Renewing Your Strata Management Agreement: A Signature Should Be the Final Step
Before renewing a NSW strata management agreement, ask whether the services, fees and delegated authority still suit your scheme.
There is a conversation many strata managers know well. The existing agreement is approaching expiry. The manager sends the paperwork. The committee asks whether it really needs to read everything again.
The agreement sets out what the Owners Corporation receives, what it pays, which powers it delegates and how either party can end the arrangement. Does it still suit the building and the service owners expect over the next term?
Five questions before renewal
- What work is included? Compare the fixed services with any separate charges for meetings, projects, insurance administration, claims, extraordinary work, technology, records and disbursements.
- Who will manage the scheme? Ask about the nominated staff, response expectations, escalation and who will handle the work when the manager is away.
- What changes financially? Check the annual fee, GST, increases, extra fees, insurance remuneration and supplier relationships. Estimate what those items could cost your scheme.
- What authority will the agent have? Check delegations, spending limits, repairs and insurance functions, and identify decisions reserved to the Owners Corporation.
- How long is the appointment, and how can it end? Check the expiry date, notice requirements and termination provisions. Section 50 generally limits an appointment at the first AGM to 12 months and other appointments to three years. The agent must give written expiry notice three to six months before the term ends. Check the statutory conditions before relying on any short extension.
A renewal should be a service review
The committee can review the service, discuss changes, compare proposals and make a recommendation. Under sections 49 and 50 of the Strata Schemes Management Act 2015 (NSW), the Owners Corporation appoints or reappoints the strata managing agent by resolution at a general meeting. The appointment must be in writing. Record the resolution and check that the final agreement reflects what was authorised before signing.
From 17 November 2026, agents must keep agency agreements electronically for the term of the agreement and for three years after it ends. This applies to strata agency agreements entered into on or after that date and earlier agreements amended on or after that date.
General educational information. Check the scheme’s agreement, the law in force and any applicable transitional provisions for the decision at hand.
Service expectations belong in the agreement
A renewal is a chance for both sides to discuss how the service has worked, what the building needs next and how much that work is likely to cost.
Before the meeting, put the current agreement and the proposal side by side. Mark changes in services, fees, delegations, expiry and exit terms so owners can see what they are being asked to approve.
STRATA IQ takeawayUnderstanding the agreement comes first. The signature should be the final step.
Turn the explanation into practice.
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