Self-managed strata vs a strata manager: costs, workload, risk and legal requirements

20 October 2026

Some owners corporations hire a professional strata manager, while others rely on volunteers on the committee to do the work themselves. This guide compares them on cost, workload, risk and legal requirements, focusing on New South Wales (NSW) and its Strata Schemes Management Act 2015, with a note on other states and territories.

Is a strata manager required in NSW?

No. According to the NSW Government, there is no legal requirement for a scheme to employ a professional strata manager. Most schemes have one because committee members are volunteers and a manager helps coordinate the scheme's affairs.

Whichever model a scheme chooses, the owners corporation (OC) keeps the same legal obligations, including finances, insurance, record keeping, repairing and maintaining common property, by-laws and meetings.

What a strata manager does

The owners corporation chooses which jobs to give a strata manager (also called a strata managing agent). It can delegate some or all of its functions, including all or some of the duties of the secretary, treasurer and chairperson (Appointing strata managers). Typical jobs include coordinating meetings, collecting and banking levies, obtaining insurance and keeping financial records.

Some decisions cannot be handed to a manager. A strata manager cannot change by-laws, remove a committee member, hire a building manager, set levy amounts, or decide on a payment plan or a request to waive interest.

In NSW, a strata manager needs a strata managing agent licence. Managers must record the jobs they do for the owners corporation and give those records to the owners corporation every six months (Who's who in strata).

Cost

The clearest difference is the management fee. A strata manager charges fees set out in the management agreement, and NSW guidance notes that contract terms can be negotiated even when they are described as standard. NSW Fair Trading recommends comparing at least three proposals and looking beyond price, at who will manage the scheme, how responsive they are, what the fees cover and what it costs to end the contract early. If fees are expected to be more than $30,000, the secretary must attach two independent draft management agreements to the agenda (Appointing strata managers).

Self-managed schemes avoid the management fee but not every cost. Some costs apply either way, such as the Strata Hub annual reporting fee of $3 per lot and building insurance, which is mandatory for most NSW schemes. Self-managed committees may also pay for help with specific jobs, such as a bookkeeper, auditor, lawyer or insurance broker. The real cost of self-management is often volunteer time.

Workload

The work does not disappear when there is no manager. It moves to the committee. The NSW list of jobs a strata manager must report on gives a sense of what is involved (Who's who in strata):

convening and conducting meetings, and giving notices and agendas
preparing and distributing minutes
arranging for owners to inspect strata records
sending levy notices
preparing section 184 strata information certificates, usually needed when a lot is sold
Strata Hub reporting
obtaining and renewing insurance, and making claims
accounting for money in the administrative fund and capital works fund
issuing notices to comply with by-laws

On top of this, NSW requires most records to be kept for seven years and, from 11 June 2024, kept electronically (Record keeping requirements). From 1 October 2026, committee members in most schemes must also complete annual training (Strata committee training).

Risk and accountability

In both models, the owners corporation remains responsible for meeting its legal obligations.

With a manager, some risk is shared. Strata managers can face penalties for failing to do work the owners corporation delegated to them, although the penalty may fall on the owners corporation if it caused the failure and the manager took all reasonable steps (Who's who in strata). Managers must also disclose commissions and training services, and get the owners corporation's approval for any not covered by the management agreement (Guide to strata law changes).

Without a manager, the committee carries the work directly, so gaps in knowledge or time matter more. If an owners corporation is not doing its work properly, for example not keeping proper financial records, the NSW Civil and Administrative Tribunal (NCAT) can appoint a compulsory strata manager (Appointing strata managers).

Legal requirements when appointing a manager in NSW

According to NSW Fair Trading guidance:

a strata manager is usually appointed by majority vote at an AGM (annual general meeting), or at a general meeting if owners cannot wait
the secretary must attach the preferred draft management agreement to the AGM agenda
an appointment made at the first AGM can only be for 12 months, and later agreements can run for up to three years
the manager must give notice of expiry between three and six months before the agreement ends
the owners corporation can remove a manager by not reappointing them, by voting at a general meeting according to the contract's terms, or by applying to NCAT

Strata Hub also has a free Strata manager finder that shows each manager's licence status and any compliance records.

When each model may fit

Neither model suits every scheme. A self-managed approach may fit when:

the scheme is small and decisions are simple
several owners have the time and skills for administration, finances and record keeping
owners want direct control and visibility of decisions and spending

A strata manager may fit when:

the scheme is large or complex, with significant works, disputes or many contracts
few owners are able or willing to serve on the committee
the committee wants professional support with finances, insurance and compliance

Some schemes take a middle path, keeping certain jobs in the committee and delegating others.

Other states and territories

Victoria: Tier 1 owners corporations (more than 100 occupiable lots) must appoint a manager unless they opt out by special resolution. Other tiers can choose (Consumer Affairs Victoria). A person paid to manage an owners corporation must be registered with the Business Licensing Authority (Consumer Affairs Victoria).
Queensland: body corporate managers do not currently need a licence. A manager is engaged by ordinary resolution at a general meeting, for no longer than three years (Queensland Government).
Western Australia: strata managers are not licensed, but must meet educational qualification, criminal record check and professional indemnity insurance requirements (Landgate).
South Australia: appointing a strata manager does not change the strata corporation's legal responsibilities. It must still have a presiding officer, secretary and treasurer (Law Handbook).
Tasmania: a manager only has the powers the body corporate gives it, which should be set out in a written agreement (Department of Natural Resources and Environment Tasmania).
Australian Capital Territory: an owners corporation managing agent may be a licensed real estate agent, a conditional licence holder, a member of the owners corporation, or a person who does not manage another owners corporation and does not earn their primary income from the role (Access Canberra).
Northern Territory: a paid body corporate manager must hold a licence under the Agents Licensing Act 1979 (NT Government).

Frequently asked questions

Can a NSW strata scheme manage itself?

Yes. There is no legal requirement in NSW to employ a strata manager.

How long can a NSW strata management agreement last?

An appointment made at the first AGM can only last 12 months. After that, agreements can run for up to three years.

Can owners end a strata manager's contract early?

The contract sets out when and how it can be ended, and the owners corporation can vote at a general meeting or apply to NCAT.

Does self-management mean fewer legal obligations?

No. The owners corporation's obligations stay the same. Only who does the work changes.

Seeing the whole picture

Whether a scheme self-manages or works with a manager, owners benefit from being able to see what is going on. StrataSync is a mobile-first app for strata schemes across Australia that keeps records, documents, meetings and repairs in one place that owners can see, and works alongside NSW Strata Hub. To find out more, visit stratasync.au.

General information, not legal advice. Check the official sources below or get professional advice for your scheme.

Sources

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