How Do I Change Body Corporate Managers? (Step-by-Step)

This question comes up more than any other when I talk to committees. Usually it is not because they want to change; it is because they are not sure what a change actually involves and it feels too risky to start.

The short answer is that it is less risky than most committees think, as long as the process is done in the right order. Here is what that looks like in practice.

Step 1: Committee resolution to test the market

The starting point is not “we are firing the manager”. It is “we are testing the market”. The committee records a resolution that it will request fresh proposals and compare them against the current arrangement.

This framing matters. It keeps the committee’s options open, it is governance-appropriate, and it does not burn the bridge with the incumbent in case the outcome is “renegotiated terms with current manager”.

Step 2: Read the current agreement

Before anything else, the committee needs to understand where the current contract sits. Three things matter most:

• The end date and any auto-renewal terms. If the contract rolls over unless notice is given, the committee needs to know the notice window.
• Termination rights. What can the committee actually do mid-term? Many modern agreements include termination-for-convenience on notice. Older agreements can be tighter.
• Handover obligations. What the outgoing manager has to deliver, and how long they have.

This is the step most commonly skipped. It is also the step that creates the most pain when it is skipped, because the committee discovers at week three that the contract has two more years to run with no termination clause.

Step 3: Shortlist managers to approach

Two or three is the sweet spot. Any more and the committee is doing work it will not use; any fewer and there is no real comparison.

Look for managers who:

• Operate in your region
• Service schemes your size
• Hold current professional indemnity insurance
• In NSW, hold a current strata management licence; in QLD, can demonstrate BCCM Act compliance and proper trust account arrangements
• Have committee references from schemes similar to yours

Three established and trusted partners through BCGC is one way to do this without the committee having to vet each firm from scratch. Self-sourcing is fine too; the discipline is the same.

Step 4: Compare proposals properly

This is where committees most often go wrong. The temptation is to line up the front-page fees and pick the lowest. Proposals almost never compare like-for-like at that level.

Build a simple side-by-side on:

• Base fee inclusions (what is in the fee)
• Separately charged items (what is on top)
• Meeting attendance (AGMs, EGMs, committee meetings)
• Service level commitments (response times in writing)
• Software and owner portal features
• Agreement term, renewal terms, and termination rights
• Trust account arrangements and any commissions received on insurance or other placements

The committees who got the best outcomes during my time in the industry did this work. The ones who picked on headline fee alone commonly discovered in month three that the “cheap” provider was charging for everything the previous provider included.

Step 5: Negotiate

Most managers will adjust two or three items. Common moves:

• Roll one or two “extras” into the base fee
• Confirm service level commitments in writing
• Shorten the agreement term (gives the committee more flexibility later)
• Strengthen termination rights

What they rarely move on is the base fee itself. Push on scope and terms rather than on discount.

Step 6: Draft the motion

The motion to appoint the new manager is what actually effects the change. It needs to include:

• The name of the incoming manager
• The proposed agreement (attached or summarised)
• Term
• Fee schedule
• Handover date

In Queensland, appointment is by ordinary resolution at a general meeting under the applicable regulation module. In New South Wales, appointment is by ordinary resolution of the owners corporation at a general meeting.

Support the motion with a short cover note explaining what the committee considered, which options were compared, and why the committee is recommending the change. Owners are far more likely to vote in favour of a well-explained motion than a bare one.

Step 7: General meeting and vote

Notice periods are set by the relevant legislation or regulation module, but 21 days’ notice for an AGM is typical, and EGMs are similar.

If the motion passes, the committee can sign the new agreement and begin the handover. If it fails, the committee regroups, usually with feedback from owners about what concerned them.

Step 8: Handover

This is where delays most often happen. The outgoing manager is obliged to transfer records, trust account balances, software access, and physical keys or fobs within the handover period set by the outgoing agreement. Forty-five days is common.

A good incoming manager runs a structured handover checklist. A less experienced one may need chasing. Build the handover date into the motion and hold both parties to it.

Timeline

A clean change typically runs four to eight weeks from committee resolution to first levy notice under the new manager. Breakdown:

• Week 1. Resolution. Proposal requests issued.
• Weeks 2 to 3. Proposals arrive. Committee compares.
• Week 3 to 4. Preferred provider selected. Terms negotiated.
• Weeks 4 to 7. Notice period. General meeting. Vote.
• Weeks 7 to 8+. Handover.

It runs longer if the AGM is further out (an EGM may be faster), if the current agreement is tight, or if handover stalls.

The most common mistakes

Five I have watched play out repeatedly.

1. Not reading the existing agreement. Creates surprises at the worst moment.
2. Only getting one proposal. Not a comparison.
3. Focusing on headline fee. Rarely tells the full story.
4. Skipping reference calls. Fifteen minutes with a similar committee is the best due diligence available.
5. A vague motion. Owners vote down what they do not understand.

QLD vs NSW

The process is fundamentally the same. Key differences are in terminology (body corporate committee vs strata committee; sinking fund vs capital works fund), licensing (NSW managers must be licensed, QLD managers operate under the BCCM Act without a separate occupational licence), and regulator (Commissioner/QCAT in QLD; NSW Fair Trading/NCAT in NSW).

For the full state-by-state comparison, see changing body corporate managers.

If your committee is ready to compare

Three established and trusted partners, side-by-side proposals, free for committees and owners corporations. Takes about three minutes.

Request proposals

Related reading

• Changing Body Corporate Managers (pillar)
• Strata Managers and Changing Providers FAQ

---

Written by: Jeff Blaszkowski, Founder, Body Corporate Gold Coast
Background: 20+ years in business development, including 12+ years in QLD strata (Accor, Smarter Communities, Bright & Duggan). Strata owner. Not a licensed strata manager.

General information only. Not legal advice. For advice on your current agreement or proposed change, consult a qualified strata professional or lawyer.