Who Pays for What? Your Complete Owners Corporation Guide
By MJS Body Corporate
"Why am I getting two sets of levy notices?"
"My property manager says it's not their problem - who do I call?"
"I thought my levies covered everything!"
If you've ever asked these questions, you're not alone. Every week, we hear from confused owners who don't understand the basics of owners corporation living - and end up with unexpected bills, frustrated tenants, or worse.
This guide answers the questions our clients ask us every day. You'll finally understand who's responsible for what, why you pay the fees you do, and who to call when something goes wrong. No jargon, no assumptions - just clear answers to help you avoid costly mistakes.
What This Guide Covers
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What Is an Owners Corporation?
An owners corporation can be best described as a property where private property (your lot) is built on a shared space (common property).
This common property can be land and the various facilities and services that would be required to service all lots. Think of it as a small community where everyone owns their individual unit plus a share of everything else.
Key Points to Remember:
- Your Lot: The apartment, flat, car park or storage unit described on your title
- Common Property: Everything else – gardens, driveways, hallways, lifts, roofs, external walls
- Shared Ownership: You own a share of the common property as a tenant in common with all other lot owners
💡 Important:
An owners corporation is a legal entity that manages the common property for the enjoyment of all lot owners and tenants. It's not optional – if you buy into a multi-unit development, you automatically become part of the owners corporation.
Why Some Properties Have Multiple Levies
"Why am I getting two (or more) levy notices?"
This is completely normal for some properties - here's why:
Multiple owners corporations exist to split costs fairly. Not everyone uses all facilities, so not everyone pays for them.
How It Works
Typical Example:
- Owners Corporation 1: Everyone pays (covers gardens, driveways, insurance)
- Owners Corporation 2: Only upper floor units pay (covers lift maintenance)
Ground floor units don't use the lift, so they're not in OC2 and don't pay those costs.
💰 CRITICAL: How to Pay Multiple Levies
Each owners corporation has its OWN bank account and reference number!
- ✗ DON'T combine payments
- ✗ DON'T use the same reference
- ✓ DO pay each levy separately
- ✓ DO use the exact reference on each invoice
Paying incorrectly causes major headaches and can result in penalty interest!
Other Examples of Multiple OCs
- Residential vs Commercial: Shops pay for customer parking
- Different buildings: Each tower has its own OC plus a shared OC
OC Manager vs Property Manager: Who Does What?
🚨 This causes more confusion than anything else!
Many owners don't realize these are two completely different people with different jobs.
Owners Corporation Manager (also called Strata Manager)
Your OC manager is a professional who manages the building and common areas for all owners.
They Handle:
- ✓ Common property repairs (hallways, gardens, common roofs, lifts)
- ✓ Building insurance and claims
- ✓ Collecting levies from owners
- ✓ Organizing AGMs and committee meetings
- ✓ Managing building finances
- ✓ Dealing with issues between residents
They DON'T Handle:
- ✗ Repairs inside your unit
- ✗ Tenant issues
- ✗ Rent collection
- ✗ Your contents insurance
Property Manager
A property manager works for a real estate agency and looks after rental properties for landlords.
They Handle:
- ✓ Finding and managing tenants
- ✓ Collecting rent
- ✓ Repairs INSIDE your unit
- ✓ Routine inspections
They DON'T Handle:
- ✗ Common property issues
- ✗ Building insurance claims
- ✗ Levy payments
- ✗ AGM matters
🔑 Simple Rule:
Inside your unit = Property Manager
Outside your unit = OC Manager
Tenants should NEVER contact the OC manager directly - they go through their property manager who then contacts the OC manager if needed.
What Your Strata Fees Pay For
The fees or levies for the Owners Corporation are determined by the various functions and services necessary for its daily operation. These expenses and activities pertain to common property, from which all owners benefit, and the costs are shared among all owners.
Your Levies Cover:
- Building insurance for common areas and structure
- On-site building management (if applicable)
- Maintenance and service agreements for lifts, fire safety, gardens
- Utilities for common areas (lighting, water for gardens)
- Administration costs including strata management fees
- Capital works fund for future major repairs
How Levies Are Calculated
Levies are calculated and raised based on the approved budget during the AGM and in conjunction with your specific lot entitlements.
The Process:
- Owners are presented with a proposed budget at each Annual General Meeting (AGM)
- The budget shows all expected costs for running the OC
- Owners vote to accept the proposed annual budget
- Fees are then levied in intervals as agreed at the AGM
💡 Tip: You should have received a copy of the approved budget with your OC Certificate upon purchase. If you can't locate it, contact accounts@mjsbc.com.au for a copy.
Your Rights and Responsibilities as a Lot Owner
As a lot owner, you have specific rights and obligations that are important to understand:
What You Own
- Your apartment, and if relevant, your balcony, courtyard, car park or storage unit
- Everything on your title as described in the plan of subdivision
- A share of the common property, as a tenant in common with all other lot owners
Your Rights
- Be involved in your owners corporation by attending general meetings
- Vote at general meetings and in postal ballots (unless ineligible due to unpaid fees)
- Inspect owners corporation records at any reasonable (and agreed) time
- Use and enjoy the common property
Your Obligations
- Pay all owners corporation fees and charges
- Maintain and repair your apartment, balcony, courtyard, car park and storage unit
- Comply with the Owners Corporations Act 2006, Owners Corporations Regulations 2020, the Rules and other laws
- Not damage or alter common property without permission
If You Don't Have a Property Manager
If a lot owner lives at the property and does not have a property manager, then any maintenance and repairs of their private property are their responsibility.
After Hours Emergency Service:
MJS is available for emergency repairs/make safes on common property. However, lot owners are responsible for all payments related to their own units including all insurance excesses.
Insurance: The Biggest Source of Confusion
⚠️ This Is Where Owners Get Hit With Unexpected Bills!
Many owners think "the building is insured, so I'm covered." This misunderstanding can cost you thousands.
What the Building Insurance Covers
Your levies include building insurance that covers:
- ✓ The building structure
- ✓ Common areas (hallways, gardens, pools)
- ✓ Shared equipment (lifts, pumps)
What It DOESN'T Cover
- ✗ Your personal belongings
- ✗ Damage to your internal fixtures
- ✗ Temporary accommodation if you can't live there
- ✗ Loss of rent (for landlords)
- ✗ Building defects in new builds
The Excess Trap
Real Example:
Your washing machine hose bursts and floods three units below. The damage bill is $30,000.
- Building insurance covers the repairs ✓
- BUT you pay the excess (often $2,000-$10,000) ✗
- Your contents are ruined (not covered) ✗
- You can't live there for 2 weeks (not covered) ✗
Your total cost: $2,000 excess + contents replacement + accommodation
🚨 What You MUST Do:
- Owners: Get contents insurance
- Landlords: Get landlord insurance (includes loss of rent)
- Everyone: Maintain your appliances to prevent damage
Remember: You are responsible for ALL insurance excesses for damage originating from your lot, even if you didn't cause it (like a burst pipe while you're on holiday).
Common Situations and Solutions
Here are the situations that come up most often and exactly how to handle them:
When You Can't Pay Your Levies
Situation: Unexpected expenses mean you can't pay your levy on time.
Solution: Apply for a payment plan IMMEDIATELY. Don't wait!
- Lodge a request for a payment plan through our website: https://www.mjsbc.com.au/knowledge-base#/en_US/client-forms/payment-plan-request-
- MJS will ask the committee to consider your plan
- Keep communicating - silence makes things worse
⚠️ Unpaid levies accrue interest and can lead to legal action
When Something Breaks
Ask yourself: Is it inside my unit?
- YES → Call your property manager (if you have one) OR organize repairs yourself
- NO → Report to your OC manager immediately
- EMERGENCY → MJS has after-hours service (but you pay if it's your responsibility)
Moving In or Out
- Submit move form at least 48 hours before
- Book lift usage if needed
- Protect common areas from damage
- You're liable for any damage during your move
Getting Documents You Need
Common Requests:
- Levy invoice copy: 2 business days
- Lot statement: 2 business days
- Insurance certificate: 2 business days
- Meeting minutes: Available to owners
Only lot owners and their authorized agents can request these however, if they have a stratafy login, they can obtain these themselves immediately.
Renovations
Always notify your OC BEFORE starting any renovation
- Some works need formal approval
- You need permission for anything affecting common property
- This includes installing air conditioners, changing windows, or flooring that might affect noise
- Getting approval protects you from having to undo work
Frequently Asked Questions
Why do I get multiple levy notices?
If your property is part of multiple owners corporations, you'll receive separate levies for each one. It's vital these invoices are paid separately as each Owners Corporation operates its own separate bank account with unique reference details.
What's the difference between my property manager and strata manager?
Your property manager handles tenant matters and repairs inside your unit. The strata manager handles common property, meetings, and building-wide issues. Tenants deal with property managers, while the strata manager works only with owners.
Do I need contents insurance if the building is already insured?
Yes! The owners corporation insurance only covers the building structure and common areas. It does not cover your personal belongings, temporary accommodation if your unit becomes uninhabitable, or landlord-specific risks. You need your own contents or landlord insurance.
Who pays if my hot water system floods downstairs?
As the lot owner, you're responsible for damage originating from your lot. This includes paying the insurance excess (which can be thousands of dollars) even if the owners corporation insurance covers the repairs. This is why maintaining your appliances is so important.
Can I just deal with my property manager for everything?
No. Property managers only handle matters inside your unit and tenant issues. For anything involving common property, building rules, or owners corporation matters, you need to work with your strata manager. Your property manager can liaise with the strata manager on your behalf for common property issues.