Investing in a Melbourne Apartment? What to Look For in the Body Corporate

Buying an apartment in Melbourne doesn’t just mean owning a home—it means becoming part of a community. That community is run by the body corporate in Melbourne, a group that oversees how your building operates, who pays what, and what you can and can’t do.

If you overlook how the body corporate works, you might run into surprise fees, repair issues, or neighbour disputes. Here’s what you need to know before you commit.

1. Understanding What a Body Corporate Really Is

When you purchase an apartment, you’re not only getting a unit—you’re entering into joint ownership of the shared spaces. The body corporate, also known as the owners corporation, takes charge of those shared responsibilities.

They look after building insurance, shared-area maintenance, strata meetings, and finances. Whether it’s garden upkeep or repainting the foyer, it’s their job. They also enforce by-laws that affect how you live, from whether you can have pets to what kind of renovations need approval.

These shared responsibilities may seem small at first, but they can shape your lifestyle and investment in a big way. That’s why having key insights on Melbourne’s body corporate benefits for homeowners is essential when weighing up your options.

2. Fees and Levies: Know What You’ll Pay

Every apartment comes with ongoing costs. These take the form of body corporate fees, or levies, and they’re used to cover everything from cleaning stairwells to major repairs. There are usually two types—administrative and sinking fund contributions.

The administrative levy pays for everyday operations. The sinking fund helps cover big-ticket repairs like roof replacements. Don’t be surprised if a high-end building with a gym and concierge asks for more—it all depends on what’s being maintained.

Before signing anything, ask for the body corporate’s budget, recent financial statements, and whether other owners are behind on payments. Buildings that look fine on the surface can still be financially unstable. For a clearer picture, explore what’s involved in uncovering Melbourne body corporate essentials for apartment investors.

3. Rules That Could Affect How You Live

Living in a strata-managed property means following by-laws. These are the rules every owner and tenant must follow. From pet ownership and balcony use to noise restrictions and short-term letting limits—these guidelines define daily life.

They might restrict things you take for granted. Planning to list your unit on Airbnb? Some buildings ban short stays. Want to keep a cat? You might need written approval.

By-laws differ across buildings, so don’t assume they’re all the same. Before you commit, read them carefully and ask your solicitor to flag anything odd. Knowing your limits upfront helps avoid conflicts later. If you’re unsure where to begin, start by navigating rights and responsibilities within a body corporate.

4. Who’s Managing the Place?

A well-run building doesn’t manage itself. It relies either on a professional strata manager or a self-managed committee of owners. The setup can dramatically affect the condition of the property and your experience living there.

Professional managers bring structure. They oversee meetings, collect levies, liaise with trades, and ensure compliance with the law. Self-managed buildings might save money, but they often lack expertise and consistency, especially when key committee members change.

You should check how often the manager communicates with owners, whether maintenance is handled promptly, and what residents say about service levels. A building can look tidy but be falling behind on admin. Always dig into the manager’s role to understand who’s really keeping things on track.

5. What’s in the Maintenance Plan?

Think long-term. A smart building has a clear, documented plan for future repairs and upgrades—usually covering the next ten years. This includes repainting, lift maintenance, fire system updates, and structural work.

You’ll want to see the plan yourself. Look at how much is saved in the sinking fund and whether that amount matches what’s coming up. If it doesn’t, you might be in for a big special levy later on. That’s not something you want dropped on you six months after moving in.

The existence of a well-planned maintenance schedule can be a sign of healthy management. Its absence is a red flag. Make sure you know what’s coming and that the building’s finances can cover it.

6. Past Disputes and Committee Culture

Strata disputes can turn into major headaches. You don’t want to buy into a building where residents are constantly at war or the committee can’t make decisions. These issues often surface in meeting minutes.

Check those documents to see how decisions are made, whether concerns are acted on, and how the group handles disagreements. A building where the same problem shows up every meeting could mean delays or mismanagement.

Committee culture matters. Some are transparent and well-organised. Others are cliquey, slow, or avoid accountability. You want to buy into a building where people work together—not one where they’re always at odds.

7. Building Insurance: What’s Covered?

The body corporate arranges building insurance that protects the physical structure, shared facilities, and public areas. But not all policies are equal, and not all buildings are properly insured.

Ask to see the certificate of currency. Confirm the cover amount aligns with a recent valuation. Check for things like public liability and flood or storm coverage—especially if the building has basement parking or is near waterways.

Also ask if there have been recent claims. Repeated insurance events can cause premiums to spike. It’s worth knowing before you move in what your share of those future costs might be.

8. Case Study: Two Melbourne Buyers, Two Body Corporates

To understand how much a body corporate can impact ownership, let’s look at two examples.

Olivia in Southbank
Olivia bought a two-bed in a high-rise with impressive features. But behind the glass lifts and rooftop terrace was a neglected sinking fund. When the lift broke, owners were hit with a massive repair bill. Half the units had unpaid levies. Olivia is now trying to sell, but the building’s financials are scaring buyers away.

James in Brunswick
James purchased in a smaller, older building. It lacked fancy extras but had a strong, consistent committee and a healthy sinking fund. When a storm damaged the roof, the insurance kicked in immediately. There were no surprises. His property is low-maintenance, and his tenants are happy.

The difference? Solid management and forward planning.

FAQs

1) Can I skip paying body corporate fees if I don’t use the facilities?
No. These fees are mandatory and based on your unit’s share of ownership—not how often you use the gym or lift. Even if you never visit the rooftop, you still contribute to its upkeep. It’s part of the cost of owning in a shared property. Refusing to pay can lead to penalties, legal action, and debt collection.

2) What if the body corporate is not doing its job? 
If maintenance is ignored or financial management is poor, owners can step in. Raise concerns at general meetings or ask for a special meeting. If that fails, escalate it to VCAT. The tribunal can order the body corporate to act. If the problem lies with the strata manager, owners can vote to change providers.

3) How do I know if a body corporate is well-managed?
Ask for a strata report, which includes financials, insurance, meeting minutes, and by-laws. Look for signs of stable management like a strong sinking fund, regular meetings, and clear communication. Speak to current residents if possible. A smooth-running body corporate usually means fewer surprises down the line.

4) Can the body corporate stop me from renovating?
Yes, in some cases. Structural changes, window replacements, or anything affecting common property usually need approval. Some changes may also require council consent. Always check by-laws and speak to the strata manager before starting work.

5) Is a larger building always more expensive to manage?
Not necessarily. Larger buildings often benefit from economies of scale—costs are spread over more owners. But if the building includes pools, gyms, or security staff, those extras raise costs. A small block may cost less, but if there’s no sinking fund, you could still face unexpected levies. It’s more about how the building is run than its size.

Final Thoughts: Pay Attention to What’s Behind the Scenes

Buying an apartment is more than choosing a floor plan or checking out the view. It’s about understanding the bigger picture—how the building works, who’s running it, and what kind of community you’re joining.

Look past the glossy photos and focus on the numbers, rules, and people. A strong body corporate keeps your investment safe and your living experience hassle-free.

If you want clear advice backed by real expertise, check out Keystone Strata Group’s expert team. We know what makes a building tick—and how to make sure it stays ticking.

To learn more, please call us today on (03) 9007 2572 or leave an enquiry.