In many strata communities, caretaking agreements are central to the day-to-day maintenance and functioning of the property. These agreements set out the roles and responsibilities of caretakers or building managers and have significant operational and financial implications for lot owners and committees. Understanding what these agreements involve is essential for making informed decisions about how your community is managed. 

What is a Caretaking Agreement? 

A caretaking agreement is a contract between a strata scheme (or owners corporation/body corporate, depending on jurisdiction) and a service provider—commonly referred to as a caretaker or building manager. This agreement typically outlines the caretaker’s duties, which may include: 

• Maintaining common property (e.g. gardens, hallways, lifts) 

• Managing repairs and reporting issues 

• Supervising contractors and service providers 

• Ensuring general cleanliness of shared spaces 

• In some cases, providing letting services for owners who lease their lots 

Caretaking agreements are often long-term arrangements and may operate alongside separate letting agreements. 

Agreement Terms and Renewals 

One key consideration with caretaking agreements is the length of the contract. Some agreements may include options for renewal, leading to extended periods under the same arrangement. Caretakers may also request extensions or variations to existing agreements over time. 

Any changes to the length or terms of the agreement usually require approval by the owners at a general meeting. It is essential for committees to carefully consider the value, performance, and ongoing need for the arrangement before approving such requests. 

Duties and Responsibilities 

The scope of a caretaker’s responsibilities is detailed in the agreement itself. Common duties may include: 

• Cleaning and maintenance of common areas 

• Minor repairs and general upkeep 

• Overseeing access and deliveries 

• Managing waste disposal or shared facilities 

• Reporting larger maintenance issues to the committee or manager 

It is important to note that caretakers are only responsible for the tasks outlined in their agreement. Owners should not assume broader duties unless specified in writing. 

Common Challenges and Disputes 

Disputes may arise if there are differing views on: 

• The quality or frequency of maintenance work 

• The interpretation of duties 

• Requests for fee increases or contract extensions 

• Conflicts of interest involving letting or leasing arrangements 

Caretaking agreements often include dispute resolution procedures. If not, relevant state or territory legislation may provide mechanisms for resolving disagreements. 

Final Thoughts 

Caretaking agreements can provide vital support to the management and upkeep of a strata property, but they require careful consideration. By understanding the obligations, reviewing performance regularly, and seeking expert advice when needed, committees and owners can help ensure their scheme is well-maintained and appropriately managed.