Frequently Asked Questions About Strata Management in NSW

What is strata management in NSW, and why is it important?

Strata management in NSW refers to the administration and oversight of strata-titled properties on behalf of the Owners Corporation. It’s important because strata schemes must comply with legal, financial, and maintenance obligations set out under the Strata Schemes Management Act 2015.

What are strata management services in NSW?

Strata management services in NSW include financial administration, levy management, meeting coordination, record-keeping, insurance oversight, contractor engagement, and compliance support.

What is a strata company and what do they do?

A strata company is a professional service provider appointed by an Owners Corporation to manage the administrative and regulatory functions of a strata scheme. They act as agents, carrying out duties in accordance with the management agreement and NSW legislation.

How does strata management work in NSW?

In NSW, strata management works by assigning certain responsibilities from the Owners Corporation to a licensed strata manager through a formal agreement. The strata manager administer day-to-day operations while major decisions remain with the Owners Corporation, as required under the Strata Schemes Management Act 2015.

Why do strata schemes need a strata manager in NSW?

Compliance, financial reporting, maintenance coordination, and legislative obligations are complex processes. A strata manager helps the scheme operate lawfully, addresses issues promptly, maintains records properly, and supports the Owners Corporation in meeting its responsibilities.

Is strata management mandatory in NSW?

Strata management is not legally mandatory in NSW. However, most strata schemes appoint a strata manager because of the administrative and compliance demands placed on Owners Corporations. Professional support is highly practical in most cases.

For a more detailed overview of how strata management works, see An Introduction Into Strata Management.

What does a strata manager do in NSW?

A strata manager in NSW takes care of the everyday operations of a strata scheme on behalf of the Owners Corporation. Their responsibilities include managing finances and levies, maintaining records, coordinating meetings, arranging insurance, engaging contractors, and supporting compliance with the Strata Schemes Management Act 2015.

What are the responsibilities of an Owners Corporation in NSW strata schemes?

The Owners Corporation maintains and repairs common property, sets budgets and levies, approves major works, holds meetings, and maintains compliance with NSW strata legislation. These obligations are established under the Strata Schemes Management Act 2015 and apply regardless of whether a strata manager is appointed.

What’s the difference between a strata manager and a building manager in NSW?

The strata manager manages governance, records, levies, and insurance, whereas the building manager oversees daily building operations such as site inspections, contractor supervision, and access control. Their roles are distinct but complementary within NSW strata management.

Who makes decisions in a strata scheme?

The Owners Corporation has decision-making authority. Major decisions that the Owners Corporation must vote on at a general meeting include budget approvals, levies, by-law changes, or significant works — all in accordance with NSW strata laws.

What is a strata levy, and what does it cover?

A strata levy is a financial contribution paid by lot owners to fund the operation and maintenance of a strata scheme. In NSW, levies typically cover common property repairs, building insurance, utilities for shared areas, strata management fees, and contributions to the administrative and capital works funds, as required under the Strata Schemes Management Act 2015.

How do strata committees decide on levy amounts?

Strata committees review budgets prepared for the Owners Corporation, taking into account expected maintenance costs, insurance premiums, management fees and future capital works. Levy amounts must be approved by the Owners Corporation at a general meeting and are calculated based on each lot’s unit entitlement.

Why are strata levies important for property owners?

Strata levies ensure that the Owners Corporation has sufficient funds to maintain the building, meet legal obligations and plan for long-term repairs. Without adequate levy contributions, schemes may face deferred maintenance, compliance risks or the need for special levies.

Why do strata levies increase over time?

Strata levies may increase due to rising insurance premiums, higher maintenance costs, ageing building infrastructure or the need to build sufficient reserves in the capital works fund. Changes in legislative compliance requirements can also affect levy levels over time.

Who is responsible for collecting and managing strata levies?

The Owners Corporation is legally responsible for levies, but collection and administration are usually handled by the strata manager. This includes issuing levy notices, recording payments and managing trust accounts in accordance with NSW strata regulations.

How are strata payments scheduled?

Strata payments are typically scheduled quarterly, although some schemes may use different intervals depending on their financial structure. Payment schedules are approved by the Owners Corporation and outlined in levy notices issued to lot owners.

What happens if strata payments are not made?

If strata payments are not made by the due date, the Owners Corporation may charge interest on overdue amounts, as permitted under the Strata Schemes Management Act 2015. Continued non-payment can lead to the issuance of formal notices and legal proceedings.

Are strata levies tax-deductible in NSW?

For owner-occupiers, strata levies are generally not tax-deductible. Deductibility depends on the specific purpose of the levy. If your lot produces income (e.g. a rental unit), it can be tax-deductible.

Who pays for common property repairs in NSW strata?

In NSW, common property repairs are paid for by the Owners Corporation using funds collected through strata levies. This obligation is set out under Section 106 of the Strata Schemes Management Act 2015.

Who is responsible for repairs and maintenance in a NSW strata scheme?

Responsibility depends on whether the issue affects common property or an individual lot. The Owners Corporation is responsible for common property repairs. Lot owners are responsible for repairs inside their own lot, unless the strata plan states otherwise.

Who is responsible for roof repairs in strata buildings?

In most NSW strata schemes, the Owners Corporation is responsible for roof repairs, including tiles, membranes, guttering and flashing. Roofs are generally classified as common property unless a registered by-law specifically transfers responsibility to a lot owner.

What happens if strata delays essential repairs?

If the Owners Corporation fails to carry out essential repairs, it may be in breach of Section 106 of the Strata Schemes Management Act 2015. Lot owners may have the right to seek orders through NSW Fair Trading or the NSW Civil and Administrative Tribunal (NCAT), and in some cases may pursue compensation if loss or damage occurs due to the delay.

What is strata insurance in NSW?

Strata insurance in NSW is a compulsory insurance policy held by the Owners Corporation to cover the building and common property of a strata scheme. This is a requirement under the Strata Schemes Management Act 2015. Buildings must be insured for full replacement value.

What does strata insurance cover?

Strata insurance typically covers the building structure and common property, including external walls, roofs, floors, ceilings, lifts, shared plumbing and electrical services, and common areas.

What is not covered by strata insurance?

Strata insurance generally does not cover personal contents inside individual lots. It also does not cover damage caused by a lot owner’s negligence or unauthorised alterations. Coverage details vary by policy, so owners should review exclusions carefully.

Do lot owners need home insurance if strata insurance exists?

Yes. Even where strata insurance is in place, lot owners should hold their own home or contents insurance. This covers personal belongings, internal fixtures not included in the strata policy, and personal liability within the lot.

Who pays for strata insurance premiums?

Strata insurance premiums are paid by the Owners Corporation and funded through strata levies. Each lot owner contributes to the premium according to their unit entitlement, as part of the scheme’s approved budget.

What are the common causes of disputes in NSW strata schemes?

Common strata disputes in NSW often relate to repairs and maintenance responsibilities, noise and by-law breaches, levy contributions, use of common property, renovations, and communication issues between lot owners, committees and strata managers.

How can I resolve disputes with my strata manager or owners corporation in NSW?

The first step is to raise the issue in writing with the strata manager or strata committee. Outline the concern and the outcome sought clearly. Many disputes can be resolved through clarification, negotiation, or committee review. NSW Fair Trading recommends attempting internal resolution before taking further action.

What happens if disputes cannot be resolved internally?

If a dispute cannot be resolved within the scheme, parties may seek mediation through NSW Fair Trading, which offers a free strata mediation service. If mediation is unsuccessful, an application can be made to the NSW Civil and Administrative Tribunal (NCAT) for a formal determination. NCAT has the authority to make binding orders under the Strata Schemes Management Act 2015.

Where can I get legal advice on NSW strata matters?

Legal advice on NSW strata matters can be obtained from a solicitor experienced in strata law. General information and dispute pathways are also available through NSW Fair Trading and NCAT, which provide guidance on rights, responsibilities and dispute resolution processes under NSW strata legislation.

How do I choose a good strata manager in NSW?

A good strata manager in NSW should be properly licensed, experienced with NSW strata legislation, and transparent in their communication and reporting. Look for a manager who demonstrates strong compliance knowledge, clear financial processes, and a proactive approach to repairs and maintenance under the Strata Schemes Management Act 2015.

What should I look for in strata management companies in Sydney?

When comparing strata management companies in Sydney, check their experience with similar buildings, responsiveness, fee transparency, reporting standards, and familiarity with NSW compliance requirements. It’s also important to understand how the company manages contractors, disputes, and long-term maintenance planning.

Explore Strata United’s strata management services and learn more about our approach to professional management.

How do I change strata managers in NSW?

This is a process that typically requires reviewing the current management agreement, providing the required notice period, and passing a resolution at a general meeting to appoint a new manager. The process must follow the terms of the existing contract and comply with the Strata Schemes Management Act 2015.

Can a strata manager be terminated?

What happens during the transition to a new strata manager?

During a transition, the outgoing strata manager must hand over records, financial documents, contracts and keys to the new manager within the required timeframe. A structured handover helps ensure continuity of services, accurate records and minimal disruption to the scheme.

For guidance on appointing or changing a strata manager, contact us.

What legislation governs NSW strata management?

Strata management in NSW is primarily governed by the Strata Schemes Management Act 2015 and the Strata Schemes Management Regulation 2016. These laws outline the rights and responsibilities of Owners Corporations, strata committees, strata managers and lot owners. Additional legislation may apply to specific strata works, including building, safety and compliance requirements.

What is the Strata Schemes Management Act?

The Strata Schemes Management Act 2015 is the primary law regulating how strata schemes operate in NSW. It covers governance, meetings, levies, repairs and maintenance, by-laws, dispute resolution and the appointment of strata managers. The Act is administered by NSW Fair Trading, which provides guidance and enforcement support.

Where can I find the latest strata laws and regulations for NSW?

The most reliable source for up-to-date NSW strata laws and guidance is NSW Fair Trading. Information on legislation, regulations, dispute resolution and compliance updates can also be accessed via NSW Legislation and NSW Civil and Administrative Tribunal (NCAT) resources.