Levies and Long-Term Value

Strata levies are a frequent pain point for owners and a common source of reputational pressure for developers long after the final settlement. As buildings age and communities settle in, questions often arise: Why are our levies rising? Could we have planned differently?

The reality is that long-term operational costs are shaped early, often before the first lot is sold. The decisions made during design and delivery have a lasting impact on how efficiently a building runs and how cost-effectively it can be maintained.

At Strata Plus, we’ve seen firsthand how developments that consider operational efficiency from day one consistently deliver better outcomes for owners and developers alike.

Design Today. Reduce Levies Tomorrow.

Operational decisions made during development can have lasting financial consequences for future owners and impact how your building is perceived at market.

Here’s what that looks like in practice:

• In North Sydney, a building required private waste collection due to design limitations that excluded council trucks. Combined with a lift serving just two floors, levies were significantly higher than comparable buildings, which affected their presales. As we were engaged after completion, we were not able to provide advice.
• In a similar project, Strata Plus was consulted early on. We worked with the design team to reposition the waste room for improved access, resulting in reduced cleaning and waste removal costs from day one.
• Two identical buildings, delivered by the same developer but with different fire safety engineers, resulted in the annual fire safety costs nearly double those of their neighbouring counterpart.

Engaging early with a strata advisor can help identify red flags, benchmark costs, and shape more cost-efficient outcomes, without compromising quality.

Associate Director Joshua Jasnos shares key considerations to help developers reduce future outgoings, support sustainability goals, and strengthen long-term buyer satisfaction.

Energy Efficiency Starts with Equipment Selection

Reducing energy use is one of the simplest and most impactful ways to keep levies down. That means:

• Selecting high-efficiency plant and equipment.
• Using LED lighting, sensors, and timers to reduce consumption, especially in basements and car parks.
• Implementing variable speed drives, carbon monoxide sensors, and 2-speed motors for standard services like ventilation, irrigation, and cooling towers.
• For buildings with pools, smart filtration, temperature controls, and pool blankets can significantly reduce heating costs.
• Lifts should be fitted with standby mode technology to avoid unnecessary power draw.
• Invest in innovative building technology that monitors and flags equipment faults early.
• Where appropriate, consider solar power — not just for offsets, but potentially for selling back to the grid.
• Use temperature sensors to avoid unnecessary heating and cooling.
• Keep plant rooms properly ventilated to reduce reliance on mechanical cooling.
• In large precincts, look at solar-powered street lighting and stormwater reuse for irrigation.

Landscape for Longevity

Beautiful gardens shouldn’t cost a fortune to maintain. But they often do — especially when unsuitable or water-thirsty species are planted. Choose native and drought-tolerant species. Ensure irrigation is well-planned and supported by rainwater capture systems to minimise water bills.

Avoid costly replanting cycles due to poor positioning or maintenance access issues.

Engage Facilities Management Early

Operational input at the design stage is often overlooked, yet invaluable. A facilities management consultant can advise on the true cost implications of layout choices in areas like waste rooms, loading docks, and shared amenities.

Early advice can reduce long-term expenses in cleaning, security, waste, and concierge services. Explore shared service models with neighbouring buildings to unlock economies of scale.

Build the Budget Before the Build is Complete

Ensure all common property is clearly defined and captured in a central asset register. Go to competitive tenders early for major contracts (cleaning, lifts, waste, insurance, etc.). Use realistic service levels to avoid overcommitting owners in the first few years.

Importantly, apply realistic service levels, not aspirational or underspecified ones. This prevents overcommitting owners in the first years of operation and reduces the risk of levy shock in year two, a key factor in buyer dissatisfaction and a potential reputational risk for developers.

It’s also best practice to make allowances in the first-year budget for essential items like lift maintenance and fire compliance, even if these remain under the Defects Liability Period (DLP). By capturing the true operational profile for year two, you create a transparent levy structure that builds trust and reduces friction when the owners corporation assumes control.

In a competitive market, reputational capital matters. Buyers remember how well a building performs — not just how it looks at handover. A well-structured, forward-looking budget is one of the simplest ways to protect your brand, reduce post-settlement issues, and ensure your developments are as easy to live in as they are to sell.

Apportioning Accurately

In mixed-use developments, inaccurate metering is one of the most common causes of inflated levies and disputes. Ensure services like HVAC, lifts, water pumps, and exhaust fans are individually metered or accurately apportioned to the correct entity, whether it’s residential, retail, or commercial.

Prioritise Quality Handover Documentation

The quality of handover documentation can dramatically impact how well a building is run, and how expensive it becomes to maintain.

Avoid generic, templated packs. Instead, provide logical, building-specific documentation with:

• Clear service level expectations
• Warranty timelines
• Preventative maintenance schedules
• Contractor scopes of work
• Notes on how equipment choices impact energy and water use
• Good documentation supports planned, cost-effective maintenance. Poor documentation leads to reactive fixes, higher costs, and ongoing frustration.

Partnering Early, Delivering Value Long-Term

There’s no one-size-fits-all solution, but thoughtful design, accurate forecasting, and clear documentation can make a meaningful difference. Developers who embed operational thinking from the outset not only create more affordable communities — they also set the foundation for trust, reputation, and satisfied owners.

Strata Plus works with developers from concept to completion to ensure your building is designed for efficiency, managed with insight, and prepared for long-term success. Contact us for a consultation.