A body corporate, also called an owners corporation in some states, is the legal entity made up of all the owners in a strata-titled property development. It is responsible for managing the common property (shared areas like lobbies, gardens, driveways, and pools), maintaining the building, arranging building insurance, and enforcing the by-laws.
If you own a unit, apartment, or townhouse in a strata scheme, you are automatically a member of the body corporate. You have both rights and obligations as a member, including the right to vote at meetings and the obligation to pay strata levies.
What the Body Corporate Does
The body corporate is responsible for:
- Maintaining common property: repairs and upkeep of shared areas, including lobbies, lifts, gardens, pools, car parks, and external building surfaces
- Building insurance: arranging and paying for building insurance that covers the structure and common areas
- Financial management: collecting levies, managing the administrative and sinking funds, and budgeting for future expenses
- By-laws: creating and enforcing rules about noise, pets, parking, renovations, and other matters that affect the community
- Meetings: holding an annual general meeting (AGM) and any special meetings as needed
Body Corporate Managers
Most body corporate schemes engage a professional strata management company to handle the day-to-day administration: collecting levies, coordinating maintenance, keeping records, and organising meetings. The cost of this management is paid from the strata levies.
By-Laws and Your Tenants
As a landlord in a strata scheme, your tenants must comply with the body corporate by-laws. Common by-laws cover noise, parking, use of common areas, pets, and waste disposal. It is your responsibility to make sure your tenants are aware of the by-laws and comply with them, and proper tenant screening can help identify tenants who are likely to follow the rules. Repeated breaches by your tenant can result in fines or complaints directed at you as the owner.
Why It Matters for Landlords
The body corporate has a direct impact on your investment. A well-managed body corporate maintains the building properly, keeps levies reasonable, and builds an adequate sinking fund. A poorly managed one can lead to deferred maintenance, unexpected special levies, and declining property values. Understanding these costs is essential when evaluating the total cost of owning a rental property. Before buying a strata property, review the body corporate minutes and financial statements.
propkt tracks strata levy payments and records body corporate details as part of your property management information. Use the expense tracking feature to categorise and monitor all your strata-related costs.