Why Transparency Matters More Than Ever

Transparency, Trust, and Charging Practices in Strata Management

Strata managers hold a position of trust and owe a fiduciary duty to their clients. We manage other people’s money, advise councils of owners on legislative compliance, and are often the first point of contact when disputes arise. That makes transparency — and lawful charging practices — non-negotiable.

Unfortunately, across the industry there are still charging practices that are, at best, questionable and, at worst, unlawful.

Arrears Notices and the Problem with “Convenience Fees”

Most owners will be familiar with the practice of strata managers charging for emailed arrears or late levy notices.

When XO Strata was established, part of our software configuration required us to nominate fees for each stage of debt recovery (first reminder, second reminder, escalation to legal). We made a deliberate decision to set those fees at zero.

Why? Because we do not believe charging for emailed arrears notices is lawful — and in any event, issuing an emailed notice is an automated process that does not incur a genuine cost. It is not, and should not be treated as, a revenue opportunity.

Arrears notices should exist to inform and support owners, not to penalise them or profit from financial stress. Early, respectful communication is far more effective than fee-driven “recovery” processes that often escalate conflict rather than resolve it.

Transparency and lawful charging practices are not optional extras. They are the baseline for ethical strata management.

The Bigger Problem: Normalised Overcharging

Arrears letters are just one symptom of a broader issue within the industry. Other problematic practices include:

• Charging per email or phone call without clear, upfront disclosure

• Invoicing for routine statutory duties already covered by the management fee

• Adding “disbursements” that do not reflect actual costs

• Failing to clearly explain what owners are being charged for — or why

Over time, these practices become normalised, particularly in schemes where councils change regularly or don’t feel confident questioning invoices.

Why This Matters

When owners feel nickel-and-dimed, trust breaks down. That mistrust doesn’t just affect the relationship with the strata manager — it impacts the entire scheme, including:

• Council cohesion

• Willingness to pay levies on time

• Escalation of disputes

• Overall scheme culture

Strata already has a reputation problem. Practices like these only entrench it further.

What Good Practice Looks Like

Ethical strata management is not complicated. Good practice includes:

• Clear, upfront fee schedules

• Charges that comply with legislation

• No surprise invoices — special levies are approved by owners via a strata-wide vote

• Education-based approaches rather than penalty-driven “recovery”

• Councils that understand what they are paying for and why

• Strata managers who do not quietly dip into reserve funds when the administrative fund runs low, but instead notify councils early when funding pressures are emerging

Strata management should never rely on owners not knowing their rights.

Raising the Bar

Industry bodies such as Strata Community Association promote professionalism, accountability, and education — but real change happens when strata managers themselves choose to do better.

Calling out poor practice is not about attacking the industry. It is about protecting it.

Because strata can be better. And it starts with honest, lawful, transparent management.