WA: Choosing the right strata manager: a guide for councils of owners

Your strata managers play a vital role in supporting the smooth operation and governance of a WA strata scheme. Choosing the right manager is one of the most important decisions a council of owners can make. In a recent WA-specific LookUpStrata webinar, hosted by Nikki Jovicic and featuring strata educator Luke Downie from Realmark, owners were guided through how to assess a strata manager’s performance, compare proposals, and ensure their appointment delivers real value.

WA: Selecting the right strata manager: What to look for and what to ask | Luke Downie, Realmark – July 2025

Luke began by reminding attendees that while price is often a major factor in selecting a manager, it should never be the only one. A capable, proactive strata manager can save a scheme thousands of dollars in the long term by ensuring compliance, streamlining processes and supporting effective decision-making. On the other hand, a poorly chosen or unsupported manager may lead to costly delays, frustration and legal risk.

What can and can’t be delegated to a strata manager?

The presentation opened with an overview of delegation under WA’s Strata Titles Act 1985. Luke explained that while a strata company can delegate a wide range of administrative and operational functions to a manager, some core powers must remain with the council of owners. These include decisions about levy contributions, signing contracts, commencing legal proceedings, and using the common seal. These powers cannot be passed on to a manager under any circumstances.

Delegable tasks, however, are extensive. Strata managers commonly assist with insurance placement and claims, budgeting and levy collection, record keeping, by-law compliance, and the preparation of notices and minutes for meetings. They may also coordinate maintenance work, provide general legislative advice, and liaise with contractors on behalf of the council. All delegated functions must be clearly documented in the management authority, and councils should review this document carefully to understand what the manager is and isn’t responsible for.

Luke also stressed that strata managers are not subject matter experts. While they are often involved in matters such as building repairs or insurance claims, their role is to coordinate, not to advise. Councils should engage legal or technical specialists when dealing with complex matters, rather than relying solely on their manager’s input.

What to look for when choosing a good strata manager in WA

A key section of the session focused on identifying the qualities of a high-performing strata manager. Strong communication came first. When choosing a strata manager in WA, Councils should look for clear, timely and professional correspondence, along with the ability to handle conflict diplomatically and maintain good relationships with all stakeholders.

Organisational ability was also identified as critical. A reliable manager will schedule maintenance and compliance checks proactively, not just reactively, and will keep accurate records. Good managers have a sound grasp of the law, understand their legislative obligations, and are able to interpret and apply strata legislation appropriately. Financial competence was another core trait — managers should be able to budget thoughtfully, track expenses transparently, and highlight upcoming financial risks.

Lastly, Luke emphasised the importance of problem-solving. Great strata managers are resourceful, quick-thinking and focused on finding long-term solutions rather than quick fixes. They know when to bring in external experts and how to support councils in making informed decisions.

Understanding fees and value

In WA when choosing a strata manager, many strata companies focus heavily on comparing base management fees, but this can be misleading. Luke warned that a lower base fee may correlate with a higher number of buildings or lots per manager, potentially leading to poor service. Instead, councils should assess what is included in the base fee and what is charged separately under Schedule B. These additional fees can cover everything from extra meetings to levy arrears notices, and they can add up significantly over the course of a year.

Insurance commissions were another point of discussion. Some agencies include these commissions as part of their income, while others do not. Councils should understand whether commissions are being received, and if not, whether the base fee has been adjusted accordingly. Transparency around annual increases and the process for reviewing fees was also highlighted as essential. Councils should look for contracts that clearly outline how and when fee changes can occur, and whether consent is required before certain additional charges are applied.

Luke encouraged larger schemes to consider using a two-step selection process: a Request for Information (RFI) to assess suitability and culture fit, followed by a formal Request for Tender (RFT) to compare pricing and services across agencies.

Questions councils should be asking

One of the most practical sections of the webinar focused on the essential questions every council of owners should ask when assessing a new strata manager. These help uncover service quality, responsiveness, and operational fit — not just pricing. Key questions include:

• How many lots does the proposed strata manager oversee?
• What level of support does the manager have (e.g. admin staff, finance team, insurance support)?
• What are the expected response times for phone calls and emails?
• What KPIs are used to measure performance internally?
• How is staff turnover managed, and what is the process when a manager leaves?
• What level of real-time transparency is offered to the council of owners (e.g. document access, financials)?
• Is the agency a member of SCAWA and do they follow its code of conduct?
• What training or professional development is in place for managers?
• What complaint handling procedures does the agency have?
• What systems are used to manage compliance obligations such as insurance renewals?
• What software does the agency use, and what benefits does it offer your scheme?
• Can the agency provide phone references from existing clients?
• Does the agency undertake statutory or internal audits of their operations?
• How does the agency support contract and asset management?
• What expectations does the agency have of the council of owners?
• How do they handle emergency repairs or after-hours issues?
• Are there clear boundaries for what the manager can authorise without council approval?

During the process of choosing a strata manager, Luke also encouraged WA councils to compare answers side-by-side across shortlisted agencies and to openly share their own expectations during the interview process. Clear mutual understanding from the outset leads to better outcomes and fewer misunderstandings later on.

Reviewing the contract

The management authority forms the legal basis of the strata manager’s appointment and should never be signed without proper review. Councils were advised to pay close attention to the term of the contract, any clauses that permit assignment to another agency, and whether the agreement outlines all fees and commissions. Shorter contracts are recommended when engaging a new agency, while longer terms may be suitable once a positive working relationship is established.

Disclosure of financial interests, education qualifications, PI insurance coverage, and indemnity clauses are also important. Councils should understand whether the contract contains any attempts to shift liability from the manager to the strata company, and if so, what this could mean in practice.

Luke recommended that councils unfamiliar with contract terms seek legal advice before signing, particularly when negotiating bespoke changes or adding clauses such as a no-fault termination option.

Final Thoughts: The value of a strong working relationship

The webinar closed with a strong message about the importance of communication and trust. Strata managers are most effective when councils take the time to build a cooperative, transparent relationship with them. Problems should be addressed early and respectfully, and councils should not hesitate to meet with the agency’s leadership if serious concerns arise.

If a change of manager is being considered, the first step should always be to review the dispute resolution process outlined in the contract and attempt to resolve the issue constructively. As Luke noted, “Invest time in developing a good working relationship with your strata manager. That relationship can make or break your experience as a council of owners.”

Presentation slides

Download the slide pack from the presentation here: WA Selecting the right strata manager

Presenters

Luke Downie
Realmark
E: ldownie@realmark.com.au
P: 08 9328 0999

This post appears in Strata News #752.

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Further reading for WA strata owners

• Free ‘Appointing A New Strata Manager Checklist’ for WA
• WA: Q&A Procedure for Appointing a New Strata Manager
• WA Q&A: Our Strata Manager Won’t Disclose their Insurance Commission

Visit Strata Managers
OR Strata Information WA pages.

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

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