How to Switch Strata Management Companies
Table of Contents
- Why You Might Need to Switch Strata Management Companies
- Review Your Current Strata Management Contract
- Prepare a Motion to Change Your Strata Manager
- Understanding the Owners Corporation Transition Process
- How to Switch Strata Management Companies: The Legal Steps
- Selecting and Appointing Your New Strata Manager
- Common Mistakes to Avoid During the Transition
- Frequently Asked Questions
Last Updated: September 28, 2026
Why You Might Need to Switch Strata Management Companies
Your strata manager handles everything from levy collection to maintenance coordination. When they fall short, the entire building suffers. Poor communication, missed deadlines, and lack of transparency create tension between committee members and residents alike.
Common reasons to switch include:
- Unresponsive management that ignores emails and calls for weeks
- Inadequate financial reporting and surprise levy increases
- Failure to address maintenance issues like water leaks or lift problems
- Lack of expertise in Victorian strata legislation compliance
- High turnover of staff managing your property
- Inability to handle complex disputes between residents
The decision to change isn’t taken lightly. It requires time, effort, and careful planning. But staying with an underperforming manager costs more in the long run through neglected maintenance, legal exposure, and resident dissatisfaction.
The transition process itself can be daunting, but understanding the legal steps makes it manageable. The transition process itself can be daunting, but understanding the legal steps makes it manageable.
Switching managers mid-year can disrupt levy cycles and financial records. Plan the transition during your annual general meeting or at a natural contract renewal point to minimise disruption.
Review Your Current Strata Management Contract
Before you move forward, read your contract carefully. The document outlines termination conditions, notice periods, and handover responsibilities.
Most contracts require 30 to 90 days’ written notice before termination. Some specify that notice must be given at a certain time of year. Others allow termination only at the end of a financial year. Missing these deadlines could lock you in for another full term.
Check these key sections:
- Notice period required: How much advance warning must you give?
- Termination date options: Can you exit anytime, or only at specific dates?
- Handover obligations: What must the current manager provide before leaving?
- Financial settlements: Are there outstanding invoices or disputes?
- Transition support: Does the contract require assistance during handover?
Many committees discover their contract is more restrictive than expected. If termination seems impossible under current terms, you may need to negotiate an early exit with your current manager or seek legal advice.
Request a copy of your contract from your current manager in writing. Keep all correspondence about the request. If they delay or refuse, document this, it may support your case for switching.
Prepare a Motion to Change Your Strata Manager
A formal motion is how your Owners Corporation officially decides to change managers. This motion must be passed at a general meeting or, in some cases, by a resolution in writing.
The motion should clearly state:
- The intention to terminate the current management contract
- The effective date of termination
- The process for appointing a new manager
- Any conditions or timelines for the transition
Before the meeting, prepare residents by sharing:
- A summary of performance issues (specific examples, not complaints)
- The termination notice period required by your contract
- The timeline for appointing a new manager
- Information about candidate managers you’re considering
The motion needs support from a majority of residents or committee members, depending on your strata scheme’s by-laws. Some schemes require a simple majority; others require a higher threshold. Check your by-laws or seek advice from your current manager about voting requirements.
Document every issue before the meeting. Take photos of unrepaired damage, keep emails showing lack of response, and record dates when problems occurred. This evidence strengthens the case for change.
Understanding the Owners Corporation Transition Process
The Owners Corporation transition process is governed by Victorian strata legislation. Once your motion passes, a formal handover must occur between the old and new manager.
The outgoing manager must provide:
- All financial records, including levy statements and bank reconciliations
- Maintenance logs and outstanding repair schedules
- Resident files and contact information
- Insurance policies and certificates
- Building plans and specifications
- Minutes from all previous meetings
- Details of any disputes or legal matters in progress
This handover typically takes 2 to 4 weeks. During this period, both managers may overlap to ensure continuity. The new manager reviews all documents, identifies outstanding issues, and prepares to take over.
According to the Victorian Legislation – Owners Corporations Act 2006, the Owners Corporation remains responsible for all obligations during the transition. This means levies must still be collected, emergencies must still be handled, and maintenance must continue without interruption.
Common transition problems include missing documents, incomplete financial records, and disputes over what should have been repaired. The new manager may discover issues the old one never reported. Plan for this by requesting a full property inspection before the new manager takes over.
How to Switch Strata Management Companies: The Legal Steps
Switching requires following a specific legal process under Victorian strata law. Rushing or skipping steps can create compliance issues and disputes.
Step 1: Give formal notice to your current manager
Send written notice stating the termination date. Use the notice period specified in your contract. Send it via email and registered mail so you have proof of delivery. Keep a copy for your records.
Step 2: Obtain all necessary information from the current manager
Request a complete handover package. This should include financial statements, maintenance records, insurance details, and all resident information. Set a deadline for delivery, typically 10 business days after termination.
Step 3: Identify and interview potential new managers
Research managers who work with schemes your size. Ask for references from existing clients. Discuss their approach to communication, financial reporting, and maintenance coordination. Get a proposal outlining their fees and services.
Step 4: Present options to residents
Hold a meeting or send written information about your top candidates. Let residents ask questions. Gather feedback before making a final decision.
Step 5: Appoint the new manager formally
Pass a resolution at a general meeting or by written ballot. The resolution should name the new manager and specify the appointment date. Ensure this date aligns with when the current manager’s contract ends.
Step 6: Coordinate the handover
The new manager contacts the old one to arrange document transfer. They review all records, identify outstanding issues, and prepare systems. This overlap period is crucial for continuity.
Step 7: Notify all residents of the change
Send written notice to all residents with the new manager’s contact details, effective date, and any changes to payment methods or procedures.
Selecting and Appointing Your New Strata Manager
Choosing the right manager is the most important part of this process. The wrong choice can create problems that take years to fix.
Evaluate candidates on these criteria:
- Communication: Do they respond quickly? Are they accessible by phone and email?
- Experience: How many schemes have they managed? What’s their track record with buildings similar to yours?
- Expertise: Do they understand Victorian strata legislation? Can they handle disputes and defect claims?
- Transparency: Do they provide clear, detailed financial reports? Are fees itemised?
- Technology: Do they offer online portals for residents to view levies and maintenance updates?
- References: Ask to speak with existing clients. What do they say about responsiveness and problem-solving?
Interview at least three candidates. Ask each the same questions so you can compare fairly. Request proposals that outline their approach to your specific building’s challenges.
Top Owners Corporation Solutions (TOCS) specialises in Owners Corporation transitions and understands the unique needs of Melbourne strata schemes. We provide transparent reporting, responsive communication, and expertise in managing both residential and commercial properties. Our team ensures handovers are smooth and all outstanding issues are identified and addressed.
When making your final decision, consider not just price but value. A slightly more expensive manager who responds quickly and maintains detailed records often saves money by preventing costly problems down the line.
Common Mistakes to Avoid During the Transition
Most transitions hit problems because committees skip steps or underestimate the complexity. Learn from others’ mistakes.
Mistake 1: Not reviewing the contract before giving notice
Some committees discover too late that their contract requires 90 days’ notice or only allows termination on specific dates. This delays the switch by months.
Mistake 2: Failing to document performance issues
Mistake 3: Choosing a manager based on price alone
Mistake 4: Not preparing residents for the change
Mistake 5: Skipping the property inspection
Mistake 6: Overlapping managers for too long
Do not terminate your current manager without a new one already appointed and ready to start. A gap in management creates serious compliance and operational risks.
Frequently Asked Questions
What is the process for terminating a strata management contract in Victoria?
Terminating your strata management contract requires providing written notice as specified in your management agreement, typically 30 to 90 days depending on contract terms. You must pass a special resolution at an Owners Corporation meeting with at least 75% of eligible voters in favour. Notify your current manager in writing and provide the required strata management contract termination notice period. Ensure all financial records and documentation are transferred to the incoming manager before the contract ends.
What are the signs of poor strata management performance I should watch for?
Poor strata management often includes slow response times to maintenance requests, inadequate financial reporting, missed compliance deadlines, and lack of communication with the committee. Signs of poor strata management performance also include unexpected levy increases without explanation, failure to enforce by-laws consistently, poor record-keeping, and difficulty accessing property documentation. If your manager is unresponsive to emails or calls, regularly misses meeting deadlines, or cannot explain financial decisions clearly, these are red flags warranting a change.
Do we need a special resolution to change strata managers?
Yes, under Victorian strata law, you must pass a special resolution to appoint or remove a strata manager. This requires at least 75% of eligible voters to support the motion at a general meeting. You’ll need to draft a motion to change strata manager that clearly states the reasons for change and the proposed alternative. The motion must be included in the meeting notice sent to all owners. Proper voting procedures and quorum requirements must be met for the resolution to be valid.
How long does the Owners Corporation transition process typically take?
The Owners Corporation transition process usually takes time from the special resolution vote to full handover. This includes the notice period specified in your current contract (typically 30-90 days), coordination between outgoing and incoming managers, transfer of financial records, and establishment of new systems. Complex properties with significant disputes or outstanding defects may take longer. Planning ahead and communicating clearly with both managers accelerates the transition and reduces disruption.