What is a Strata Report?

If you are buying an apartment, townhouse, or any property under a strata scheme, a strata report is one of the most important due diligence steps you can take. The report gives you a clear picture of the financial health and management quality of the building before you commit to buying into it. For a step-by-step walkthrough, see our guide on how to read a strata report.

What Is Included in a Strata Report?

A comprehensive strata report typically covers the following areas:

• Financial statements: The scheme's current bank balances, income and expenditure statements, and budget forecasts. This shows whether the scheme is financially healthy or struggling.
• Administration fund: The fund covering day-to-day running costs such as insurance, cleaning, gardening, and strata management fees.
• Capital works (sinking) fund: The fund set aside for major repairs and long-term maintenance such as roof replacement, painting, lift upgrades, and waterproofing.
• Special levies: Any additional one-off charges that have been raised or are planned for major works not covered by existing funds.
• Meeting minutes: Minutes from annual general meetings and committee meetings, revealing ongoing issues, disputes, and decisions made by the owners corporation.
• By-laws: The rules governing the building, including restrictions on pets, renovations, noise, parking, and short-term letting (such as Airbnb).
• Insurance details: The building's insurance policy, sum insured, and any recent claims.
• Current disputes and legal proceedings: Any active disputes between owners, or between the owners corporation and third parties.

How Much Does a Strata Report Cost?

A strata report in Australia typically costs between $200 and $350, depending on the provider and the complexity of the scheme. Some strata search companies offer express turnaround (24-48 hours) for an additional fee. Given a strata report can reveal tens of thousands of dollars in upcoming special levies, it is one of the best-value investments in the buying process.

Red Flags to Look For

• Underfunded sinking fund: If the capital works fund is low relative to the building's age and condition, expect special levies in the near future.
• Planned or pending special levies: These can run from a few thousand to $50,000+ per lot for major building defect remediation.
• High arrears: Multiple owners behind on their levies may indicate a financially stressed scheme.
• Recurring defects: Repeated references to water ingress, cracking, or structural issues in meeting minutes.
• Active legal disputes: Ongoing tribunal or court proceedings can be expensive and disruptive.
• Restrictive by-laws: Rules that conflict with your plans, such as pet bans or renovation restrictions.

Understanding how the body corporate works is just as important as the report itself. Read our body corporate explainer for buyers for a full breakdown of levies, meetings, and your obligations.