WA: Q&A What are the Strata Manager’s Duties and Do We Really Need One?

WA lot owners are wondering what the Strata Managers’ duties are since the reforms. What should be expected from your strata manager and what authority do they have to act on behalf of the strata company?

Table of contents:

• QUESTION: In Western Australia under the amended Strata Titles Act 1985, how much can a strata manager spend on maintenance per unit without the strata company’s approval?
• QUESTION: In Western Australia under the amended Strata Titles Act of 1985 how much can a strata manager spend on maintenance per lot without the strata company’s approval?
• QUESTION: The role of the council of owners vs the role of the strata manager. Who really runs the show?
• QUESTION: When reporting required maintenance, what is the minimum communication standard an owner can expect from a Strata Manager?
• QUESTION: Our committee instructed the strata manager to conduct additional services not specified in their contract. Should the manager have refused the request?
• QUESTION: With the new WA legislation, can a complex of 6 lots still self managing or are there specific legislation or other laws that require us to appoint a strata manager?
• QUESTION: How do I find out the contact details of the company who manages my strata?
• QUESTION: What happens when figures presented by the Strata Manager do not balance/reconcile?
• QUESTION: We are a 95 site strata-titled caravan village. The Landgate site says the amended STA does not require us to employ a strata manager. Do we need to have a volunteer strata manager? I assume this would have to be an owner?
• QUESTION: The strata manager for our new building was appointed by the developer and is located in the eastern states. He has no idea of the needs of the building. Surely this is not ideal.

Question: In Western Australia under the amended Strata Titles Act 1985, how much can a strata manager spend on maintenance per unit without the strata company’s approval?

Answer: The strata manager can only spend what the strata council have approved for payment and within the approved budget amounts for each line item of expenditure.

The question raised is an interesting one because some strata companies do authorise the strata manager to make payment on various or all expenditure items. Such conditions would need to have been written up in the Management Contract.

Otherwise, you are allowing someone “Carte Blanche” spending on the Admin and Reserve Accounts.

My standard answer would be that the strata manager can only spend what the strata council have approved for payment and within the approved budget amounts for each line item of expenditure.

Many strata management companies don’t want the liability of approving any expenditure that comes along.

So the big take on this is – be sure you know what services you are signing for in the Management Contract.

Shane White
Strata Title Consult
E: [email protected]

This post appears in Strata News #563.

Question: In Western Australia under the amended Strata Titles Act of 1985 how much can a strata manager spend on maintenance per lot without the strata company’s approval?

Answer: The strata manager can only spend what the strata council have approved for payment.

The question raised is an interesting one because some strata companies do authorise the strata manager to make payment on various or all expenditure items. Such conditions would need be written up in the Management Contract.

Otherwise, you are allowing someone “Carte Blanche” spending on the Admin and Reserve Accounts.

My standard answer would be that the strata manager can only spend what the strata council have approved for payment and within the approved budget amounts for each line item of expenditure.

Many strata management companies don’t want the liability of approving any expenditure that comes along.

So the big take on this is – be sure you know what services you are signing for in the Management Contract.

Shane White
Strata Title Consult
E: [email protected]

This post appears in Strata News #561.

Question: The role of the council of owners vs the role of the strata manager. Who really runs the show?

Answer: The Strata Manager is a contracted service supplied to the Strata Company, and Strata Managers need that direction from the Council with regards to most of the duties undertaken on behalf of the Strata Company.

In the end, Section 135 talks about the functions and the Constitution of the Council and ultimately, the role of the Office of the Council is to perform all the duties of the Strata Company. The Strata Manager is a contracted service supplied to the Strata Company, and Strata Managers need that direction from the Council with regards to most of the duties undertaken on behalf of the Strata Company.

As long as the Strata Manager informs the council, provides expertise around the legislation and helps in keeping them informed on the bylaws that also govern the scheme, it then falls to the Council of Owners as to whether they want to take on that advice, or want to instruct the strata manager differently.

Ultimately, as long as the Strata Manager feels it is not going to cause significant detriment to the scheme and by and large as long as we inform the Council along the way, we generally tend to do what the council asks us to do.

Scott Bellerby
B Strata
E: [email protected]
P: 08 9382 7700

This post appears in Strata News #499.

Question: When reporting required maintenance, what is the minimum communication standard an owner can expect from a Strata Manager?

What is the expectation of return communication from a Strata Manager when reporting common property issues such as a remote electronic gate not working properly? I sometimes don’t even get an acknowledgment of receipt of the email and often do not receive any indication of who they are contacting and when they expect someone onsite. This had led to major delays, as the strata manager has not let the owner know that the contractor they contacted has not been able to turn up.

Surely it is professional to let all owners know when a problem is reported and when the fix is expected to take place. We don’t even get to know if it is fixed or not. What is the minimum requirement an owner can expect from a Strata Manager regarding communication? 

Answer: The Strata Manager may have to obtain approval from council members to action maintenance, and this can take time depending on the individual availabilities of those council members.

Issues such as the electronic gate not working should be treated as a priority issue by the Strata Manager, and it would be expected that when reporting such an issue, return confirmation of action taken would be received that day. That being said, it is also important for owners to understand that if they deem any common property maintenance issue as urgent, their email is flagged accordingly. It is also recommended that customers call the Strata Manager to alert them to the issue.

In some circumstances, the Strata Manager then has to obtain approval from council members to action maintenance, and this can take time depending on the individual availabilities of those council members. We strive to action all urgent maintenance items as quickly as possible, however, this is not always achievable as we do require the express authority of the Council of the Strata Company prior to actioning any works. It is not always reasonable or practical to notify all owners after we receive a report of common property maintenance and its time frame for being repaired. It is really up to the Council as to whether or not all owners/residents would need to be notified, and that would likely depend on the nature of the repairs, the associated time frame, and their specific instruction.

We encourage communication with the owner who reported the matter. Also, when a contractor is assigned with an urgent work request, we call them to ensure they can attend as quickly as possible. The contractor is asked to directly contact the owner who reported the matter to arrange a mutually convenient time to attend the site and rectify this issue.

ESM Strata Team
ESM Strata
E: [email protected]
P: 08 9362 1166

This post appears in the November 2021 edition of The WA Strata Magazine.

Question: Our committee instructed the strata manager to conduct additional services not specified in their contract. Should the manager have refused the request?

Division of Common-area work and exclusive-use area work

Our committee instructed the strata manager to include exclusive use area work with work in the common area and sent a “miscellaneous invoice” to all owners when the work was not requested or needed by every owner.

The additional service for exclusive use areas is not specified in our contract with the strata manager. Should the manager have refused the request? Are the actions of the committee in contravention of the act?

Answer: It’s not generally the Strata Manager’s position to refuse the direction of the Council.

It would be very beneficial to know what the exclusive use bylaw says around the maintenance of exclusive use areas. It’s generally anticipated that the maintenance within this exclusive use area would generally fall onto the owner saying that sometimes they do put the onus on the strata company to maintain. So that is a little bit difficult to answer.

Assuming the exclusive use bylaw puts the onus on the owners, I guess there are a couple of steps that should have been followed. In the end, the strata company, via the Strata Manager, should give notice to the owners about the need to potentially undertake maintenance within their exclusive use area. Then the Strata Company may reserve the right to step in and make those repairs.

I don’t know what has been undertaken from this inquiry, so it’s hard to really talk to it further. Should the Strata Manager have refused the request from the Council of Owners? As long as the Strata Manager was informing the council around where the boundaries of maintenance and exclusive use areas are and the council’s being happy to instruct otherwise, it’s not generally the Strata Manager’s position to refuse the direction of the Council.

Are the actions of the committee in contravention of the Act? There has been precedent set that suggests that the Strata Company shouldn’t be maintaining exclusive use areas where the bylaw details that but again, without actually knowing and being able to read the bylaw around exclusive use, I’m not willing to suggest that they have contravened the act.

Scott Bellerby
B Strata
E: [email protected]
P: 08 9382 7700

This post appears in the September 2021 edition of The WA Strata Magazine.

Question: With the new WA legislation, can a complex of 6 lots still self managing or are there specific legislation or other laws that require us to appoint a strata manager?

I am a lot owner in a group of six townhouses in WA. I bought the townhouse around 20 years ago and we have been running as a self managed strata scheme. 

With all the new WA legislation, I was wondering if self managing our complex is still OK or are there specific legislation or other laws that pertain to our complex that require us to change? I have seen some articles that specifically talk about ‘five’ units or less being able to be self managed but unsure of our group of six?

Answer: We would always recommend that the Strata Company engage a qualified professional Strata Manager to ensure that the requirements in the legislation are met.

We would always recommend that the Strata Company engage a qualified professional Strata Manager to ensure that the requirements in the legislation are met.

In relation to your specific query, there is nothing within the new updated legislation that specifies requirements for a 6 lot site. The Act has previously contained exemptions for 2 to 5 lot schemes however there have been no additions specific to a 6 lot scheme.

The updated legislation does now provide for Strata Managers, including volunteer managers. The volunteer managers are provided exemptions under the new legislation also, as per Sections 144, 145 and 155, and Section 143 provides some clarification on the authority of the Strata Manager, volunteer or professional.

The requirements of Section 144 do require that there is a volunteer agreement in place between the Volunteer manager and the Strata Company.

The Definition is now in the Act as:

Strata manager means a strata manager of a strata company who —

1. is the owner of a lot in the strata titles scheme; and
2. does not receive any fee, reward or benefit for work performed as a strata manager other than an honorary fee or reward not exceeding, if an amount is fixed by the regulations, that amount; and
3. personally performs the work of the strata manager;

Under Regulation 79 they define a designated Strata Company in relation to the new requirement for a 10 Year Plan.

The new legislation requires any scheme, 10 lots or over, to complete a 10 year plan – however, there is an exception.

If a Strata Company is under 10 lots and has a building replacement value of more than $5,000,000, they are required to do a 10 Year plan. So a 6 lot plan may be impacted however they would need to refer to their insurance cover/valuation to determine.

Shelley Fitzgerald
Strata Alliance
E: [email protected]
P: 9330 3959

This post appears in Strata News #484.

Question: How do I find out the contact details of the strata management company that manages my strata?

Answer: There is currently no register available to look up Strata Managers for a complex so you will need to do some detective work

Without having any specific details on this particular question, we can only offer an old fashioned type of answer.

Are you a new owner? If you are then you can maybe track the Strata Company via the documents provided at the settlement of your property? Were you provided minutes from the AGM? The contact, and/or their details may be included in the minutes? Maybe the AGM was held at the offices of your Strata Manager and this will be documented in the minutes. Have you received any other documents from your Strata Company? Where do your levies come from or how do you pay them?

If you have been at the complex for some time you will need to track back on your previous communications to find out who the Strata Manager is or their contact details – look for phone numbers, or postal addresses or email addresses on any of the Communications you have received.

There is currently no register available to look up Strata Managers for a complex so you will need to do some detective work.

Shelley Fitzgerald
Strata Alliance
E: [email protected]
P: 9330 3959

This post appears in the May 2021 edition of The WA Strata Magazine.

Question: What happens when figures presented by the Strata Manager do not balance/reconcile? 

At our AGM, the Statement of Financial Position (Balance sheet) did not balance. The Chairperson stated there was no requirement in the STA for it to be adopted and tabled. Sect 101 says the Strata Company must keep proper records. What happens when figures presented by the Strata Manager do not balance/reconcile?  

Answer: Whilst the Act does not specifically state that the financials should balance, it would not be considered a proper record of accounts without it balancing.

There is a requirement under section 101 of the Strata Titles Act for the Strata Company to prepare a statement of accounts for each financial year showing the assets, liabilities income and expenditure. This same section requires that the strata company keep a proper record of accounts.

Section 127 requires the statement be presented to the annual general meeting for consideration.

Whilst the Act does not specifically state that the financials should balance, it would not be considered a proper record of accounts without it balancing.

My recommendation to any annual general meeting that is not completely satisfied by the financial reports being presented is not to accept them. Perhaps a counter motion that the council of owners be authorised to accept the financial statement once all concerns have been satisfied and they are confident that the statement represents a true and correct record of the Strata Companies financials.

101. Accounting records and statement of accounts

1. A strata company must keep proper accounting records of its income and expenditure.
2. A strata company must prepare a statement of accounts for each financial year showing —
   1. the assets and liabilities of the strata company at the end of the financial year; and
   2. the income and expenditure of the strata company for the financial year.

Luke Downie
Realmark
E: [email protected]
P: 08 9328 0999

This post appears in the March 2021 edition of The WA Strata Magazine.

Question: We are a 95 site strata-titled caravan village. The Landgate site says the amended STA does not require us to employ a strata manager. Do we need to have a volunteer strata manager? I assume this would have to be an owner?

The Landgate site says the amended STA does not require us to employ a strata manager. Do we need to have a volunteer strata manager, who I assume would have to be an owner?

Answer: A 95 Lot Caravan Park strata scheme has its own unique problems and operating requirements.

Answer 1: A 95 Lot Caravan Park strata scheme has its own unique problems and operating requirements.

Under the new changes to the Act, Strata Managers are required to have a good understanding of the Act.

Strata Managers should attend regular training to keep up to speed with the new version of the Act and how things are implemented.

It is a decision to be made by the strata company if you want to be managed by a strata management company as opposed to self-managed.

You would have to weigh up whether you wish to run on a shoestring or pay the real cost to be managed by a strata manager.

Answer 2: You are left to your own devices if you are self-managed. There is no requirement for self-managed schemes to undertake educational courses but “ignorance of the law is no excuse”.

For a large scheme such as yours it may be of some comfort to the owners that the bookkeeper has a Criminal Record check done to satisfy any enquiry. It is not required to be supplied to everyone but would be of some assurance if there are requirements to deal with money.

Shane White
Strata Title Consult
E: [email protected]

This post appears in Strata News #382.

Question: The strata manager for our new building was appointed by the developer and is located in the eastern states. He has no idea of the needs of the building. Surely this is not ideal.

I am a lot owner and resident in a new building (12 months old) and the strata manager is based somewhere in the eastern states. He has appeared once for the first AGM and never been seen since. The strata manager was chosen by the building developer, also based in the eastern states.

He has no idea of the building or the problems associated with a new building. He asks for photos to be sent to him of problems and has no idea of suitable providers of services eg gardeners.

Is it considered suitable to have a strata manager based in another state?

Answer: There is nothing that requires the Strata Manager to be in the same area or state as the property they are managing.

Please note: this response was provided prior to the proclamation of the new strata title amendments.

There is nothing that requires the Strata Manager to be in the same area or state as the property they are managing.

I would note however that the WA Strata Legislation is not the same as the Eastern States so it would beg the question as to what legislation they are using in relation to the management of your particular Strata Company.

It would be worth reviewing your bylaws to determine how long this Strata Manager has been appointed, or if there is a contract in place. It may also be worth contacting the elected Council Members and discussing the concerns you have. Any changes will require the support and consent of other owners in the complex and the Councillors should be fully informed of any specific arrangements in place with the Strata Manager.

It would seem that there would be issues around appointing local contractors, liaising with contractors, and obtaining keys to access the site to carry out repairs and maintenance. The Elected Council Members should be the informed parties on these types of matters for the site.

If there are any future building defect matters to be attended to you may find that your Strata Manager has a conflict of interest in pursuing the builder, causing delays and further complications.

You have noted that the Strata Manager asks for photos of any reported problems and this would be the case with local service providers also. It is always best to try and quantify what the matter is before allocating work/investigation to a tradesperson. The difference with a local Strata Manager is that they would have knowledge of the local qualified professionals to arrange to attend and investigate.

We strongly recommend that you gather your information and conduct your discussions now to put your mind at rest, rather than leaving it until a problem arises.

Shelley Fitzgerald
Strata Alliance
E: [email protected]m.au
P: 9330 3959

This post appears in Strata News #314.

Read next:

• WA: Resolving Strata Disputes Under the Strata Title Act Amendments
• WA: Q&A Where can I make strata manager complaints in WA?

1 May 2020 Update:
The amended Strata Titles Act 1985 took effect in Western Australia on 1 May 2020. It includes grace periods for some new requirements to ensure those affected have adequate time to meet them. This information has been taken from Landgate: Timelines for Change.

Improving strata management and by-laws: Changes to the role of strata managers

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