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

Purpose: Some multi-owned housing developments do not appoint an external strata manager. This paper highlights 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. Keywords: Governance, Apartments, Professional management, Market gaps, Property