Do We Need a Body Corporate Manager? What Self-Managed Owners Often Learn the Hard Way 

For most owners corporations in Victoria, appointing a body corporate manager is a choice, not a legal requirement.  

But that choice comes with real accountability and understanding where self-management works, and where it commonly breaks down, is critical before problems arise. 

Key takeaways:  

• Under the Owners Corporations Act 2006 (VIC), Tier 1 owners corporations (more than 100 occupiable lots) are legally required to appoint a manager by default though they may opt out by special resolution under s.119(1A). For Tiers 2 to 5, appointing a manager is optional. 

• Regardless of tier, the owners corporation itself remains fully accountable for compliance, insurance, finances, and record-keeping whether or not a professional manager is appointed. 

• Without clear roles and structured processes, self-managed buildings often develop gaps in insurance, record-keeping, and decision-making that only surface during sales, disputes, or claims. 

• Appointing a body corporate manager does not remove owner authority. It provides structured compliance, accurate record-keeping, and reduces the reliance on goodwill reducing stress and financial risk for all owners. 

Self-managing is a legal option for most, but responsibility is never optional 

The Owners Corporations Act 2006 (VIC) sets out a five-tier system based on the number of occupiable lots, and the requirement to appoint a manager depends entirely on which tier applies to your building. 

Under section 119(1) of the Act, a Tier 1 owners corporation (more than 100 occupiable lots) must appoint a manager. This is the default legal position. However, under section 119(1A), a Tier 1 owners corporation may pass a special resolution to opt out of that requirement and under section 119(1B), that decision can later be reversed by ordinary resolution if the owners corporation changes course. 

For Tier 2 to 5 owners corporations (up to 100 occupiable lots), section 119(1C) provides that appointment of a manager is permissive that is, the owners corporation may appoint one, but is not required to do so. 

What the Act does not do at any tier is remove the owners corporation’s underlying obligations. Even without a professional manager in place, someone still has to: 

• coordinate decisions 

• keep records 

• manage finances 

• arrange insurance 

• ensure compliance with the Act 

Without clear roles and systems in place, self-management quickly becomes dependent on goodwill rather than governance. Decisions may be made informally, records kept inconsistently, and statutory obligations assumed rather than verified. 

These weaknesses often remain unnoticed until a triggering event occurs, such as an insurance claim, a sale, or disagreement between owners, when the absence of structure becomes difficult to unwind. 

Questions that tend to surface at these moments include: 

• who is actually responsible? 

• who signs documents? 

• who ensures deadlines are met? 

• who carries the risk when something is missed? 

The minimum legal duties every owners corporations must meet 

Even the smallest self-managed owners corporation must comply with several statutory obligations. These are not optional or “best practice” they are legal requirements. 

Under the Act, this includes the obligation to: 

Maintain adequate insurance 

Owners corporations must arrange appropriate insurance for common property, including public liability cover. Failing to do so can expose all owners to personal financial risk. 

Keep accurate ownership and records 

An up-to-date owners list, financial records, and other prescribed documents must be maintained and made available when required. 

Prepare budgets and raise levies correctly 

Annual budgets must be prepared, and levies issued in accordance with lot liability as set out in the registered plan, not based on informal agreements. 

Issue Body Corporate Certificates 

When a lot is sold, the owners corporation must provide a Body Corporate Certificate containing prescribed information. Errors or delays can derail settlements. 

Maintain common property 

Repairs and maintenance are a continuing obligation, not something that can be deferred indefinitely because funds are tight or consensus is difficult. 

None of these tasks are complicated on their own. The difficulty is doing them correctly, every year, without gaps, especially when ownership changes or disputes arise. 

Where self-managed bodies corporate most often get caught out 

Most self-managed owners corporations don’t fail because of neglect, they fail because of assumptions. Mostly, insurance a common pressure point, treated as a “set and forget” task, yet it carries some of the highest risk. 

Other issues include: 

• The wrong policy type held in the body corporate’s name 

• Underinsurance that excludes demolition, debris removal, or reinstatement costs 

• Missing covers such as office holders’ liability, volunteer workers, loss of rent, or catastrophe cover 

These gaps often only come to light after a claim, when it’s too late to fix. 

Informal decision-making creates exposure 

Verbal agreements, email approvals, or “everyone’s happy with it” decisions may feel efficient, but they don’t always meet legislative or insurer expectations. 

When disputes arise or new owners join, those informal arrangements rarely hold up. 

One person carries most of the burden 

In many self-managed buildings, one owner ends up doing the work. When that person sells, disengages, or burns out, the owners corporation is left scrambling. 

When support becomes a practical decision 

For many owners corporations, the move away from self-management isn’t about surrendering control. It’s about recognising when informal arrangements have reached their limit. 

Under the OC Act 2006, owners retain decision-making authority whether they self-manage or appoint a professional manager. What changes is not who decides, but how consistently obligations are met and risks are managed. 

A well-matched body corporate manager brings structure where self-management often relies on assumption. Compliance is tracked rather than hoped for, insurance and finances are reviewed with intent rather than rolled over, and records are maintained in a way that stands up when they are actually needed, during a sale, a claim, or a dispute. 

Most importantly, responsibility no longer rests quietly with one owner simply because they are willing or available. 

This is usually the point where owners start looking for help, not because something has gone wrong yet, but because they can see how easily it could. 

How Change Body Corporate supports that transition 

Change Body Corporate works with owners corporations who are reassessing their current arrangements, whether they are self-managing or questioning whether their existing manager is still the right fit. 

We help by reviewing your situation objectively, identifying compliance or insurance risks that may not be obvious, and connecting you with suitable, registered body corporate managers based on your building’s needs, not a one-size-fits-all solution. 

There’s no obligation and no pressure to change. Just clarity, comparison, and informed choice. 

If self-management is starting to feel less sustainable or if you simply want confidence that your owners corporation is properly supported we can help you explore your options with assurance.