NSW Fair Trading has taken formal disciplinary action against Result Strata Management Pty Ltd and its general manager, Michael Lee, permanently revoking their licences to operate in the state’s strata management sector.
The action, effective from May 9, follows findings of ongoing breaches of the Property and Stock Agents Act 2002.
An investigation revealed multiple violations, including:
Lee was found to have allowed these practices and obstructed authorities during a site visit.
Fair Trading commissioner Natasha Mann said the action reflects the agency’s focus on reinforcing compliance across the strata industry.
“Strata residents across NSW should feel confident their properties are being managed in line with the law and in their best interests,” she said.
The administration of Result Strata is now being handled by Grant Thornton.
Coinciding with the enforcement action, the NSW government has implemented new residential tenancy laws that introduce several changes affecting lease terminations, pet ownership, rent increases, and rental payments – signalling shift in property risk profiles.
From May 19, landlords must provide specific reasons to end a lease, ending the use of “no grounds” terminations. Other changes include limits on the frequency of rent increases – now restricted to once per year for all lease types – and bans on certain upfront charges such as fees for background checks.
Tenants now have a right to pay rent via bank transfer, and landlords must respond to pet ownership requests within 21 days or consent is assumed.
Additional measures restrict re-letting properties for a defined period after lease termination, depending on the grounds for eviction.
To oversee compliance, NSW Fair Trading has launched a dedicated Rental Taskforce. From July 2025, landlords will be required to state the reason for ending a tenancy when claiming bond refunds.
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The NSW government is also considering further reforms that could reshape financial arrangements in strata insurance.
A proposed ban on commissions paid to strata managers by insurers has drawn both support and concern.
Consumer groups including the Owners Corporation Network (OCN) and the Australian Consumers Insurance Lobby (ACIL) have advocated for the ban, arguing that commission-based models undermine transparency and inflate premiums.
ACIL chair Tyrone Shandiman said there needs to be clear accountability in how insurance is arranged and sold in the strata sector.
“If an industry can profit through poor conduct and then lobby its way out of reform, it sends the message that the risk was worth it. That cannot be the legacy of this government’s reform agenda,” he said.
On the other side, strata management firms warn the changes could have operational consequences.
PICA Group CEO Bobby Lehane said removing insurance commissions without a viable replacement model could reduce profitability and service levels across the sector.
According to a PICA survey of strata residents across NSW, Victoria, and Queensland, opinions are divided. While 38% of NSW respondents supported a shift to a fixed fee model paid by insurers, only 29% supported eliminating commissions outright if it meant adjusting strata fees.
