In summary
- Running a strata scheme without a strata managing agent is entirely lawful in New South Wales, and many small schemes do it well, especially where the common property is simple and the owners have time and interest.
- The owners corporation still carries obligations under the Strata Schemes Management Act 2015 (the Act), from the strata roll and annual Strata Hub reporting to the 10-year capital works fund plan, insurance valuations and, from 1 October 2026, (excluding 2 lot schemes) mandatory training for committee members.
- The hardest part of self-management is rarely the paperwork. It is staying even-handed when the owner behind on levies lives next door, which is why many schemes eventually bring in a licensed professional to take the personal element out of it.
A choice many NSW schemes make
New South Wales has more than 80,000 strata schemes, and a good share of the smaller ones, such as a six-lot apartment building in Marrickville or the pair of townhouses in Ryde, are run by their own owners rather than an appointed agent. Self-management is a legitimate choice, and for the right building and the right people it can be a good one.
However, there are things that you need to be aware of if you do want to go down this path in New South Wales, including where such an approach tends to come under strain, and why some schemes conclude that professional help is worth the fee.
Where self-management works well
Nothing in the Act requires an owners corporation to appoint a strata managing agent. Small schemes with limited common property, a stable group of owner-occupiers and someone willing to act as chairperson, secretary and treasurer often manage comfortably. The legislation recognises this, giving two-lot schemes concessions on some requirements and, from 1 October 2026, relieving them of annual Strata Hub reporting.
In practice, the schemes that self-manage well tend to share a few features: modest shared infrastructure, owners who live on site, a clear division of who does what, and a habit of writing things down.
The obligations do not shrink because there is no formal strata managing agent
This is the part that surprises people. An owners corporation is a legal entity in its own right, and the duties in the Strata Schemes Management Act 2015 apply in full whether or not a professional is involved. Self-management simply means the owners perform them.
In practice, that means keeping the strata roll and records for at least seven years, holding an annual general meeting, budgeting and levying for both the administrative and capital works funds, maintaining a 10-year capital works fund plan, which since 1 April 2026 must follow the NSW Fair Trading standard form, insuring the building for replacement value with a recommended valuation at least every five years and public liability cover of at least $10 million, lodging an annual fire safety statement where required, registering new by-laws, and reporting to the Strata Hub within three months of each AGM. From 1 October 2026, anyone appointed or re-elected to the committee of a strata scheme with more than 2 lots, must also complete the mandatory NSW Fair Trading’s online training within three months or automatically cease to be a member.
Where the strain tends to show
Most self-managed schemes run smoothly for long stretches. When difficulties arise, they usually have more to do with people than procedures. A few pressure points come up repeatedly:
- Staying even-handed with neighbours. The owners corporation must act in the interests of all owners, which is harder when the owner behind on levies shares your driveway or the by-law breach involves a friend.
- Keeping records to a standard others will rely on. Minutes, financial statements, the strata roll and insurance documents are inspected when a lot is sold, when a dispute reaches the Tribunal or when NSW Fair Trading asks. Gaps are hard to explain later, and the 2025 reforms tightened the timeframes for producing records to owners.
- Handling confidential information. Levy arrears, hardship requests and correspondence about individual owners pass through whoever runs the scheme. When that is a neighbour, keeping it private takes discipline or may not be possible in a small scheme with all lot owners acting as committee members
- Managing risk. A lapsed insurance renewal, an old valuation, a missed fire safety statement or a repair left too long can expose every owner, and NSW Fair Trading now has broader powers to act where schemes fall short.
- Finding the hours. Quotes, contractors, notices, meetings, Strata Hub and the capital works fund plan all take time, and enthusiasm at the first Annual General Meeting does not always survive the third year.
- Recovering unpaid levies. Since October 2025, levy notices must include hardship information and payment plan requests must be handled properly before recovery begins. It is a fair process, and a delicate one to run with a neighbour.
Why schemes often turn to a professional
It is usually one of these pressure points, rather than the paperwork, that prompts a scheme to appoint a strata managing agent. In New South Wales agents must be licensed, and the reforms of the past two years have raised the bar further, with tighter disclosure of commissions and connections, six-monthly reporting to the owners corporation and stronger oversight from NSW Fair Trading.
In practice, what owners buy is independence and systems. The levy reminder comes from a neutral party, the records satisfy a buyer’s solicitor or the Tribunal, renewals are diarised and preparation of the capital works fund plan is guided by someone who has done it before. Many schemes find the fee modest against the time saved and the relationships preserved.
How ASM Strata Management helps
Australian Strata Management works with schemes across Sydney suburbs and regional New South Wales, including many that were self-managed before they came to us. Our local teams run the compliance calendar, keep the records in order and take the difficult conversations out of the building. If your owners corporation is weighing up whether self-management still suits, we are happy to talk it through.
FAQs
Is it legal to self-manage a strata scheme in NSW?
Yes. The Strata Schemes Management Act 2015 does not require an owners corporation to appoint a strata managing agent. The owners must still meet every obligation in the Act themselves.
What are the main compliance tasks for a self-managed scheme?
Keeping the strata roll and records, holding an AGM, budgeting and levying for the administrative and capital works funds, maintaining a 10-year capital works fund plan on the standard form, insuring the building with a current valuation, lodging an annual fire safety statement where required, registering and monitoring by-laws and reporting to the Strata Hub each year.
Does the new committee training apply to self-managed schemes?
Yes. From 1 October 2026, anyone appointed or re-elected to a strata committee in NSW must complete NSW Fair Trading’s free online course within three months. Two-lot schemes are exempt from annual Strata Hub reporting and completing the training from the same date..
Is self-management cheaper?
It avoids a management fee, but the owners take on the workload, the compliance risk and the awkward conversations. Many schemes decide the fee is worth it once the building ages, the committee turns over or at the time a difficult situation arises.
How do we decide whether to appoint an agent?
Consider the size of the scheme, the complexity of the common property, how much time and confidence the owners have to take on the OC’s duties, and how the relationships in the building are holding up. A local strata manager can help you weigh it up.
Glossary of terms
Strata scheme: A property of individually owned lots and shared common property, governed in NSW by the Strata Schemes Management Act 2015.
Owners corporation: The collective body of all lot owners in a strata scheme, responsible for the common property, the scheme’s funds and its legal obligations.
Self-managed scheme: A strata scheme run by its own owners, through the strata committee and office bearers, without an appointed strata managing agent.
Strata managing agent: A professional licensed under the Property and Stock Agents Act 2002 and appointed by the owners corporation to carry out its functions.
Strata roll: The register the owners corporation must keep of lot owners, their contact details and other prescribed information.
Capital works fund: The fund set aside for major or long-term works, guided by the scheme’s 10-year capital works fund plan.
Strata Hub: The NSW Government’s online portal where every strata scheme must report key information annually within three months of its AGM.