Victoria’s register of body corporate managers is growing fast, with many new entrants coming from real estate, bookkeeping and accounting. This surge echoes what happened before the Owners Corporations Act 2006, when a wave of newcomers entered the industry only to leave once compliance requirements increased.
Some real estate businesses have the systems and experience to manage both real estate and body corporate portfolios well. Others enter the sector without the knowledge or infrastructure needed.
So while real estate agents can make good body corporate managers, it depends entirely on their capability and understanding of the OC Act 2006.
Body corporate management is a specialised field and not everyone entering the industry is equipped to deliver it effectively.
Key Takeaways:
- Real estate agents can manage OCs well only if they have proper strata knowledge and systems. Many enter without understanding the compliance demands.
- With more newcomers in the sector, capability varies widely. Committees must check that a provider has the structure and experience to manage an OC.
- Red flags like weak systems or limited experience lead to service and compliance issues. Choosing a proven, well-resourced manager protects the building.
Understanding the difference between real estate and body corporate management
Although both sectors relate to property, real estate and body corporate management operate very differently. Real estate work focuses on marketing, leasing, sales, client service and tenancy matters. These activities are transactional and driven by the property market.
Body corporate management requires a more compliance-focused skill set. Managers must interpret legislation, follow governance and meeting procedures, oversee building operations, handle trust accounts, manage insurance and risk and plan long-term maintenance.
They are also responsible for dispute resolution and ensuring compliance with the OC Act 2006. It is a governance discipline rather than a sales function.
Why more real estate agents are entering body corporate management
Many real estate agencies are now expanding into body corporate management in response to changing market conditions and the steady demand for strata services.
For some, it is seen as a logical extension of their property work and a way to diversify income during slower sales or leasing periods.
A number of agencies have made this transition thoughtfully, investing in trained staff, dedicated systems and the processes needed to manage Owners Corporations (OC) properly.
Others, particularly smaller real estate businesses, have entered the sector without a clear understanding of the regulatory and administrative responsibilities involved.
For Committees, the challenge is identifying which providers have the depth, structure and experience to manage an OC effectively and which may struggle to meet compliance and service expectations.
Warning signs of an underqualified or poorly resourced manager
While some companies have the structure and experience to manage both real estate and body corporate portfolios effectively, many smaller agencies take on body corporate management as an additional revenue stream without fully understanding the responsibilities involved.
Body corporate management requires knowledge of strata legislation, building compliance, trust accounting, insurance processes and dispute management. Without this foundation, service quality can decline.
Before appointing a manager, Committees should be aware of indicators that a provider may not have the capability or resources needed to support an Owners Corporation properly.
Common red flags include:
- limited strata management experience
- frequent job changes or shifting business focus
- generic or incomplete websites
- use of personal email domains
- no physical office location
- stock images instead of real staff profiles
- lack of dedicated strata management software
- a small or newly formed client base
- limited access to qualified trades
- no in-house accounting support
- involvement in multiple unrelated businesses
These issues can lead to inconsistent service, compliance gaps and difficulty managing the operational and financial needs of an OC.
Committees should ask direct questions, request references and seek clear information about a manager’s experience and systems before making an appointment.
What poor body corporate management looks like in practice
We recently assisted a body corporate in Melbourne that was struggling to end its contract with a manager who had become difficult to deal with.
The Committee faced resistance at every step. The manager challenged meeting validity, delayed releasing records and sent communication that became increasingly unprofessional and adversarial.
After reviewing the documents and correspondence, it became clear that the Committee had a lawful pathway to exit the contract. With guidance, they passed the necessary resolutions and appointed a new body corporate manager.
By mid-December 2020 the incoming manager had already contacted owners, collected the books and records and scheduled the next Annual General Meeting (AGM) for January. The Committee then reported an immediate improvement.
Their feedback was simple:
“Just happy that they’re no longer with [name omitted].”
This example shows how poor management can lead to conflict, delays and unnecessary stress for owners. When communication breaks down and processes are ignored, the entire operation of an OC is affected.
Choosing a manager with the right experience and structure
With so many new entrants in the sector, choosing a body corporate manager now requires more care than ever. Committees should look for providers who offer:
- proven strata experience
- transparent processes
- strong governance systems
- qualified and dedicated staff
- clear communication
- sound financial management practices
These qualities help ensure your building is managed by a team equipped to support compliance and long-term stability.
If your OC is reviewing its current arrangements or considering a change, Change Body Corporate Victoria can help.
We guide Committees through the selection of a manager who aligns with your building’s needs.
To discuss your situation or request a consultation, contact us today.
