A Strategic Guide to Managing Property Expenses Long-Term

Look, I’ve been living in strata properties for over 15 years now, and if there’s one thing I’ve learned the hard way, it’s this: those quarterly levies aren’t just another bill to grumble about – they’re literally protecting the roof over your head.

When I bought my first apartment back in 2010, I was like most new owners – I’d roll my eyes at levy notices and wonder where all that money was going. These days, after serving on three different strata committees (including one nightmare building with major structural issues), I see things differently.

The Short-Term Trap

God, I still remember that heated meeting in my old building on Lancaster Street. The treasurer – a lovely guy, but totally focused on keeping levies low – kept saying, “The roof’s only leaking in the corner of the garage. Let’s hold off another year.” Several owners nodded along, happy to save a few hundred bucks.

Fast forward 18 months: that tiny leak had silently spread, damaged crucial waterproofing, and rotted supporting timbers. Our “saving” of $15,000 turned into an emergency repair bill of $78,000. Ouch.

This happens everywhere, and I’ve watched it play out time and again:

1. The special levy no one can afford hits right after Christmas
2. The $2,000 balcony repair becomes a $25,000 structural nightmare
3. Neighbors who used to chat in the lift are suddenly avoiding each other over money disputes

That water stain in my current building’s parking garage? I raised hell at our AGM to get it fixed immediately. For many owners corporations feeling overwhelmed by these decisions, getting help from professional strata administration services is honestly worth every penny – they’ve seen these disasters play out before and know exactly what needs fixing first.

What’s Really at Stake

My sister learned this lesson the hard way. She bought a gorgeous apartment in Brisbane – granite countertops, hardwood floors, and the works. But she never checked the strata finances or building condition reports.

Two years later, she tried to sell but kept getting lowball offers. Why? The building looked tired, the strata had no savings, and buyers’ inspectors were flagging potential plumbing issues throughout the complex. She ended up selling for $43,000 less than a nearly identical unit in a better-maintained building across the street.

When buyers look at your place, they’re sizing up:

• Is the foyer clean or does it look like a forgotten 80s movie set?
• Are there enough funds saved for upcoming repairs?
• Will they get slapped with special levies within months of moving in?
• Does the strata committee have their act together?

Building a Solid Financial Foundation

After my experiences (and my sister’s costly lesson), I’ve become a bit obsessive about strata finances. Here’s what actually works:

1. Realistic Admin Budgeting

At my current building, we stopped trying to keep levies artificially low. Instead, we take a hard look at what things actually cost:

• That insurance premium that jumps 15% every damn year
  

  

• The cleaning contract that needs to account for minimum wage increases
• Utilities that keep climbing no matter what we do
• Those random repairs that always seem to pop up

We add a 10% buffer because something always costs more than expected. It’s not sexy, but it works.

2. That All-Important Capital Works Fund

This is your building’s savings account, plain and simple. It’s for the big stuff:

• New roof (ours is due in 2027 – already saving for it)
• Lift replacement (holy moly, these cost a fortune)
• Painting (which is never just painting once scaffolding goes up)
• Concrete repairs (the gift that keeps on giving)

My neighbor Tom thought our Capital Works Fund plan was a waste of money. Then he saw what happened to his brother’s building in Perth when they needed to replace all their plumbing without any savings. Three years later, Tom’s our biggest supporter for keeping this fund healthy.

Making It Work When People Are Involved

Plans are worthless without follow-through. What’s worked for us:

The Boring But Crucial Stuff Someone needs to actually chase late payments, pay the bills on time, keep records, and prepare financial reports. Our previous building manager was lovely but hopeless with this – invoices went unpaid, records were a mess, and we had no idea where we stood financially.

Talk, Talk, and More Talk Our quarterly newsletter now includes a “Where Your Money Goes” section. We show exactly what major expenses hit that quarter and what we’re saving for. Transparency has completely changed the tone of our meetings – people still question costs, but the conspiracy theories have mostly disappeared.

Getting Professional Help For our building, hiring professional management was a game-changer. Yes, it costs money, but having someone who knows the regulations, has systems in place, and isn’t caught in neighbor politics has saved us countless headaches and probably more than they cost.

Why This Matters For Your Bank Account

After years of living through this stuff, I’m absolutely convinced:

• You’ll sleep better not dreading surprise special levies
• Your property will be worth more when it’s time to sell
• You’ll actually enjoy living there more when things work properly
• You’ll save money long-term by fixing things before they become disasters

I wish someone had sat me down and explained all this when I bought my first place. These aren’t just buildings – they’re our homes and usually our biggest investments. Taking care of the finances isn’t just about paperwork; it’s about protecting the place where you live and the money you’ve poured into it.