What is Strata Fees and Other Things To Consider When Buying an Apartment

Investing in an apartment within a strata scheme can be a great financial and lifestyle decision, whether you are a first-time buyer or downsizing from a larger home. Strata properties often come with benefits such as shared amenities and reduced maintenance responsibilities, but there are also key factors to consider before committing to a purchase. Understanding strata fees, building management, and ongoing costs is essential to ensure you’re making a well-informed decision.

What is a Strata Title?

A strata title is a system of property ownership that applies to apartments, townhouses, duplexes, and some commercial buildings where owners share responsibility for common areas. These areas typically include lobbies, gardens, stairwells, and facilities like pools or gyms.

What is a Body Corporate?

When you buy into a strata title scheme, you automatically become part of the body corporate, which includes all property owners within the complex. The body corporate is responsible for managing the building’s maintenance, enforcing by-laws, and collecting strata fees.

What is Strata Fees?

Strata fees (also known as body corporate fees) are mandatory payments made by apartment owners to cover the maintenance and management of the building and shared facilities. The amount you pay depends on factors such as the building’s size, amenities, and maintenance requirements.

Do Strata Fees Include Council Rates?

No, council rates are separate from strata fees. While strata fees cover common property expenses, council rates are levied by the local government for services such as waste collection and infrastructure maintenance.

How Much Are Strata Fees?

Strata fees vary widely depending on the location, size, and amenities of the apartment complex. In Australia, you can expect to pay:

• Low-range fees: $500 – $1,500 per year (for smaller buildings with fewer amenities)
• Mid-range fees: $2,000 – $5,000 per year (for medium-sized complexes with some facilities)
• High-range fees: $5,000 – $15,000+ per year (for luxury apartments with pools, gyms, and concierge services)

What Do Strata Fees Cover?

Strata fees are typically divided into three main levies:

1. Administrative Fund Levies – Cover regular maintenance, cleaning, insurance, gardening, management fees, and common area utilities.
2. Sinking Fund Levies – Set aside money for major repairs and future expenses, such as roof replacements, lift repairs, or repainting the building.
3. Special Levies – Used for unexpected or urgent repairs, such as fixing structural damage or legal expenses.

Are Strata Fees Tax Deductible?

For investors, strata fees are generally tax-deductible as a rental property expense. However, owner-occupiers cannot claim these fees on their tax return. If you’re purchasing an investment apartment, it’s worth consulting an accountant or tax professional to understand what deductions apply.

Other Things to Consider When Buying an Apartment

Ongoing Fees & Financial Health of the Building

Beyond strata fees, you should review the financial status of the body corporate. A well-managed building will have a healthy sinking fund to cover major expenses, while a poorly managed one may struggle with unexpected levies. Before buying, request a strata report to check financial records and upcoming maintenance projects.

Building By-Laws and Restrictions

Strata properties have rules (by-laws) that all owners and tenants must follow. These can include:

• Pet policies – Some buildings ban or restrict pets.
• Short-term rentals (e.g., Airbnb) – Some buildings do not allow Airbnb or impose strict conditions.
• Noise and renovations – Limits may exist on renovation work, noise levels, and use of common areas.

Failure to comply can result in fines or disputes with the body corporate.

Owner-Occupiers vs. Investors

Buildings with a high percentage of owner-occupiers are often better maintained, as residents are directly invested in their upkeep. In contrast, buildings with more investor-owned units may have delayed maintenance issues, as absentee landlords may not prioritize repairs.

Building History & Maintenance Reports

Before purchasing, check the building history for past issues, ongoing repairs, and structural problems. This can be done by reviewing:

• Strata meeting minutes
• Maintenance records
• Building and pest inspection reports

If major repairs are looming but the sinking fund is low, new owners may be hit with unexpected special levies.

Future Maintenance & Special Levies

Consider the age and condition of the building. Older buildings often require more upkeep, such as painting, plumbing, and roofing repairs. If these haven’t been addressed in years, you may face hefty additional fees.

Is Buying an Apartment in a Strata Complex Worth It?

Strata properties offer security, convenience, and amenities, making them attractive for first-home buyers, downsizers, and investors. Many modern complexes feature desirable facilities like swimming pools, gyms, and communal gardens, providing a community-focused lifestyle.

However, before committing, thoroughly research the strata scheme, review financial records, and understand all associated costs. If you’re unsure, consulting a property lawyer or conveyancer can help ensure you’re making the right decision.