Each scheme may have a set of rules that all lot owners and occupants should follow. These may include restrictions on the presentation of their lot and any behaviour that may affect other residents. 

For example, loud noises, keeping pets and storing bulky items such as boats and caravans may not be allowed.

Where a ‘lot’ has been given on rent, the tenants too would have to follow the strata scheme and the listed rules.  The relationship between the tenants and the ‘lot’ owners within a strata scheme can be seen in practice:

Case study done by Taylors Property Management Specialists:

It was seen that when a tenant reported damage to the television aerial in the building, the responsibility of repairing it fell to the strata or owners corporation as the aerial was on common property. 

The landlord of the property also paid capital work fund levies to cover a part of the repair costs.

A repair request was given in writing and it became the landlord’s responsibility to make sure the repairs were completed due to their obligation to the tenant. 

In this particular situation, however, Taylors Property Management Specialists themselves followed up with both the strata and the tenant until the aerial was fixed.

All ‘lot’ owners are required to pay strata fees to the body corporate periodically for the maintenance of the property’s common areas.

The fees are calculated based on a number of factors:

• The number of units by each ‘lot owner’. An owner of a two-bedroomed unit might have to pay more than the owner of a single-bedroomed unit.
• The age of the lot 
• The size of the property complex 
• The type of amenities and the level of maintenance required - amenities like gyms and swimming pools would render high strata fees 
  
  

What Do Strata Fees Cover?

To make sure the strata property remains in good condition for all ‘lot’ owners and tenants, the body corporate has to pay for a number of expenses. 

• Building maintenance and those who are responsible for it (building managers)
• Management fees
• Insurance premiums
• Ad hoc repairs
• Maintainence of utilities
  
  

The strata fees are generally paid at the start of each quarter and consist of 3 levy types: 

Administrative Fund Levy

This covers the daily expenses of the scheme, which include gardening, cleaning, Insurance premiums, facility management charges, and utility fees. 

Sinking Fund or Capital Works Levy

Capital expenses such as repainting, roof repairs, and install something in the common area fall under sinking fund and capital work levy. 

Special Levy

Strata fees accumulated under special levy can be tapped into when an expense demands more than what the sinking fund allows.