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The rise of strata management in Australian residential buildings and what it means for you

With more Australians moving into apartments and townhouses, some older people are encountering strata management for the first time. Here’s what to know to avoid problems. 7 min read

Last updated: 22 July 2025

Introduction

As an older Australian, are you thinking about becoming an apartment owner for the first time? Or maybe you’re an experienced apartment dweller. In either case, you’ll be part of the sometimes confusing world of strata management.

While research shows that most older people would prefer to live in a house1, the current realities of the Australian housing market make apartment living a practical alternative, whether you’re downsizing or buying for the first time. And this communal style of living is on the rise, with about 10% of Australians – or just over 2.5 million people, including older people – living in apartments in 2021.2,3

There are a number of potential benefits – and some challenges – that come with apartment living. One factor catching many people off guard, and in some cases causing significant issues, is the impact of strata management. This is particularly important for older people who may have less financial security or flexibility to respond to the things that can happen under strata management.

You may find strata management causes no problems at all, or you could encounter financial stress or even abusive behaviours. The key is to understand fully what strata management is and what rights you have in the situation.

In this article, you’ll get a brief overview of how strata management works in Australia and some general tips about what you need to know to navigate it.

What is strata?

‘Strata’ is a legal term used in property law. According to the Strata Community Association4, strata title allows individual ownership of part of a property (called a ‘lot’, usually being an apartment or townhouse) combined with shared ownership in the remainder (called ‘common property’) through a legal entity (called the ‘owners corporation’).

The New South Wales Government has a great webpage that explains the key roles in strata arrangements. It’s generally relevant for all states and territories.

According to the National Debt Helpline, owners corporations set the strata levies each year, and they are usually paid quarterly by each of the owners.

What makes strata complicated?

Strata title automatically draws owners into complex legal and financial relationships with their neighbours, and this is why complications can arise, says Professor Cathy Sherry, a leading Australian expert on strata and community title.5 As Cathy explains, becoming a property owner under a strata scheme means you automatically:

  • have a share in collectively owned common property, like building foyers, driveways and gardens

  • become a member of a governing body corporate or owners corporation

  • are then covered by regulations, privately written by-laws and lots of state or territory legislation

  • have a legal obligation to pay annual levies for the upkeep of your building, including insurance.

What can go wrong with strata title?

In 2024, Shelter New South Wales, the state’s peak body for housing policy, looked closely at why strata management schemes were contributing so strongly to financial stress and housing insecurity for low-income households and, especially, older people.6It found these problems:

  • Hidden fees and unexpected rises in levies. While apartment buildings can be easier to maintain than freestanding and ageing houses, they still need maintenance. The upkeep of communal amenities like playgrounds, swimming pools, gyms, lifts and underground carparks must be collectively paid for by the apartment owners, whether or not they use the amenities. Maintenance levies can be expensive, and in some cases, owners are being required to pay levies they can’t afford or were not expecting.

  • Complex decision-making by the owners corporation. Some people find taking part in their building’s administrative processes very difficult. This may be due to inexperience with strata and committee processes, low confidence in committee settings, language barriers or lack of financial, numeracy or literacy skills.

  • Conflicts of interest between different professional groups managing the strata scheme. Strata management companies are independent businesses contracted to take care of the affairs of the lot owners, such as conducting meetings, collecting and banking levies, and arranging property maintenance.7 There have been cases of strata management companies not acting in the interests of the lot owners.

Strata management and elder abuse

As Shelter New South Wales points out, not all developers or businesses in the strata sector act unfairly or unethically. But there is evidence of some property developers and strata management businesses prioritising profits over the welfare of residents.

Some of these issues have attracted significant community and media attention, with an ABC Four Corners story in September 2024 putting a spotlight on the unethical behaviour of some people in the strata management sector.8

Be aware that poor strata management can expose you to elder abuse. If you’re unfamiliar with strata processes, your English isn’t strong, or you don’t know a lot about accounting and management, it may be easy for you not to realise that you are being treated in ways that deny your rights.

Examples of abusive treatment

Watch out for:

  • fees charged for nothing, unauthorised charges, strata bills left unpaid and affecting you (financial abuse)

  • intimidating behaviour by someone in the strata management business or owners corporation – yelling, exclusion, starting rumours, making threats, verbal abuse (psychological abuse)

  • misuse of authority – approving unnecessary expenditure or costly building works, using strata accounts for personal gain (financial abuse)

  • withheld information, pressure to agree to something (psychological or financial abuse).

What to do

If these things happen, or you suspect they are happening, you don’t have to put up with it. You have rights, as an older person and as an apartment resident, and there are steps you can take to assert your rights.

For example, you could:

  • speak directly to the person involved, if you feel safe and comfortable doing so – perhaps have someone with you during the conversation

  • raise the matter with the owners corporation committee

  • seek mediation – see the contact list at the end of this article

  • lodge a formal complaint with the strata management business or your state or territory’s Fair Trading department

  • seek legal advice from a lawyer or community legal centre.

Keep accurate written notes about what occurred, when and who was involved. It may be helpful to check the building’s by-laws, owners’ agreement or strata management agreement so that you understand the grounds for your grievance.

 

Resolving the financial distress of unpaid strata levies

Strata levies are an important bill that you must pay, with serious consequences for non-payment. An ABC News story in 20239 put the spotlight on the rising number of bankruptcies due to unpaid strata levy debts. Federal Court data, it noted, found that 10% of all forced bankruptcies across Australia were from strata levy debts.

Shelter New South Wales also noted that people on low and/or fixed incomes –which includes many older people – are especially vulnerable to the impact of large or unexpected strata levies.

If you receive court documents or letters of demand about unpaid strata levies, contact the National Debt Helpline on 1800 007 007 straight away for independent financial advice. You can also check out the helpline’s website for very useful, although general, advice.

If you’d like more information about strata living, visit your state or territory government’s website:

This Living in strata webpage, by the NSW Government’s Fair Trading department, provides an excellent overview of strata management that’s broadly relevant across Australia. It suggests, for example, that before buying a strata property, prospective owners should:

  • read the by-laws to check the community rules match your lifestyle

  • get a strata report and a building inspection report done.

The Victorian Government’s Buying an apartment or unit - checklist is also generally helpful in any state or territory.

Find out more about mediation

by Cathy Callaghan

Cathy is an advocate for better and fairer housing policies, based in New South Wales.

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