A strata scheme can hire a building manager, also known as a caretaker or resident manager, to help with the day-to-day running of the building. They can assist the owners corporation with:
- the management of common property,
- controlling the use of common property by tradespersons and other non-residents, and
- the maintenance and repair of common property
- duties such as concierge, security and cleaning.
Building managers cannot enforce by-laws or have similar functions of the owners corporation. This is not a voluntary or casual position.
If the building manager also acts as an on-site residential property manager, they need to be licensed under the Property, Stock and Business Agents Act 2002.
Building managers contracts or agreements
A building manager can be appointed in writing before or after the strata scheme begins.
Before appointment, building managers must disclose:
- if the person is connected with the original owner
- any direct or indirect monetary interest in the strata scheme
If the an agreement is made between the original owner and the building manager during the initial period, the agreement ends at the first Annual General Meeting (AGM). At the first AGM, a new building manager can be hired or transferred to another person.
A building manager agreement is limited to 10 years, but it can be renewed. An agreement can be terminated if voted at a general meeting of the owners corporation.
Resolving building manager disputes
Only an owners corporation can apply to the NSW Civil and Administrative Tribunal to resolve a dispute with a building manager. The Tribunal can:
- terminate an agreement
- require payment of compensation by a party to the agreement
- change, confirm or declare invalid the terms and conditions of the agreement
- dismiss the application.
The Tribunal can terminate an agreement due to:
- the building manager's unsatisfactory performance under the agreement
- unfairness of charges paid
- the agreement is harsh, oppressive, unconscionable or unreasonable.
- the building manager fails to disclose an interest.
Providing the contract
A copy of the building manager's agreement must be available to the owners corporation at all times .
Using proxy votes
A building manager cannot use a proxy vote:
- for the purpose of extending the term of their appointment, or
- to increase their remuneration or in a decision about legal proceedings involving the proxy.