NSW: Building better strata communities: what best practice really looks like in 2025

This article discusses what best practice strata management looks like in 2025, highlighting governance, maintenance, communication, and compliance strategies for NSW strata communities.

Strata living is evolving fast, and committees can no longer afford to take a reactive approach to building management. Tighter compliance requirements, changing legislation, and rising owner expectations mean that proactive, best practice management has become essential to maintaining both the value and harmony of strata communities.

At last week’s LookUpStrata webinar, NSW: Bringing best practice to your strata building – large or small, Hugh McCormack from McCormacks Strata Management explored what best practice truly means in 2025. Drawing on decades of experience managing some of Sydney’s most complex and high-performing schemes, Hugh outlined how clear governance, preventative maintenance, and consistent communication form the backbone of a successful strata building.

The discussion focused on what committees, managers and owners can do to build resilience, reduce risk, and improve decision-making.

NSW: Bringing best practice to your strata building – large or small | Hugh McCormack, McCormacks Strata Management – Oct 2025

Why best practice matters

Hugh began by explaining that every building develops a culture, and best practice is what shapes that culture into something constructive. Strata committees that operate transparently and professionally not only make better decisions but also earn the trust of their owners. That trust, he said, makes it far easier to navigate major projects or levy increases when they arise.

He also noted that a focus on quality governance attracts engaged owners who want to contribute. When people see that their committee is well run, they are more likely to join it and share the workload. This is a crucial factor in the long-term sustainability of any scheme.

Governance and committee operations

Good governance was identified as one of the defining features of best practice buildings. According to Hugh, effective committees:

• Actively recruit members with a mix of relevant skills, from accounting and finance to trades and project management.
• Rotate key roles such as chairperson every three to five years to encourage fresh perspectives and prevent burnout.
• Hold regular, structured meetings — ideally quarterly — with clear agendas, action items, and accountability for follow-up.

He emphasised the importance of documenting committee processes, from approval limits to communication protocols. “When you agree on how you’ll operate and record it, everyone is on the same page,” he said. “It removes ambiguity and protects individuals legally.”

Hugh also recommended creating an executive summary at the top of meeting minutes, written in plain language, to improve engagement with owners who may not read the full document. This is a great way to summarise the key takeaways and let people know what’s happening in their building.

Maintenance and managing trades

Preventative maintenance was another key theme. Hugh reminded attendees that there is no defence for not maintaining common property and encouraged committees to be proactive rather than waiting for things to break.

He advised developing a preventative maintenance schedule supported by a clear contracts register showing key service dates and renewal periods. Committees should also build strong relationships with trusted tradespeople. When you treat your trades well, they are more likely to be there for you when it matters, such as in emergencies or late on a Friday afternoon.

Loyalty and trust, Hugh added, often deliver better long-term outcomes than switching contractors purely on price. However, he suggested testing the market periodically to ensure competitiveness while maintaining those relationships.

The value of planning ahead

Hugh encouraged schemes to review their 10-year capital works plan every year rather than treating it as a static document. The maintenance plan doesn’t need to be complicated. It’s a great idea to focus on your top five or ten major assets. By keeping the plan simple and up to date, committees can make informed financial decisions and avoid being caught off guard by unexpected expenses.

He also highlighted the connection between proactive maintenance and cost control. If you maintain your building properly, it costs less in the long run. The challenge is convincing owners that preventive investment now will save them significant money later.

Bylaws and consistency

Another marker of a well-run building is consistent and fair bylaw enforcement. Hugh said best practice committees communicate clearly about bylaw expectations and apply them equally to everyone.

Start with the basics, such as a clean car park. The state of the common property can tell you a lot about a building’s culture. Do the small things right and apply them consistently, and you’ll see better results across the board.

He also reminded committees to document bylaw procedures and give residents a reasonable time to comply before escalating matters to mediation or NCAT. Consistency over time, he said, creates a positive culture of compliance.

Trends shaping NSW strata management

In closing, Hugh outlined several major reforms on the horizon for NSW strata schemes:

• Levy recovery reforms: New consumer-focused rules mean payment plans will become more common, and recovery costs can no longer be charged directly to owners in arrears.
• Mandatory strata committee training: Coming soon through NSW Fair Trading to ensure all members understand their obligations.
• Standardised 10-year capital works plan format: Requiring a more consistent approach across schemes.
• Updated fire safety regulations: Set to increase compliance costs from 2026.

While these changes may increase short-term expenses, Hugh stressed that they ultimately improve transparency and protect the long-term value of strata assets.

Takeaways for committees and strata managers

Hugh’s closing message was simple: not every building can implement every best practice immediately, but starting small makes a difference.

For committees:

• Hold regular meetings and document decisions properly.
• Build relationships with reliable trades and reward consistency.
• Keep communication open and proactive, even when nothing major is happening.
• Review financials and capital plans regularly to avoid surprises.

For strata managers:

• Support committees with timely information and frank, compliant advice even when it’s not the easiest or most comfortable path to take.
• Encourage consistent communication and record-keeping.
• Educate committees about compliance and risk management to prevent reactive decision-making.

Best practice isn’t about perfection. It’s about continuous improvement.

Watch the full recording

This NSW-focused webinar offered a practical, honest look at what it takes to run a successful strata building in today’s environment. From governance to maintenance and bylaw enforcement, Hugh McCormack’s insights gave attendees a roadmap for more transparent, resilient, and future-ready communities.

If you joined the session, rewatch the recording to revisit the strategies shared. If you missed it, this is a must-see presentation for every committee member or strata manager looking to raise standards and lead their building with confidence.

Link to presentation: NSW: Best Practice in Your Strata Building

Hugh McCormack
McCormacks Strata Management
E: Hugh.McCormack@mccormacks.com.au
P: 1300 991 825

This post appears in Strata News #767.

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