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Body Corporate Fees and Apartment Living Costs

If you’re buying an apartment, the mortgage is just part of your ongoing costs. Body corporate fees (also called strata fees or body corporate levies) can be substantial and are often underestimated by first-time buyers.

Body corporate fees cover the cost of managing and maintaining shared areas in an apartment building—lobbies, hallways, gardens, pools, gyms, and building structure. These fees also cover building insurance, utilities for common areas, and the salary of building management staff.

Fees vary widely. A modest apartment in an older building might have body corporate fees of AUD 100–AUD 200 per month. A newer, luxury apartment with extensive amenities might charge AUD 400–AUD 800+ per month. Some buildings charge AUD 1,000+ per month for premium locations or new constructions.

Here’s what’s included (typically):

  • Building insurance
  • Water and common area utilities
  • Maintenance of hallways, gardens, lobbies
  • Elevator maintenance and repairs
  • Pool and gym maintenance
  • Building management and administration
  • Cleaning of common areas
  • Pest control
  • Building repairs and upgrades

What’s not included: your own rates (you still pay those to your local council), your own utilities (electricity, gas, internet), or your own unit-specific repairs (internal plumbing, appliances).

Fees are assessed quarterly or annually, and they’re not optional—you have to pay them to live in the building. If you don’t pay, the building can place a lien on your property.

One important thing: fees often increase each year. Buildings budget for inflation and for upcoming major works. A building scheduled for facade repairs, roof replacement, or lift upgrades might see fee increases of 10%+ in the year those works happen.

Before buying an apartment, always:

  1. Ask the real estate agent or seller for the last 3 years of body corporate fee statements
  2. Review the building’s capital works schedule (upcoming planned upgrades)
  3. Check the building’s financial reserve (is the sinking fund healthy?)
  4. Ask about special levies (one-off charges for urgent repairs)

Here’s an example of total apartment living costs. You’re buying a AUD 500,000 apartment:

  • Mortgage repayments: AUD 2,800/month
  • Rates: AUD 250/month
  • Body corporate: AUD 300/month
  • Insurance (contents + landlord if renting): AUD 100/month
  • Utilities (electricity, water, internet): AUD 150/month
  • Total monthly: AUD 3,600

This is significantly higher than the mortgage alone. Many first-time apartment buyers are shocked by the total cost once body corporate and rates are factored in.

When comparing apartments, don’t just look at mortgage costs—factor in body corporate fees. A AUD 500,000 apartment with AUD 200/month body corporate is better value than a AUD 480,000 apartment with AUD 600/month fees, all else being equal.

Also check the building’s reserve fund health. A poorly-maintained reserve fund might mean surprise special levies when major repairs are needed. The building manager or body corporate secretary should provide a statement on reserve fund status.

Finally, remember: body corporate fees give you recourse. If the building manager is negligent, you can vote at body corporate meetings to change management or pursue legal remedies. This is different from owning a house where maintenance is entirely your responsibility.

Understanding body corporate fees upfront helps you budget accurately and choose the right apartment for your financial situation.