🔄 Changing Strata Managers? Don't Leave Yesterday's Problems for Tomorrow's Manager

One of the most common misconceptions I encounter when a strata company changes managers is this:

"Now that we've appointed a new strata manager, they'll sort out everything the previous manager did."

The reality is quite different.

A new strata manager is appointed to manage the Strata Company from the commencement of their appointment, not to unravel years of historical issues created under a previous management arrangement.

Understanding this distinction can save a great deal of frustration for everyone involved.

📅 A New Appointment Starts a New Chapter

When a new strata manager takes over, there is already a significant amount of work involved before they can even begin managing the scheme.

This includes:

• receiving and reviewing the strata records;

• reconciling bank accounts and financial information;

• transferring insurance, utilities and service providers;

• confirming contracts and maintenance schedules;

• setting up software, owner databases and communication systems; and

• ensuring the scheme can continue operating without interruption.

The focus is on establishing accurate records and ensuring the smooth administration of the scheme moving forward.

It is not a forensic audit of every historical decision.

💰 Historical Financial Issues

Occasionally, owners discover concerns such as:

• payments made for work they believe was never completed;

• unexplained invoices;

• missing financial records;

• accounting discrepancies;

• contractors who were paid but whose work is disputed.

These are legitimate concerns.

However, they relate to the actions of the previous management and should ideally be investigated before the management agreement ends, while the former strata manager still has immediate access to the records, supporting documentation and knowledge of the transactions.

Once management changes, the incoming manager is often working from archived records and has no first-hand knowledge of why decisions were made months or years earlier.

📂 The Incoming Manager Wasn't There

This is an important point that is sometimes overlooked.

The incoming strata manager:

• did not approve the invoices;

• did not authorise the payments;

• did not supervise the contractors;

• did not attend the site inspections;

• did not negotiate the contracts.

Expecting them to explain or justify decisions they were never involved in places them in an impossible position.

Their responsibility is to administer the Strata Company from the date their appointment begins.

⚖️ Accountability Still Matters

This does not mean historical issues should simply be ignored.

If owners have genuine concerns about past financial management or contractor payments, there are appropriate avenues to pursue those matters. Depending on the circumstances, this may involve requesting records, seeking explanations from the former strata manager, obtaining independent advice or taking other appropriate steps.

The important point is that these enquiries are generally directed to the parties involved in the original decisions, rather than expecting a new manager to reconstruct events they did not witness.

🤝 A Successful Transition Benefits Everyone

The smoothest management transitions occur when outstanding issues are addressed before handover.

That might include:

• resolving outstanding financial queries;

• confirming contractor invoices;

• ensuring records are complete;

• finalising disputed payments;

• obtaining copies of key documents.

Doing so allows the incoming manager to begin with a clean foundation rather than inheriting unresolved disputes that pre-date their appointment.

🏗️ Looking Forward

Changing strata managers should be viewed as an opportunity to improve governance, communication and service—not simply to revisit every historical decision.

An incoming strata manager's role is to:

✅ establish sound financial controls;

✅ implement effective governance;

✅ ensure legislative compliance;

✅ coordinate maintenance;

✅ provide transparent communication; and

✅ support the Council of Owners in making informed decisions for the future.

While understanding the past is important, the greatest value a new strata manager can provide is helping the Strata Company move forward with confidence.

Final Thoughts

When appointing a new strata manager, think of it like changing accountants or solicitors. They can certainly help you understand where you are today and advise on the best way forward, but they cannot reasonably be expected to account for every decision made by their predecessor.

If there are concerns about historical finances, payments or contractor work, it is in the Strata Company's best interests to raise those matters before the management transition wherever possible. That gives everyone the best opportunity to resolve outstanding issues and allows the incoming manager to focus on what they were appointed to do: manage the scheme well from day one.