In summary
- Self-managing an owners corporation is completely legal in Victoria, and plenty of owners run their schemes well, particularly in smaller buildings where the workload may be lighter.
- An owners corporation is a legal entity with real obligations under the Owners Corporations Act 2006, covering record-keeping, financial management, insurance, maintenance and fee collection.
- One of the strengths of a self-managed OC is that personal relationships and shared responsibilities can foster greater accountability and support decision making. However these same factors can give rise to difficulties when personal interests, expectations or emotions influence decisions that should be made in the interest of the collective. Many owners who have tried self-management appoint a professional to take the personal element out of the equation, and find the convenience well worth it.
Across Victoria, a growing number of people live in apartments, units and townhouses governed by an owners corporation. Many of those owners corporations are self-managed, run by the owners themselves rather than an appointed professional. That is a perfectly valid choice, and for many communities it can work well.
The goal here is a clear-eyed look at what the role involves, so your owners corporation can make the choice that suits best.
Self-management is legal, and it suits some communities well
There is no rule that says an owners corporation must appoint a professional manager. Smaller schemes in particular, such as a block of a few units with straightforward shared spaces, are often managed comfortably by the owners themselves. Retirees and others with the time and interest frequently enjoy the involvement and are happy to handle the administration.
For these communities, self-management can be a sensible arrangement.
An owners corporation is a legal entity with real duties
Here is the part that catches some owners by surprise. An owners corporation carries the status of a legal entity in its own right. It is made up of all the lot owners, with defined obligations under the Owners Corporations Act 2006 and the Owners Corporations Regulations 2018.
Those obligations include keeping proper records (a register, meeting minutes and financial records), managing the finances, arranging the required strata insurance, maintaining and repairing common property, holding meetings where needed, and setting and collecting fees to fund it all. The larger and more complex the scheme, the more involved these duties become.
These duties apply whoever manages the owners corporation, and the responsibility for administering the requirements sit squarely with them.
Where self-management can become harder
Everything can run smoothly for a long time, and when friction appears it often has more to do with the relationships and personalities involved than the tasks themselves. There are a few common pressure points .
- Staying independent when it is your neighbour. Acting for the whole owners corporation is difficult when the owner behind on fees is the neighbour you see every morning, and harder still if you have fallen behind yourself.
- Keeping records and systems in order. Professional managers rely on established systems for minutes, registers and financial statements, and without them, gaps in the records can cause real problems when a lot is sold or a dispute arises.
- Handling confidentiality. When every owner helps run the scheme, sensitive information about who owes what and who has requested what is shared among neighbours, and keeping it appropriately private is not always simple.
- Managing risk. Strata insurance, safety obligations and maintenance all need to be understood and kept current, because a missed renewal or an overlooked repair can expose the whole owners corporation.
- Finding the time. Administration, meetings, chasing quotes and coordinating trades all take time. Some owners welcome the opportunity to be actively involved, while others may not have the capacity or desire to taken on these additional tasks.
- Collecting overdue levies. Chasing unpaid fees is one of the least comfortable tasks in any owners corporation, and it is far harder when the person asking and the person owing are neighbours.
Why many owners choose to bring in a professional
For these reasons, many owners who have tried self-management decide to appoint a professional manager. The appeal makes sense: an independent, trained expert who applies the same rules to everyone, keeps the records in order, manages the money, stays on top of insurance and compliance, and takes the personal element out of the difficult conversations.
That independence is often the deciding factor. When a request for overdue fees comes from a neutral third party rather than the neighbour across the hall, relationships within the community are far easier to preserve. Plenty of owners are happy to pay for that convenience and the peace of mind that comes with it.
How MBCM can help
At MBCM Strata Specialists, our purpose is to help strata communities thrive through proactive management and clear, practical support. Our managers are qualified, registered with the Business Licensing Authority and proud members of the Strata Community Association, and because every branch is locally owned and operated, you work with someone who understands both the legislation and your community.
If your owners corporation is weighing up whether self-management is still the right fit, that is a conversation worth having. Find your local MBCM branch and we would be glad to talk it through.
FAQs
Is it legal to self-manage an owners corporation in Victoria?
Yes. There is no requirement to appoint a professional manager. An owners corporation can be managed by its own lot owners, provided it still meets its obligations under the Owners Corporations Act 2006.
What obligations does a self-managed owners corporation still have?
The same core obligations as any owners corporation: keeping accurate records, managing finances, arranging the required insurance, maintaining common property, holding meetings where required, and setting and collecting fees. These duties scale with the size and complexity of the scheme.
Why do owners move from self-management to a professional manager?
Common reasons include the time involved, the challenge of staying independent when chasing fees from neighbours, keeping records and insurance current, and handling confidentiality. A professional manager applies consistent rules and removes the personal element from difficult conversations.
Is self-management cheaper than appointing a manager?
It can avoid a management fee, though the owners take on the workload and the responsibility themselves. Many decide the convenience, systems and independence a professional provides are worth the investment, particularly as the building ages.
How do we know if professional management is right for our building?
It depends on the size of your scheme, the complexity of the common property, and how much time and confidence the owners have. A local strata manager can help you weigh it up.
Glossary of terms
Owners corporation
The legal body made up of all lot owners in a subdivision, responsible for managing and maintaining common property and meeting its obligations under the Owners Corporations Act 2006. (Formerly known as a body corporate.)
Self-managed owners corporation
An owners corporation managed by its own lot owners rather than an appointed professional strata manager.
Lot owner
A person who owns a lot, such as an apartment, unit or townhouse, within an owners corporation, with both rights and responsibilities under the Owners Corporations Act 2006.
Common property
The shared areas of a property, such as driveways, gardens, hallways, lifts and external walls, that the owners corporation is responsible for maintaining.
Fees (levies)
Contributions paid by lot owners to fund the owners corporation’s expenses, including maintenance, insurance and administration.
Owners Corporations Act 2006
The principal Victorian legislation governing how owners corporations are managed and run, including records, finances, insurance, meetings, rules and dispute resolution.
Register
The official record an owners corporation must keep, containing key information such as lot owners’ details, insurance and financial records.