Resources for strata managers

Strata managers can be paid (a professional) or can volunteer. Either way, strata managers must act in the best interests of the strata titles scheme and operate within a legislated framework of responsibilities.

Strata managers

A strata manager is engaged by the strata company under a strata management contract to take on specified duties and powers of the strata company for a fee.

There are legal requirements to be met by professional strata managers, such as holding the relevant educational qualifications and criminal record checks. They must also provide a periodic return to Landgate with general information about the schemes they manage.

Refer to Section 143 of the Strata Titles Act 1985 to review the authorised functions of a strata manager.

Volunteer strata managers

To be a volunteer strata manager, the person must be an owner of a lot in the scheme and personally perform the strata manager functions at either no charge or for a small honorary fee. If they do charge, the honorary fee for their duties must not exceed $250 per calendar year for each lot in the scheme.

Volunteer strata managers must have a volunteer agreement (the volunteer equivalent of a strata management contract) with the strata company to take on specified duties and powers of the strata company. They must also provide the strata company a national criminal record check every 3 years. However, they are exempt from many of the statutory requirements of strata managers such as the educational qualifications and periodic returns.

For more information:

• Contact our Strata Enquiry Line by calling (08) 9273 7047.

Strata managers need to be authorised by a strata company to perform a specific scheme function or functions.

In addition to this authorisation, a strata manager must also have a strata management contract with a strata company before they can perform a scheme function.

Both the authorisation and the strata management contract must be in place before a strata manager can perform a scheme function on behalf of the strata company.

For more information:

• Contact our Strata Enquiry Line by calling (08) 9273 7047.

When employing strata managers, strata companies should make sure they have a written contract with the strata manager.

This contract should contain details including:

• The strata manager’s and strata company’s name and address for service.
• The Australian Company Number or Australian Business Number of each party with such a number.
• The start and end date of the strata manager’s contract.
• Duties and tasks (scheme functions) the strata manager is to perform and any conditions that are to apply to the performance of those functions.
• Basis of payment of the strata manager.
• Details of which account the strata manager will operate for the money received on behalf of the strata company.
• Requirements for a strata manager to give written reports to the strata company about the functions performed.
• Grounds for which the contract may be terminated and processes to be followed under section 151 of the STA.
• Warranties that:
• The strata manager will obtain national criminal record checks when required and notify the strata company in writing as soon as practicable if the strata manager becomes aware of convictions for property and dishonesty offences.
• Relevant persons hold the prescribed education requirements.
• The strata manager holds and will hold for the duration of the strata management contract professional indemnity insurance at the prescribed level.

For more information:

• Contact our Strata Enquiry Line by calling (08) 9273 7047.

Strata managers must meet the criminal record check, educational qualification, and insurance requirements set out in the Strata Titles (General) Regulations 2019 (STGR).

Criminal record checks

Strata managers who are individuals must obtain a national criminal record check every three years. Strata managers who are a body corporate must obtain a national criminal record check for each director every three years.

Educational qualifications

The educational qualification requirements for strata managers vary depending on their role in the strata management business and whether they are a qualified person (that is already hold a relevant qualification).

Strata managers who are the principal of a business must obtain a Certificate IV in Strata Community Management (Certificate IV). If they are already a qualified person, they can obtain four of the specified units in the Certificate IV set out in the STGR.

Strata managers who are employed by a strata management business and authorised to carry out certain scheme functions, must obtain eight of the specified units in the Certificate IV set out in the STGR. If they are already a qualified person, they only need to obtain three of the specified units in the Certificate IV set out in the STGR.

Full details of the educational qualification requirements for strata managers can be found in Schedule 4 of the STGR.

Professional indemnity insurance

A strata manager must obtain and maintain professional indemnity insurance in relation to their performance of functions as a strata manager. This insurance must be of not less than $1,000,000 for any one claim.

Authorisations and strata management contracts

Before a person can act as a strata manager for a strata company and perform a specified scheme function, they must obtain an authorisation from the strata company and enter a strata management contract with that company.

These authorisation and contractual requirements are in addition to the criminal record check, educational qualification, and insurance requirements.

For more information:

• Strata Titles (General) Regulations 2019.
• Contact our Strata Enquiry Line by calling (08) 9273 7047.

When a strata management contract is due to end, the strata company may resolve not to extend the agreement. Strata companies need to be aware of any automatic rollover provisions and give appropriate notice to terminate if they do not wish the contract to be renewed.

The strata company may also choose to terminate the strata management contract while it is still in effect if there are proper grounds for termination by the strata company (section 151 of the Strata Titles Act 1983 (STA)).

Proper grounds include situations where the strata manager has breached the contract or one of their statutory duties imposed by the STA.

The STA outlines the steps the strata company is required to take to terminate the strata management contract.

Refer to the fact sheet below for a summary of those steps.

For more information:

• Strata Titles Act 1985 (refer to section 151).
• Contact our Strata Enquiry Line by calling (08) 9273 7047.