When you are looking for small building strata management in Sydney, seek strata managers specialising in smaller schemes to ensure proper attention. Tendering for a new manager can assist to strengthen your negotiating position.
Question: How can a four-lot strata scheme in Sydney find a strata manager interested in small building strata management? Can small schemes improve their bargaining power when negotiating the management agreement?
How can a small four-lot strata scheme in Sydney find a strata management company interested in small building strata management? Can a small scheme increase its bargaining power when negotiating a strata management agreement, given that strata management agencies may consider the business of managing small strata schemes to be relatively unimportant and the agency isn’t interested in considering changing any of the clauses in their agreement?
Answer: The key to resolving this issue is identifying the right fit in the first instance. If you’re with a company that specialises in smaller buildings, you will receive the right level of care from that strata management company.
We frequently encounter this question. The simple answer is that you’re probably with the wrong agency. At the end of the day, strata management companies are a business and the purpose of a business is to make profit. In doing so, they are required to define their “wheelhouse”. For some companies, up to 25 lots is their specialty. Some choose to manage mid-sized buildings, or they may specialise in large, complicated buildings.
If your owners corporation is currently with a strata management company that primarily operates in the large and complex market, they’re likely receiving more remuneration from the larger buildings on an annual basis, so they will likely be inclined to give these clients more attention.
If you’re with a company that specialises in smaller buildings, you will receive the right level of care from that strata management company. It’s all about identifying the right fit within the market. Sometimes, this is a difficult thing to do.
Consider using a tendering company or relying on recommendations from a lot owner in a similar-sized building or something to that effect. Do your research and make sure you’re in a relationship with the right organisation.
Megan Parkins
Tender Advisory
E: megan@tenderadvisory.com.au
P: 0435 893 670
This post appears in the August 2025 edition of The NSW Strata Magazine.
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