Should a strata management contract be reviewed before its expiry date?

Yes, it is advisable to review your strata management contract before it expires, even if the term runs until 2027. While an early review won’t automatically change the legal effect of the current contract, it can help the OC assess whether the terms are still appropriate, ensure the managing agent is meeting expectations, and prepare well in advance for renewal, renegotiation, or replacement.

Under section 50(1)(b) of the Strata Schemes Management Act 2015 (NSW) (SSMA), a strata management agency agreement cannot exceed 3 years, unless it was entered into at the first AGM of the strata scheme, in which case the maximum term is 12 months. Once the term expires, the owners corporation may choose to reappoint the strata manager by resolution at a general meeting.

While you're bound to the existing contract until its expiry (unless it is lawfully terminated earlier), the standard SCA agency agreement usually includes a clause allowing for annual reviews of services and charges. These review clauses give the parties an opportunity to:

• assess performance and satisfaction;
• adjust service levels or fee structures (by mutual agreement);
• raise concerns about compliance, transparency, or communication

In short, while reviewing the contract won’t change your current legal obligations unless both parties agree to a variation, it is still a strategic and prudent step to protect the interests of the owners corporation, particularly with significant reforms to strata law coming into effect in the near future.