A growing number of Australian unit owners are taking over the management of their strata buildings, frustrated by high costs, poor service, and a lack of transparency from professional strata managers. This grassroots movement is gaining traction as owners seek to reclaim control and reduce expenses.
Owners Take Matters Into Their Own Hands
Stephanie Convery, a journalist and owner-occupier in Melbourne, recounts her own experience with a leaking roof and a negligent strata manager. After years of dealing with a revolving door of managers who ignored maintenance issues, she and her neighbours decided to sack their property manager and self-manage their five-unit building. “This would be so much cheaper and more efficient if we just did it ourselves,” they concluded.
Convery found that the transition to self-management involved just 10 steps, and the savings were immediate. “We were able to cut back the levies immediately, many by hundreds of dollars, and what we outlaid on accounting software we made back by not having to pay commission on insurance.”
Industry Under Scrutiny
A Victorian government review of the Owners Corporations Act found “declining consumer confidence” and widespread concerns about governance, transparency, professional standards, and dispute resolution. Only 11% of survey respondents believed the laws ensured managers acted honestly. The review also noted “an absence of proactive compliance and enforcement” by Consumer Affairs Victoria and a lack of effective deterrence.
Adam Promnitz, founder of the Strata Owners Alliance, says many owners believe they need strata managers when they don't. “A lot of the managers, it’s almost like they think they’re the CEO of the building or the boss of the building, whereas they actually work for the owners.” His advocacy group, founded in 2019, aims to empower owners through knowledge sharing.
High Costs and Conflicts of Interest
Submissions to the review detailed numerous problems: managers receiving large commissions for securing building insurance, hidden financial relationships, unlawful fees, and withholding access to records. “Proxy-farming” – collecting absent owners’ proxy votes – was also cited as a tactic to influence meeting outcomes.
The industry’s main lobby group, the Strata Community Association (SCA), has advocated for mandatory professional management for schemes with more than 10 lots. However, only 1% of national schemes have over 100 lots, while 84% have 10 lots or fewer. About 40% of strata complexes are already self-managed, according to industry estimates.
Investor Owners vs. Owner-Occupiers
In some cases, the problem is other owners. Lauren*, a Sydney owner-occupier, discovered that all but three owners in her 30-unit building were investors who neglected maintenance. After a sudden levy increase for multimillion-dollar repairs, she forced the committee to resign and was elected herself. “If I don’t do it, the building will fall into the street,” she said. The experience took a huge toll, but she now has two-thirds of the building backing her.
The Victorian review found that despite an estimated 1.27 million Victorians living in strata-controlled properties, there is little recourse for wrongdoing. Cases take an average of 23 weeks to go through the tribunal, with only 54% successfully resolved.
Self-Management as a Viable Alternative
For Convery, self-management has been a positive experience. “Occasionally, I am struck by fear that I’ve overlooked something or made some huge mistake. But this is my home, and it’s my responsibility to do my best to look after it.”
Promnitz hopes the movement will grow. “Let’s just get owners together who can share tips, information, advice,” he said.
