Strata living comes with shared responsibilities, shared costs and shared decisions. While every strata community will experience the occasional maintenance issue, unexpected expense or disagreement, certain patterns can indicate that a scheme needs closer attention. 

From repeated special levies and deferred maintenance to poor record keeping and committees making decisions without enough information, recognising the red flags early can help owners and committees address problems before they become more expensive or difficult to resolve. 

Key Facts 

• Red flags can relate to finances, maintenance, governance, insurance, safety or communication.  

• One red flag does not necessarily mean a scheme is poorly managed. Patterns are often more significant.  

• Frequent special levies can indicate that a scheme’s long-term financial planning needs review.  

• Deferred maintenance can allow relatively manageable issues to become larger and more expensive problems.  

• Committees are not expected to be experts in every aspect of building management. Knowing when to seek professional advice is an important part of good governance.  

• Strata legislation differs between Australian states. For state-specific information, see the relevant guides below.  

What are the biggest red flags in strata? 

There is no single sign that proves a strata scheme is being poorly managed. Instead, owners should look for recurring patterns across the building’s finances, maintenance, governance and planning. 

Here are 15 warning signs worth paying attention to. 

1. The scheme regularly issues special levies 

A special levy is not automatically a problem. 

Unexpected repairs, major projects or other extraordinary expenses can arise in any building. The red flag is when special levies become a regular solution to predictable expenses. 

If owners are repeatedly asked to make large additional payments because there isn’t enough money available for planned works, it may indicate that the scheme’s regular contributions or long-term financial planning need to be reviewed. 

What should owners ask? 

• What is the special levy paying for?  

• Was the expense genuinely unexpected?  

• Was the work identified in previous maintenance or capital works planning?  

• Could the expense have been anticipated?  

• Does the scheme have enough money set aside for other upcoming works?  

Understanding what your regular strata levies cover can help put special levies and unexpected costs into perspective. Read more about what strata levies cover and how they are used – Where Do Your Strata Levies Go?  

2. The lowest possible levies are treated as the goal 

Low levies can appear attractive, particularly to owners focused on keeping annual costs down. 

However, the cheapest annual contribution is not necessarily the healthiest financial position for a building. 

A scheme needs to collect enough money to meet its ongoing expenses and plan for future expenditure. If contributions are consistently kept artificially low, the shortfall may eventually appear as deferred maintenance, reduced reserves or a significant special levy. 

A better question is not: 

“How low are our levies?” 

It is: 

“Are our levies realistic for what this building needs?” 

3. The sinking or maintenance fund does not appear to match the building’s needs 

Buildings require significant expenditure over time. 

Roofs deteriorate. Lifts age. Building exteriors need attention. Mechanical systems require replacement. Common areas need refurbishment. 

A healthy scheme should have a clear understanding of what major works may be required and how those works will be funded. 

The terminology and legislative requirements vary between states, but the underlying principle is the same: future expenditure should not come as a complete surprise. 

Understanding how funds are structured is an important part of understanding your scheme’s financial position. Learn more about the difference between administrative and sinking funds – The Difference Between the Administrative Fund and the Sinking Fund 

4. Maintenance keeps being deferred 

“We’ll deal with it next year” can become an expensive sentence in strata. 

Some maintenance can reasonably be scheduled for a future date. The concern arises when known issues are repeatedly postponed without a clear plan. 

Deferred maintenance can allow deterioration to continue, potentially increasing the scope and cost of future works. 

Owners should look at meeting minutes and maintenance records to see whether the same issue has been discussed repeatedly without progressing towards resolution. 

5. The same problem keeps coming back 

A recurring problem deserves more than another temporary fix. 

This might include: 

• recurring water ingress  

• repeated plumbing failures  

• ongoing lift problems  

• recurring electrical faults  

• repeated roof leaks  

• persistent drainage issues  

• the same area requiring repairs multiple times.  

The question should be: 

Are we fixing the cause, or simply fixing the symptom? 

A professional investigation may be required where the underlying cause isn’t clear. 

6. Building defects remain unresolved 

Defects can be particularly important because they may affect safety, building performance, insurance and future costs. 

Examples can include: 

• waterproofing failures  

• structural concerns  

• façade problems  

• balcony issues  

• drainage defects  

• fire safety concerns  

• problems with building services.  

A defect identified in a report should not simply disappear into a filing cabinet. 

The committee should understand what the issue is, who is responsible, what action is being taken and what the expected timeframe is. 

7. There is no clear long-term maintenance plan 

A building should not be managed entirely by waiting for things to break. 

Good planning considers: 

• the age of the building  

• the condition of major assets  

• expected replacement dates  

• likely construction costs  

• available funds  

• upcoming projects.  

The details of formal maintenance and capital works planning differ by jurisdiction, which is why the state-specific guides in this series explore the requirements in more detail. 

8. Committee members are making decisions without enough information 

Committee members are generally owners who have volunteered their time. They are not expected to be engineers, lawyers, accountants, insurance specialists and building managers all at once. 

The red flag is not not knowing something. 

The red flag is making an important decision without finding out what needs to be known. 

For significant decisions, committees may need appropriate reports, quotes, professional advice or additional information before deciding how to proceed. 

Committee members don’t need to be experts in every aspect of strata management, but understanding their role can help support better decisions. Explore SSKB’s resources for strata committees – SSKB Committee Information 

9. The committee doesn’t understand its responsibilities 

A committee does not need to know everything. 

It does need to understand its role, recognise important responsibilities and know when an issue requires professional assistance. 

A committee that regularly says “we didn’t know” without taking steps to become better informed can create risk for the entire community. 

Education is therefore not just beneficial for committees. It is an important part of good strata governance. 

10. Important decisions aren’t properly documented 

Good records help a community understand: 

• what decisions were made  

• why they were made  

• what information was considered  

• what action was agreed  

• what still needs to happen.  

Poor documentation can make it difficult to understand the history of an issue and can result in the same questions or problems being revisited repeatedly. 

11. Insurance is treated as a solution to maintenance problems 

Insurance and maintenance are not interchangeable. 

Insurance is designed to respond to insured events and policy conditions. Maintenance is about keeping the building and its components in appropriate condition. 

The distinction can become particularly important when a building has suffered water damage, deterioration or defects. 

Knowing where maintenance responsibilities end and insurance begins can help owners and committees respond to issues more effectively. Learn more in our guide to maintenance versus insurance in strata – Maintenance vs Insurance in Strata: What Committees Need to Know 

12. Safety and compliance issues keep being pushed down the priority list 

Not every issue requires immediate action. 

But safety and compliance should never become a permanent “later” item. 

Examples could include outstanding fire safety works, electrical issues, unsafe common areas or unresolved essential-services concerns. 

Where a specialist inspection or report identifies a risk, the committee should understand what needs to happen and why. 

13. Owners don’t understand where their money is going 

Owners don’t necessarily need to understand every invoice. 

They should, however, be able to understand the broad financial position of their community. 

Questions worth asking include: 

• What do regular levies fund?  

• What major works are expected?  

• How much money has been set aside?  

• Why has expenditure increased?  

• Why is a special levy necessary?  

• Are there significant upcoming expenses?  

Financial transparency can help owners understand why contributions are necessary rather than simply viewing levies as an unavoidable cost. 

14. Conflict, complaints and committee turnover are constant 

Disagreement is normal in shared communities. 

Constant conflict is different. 

If committees regularly change, owners continually dispute decisions, or meetings are dominated by the same unresolved issues, there may be an underlying governance or communication problem. 

This does not necessarily mean someone is at fault. It may simply indicate that the community needs clearer processes, better information or professional assistance. 

15. Nobody is asking what happens next 

Perhaps the biggest red flag is a completely reactive approach. 

If every decision starts with: 

“What has broken?” 

rather than: 

“What will this building need next?” 

the scheme may be leaving itself vulnerable to unexpected costs. 

Good strata management isn’t about predicting every problem. It is about planning for the problems that can reasonably be anticipated. 

What should owners do if they spot a red flag? 

A red flag does not mean you should immediately assume your scheme is poorly managed. 

Start by gathering information. 

Step 1: Look at the records 

Review meeting minutes, financial information, maintenance records and available reports. 

Step 2: Identify whether it is a pattern 

Has the issue happened once, or has it appeared repeatedly? 

Step 3: Understand the cause 

Find out whether the problem is financial, maintenance-related, governance-related, compliance-related or something else. 

Step 4: Ask informed questions 

Instead of simply asking why something hasn’t happened, ask what information or action is needed to move it forward. 

Step 5: Seek professional advice where appropriate 

Committees do not need to solve every issue themselves. Building professionals, engineers, insurance specialists, legal advisers and strata professionals can all have different roles. 

Does the meaning of a strata red flag differ between states? 

Yes. 

The underlying warning signs are often similar across Australia, but the legislation, terminology, committee powers, financial requirements and maintenance obligations can differ. 

For more detailed information: 

Queensland: Red Flags in Body Corporate: What Queensland Owners and Committees Should Look For — Red Flags in Body Corporate: What Queensland Owners and Committees Should Look For

NSW: Red Flags in Strata: What NSW Owners and Committees Should Look For — Red Flags in Strata: What NSW Owners and Committees Should Look For 

Victoria: Red Flags in Owners Corporations: What Victorian Owners and Committees Should Look For — Red Flags in Owners Corporations: What Victorian Owners and Committees Should Look For  

Building Managers: The Building Manager’s Guide to Red Flags — The Building Manager’s Guide to Red Flags: What to Look For Before Small Problems Become Big Ones  

Frequently Asked Questions 

Are frequent special levies a red flag? 

Not necessarily. Special levies can be appropriate when unexpected or extraordinary expenditure arises. However, frequent special levies may indicate that a scheme’s regular budgeting or long-term financial planning needs review. 

What are the biggest financial red flags in strata? 

Repeated special levies, unrealistically low levies, inadequate long-term funds and a lack of understanding about upcoming major expenditure can all warrant closer attention. 

What are the signs of poor strata management? 

Signs can include recurring unresolved maintenance issues, poor record keeping, unclear decision-making, inadequate financial planning and a failure to address known risks. 

Should a committee know everything about strata management? 

No. Committee members are not expected to be experts in every area. They should understand their responsibilities and seek appropriate professional advice when an issue is outside their expertise. 

What should I do if I think my strata scheme has a problem? 

Start by reviewing the available records and understanding the issue. Raise informed questions through the appropriate process and seek professional advice where necessary.