Navigating Melbourne’s Strata Management Maze

a man holding a tiny home in his hands
Strata management might sound like a complex term, but it’s essential to understand it if you’re a property owner, resident, or investor in Melbourne. In this article, we’ll unravel the intricacies of strata management, using simple language that makes it accessible to everyone. From the role of strata management companies to common property and dispute resolution, we’ll guide you.

What Is Strata Management?

Strata management refers to the management of shared property. It’s like taking care of a big puzzle where each piece is owned by different individuals. In Melbourne, this is common in apartments, townhouses, and shared communities. The goal is to ensure the property is well-maintained and that everyone follows the rules.

Strata Management Companies

Function and Importance

Strata management companies in Melbourne play a pivotal role in the effective governance of shared properties. Their functions and importance are multifaceted, serving the best interests of property owners, residents, and investors. Let’s delve into what makes these companies so crucial:

  1. Property Maintenance

Function: Strata management companies oversee the maintenance of common areas within the property. This includes everything from cleaning communal spaces to ensuring landscaping is in top condition.

Importance: Well-maintained common areas enhance the overall property value and resident satisfaction. Strata managers ensure that the property remains in pristine condition, attracting potential buyers or renters.


  1. Financial Management

Function: Strata management companies handle the financial aspects of property governance. They collect levies from property owners and create budgets to cover expenses.

Importance: Proper financial management ensures that funds are allocated appropriately for ongoing maintenance and emergency repairs. It also prevents financial mismanagement, which can lead to disputes among residents.


  1. Administrative Support

Function: Strata managers provide administrative support by organizing and overseeing strata meetings, maintaining records, and ensuring that all necessary paperwork is in order.

Importance: This administrative support streamlines the decision-making process and ensures that the property adheres to all legal requirements. It also makes it easier for residents to participate in property governance.


  1. Rule Enforcement

Function: Strata management companies are responsible for enforcing the by-laws and rules that govern the property. They address any violations and work to resolve disputes.

Importance: Consistent rule enforcement maintains order and harmony within the property, preventing conflicts from escalating and preserving a positive living environment.


  1. Conflict Resolution

Function: Strata managers are mediators in case of conflicts among property owners and residents. They aim to find amicable solutions to disputes and disagreements.

Importance: Timely and fair conflict resolution ensures that the property remains a peaceful and harmonious place to live, fostering a sense of community among residents.


  1. Legal Compliance

Function: Strata management companies keep the property in compliance with local and state laws, ensuring that all regulations are followed.

Importance: Staying legally compliant not only avoids potential fines but also protects the interests of all property owners and residents. It’s essential for maintaining the property’s reputation and value.


The Strata Committee

The strata committee, often referred to as the “body corporate committee,” is the governing body within a strata property. Here’s an overview of how these committees are formed, how they operate, and their significance:


The strata committee is typically formed at the annual general meeting (AGM) of the property. Property owners and residents volunteer or nominate themselves to serve on the committee. The number of committee members and the nomination process are outlined in the property’s by-laws.


The strata committee operates as a decision-making body, responsible for various tasks:

  • Approving budgets: They review and approve budgets for the property, including funds for maintenance, repairs, and other expenses.
  • Rule changes: The committee may propose changes to existing by-laws and rules, which usually require approval from property owners.
  • Emergency decisions: In urgent situations, the committee can make immediate decisions to protect the property’s interests, which are later ratified by the property owners.
  • Dispute resolution: The committee often plays a role in resolving disputes among residents, aiming to find fair and reasonable solutions.
  • Hiring professionals: They may hire strata managers, maintenance contractors, or legal counsel on behalf of the property.

Significance of Community Participation

Community participation in the strata committee is crucial for several reasons:

  • Representation: The committee represents the diverse interests of property owners and residents, ensuring that all voices are heard.
  • Transparency: It promotes transparency in decision-making, as committee members are accountable to the community.
  • Community building: Participation fosters a sense of community within the property, encouraging collaboration and shared responsibility.

Eureka tower and other buildings in a park in Melbourne CBD

Strata Management Regulations

Strata management in Melbourne operates within a framework of regulations and by-laws designed to maintain order and fairness within shared properties. Here’s a closer look at these governing rules:

  1. Owners Corporation Act: The Owners Corporation Act 2006 forms the cornerstone of strata management regulations in Melbourne. It outlines the responsibilities and powers of owners’ corporations, including their ability to make and enforce rules for the property.
  1. Owners Corporation Rules: Each strata property typically has its own set of owners corporation rules, which are essentially by-laws that govern the specific property. These rules cover matters such as pet policies, smoking restrictions, and use of common areas. They can be created, amended, or repealed at general meetings.
  1. Legal Compliance: Strata management companies and strata committees must ensure that the property adheres to all relevant legal requirements. This includes compliance with local building codes, fire safety regulations, and zoning laws. Failure to comply can result in fines and legal consequences.

Meetings and Decision-Making

Strata meetings are the pulse of property governance in Melbourne. They provide a platform for owners and residents to come together and make collective decisions. Here’s an overview of how these meetings work:

Types of Meetings

  • Annual General Meeting (AGM): Held once a year, the AGM is a crucial event where property owners and residents discuss and approve budgets, elect committee members, and review the property’s financial status.
  • Special General Meeting (SGM): SGMs are called when urgent matters require attention outside of the AGM schedule. They may involve discussing and voting on specific issues, such as rule changes or emergencies.
  • Ordinary General Meeting: These are held as needed to address routine property matters, from maintenance proposals to administrative updates.


The frequency of strata meetings varies depending on the property’s needs and by-laws. However, AGMs are held annually as required by law. SGMs can be called whenever necessary, while ordinary general meetings are scheduled as property matters arise.

Decision-Making Procedures

Effective property governance relies on structured decision-making procedures during strata meetings:

  • Notice of Meeting: Notices are sent out well in advance, outlining the agenda and providing details of the meeting’s date, time, and location.
  • Quorum: A minimum number of attendees (quorum) is required to conduct official business. Quorum rules are usually outlined in the property’s by-laws.
  • Voting: Decisions are made through voting, with each property owner typically having one vote. In some cases, the by-laws may permit multiple votes based on property share or lot entitlement.
  • Minutes: Accurate minutes are kept during meetings, documenting discussions, decisions, and action items. These minutes are typically made available to all property owners and residents.

Dispute Resolution

Disputes can arise in any community, and strata management is no exception. It’s essential to have mechanisms in place to resolve conflicts effectively and maintain a harmonious living environment. Here’s how it’s done:

  1. Open Communication: Open, honest, and respectful communication is the foundation of effective conflict resolution. Parties involved in a dispute should be encouraged to express their concerns and grievances.
  1. Mediation: Mediation involves a neutral third party facilitating a conversation between the parties in conflict. It can be an effective way to find mutually agreeable solutions.
  1. Dispute Resolution Services: Many strata management companies in Melbourne offer dispute resolution services. These services can help mediate and resolve conflicts without resorting to legal action.
  1. Legal Action: In cases where disputes cannot be resolved through mediation or other means, legal action may be necessary. It’s crucial to follow the legal procedures outlined in the Owners Corporation Act and by-laws when taking this route.

Financial Aspects

Understanding the financial aspects of strata management is essential for maintaining the property and ensuring its long-term sustainability. Here’s what you need to know:

  1. Levies: Property owners are required to pay regular levies. These levies are the primary source of funds for the property’s expenses, including maintenance, insurance, and administrative costs. The amount each owner pays is typically determined by the property’s by-laws and is based on the size and value of their property.
  1. Budgets: Strata management companies, in collaboration with the strata committee, prepare annual budgets that outline expected expenses and income for the property. Property owners and residents review and approve these budgets during the AGM. It’s essential to ensure that budgets are balanced and that there are adequate funds for maintenance and unexpected expenses.
  1. Financial Planning: Financial planning involves setting aside funds for long-term maintenance and improvements. Adequate financial planning ensures that the property can address major repairs, renovations, or upgrades without putting a strain on owners’ finances. It’s a proactive approach to preserving property value and quality of life for residents.

Final thoughts

Understanding strata management in Melbourne empowers property owners, residents, and investors. It enables active participation in property governance, conflict resolution, and contributes to the well-being of shared communities. If you’re looking for a trusted partner in body corporate and strata management in Melbourne, consider Keystone Strata Group. Their expertise and client-centric approach can help you navigate the strata management maze with ease.


Please call us today on (03) 9007 2235 to learn more.