NAT: Strata management. Is change a challenge or opportunity?

Last week’s LookUpStrata webinar examined how strata management is navigating a change in operating environment, from rising expectations on transparency and disclosure to pressure on fees, workload and talent retention. Do these changes present a challenge or an opportunity to the strata management industry? What will the fall out be for lot owners across the country? Led by Michael Teys, the session synthesised what’s changing, why it matters, and how owners, committees and managers can reset expectations to keep buildings safe, compliant and financially sound.

NAT: How strata managers are adapting to a new business environment | Michael Teys, Michael Teys Strata Advisory – September 2025

Context: Why change is occurring for strata management

The strata sector is absorbing multiple forces at once: sharper scrutiny on governance and conflicts, greater demand for timely and clear communication, and a community that increasingly lives online and expects professional, data-backed service. At the same time, schemes are contending with ageing assets and legacy defects, while committees and managers balance finite budgets against expanding responsibilities.

Attendees repeatedly returned to a simple truth: most stakeholders are acting in good faith, yet misaligned expectations and under-investment in management can erode trust. Several participants observed that the “bad news” tends to dominate public narratives, overshadowing the day-to-day professionalism across the sector. Re-centering on transparency and certainty was a consistent theme throughout the session.

What the webinar covered

Michael Teys’ presentation explored how strata managers are adapting to a rapidly changing environment. The discussion highlighted:

• New expectations of transparency in insurance, commissions, and contracts.
• Workforce pressures, including high staff turnover and burnout in management firms.
• The mismatch between fees and responsibilities, with managers asked to wear multiple hats without adequate resourcing.
• Technology and AI, with opportunities for efficiency but risks if used without oversight.
• Trust and respect, as the foundation for constructive relationships across managers, committees, and owners.

Takeaways for Strata Managers

• Be explicit about your scope of services and what sits outside the base agreement.
• Introduce service guarantees or turnaround benchmarks (e.g., 24–48 hours for responses).
• Use AI and other technology for efficiency, but ensure expert review on legislation and compliance.
• Protect your teams by ring-fencing portfolios, providing admin support, and enforcing respectful-behaviour rules.
• Don’t accept “bad-fit” clients: sustainable business means choosing schemes that align with your values and resources.

Takeaways for Committees and Owners

• Recognise that fees must match scope — under-investing in management is a false economy that puts your building at risk.
• Provide clear instructions and communication pathways. Avoid bombarding managers with texts, emails, and contradictory directions.
• Commit to training: better decisions come when committee members understand governance, procurement, and compliance.
• Treat your strata scheme as a workplace and a business. Respectful communication and professional conduct are non-negotiable.
• Build trust by supporting transparency and disclosure — committees should adopt open policies on commissions, contracts, and procurement.

What comes next when facing strata management change?

Committees

Define and publish the agreed scope; adopt a communication protocol; support reasonable fee adjustments; commit to training.

Strata Managers

Map your service matrix and turnaround targets; escalate complex work to paid projects; enforce respectful conduct rules.

Owners

Calibrate expectations to the agreed scope and budget; participate in training; value professionalism over “cheapest price”.

What we heard from the live chat

Live chat contributions offered a candid snapshot of pressures on the ground. Owners expressed concern about training for committees and managers, conflicts around commissions, and the mismatch between fee expectations and the true scope of work. Managers described burnout, staff turnover, and scope creep — being asked to act as building, property and project managers, often on sub-$2-per-lot-per-day fees.

Representative perspectives shared during the webinar:

• “There’s good and bad in every industry — but transparency brings certainty.”
• “Owners want fixed fees while expecting managers to wear many hats — we’re not engineers or facilities managers.”
• “Committee skill gaps and churn can undermine asset protection — training is a no-brainer.”
• “Value vs price: on a $1m lot, $500/year is 0.05% for management — under-investing is a false economy.”
• “AI can help, but legislation and context still require expert review.”

Talent and client retention in a tight market

Participants asked how to retain both clients and great team members as competition intensifies. The most durable strategies were practical rather than flashy: align portfolios to complexity, provide admin and tech support, coach teams in conflict management, and choose clients as carefully as clients choose managers.

Correction from the presenter

Michael Teys has provided an update to a statement in the video:

“Hello all, it’s been pointed out to me that I have made a mistake quoting research figures about $10. 5 B for defects yet to be done in buildings that were built in the last 1O years. The correct figure from Equity Economics for repairs yet to be done is $6.2 B. The figure of $10. 5 B is for work done over the last 10 years quoted by OCN in its submission to a government enquiry based on the work of Mozo Property Defects Survey Pureprofile July – August 2019 available at Mozo.”

Resources

• Download the presentation slides: How strata managers are adapting to a new environment.

Presenter

Michael Teys
Michael Teys Strata Advisory
E: [email protected]
P: +61 419 644 288

General information only. This article summarises discussion points from a LookUpStrata webinar and does not constitute legal or professional advice. Seek independent advice for your scheme’s circumstances.

This post appears in Strata News #762.

Further reading

• NAT: Strata Managers are undervalued and underpaid
• NSW: Strata manager remuneration
• NAT: Fair strata agreements: New rules reshaping strata practices across Australia

Visit Strata Managers OR Strata Legislation QLD.

Looking for strata information concerning your state? For state-specific strata information, take a look here.

After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.