An emerging profession and an evolving regulatory landscape

Strata management is an important para-profession involved in the development and management of apartment buildings. In Australia, strata managers are employed to assist with the administration of the owners corporation, including undertaking important tasks such as defects rectification processes. Strata managers in many jurisdictions have few of the hallmarks of professionalism, such as high educational standards and enforceable codes of conduct. This professional body has also been subject to recent ethics scandals, involving conflicts of interest, kickbacks, and hidden fees. Drawing on interviews with strata managers, this chapter explains how these specific problems reflect their larger integrity system. Strata managers are subject to two key ethical tensions, the Professional Versus Client Tension and the Principal Versus End-User Tension. Both these tensions are exacerbated by the presence of several other tensions, including the Aggressive Competition Tension, the Work Overload Tension, and the Competence Tension. The chapter advocates for a range of reforms, extending beyond improved regulation to measures that enhance professionalism and consumer outcomes. These include developing co-regulation with the existing professional body, shifting consumer expectations (including about fees for service), and clearer contractual arrangements (including through fairer standard form contracts).