Self-Managing a Body Corporate in Western Australia

Can you self-manage in Western Australia?

Any strata company can self-manage. Strata schemes of two or three lots can pass a special resolution to opt out of forming a council of owners; instead, lot owners act jointly. Schemes with more than 10 lots are now classified as designated schemes and have heightened reporting obligations, but self-management remains permitted.

Required office bearers

Schemes with more than three lots must have a council of owners — typically chairperson, secretary and treasurer plus up to four ordinary members. Office bearers are elected annually at the AGM. In a small scheme (three lots or fewer) all owners can act as the strata company without a formal council.

Meetings and notices

The first AGM must be held within three months of registration. Subsequent AGMs are required at least once every 15 months. Written notice of at least 14 days must be given to every owner and must include the agenda, financial statements, insurance certificates and the proposed budget.

Levies, budgets and funds

Strata companies must keep an administrative fund and, for designated schemes (>10 lots), a reserve fund supported by a 10-year plan. Smaller schemes are not required to keep a reserve fund but may resolve to do so. Levies are set at each AGM.

Insurance obligations

Reinstatement-value building insurance covering all buildings on the scheme, plus public risk insurance of at least $10 million, is compulsory. Where buildings are physically separated, two- or three-lot schemes may resolve unanimously to insure separately.

Records to keep

The strata company must maintain a register of owners, minutes of meetings, accounting records, insurance documents and copies of the scheme by-laws. Records must be kept for at least six years and made available for inspection by any lot owner.

Common pitfalls

• Forgetting to register by-law amendments with Landgate — unregistered by-laws are not enforceable.
• Missing the 15-month AGM cycle, particularly in small schemes that meet only when something goes wrong.
• Operating without buildings insurance when relying on owners’ private home policies — the Act requires a strata-company-level policy.
• Calling a meeting via SMS only — written notice is required, although email is now accepted if the owner has nominated one.
• For designated schemes, failing to prepare and review the 10-year reserve fund plan.

Frequently asked questions