If you’re considering renting or purchasing a unit, townhouse, or apartment in Australia, it’s important to understand strata fees and body corporate rules. These are key aspects of living in properties governed by a shared ownership system. Strata fees cover the upkeep of common areas, while body corporate rules ensure the harmonious management of shared spaces. This guide explains how these systems work, what they include, and what you need to consider as an expat.

What Is a Strata Scheme?

A strata scheme is a legal framework for managing properties with shared ownership, such as apartment buildings or townhouse complexes. Each owner holds individual ownership of their unit or lot, while sharing ownership of common areas like gardens, pools, hallways, and car parks. The body corporate (also known as an owners corporation) is responsible for managing these shared spaces and enforcing rules.

What Are Strata Fees?

Strata fees, or levies, are regular payments made by property owners to the body corporate. These fees cover the maintenance and management of common areas, as well as building insurance and administrative costs.

Types of Strata Fees

1. Administration Fund Fees: Used for day-to-day expenses like cleaning, gardening, and minor repairs.
2. Sinking Fund Fees: Allocated for long-term maintenance and major works, such as roof replacements or painting.
3. Special Levies: Raised for unexpected costs or significant projects not covered by the regular funds.

How Much Are Strata Fees?

Strata fees vary widely based on factors such as the property’s size, location, and amenities. On average:

• Small complexes with basic amenities: AUD $500–$1,000 per quarter.
• Larger buildings with pools, gyms, or lifts: AUD $1,500–$3,000 per quarter or more.

Properties with high-end amenities or located in major cities like Sydney or Melbourne often have higher fees.

What Does the Body Corporate Do?

The body corporate oversees the management and maintenance of the property, ensuring that common areas are safe and well-maintained. Its responsibilities include:

• Organising Maintenance: Regular cleaning, gardening, and minor repairs for shared spaces.
• Managing Finances: Collecting strata fees, maintaining budgets, and ensuring sufficient funds for long-term projects.
• Enforcing Rules: Ensuring compliance with by-laws, such as noise restrictions or pet policies.
• Handling Insurance: Arranging building insurance for the property.
• Resolving Disputes: Mediating conflicts between residents or addressing complaints.

Common Body Corporate Rules

Each strata scheme has its own set of by-laws or rules, which all residents must follow. Common rules include:

• Noise Levels: Restrictions on excessive noise to maintain peace.
• Pets: Some strata schemes have rules about pet ownership, requiring permission or banning certain animals.
• Use of Common Areas: Guidelines for using shared facilities, such as BBQ areas or swimming pools.
• Parking: Designated parking spaces and restrictions on visitor parking.
• Renovations: Rules about making changes to your unit, such as installing air conditioning or renovating bathrooms.

It’s essential to review the by-laws before renting or purchasing a property to ensure they align with your lifestyle.

What to Consider as an Expat

If you’re new to strata living, there are several factors to keep in mind:

1. Budget for Strata Fees
   Ensure you understand the strata fees for your property and factor them into your budget. Higher fees often mean better amenities and maintenance, but they can significantly impact affordability.
2. Read the By-Laws
   Review the property’s by-laws carefully, especially if you have pets, plan to renovate, or frequently use common facilities.
3. Check the Property’s Financial Health
   Ask for a copy of the strata report, which includes the financial statements, meeting minutes, and details of any ongoing disputes or upcoming costs.
4. Inspect Common Areas
   Assess the condition of shared spaces during property inspections. Poorly maintained areas may indicate financial or management issues within the body corporate.
5. Understand Your Rights and Responsibilities
   Familiarise yourself with the strata legislation in your state or territory, as rules vary across Australia.

Benefits and Challenges of Strata Living

Benefits

• Access to shared amenities such as pools, gyms, or landscaped gardens.
• Reduced responsibility for maintenance, as the body corporate handles common areas.
• Enhanced security in gated or apartment complexes.

Challenges

• Ongoing strata fees, which can be expensive in high-end properties.
• Restrictions imposed by by-laws, limiting personal freedoms.
• Potential for disputes with other residents or the body corporate.

State and Territory Resources

Strata laws are governed at the state and territory level. Below are useful resources for more information:

• New South Wales (NSW): NSW Fair Trading
• Victoria (VIC): Consumer Affairs Victoria
• Queensland (QLD): Queensland Government Body Corporate
• Western Australia (WA): WA Government Strata Titles
• South Australia (SA): SA Strata Community Australia
• Tasmania (TAS): Tasmanian Strata Titles
• Australian Capital Territory (ACT): ACT Strata Management
• Northern Territory (NT): NT Government Strata

Understanding strata fees and body corporate rules is essential for anyone living in a strata property in Australia. These systems ensure the smooth management of shared spaces but come with responsibilities and costs that tenants and owners must factor into their housing decisions. By researching your property’s strata scheme, reviewing by-laws, and budgeting for fees, you can make an informed choice and enjoy the benefits of strata living.