Small scale housing unit developments: Implications for strata manager market penetration

Purpose: Some multi-owned housing developments do not appoint an external strata manager. The purpose of this paper is to highlight how governance is negotiated when there is no strata manager in place.

Design/methodology/approach: A semi structured interview was conducted as a case study to contrast and highlight issues that occur where no strata manager is in place.

Findings: The lack of a manager presented particular difficulties when negotiating outcomes. A market gap is identified highlighting implications for how strata managers may increase future market penetration.

Research limitations/implications: The number and spatial occurrence of strata titled complexes operating without a formal governance structure in situ is not known. Further research needs to be undertaken in this area.

Practical implications: The resilience of Australia’s densification policies is dependent on how owners perceive and adjust to additional layers of governance. Difficulties arise for the individual and the scheme as a whole where no formal mechanism is operational.

Social implications: As cities become more dense, multi-owned property is increasing. Where governance mechanisms fail, or fail to be implemented, sound governance outcomes may be problematic.

Originality/value: The issue of multi-owned property operating without or outside a governance structure has not previously been considered.