Strata fees can look like a simple line in the budget, but they often say much more than “this is what you pay each quarter.” Before you buy an apartment, townhouse, villa or duplex in a strata scheme in NSW, it is worth having strata fees explained properly and records reviewed. They can show how the building is managed and whether the owners corporation is planning ahead.

A review of the strata records can reveal financial and maintenance issues that are not obvious during an inspection."

What Are Strata Fees?

Strata fees, also known as strata levies or owners corporation fees, are regular payments made by lot owners in a strata scheme. These payments help cover the costs of managing, maintaining and repairing common property.

Common property includes areas such as foyers, hallways, gardens, driveways, lifts, roofs, external walls, shared plumbing, car parks and other parts of the building or complex that owners use or rely on together. The exact inclusions depend on the scheme, which is why buyers should always check the strata records instead of assuming every building works the same way.

Strata fees in NSW are usually paid into different funds that cover day-to-day expenses and longer-term building costs. The NSW Government explains that strata fees are set at the annual general meeting and paid into funds for administration costs, building costs and planned works.

Who Pays Strata Fees?

Strata fees for apartments, townhouses, villas or duplexes are paid by lot owners. Once you buy into a strata scheme, these fees become part of your ongoing ownership costs, along with your mortgage, council rates, utilities, insurance for your own contents and any other property expenses.

Why Strata Fees Exist

Strata fees fund the maintenance and operation of shared property. They help the owners corporation cover costs such as insurance, cleaning, garden care, routine repairs, maintenance, professional management and larger future works. Strata costs in NSW are spread across owners and across time, which can make the building easier to maintain and more predictable to own. 

As a buyer, you can see whether the building has a system for paying regular bills, maintaining common areas and preparing for bigger expenses in the strata records. A well-run scheme should not rely on last-minute fundraising every time something breaks. 

Strata Fees vs Freehold Ownership

Buying a strata property is different from buying a freehold home. 

• With a freehold property, you usually pay for the full maintenance of the building and land yourself. If the roof leaks, the fence falls over, or the driveway needs repair, the cost is generally yours to manage.
• In strata, you own your individual lot and share responsibility for common property with the other owners. You contribute through strata fees rather than paying every shared building cost directly on your own. 

In a strata scheme, major building costs are shared across owners. However, it can also mean less personal control—professional management may be involved and decisions around the strata maintenance fund are made through the owners corporation. You may also need approval for certain works, follow by-laws, and contribute to costs approved by the owners corporation, even if you did not vote in favour of them.

What Do Strata Fees Cover?

Strata fees can cover many costs, but inclusions vary from one scheme to another. A small older block may have very different expenses from a large apartment complex with lifts, shared gardens, building management and security systems.

Depending on the scheme, strata fees may cover:

• Building insurance for common property and the structure of the building
• Cleaning and maintenance of common areas that may include foyers, hallways, stairwells, shared bathrooms, bin areas, and car parks
• Gardening and landscaping for shared outdoor spaces
• Shared utilities such as electricity for common area lighting, water for gardens, power for lifts, garage doors, intercoms or other shared systems.
• Building management services 
• Security costs 
• Lift maintenance

Before comparing fees between properties, understand what each fee pays for. A lower fee is not automatically better if it covers less or leaves major works unfunded.

How Are Strata Fees Calculated?

Strata fees are usually calculated from the scheme’s budget, then divided between owners based on their unit entitlement. Unit entitlement reflects each lot’s share in the strata scheme, so larger apartments often pay more than smaller ones in the same building.

How much are strata fees? The final amount can depend on the building’s age, condition, size, insurance costs, maintenance needs, management fees and unit entitlement.

Administrative Funds vs Capital Works Funds

Strata fees are not all placed into one general bucket. They are usually divided into funds that serve different purposes. 

The administrative fund usually covers day-to-day costs, while the capital works fund in strata, previously called the sinking fund, is used for larger capital expenses when they happen. Review both because each fund tells a different part of the building’s financial story.

What Are Special Levies?

A special levy is an extra payment owners may need to make when the owners corporation does not have enough money in its existing funds to cover a cost. It may be raised for urgent repairs, storm damage, building defects, roof repairs, lift replacement, fire safety works, legal costs or compliance upgrades.

Frequent or large special levies in strata can point to poor budgeting, unresolved building issues or a low capital works fund. 

Frequently Asked Questions About Strata Fees

Many buyers ask about strata fees because they want to understand the ongoing cost before they commit. These are the questions that usually come up first.

Are strata fees paid monthly or quarterly?

Strata fees are commonly paid quarterly, although payment arrangements can depend on the scheme. Buyers should check the contract, strata inspection report and fee notices to confirm how often payments are due and how much has been charged in recent periods.

Can strata fees increase?

Yes, strata fees can increase. Fees may rise because of higher insurance premiums, increased maintenance costs, building repairs, professional management fees, new services, compliance works or planned capital works.

This is why payment history matters. You should not only look at the current amount but also review previous increases, budgets and meeting minutes to see whether the current fee is stable, rising steadily or likely to change again soon.

Recent NSW strata law changes have also focused on financial management and transparency, including standard forms for 10-year capital works fund plans from 1 April 2026 and further disclosure measures for strata information certificates.

What happens if owners do not pay strata fees?

If owners do not pay their strata fees, the owners corporation may face cash flow pressure. That can affect its ability to pay bills, maintain the property or fund repairs on time.

Unpaid strata fees can also lead to recovery action against the owner who has not paid. NSW Fair Trading has also introduced standard forms for payment plans for overdue strata contributions, as well as additional rules and guidance.

Are high strata fees always bad?

High strata fees are not always bad. A higher fee may be reasonable if the building has lifts, a pool, landscaped grounds, security systems, building management, extensive common areas or strong insurance requirements.

The real question is whether the fees match the building's maintenance needs and future obligations. A luxury complex with multiple facilities will usually cost more to maintain than a small block of eight units with no lift, no pool and limited common property. High fees can also be a sign that the owners corporation is planning responsibly for future works. 

Can strata fees affect property value?

Yes, strata fees can affect property value because they shape how buyers view the true cost of ownership. If you are thinking about selling property in NSW, keep in mind that high fees may reduce buyer interest if they appear excessive for the property, while very low fees may also concern careful buyers if the records suggest the scheme is not saving enough for repairs. Strata records can also influence buyer confidence during the contract review stage, especially if they show poor planning or unresolved building issues.

Red Flags Buyers Should Watch For

Strata records can reveal concerns that are not obvious during an open home, such as unusual fee increases, low fund balances, frequent special levies, and unresolved disputes between owners. 

Before buying property in NSW, the strata report should be reviewed carefully, not skimmed for the current fee amount. Useful records to check include:

• Current and Previous Fee Notices: Look for very low strata fees, sharp increases or payment patterns that do not seem to match the building’s condition, facilities or maintenance needs.
• Administrative Fund and Capital Works Fund Balances: Low balances may suggest the scheme is not collecting enough to maintain the building, prepare for future repairs or avoid future special levies.
• Annual Budgets and Financial Statements: Check whether the scheme has enough money to cover regular expenses and known repair needs.
• Capital Works Fund Forecasts: Review whether upcoming works, such as roof repairs and concrete remediation, have been planned properly.
• Annual General Meeting and Committee Meeting Minutes: Repeated mentions of the same issue, such as water leaks or lift faults, can suggest unresolved repairs or future costs.
• Insurance Details: Check whether the building has appropriate cover and whether premiums or claim history point to increased financial pressure.
• Special Levy Records: Repeated special levies can suggest the existing funds have not been enough to cover major or unexpected costs.
• Building Defect Reports or Repair Discussions: Defects, delayed maintenance and repeated repair complaints can affect future costs and the overall condition of the property.
• By-Laws: Unusual or restrictive by-laws may affect how you can use, renovate or live in the property.
• Legal Disputes or Tribunal Matters: Disputes involving owners, builders, developers, strata managers, contractors or the owners corporation can create extra costs and slow decision-making.
• Records of Unpaid Strata Fees: Frequent unpaid fees may suggest financial stress, poor collection processes or tension within the scheme.

One small repair note may not matter much, but low funds and discussion of future special levies together can tell a very different story.

Look Past the Strata Fees

Strata fees can tell you a great deal about a property, but only when they are read in context. For some buyers, a strata report for a property in NSW may confirm that the building is well managed. For others, it may reveal concerns that were not visible during the inspection. Either way, the value is in knowing before exchange, not after settlement.

Before you buy into a strata scheme, speak with our NSW conveyancing experts. Our team can review the contract and arrange the strata search in NSW, helping you look past the advertised price and the current strata fee amount. 

The strata report can reveal future special levies, unresolved defects, insurance concerns and disputes that may affect both ownership costs and resale value. We review these issues before exchange so you know what you're buying into.

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