Strata Fees Explained: What You Need to Know

At Strata Plus, we’re often asked about strata levies and strata fees – two terms that are sometimes used interchangeably but actually mean different things.

If you’ve ever wondered:

“What are strata fees and why am I paying them?”

“Are they the same as strata levies?”

“Do strata managers charge different fees per building?”

…you’re not alone. Let’s break it down.

What Are Strata Fees?

Strata fees are the charges paid to your strata management company for the professional services they provide. These are separate from levies and are paid by the Owners Corporation as a whole—not by individual owners directly.

Strata fees cover the day-to-day management that keeps your building compliant, organised, and running smoothly, including:

• Coordinating meetings (AGMs, EGMs, and committee meetings)
• Preparing agendas, notices, and minutes
• Maintaining financial records and preparing budgets
• Issuing levy notices and managing arrears
• Organising trades, quotes, and maintenance
• Advising on strata legislation and compliance
• Supporting dispute resolution and insurance claims

In short: strata fees are the cost of engaging a licensed, experienced strata manager to act on behalf of your community.

Strata Fees vs. Strata Levies

Here’s the key difference:

• Strata levies are the contributions all owners make to fund the building’s budget.
• Strata fees are one item within that budget – covering the cost of your management services.

Think of it like this: levies fund the overall operation of your building, and strata fees are one of the professional services paid from those funds.

How Are Strata Fees Governed?

Strata management fees aren’t set at random. They are guided by legislation, contracts, and consumer protections that ensure fairness and transparency.

In NSW, strata fees are governed by:

Strata Schemes Management Act 2015 (NSW): requires all fees to be disclosed and agreed upon in a written contract.

• The agency agreement: approved by the Owners Corporation at a general meeting, outlining services and fees.
• NSW Fair Trading guidelines: ensuring agencies charge fairly and ethically.
• Australian Consumer Law (ACL): protecting owners from misleading or unfair practices.

How Are Strata Fees Paid?

Strata fees are not billed to individual owners. Instead:

• Owners pay levies into the Administrative Fund.
• The Owners Corporation uses that fund to pay the agency’s agreed fee, usually invoiced monthly.
• All transactions are recorded in your building’s financial statements and reported at each AGM.

Who Decides on Strata Fees?

All management fees are:

• Clearly outlined in the written agency agreement
• Approved by the committee or Owners Corporation
• Voted on at a general meeting

Agreements are reviewed at the end of their term or when appointing a new manager, giving committees the opportunity to compare, negotiate, and ensure value.

Do Strata Fees Vary?

Yes. Fees depend on factors such as:

• The size and complexity of the building
• The level of support required
• Whether additional services (like insurance claims or NCAT attendance) are needed

At Strata Plus, our approach is transparent and tailored. We work with committees to create agreements that reflect each building’s needs.

Why It Matters

Understanding the difference between strata fees and levies makes it easier to see where your money is going, and what’s reasonable to expect. It also helps you make informed decisions when comparing strata management providers.

If you would like to learn more about how management fees are structured, or how Strata Plus ensures transparency and value, please get in touch.