What a Strata Management Company Does

A strata management company—sometimes called a “body corporate manager” or “strata managing agent”—provides professional support to your body corporate. Their role is administrative, operational, and supportive, working under the direction of the body corporate committee, but they do not make decisions on behalf of the owners.

Typical responsibilities include:

• Administrative duties such as preparing and maintaining records, meeting minutes, and correspondence.
• Meeting coordination, including calling and facilitating Annual General Meetings (AGMs) or committee meetings.
• Financial management, covering tasks like general accounting, invoicing, issuing levy notices (on behalf of the body corporate), financial reporting, and arrears tracking.
• Contract and service coordination, arranging maintenance contracts and engaging tradespeople or service providers.
• Communication with lot owners, the committee, and external parties.
• Enforcing by-laws, issuing notices and orders, and carrying out general secretarial functions.

Strata management companies are indispensable for keeping a strata scheme running smoothly, but they do not operate as the decision-making body.

What They Do Not Do—and Who Actually Does

1. They do not set levy amounts or assign levies.

Levy amounts—sinking fund/capital works fund, or special levies—are determined and approved by the body corporate (all lot owners collectively) at a meeting, such as the AGM. The strata manager may assist with preparing budgets or advice, however has no authority to set or change levy amounts.

2. They are not the body corporate.

The body corporate is the legal entity made up of all lot owners. It manages the shared property, oversees finances, approves budgets and insurance, elects committees, and makes major decisions for the scheme. A strata manager is an external paid service provider, supporting the body corporate but not replacing it.

3. They cannot approve owner requests.

Requests for renovations, by-law changes, or other owner proposals must be approved by the body corporate or its duly elected committee—typically at a general meeting. The strata manager may facilitate or advise but has no power to grant approval.

4. Funds and levies go to the body corporate, not the manager.

Levy payments are made into the body corporate’s bank account, not to the strata management company. The manager handles invoicing and banking tasks but does not control or use the funds.

5. They do not bear legal responsibilities or liabilities.

While strata managers may provide compliance advice, responsibility for compliance items such as insurance, fire safety, WHS, asbestos reports, or legal disputes rests with the body corporate—not the strata manager.

Everyday Example to Illustrate

Imagine the body corporate is like the board of directors of an organisation—they decide on budget, share allocations, and major plans. The strata manager acts like the company secretary or operations manager—they handle bookkeeping, organise meetings, and execute decisions, but do not vote or make binding decisions.

For instance, if there’s a planned roof replacement requiring a special levy:

• The body corporate reviews the proposal, deliberates, and votes at a meeting.
• The strata manager can prepare the documentation, distribute the notice, collect funds once approved, and arrange vendors—but only after the decision is made.

Why This Clarification Matters

There are frequent misconceptions, such as owners assuming strata managers control levy decisions, or that funds go to the manager. In reality, such misunderstandings can lead to disputes, frustration, or even legal complications—especially around levy collection and arrears.

Need More Clarity or Assistance?

If you’d like to explore more about how your strata scheme operates, or how a strata management company and your body corporate can work together effectively, the SSKB team is here to help. Reach out today to learn more about roles, legislative requirements, and best practices that keep strata communities running smoothly.