Strata 101: What Every Investor Needs to Know About Strata Management
Strata ownership can be complex. While we won't give you a legal lecture, we want to walk you through the common issues we explain to landlords. Understanding strata reduces the risk of surprise bills or frustrating disputes.
If you're investing in a unit, townhouse, or even a duplex in a strata scheme, here's what you need to know to protect your ROI and ensure your property runs smoothly.
1. What is Strata, Anyway?
In plain English: strata means you own your unit, but share responsibility for the rest.
Common areas like hallways, gardens, driveways, stairwells, roofs, and fences are managed collectively. This management falls under the owners corporation (formerly known as the body corporate), which comprises all property owners within the complex.
Typical strata properties include:
Units in apartment buildings
Townhouses
Duplexes with shared infrastructure
2. Who Does What? Landlord vs Strata vs Tenant
Here’s a quick breakdown of responsibilities:
Want to learn more about smoke alarm responsibilities? Read our blog on that here.
3. Strata Levies: What Are You Actually Paying For?
Strata levies are not just a random fee. They’re split into three categories:
Admin fund: covers day-to-day expenses (cleaning, lawn care, etc.)
Capital works fund: for big-ticket items like roof replacements or external painting
Special levies: raised if there’s not enough in the fund to cover major works
Before buying, always review the strata report for red flags like low funds or past disputes. And remember: higher levies aren’t always bad. They can indicate a well-run strata with forward planning (which is what you want as an investor).
4. By-Laws: The Fine Print That Can Cost You
By-laws are the rules of the building. They can cover things like:
Pet ownership
Renovations
Airbnb/short-term rentals
Noise and use of common areas
Always request the current by-laws before purchasing. We've witnessed investors acquire properties in buildings where short-term rentals were prohibited, only to discover this post-settlement. This error comes at a high price.
5. Your Role in the Strata Community (Even If You’re Hands-Off)
You don’t need to show up to every meeting, but you should stay in the loop.
At Greycliffe, we help our landlords by:
Representing them at meetings when needed
Reviewing and summarising key documents
Flagging anything that could affect your costs or compliance
Just keep your contact details updated with strata, especially if you don’t live locally.
6. Common Strata Problems (and How to Avoid Them)
Here are the big ones we see:
Sudden levy increases: usually from poor planning or unexpected repairs
Disputes over damage or repairs: knowing what’s strata vs owner cost is key
Inaction from the strata committee: this can drag out simple fixes
Tip: Read past meeting minutes and review the capital works forecast before you buy. And if something smells off, get a solicitor or quantity surveyor to review the paperwork.
7. How Greycliffe Helps Our Landlords Navigate Strata
We’ve stepped in many times to handle strata issues on behalf of our landlords.
We talk directly to the strata manager
We interpret what’s urgent (and what’s not your cost)
We get ahead of issues before they escalate
One landlord was recently blindsided by a $12K special levy for waterproofing. We helped them negotiate with the strata committee, confirm insurance coverage, and cut the bill in half through correct allocation of responsibility.
Knowledge = Confidence = Better Returns
Dealing with strata might seem tricky, but it doesn't have to be. For new investors, feeling confident and avoiding surprises really comes down to having the right info and a fantastic property manager.
Thinking about a strata property or already own one?
Let's chat about how we can help you feel informed and protected.