To change strata managers in NSW, gather owner support, check your agency agreement term, then pass a meeting resolution to terminate and appoint a new agent.
Plenty of owners corporations stay with a poor agent simply because they think the process to change strata managers is harder than it really is. It is not, as long as you follow the right order and read your agreement first.
This guide walks through the whole switch for a NSW scheme, from spotting the warning signs to the handover. We manage strata across the Port Macquarie and Newcastle regions, so this is the same process we run for new schemes coming across to us.
What does a strata managing agent actually do?
A strata managing agent works for the owners corporation, not for any single owner or the developer. They handle the admin and money side of the scheme so the committee does not have to do it all by hand. That covers levies, insurance, the strata roll, meeting paperwork, repairs and keeping the scheme compliant.
In NSW the agent is appointed under the Strata Schemes Management Act 2015 and licensed under the Property and Stock Agents Act 2002. The owners corporation delegates specific functions to them by resolution at a general meeting.
A good agent earns their fee by saving the committee time and keeping things running quietly in the background.
- Collecting levies and managing the administrative and capital works funds
- Arranging building insurance and handling claims
- Maintaining the strata roll and keeping records
- Preparing and running general meetings and committee meetings
- Organising repairs and maintenance the committee approves
How do I know it is time to change strata managers?
The clearest sign it is time to change strata managers is a pattern, not a single bad day. One slow reply is nothing. Weeks of chasing the same answer, levies climbing while service drops, and repairs that never seem to get booked is a pattern. Trust your committee’s gut here, because most owners sense the relationship has gone stale well before they act on it.
It helps to separate a manager having a busy month from one who is genuinely underperforming. The table below sorts the two so your committee can have an honest conversation.
| Signs it is time to switch | Signs your manager is doing well |
|---|---|
| Waiting days for replies or hearing nothing back | Emails and calls answered within a clear timeframe |
| No clear picture of the scheme’s finances | Plain financial reports you can actually read |
| Repairs slipping or forgotten | Maintenance tracked and followed through |
| Levies rising while service does not | Fees explained and matched to the work done |
Can I switch in the middle of the agreement term?
You can, but the agency agreement decides what it costs you. In NSW the agreement runs for a fixed term of up to three years, with set notice periods and termination conditions written into it. Moving mid-term without proper grounds can leave the scheme liable for remaining fees, so this is the first thing to check before anyone gets excited about switching.
Read the termination clause closely, or have someone read it for you. Some agreements allow an exit with notice, some only at the end of the term, and some carry a payout if you leave early.
- The end date of the current term
- The notice period required to terminate
- Any early termination fee or payout clause
- Whether termination needs a general meeting resolution
If the term is almost up, the cleanest move is often to let it lapse and not renew, rather than fight an early exit. Timing the switch to the term saves money and argument.
What is the step-by-step process to change strata managers?
Changing managers is a sequence of steps in a set order, and skipping one is where schemes come unstuck. You build owner support first, confirm what your agreement allows, compare new agents, then make the change formal at a general meeting. Only after the resolution passes do you give notice and start the handover. Follow it in order and the whole thing is straightforward, even for a self-managed committee doing it for the first time.
- Raise your concerns with the other owners and gauge how much support there is for a change
- Review the agency agreement for its term, notice period and termination conditions
- Shortlist and meet new agents, then compare their proposals and fees side by side
- Put the change to a general meeting and pass a resolution to terminate the old agent and appoint the new one
- Give the outgoing agent written notice in line with the agreement
- Oversee the handover of records, funds, the strata roll and the common seal
The order matters because the resolution in step four is what gives the change legal weight. Notice and handover only happen once the owners have formally voted.
How do I compare new strata managers properly?
The best way to compare agents is to put them on the same questions and look past the headline fee. A cheap quote that excludes half the work is not cheap once the disbursements and per-item charges land. Ask each agent to break down what is included in the management fee and what gets billed on top. Then weigh that against how they communicate, how big their portfolio is per manager, and whether they actually know schemes like yours.
Fees vary by the size and complexity of the scheme, so expect a range rather than one figure. As a rough guide, costs are typically quoted as a base management fee plus disbursements, and any number you are given should be confirmed in writing for your specific scheme.
- What is in the base fee versus charged separately
- How many schemes each manager handles
- Their response time commitment in writing
- Experience with schemes of your size and type
- How they handle after-hours emergencies
If you want a clear comparison without chasing quotes, you can request a proposal and see exactly what is included before you commit to anything.
What happens at the general meeting?
The general meeting is where the switch becomes official, so the wording on the agenda has to be right. The motion needs to both terminate the current agent and appoint the new one, usually as two clear resolutions. Owners vote, and if it passes, the owners corporation has the authority to act on the change. Get the notice and the motions correct, because a sloppy agenda can hand your outgoing agent a reason to dispute the result.
The meeting can be an annual general meeting or a general meeting called for the purpose. Either way, the meeting notice must go out with the correct period and include the motions and the proposed new agreement.
- Issue the meeting notice with the required notice period
- Include the motion to terminate and the motion to appoint
- Attach the proposed new agency agreement for owners to read
- Record the vote and resolutions in the minutes
Our state’s strata legislation sets the notice rules, so check the current requirements before the notice goes out.
How does the handover from the old agent work?
The handover is where the new agent earns their first bit of trust, and a clean one matters more than people expect. The outgoing agent must hand over the scheme’s records, funds, the strata roll and the common seal within the period set by the agreement and the law. A good incoming agent drives this so the committee is not stuck chasing the old one. Done well, owners barely notice the change beyond a new contact name on their levy notices.
Things can stall if the old agent is slow or unhappy about losing the scheme. That is normal, and it is usually sorted with firm written follow-up referencing the agreement.
- The strata roll and all owner and lot records
- Administrative and capital works fund balances
- Insurance policies, certificates and claim history
- The common seal, keys and access details
- Contracts, warranties and maintenance records
Keep a written record of every handover item received and the date. If anything is missing, you have a clear list to chase rather than a vague sense something is off.
Should we manage the switch ourselves or get help?
A capable committee can run the switch alone, but most prefer not to once they see the paperwork. The agreement review, the meeting notices, the resolutions and the handover all have to line up, and a single misstep can drag the process out. This is the part where an incoming agent who does it regularly saves real time. At Coastal Realty & Strata we handle the switch end to end, from reviewing your current agreement to driving the handover.
The honest answer depends on your committee’s appetite for admin. If you have the time and a good reader of contracts, do it yourselves. If not, lean on the agent you are moving to.
- Do it yourselves if you have a confident committee and time to manage the paperwork
- Get help if the agreement is complex or the committee is stretched
- Get help if your current agent is likely to make the exit difficult
Changing strata managers comes down to order and paperwork, not luck. Build support, check the term, compare agents properly, vote it through, then run a clean handover. If your committee is weighing up a move across the Mid North Coast or Hunter, the team at Coastal Realty & Strata can talk you through how it would work for your scheme. Request a proposal and a short chat will make the whole decision a lot clearer.
