new building manager duties relating to safety, repair and maintenance, disclosure and acting in the scheme's best interests. Building manager candidates also have to declare benefits that may affect fees charged to owners corporations.
The reform direction is clear. Building managers are being treated less like informal helpers and more like people with real influence over safety, spending and records.
Committees should not wait for a dispute before applying that standard. The cleanest time to audit the role is before appointment or renewal.
What Good Looks Like
A good building manager agreement is specific. It says what the role covers and what it does not.
A good reporting process is written. The committee receives a short, regular report with open items, closed items and decisions needed.
A good access system is logged. Keys, fobs, remotes, contractor access and plant room entry are recorded.
A good conflicts process is explicit. The manager confirms in writing whether they receive any benefit from suppliers.
A good renewal process includes benchmarking. The committee compares the role, cost and performance against similar buildings before extending the contract.
Most importantly, a good building manager makes the committee more informed, not more dependent.
How to Run the Review
Put the review on a committee agenda at least six months before contract expiry. Waiting until the renewal date gives the committee fewer options.
Create a simple scorecard: contract clarity, cost, responsiveness, record quality, contractor management, resident communication, compliance support and conflicts disclosure.
Ask owners and residents for feedback, but separate useful evidence from personality complaints. "The foyer is dirty every Monday after weekend moves" is useful. "They are rude" needs detail.
Compare the current scope and fee with at least two alternatives. That does not mean changing managers. It gives the committee a market view.
If performance is poor, set written improvement requirements before termination. If the issue is serious or involves conflict, get legal advice.
What UnitBuddy Tracks
UnitBuddy can track building manager contracts, duties, monthly reports, contractor access, open maintenance, incident records, conflicts disclosures and renewal dates. The point is to make the role visible to the committee and recoverable by the next committee.
A building should not lose its operating memory when one person leaves.