The commission's report suggests transitioning to a fee-for-service model, asserting that the current commission-based system fosters conflicts of interest and obscures the true costs borne by apartment owners. By abolishing these commissions, the commission anticipates increased competition among strata managers, potentially leading to lower fees and improved services for residents.
David Glover from the Owners Corporation Network Australia supports the proposal, emphasising the need for professional and competent strata managers who are fairly compensated for their work. He highlights that undisclosed commissions can lead to higher costs for owners and erode trust between owners and managers.
The report also notes that nearly a quarter of NSW residents live in residential strata schemes, with projections indicating that by 2041, approximately half of all homes in Sydney will be strata dwellings. This underscores the importance of implementing reforms that promote transparency and fairness in strata management.
While the recommendation has been welcomed by consumer advocates, the NSW government is currently reviewing the commission's findings before making a final decision. If adopted, this reform could set a precedent for other states considering similar measures to enhance transparency and reduce costs in the strata sector.
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