In the events of the past week, it’s hard not to conclude that big strata firms are getting away with murder, while small to medium strata firms are being flogged.
‘Something is rotten in the state of Denmark.’
(William Shakespeare, Hamlet, Act 1, Scene 4)
Let’s recap –
- March 2024: ABC broadcast serious allegations of conflicts of interest and unprofessional conduct involving a big strata firm. The MD of that firm admits the broadcaster disclosed things about which ‘he felt awkward’ and would rectify. He later resigns as the president of the state chapter of the peak body representing strata managers.
- February 2025: Independent forensic accountants, appointed by NSW Fair Trading and the big strata firm, make findings of non-disclosure of conflicts of interest, in addition to instances of the firm not acting in the best interests of consumers. They make 21 recommendations about improvements to the firm’s processes and procedures. The firm denies the breaches.
- It is thought at least 12 other big strata firms have business practices along the same lines as the firm investigated. This particularly relates to interest in insurance brokerage firms that they apparently claim (erroneously) allows them to avoid the laws about disclosing commissions. No statements have been made by NSW Fair Trading, or the peak body for strata managers, about any investigation into these allegations.
- It is believed the investigation into the big strata firm at the centre of the ABC story is ongoing. The last reported statement by the NSW Fair Trading Commissioner was to the effect that the newly established Strata and Property Services Taskforce is further examining the matters in the report. This includes non-disclosed brokerage fees by the firm’s wholly owned subsidiary, and ‘other separate allegations of misconduct’ (Insurance Business, 2025).
How extraordinary then, that in the past few days, NSW Premier Chris Minns was photographed visiting the offices of the firm still under investigation. The photograph was posted on social media by the firm, boasting about how proud they are to be recognised by the Premier for doing meaningful work in the community.
In my 40 years in strata, I do not recall ever hearing of a state premier making such a visit. A visit that this Premier and his advisors must have known, or should have known, would be used by the firm for self-promotion.
In the very same week the premier visits the strata firm under investigation, we learn that the newly appointed Strata and Property Services Commissioner and his investigators are making ‘anytime, anywhere’ unannounced surveillance visits to strata managers in Sydney, Newcastle, Wollongong and Gunnedah.
No criticism is being made of the work of the Strata and Property Services Commissioner and his team of investigators.
The problem is the appearance of unfair treatment, given the Premier’s visit. A visit that has unfairly favoured the firm at the centre of an investigation that has caused so much harm to innocent and hardworking strata managers.
If nothing is rotten in the state of New South Wales, then the Premier should explain: Why?
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
