What Happens to My Levies If I Change Strata Managers?

Key Takeaways:

• Levies remain with the owners corporation and are unaffected by a change in management.
• The incoming strata manager assumes financial administration without interrupting existing funds.
• Transitioning to a new manager can enhance the management and transparency of levy funds.

Changing strata managers can feel like a significant step and it often raises important questions. One of the most common is:

“What happens to our levies if we change managers?”

This comes up frequently during management transitions, especially for committees navigating the process for the first time. Through our work supporting Owners Corporations across New South Wales and Queensland, we’ve seen how important it is to understand exactly what happens to levy funds during a handover.

Here’s what you need to know.

Understanding how levies work

Strata levies are the regular financial contributions made by lot owners to the Owners Corporation (OC). These pooled funds are essential for covering shared expenses such as:

• building maintenance and repairs
• insurance premiums
• utilities for common areas
• upkeep of shared spaces (like cleaning and gardening)
• administrative and management costs

While strata managers help administer these funds, it’s important to understand that levies are not paid to the strata manager.

Where do levies go when you change strata managers?

Your levies stay with the owners corporation and changing strata managers does not affect your levy funds.

The money already collected remains securely in the OC’s bank account. They do not disappear, get refunded, or go to the manager. Even with a new manager in place, the funds stay under the control of the OC, where they belong.

The incoming strata manager simply handles the administration, not the ownership, of those funds.

What the incoming manager will do

When a new manager is appointed, they will:

• review the OC’s financial position, including levies collected, outstanding contributions, and expenses
• take over the trust account or set up a new one, depending on the structure
• issue future levy notices and manager arrears
• ensure continuity of payments for services like cleaning, gardening, and insurance

The transition is designed to be seamless. There’s no need to reissue levies or start over, just a change in who’s administering the funds.

What committees should check during the transition

To guarantee a smooth process, it’s important to:

• confirm the handover of financial records from the outgoing manager
• verify that the bank account remains in the OC’s name (not the manager’s name)
• review the levy schedule and budget with the new manager
• communicate clearly with owners about the change and what to expect

Careful attention to these details leads to a seamless transfer of responsibilities and upholds the integrity of the OC’s financial processes. It’s a proactive approach that benefits both the committee and lot owners.

Final thoughts

Changing managers doesn’t affect your levies; it affects how well they’re managed. If you’re not satisfied with the level of service or transparency provided, it might be time to explore new management options.

That’s where StrataQuote steps in. We help OC’s swiftly connect with pre‑vetted strata management companies in their area. The service is free and independent, giving you more time back and the confidence to make the right decisions.

To learn more, visit strataquote.com.au today.