Question: Can our strata manager promote services to owners? Does this raise any conflicts of interest?
Our strata manager emailed owners about a new policy relating to airspace development. The email also appears to promote or recommend a specific airspace company.
Is it appropriate for a strata manager to send this type of promotional material to owners? Does it raise any conflict of interest or disclosure issues if the manager appears to be advertising or showing bias towards a specific provider?
Answer: Why certain communication was sent to lot owners should be a question raised with the strata committee.
The NSW Government has introduced a policy to increase medium-density/mid-rise housing across metropolitan Sydney, the Central Coast, Illawarra-Shoalhaven and Hunter regions. This policy aims to address housing affordability. This may include airspace development through strata (or even stratum) subdivision of existing residential flat buildings.
This policy does not compel owners corporations to engage in airspace development. It is government policy (the Strata Environmental Planning Policy) that such development may be preferred, and an indication that it’s more likely to receive development consent (it will still be considered on a case-by-case basis). The owners corporation may, at a general meeting, decide whether to apply for airspace development.
In respect of the strata manager, pursuant to section 53 of the Strata Schemes Management Act 2015 (NSW), the strata managing agent (strata manager) may be delegated functions of the owners corporation. This may include exercising functions on behalf of the strata committee and its officers: section 54. Unless the strata manager is a compulsory strata manager, pursuant to section 237, the delegated power is revocable. Accordingly, the strata manager should act on the instructions of the strata committee and its officers. Why certain communication was sent to lot owners should be a question raised with the strata committee.
Where the owners corporation is tendering for providers, the tender from those providers tends to paint the provider positively. Subject to the tender not being misleading or deceptive, there is no law, regulation, or code that prohibits a provider from preparing a favourable tender.
This post appears in the May 2026 edition of The NSW Strata Magazine.
Matthew Lo
Kerin Benson Lawyers
E: enquiries@kerinbensonlawyers.com.au
P: 02 8706 7060
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