Why Are My Strata Fees So High? (And What You Can Do About It!)

If you’ve ever taken a look at your strata fee notice and thought, “Why on earth is this so high?”, you’re not alone. Strata fees are a common source of frustration for property owners, but they’re also essential for keeping your building running smoothly. So, let’s break down why your fees might be higher than you expect—and what you can do to have your say on them!

1. What Exactly Do Strata Fees Cover?

First things first: your strata fees cover a whole lot more than you might realise. Think of them as a contribution to the upkeep and smooth operation of your building. Here’s a quick rundown of where that money goes:

• Maintenance of Common Areas: This includes things like gardens, hallways, and shared facilities like pools or gyms.

• Building Repairs: Fixing the roof, painting the exterior, or addressing plumbing issues all come out of the Capital Works Fund.

• Insurance Premiums: Strata insurance, which covers the building and common property, is a big expense.

• Emergency Funds: Your building’s Capital Works Fund is like an emergency savings account—set aside for unexpected repairs or future large-scale projects.

So while it might feel like you’re shelling out a lot each quarter, those fees are working hard behind the scenes to maintain your property.

2. Rising Costs of Maintenance and Services

Just like everything else, the cost of maintaining a building has been going up over the years. Increases in labour, materials, and service charges all impact your strata fees. For example:

• Repairs and Tradespeople: If the building needs frequent repairs, the costs of hiring contractors can add up quickly.

• Insurance Premiums: As the building ages or if there’s been a recent claim, the insurance premiums might increase.

• Utilities: Your strata fees might cover shared utilities like water, electricity, or even heating for common areas.

If your building has additional amenities—like pools, gyms, or elevators—those can also drive up costs, as they require more regular maintenance.

3. Big Projects and Long-Term Plans

Your building’s long-term health is another factor. Sometimes, higher strata fees are a result of strategic planning. Strata committees may be preparing for:

• Major Upgrades: Things like repainting the building, upgrading security systems, or modernising common areas.

• Capital Works Fund Contributions: A well-funded Capital Works Fund is crucial for covering future large expenses, like roof replacements or structural repairs, without needing to hit owners with a special levy.

If your fees seem higher lately, it could be because the committee is planning for the future and trying to avoid any nasty financial surprises.

4. Emergency Repairs

Sometimes, strata fees jump unexpectedly due to emergency repairs. A leaky roof, faulty plumbing, or damaged structural elements need urgent attention, and the costs get passed down to owners through strata fees or special levies. These unexpected expenses can be a strain, but they’re necessary to maintain the safety and integrity of the building.

5. Inefficient Management or Poor Budgeting

If none of the above reasons seem to explain why your strata fees are so high, it could be due to inefficient management. Poor planning, overpaying for services, or a lack of competitive quotes for repairs and maintenance can all lead to unnecessary costs. In this case, it might be time to review the budget with a fine-tooth comb and hold your strata committee or management company accountable.

6. What Can You Do About It? Attend Meetings!

The good news is, you’re not powerless when it comes to your strata fees! As an owner, you have a say in how the building is run, and that includes where your money is going. Here’s how to get involved:

• Attend the Next Strata Meeting: This is where the budget is discussed, and decisions are made about where to allocate funds. If you’re unhappy with high fees, showing up and making your voice heard is the best way to influence change.

• Review the Budget: Ask for a breakdown of the strata budget and raise any concerns you have about where money is being spent.

• Propose Alternatives: If you think the building could save money by using different contractors, cutting unnecessary services, or planning maintenance better, bring those ideas to the table.

Your participation is key to making sure the building is managed efficiently—and potentially reducing your strata fees in the future.

Want More Control Over Your Strata Fees? QT Strata Can Help!

At QT Strata, we believe in transparent management and working closely with owners to ensure your building is being run efficiently. If you think your strata fees are too high, come to the next meeting and have your say! And if you want to work with a strata management company that listens, we’d love to chat.

Contact QT Strata today—we’re always happy to help!