One of the most common questions we're asked by committees searching for a new strata manager is: "How do we know if we're being charged fairly?"
It's a reasonable question — and the answer is more nuanced than most people expect. Here's an honest guide to what strata management fees look like in Victoria in 2026.
What this guide covers
What Are the Main FeeModels?
There is no regulated fee structure for strata management in Victoria. Pricing is set by individual firms, and the models vary considerably:
Flat annual management fee
A fixed annual amount regardless of the number of meetings, maintenance requests, or hours worked. Simple and predictable for the OC, but can create incentives for managers to minimise effort on time-intensive schemes.
Per-lot fee
A fee calculated per lot, per year (e.g. $X per lot × numberof lots). Common for mid-sized schemes. Scales with the size of the building, which is broadly logical — more lots generally means more administrative work.
Commission-based
The manager earns commission from insurers. May result in alower headline management fee — the commissions subsidise the cost of placing the renewals and any claim handling. It can introduces a potential conflict of interest if the manager has a financial incentive to recommend particular suppliers or inflated insurance policies.
Hybrid models
Many firms charge a base management fee plus additional fees for specific services (extra meetings, insurance claims, VCAT appearances, major capital works projects). This can be fair — but it's important to know what triggers additional charges before you sign.
⚠️ Watch out for "additional charges" buried in schedules
A low headline fee can become expensive quickly if the contract charges extra for every disbursement, letter, or phone call. Always request a full schedule of fees — not just the annual management fee.
What Does the Management Fee Typically Cover?
A standard management fee in Victoria should include:
- Annual General Meeting (preparation, attendance, minutes)
- Levy notices and collection
- Financial reporting and annual budget preparation
- BAS preparation
- Maintenance coordination (obtaining quotes, instructing contractors)
- Routine correspondence with lot owners and tenants
- Regulatory compliance under the Owners Corporations Act 2006
What Is Typically Charged Separately?
Additional fees are common — and not necessarily unreasonable— for:
- Extra general meetings beyond what's included
- VCAT appearances and preparation
- Insurance claims management (depending on fee model)
- Major capital works project management
- After-hours emergency call-outs
- After hours meetings
What's a Reasonable Ballparkin 2026?
Without specifying what's right for your scheme (which depends heavily on complexity, location, and services required), here is a general sense of the market for small to mid-sized residential schemes in Melbourne:
- Small schemes (3–9 lots): Annual fees typically range from$1,800 to $3,500 all-inclusive
- Mid-sized schemes (10–30 lots): $4,000 to $11,000 per year, plus disbursements
- Larger or complex schemes (30+ lots or mixed-use): Fees vary widely and are generally negotiated
These are indicative ranges only. Inner-city schemes, buildings with lifts or pools, or schemes with high maintenance complexity typically sit at the upper end.
✅ The right question isn't "who is cheapest?"
A manager charging $500 less per year but failing to call you back, missing AGM deadlines, or recommending unqualified contractors will cost your scheme far more than the saving. Focus on what's included and the quality of service — not just the number.
Questions to Ask Before Signing a Management Agreement
- Is this a fixed fee, or will I receive additional invoices during the year?
- What does your agreement define as "included" vs. additional services?
- Do you earn commission from insurers or contractors?
- How do you handle after-hours emergencies?
- What is your standard response time for maintenance requests?
- How are financial reports delivered and how often?
- Who will be our day-to-day contact?
The Commission Question
Some strata managers in Victoria earn referral fees or commissions from insurance brokers and contractors. This is legal, provided it is disclosed. But it's worth asking directly — and considering whether it creates an incentive structure that serves your OC or your manager.
MJS Body Corporate operates on transparently, we offer rate structures where we receive a commission from insurance or commission free fee structure. We do not take commissions from contractors or suppliers. Our fee isour fee — we don't earn referral payments that could influence our recommendations to your scheme.