Self-Managed vs. Professional OC Management: What’s Best for Townhouses?

Guy Bowell
Oct 15
3 min read

When it comes to managing a townhouse development in Victoria, one of the most common questions lot owners face is:

"Should we self-manage our Owners Corporation or engage a professional manager?"

At first glance, self-managing a small Owners Corporation (OC) may seem like the simpler, more cost-effective option. But as with many things in property, the right decision depends on the size, complexity, and goals of your community.

Let’s break down the pros and cons of both options so you can make an informed choice for your townhouse development.

What Is Self-Managed OC?

A self-managed Owners Corporation means the lot owners or committee members take full responsibility for:

Managing finances and levies
Organising maintenance and repairs
Ensuring compliance with Victorian legislation
Keeping records and insurance up to date
Holding meetings and resolving disputes

What Is Professional OC Management?

A professional OC manager is a licensed third-party service provider who handles the above tasks on your behalf. They act under the direction of the OC committee but bring industry knowledge, systems, and legal understanding to the table.

Self-Managed vs. Professionally Managed: Pros & Cons

Feature	Self-Managed OC	Professional OC Manager
Cost	Lower (no management fees)	Management fees apply
Time commitment	High – all tasks handled by owners	Low – manager handles admin, finance, and compliance
Expertise required	High – must understand legal obligations	Manager has industry knowledge and legal compliance expertise
Dispute handling	Owners must manage disputes internally	Manager provides support and mediation guidance
Compliance risk	Higher – mistakes can lead to legal issues	Lower – professional managers are trained in Victorian OC laws
Transparency	Complete control by owners	Still accountable to the committee, but less hands-on visibility
Record-keeping	Owners must maintain records properly	Manager handles documents, meetings, and compliance registers
Insurance & Budgeting	Owners source quotes and manage finances	Manager sources quotes and prepares annual budgets & levies

What’s Typical for Townhouse Developments?

In Victoria, many small townhouse OCs (2–5 lots) choose to self-manage, particularly when:

The common property is minimal (e.g. just a shared driveway)
All owners are on friendly terms
Maintenance is low and predictable
Owners are confident in handling finances and compliance

However, professional management becomes more valuable when:

There are 6+ lots, multiple buildings, or shared facilities
Owners live offsite or are investors
Disputes start to arise
There's a need for clear record-keeping, insurance, and legal compliance

5 Questions to Ask Before Choosing

How complex is our common property?
- A simple shared driveway is very different from a development with gardens, lighting, or visitor parking.
Do we have the time and skills to manage it ourselves?
- If no one is willing or able to take on the responsibility, self-management can quickly become a burden.
Are we confident in our legal obligations under the Owners Corporations Act 2006 (VIC)?
- Things like maintenance plans, AGMs, financial reporting, and insurance can’t be ignored.
Have we had any conflicts or disagreements between owners?
- A neutral third party can often prevent small disputes from escalating.
Is cost the only reason we’re considering self-management?
- Cutting costs may save money upfront, but it can lead to larger expenses later if issues are mishandled.

Our Advice: Think Long-Term

While self-management can work well for very small, harmonious communities, the risks increase as developments grow in size or complexity.

A professional OC manager brings:

Peace of mind
Legal compliance
Transparent financial management
A buffer between neighbours when things get tense

And for a relatively modest annual fee, the time and hassle saved can be well worth it.

Need Help Deciding?

Whether you're currently self-managed or considering switching to a professional OC manager, we’re here to help. We work with many townhouse developments across Victoria and can provide obligation-free advice tailored to your property.

Contact us today to explore your options and get clarity on what’s best for your Owners Corporation.