Strata in NSW is evolving. As mixed-use developments—shops below, apartments above—become more common, the way these properties are governed has had to adapt. That’s where Strata Management Statements (SMS) and Building Management Committees (BMCs) come in.

At Metro Strata, our managers regularly attend professional development training through the Institute of Strata Title Management (ISTM) to stay across these changes. Here’s a simple guide to what SMS and BMCs mean for owners and tenants.

What Is a Strata Management Statement?

A Strata Management Statement is a legal document registered with NSW Land Registry Services. It sets out how shared facilities in a part strata scheme (a subdivision where one building contains multiple strata plans, like retail and residential) will be managed and funded.

It usually covers:

• Shared car parks and driveways
• Loading docks or garbage rooms
• Fire safety systems
• Lifts and plant rooms
• Access and security systems

Think of it as the rulebook for shared spaces in a complex building.

What Is a Building Management Committee?

A Building Management Committee (BMC) is the body responsible for carrying out the rules in the SMS. It’s made up of representatives from each of the separate strata schemes—for example, one from the apartment owners corporation and one from the retail lot owners.

The BMC works with the strata manager to:

• Maintain and repair shared facilities
• Collect contributions from the schemes to pay for shared expenses
• Make decisions about access, upgrades, and dispute resolution

Why It Matters for Owners

If you live in or invest in a mixed-use development, you’re not just dealing with your own strata scheme—you’re also impacted by the SMS and BMC. That means:

• Levies may include contributions to shared facilities like basement parking.
• Decisions may take longer, as they involve multiple schemes with different priorities.
• Good management is essential, to balance the needs of residents, businesses, and other stakeholders.

Metro Strata’s Expertise

At Metro Strata, we’ve managed schemes that include residential apartments above retail or office space. We know how to navigate the complexities of SMS and BMC arrangements to keep things running smoothly—ensuring transparency, fairness, and financial accountability for all owners.

Final Word

As mixed-use developments become more common in NSW, understanding Strata Management Statements and Building Management Committees is essential for owners, investors, and tenants alike.