Just a few things for you and your neighbour to consider:
About half the strata schemes in NSW are self-managed (although how efficiently, is another matter).
Strata Res (our sponsors) offer a half-and-half service which suits schemes that want to do most of the stuff themselves but also want advice and support on the tricky stuff.
Large strata firms tend to shy away from small schemes because their involvement isn’t worth the money they get. If you take an average of $250 per lot per year, and then consider that one problem resident or one major maintenance issue can take up days or even weeks of their time, regardless of the size of the building, you are not going to be as high on their priorities as a building of 100 units or more.
If you do go for a full-service strata manager, go for a contract that charges less up-front but then adds on costs on a user-pays basis. That way you only pay for the service you get and there is an incentive for them to do more for you, if you need it.
More expensive all-in services have the opposite effect. The strata firm has made its money so every time they make a phone call or write a letter for you, it’s a cost to them. These contracts are better suited to large schemes where you know there is going to be work for the SM and they want to hang on to the income.
Strata managers are human but they are also businesses. Don’t expect to get something for nothing.