Introduction: The Foundation of Modern Multi-Unit Living
Across New Zealand’s growing urban landscape, more Kiwis live in shared multi-unit properties than ever before. Apartments, townhouses, and mixed-use developments are now core components of city living, which has driven an increasing need for strata management, the system that governs how these communities operate, maintain common areas, and stay compliant with legal requirements.
Strata management is often misunderstood, particularly by new developers, Body Corporate Managers, and property investors entering the unit-titled market. Yet it’s essential to the long-term success of multi-unit ownership models nationwide, ensuring harmony, safety, and sound financial stewardship.
Understanding how strata management works helps ensure efficient maintenance, compliance, and equitable decision-making in these unique ownership structures.
Table of Contents
What Is Strata Management?
Strata management is the framework that allows for joint ownership and administration of shared property assets within a strata-titled development, such as an apartment or townhouse complex. Under this system, each unit owner holds an individual title to their property but collectively owns and maintains the common property, areas such as hallways, roofs, lifts, and gardens.
In New Zealand, strata management operates under the Unit Titles Act 2010 and its 2022 amendment, which set the standards for governance, transparency, and financial accountability. Each owner in a strata development automatically becomes a member of the Body Corporate, the legal entity that owns and manages shared property and appoints a Strata Manager to carry out the operational, financial, and compliance functions.
Strata management is effectively the operational backbone that ensures owners’ investments remain compliant, well-maintained, and valuable over time.
Why Strata Management Is Important
Strata management plays a critical role in protecting both property value and community well-being. Without it, shared spaces could quickly deteriorate, disputes may arise between owners, and compliance obligations could be neglected, creating significant legal and financial risk.
Key reasons strata management matters:
- Preserving asset value: Proper planning, maintenance, and budgeting prevent costly repairs or depreciation across shared facilities.
- Streamlining decision-making: Strata managers mediate between owners, organise meetings, and ensure voting and reporting processes are transparent.
- Ensuring legal and operational compliance: From fire systems and earthquake resilience to privacy and noise laws, strata management ensures adherence to multiple regulatory frameworks.
- Financial accountability: Detailed annual budgets and levies ensure long-term funds are available for maintenance and upgrades, protecting the collective investment.
For a Body Corporate Manager, strata management simplifies complex responsibilities into a coherent governance and operational model, reducing risk while supporting community cohesion.
How Strata Management Works
A strata manager acts under the direction of the body corporate committee, executing their decisions in day-to-day operations. Their work spans administration, maintenance, and financial management, plus importantly, regulatory adherence.
1. Governance and Administration
The strata manager convenes and facilitates annual general meetings (AGMs), manages records, issues meeting notices, and ensures proper minutes and resolutions are kept. They must also implement decisions voted on by the body corporate.
2. Maintenance and Repairs
Strata managers coordinate repairs and upkeep across communal spaces, gardening, roofing, elevators, lighting, and recreation areas, using qualified contractors. Routine maintenance schedules are vital to comply with the Building Act and health and safety standards.
3. Financial Management
The strata manager prepares and oversees budgets and levies. They manage three primary types of levies:
- Administrative fund levies for everyday operations
- Long-term maintenance (sinking) fund levies for future capital works
- Special levies for urgent or unforeseen expenses (e.g., storm or fire damage)
Transparent reporting ensures owners see where funds are allocated and why increases may occur.
4. Legal Compliance
New Zealand strata schemes must maintain a Building Warrant of Fitness (BWOF) and comply with fire system requirements, insurance obligations, and environmental safety standards. Strata managers play an essential compliance role, ensuring regulations remain current as new laws evolve, such as the Health and Safety at Work Act 2015 and earthquake strengthening requirements for older buildings.
5. Dispute Resolution and Community Relations
Beyond technical oversight, strata managers act as impartial facilitators in conflicts between owners, handling bylaws, noise complaints, renovations, or parking disputes. This is crucial to maintaining harmony in shared living environments.
Strata Management vs Property Management
Although the terms are sometimes used interchangeably, strata management and property management serve very different functions, especially in legal responsibility and scope of work.
| Aspect | Strata Management | Property Management |
| Primary Role | Manages common property and collective ownership | Manages individual units or tenants |
| Employer | Appointed by Body Corporate (collective) | Property condition, tenant management, and rent income |
| Legal Framework | Governed by Unit Titles Act 2010 & related regs | Hired by an individual property owner |
| Key Focus | Governed by the Residential Tenancies Act 1986 | Maintenance, compliance, budgeting, and owner relations |
| Stakeholder Group | All property owners within a development | A single landlord or investor |
| Scope of Work | Maintenance of shared areas, insurance, AGMs, levies | Property condition, tenant management, rent income |
Strata managers work on behalf of owners collectively, while property managers operate on behalf of an individual owner. A Body Corporate Manager must often coordinate alongside property managers to ensure the development remains cohesive and compliant across both spheres.
Conclusion: The Future of Strata Management in New Zealand
Strata management is now a cornerstone of New Zealand’s evolving property sector, particularly as urban density grows and developers favour unit-titled communities. For Body Corporate Managers, understanding and implementing effective strata management systems ensures buildings remain safe, compliant, and financially stable over time.
As emerging laws introduce higher transparency and environmental reporting obligations, professional strata management will only grow in strategic value. Partnering with experts like Hallmark & Stone allows Body Corporate Managers to deliver proactive, compliant, and community-focused solutions that protect both owners and their assets for the long term.
Frequently Asked Questions
Is strata management compulsory?
Yes. Strata management is required for any development registered under a strata or unit title, as defined by the Unit Titles Act 2010. All owners automatically become part of the Body Corporate, which must appoint a committee and typically engages a professional strata manager to fulfil operational and compliance duties.
What’s the difference between strata management and property management?
Strata management handles the collective responsibilities of all owners, such as maintaining shared facilities, managing levies, and ensuring compliance. Property management deals specifically with individual units: tenant relationships, leases, and rental income. Both roles can exist simultaneously within the same building but serve different clients and legal contexts.
Who hires the strata manager?
The Body Corporate committee, elected by all unit owners, hires the strata manager by majority resolution. The contract defines the manager’s responsibilities, performance expectations, and term of appointment. Professional accreditation with organisations like Strata Community Association (SCA) NZ provides additional assurance of industry standards and governance experience.
This post is part of Hallmark & Stone’s Strata Management Series, which explores the dynamic landscape of multi-unit property governance in New Zealand, including future topics such as What Does a Strata Manager Actually Do? and How to Switch Strata Managers the Right Way.
