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Since our inception in the early 1970’s as part of the Summit Homes Group, Summit Realty has built a wealth of experience in local real estate. We handle sales, purchases, rental investments and strata complex management. Our focus is building long term relationships with our clients; from buying a first home to retirement living.
Welcome to Summit Realty
Summit Realty has consistently served the Rockingham area since the early ‘70s – no one knows Rockingham like us! We have grown to fit the property demands of a changing population and offer a wide range of services to help locals with all aspects of their property journey. From land sales, to buying or selling new or established homes, retirement living or managing your rental property or strata complex, we have experienced and specialist teams ready to help you.
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Oct 16, 2026
Perth Is No Longer One Market: Why Presentation Matters More Than Ever
Perth’s property market is changing, and it’s becoming increasingly clear that not all properties are performing equally. While some homes are attracting strong buyer interest and selling quickly, others are taking longer to sell or struggling to attract offers. The difference often comes down to the type of property, its location, the buyers it appeals to and, importantly, how well it is presented to the market. For homeowners considering selling, understanding these changing market conditions is essential. With the right preparation and strategy, you can position your property to stand out, attract more buyers and achieve a stronger result. One City, Multiple Property Markets Perth is no longer a single property market moving in the same direction. Instead, we’re seeing different markets emerge, each with its own levels of demand and buyer activity. Well-presented homes in desirable locations are attracting plenty of interest at home opens, with buyers often making decisions quickly when a property meets their needs. These homes are benefiting from increased buyer traffic and fewer days on the market. However, the same conditions aren’t being experienced across every property type. Investment properties and typical rental stock can be facing a different set of challenges, while homes that require significant work or lack presentation appeal may be taking longer to sell. Two properties in the same suburb can achieve very different results depending on their condition, price, location and how effectively they are marketed. The key takeaway? Your property needs to compete in its own market, not simply rely on general Perth market headlines. Upsizers and Downsizers Are Driving Key Buyer Activity Two important groups shaping buyer demand are upsizers and downsizers, both with specific needs and priorities. Upsizers are often looking for more space, an additional bedroom, a larger backyard or a home that better suits their family's changing needs. They want a property that offers lifestyle benefits and allows them to move in with confidence. Downsizers, on the other hand, may be seeking a more manageable home, lower maintenance requirements, convenient locations or a lifestyle closer to shops, services and family. For both groups, presentation can make a significant difference. Buyers want to imagine themselves living in a home, rather than focusing on a list of repairs, unfinished jobs or improvements they will need to undertake. A clean, well-maintained and thoughtfully presented property can help buyers see its potential and feel more confident about making an offer. Presentation Can Make or Break Your Sale When buyers have plenty of properties to compare, first impressions matter. A home that is clean, tidy, well-maintained and ready to move into is more likely to capture attention at a home open. Simple improvements such as fresh paint, updated fixtures, garden maintenance, decluttering and professional styling can help create a more appealing overall impression. Conversely, a property that appears neglected or needs obvious work can leave buyers questioning what else might need attention. Even when the property has good underlying potential, poor presentation can affect buyer confidence and their willingness to pay. As Brock Gurr, General Manager & Licensee, explains: "Nothing to be gained by rushing to market without first preparing house presentation." The message is straightforward: getting your property market-ready is an important part of your selling strategy. Listing quickly may seem appealing, but if your home isn't presented at its best, you could miss the opportunity to make the strongest possible first impression. Spend on Presentation Rather Than Discounting Your Price One of the biggest mistakes sellers can make is rushing to market and then reducing their asking price when buyer interest falls short of expectations. While every property and selling situation is different, investing in presentation before launching can be a smarter approach than relying on price reductions to attract attention. As Brock Gurr puts it: "Better to spend $5k - $10k on improving presentation and saleability than discounting your home by $40k. Take advantage of a service like Summit Edge." Depending on the property, improvements might include painting, minor repairs, landscaping, decluttering or styling. These changes can help improve the property's appeal and allow buyers to focus on its features rather than the work required. Of course, no presentation investment can guarantee a particular sale price. The goal is to make informed improvements that are appropriate for your home, your target buyers and current market conditions. This is where Summit Edge can help. By identifying opportunities to improve your property's presentation and saleability, you can focus on the changes most likely to make a difference before your home reaches the market. Don't Rush to Market. Prepare to Compete. With different parts of Perth's property market performing differently, a successful sale requires more than simply putting a sign out the front and hoping for the best. Before listing, take the time to assess your property's condition, understand your likely buyer demographic and identify any improvements that could strengthen its appeal. Consider the following before your first home open: Review your presentation: Walk through your home with fresh eyes and identify anything that could put buyers off. Address the obvious: Complete minor repairs, touch up paintwork and ensure gardens and outdoor areas are neat. Declutter and clean: Create a sense of space and help buyers visualise themselves living in the home. Understand your target buyer: Consider what upsizers, downsizers or other likely buyers will value most. Seek professional advice: Get guidance on which improvements are worth making before you commit to spending money. Plan your launch: Allow enough time to prepare your home, organise photography and develop a marketing strategy. Taking a little longer to prepare can put you in a stronger position when your property is finally presented to buyers. Get the Jump on Summer Peak Selling Time! As Perth heads towards the summer selling season, now is the time to start preparing your property rather than waiting until the last minute. With buyer activity varying across different property markets, presentation and preparation can help your home stand out from the competition. The properties attracting attention are often those that give buyers fewer reasons to hesitate. If you're thinking about selling, speak with the team at Summit Realty about your property's position in the current market and how to prepare it for sale. Make your next move count. Get the jump on summer peak selling time with Summit Edge. Contact Summit Realty on 08 9592 8188 or reception@summitrealty.com.au to discuss your selling plans and discover how the right preparation could help you get your property market-ready....
Oct 13, 2026
Who Pays for Repairs in a Strata Scheme? Understanding Common vs Lot Property
Determining who is responsible for a repair is one of the most common sources of confusion in a strata scheme. An item may appear to be located within an owner’s lot but may actually form part of the common property. Similarly, some items that serve a particular lot may have different maintenance responsibilities depending on the strata plan, scheme by-laws and the circumstances surrounding the repair. Understanding the difference between common property and lot property is therefore important for strata owners, Councils of Owners and anyone considering purchasing a strata property. Before arranging repairs or agreeing to pay for work, it is important to establish exactly where the responsibility lies. “One of the most common misunderstandings we see in strata is the assumption that if something is physically located within a lot, the lot owner must automatically be responsible for it. The strata plan is an important starting point when determining responsibility, and it is always better to clarify this before arranging works or accepting responsibility for a repair.” — Kim Dawes, Department Manager — What is common property? Common property is generally the part of the strata scheme that is not contained within an individual lot. It is collectively owned by the lot owners and managed by the strata company. The exact common property within a scheme can vary considerably. Depending on the type and design of the scheme, it may include areas and building elements such as: External walls Roofs Foyers and shared entrances Driveways and common pathways Shared gardens and recreational areas Structural elements of a building Pipes or services located in common property or servicing more than one lot Landgate explains that common property in a strata scheme can be more difficult to identify because it is not necessarily separately numbered on the strata plan. The plan needs to be examined to determine where the lot boundaries end and common property begins. The strata company has a statutory responsibility to manage and maintain common property, although there can be exceptions depending on the circumstances, scheme type and applicable by-laws. What is lot property? Lot property is the part of the strata scheme that is individually owned by a lot owner. For a typical built-strata property, this can include the internal areas of an apartment, villa or townhouse and items such as internal walls, fixtures, flooring and paintwork. As a general rule, the owner of a lot is responsible for maintaining and repairing their lot. The standard governance by-laws under the WA strata legislation state that a lot owner must maintain and repair the lot and keep it in a state of good condition, subject to specified exceptions. However, "inside my lot" does not automatically mean "my responsibility." There can be building elements located within or immediately adjacent to a lot that form part of common property, or where responsibility is affected by a specific by-law or other provision. This is why checking the strata plan is so important. Why the strata plan matters The strata plan is one of the most important documents when determining responsibility for repairs. It establishes the boundaries of the lots and helps identify what falls outside those boundaries as common property. In a built-strata scheme, the boundaries can be defined by reference to the building, including walls, floors and ceilings. The position can also vary between different strata schemes. For example, two apartments in different buildings may have similar-looking balconies or windows, but the responsibility for maintaining or repairing those elements may not be the same because their strata plans or by-laws differ. Landgate recommends obtaining and examining a current copy of the scheme plan when determining common property and lot boundaries. Where the interpretation is unclear, advice from a licensed land surveyor or Landgate may be appropriate. The appearance or location of an item should not be relied upon by itself. Who is responsible for repairs? In broad terms: The strata company The strata company is generally responsible for managing and maintaining the common property. If a repair relates to common property, owners should generally raise the issue with the strata company, Council of Owners or strata manager rather than arranging the work themselves. Landgate specifically advises that where repairs or maintenance are required to common property, the matter should be raised with the strata company. The lot owner A lot owner is generally responsible for maintaining and repairing the property within the boundaries of their lot. However, there can be exceptions. Responsibility can be affected by the scheme's by-laws, exclusive-use arrangements, the type of strata scheme, the location and purpose of the item, and the cause of the damage. This is why it is important to establish responsibility before engaging a contractor or accepting an invoice. Common repair disputes in strata schemes Some repairs regularly lead to questions or disagreements between lot owners and strata companies. Leaking pipes A leaking pipe can be particularly difficult to allocate responsibility for. A pipe serving only one lot may potentially be treated differently from a pipe located in common property or servicing multiple lots. The location of the pipe, the strata plan and the nature of the service all need to be considered. Balconies Balconies can create confusion because they may be physically attached to or accessed exclusively from a particular lot. However, responsibility for the balcony structure, waterproofing, balustrades, surfaces or other components cannot necessarily be determined simply because the balcony is for the exclusive use of one owner. The strata plan and any applicable by-laws should be checked before deciding who is responsible. Windows Windows are another common area of confusion. An owner may assume that because a window is part of their apartment, they are responsible for its replacement. However, external or boundary elements can form part of common property depending on the boundaries established by the strata plan. Roofs Roofs will commonly form part of the common property in a built-strata scheme, meaning repair and maintenance may generally fall to the strata company. However, the specific circumstances and scheme arrangements should still be confirmed before work is organised. External walls External walls are often common property in built-strata schemes. This can include repairs relating to deterioration, cracking or other building defects. However, responsibility for damage caused by an individual owner or occupier may need to be considered separately. Doors Doors can be another grey area. An internal door within a lot will generally be treated differently from an external entrance door or door forming part of a common-property boundary. The relevant boundary and any applicable by-laws should be checked before determining responsibility. Plumbing Plumbing responsibility depends heavily on what the pipe or plumbing serves and where it is located. For example, a pipe serving multiple lots may be treated differently from plumbing serving only one lot. A plumber's assessment may therefore be useful, but the physical location of the problem is only one part of determining who should ultimately pay. Air-conditioning units Air-conditioning systems can also create disputes, particularly where an outdoor condenser is located outside the lot or attached to an external wall. Responsibility may depend on whether the equipment forms part of the lot, is common property, was installed by the owner, or is subject to a particular by-law or approval. This is a good example of why an owner should not assume responsibility based solely on where an item is physically located. What happens when responsibility is unclear? When responsibility is unclear, the first step should be to avoid making assumptions or immediately arranging non-emergency work at your own expense. Instead: Notify your strata manager or Council of Owners about the issue. Check the strata plan to establish the relevant lot boundaries. Review the scheme's by-laws, including any exclusive-use by-laws that may affect maintenance responsibilities. Determine the cause and location of the problem, where necessary with the assistance of an appropriately qualified contractor. Establish who has authority to arrange the work before engaging a contractor. If the issue remains disputed, obtain appropriate professional or legal advice. Landgate notes that exclusive-use by-laws can specifically allocate responsibility for repairing and maintaining common property to the lot owner who benefits from the exclusive use, or to the strata company, depending on the terms of the by-law. This means there is no reliable "one rule fits all" answer for every repair. Why owners should contact their Strata Manager Your strata manager can be an important first point of contact when there is uncertainty about a repair. Rather than an owner independently deciding that a repair is their responsibility — or that the strata company must pay — the strata manager can help identify the appropriate process, refer to the scheme records and by-laws, and coordinate the matter with the Council of Owners where required. This can be particularly important for repairs involving building structures, shared services, external areas or potential common property. It can also help prevent unnecessary costs. If an owner arranges work that ultimately turns out to be the strata company's responsibility, or undertakes work affecting common property without the required approval, complications can arise. For Councils of Owners, having a consistent process for assessing repair requests can also help reduce disputes between owners and ensure maintenance issues are dealt with appropriately. Buying a strata property? Check before you buy Understanding repair responsibilities is also important for prospective strata purchasers. Before purchasing a strata property, buyers should look beyond the apartment, villa or townhouse itself and understand how the wider scheme operates. This includes reviewing: The strata or survey-strata plan Scheme by-laws Strata company records Maintenance and repair issues Planned or anticipated major works Contributions and levies Any relevant notices, defects or disputes Landgate advises that a strata title should be considered alongside the relevant strata or survey-strata plan, as the plan can contain important information about lot boundaries, common property and other interests affecting the scheme. Doing this due diligence before purchasing can help avoid unexpected repair obligations and costs later. Understanding responsibility can prevent unnecessary disputes Strata repairs are not always as straightforward as determining what an item looks like or where it happens to be located. The key question is often whether the item forms part of the lot or common property — and what the scheme's documents and legislation say about responsibility. When there is uncertainty, checking the strata plan and seeking guidance before arranging work can help owners, Councils of Owners and strata companies avoid unnecessary disputes, delays and costs. For more information, owners can refer to the WA Strata Titles Act 1985 and Landgate's resources on strata plans, boundaries and common property. Further information WA Strata Titles Act 1985 – Western Australian legislation — Relevant provisions concerning strata companies, lot owners, maintenance, repairs and the management of strata schemes. Landgate – Strata Titles and Common Property — Information about strata plans, lot boundaries, common property and responsibilities. Landgate – Understanding the Basics of Strata — A practical overview of common property and strata boundaries. This article provides general information only and is not intended to constitute legal advice. The responsibility for a particular repair will depend on the individual scheme, its strata or survey-strata plan, by-laws, legislation and the circumstances of the issue. Where responsibility is disputed or unclear, appropriate professional advice should be obtained. Need Help Managing Your Strata Scheme? Understanding who is responsible for repairs is just one part of effectively managing a strata property. Our experienced strata management team can assist with the day-to-day management of your scheme, including maintenance matters, communication with owners and contractors, and helping Councils of Owners navigate their responsibilities. If you are looking for professional strata management or would like to discuss your scheme, contact our team today strata@summitrealty.com.au ...
Oct 13, 2026
Tenant Damage vs Fair Wear and Tear - What’s the Difference?
Understanding the difference between fair wear and tear and tenant damage is an important part of managing a rental property. Properties naturally deteriorate over time through normal use, and tenants should not be held responsible for reasonable wear associated with living in a home. However, tenants may be responsible where damage has occurred beyond what would reasonably be considered ordinary wear and tear. For landlords and tenants, knowing where that line sits can sometimes be difficult. Factors such as the property's age, the condition of an item at the beginning of the tenancy, how it has been used and the evidence available can all influence an assessment. This guide explains the difference between fair wear and tear and tenant damage, provides practical examples and highlights why entry condition reports, routine inspections, photographs and clear documentation are so important. What is fair wear and tear? Fair wear and tear is the normal deterioration that occurs to a property, fixtures, fittings and appliances through reasonable everyday use over time. A rental property is a home, and it is expected that living in it will result in some gradual deterioration. For example, carpets may become worn in areas that receive regular foot traffic, paint may fade over time and fixtures may show signs of normal use. These changes do not necessarily mean that a tenant has caused damage. The key consideration is whether the condition is consistent with normal residential use and the passage of time, rather than being the result of misuse, negligence or unreasonable behaviour. Examples of fair wear and tear Examples may include: Minor scuff marks consistent with normal household use Paint becoming faded or discoloured over time Carpets showing normal wear in high-traffic areas Minor deterioration of grout or sealant with age Fixtures and fittings showing signs of regular use Older appliances naturally deteriorating or reaching the end of their useful life Minor marks or scratches that would reasonably be expected from everyday living Importantly, each situation needs to be considered on its individual circumstances. What is tenant damage? Tenant damage is different from ordinary wear and tear. Damage may occur where a property, fixture or fitting has been damaged through misuse, negligence, carelessness or actions that go beyond normal residential use. For example, a small mark on a wall from everyday living may be considered reasonable wear. A large hole in the wall caused by an impact is more likely to be considered damage. Other examples could include: Significant holes or damage to walls Broken doors, windows or fixtures resulting from misuse Burns or significant stains to carpets Broken tiles caused by an impact Damage resulting from unauthorised alterations Damage caused by failing to report a maintenance issue Excessive damage caused by pets where the tenant is responsible Fixtures or fittings damaged through inappropriate or careless use The circumstances surrounding the damage are important. A property manager will generally consider the evidence available rather than simply assuming that every imperfection at the end of a tenancy is tenant damage. Age and condition matter One of the most important factors when assessing damage is the age and condition of the item. An item that was brand new at the beginning of a tenancy should not necessarily be treated in the same way as an item that was already several years old and showing signs of deterioration. For example, if an older carpet has reached the later stages of its expected life and is damaged during a tenancy, it would not generally be reasonable to assume that the tenant should simply pay the full cost of installing a brand-new carpet. Similarly, an item that already had marks, damage or deterioration before the tenant moved in needs to be distinguished from damage that occurred during the tenancy. This is why the property's condition at both the beginning and end of the tenancy is so important. “One of the most common misunderstandings we see at the end of a tenancy is the difference between damage and fair wear and tear. A rental property is a home, and reasonable deterioration is expected over time. The key is looking at the condition of the property at the beginning and end of the tenancy and considering the age and condition of the item involved.” — Kim Dawes, Department Manager — The entry condition report is critical An accurate entry condition report is one of the most important pieces of evidence when assessing the condition of a rental property. The report records the condition of the property at the beginning of the tenancy and provides a reference point when the tenant moves out. Tenants should carefully review their entry condition report and raise any discrepancies or additional issues as soon as possible. Landlords and property managers should also ensure the report accurately reflects the property's condition before the tenancy begins. Photographs can provide valuable evidence Photographs can be particularly useful when documenting the condition of a property. Clear, dated photographs can help demonstrate the condition of walls, flooring, appliances, fixtures and other areas at the beginning of a tenancy. When combined with the entry condition report and inspection records, photographs can help establish whether an issue was pre-existing, normal deterioration or something that occurred during the tenancy. Good documentation protects everyone involved. Routine inspections are important Routine inspections are another important part of managing a rental property. They provide an opportunity to identify maintenance issues, monitor the general condition of the property and address concerns during the tenancy rather than waiting until the tenant moves out. For landlords, regular inspections can help identify issues before they become more costly. For tenants, inspections provide an opportunity to raise maintenance concerns and ensure problems are properly documented. Routine inspections are not simply about looking for tenant damage. They are also about maintaining the property and identifying issues that may require attention. Bond claims are not automatic A property not being in exactly the same condition at the end of a tenancy does not automatically mean that a tenant is responsible for the difference. Normal deterioration is expected when a property is occupied. When considering whether a tenant may be responsible for damage, factors such as the condition at the start of the tenancy, the age and condition of the item, the nature of the damage and the evidence available may all be relevant. Any proposed claim should be reasonable and supported by appropriate evidence. This is one of the reasons professional property management can be valuable. Property managers can assess the circumstances, review the available documentation and provide landlords and tenants with guidance throughout the process. Communication can prevent disputes Clear communication can go a long way towards preventing disagreements at the end of a tenancy. Tenants should report maintenance issues and accidental damage as soon as they become aware of them. Leaving an issue unreported can potentially allow a small problem to become more significant. Landlords and property managers should communicate clearly with tenants about maintenance, property condition and any concerns identified during the tenancy. When everyone understands their responsibilities and there is good documentation to support the condition of the property, disputes can often be resolved more easily. The goal is a fair and reasonable outcome The purpose of assessing property condition is not to penalise tenants for living in a home, nor is it to overlook genuine damage. The goal should be a fair and reasonable outcome based on the circumstances and available evidence. For tenants, this means taking reasonable care of the property, reporting issues promptly and documenting the condition of the home. For landlords, it means recognising that reasonable wear and tear is an expected part of owning a rental property and considering the age and condition of items before seeking compensation for damage. For property managers, it means helping both parties understand their responsibilities and assessing issues objectively. Five key takeaways Not every mark, scratch or worn item is tenant damage. Normal deterioration is expected when a property is occupied. Tenant damage is different from ordinary wear and tear. Damage may arise from misuse, negligence or actions that go beyond normal residential use. The age and condition of an item matter. A landlord generally cannot expect a tenant to pay the full replacement cost of an old or already deteriorated item. Good documentation protects everyone. Entry condition reports, routine inspection reports and photographs can help establish what changed during the tenancy. The goal should be a fair and reasonable outcome. Property managers can help assess the circumstances and provide landlords and tenants with guidance throughout the process. Understanding the difference benefits everyone Fair wear and tear is a normal part of renting a property. Tenant damage is different and may result in responsibility for reasonable repair costs. The distinction is not always as simple as looking at a mark or damaged item in isolation. The condition of the property at the start of the tenancy, the age and condition of the item, the circumstances surrounding the damage and the evidence available should all be considered. With accurate entry condition reports, regular inspections, photographs, clear records and open communication, landlords and tenants can have greater confidence that property condition is being assessed fairly. Further information For more information about rental property responsibilities in Western Australia, landlords and tenants can refer to: WA Residential Tenancies Act 1987 – provisions relating to tenant responsibilities, property condition and damage. Consumer Protection WA – Renting a Home – information for landlords and tenants about rental property responsibilities and tenancy requirements. If you have questions about property management, our experienced team is here to help. Get in touch with us today by emailing reception@summitrealty.com.au to discuss your property management needs. This article is intended as general information only and should not be relied upon as legal advice. Residential tenancy laws and requirements can change. Landlords and tenants should refer to the current legislation and Consumer Protection WA information or seek appropriate professional advice for their individual circumstances....
Aug 27, 2026
How Are Strata Levies Calculated in WA?
How are Strata Levies Calculated in WA? For many strata owners, receiving a levy notice can raise a simple question: how was this amount actually calculated? Strata levies are not simply an amount decided by a strata manager or added to a notice at random. They are based on the anticipated costs of operating and maintaining the strata scheme, with each owner’s contribution generally determined according to the unit entitlement of their lot. Understanding how the budgeting and approval process works can make levy notices easier to understand and highlight why paying levies on time is so important to the ongoing financial health and maintenance of a strata property. What are strata levies? Strata levies, also known as contributions, are payments made by lot owners to the strata company to fund the costs and expenses associated with running and maintaining the scheme. These costs can include maintaining common property, insurance, gardening, cleaning, utilities, administration, strata management fees and other expenses associated with the operation of the property. The strata company has a responsibility to manage and maintain common property for the benefit of all owners. This means having sufficient funds available is essential to ensure the scheme can meet its financial obligations and keep the property in good condition. In simple terms, strata levies provide the financial resources needed to run the property today and plan for its future. How is the annual strata budget prepared? The amount owners pay in levies starts with the strata company's annual budget. When preparing the budget, anticipated expenditure for the coming financial year is considered. This can include regular operating expenses, such as: Building and public liability insurance Gardening and landscaping Cleaning Electricity and other utilities for common property Routine repairs and maintenance Strata management fees Administrative and compliance costs Other anticipated expenses associated with the scheme The budget should also take into account the scheme's existing financial position and expected income and expenditure. For schemes that are required to have a 10-year maintenance plan, the budget must also take that plan into account. The strata manager can assist the Council of Owners by providing financial information, reviewing previous expenditure, obtaining quotes and helping identify anticipated costs. However, the strata company remains responsible for determining the amounts required. Who approves the budget? The proposed annual budget is presented to owners at the Annual General Meeting (AGM). Owners have an opportunity to consider the proposed expenditure and levy contributions before voting on the budget. In WA, the strata company is required to prepare an annual budget for approval at the AGM by ordinary resolution. This means the levies shown on owners' notices are linked to a budget that has gone through the strata company's governance and approval process. The Council of Owners plays an important role in overseeing the financial management of the scheme between general meetings, while the strata manager, where one is appointed, provides professional assistance with administration, financial management and compliance. Administrative Fund vs Reserve Fund One of the most important distinctions for strata owners to understand is the difference between the Administrative Fund and the Reserve Fund. Administrative Fund The Administrative Fund is used for the regular and ongoing costs of operating the strata scheme. This can include: Insurance Gardening and cleaning Routine maintenance and repairs Common property utilities Administrative expenses Strata management fees Other day-to-day costs of managing the scheme The Strata Titles Act 1985 (WA) requires a strata company to establish an administrative fund sufficient, in its opinion, for the control and management of common property, insurance premiums and other obligations of the strata company. Reserve Fund The Reserve Fund is designed to help the strata company prepare for significant future expenditure, such as major repairs, maintenance, renewal or replacement of common property. Examples could include: Major roof repairs Repainting Lift replacement Significant building works Structural changes Other substantial future capital expenditure For designated strata companies — generally schemes with 10 or more lots or a building replacement value of $5 million or more — a reserve fund and 10-year maintenance plan are required. The 10-year plan identifies anticipated major works and their estimated costs and must be reviewed at least every five years. Having money set aside for future works can help reduce the risk of owners facing unexpectedly large financial demands when major projects become necessary. How are individual strata levies calculated? Once the total amount required for the financial year has been determined, each owner's contribution is generally calculated according to the unit entitlement of their lot. Unit entitlement is recorded on the registered Schedule of Unit Entitlements. It represents each lot's proportionate interest within the scheme and is an important factor in determining the contributions payable by owners. For administrative fund contributions, the Strata Titles Act 1985 (WA) provides that contributions are generally levied in proportion to the unit entitlements of the respective lots, although scheme by-laws may provide for a different basis in certain circumstances. Reserve fund contributions are levied in proportion to unit entitlements. A simple example Imagine a strata scheme has a total annual budget of $120,000 and the combined unit entitlements of all lots equal 1,000. If your lot has a unit entitlement of 100, your proportion is: 100 ÷ 1,000 = 10% If the entire $120,000 were being raised on that basis, your annual contribution would be: 10% × $120,000 = $12,000 per year If levies are payable quarterly, this would equate to: $12,000 ÷ 4 = $3,000 per quarter This is a simplified example. In an actual scheme, administrative and reserve fund contributions may be calculated separately, and the scheme's by-laws and the requirements of the Strata Titles Act 1985 (WA) must be considered. It is also important to understand that unit entitlement is not simply based on the size of a lot. Landgate explains that unit entitlement is based on the relative value of lots, with different valuation approaches applying to strata and survey-strata schemes. Why do strata levies sometimes increase? An increase in strata levies does not necessarily mean the strata company is spending unnecessarily. Costs can change from one year to the next due to factors such as insurance premiums, contractor costs, utilities, repairs, maintenance requirements and planned capital works. A responsible budget should consider both the immediate operating requirements of the scheme and its longer-term maintenance needs. For schemes with a 10-year maintenance plan, anticipated future works should be considered when preparing the annual budget. Keeping levies artificially low may appear attractive in the short term, but insufficient funding can make it more difficult for a strata company to maintain the property properly or pay for major works when they become necessary. Why paying your levies on time matters Every owner contributes to the financial health of the strata scheme. When owners pay their levies on time, the strata company has the funds it needs to pay invoices, maintain common property, meet insurance and other financial obligations, and build reserves for future works. Unpaid levies can place additional financial pressure on the strata company and, ultimately, other owners. Regular and appropriate levy contributions therefore aren't simply another cost of owning a strata property — they are an investment in the ongoing operation, maintenance and protection of the property. The bottom line Strata levies are not set at random. They are based on the costs the strata company anticipates it will need to meet, as outlined through the annual budgeting process. The process can be summarised as: Assess anticipated expenditure The strata company considers operating costs, maintenance requirements, insurance, existing funds and future expenditure. Prepare the annual budget The proposed budget identifies the income and expenditure required for the coming financial year. Consider the reserve fund and future works Where applicable, the 10-year maintenance plan helps identify future major works and the funding required. Present the budget to owners The proposed budget and levy contributions are presented at the AGM. Owners approve the budget The annual budget is approved by ordinary resolution at the AGM. Levy contributions are calculated Owners' contributions are generally determined according to their lot's unit entitlement, subject to the requirements of the Act and applicable by-laws. Understanding this process can give owners greater confidence when reviewing their levy notices and participating in AGM discussions. Ultimately, strata levies play an important role in maintaining the condition of common property, meeting the scheme's financial obligations and planning for the future. A well-managed strata scheme needs appropriate funding today to protect the property and its value tomorrow. Want to understand your strata levies? If you have questions about your levy contributions, annual budget or the financial management of your strata scheme, our experienced strata team is here to help. Get in touch with us today by emailing strata@summitrealty.com.au to discuss your strata needs or find out how we can help your scheme be better managed. For further information, owners can refer to the Strata Titles Act 1985 (WA) and Landgate's information on strata in WA. This article provides general information about strata levies in Western Australia and should not be taken as legal or financial advice. Specific levy arrangements can vary between strata schemes and should be considered in conjunction with the Strata Titles Act 1985 (WA), regulations and applicable scheme by-laws....
Oct 16, 2026
Perth Is No Longer One Market: Why Presentation Matters More Than Ever
Perth’s property market is changing, and it’s becoming increasingly clear that not all properties are performing equally. While some homes are attracting strong buyer interest and selling quickly, others are taking longer to sell or struggling to attract offers. The difference often comes down to the type of property, its location, the buyers it appeals to and, importantly, how well it is presented to the market. For homeowners considering selling, understanding these changing market conditions is essential. With the right preparation and strategy, you can position your property to stand out, attract more buyers and achieve a stronger result. One City, Multiple Property Markets Perth is no longer a single property market moving in the same direction. Instead, we’re seeing different markets emerge, each with its own levels of demand and buyer activity. Well-presented homes in desirable locations are attracting plenty of interest at home opens, with buyers often making decisions quickly when a property meets their needs. These homes are benefiting from increased buyer traffic and fewer days on the market. However, the same conditions aren’t being experienced across every property type. Investment properties and typical rental stock can be facing a different set of challenges, while homes that require significant work or lack presentation appeal may be taking longer to sell. Two properties in the same suburb can achieve very different results depending on their condition, price, location and how effectively they are marketed. The key takeaway? Your property needs to compete in its own market, not simply rely on general Perth market headlines. Upsizers and Downsizers Are Driving Key Buyer Activity Two important groups shaping buyer demand are upsizers and downsizers, both with specific needs and priorities. Upsizers are often looking for more space, an additional bedroom, a larger backyard or a home that better suits their family's changing needs. They want a property that offers lifestyle benefits and allows them to move in with confidence. Downsizers, on the other hand, may be seeking a more manageable home, lower maintenance requirements, convenient locations or a lifestyle closer to shops, services and family. For both groups, presentation can make a significant difference. Buyers want to imagine themselves living in a home, rather than focusing on a list of repairs, unfinished jobs or improvements they will need to undertake. A clean, well-maintained and thoughtfully presented property can help buyers see its potential and feel more confident about making an offer. Presentation Can Make or Break Your Sale When buyers have plenty of properties to compare, first impressions matter. A home that is clean, tidy, well-maintained and ready to move into is more likely to capture attention at a home open. Simple improvements such as fresh paint, updated fixtures, garden maintenance, decluttering and professional styling can help create a more appealing overall impression. Conversely, a property that appears neglected or needs obvious work can leave buyers questioning what else might need attention. Even when the property has good underlying potential, poor presentation can affect buyer confidence and their willingness to pay. As Brock Gurr, General Manager & Licensee, explains: "Nothing to be gained by rushing to market without first preparing house presentation." The message is straightforward: getting your property market-ready is an important part of your selling strategy. Listing quickly may seem appealing, but if your home isn't presented at its best, you could miss the opportunity to make the strongest possible first impression. Spend on Presentation Rather Than Discounting Your Price One of the biggest mistakes sellers can make is rushing to market and then reducing their asking price when buyer interest falls short of expectations. While every property and selling situation is different, investing in presentation before launching can be a smarter approach than relying on price reductions to attract attention. As Brock Gurr puts it: "Better to spend $5k - $10k on improving presentation and saleability than discounting your home by $40k. Take advantage of a service like Summit Edge." Depending on the property, improvements might include painting, minor repairs, landscaping, decluttering or styling. These changes can help improve the property's appeal and allow buyers to focus on its features rather than the work required. Of course, no presentation investment can guarantee a particular sale price. The goal is to make informed improvements that are appropriate for your home, your target buyers and current market conditions. This is where Summit Edge can help. By identifying opportunities to improve your property's presentation and saleability, you can focus on the changes most likely to make a difference before your home reaches the market. Don't Rush to Market. Prepare to Compete. With different parts of Perth's property market performing differently, a successful sale requires more than simply putting a sign out the front and hoping for the best. Before listing, take the time to assess your property's condition, understand your likely buyer demographic and identify any improvements that could strengthen its appeal. Consider the following before your first home open: Review your presentation: Walk through your home with fresh eyes and identify anything that could put buyers off. Address the obvious: Complete minor repairs, touch up paintwork and ensure gardens and outdoor areas are neat. Declutter and clean: Create a sense of space and help buyers visualise themselves living in the home. Understand your target buyer: Consider what upsizers, downsizers or other likely buyers will value most. Seek professional advice: Get guidance on which improvements are worth making before you commit to spending money. Plan your launch: Allow enough time to prepare your home, organise photography and develop a marketing strategy. Taking a little longer to prepare can put you in a stronger position when your property is finally presented to buyers. Get the Jump on Summer Peak Selling Time! As Perth heads towards the summer selling season, now is the time to start preparing your property rather than waiting until the last minute. With buyer activity varying across different property markets, presentation and preparation can help your home stand out from the competition. The properties attracting attention are often those that give buyers fewer reasons to hesitate. If you're thinking about selling, speak with the team at Summit Realty about your property's position in the current market and how to prepare it for sale. Make your next move count. Get the jump on summer peak selling time with Summit Edge. Contact Summit Realty on 08 9592 8188 or reception@summitrealty.com.au to discuss your selling plans and discover how the right preparation could help you get your property market-ready....
Oct 13, 2026
Who Pays for Repairs in a Strata Scheme? Understanding Common vs Lot Property
Determining who is responsible for a repair is one of the most common sources of confusion in a strata scheme. An item may appear to be located within an owner’s lot but may actually form part of the common property. Similarly, some items that serve a particular lot may have different maintenance responsibilities depending on the strata plan, scheme by-laws and the circumstances surrounding the repair. Understanding the difference between common property and lot property is therefore important for strata owners, Councils of Owners and anyone considering purchasing a strata property. Before arranging repairs or agreeing to pay for work, it is important to establish exactly where the responsibility lies. “One of the most common misunderstandings we see in strata is the assumption that if something is physically located within a lot, the lot owner must automatically be responsible for it. The strata plan is an important starting point when determining responsibility, and it is always better to clarify this before arranging works or accepting responsibility for a repair.” — Kim Dawes, Department Manager — What is common property? Common property is generally the part of the strata scheme that is not contained within an individual lot. It is collectively owned by the lot owners and managed by the strata company. The exact common property within a scheme can vary considerably. Depending on the type and design of the scheme, it may include areas and building elements such as: External walls Roofs Foyers and shared entrances Driveways and common pathways Shared gardens and recreational areas Structural elements of a building Pipes or services located in common property or servicing more than one lot Landgate explains that common property in a strata scheme can be more difficult to identify because it is not necessarily separately numbered on the strata plan. The plan needs to be examined to determine where the lot boundaries end and common property begins. The strata company has a statutory responsibility to manage and maintain common property, although there can be exceptions depending on the circumstances, scheme type and applicable by-laws. What is lot property? Lot property is the part of the strata scheme that is individually owned by a lot owner. For a typical built-strata property, this can include the internal areas of an apartment, villa or townhouse and items such as internal walls, fixtures, flooring and paintwork. As a general rule, the owner of a lot is responsible for maintaining and repairing their lot. The standard governance by-laws under the WA strata legislation state that a lot owner must maintain and repair the lot and keep it in a state of good condition, subject to specified exceptions. However, "inside my lot" does not automatically mean "my responsibility." There can be building elements located within or immediately adjacent to a lot that form part of common property, or where responsibility is affected by a specific by-law or other provision. This is why checking the strata plan is so important. Why the strata plan matters The strata plan is one of the most important documents when determining responsibility for repairs. It establishes the boundaries of the lots and helps identify what falls outside those boundaries as common property. In a built-strata scheme, the boundaries can be defined by reference to the building, including walls, floors and ceilings. The position can also vary between different strata schemes. For example, two apartments in different buildings may have similar-looking balconies or windows, but the responsibility for maintaining or repairing those elements may not be the same because their strata plans or by-laws differ. Landgate recommends obtaining and examining a current copy of the scheme plan when determining common property and lot boundaries. Where the interpretation is unclear, advice from a licensed land surveyor or Landgate may be appropriate. The appearance or location of an item should not be relied upon by itself. Who is responsible for repairs? In broad terms: The strata company The strata company is generally responsible for managing and maintaining the common property. If a repair relates to common property, owners should generally raise the issue with the strata company, Council of Owners or strata manager rather than arranging the work themselves. Landgate specifically advises that where repairs or maintenance are required to common property, the matter should be raised with the strata company. The lot owner A lot owner is generally responsible for maintaining and repairing the property within the boundaries of their lot. However, there can be exceptions. Responsibility can be affected by the scheme's by-laws, exclusive-use arrangements, the type of strata scheme, the location and purpose of the item, and the cause of the damage. This is why it is important to establish responsibility before engaging a contractor or accepting an invoice. Common repair disputes in strata schemes Some repairs regularly lead to questions or disagreements between lot owners and strata companies. Leaking pipes A leaking pipe can be particularly difficult to allocate responsibility for. A pipe serving only one lot may potentially be treated differently from a pipe located in common property or servicing multiple lots. The location of the pipe, the strata plan and the nature of the service all need to be considered. Balconies Balconies can create confusion because they may be physically attached to or accessed exclusively from a particular lot. However, responsibility for the balcony structure, waterproofing, balustrades, surfaces or other components cannot necessarily be determined simply because the balcony is for the exclusive use of one owner. The strata plan and any applicable by-laws should be checked before deciding who is responsible. Windows Windows are another common area of confusion. An owner may assume that because a window is part of their apartment, they are responsible for its replacement. However, external or boundary elements can form part of common property depending on the boundaries established by the strata plan. Roofs Roofs will commonly form part of the common property in a built-strata scheme, meaning repair and maintenance may generally fall to the strata company. However, the specific circumstances and scheme arrangements should still be confirmed before work is organised. External walls External walls are often common property in built-strata schemes. This can include repairs relating to deterioration, cracking or other building defects. However, responsibility for damage caused by an individual owner or occupier may need to be considered separately. Doors Doors can be another grey area. An internal door within a lot will generally be treated differently from an external entrance door or door forming part of a common-property boundary. The relevant boundary and any applicable by-laws should be checked before determining responsibility. Plumbing Plumbing responsibility depends heavily on what the pipe or plumbing serves and where it is located. For example, a pipe serving multiple lots may be treated differently from plumbing serving only one lot. A plumber's assessment may therefore be useful, but the physical location of the problem is only one part of determining who should ultimately pay. Air-conditioning units Air-conditioning systems can also create disputes, particularly where an outdoor condenser is located outside the lot or attached to an external wall. Responsibility may depend on whether the equipment forms part of the lot, is common property, was installed by the owner, or is subject to a particular by-law or approval. This is a good example of why an owner should not assume responsibility based solely on where an item is physically located. What happens when responsibility is unclear? When responsibility is unclear, the first step should be to avoid making assumptions or immediately arranging non-emergency work at your own expense. Instead: Notify your strata manager or Council of Owners about the issue. Check the strata plan to establish the relevant lot boundaries. Review the scheme's by-laws, including any exclusive-use by-laws that may affect maintenance responsibilities. Determine the cause and location of the problem, where necessary with the assistance of an appropriately qualified contractor. Establish who has authority to arrange the work before engaging a contractor. If the issue remains disputed, obtain appropriate professional or legal advice. Landgate notes that exclusive-use by-laws can specifically allocate responsibility for repairing and maintaining common property to the lot owner who benefits from the exclusive use, or to the strata company, depending on the terms of the by-law. This means there is no reliable "one rule fits all" answer for every repair. Why owners should contact their Strata Manager Your strata manager can be an important first point of contact when there is uncertainty about a repair. Rather than an owner independently deciding that a repair is their responsibility — or that the strata company must pay — the strata manager can help identify the appropriate process, refer to the scheme records and by-laws, and coordinate the matter with the Council of Owners where required. This can be particularly important for repairs involving building structures, shared services, external areas or potential common property. It can also help prevent unnecessary costs. If an owner arranges work that ultimately turns out to be the strata company's responsibility, or undertakes work affecting common property without the required approval, complications can arise. For Councils of Owners, having a consistent process for assessing repair requests can also help reduce disputes between owners and ensure maintenance issues are dealt with appropriately. Buying a strata property? Check before you buy Understanding repair responsibilities is also important for prospective strata purchasers. Before purchasing a strata property, buyers should look beyond the apartment, villa or townhouse itself and understand how the wider scheme operates. This includes reviewing: The strata or survey-strata plan Scheme by-laws Strata company records Maintenance and repair issues Planned or anticipated major works Contributions and levies Any relevant notices, defects or disputes Landgate advises that a strata title should be considered alongside the relevant strata or survey-strata plan, as the plan can contain important information about lot boundaries, common property and other interests affecting the scheme. Doing this due diligence before purchasing can help avoid unexpected repair obligations and costs later. Understanding responsibility can prevent unnecessary disputes Strata repairs are not always as straightforward as determining what an item looks like or where it happens to be located. The key question is often whether the item forms part of the lot or common property — and what the scheme's documents and legislation say about responsibility. When there is uncertainty, checking the strata plan and seeking guidance before arranging work can help owners, Councils of Owners and strata companies avoid unnecessary disputes, delays and costs. For more information, owners can refer to the WA Strata Titles Act 1985 and Landgate's resources on strata plans, boundaries and common property. Further information WA Strata Titles Act 1985 – Western Australian legislation — Relevant provisions concerning strata companies, lot owners, maintenance, repairs and the management of strata schemes. Landgate – Strata Titles and Common Property — Information about strata plans, lot boundaries, common property and responsibilities. Landgate – Understanding the Basics of Strata — A practical overview of common property and strata boundaries. This article provides general information only and is not intended to constitute legal advice. The responsibility for a particular repair will depend on the individual scheme, its strata or survey-strata plan, by-laws, legislation and the circumstances of the issue. Where responsibility is disputed or unclear, appropriate professional advice should be obtained. Need Help Managing Your Strata Scheme? Understanding who is responsible for repairs is just one part of effectively managing a strata property. Our experienced strata management team can assist with the day-to-day management of your scheme, including maintenance matters, communication with owners and contractors, and helping Councils of Owners navigate their responsibilities. If you are looking for professional strata management or would like to discuss your scheme, contact our team today strata@summitrealty.com.au ...
Oct 13, 2026
Tenant Damage vs Fair Wear and Tear - What’s the Difference?
Understanding the difference between fair wear and tear and tenant damage is an important part of managing a rental property. Properties naturally deteriorate over time through normal use, and tenants should not be held responsible for reasonable wear associated with living in a home. However, tenants may be responsible where damage has occurred beyond what would reasonably be considered ordinary wear and tear. For landlords and tenants, knowing where that line sits can sometimes be difficult. Factors such as the property's age, the condition of an item at the beginning of the tenancy, how it has been used and the evidence available can all influence an assessment. This guide explains the difference between fair wear and tear and tenant damage, provides practical examples and highlights why entry condition reports, routine inspections, photographs and clear documentation are so important. What is fair wear and tear? Fair wear and tear is the normal deterioration that occurs to a property, fixtures, fittings and appliances through reasonable everyday use over time. A rental property is a home, and it is expected that living in it will result in some gradual deterioration. For example, carpets may become worn in areas that receive regular foot traffic, paint may fade over time and fixtures may show signs of normal use. These changes do not necessarily mean that a tenant has caused damage. The key consideration is whether the condition is consistent with normal residential use and the passage of time, rather than being the result of misuse, negligence or unreasonable behaviour. Examples of fair wear and tear Examples may include: Minor scuff marks consistent with normal household use Paint becoming faded or discoloured over time Carpets showing normal wear in high-traffic areas Minor deterioration of grout or sealant with age Fixtures and fittings showing signs of regular use Older appliances naturally deteriorating or reaching the end of their useful life Minor marks or scratches that would reasonably be expected from everyday living Importantly, each situation needs to be considered on its individual circumstances. What is tenant damage? Tenant damage is different from ordinary wear and tear. Damage may occur where a property, fixture or fitting has been damaged through misuse, negligence, carelessness or actions that go beyond normal residential use. For example, a small mark on a wall from everyday living may be considered reasonable wear. A large hole in the wall caused by an impact is more likely to be considered damage. Other examples could include: Significant holes or damage to walls Broken doors, windows or fixtures resulting from misuse Burns or significant stains to carpets Broken tiles caused by an impact Damage resulting from unauthorised alterations Damage caused by failing to report a maintenance issue Excessive damage caused by pets where the tenant is responsible Fixtures or fittings damaged through inappropriate or careless use The circumstances surrounding the damage are important. A property manager will generally consider the evidence available rather than simply assuming that every imperfection at the end of a tenancy is tenant damage. Age and condition matter One of the most important factors when assessing damage is the age and condition of the item. An item that was brand new at the beginning of a tenancy should not necessarily be treated in the same way as an item that was already several years old and showing signs of deterioration. For example, if an older carpet has reached the later stages of its expected life and is damaged during a tenancy, it would not generally be reasonable to assume that the tenant should simply pay the full cost of installing a brand-new carpet. Similarly, an item that already had marks, damage or deterioration before the tenant moved in needs to be distinguished from damage that occurred during the tenancy. This is why the property's condition at both the beginning and end of the tenancy is so important. “One of the most common misunderstandings we see at the end of a tenancy is the difference between damage and fair wear and tear. A rental property is a home, and reasonable deterioration is expected over time. The key is looking at the condition of the property at the beginning and end of the tenancy and considering the age and condition of the item involved.” — Kim Dawes, Department Manager — The entry condition report is critical An accurate entry condition report is one of the most important pieces of evidence when assessing the condition of a rental property. The report records the condition of the property at the beginning of the tenancy and provides a reference point when the tenant moves out. Tenants should carefully review their entry condition report and raise any discrepancies or additional issues as soon as possible. Landlords and property managers should also ensure the report accurately reflects the property's condition before the tenancy begins. Photographs can provide valuable evidence Photographs can be particularly useful when documenting the condition of a property. Clear, dated photographs can help demonstrate the condition of walls, flooring, appliances, fixtures and other areas at the beginning of a tenancy. When combined with the entry condition report and inspection records, photographs can help establish whether an issue was pre-existing, normal deterioration or something that occurred during the tenancy. Good documentation protects everyone involved. Routine inspections are important Routine inspections are another important part of managing a rental property. They provide an opportunity to identify maintenance issues, monitor the general condition of the property and address concerns during the tenancy rather than waiting until the tenant moves out. For landlords, regular inspections can help identify issues before they become more costly. For tenants, inspections provide an opportunity to raise maintenance concerns and ensure problems are properly documented. Routine inspections are not simply about looking for tenant damage. They are also about maintaining the property and identifying issues that may require attention. Bond claims are not automatic A property not being in exactly the same condition at the end of a tenancy does not automatically mean that a tenant is responsible for the difference. Normal deterioration is expected when a property is occupied. When considering whether a tenant may be responsible for damage, factors such as the condition at the start of the tenancy, the age and condition of the item, the nature of the damage and the evidence available may all be relevant. Any proposed claim should be reasonable and supported by appropriate evidence. This is one of the reasons professional property management can be valuable. Property managers can assess the circumstances, review the available documentation and provide landlords and tenants with guidance throughout the process. Communication can prevent disputes Clear communication can go a long way towards preventing disagreements at the end of a tenancy. Tenants should report maintenance issues and accidental damage as soon as they become aware of them. Leaving an issue unreported can potentially allow a small problem to become more significant. Landlords and property managers should communicate clearly with tenants about maintenance, property condition and any concerns identified during the tenancy. When everyone understands their responsibilities and there is good documentation to support the condition of the property, disputes can often be resolved more easily. The goal is a fair and reasonable outcome The purpose of assessing property condition is not to penalise tenants for living in a home, nor is it to overlook genuine damage. The goal should be a fair and reasonable outcome based on the circumstances and available evidence. For tenants, this means taking reasonable care of the property, reporting issues promptly and documenting the condition of the home. For landlords, it means recognising that reasonable wear and tear is an expected part of owning a rental property and considering the age and condition of items before seeking compensation for damage. For property managers, it means helping both parties understand their responsibilities and assessing issues objectively. Five key takeaways Not every mark, scratch or worn item is tenant damage. Normal deterioration is expected when a property is occupied. Tenant damage is different from ordinary wear and tear. Damage may arise from misuse, negligence or actions that go beyond normal residential use. The age and condition of an item matter. A landlord generally cannot expect a tenant to pay the full replacement cost of an old or already deteriorated item. Good documentation protects everyone. Entry condition reports, routine inspection reports and photographs can help establish what changed during the tenancy. The goal should be a fair and reasonable outcome. Property managers can help assess the circumstances and provide landlords and tenants with guidance throughout the process. Understanding the difference benefits everyone Fair wear and tear is a normal part of renting a property. Tenant damage is different and may result in responsibility for reasonable repair costs. The distinction is not always as simple as looking at a mark or damaged item in isolation. The condition of the property at the start of the tenancy, the age and condition of the item, the circumstances surrounding the damage and the evidence available should all be considered. With accurate entry condition reports, regular inspections, photographs, clear records and open communication, landlords and tenants can have greater confidence that property condition is being assessed fairly. Further information For more information about rental property responsibilities in Western Australia, landlords and tenants can refer to: WA Residential Tenancies Act 1987 – provisions relating to tenant responsibilities, property condition and damage. Consumer Protection WA – Renting a Home – information for landlords and tenants about rental property responsibilities and tenancy requirements. If you have questions about property management, our experienced team is here to help. Get in touch with us today by emailing reception@summitrealty.com.au to discuss your property management needs. This article is intended as general information only and should not be relied upon as legal advice. Residential tenancy laws and requirements can change. Landlords and tenants should refer to the current legislation and Consumer Protection WA information or seek appropriate professional advice for their individual circumstances....
Aug 27, 2026
How Are Strata Levies Calculated in WA?
How are Strata Levies Calculated in WA? For many strata owners, receiving a levy notice can raise a simple question: how was this amount actually calculated? Strata levies are not simply an amount decided by a strata manager or added to a notice at random. They are based on the anticipated costs of operating and maintaining the strata scheme, with each owner’s contribution generally determined according to the unit entitlement of their lot. Understanding how the budgeting and approval process works can make levy notices easier to understand and highlight why paying levies on time is so important to the ongoing financial health and maintenance of a strata property. What are strata levies? Strata levies, also known as contributions, are payments made by lot owners to the strata company to fund the costs and expenses associated with running and maintaining the scheme. These costs can include maintaining common property, insurance, gardening, cleaning, utilities, administration, strata management fees and other expenses associated with the operation of the property. The strata company has a responsibility to manage and maintain common property for the benefit of all owners. This means having sufficient funds available is essential to ensure the scheme can meet its financial obligations and keep the property in good condition. In simple terms, strata levies provide the financial resources needed to run the property today and plan for its future. How is the annual strata budget prepared? The amount owners pay in levies starts with the strata company's annual budget. When preparing the budget, anticipated expenditure for the coming financial year is considered. This can include regular operating expenses, such as: Building and public liability insurance Gardening and landscaping Cleaning Electricity and other utilities for common property Routine repairs and maintenance Strata management fees Administrative and compliance costs Other anticipated expenses associated with the scheme The budget should also take into account the scheme's existing financial position and expected income and expenditure. For schemes that are required to have a 10-year maintenance plan, the budget must also take that plan into account. The strata manager can assist the Council of Owners by providing financial information, reviewing previous expenditure, obtaining quotes and helping identify anticipated costs. However, the strata company remains responsible for determining the amounts required. Who approves the budget? The proposed annual budget is presented to owners at the Annual General Meeting (AGM). Owners have an opportunity to consider the proposed expenditure and levy contributions before voting on the budget. In WA, the strata company is required to prepare an annual budget for approval at the AGM by ordinary resolution. This means the levies shown on owners' notices are linked to a budget that has gone through the strata company's governance and approval process. The Council of Owners plays an important role in overseeing the financial management of the scheme between general meetings, while the strata manager, where one is appointed, provides professional assistance with administration, financial management and compliance. Administrative Fund vs Reserve Fund One of the most important distinctions for strata owners to understand is the difference between the Administrative Fund and the Reserve Fund. Administrative Fund The Administrative Fund is used for the regular and ongoing costs of operating the strata scheme. This can include: Insurance Gardening and cleaning Routine maintenance and repairs Common property utilities Administrative expenses Strata management fees Other day-to-day costs of managing the scheme The Strata Titles Act 1985 (WA) requires a strata company to establish an administrative fund sufficient, in its opinion, for the control and management of common property, insurance premiums and other obligations of the strata company. Reserve Fund The Reserve Fund is designed to help the strata company prepare for significant future expenditure, such as major repairs, maintenance, renewal or replacement of common property. Examples could include: Major roof repairs Repainting Lift replacement Significant building works Structural changes Other substantial future capital expenditure For designated strata companies — generally schemes with 10 or more lots or a building replacement value of $5 million or more — a reserve fund and 10-year maintenance plan are required. The 10-year plan identifies anticipated major works and their estimated costs and must be reviewed at least every five years. Having money set aside for future works can help reduce the risk of owners facing unexpectedly large financial demands when major projects become necessary. How are individual strata levies calculated? Once the total amount required for the financial year has been determined, each owner's contribution is generally calculated according to the unit entitlement of their lot. Unit entitlement is recorded on the registered Schedule of Unit Entitlements. It represents each lot's proportionate interest within the scheme and is an important factor in determining the contributions payable by owners. For administrative fund contributions, the Strata Titles Act 1985 (WA) provides that contributions are generally levied in proportion to the unit entitlements of the respective lots, although scheme by-laws may provide for a different basis in certain circumstances. Reserve fund contributions are levied in proportion to unit entitlements. A simple example Imagine a strata scheme has a total annual budget of $120,000 and the combined unit entitlements of all lots equal 1,000. If your lot has a unit entitlement of 100, your proportion is: 100 ÷ 1,000 = 10% If the entire $120,000 were being raised on that basis, your annual contribution would be: 10% × $120,000 = $12,000 per year If levies are payable quarterly, this would equate to: $12,000 ÷ 4 = $3,000 per quarter This is a simplified example. In an actual scheme, administrative and reserve fund contributions may be calculated separately, and the scheme's by-laws and the requirements of the Strata Titles Act 1985 (WA) must be considered. It is also important to understand that unit entitlement is not simply based on the size of a lot. Landgate explains that unit entitlement is based on the relative value of lots, with different valuation approaches applying to strata and survey-strata schemes. Why do strata levies sometimes increase? An increase in strata levies does not necessarily mean the strata company is spending unnecessarily. Costs can change from one year to the next due to factors such as insurance premiums, contractor costs, utilities, repairs, maintenance requirements and planned capital works. A responsible budget should consider both the immediate operating requirements of the scheme and its longer-term maintenance needs. For schemes with a 10-year maintenance plan, anticipated future works should be considered when preparing the annual budget. Keeping levies artificially low may appear attractive in the short term, but insufficient funding can make it more difficult for a strata company to maintain the property properly or pay for major works when they become necessary. Why paying your levies on time matters Every owner contributes to the financial health of the strata scheme. When owners pay their levies on time, the strata company has the funds it needs to pay invoices, maintain common property, meet insurance and other financial obligations, and build reserves for future works. Unpaid levies can place additional financial pressure on the strata company and, ultimately, other owners. Regular and appropriate levy contributions therefore aren't simply another cost of owning a strata property — they are an investment in the ongoing operation, maintenance and protection of the property. The bottom line Strata levies are not set at random. They are based on the costs the strata company anticipates it will need to meet, as outlined through the annual budgeting process. The process can be summarised as: Assess anticipated expenditure The strata company considers operating costs, maintenance requirements, insurance, existing funds and future expenditure. Prepare the annual budget The proposed budget identifies the income and expenditure required for the coming financial year. Consider the reserve fund and future works Where applicable, the 10-year maintenance plan helps identify future major works and the funding required. Present the budget to owners The proposed budget and levy contributions are presented at the AGM. Owners approve the budget The annual budget is approved by ordinary resolution at the AGM. Levy contributions are calculated Owners' contributions are generally determined according to their lot's unit entitlement, subject to the requirements of the Act and applicable by-laws. Understanding this process can give owners greater confidence when reviewing their levy notices and participating in AGM discussions. Ultimately, strata levies play an important role in maintaining the condition of common property, meeting the scheme's financial obligations and planning for the future. A well-managed strata scheme needs appropriate funding today to protect the property and its value tomorrow. Want to understand your strata levies? If you have questions about your levy contributions, annual budget or the financial management of your strata scheme, our experienced strata team is here to help. Get in touch with us today by emailing strata@summitrealty.com.au to discuss your strata needs or find out how we can help your scheme be better managed. For further information, owners can refer to the Strata Titles Act 1985 (WA) and Landgate's information on strata in WA. This article provides general information about strata levies in Western Australia and should not be taken as legal or financial advice. Specific levy arrangements can vary between strata schemes and should be considered in conjunction with the Strata Titles Act 1985 (WA), regulations and applicable scheme by-laws....
