Body Corporate (Strata Fees)

Definition

Body corporate (also known as owners corporation or strata fees) are regular levies paid by owners of units, apartments, and townhouses to cover the maintenance and insurance of common property areas. Fees vary widely depending on the size of the complex, age of the building, and amenities provided. They may include a sinking fund contribution for major repairs.

Why It Matters for Property Investors

Body corporate fees are a significant ongoing cost for unit and apartment investors and directly reduce your cash flow and yield. High fees can make an otherwise attractive property unviable. Before purchasing, investors should review the body corporate records, including meeting minutes, financial statements, and any planned special levies. Older buildings with lifts, pools, or gyms tend to have higher fees. Always factor these costs into your cash-flow analysis.