Strata Title Explained for Australian Property Managers

Strata title changes more than ownership. It changes how property managers handle maintenance, insurance, levies, by-laws and communication. This guide explains how strata title works, how it differs from other title types and what it means for day-to-day property management. In this article, I break down what strata title means, how it differs from other title types and what it means for the day-to-day management of these properties.

What Strata Title Means for Property Managers

Strata title is a system of property ownership designed for multi-unit developments. When someone buys a strata-titled property, they own a specific lot, which could be an apartment, townhouse or villa unit, plus a shared interest in the common property. That ownership structure determines maintenance responsibilities, approval pathways, insurance obligations and day-to-day property management processes.

According to the NSW Government’s common property memorandum, common property can include areas and assets such as roofs, driveways, stairways, gardens, pools, gym equipment and shared building infrastructure. Individual owners are responsible for maintaining their own lot, while shared common areas are managed collectively.

Strata legislation began in New South Wales in 1961. A NSW Parliament research paper notes that NSW strata legislation was originally introduced in 1961 and has been reformed many times since. From those early beginnings, strata has become a major form of ownership for apartments, townhouses and mixed-use developments across Australia.

Why Strata Title Matters for Property Managers 

The Australasian Strata Insights 2024 Report estimates that 15% of Australians, or around 4.1 million people, live in 367,970 strata schemes containing more than 3.17 million lots. For agencies with strata-heavy rent rolls, these figures highlight the need for dedicated strata administration processes rather than a one-size-fits-all approach.

The Main Types of Property Title in Australia

I find strata title is easier to explain when I compare it against the other title types your clients may hold. Here is a breakdown of the key categories.

Torrens Title (Freehold)

Torrens title is the most common form of property ownership in Australia. When a client owns a property under Torrens title, they own both the land and any structure on it outright. This is the standard for standalone houses on individual blocks.

From a property management perspective, Torrens title properties are typically more straightforward to manage. The owner has full control over renovations, maintenance and use of the property, subject to council and planning laws. There is no body corporate, no shared levies and no strata by-laws to manage.

Strata Title

Under strata title, the owner holds title to their individual lot plus a proportional share of common property. As Canstar explains, this shared ownership can cover elements such as driveways, foyers, gardens and recreational facilities.

For property managers, strata title brings a distinct set of responsibilities. You are coordinating between the lot owner, who is your landlord client, and the owners corporation or body corporate that governs the common property.

Knowing who is responsible for what, and where the boundaries sit, helps prevent disputes around repairs, insurance claims and tenant expectations.

Community Title

Community title schemes share some similarities with strata title. They apply to properties that share common areas, such as gated estates or master-planned communities.

The key difference is that in a community title scheme, each property typically has its own clearly surveyed land boundaries. Unlike strata, where lot boundaries are often defined by the building structure itself, community title can feel closer to traditional land ownership with shared facilities attached.

Insurance responsibilities can also differ. In strata schemes, the owners corporation generally insures the building, including common property. In community title schemes, individual owners are often responsible for insuring their own structures, while the community corporation covers the shared areas.

Stratum Title

Stratum title involves ownership of a portion of subdivided land, with the owner also holding a stake in a company that manages the property. It is less common than strata and Torrens title, but you may encounter it in older apartment blocks, particularly in Victoria.

The owner has some shareholder rights over the management entity, but does not hold direct title to the land in the same way as Torrens title.

Leasehold Title

Under leasehold title, the land is owned by the government or another entity, and the buyer has the right to occupy and use it for a defined period. This is common in the ACT, where the government owns the underlying land. Leasehold titles require particular attention to the lease terms, expiry dates and conditions attached to the land.

Company Title

Company title pre-dates strata title. Under this model, a company owns the entire building and residents purchase shares in that company rather than holding direct title to their unit.

Company title is now less common than strata title and can carry lending complications. You may still see it in older Sydney apartment buildings, which means it is worth recognising when reviewing ownership documents for a landlord client.

How Strata Title Governance Works

Governance is one of the areas that makes strata title management distinctly different from managing a standalone house. When landlord clients own strata-titled investment properties, the governance structure affects what you can and cannot do on their behalf.

The Owners Corporation (Body Corporate)

When a strata plan is registered, an owners corporation is automatically formed. As the NSW Government outlines, the owners corporation is made up of all the lot owners in the scheme. The moment a client buys into a strata scheme, they become a member.

The terminology varies by state and territory:

• Owners corporation: New South Wales, Victoria and ACT
• Body corporate: Queensland, Northern Territory and Tasmania
• Strata company: Western Australia
• Strata corporation: South Australia for strata title schemes

The core role is similar across jurisdictions. The governing body manages common property, keeps scheme records, raises levies and makes decisions for the collective interests of lot owners.

The Strata Committee

Many schemes use an elected committee to help the owners corporation or body corporate make day-to-day decisions. In NSW, the strata committee helps the owners corporation make decisions, although the owners corporation chooses what the committee can decide and can overrule committee decisions.

Some larger or more complex schemes hire a professional strata manager, body corporate manager or strata managing agent to handle administrative and compliance functions on behalf of the committee.

The Strata Manager vs. the Property Manager

This distinction trips up a lot of property professionals. A strata manager manages the building. They look after common property, compliance, financial reporting and committee administration.A property manager manages the tenancy. They handle leasing, rent collection, maintenance within the lot, inspections and landlord communication.

The two roles sit alongside each other. As a property manager of a strata-titled investment property, you are accountable to your landlord client. The strata manager is accountable to the owners corporation or body corporate as a whole. Knowing where your responsibility ends and theirs begins prevents costly confusion, especially around maintenance, insurance claims and by-law enforcement.

Strata Levies: What Your Landlord Clients Pay

One of the most frequent questions I see from landlords is about strata levies. These are mandatory contributions paid by all lot owners to fund the operation and maintenance of the strata scheme.

Levies are typically broken into two funds:

• Administrative fund: Covers day-to-day running costs such as insurance, cleaning, gardening, utility costs for common areas and general maintenance.
• Capital works fund or sinking fund: Set aside for future major repairs and replacements, including roofs, lifts, driveways and other long-life assets.

Levy amounts are usually set at a general meeting based on the scheme budget, then divided among lot owners according to their unit entitlement or contribution schedule, depending on the state and scheme type.

For property managers, it is useful to have a working knowledge of levy obligations. You are not giving financial advice, but you can help landlord clients understand why levy notices, special levies and fund balances need to be tracked properly.

Strata By-Laws: How They Affect Your Management

Every strata scheme operates under a set of by-laws or rules that govern how owners, tenants and visitors can use the property. By-laws commonly address noise, parking, pet ownership, renovations and the use of common facilities.

As the Tenants’ Union of NSW notes, by-laws are enforced by the owners corporation and can be challenged if they are harsh, unconscionable or oppressive. For a property manager, this means you need to know the by-laws of any strata scheme you manage and make sure tenants receive the relevant rules at the start of the tenancy.

Key by-law considerations for property managers include:

• Pets: Some schemes require approval before a pet is kept on the property. This affects how you assess applications and what conditions may need to be documented.
• Renovations: If a landlord client wants to renovate their lot, they may need approval for work that affects common property, structure, waterproofing, plumbing or external appearance.
• Short-term accommodation: Several states have rules that allow owners corporations to restrict short-stay rentals. In Victoria, Consumer Affairs Victoria says owners corporations can make rules banning short-stay accommodation from 1 January 2025, but those rules cannot apply to a lot that is the owner or occupier’s principal place of residence.
• Noise and behaviour: Tenants who breach noise or behaviour by-laws can create disputes between the property manager, landlord, owners corporation and other residents. Clear expectations at tenancy commencement prevent problems later.

State-by-State Strata Legislation: What Property Managers Need to Know

Strata legislation is a state and territory matter. The core principles are consistent, but the legislation and terminology vary.

Here is a quick reference:

Western Australia’s strata legislation underwent major reform in 2020, including changes relating to leasehold strata schemes and disclosure. Landgate is now undertaking a five-year statutory review of WA’s strata law, with phase one consultation complete and phase two consultation still to come.

Queensland also changed the termination framework for community titles schemes. The Queensland Government explains that a termination resolution can pass when 75% or more of all lot owners vote yes, although the broader termination process and economic reasons requirements still need to be considered.

NSW has also seen major reform activity. NSW Fair Trading says several changes started from 1 April 2026, including stronger developer accountability, changes to 10-year capital works fund plans and updated strata information certificate requirements.

South Australia needs its own note because the terminology can be confusing. The Legal Services Commission of South Australia explains that new strata plans have not been deposited under the Strata Titles Act 1988 since 1 June 2009, but existing strata corporations remain regulated under that Act.

The Administrative Load of Strata Property Management

Here is something I do not think our industry discusses enough: strata-titled investment properties carry a higher administrative load per property than a standalone house. This is not a complaint. It is reality, and it is worth planning for.

When I talk to property managers about strata properties, I consistently hear the same pressure points:

• Coordinating maintenance requests that cross the boundary between the lot and common property
• Fielding tenant questions about by-laws, pet approvals, parking disputes and noise complaints
• Managing insurance questions where the split between strata building insurance, landlord insurance and tenant contents insurance creates confusion
• Tracking levy notices and special levies before they become a financial surprise for the landlord
• Staying current across multiple strata schemes, each with its own by-laws, committee contacts and financial year cycle

The volume of back-and-forth communication between tenants, landlords, owners corporations, strata managers and tradespeople is significant. For agencies with a growing strata-heavy rent roll, this administrative complexity is one reason principals explore property management outsourcing solutions that can handle coordination and documentation at scale.

What I Check Before Adding a Strata Property to the Rent Roll

Before I would add a strata-titled investment property to an agency’s management process, I would want the basics captured in one place. This is where good administration protects the property manager, the landlord and the tenant experience.

My strata onboarding checklist would include:

• Current by-laws or rules saved in the property file
• Strata manager or body corporate contact details
• Clear notes on lot property versus common property boundaries
• Insurance details, including the strata policy and any known excess arrangements
• Levy notice process, including who receives notices and who tracks special levies
• Tenant onboarding notes for pets, parking, noise, waste, move-in rules and shared facilities
• Maintenance escalation steps when a repair crosses into common property
• A record of committee approval requirements for renovations, access or short-stay use

This is the kind of work that looks small until it is missing. When it is not documented, property managers lose time searching emails, chasing committee contacts or trying to work out whether a repair sits with the landlord or the owners corporation.

That is where a trained admin layer matters. The property manager still makes the judgement calls, but the system behind them keeps the records, reminders and follow-ups moving.

Residential vs. Commercial Strata: Key Differences

Residential and commercial strata share similar governance structures, but the day-to-day management requirements differ. The table below compares the main property types, lease obligations, compliance needs and administrative considerations.

Property managers expanding into commercial strata management should understand the relevant framework before adding commercial or mixed-use properties to their portfolios.

What Strata Title Means for Property Managers: Practical Takeaways

Managing strata-titled investment properties well requires more than a basic definition of the ownership structure. It requires clear systems that account for the additional governance layer.

Here is what I recommend for any property manager building out their strata management competency:

• Know the scheme’s by-laws before you take on the management: Review the by-laws before you sign the management agreement. This protects you and your landlord.
• Build a working relationship with the relevant strata manager: Fast, professional communication with the strata manager saves time and prevents escalation when issues arise.
• Understand the insurance split: Make sure landlord clients understand which elements are covered by the strata scheme’s building insurance and where they need landlord insurance. For a deeper breakdown, I have covered this separately in PMVA’s guide to strata insurance.
• Document everything: Strata disputes between tenants, landlords and owners corporations are more common than in freehold properties. Clear records protect your agency.
• Track levy payments and special levies: A landlord who is surprised by a special levy partway through a tenancy is an unhappy client. Build a process to keep them informed.

For agencies managing large strata-heavy rent rolls, I have seen first-hand how coordination tasks can stretch property managers who do not have strong back-office systems. Maintenance requests, by-law queries, insurance claims, levy tracking and committee correspondence need clear ownership.

Exploring virtual assistant services for property management is something more principals are doing to manage this load without adding local headcount.

FAQs: Strata Title

Growing Your Strata Portfolio With Confidence

Strata title is growing, and the agencies that manage it well will be the ones with clear systems for by-laws, levies, insurance, committee communication and maintenance boundaries. For me, the real takeaway is simple: strata knowledge helps you advise landlord clients with confidence, but strong admin support helps you manage the extra coordination without stretching your team. If your strata portfolio is growing and the follow-up load is pulling property managers away from higher-value work, PMVA’s property management and maintenance support can help you map the repeatable tasks and build the right support around them.