The Market Gap Nobody Is Talking About
Compulsory strata management appointments in NSW are no longer rare exceptions – they’re becoming a necessary solution for dysfunctional or deadlocked owners corporations. And here’s what I’m seeing: Bettr Strata is being sought out more and more as the preferred compulsory strata managing agent.
The Reality Behind Compulsory Appointments
Too often, compulsory strata management appointments are viewed as a revenue opportunity rather than the privileged responsibility they truly are. The focus for many in the industry isn’t on restoring governance or improving the health of a strata scheme – it’s on margin.
The truth is most strata managing agents (not all) in my experience simply don’t have the capacity to handle these appointments. Many of my colleagues are burdened with unmanageable portfolios, and in some cases, the decision-makers overseeing these appointments lack any real strata management experience, especially when it comes to a compulsory strata managing agent appointment. Instead of recognising the complexity and challenge involved, the conversation becomes:
“How do we maximise management fees and EBITDA?”
rather than:
“Who is the best strata manager to turn this scheme around and retain this client for the long term?”
At Bettr Strata, we take the opposite view. A compulsory appointment is not a quick win – it’s a mandate to lead, stabilise, and rebuild trust. That’s why we specialise in this space.
How to Spot a Strata Scheme Heading for a Section 237 Order
Owners and committee members often ask: “How do we know if our scheme is at risk of compulsory management?” Here are the common warning signs:
(1) Deadlocked decision-making: Meetings repeatedly fail to reach resolutions, or factions prevent progress.
(2) Failure to maintain common property: Long-term neglect of repairs or safety compliance breaches.
(3) Financial dysfunction: Levies not raised or collected, unpaid invoices, or judgment debts.
(4) Non-compliance with NCAT or statutory orders: Ignoring previous tribunal directions or obligations under the Act.
(5) Persistent breaches of duties: Failure to insure the building, hold AGMs, or comply with Section 106 maintenance obligations.
(6) Escalating disputes: Bitter or litigious conflicts between owners, sometimes physical, making governance impossible.
If these issues sound familiar, your scheme may be on the path to a Section 237 compulsory appointment.
What Does a Compulsory Appointment Mean for an Owners Corporation?
When NCAT makes an order under Section 237, it transfers some or all of the owners corporation’s powers to a licensed strata managing agent for a fixed term (often 12–24 months). This means:
(1) Loss of democratic control: Owners cannot make decisions at general meetings – the appointed manager does.
(2) Manager can assume full authority: They can raise levies, approve repairs, appoint contractors, and even initiate legal proceedings.
(3) Strict compliance focus: The manager’s role is to stabilise governance, restore financial health, and ensure statutory obligations are met.
(4) Temporary but significant: Orders are described as “draconian” because they override owners’ rights, but they aim to return the scheme to normal functioning as quickly as possible.
The Legal Basis: Section 237 of the Act
Compulsory strata management appointments aren’t arbitrary; they’re governed by Section 237 of the Strata Schemes Management Act 2015 (NSW). Under this section, NCAT can appoint a strata managing agent to exercise all or some of the functions of an owners corporation when:
(a) The management of a strata scheme is not functioning or not functioning satisfactorily
(b) The owners corporation has failed to comply with an order under the Act
(c) The owners corporation has failed to perform one or more of its duties
(d) The owners corporation owes a judgment debt
The Tribunal can also grant the appointed manager the powers of the chairperson, secretary, treasurer, or strata committee. This is a significant intervention, often described as “draconian”, because it removes the democratic decision-making process and vests authority in the appointed manager for the term specified in the order.
Why My Experience Matters in This Space
I’ve spent more than two decades leading teams, managing compliance under strict regulatory frameworks, and turning around complex operations. That experience taught me how to act decisively under pressure, restore governance, and rebuild trust.
When I launched Bettr Strata, I made a deliberate choice: we wouldn’t just manage strata plans – we’d specialise in compulsory appointments. Why? Because these cases need a manager who understands the law, the urgency, and the human element behind every dispute.
What Makes Bettr Strata Different
A compulsory appointment isn’t just about collecting levies or arranging maintenance. It’s a court-ordered NCAT appointment with strict timelines, reporting obligations, and heightened scrutiny. To do this well, you need:
(1) Deep knowledge of the Strata Schemes Management Act 2015 (SSMA 2015)
(2) Experience navigating NCAT orders and compliance frameworks
(3) Strong governance and conflict resolution skills
We’ve built systems specifically for these situations, transparent reporting for lawyers and owners corporations, and a clear roadmap to stabilise the scheme quickly.
Case Study: From Chaos to Community
One of the most challenging compulsory appointments I’ve ever managed involved an owners corporation split into two warring factions (80+ lot scheme). It was like a real-life Game of Thrones – ugly, messy, and at times even physical on site. This was the worst example of a strata community I had ever seen.
When I stepped in under NCAT orders for a 24-month appointment, I copped a lot of heat early on. Every decision was scrutinised, every action questioned. But I knew the only way forward was to demonstrate progress and restore governance. Slowly, things began to change. Financial systems were stabilised, compliance was restored, and tensions started to simmer down.
Eventually, the “weapons” were put down – figuratively, of course. To mark the turning point, I invited all owners to a BBQ lunch before a General Meeting where we literally broke bread together. That meeting wasn’t just about handing back the keys to the owners corporation, it was about handing back trust.
We retained our appointment for a full three-year term, and by the end, the scheme was thriving. I don’t manage that building anymore – it was from a past life – but to this day, I bump into members of that owners corporation who remain some of my biggest supporters. They still thank me for bringing order to chaos.
Why Lawyers and Owners Corporations Seek Us Out
Legal professionals know that appointing the wrong strata manager can prolong litigation and increase risk. Bettr Strata is trusted because:
(1) We’re ready to accept NCAT compulsory appointments immediately
(2) We provide clear, transparent reporting for courts and stakeholders
(3) We have a proven track record in turning around distressed schemes
The Rising Demand
With more disputes and governance failures, NCAT is issuing compulsory appointments at a growing rate. Owners corporations and lawyers need a partner who can step in and deliver – not just manage, but lead.
Your Next Step
If you’re a lawyer looking for a strata manager who understands the complexity of NCAT appointments – or an owners corporation facing governance failure – Bettr Strata is here to help.
✅ Contact me today to discuss how we can restore compliance and stability.
📧 jm@bettrstrata.com.au | 📞 02 4217 5588
Yours in strata,
JM