Australia's strata title system is facing a growing challenge as an increasing number of apartment owners opt to manage their properties themselves, citing concerns over high fees and inadequate service from commercial managers. In recent years, around 40% of complexes have turned to self-management, although this trend often goes unreported.
Smaller strata complexes with fewer than 100 units are driving the shift, as they are not legally required to employ professional management companies. However, it's common for these companies to manage even smaller properties, leading to higher fees and a lack of transparency in maintenance funds.
In one notable example, a Melbourne apartment building struggled with a leaking roof, only to discover there were insufficient funds in the owners' corporation account. This experience prompted owners to take control of their property's management, highlighting the benefits of self-management in addressing specific issues such as neglected repairs and transparency in maintenance costs.
The Strata Owners Alliance, established in 2019, is one of several advocacy groups supporting property owners in this transition. By sharing knowledge and advice, these organisations aim to empower owners to understand their rights and take on the responsibilities of self-managing their buildings. Critics argue that commercial managers often operate with an "arrogance" and neglect their role as employees of the owners.
The trend in Australia has global implications, particularly for UK households and businesses managing leasehold properties or shared commercial spaces. As property owners seek greater control over costs and maintenance, lessons can be drawn from this movement towards direct oversight and accountability in property services.