In summary
- Transparency in an owners corporation isn’t about the volume of information shared. It’s ultimately whether owners understand what is happening, why, and how decisions are made.
- Clear communication can prevent disputes, produce better-informed owners, and build confidence through difficult decisions such as special levies, defect works and increased insurance premiums.
- Victoria’s currently proposed owners corporation reforms place transparency and accountability front and centre, and the committees that already communicate openly may be the ones best placed for what comes next.
What transparency really means
Many owners believe transparent communication means being copied into every email, receiving every document, or being consulted on every minor decision. In practice, transparency has little to do with the volume of information and everything to do with whether owners have what they need to understand what is happening, why it is happening, and how decisions are being made.
In an owners corporation (OC), uncertainty often causes more frustration than the issue itself. Owners are generally willing to accept a special levy, a maintenance delay, a compliance obligation or an unexpected cost when they understand the reasons behind it. The same decision can attract criticism when the communication around it is late, incomplete or unclear.
Transparent communication builds trust because it removes doubt. It helps owners see how their committee is acting, how their strata manager is supporting the scheme, and how decisions line up with the owners corporation’s legal and financial obligations. It also counters the perception that decisions are being made without consultation.
In practice, transparency is often achieved through processes that owners may encounter every day. Meeting agendas notify owners of matters to be discussed, giving them an opportunity to attend and participate in the conversation. Minutes record decisions made, and provide insight into the issues considered. Budget papers, levy notices and committee updates help explain not only what decisions have been made, but why they were considered necessary.
These communication tools are designed to help owners stay informed and participate in the management of their community.
Clear & timely communication reduces conflict before it starts
A large share of strata disputes begin as misunderstandings, rather than any wrongdoing. An owner who does not know why a levy has arisen, or why a repair is taking time, will often assume the worst. Explaining the reasoning up front tends to prevent the complaint from forming at all.
In practice, this may involve providing advance notice of major works, explaining the reasons for a special levy, or keeping owners informed when repairs or maintenance work is delayed due to factors outside the committee’s control. Owners may not always agree with the outcome, but they are more likely to accept it when they understand how and why the decision was made.
It also changes the tone of the concerns that do arise. An owner who starts from a position of understanding usually approaches the conversation constructively rather than as a fight. Clear communication is one of the cheapest and most effective forms of dispute prevention an OC and its committee have.
Informed owners make better decisions
Better-informed owners ask better questions and make better decisions. When people understand the financial position of their building, the state of its maintenance plan and factors influencing a proposal, they can take part in governance meaningfully rather than reacting after the fact.
In practice, owners are provided with financial statements and budget forecasts that help explain how funds are being managed, the financial position of the owners corporation and future expenditure requirements. Like any significant asset, understanding this information helps owners make informed decisions and participate more effectively in the governance of their community. Where an owner does not understand the information provided, seeking clarification or professional advice can be an important step in protecting and managing that investment.
It also improves participation, because owners who feel informed are more likely to vote and attend meetings, which makes quorums easier to reach and outcomes more representative of the whole scheme. This kind of engagement lifts the quality of decisions across the building.
Knowledge builds confidence during difficult decisions
The value of open communication is clearest when the news is hard. Special levies, defect rectification projects, insurance increases and legislative change are all easier to navigate when owners can see the reasoning.
In practice, major decisions such as special levies, significant repair projects, insurance increases or compliance related works are often accompanied by explanatory information outlining the issue. Minutes of meetings, ballots and general correspondence can provide owners with insight into the options considered and, where appropriate, the reasons behind a recommended course of action. While owners may not always welcome the outcome, understanding how the decision was reached can provide confidence that the matter has been appropriately considered.
A committee that clearly explains the issue, the options considered and the reasons for its decision will usually carry owners with it, even when the outcome is unwelcome. Confidence comes from the process as much as the result.
Good records support accountability
Open communication makes accountability possible. When everyone can see who made a decision, what process was followed and what information was considered, there is little room for doubt about how the scheme is being run. That protects committee members as much as owners, because a well-documented and well-communicated decision is far easier to stand behind. It also makes the handover between committees smoother, as a clear record of past decisions provides valuable context and saves new members from starting over.
In practice, meeting minutes and supporting records document matters considered, decisions made and actions taken by or on behalf of the owners corporation. This creates an important history that helps owners understand how decisions were reached, provides accountability for those involved in the process and gives future committees valuable context when reviewing past decisions or considering similar matters.
From access to understanding
Access gives owners visibility. Understanding helps them interpret what they’re seeing.
Providing information is an important part of open communication, but access alone does not always lead to understanding. Owners may receive reports, notices and other documents that explain what is happening within their owners corporation without fully understanding why it matters or what it means for their building and community.
A twenty-page report, for example, may satisfy a disclosure requirement while leaving owners none the wiser. For genuine understanding, we need to go a step further by helping owners understand the significance of the information being provided and how it relates to their building and community.
In practice, owners have access to a wide range of information about their owners corporation. Understanding the respective roles of the owners corporation, committee and strata manager helps provide context for that information, including who is responsible for making decisions, giving instructions and carrying out actions. It also helps owners understand which matters are legislative obligations, which are proactive risk management measures, and which decisions are matters of preference or good practice. This understanding can help set realistic expectations and reduce misunderstandings.
This distinction now matters more than ever in Victoria. The recent review of the Owners Corporations Act 2006, and the Government’s currently proposed response to it, place transparency and accountability at the centre of the sector’s future, from better record-keeping and easier access to information to clearer rules for managers. The direction of reform simply formalises what good communication already does. Committees and strata managers that communicate openly today are the ones best placed for the standards that are coming.
The real value
Difficult conversations do not disappear simply because information is shared openly. Levies still need to be raised, repairs still need to be funded and legislative obligations still need to be met. What open communication can create, however, is confidence that decisions are being made openly, ethically and in the best interests of the owners corporation.
In strata, trust is built less by the decisions themselves and more by the way those decisions are communicated. When owners understand the reason behind decisions, the process followed and the responsibilities involved, they are better equipped to participate in the governance of their community and support the long-term interests of the scheme.
That is the real value of transparent communication, not simply providing access to information, but creating understanding. It is something a good owners corporation manager brings to every conversation.
How MBCM helps
At MBCM Strata Specialists, clear communication is central to how we work: plain reporting, no hidden charges, and information owners can actually use. Because every branch is locally owned, you get a manager who knows your building, the relevant local council and the relevant legislation, and who can help explain the context behind committee decisions. If your committee wants to strengthen the way it communicates with owners, your local MBCM branch is ready to support you.
FAQs
Does transparency mean sharing every document with owners?
No. Transparency is about understanding rather than volume. The goal is for owners to grasp what is happening and why, which often means clear summaries and context rather than a flood of paperwork.
How does transparent communication reduce disputes?
Most disputes start as misunderstandings. When owners understand the reasons behind a levy, a delay or a decision, complaints are far less likely to form in the first place.
What do the recent Victorian reforms mean for clearer communication?
The review of the Owners Corporations Act 2006 and the Government’s currently proposed response put transparency and accountability at the centre of the sector’s future, with a focus on record-keeping, information access and clearer rules for managers.
How can our committee communicate more transparently?
Explain the reasoning behind decisions, share the options you considered, and keep records and reports accurate and easy for owners to access. A proactive manager can help you build these habits.
Glossary of terms
Owners corporation: The legal body made up of all lot owners in a subdivision, responsible for managing and maintaining common property under the Owners Corporations Act 2006. Formerly known as a body corporate.
Committee: A group of lot owners elected to help run the owners corporation on behalf of all owners. Committee roles are voluntary and unpaid.
Lot owner: A person who owns a lot, such as an apartment, unit or townhouse, within an owners corporation, with rights and responsibilities under the Act.
Special levy: A one-off charge raised by an owners corporation to cover costs beyond the regular budget, such as major or unexpected repairs.
Maintenance plan: A plan mapping out a building’s major maintenance and repair needs over time, helping an owners corporation budget and avoid unexpected special levies.
Owners Corporations Act 2006: The principal Victorian legislation governing how owners corporations are managed, including meetings, finances, rules, maintenance and dispute resolution.