How to Change Strata Managers Without Wrecking Your Building

What to know before you act

• Change managers because the evidence supports it, not because one meeting was frustrating.
• The handover plan matters as much as the termination vote.
• Protect records, bank authorities, insurance renewals, and open maintenance items before the switch.

Changing managers is a legal process and a records handover problem. Buildings that plan for both make the transition more manageable.

Changing your strata manager is a major governance decision for an owners corporation. A good change can improve management quality, communication and financial transparency. A poor one can cause months of disruption: missing records, contested invoices, AGM notices that do not go out, contractors without a clear contact, and a divided committee.

The October 2025 reforms to the NSW Strata Schemes Management Act 2015 gave NCAT new power to vary or end management agreements where the manager operates in conflict with the OC's interests. That gives more buildings a way to make a change in 2026. The vote is only one part of the work. The committee also needs to protect the records, understand the contract, and preserve a working relationship while the handover happens.

When should a building change managers?

The decision to change managers should be made for specific, documented reasons, not for general dissatisfaction or because a single committee member has a preferred alternative.

Most reasons for change fit into four groups.

Service quality

Persistent failure to respond to communications, errors in financial statements, missed AGM notices, failure to enforce by-laws, or general administrative incompetence. The pattern, rather than any single incident, is what justifies change.

Cost

A management fee that is materially above market for buildings of comparable size and complexity. Most management contracts can be benchmarked against published fee schedules from competitors and from industry surveys, and a fee that is 30-50% above market is meaningful.

Conflict of interest

Disclosed or undisclosed commissions, related-party transactions, contractor referrals that do not appear to be at arm's length, or any of the patterns of conduct identified by the 2024 ABC Four Corners investigation and the subsequent reforms. The October 2025 reforms made this category of reason significantly more legally consequential.

Fit for the building

A manager whose business model no longer suits the building's needs. This can be a small specialist whose client has become more complex than they can handle, or a large firm using a standardised service that does not suit a building with particular needs.

A change backed by evidence is more likely to go well than one driven by a personality clash between the manager and a committee member.

Ending the existing agreement

The path for ending a management agreement depends on the contract and the state framework.

Expiry

Most management agreements run for an initial term of 12-36 months and continue on an annual basis after the initial term expires. The simplest pathway for change is to give notice not to renew the agreement at the next renewal point. Notice periods vary but are typically three to six months before the renewal date.

Termination for cause

Where the manager has materially breached the contract (failed to perform required services, breached confidentiality, breached fiduciary duties) the contract typically allows the OC to terminate with notice. This requires documented evidence of the breach and is most commonly used where the manager has acted in clear conflict with the OC's interests.

Termination by special resolution

Many management agreements contain provisions allowing the OC to terminate by special resolution at a general meeting, often with a notice period of 30-90 days. This is the standard pathway for changes driven by general dissatisfaction or strategic fit.

NCAT order in NSW

The October 2025 reforms gave NCAT power to vary or end a management agreement where the manager is found to be operating in conflict with the OC's interests, has breached fiduciary duties, or has otherwise conducted themselves in a manner that warrants termination. This is the appropriate pathway where the manager is resisting change, where there is documented misconduct, or where the OC's standard contractual options are inadequate.

Mutual termination

Where both parties agree, they can terminate the agreement by mutual consent. A manager facing likely non-renewal may prefer to negotiate an amicable departure rather than contest the termination.

The right path depends on the circumstances. For most changes, expiry or a special resolution is enough. Where misconduct is involved, an NCAT application may be appropriate.

The process

These steps are in the order most committees should follow. Changing managers requires the same discipline as the rest of strata committee governance.

Step one: build the case

Document the reasons for change. Collect service failure logs, fee comparisons, conflict-of-interest evidence and missed deadlines. Put the case to the committee in writing. A recommendation to the OC should rest on substantive grounds.

Step two: review the existing contract

Identify the term, the renewal date, the notice requirement, the termination provisions, and any handover obligations. Understand exactly what the OC can and cannot do under the contract.

Step three: source replacement candidates

Issue a tender or expression-of-interest process to several qualified strata management firms. Give each the same information: the number of lots, building age and type, current fee, required services, and particular issues. Ask for a written proposal covering services, fees, the transition plan, and common building issues.

Step four: evaluate proposals

Review each proposal against clear criteria: service quality, fees, transition capability, and references from comparable buildings. Visit the candidates' offices where possible and speak to references at buildings they manage. Do not rush the evaluation.

Step five: convene the general meeting

A change of strata manager requires a special resolution at a general meeting, or a committee resolution for less significant changes if the contract allows it. Issue the notice within the required period, typically 14 to 21 days. State the proposed motion clearly and make the agenda and supporting papers available.

Step six: conduct the meeting

Present the case for change. Allow questions. Hold the vote. If the resolution passes, formally notify the existing manager.

Step seven: handover

This is where most transitions go wrong. The outgoing manager must hand over records, including financial records, by-laws, correspondence, contracts and building plans. Funds, keys and access devices, contractor relationships, active complaints, repairs and owner inquiries also need to transfer. The committee should document, schedule and supervise the handover.

Step eight: post-transition review

Three months after the new manager starts, review the transition. Check that all records transferred, that nothing was lost or delayed, and that the new manager is delivering what they proposed. Fix remaining problems before they grow.

1. 01
   Document grounds for change
2. 02
   Review existing agreement
3. 03
   Source replacement candidates
4. 04
   Special resolution at general meeting
5. 05
   Records and funds handover
6. 06
   Three-month transition review

Common pitfalls

Manager transitions tend to run into the same problems.

Lost records. An outgoing manager may be uncooperative about historical records needed for long-running matters. The contract usually requires a complete handover. Ask for an itemised records list when notice is given, rather than waiting until the relationship has ended.

Contested invoices. The outgoing manager often presents final invoices for fees, expenses, or services performed in the final months. Some of these invoices are legitimate; some are inflated or duplicate charges already paid. The committee should review final invoices carefully against the contract and the records.

Contractor confusion. The building's plumbers, electricians, fire safety consultants, gardeners and cleaners have relationships with the outgoing manager. The building may retain them or use the incoming manager's preferred contractors. Either can work. What causes problems is leaving contractors unsure whom to invoice and report to.

Owner communication. Tell owners about the change early. A letter from the committee should explain the reason, timing, new contact details and practical effect on levies, insurance and by-laws. It will prevent many complaints.

Insurance and statutory obligations. Strata insurance, building insurance, work health and safety obligations and fire safety statements all have continuing obligations that must be transferred clearly. The committee should confirm with the new manager that each obligation is being managed.

Committee splits. A manager change can split the committee, with some members supporting the existing manager and the majority supporting a change. The OC's resolution at a general meeting is the authority. Committee members should respect the outcome despite their own preference.

When the outgoing manager makes it difficult

Most managers handle transitions professionally. Some do not.

The patterns of difficulty include refusing to provide records on request, claiming additional fees for handover work, retaining funds in trust accounts without a clear basis, communicating directly with owners to undermine the change, and (in extreme cases) using their access to building systems to make the transition harder.

The legal options available to the OC depend on the conduct.

For a refusal to hand over records, the contract will usually require the manager to provide all building records. Start with a formal demand and escalate to legal correspondence if necessary. NSW Fair Trading's October 2025 enforcement powers extend to records-related matters.

For contested final invoices, the OC's position is to pay only what is documented and contractually owed. Disputed amounts can be escalated to mediation or, if necessary, the Tribunal.

For trust account issues, every state's regulator (Fair Trading in NSW, Consumer Affairs in Victoria, the Office of Fair Trading in Queensland) has jurisdiction over strata manager trust accounts and can investigate where funds are not being remitted to the new manager appropriately.

If the outgoing manager communicates with owners in a way that undermines the change, the OC should state the decision clearly and address the concerns raised.

For extreme cases (abusive conduct, theft, sabotage) the OC's options extend to police complaints, professional misconduct complaints to the relevant industry body (SCA NSW or equivalent), and civil proceedings.

The state-by-state picture

Jurisdiction	Termination Framework	Tribunal Power	Enforcement
NSW	SSMA + contract; expanded NCAT powers from Oct 2025	NCAT: vary or end agreement	NSW Fair Trading + NCAT
VIC	OC Act + contract	VCAT	Consumer Affairs Victoria
QLD	BCCM Act + contract	BCCM Commissioner / QCAT	BCCM
WA	Strata Titles Act 1985 + contract	SAT	Building Commission
SA	Strata/community titles framework + contract	SACAT or court pathway	State consumer and legal guidance
ACT	Unit titles framework + contract	ACAT	Access Canberra
NT	Unit titles framework + contract	Local tribunal or court pathway	NT land titles / state regulator
TAS	Strata titles framework + contract	Local tribunal or court pathway	Recorder of Titles / state regulator

How this looks in UnitBuddy

UnitBuddy's manager transition module captures the records, contracts, contractor relationships and ongoing matters that need to transfer at handover. It provides a handover protocol for outgoing and incoming managers. The system keeps a time-stamped record of the building's affairs through the transition, so historical context, decisions, complaints and repairs stay available.

For committees considering a change, the platform's audit and benchmarking features provide evidence for the case to the OC: fee comparisons, service responsiveness metrics and complaint patterns.

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Changing strata managers should be based on evidence, a clear process and a documented handover. Without those, a committee can damage years of operational continuity in a single quarter.

Further reading

• ACT: How to change strata managers in the ACT: voting requirements, notice periods and key steps, via LookUpStrata
• QLD: Key questions when looking for a new strata manager, via LookUpStrata

Keep the scheme file in one place the committee and the manager can both open. Features, pricing, or book a tour.