Busting the Myth that Strata Is too Expensive

“My strata costs are ridiculous!”

“What am I even paying for with my strata fees?”

“I bet someone is getting rich from my strata fees!”

If you own or rent in an apartment complex, then it wouldn’t be Australian if you haven’t uttered these sentiments at some point during your lease or ownership. We’ve all lived in an apartment building that is falling apart, constantly out of order, or just downright run down.

These common gripes often lead to the assumption that strata costs are too expensive or that you’re not getting anything for your money. In this article, we’re coming at things from a slightly different point of view.

As a strata provider, we’ll be the first to throw our hands up in the air and say that not all strata companies play by the book. In fact, some of the sentiments mentioned above can certainly ring true – especially when you’re with a lousy provider. In this article, we’ll do our best to debunk the myth that strata fees are too expensive and look at some of the most common gripes that renters and owners have with their strata providers.

Why are strata fees so high?

If you’ve come to the conclusion that your strata fees are too high, then it’s important to determine what factors are creating the cost. Attending your annual general meetings or getting involved with the committee can provide you with a clear breakdown of costings and fees associated with maintaining the building.

Strata fees vary from property to property. As a rule of thumb, the more that needs to be maintained, the more residents will need to pay in strata fees in order for the body corporate to stay on top of things.

Strata fees cover the costs of maintaining common areas and shared facilities in a strata property. Depending on your strata, this also includes things like insurance, repairs, maintenance, and common area cleaning.  Remember that in a strata you also do not ordinarily need to take out your own building insurance, so this is a big saving that you need to take into account.  Just remember you may want to take out landlord or contents insurance.

While the actual costs will vary depending on the size and features of your property (things like swimming pools and gyms will undoubtably drive-up costs), strata fees are usually relevant to the value of the property. If you enjoy hotel-style living, then you can expect to pay more than someone living in a simple apartment with few amenities.

What are the factors that determine strata fees?

As we touched on above, the strata fees incurred by owners are a reflection of the cost of operating and maintaining a property. The specific amount will vary depending on the size, age, location, and number of units contained within the strata.

The owners decide at the annual general meeting on an annual budget that is required to cover the costs, as well as any regular or scheduled maintenance for the building. This cost is then divvied up amongst the owners based on their unit entitlement. In some cases, owners may be responsible for one-time maintenance of the building or special levies that cover significant works or renovations.

What if you don’t pay strata fees?

If you don’t pay strata fees, then your strata corporation will likely take legal action against you to recoup costs. This could include an application to the court for an order that will make you pay the outstanding fees, plus legal costs and any interest that accrues during this time.

The strata corporation may also place a lien on your property for any unpaid fees. In simple terms, this means that the strata corporation can take legal action such as selling your property in order to recoup any unpaid fees.

If you’re falling behind on strata fees or have fallen on tough times, then you need to get in contact with your body corporate to discuss your options. Opting out of your strata fees is never an option and will (more than likely) lead to greater costs down the line. 

Strata fees make your life easier

Strata fees are just one of many costs that are associated with owning a building in a shared property. All of those little things that you take for granted like having a gardener, cleaner, and someone to take out the bins once a week – those are all costs that you incur through your strata fees.

Strata fees also mean that you are not usually liable for major, unexpected payments – something that can’t be said for house or townhouse owners. If you own a house and your building is damaged, the outside lights go out, or your property becomes overgrown or unkempt – then that is your sole responsibility to fix. Conversely, if you live in a strata operated building then you don’t have to worry about these tasks. Instead, you can rest easy knowing that most things that happen in common living areas or parking areas are covered under your strata fees.

Your strata fees provide peace of mind by ensuring that your property is always well maintained and safe. If there are any issues with the common areas or facilities, then you can be confident knowing that they will be dealt with quickly and efficiently.

Final thoughts

Remember, your low-maintenance lifestyle didn’t happen by accident. While homeowners slave away on weekends to keep the exterior of their property clean, their houses safe, and their lawns mowed, and their gardens maintained, you can spend more time enjoying the weekend. Living in a strata building means that you can always come home to empty bins and clean surroundings knowing that your small contributions add up in a big way.