Strata Management Fees in Sydney: What Owners Are Really Paying For

How to compare base fees, additional charges, commissions and overall value

When a Sydney owners corporation compares strata management proposals, the annual management fee is usually the first number everyone notices. It is important, but it is only one part of the cost. Two proposals with similar headline prices can produce very different annual invoices depending on what is included, which services are charged separately and whether the manager receives income from insurers or suppliers.

The more useful question is not simply, 'What is the annual fee?' It is: 'What work will our building receive for that fee, what may cost extra, who will perform the work and how transparent will every charge be?' For a small Art Deco block in Coogee, a busy mixed-use scheme in Kingsford, a converted building in Marrickville or a larger complex in North Sydney, value depends on the service required as well as the number of lots.

This guide explains the main components of strata management fees in NSW and gives Sydney strata committees a practical framework for comparing proposals fairly.

There is no single standard strata management fee

Strata management fees are generally negotiated between the owners corporation and the proposed strata managing agent. The fee should reflect the functions delegated under the agency agreement and the workload involved in administering the scheme. NSW Government guidance recommends that owners corporations identify the tasks they need, compare proposals and examine both the fees and the contract terms before appointment.

Factors that commonly influence the price include the number of lots, the age and condition of the building, the frequency and complexity of meetings, the level of levy and accounting work, the volume of correspondence, the facilities maintained and the amount of current or planned remedial work.

A six-lot residential block may have relatively simple accounts but require close attention to ageing roofs, windows or waterproofing.

A mixed-use building may involve commercial lots, access arrangements, waste contracts and competing operational needs.

A larger complex with lifts, a pool, fire-safety systems or on-site staff will usually require more contractor, compliance and financial coordination.

A building commencing balcony, façade, concrete or waterproofing works may require significant project administration beyond routine management.

Price should therefore be considered alongside the proposed staffing, experience, inclusions and capacity to manage the building properly.

The base management fee

The base or agreed management fee normally covers the recurring administrative, accounting, meeting and secretarial work specified in the agency agreement. It may include maintaining the strata roll, issuing levy notices, paying approved invoices, preparing routine financial statements, maintaining records, preparing an AGM and coordinating ordinary committee communication.

The problem is that the phrase 'standard management' does not mean exactly the same thing at every company. One agent may include routine calls, emails, printing and contractor liaison. Another may charge a lower base fee and add separate amounts for those activities. Committees should read the proposed agreement and schedule of fees together, not rely on the promotional summary alone.

Additional service fees

Additional service fees usually apply when work falls outside the agreed recurring service. That can be reasonable when the work is genuinely exceptional, complex or time-intensive. The key is that the trigger and charging method should be clear before the agreement is signed.

Examples may include additional general meetings, weekend or after-hours attendance, extensive dispute management, Tribunal preparation, complex debt-recovery support, special record searches, unusually large mailouts, major insurance claims and project administration for substantial capital works.

Ask whether the additional work is charged at a fixed price, an hourly rate, a percentage of project value or another basis. Also ask who must authorise it. A committee should not discover the charging method only after the work has commenced.

Disbursements and routine administration charges

Disbursements are expenses or administration charges passed on to the owners corporation. Depending on the agreement, these can include printing, photocopying, postage, stationery, telephone calls, electronic document distribution, archiving or other office costs.

Individually, these charges can look minor. Across a full year and a building with frequent communication, they can materially change the total cost. Request practical examples based on your scheme: an AGM mailout, a levy run, a routine work order and a month with several contractor enquiries. This allows the committee to compare a genuinely inclusive proposal with a lower base fee supported by frequent add-ons.

Meeting charges

Confirm exactly which meetings are included. Some agreements include one AGM but charge for strata committee meetings, EGMs, adjourned meetings, extra preparation time, venue costs, travel or attendance outside business hours. Weekend and evening meetings may have different rates.

The committee should estimate its likely meeting pattern for the next year. A scheme planning major remedial works may require more meetings than one focused on ordinary maintenance. Comparing realistic usage provides a much better picture than comparing the AGM inclusion alone.

Insurance fees and commissions

Insurance remuneration deserves separate attention because it can affect both transparency and perceived independence. Current NSW requirements include itemised insurance quotations showing the base premium, commission, broker fee and GST. Agents must also disclose relevant relationships and benefits. An agent cannot receive an insurance commission where the owners corporation obtained the quote and arranged payment without the agent's help.

Ask whether the strata manager accepts insurance commissions, whether any broker or related party receives a payment and whether the agent charges a separate disclosed service fee for arranging and comparing cover. The committee should be able to understand who is paid, how much is paid and what work the payment covers.

ETSM does not accept commissions or financial incentives from insurers, contractors or tradespeople. Where insurance placement or another additional service attracts an agreed fee, that fee is identified in the management agreement rather than being funded through an undisclosed incentive.

Major works and remedial project fees

Routine contractor coordination is different from administering a major remedial project. Balcony replacement, concrete repairs, façade upgrades, roofing, waterproofing or fire-safety work can involve consultants, scopes, tenders, contracts, access programs, owner communication, progress claims and many months of follow-up.

A project fee can be reasonable when the manager is performing substantial work outside ordinary administration. Before approval, clarify the scope, fee basis, decision-making process and the responsibilities of the manager, engineer, superintendent, lawyer and contractor. A transparent proposal avoids overlap and ensures the owners corporation knows what expertise it is purchasing.

Other charges committees should check

Section 184 certificates and other statutory certificates.

Debt-recovery correspondence and liaison with solicitors.

Physical document storage, retrieval or archival services.

Additional owner, purchaser or records enquiries outside standard service.

Extraordinary insurance claims or extensive loss-adjuster liaison.

Contract termination, records preparation and handover fees.

Annual fee increases, CPI clauses and automatic renewal or extension provisions.

How to compare strata management proposals properly

Create a list of the services your scheme actually used in the past 12 months and the work expected in the next 12 to 24 months.

Ask every shortlisted company to price the same service assumptions, including meetings, routine communication and known maintenance projects.

Compare the management agreement, inclusions and additional-service schedule—not only the proposal letter.

Request a worked example of a typical monthly invoice and a busy month involving extra work.

Confirm commissions, referral benefits, supplier relationships and insurance remuneration in writing.

Ask who will manage the scheme, what support they receive and how many complex buildings they handle.

Review the agreement term, annual increase, early termination and handover provisions.

What good value looks like

Good value is not necessarily the cheapest fee. It is a service that keeps finances accurate, meeting decisions moving, statutory records reliable and maintenance visible while giving the committee enough information to make sound decisions. A responsive manager can also reduce the hidden cost of volunteer committee members repeatedly chasing routine actions.

For older and more complex Sydney buildings, experienced maintenance and remedial coordination can be particularly valuable. Early investigation, clear scopes and organised contractor follow-up can help prevent manageable defects from becoming expensive emergencies. The manager is not a substitute for an engineer, lawyer or builder, but should know when specialist advice is needed and coordinate it effectively.

The ETSM approach to transparent strata fees

ETPG and Ellouise Tyrrell Strata Management provide a boutique, independently owned and operated service across Sydney's Eastern Suburbs, Inner West and Lower North Shore. Our standard fee is designed to include ordinary strata management, accounting, administration and secretarial services without routine disbursement charges for everyday printing, postage, correspondence or ordinary calls and contractor liaison.

Every monthly deduction is supported by a clear, itemised tax invoice. We do not accept commissions or financial incentives from insurers, contractors or tradespeople. Any service that may attract an additional fee is identified in the management agreement so the committee can review the position before appointment.

Clients receive a named manager backed by administration, accounting and senior strata support, secure online access to scheme information and practical assistance with maintenance, compliance, capital works planning and remedial projects.

Frequently asked questions about Sydney strata management fees

How much does a strata manager cost in Sydney?

There is no universal price. The fee depends on the scheme's size, facilities, meeting requirements, accounting workload, maintenance needs and delegated functions. A tailored written proposal is more reliable than a generic per-lot figure.

Is the cheapest strata manager usually the best value?

Not necessarily. A low base fee can be offset by routine disbursements, meeting charges, commissions or limited staffing. Compare the likely total annual cost and the service capacity behind it.

Are all telephone calls and emails included?

That depends on the agreement. ETSM includes ordinary day-to-day calls and routine correspondence within its standard service. Exceptional or specialised work may be treated as an additional service where the agreement says so.

Do strata managers receive insurance commissions?

Some do, subject to NSW disclosure and other legal requirements. Committees should ask for itemised insurance information and written confirmation of every commission, broker fee or benefit. ETSM does not accept insurance commissions.

Why might major remedial work attract an additional fee?

Large projects can require substantial tender, consultant, contract, access, communication and payment administration beyond normal building management. The scope and fee should be disclosed and approved before the additional work begins.

What should we request before appointing a manager?

Request the full proposal, draft agency agreement, additional-service schedule, commission disclosures, sample reporting and confirmation of the people who will service the scheme.

Reviewing your current management costs? Contact ETPG and ETSM for a transparent, tailored strata management proposal for your Sydney building.

Authoritative references

The following official resources support the legislative and regulatory information in this article:

NSW Government - Who's who in strata 

NSW Government - Appointing strata managers and other workers

NSW Government - Disclosure requirements for strata managing agents

NSW Government - Strata repairs and maintenance

NSW Government - Capital Works Fund Planner

NSW Legislation - Strata Schemes Management Act 2015

General information only: This article has been prepared by ETSM and Essential Strata Management for general information and educational purposes only. It does not constitute legal, financial, insurance, building, taxation or other professional advice. NSW strata legislation, regulations and industry requirements may change, and their application will depend on the circumstances of each strata scheme. While reasonable care has been taken to ensure the information was accurate at the time of publication, readers should obtain independent professional advice relevant to their circumstances before acting on this information.