Apartment Body Corporate Fees

Apartment Body Corporate Fees

In the world of strata properties in Australia, Apartment Body Corporate Fees emerge as a pivotal aspect for every owner to comprehend. These fees are instrumental in sustaining the shared spaces of strata-titled buildings, ensuring their upkeep and functionality. However, a cloud of ambiguity often surrounds the concept of body corporates. This guide aims to demystify Apartment Body Corporate Fees, shedding light on their purpose, computation, and impact on property investors. For strata property owners seeking to deepen their understanding of Apartment Body Corporate Fees within the Australian context, this article serves as an essential resource.

What are Body Corporate Fees? 

Apartment Body Corporate Fees, also known as strata fees or levies, are a fundamental financial commitment for owners within a strata-titled building or community in Australia. These fees are not arbitrary but are calculated based on each unit's lot entitlement. Apartment Body Corporate Fees are recurring payments that go towards the management, upkeep, and restoration of shared spaces and amenities. This includes areas like elevators, gardens, swimming pools, hallways, gym and the exteriors of buildings.

Several factors influence the quantum of Apartment Body Corporate Fees. These encompass the building's size, occupant numbers, age, and overall condition. Additionally, the building's maintenance history plays a crucial role; newer buildings typically necessitate less upkeep and, consequently, lower fees, unlike older structures requiring more intensive maintenance.

Coverage of Body Corporate Fees 

The remit of Apartment Body Corporate Fees is extensive, covering several key areas crucial for the smooth functioning of a strata scheme. These fees ensure that all common areas and shared amenities are well-maintained and operational. Here's a breakdown of what these fees typically cover:

  • Common Area Maintenance: This includes the upkeep of shared spaces like gardens, pools, and corridors. Regular cleaning, landscaping, and general repairs fall under this category.

  • Building Insurance: A significant portion of the fee goes towards insuring the building. This covers common property, structural elements, and fixtures against various risks.

  • Administrative Services: Administrative costs such as strata management services, legal and accounting fees, and other general administrative expenses are funded by these fees.

  • Utilities and Services: Additionally, Apartment Body Corporate Fees help cover the costs of communal utilities, including electricity, gas, and water. They may also encompass services like refuse collection and pest management.

  • Sinking Fund: This is a reserve for major future expenditures like replacing a lift or repainting the complex, ensuring financial readiness for significant capital works.

  • Additional Amenities: Should the strata provide facilities such as fitness centres, parking facilities, or security services, the expenses related to these amenities are encompassed within the Apartment Body Corporate Fees. 

Understanding the scope of these fees helps property owners appreciate the value they add to the living experience in a strata-titled property.

Calculation of Fees 

The calculation of Apartment Body Corporate Fees hinges on an annual budget set by the body corporate committee or a designated strata manager. This budget is meticulously crafted, considering various expenses such as administrative costs, maintenance and repairs, utilities, reserve fund contributions, and additional amenities. The total budgeted amount is then equitably divided among the owners, based on their lot entitlement. This ensures a fair distribution of costs, reflecting the size and value of each unit within the strata scheme. It's vital for potential investors to factor in these fees when assessing the viability of a property investment, as high strata fees could significantly impact rental yield.

Responsibilities of a Body Corporate 

A body corporate holds a range of responsibilities, crucial for maintaining the harmony and functionality of a strata scheme. These responsibilities include:

  • Maintenance and Management: Overseeing the upkeep, management, and control of common property on behalf of all owners.

  • Financial Administration: This involves calculating Apartment Body Corporate Fees, establishing payment schedules for residents, and managing the body corporate's financial affairs.

  • Rule Enforcement and Asset Management: Establishing and implementing regulations related to the conduct of residents and the use of shared spaces, in addition to overseeing and maintaining the assets of the body corporate.

  • Insurance and Record Keeping: Ensuring adequate insurance coverage for the building and common property, and meticulously maintaining records such as meeting minutes, owner details, financial accounts, and asset registries.

Navigating these responsibilities effectively is key to a well-managed and harmonious strata community.

Understanding Body Corporate Budgets 

Body corporate budgets are pivotal in determining the fees levied on strata property owners. Key aspects of these budgets include:

  • Annual General Meeting (AGM): At the AGM, the body corporate committee presents the proposed budget, allowing owners to review, discuss, and vote on its approval.

  • Fee Apportionment: The apportionment of fees is typically based on the unit’s lot entitlement, which considers the property's size, location, and other factors.

  • Special Levies: Occasionally, unforeseen repair costs or insufficient reserve funds may necessitate the imposition of special levies, in addition to the regular fees.

  • Fee Increases: Annual or necessary fee adjustments may occur to meet the evolving needs of the strata scheme. These increases are subject to a majority vote at the AGM.

Understanding the budgeting process is crucial for property owners to anticipate and plan for their financial contributions towards the strata scheme.

Benefits of Paying Body Corporate Fees 

Paying body corporate fees yields several significant benefits for property owners within a strata scheme, including:

  • Proper Maintenance: Regular contributions ensure that common areas and facilities are well-maintained, enhancing the overall value and appeal of the property.

  • Financial Stability: The sinking fund, bolstered by body corporate fees, acts as a financial safeguard for future capital works and unforeseen expenses, mitigating the need for large, unexpected levies.

  • Professional Management: The engagement of a strata manager or management company, funded through these fees, allows for efficient administration and ensures compliance with strata regulations.

  • Shared Responsibility: By contributing to body corporate fees, owners collectively share the financial burden of maintaining and improving the property, fostering a sense of community and mutual benefit.


Apartment Body Corporate Fees are integral to the effective functioning and maintenance of strata-titled properties in Australia. Understanding how these fees are calculated, what they cover, and their role in a strata scheme is crucial for property owners. By actively participating in body corporate processes and ensuring timely fee payments, owners contribute to a well-maintained, financially stable, and harmonious community.

If you are an apartment or property owner requiring assistance with owners' corporation matters, Pearson Chambers Conveyancing is here to help. With our expert guidance and support, you can effectively advise you on your strata building. Contact us today at 0421 058 106, email us at contact@pearsonchambers.com.au, or visit our website at www.pearsonchambers.com.au for more information and assistance.