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How to Change Your Body Corporate Manager: A Step-by-Step Guide

Home ยป How to Change Your Body Corporate Manager: A Step-by-Step Guide

How to Change Your Body Corporate Manager: A Step-by-Step Guide

Written by: Michael Lee | Consumer Research, Brighton Savoy

How to Change Your Body Corporate Manager: A Step-by-Step Guide

If you own an apartment or townhouse, you already know the impact a body corporate (strata) manager has on daily life. From collecting levies to arranging repairs, their role touches nearly every part of your community. A good manager ensures compliance with the law, keeps finances transparent, and works hand-in-hand with the committee to maintain property value.

But what if your manager is unresponsive, disorganised, or failing to meet the communityโ€™s needs? The answer may be to change managers. While this can feel daunting, the process is clear if you follow the right steps.

Step 1: Review Your Current Contract Thoroughly

Every change starts with the paperwork. Before making any moves, gather your current management agreement and review it carefully.

  • Length of contract: Many agreements are for 1โ€“3 years. If yours is close to expiry, itโ€™s usually easiest to wait and make the change at renewal.

  • Termination rights: Look for โ€œwithout causeโ€ or โ€œfor breachโ€ clauses. If your manager has consistently failed to deliver, you may have grounds to end the contract earlier.

  • Notice period: Most require 30โ€“90 daysโ€™ written notice. Ending too early could leave your body corporate in breach.

๐Ÿ“Œ Pro tip: Ask your committeeโ€™s lawyer or an independent strata consultant to review the agreement. Theyโ€™ll help you avoid traps like โ€œautomatic renewalโ€ clauses, which can lock you into another term if you miss a deadline.

Step 2: Understand the Legal Framework

Body corporate and strata laws differ from state to state, but one rule is consistent: the decision to appoint or remove a manager belongs to the owners, not just the committee.

  • In Victoria, this falls under the Owners Corporations Act 2006.

  • In NSW, itโ€™s covered by the Strata Schemes Management Act 2015.

  • In Queensland, itโ€™s the Body Corporate and Community Management Act 1997.

Each requires a properly convened general meeting (sometimes a special resolution) where owners vote on the motions to terminate the current manager and appoint a new one.

๐Ÿ“Œ Pro tip: Check quorum requirements. If you donโ€™t meet quorum, the vote may not be valid.

Step 3: Build Support Among Owners

Even if the committee is unanimous, change wonโ€™t happen without owner backing. Some residents may resist due to fear of disruption or loyalty to the current manager.

Hereโ€™s how to build consensus:

  • Communicate early: Send owners a summary of issues (e.g., delayed maintenance, lack of transparency, rising costs).

  • Focus on benefits: Show how a new manager could improve service, reduce levies, or increase property value.

  • Be transparent: Share proposals openly so owners feel included, not blindsided.

๐Ÿ“Œ Example: One Melbourne complex reduced annual insurance premiums by 25% after switching to a manager who actively negotiated with insurers โ€” a concrete win owners could see on their levies.

Step 4: Research and Compare New Managers

This is the most important step โ€” choose carefully, because the wrong replacement wonโ€™t solve your problems.

What to look for:

  • Core essentials: Proven knowledge of legislation, professional indemnity insurance, transparent fee structure, and strong references.

  • Proactive service: Do they provide maintenance planning, energy audits, or help with long-term capital works funding?

  • Technology: Online portals, mobile apps, or 24/7 access to financials are now standard for quality firms.

  • Communication: How quickly do they respond? Ask current clients.

What to avoid:

  • Hidden commissions from contractors or insurers.

  • Generic proposals with no property-specific detail.

  • Staff turnover so high you never deal with the same person twice.

๐Ÿ“Œ Pro tip: Prepare a comparison matrix. Score each firm on service, communication, cost, and technology. This gives you evidence when presenting to owners.

Step 5: Call and Run a General Meeting

Once the committee has shortlisted a new manager, draft motions for a general meeting:

  1. Motion to terminate the current manager.

  2. Motion to appoint the new manager.

Give proper notice (usually 14โ€“21 days depending on your state) and circulate proposals so owners can make informed decisions.

If the resolution passes, document it clearly in the minutes and notify both managers in writing.

Step 6: Plan a Smooth Handover

The handover is critical. Mismanaged transitions can leave your building without insurance certificates, incomplete financials, or unresolved contractor agreements.

Your new manager should:

  • Obtain all financial records, invoices, and bank account details.

  • Collect building keys, access cards, and security codes.

  • Take over ongoing contracts (cleaners, gardeners, service providers).

  • Prepare an opening balance sheet to confirm finances are correct.

๐Ÿ“Œ Pro tip: Set a clear transition timeline (e.g., 30 days). The outgoing manager is legally required to cooperate, but having deadlines avoids drawn-out disputes.

Step 7: Monitor and Hold the New Manager Accountable

A new manager is not a magic fix unless expectations are clear. After the appointment:

  • Set key performance indicators (KPIs) for response times, financial reporting, and meeting support.

  • Hold quarterly reviews with the committee.

  • Gather owner feedback at 6 and 12 months.

๐Ÿ“Œ Pro tip: Consider a shorter initial contract (12 months). This keeps your new manager motivated to perform well and win renewal.

Final Thoughts

Changing your body corporate manager may seem like a hassle, but the payoff can be huge: smoother operations, better communication, reduced costs, and happier residents. By reviewing your contract, understanding the legal framework, engaging owners, and carefully vetting new managers, your community can make the transition with confidence.

Remember: the manager works for the owners, not the other way around. If they arenโ€™t delivering value, itโ€™s within your rights to find one who will.

Frequently Asked Questions

1. Can a body corporate committee remove a manager without a vote?
No. Owners must vote at a general or special meeting. The committee alone cannot terminate a manager.

2. How much notice is required to terminate a contract?
Usually 1โ€“3 months, but check your agreement. If the contract has expired, you can usually move at the next meeting.

3. What happens if the manager refuses to hand over records?
They are legally required to hand over all documents. If they refuse, the body corporate can escalate to the relevant state tribunal.

4. How should we evaluate new managers?
Request detailed proposals, compare fees and services side by side, and speak directly to existing clients.

5. Can switching managers save us money?
Yes. Many buildings find cost savings in insurance premiums, contractor agreements, and reduced inefficiencies once they move to a proactive manager.

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    Brighton Savoy is an independent Australian publishing and information platform covering weddings, hospitality, travel and consumer topics. Drawing on more than five decades of experience operating the former Brighton Savoy hotel and wedding venue in Melbourne, we combine first-hand industry knowledge with current research to create practical guides for Australian consumers.

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