Guide
Body corporate and strata fees: what they are and what investors should check
If you buy an apartment, townhouse or villa, you'll pay body corporate (strata) fees. They can make or break the numbers on a unit, so here's what they cover, what's normal, and what to check before you buy.
By Mossy Taheri, licensed buyer’s agent · Updated
The short answer
Body corporate (or strata) fees are levies every owner in a unit block or complex pays to insure and maintain the shared parts of the property and save for future works. They range from about $1,500 a year in a small block to more than $10,000 in a large building with facilities. Before buying, check the sinking fund, upcoming works and any special levies.
What body corporate fees pay for
- Administrative fund: building insurance, cleaning, gardening, common-area electricity, the strata manager’s fees and routine repairs.
- Capital works or sinking fund: savings for big future costs such as painting, roof replacement, lifts and waterproofing.
- Special levies: one-off charges when the funds aren’t enough for a major cost.
The names differ by state: body corporate in Queensland, strata in NSW and WA, owners corporation in Victoria, and unit titles in the ACT. The idea is the same.
What they typically cost
| Type of property | Typical yearly fees |
|---|---|
| Small walk-up block, few shared areas | About $1,500 to $3,500 |
| Townhouse or villa complex | About $2,000 to $5,000 |
| Mid-size apartment building with a lift | About $4,000 to $8,000 |
| Large tower with pool, gym or concierge | About $8,000 to $15,000 or more |
These are general ranges, not quotes. Coastal buildings, older buildings and ones with known defects often cost more.
How fees change the numbers
A $600,000 apartment renting for $600 a week has a gross yield of 5.2%. With $6,000 a year in body corporate fees, the net yield before other costs falls to about 4.2%. That’s why a unit with a higher advertised yield can return less than a house once fees are counted. Use our rental yield calculator with the actual levies.
What to check before you buy
- A strata or body corporate search: minutes, budgets, levies, the sinking fund balance and its 10-year plan.
- Any planned major works, defect claims, cladding issues or legal disputes in the minutes.
- Special levies already raised or likely soon.
- The building insurance and whether premiums have jumped.
- By-laws that affect renting, pets or short-term letting.
Tax
Regular levies for administration and general upkeep are generally deductible for investors. Special levies for capital works or improvements usually aren’t deductible straight away but may be claimed over time. Check with your accountant. General information only.
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Book a free discovery callBody corporate fees: common questions
What are body corporate fees?
Regular levies paid by every owner in a strata or community-titled building or complex. They fund insurance of the building, cleaning and upkeep of common areas, management, and savings for future major works. The name varies by state: body corporate in Queensland, strata in NSW and WA, and owners corporation in Victoria.
How much are body corporate fees?
Anything from about $1,500 a year for a small block with few shared facilities to well over $10,000 for a large building with lifts, pools, gyms and concierge. Fees are usually set by each lot's share of the building (its unit entitlement).
Are body corporate fees tax deductible for investors?
Regular levies for administration and general upkeep are generally deductible. Special levies for capital works or improvements usually aren't deductible straight away, but may be claimed over time as capital works. Check with your accountant.
What is a special levy?
A one-off charge raised when the body corporate doesn't have enough saved for a major cost, such as fixing defects, replacing a roof or removing cladding. It can run to tens of thousands of dollars per lot, which is why checking the sinking fund matters.
General information only. It doesn’t consider your personal circumstances and isn’t financial, tax, credit or legal advice. Speak to a licensed professional before you act.