Perth Property Management & Strata Investing

Strata Investing Explained

Strata living has become increasingly popular across Perth, particularly in well located suburbs close to transport, lifestyle amenities and employment hubs. For many buyers and investors, strata properties can provide a more affordable entry point into the market while still offering strong rental appeal and convenience.

At D Residential Group, we manage a wide range of strata investment properties across Perth, and one thing we regularly see is that owning a strata property is very different to owning a standalone home.

When you purchase a strata property, you are not simply buying four walls. You are buying into a shared scheme with shared costs, shared rules and shared decision making.

What Do You Actually Own?

Every strata property forms part of a strata scheme.

When you purchase a strata property (apartment, townhouse, villa etc), you own your individual lot, which is defined on the strata plan. In many cases, this includes the internal space of the property only, although the exact boundaries can vary depending on the scheme.

You also own a share of the common property alongside all other owners within the complex. Common property may include:

• Roofs and external walls
• Driveways and gardens
• Lifts and stairwells
• Shared facilities such as pools, gyms or BBQ areas

Understanding what falls under your responsibility versus the strata company’s responsibility is important when it comes to repairs, maintenance and future costs.

What Is a Strata Company?

When you buy into a strata scheme in WA, you automatically become part of the strata company.

The strata company is made up of all lot owners within the complex and is responsible for managing the common property, arranging building insurance and overseeing the financial management of the scheme.

Owners contribute through strata levies, attend Annual General Meetings and vote on important decisions relating to the complex.

A council of owners is typically elected to help make decisions between meetings, and many schemes also appoint a licensed strata manager to assist with administration and compliance.

This means that as an owner, you are part of a community decision making structure. The quality of the strata company and strata management can significantly impact your investment experience.

Understanding Strata Levies

Strata levies are regular contributions paid by owners to cover the costs of running and maintaining the scheme.

These may include:

• Cleaning and gardening of common areas
• Electricity and water for shared spaces
• Building insurance
• Lift servicing and maintenance
• Contributions to reserve funds for future major works

The amount payable will vary depending on the size of the complex and the facilities available. A high rise building with lifts, pools and gyms will generally have much higher levies than a small group of villas.

For investors, strata levies should always be factored into your holding costs and cash flow calculations. Sometimes buyers focus heavily on purchase price without fully understanding the ongoing financial commitment attached to the property.

Before purchasing, it is important to review:

• Current levy amounts
• The reserve fund balance
• Meeting minutes
• Planned maintenance works
• Any history of special levies or disputes within the complex

Strata By-Laws: The Rules Investors Need To Understand

Every strata scheme operates under its own set of by-laws.

These rules can govern things such as:

• Pets
• Parking
• Noise
• Renovations
• Short stay accommodation
• Use of common areas
• Drying laundry on balconies

This is particularly important for investors because not every strata scheme will suit every tenant demographic.

For example, some complexes may prohibit pets entirely, while others may have strict approval processes.

Likewise, some schemes may prohibit short term accommodation or place restrictions on renovations and flooring types. Buyers should always review the by-laws carefully before making an offer.

Renting Out A Strata Property

Strata properties can make excellent investment properties when chosen carefully.

Apartments and villas are often attractive to tenants seeking convenience, lower maintenance living and access to lifestyle amenities. Well located strata properties close to cafes, transport, universities and employment hubs can perform very strongly in Perth’s rental market.

However, owning a strata investment comes with additional layers compared to a standalone home.

Your property manager will often liaise directly with the strata manager regarding:

• Maintenance coordination
• By-law breaches
• Access arrangements
• Parking matters
• Building issues
• Insurance claims relating to common property

It is also important that tenants are made aware of the strata by-laws at the commencement of the tenancy, particularly conduct by-laws that may affect daily living within the complex.

These can include rules around pets, noise, rubbish disposal, parking and the use of common facilities.

A strong Perth property manager can help ensure both landlords and tenants remain compliant while minimising disputes within the complex.

Not All Strata Schemes Are Equal

One of the biggest misconceptions buyers have is assuming all strata complexes operate the same way.

In reality, the quality of strata schemes can vary dramatically.

A well run strata complex with healthy financials, proactive maintenance and strong communication can protect and even enhance property values over time.

On the other hand, poorly managed schemes with low reserve funds, deferred maintenance or ongoing disputes between owners can quickly become stressful and expensive.

This is why due diligence is so important before purchasing.

Final Thoughts

Strata living can offer fantastic opportunities for both owner occupiers and investors, particularly in Perth’s evolving property market where convenience, affordability and lifestyle continue to drive demand.

However, buying into a strata scheme means buying into shared rules, shared financial responsibilities and shared decision making, so it is important to understand exactly what you are purchasing before committing.

At D Residential Group, we work closely with landlords, tenants and strata managers across Perth and understand the unique considerations that come with managing strata investment properties.

For more in depth information regarding strata living, strata by-laws and investing in strata properties, head to REIWA.

If you are looking for experienced Perth property managers who understand the complexities of strata investing, our team is here to help.