If you manage a strata building, you already know maintenance is one of the biggest pressure points. Owners often see it as an expense to cut back on, while residents want every issue fixed yesterday. In the middle, strata managers are left juggling competing expectations, tight budgets, and a mountain of compliance rules.
But here’s the truth: delaying or ignoring maintenance can cost far more in the long run. Across Australia, we’ve seen real cases where small problems turned into financial disasters.
In Parramatta, owners of a residential tower were hit with an $18 million bill to replace flammable cladding after the developer vanished, leaving the strata to pick up the pieces.
In Melbourne, another building faced $1.5 million in repair costs for crumbling foundations and structural cracks. With insurance refusing to cover the damage, strata managers had to help owners navigate skyrocketing levies, endless disputes, and resident frustration.
These examples highlight the hidden costs of poor maintenance: financial blowouts, legal risks, unhappy owners, and damaged reputations.
In this article, we’ll explore what “poor maintenance” really means in strata, the risks it creates, and how a proactive approach can save money, reduce stress, and strengthen trust with the communities you manage.
What Do We Mean by “Poor Maintenance”?
As a strata manager, you’re the linchpin in keeping your building in good shape. But when does a bit of delay or a quick fix become “poor maintenance”?
Let’s break it down clearly.
- Delaying what needs doing. A chipped tile, a dripping tap, a railing that’s becoming unsafe; what starts small often grows into a bigger headache.
- Quick fixes instead of real solutions. Patch‑ups like using silicone instead of addressing the root cause of leaks don’t solve the problem; they just hide it.
In one Melbourne suburb, saving a few dollars by ignoring early signs of water damage led to “millions of dollars” in repair costs just a decade later. A costly band‑aid, indeed. - Skipping inspections. Without regular checks, issues like facade cracks or roof leaks go unnoticed until they become emergencies. Investing in inspections, even hi‑tech drone‑based ones, can save you heaps down the track.
The Financial Costs of Poor Maintenance
When it comes to strata management, money talks.
And one of the clearest hidden costs of poor maintenance is the impact on the bottom line. What looks like a saving today can easily turn into tomorrow’s budget blowout.
Small Problems Become Big Bills
Putting off simple repairs almost always costs more later. A leaking pipe, for example, might seem minor until it causes structural damage, mould growth, or ruined common property. That means strata managers are forced into organising costly emergency works, often at short notice.
In Sydney’s Mascot Towers, residents were evacuated in 2019 after major cracks appeared. Years of underlying maintenance and building issues spiralled into millions in repair costs and legal disputes. Owners faced ongoing levies of up to $1,500 a week just to fund emergency fixes.
Emergency Call-Out Fees
Every strata manager knows that urgent repairs mean premium prices. A simple plumbing issue might triple in cost if it’s after-hours or requires multiple trades on-site at once. These unplanned expenses also throw off budgets, frustrating owners who see levies increasing without warning.
Insurance Headaches
Neglected maintenance can come back to bite when it’s time to make an insurance claim. If an insurer finds that damage was worsened by poor upkeep, the claim can be reduced—or even rejected. This leaves owners footing the bill and strata managers having to deliver the bad news.
A 2021 Insurance Council of Australia report highlighted how poor maintenance and building defects are driving up premiums across the apartment sector, with some buildings facing “uninsurable” status because of unresolved issues.
Long-Term Devaluation
When maintenance is neglected, owners often need to contribute special levies to cover repairs. These lump-sum payments strain budgets and can make properties unattractive to potential buyers, ultimately lowering resale values.
Poor maintenance doesn’t just damage buildings; it damages budgets.
Strata managers who push for proactive upkeep protect owners from unexpected levies, preserve property values, and avoid the constant stress of financial firefighting.
The Legal and Compliance Risks
Maintenance in strata is about staying on the right side of the law. For strata managers, neglecting maintenance can quickly lead to legal battles, fines, and compliance headaches.
Duty of Care and Safety Obligations
Strata managers have a legal duty to ensure common property is safe. That includes everything from fire exits to handrails and lifts. If an injury occurs because of neglected maintenance, both the owners corporation and, in some cases, the manager could be drawn into costly liability disputes.
Non-Compliance with Building Codes
Australia’s National Construction Code (NCC) and state-based fire safety regulations require ongoing compliance checks. Strata buildings that skip essential fire safety maintenance, such as testing alarms or replacing expired equipment, risk fines and liability if something goes wrong.
Litigation and Tribunal Disputes
When committees delay or avoid maintenance, owners often escalate disputes to tribunals or courts. This doesn’t just cost money; it consumes hours of a strata manager’s time and puts their reputation on the line.
Insurance and Regulatory Risk
Failure to maintain common property can also breach the conditions of insurance policies. Some insurers now specifically exclude claims where poor maintenance is proven to have made the damage worse. That leaves owners exposed and puts pressure on strata managers to explain why the building isn’t covered.
Legal and compliance risks are a silent but very real cost of poor maintenance.
Staying proactive protects not only the building and its residents but also your reputation as a reliable strata manager.
The Impact on Property Value
For many owners, their apartment is their biggest investment. That’s why one of the most damaging hidden costs of poor maintenance is the hit it delivers to property values. And as a strata manager, you’re often the first one they’ll hold accountable when those values fall.
Neglected Buildings Turn Buyers Away
Buyers and investors are quick to spot red flags: peeling paint, water stains, broken lifts, or long lists of unresolved defects. Even small signs of neglect can raise doubts about the building’s management and long-term viability.
Higher Levies and Special Costs Scare Buyers
When poor maintenance leads to costly special levies, it doesn’t just hurt current owners; it scares off potential buyers. Few people want to purchase into a building knowing they’ll inherit massive ongoing costs.
Reputation Sticks to the Property
A building that makes headlines for neglect or defects doesn’t recover quickly. Once the reputation is damaged, it’s difficult to attract new buyers or tenants, even after repairs are made. Negative publicity lingers, and managers may face ongoing questions from prospective owners about the building’s past.
Poor maintenance isn’t just a problem for today; it drags down property values for years to come.
By keeping buildings in top condition, you help protect owners’ investments, attract new buyers, and build trust in your role as a professional strata manager.
The Strain on Community Relationships
Buildings are communities. And when maintenance slips, it doesn’t just cause financial stress; it also frays the social fabric of the building. Strata managers are often caught in the middle of these tensions.
Frustrated Residents
When repairs drag on, residents lose patience quickly. A broken lift, a leaky roof, or unsafe common areas affect daily life. Strata managers often become the target of complaints, even if the delay isn’t directly their fault.
Disputes Between Owners and Committees
Maintenance neglect often leads to finger-pointing. Who should pay for the damage? Should the sinking fund have been better managed? These questions quickly escalate into heated committee meetings and, in some cases, formal disputes.
Decline in Trust
Owners expect their strata managers to stay ahead of problems. When issues drag on, trust erodes, not just in the committee but in the manager’s ability to do the job. This can lead to strained working relationships and, in some cases, the replacement of the strata manager.
By prioritising timely repairs and keeping communication open, strata managers can prevent disputes, strengthen trust, and create happier, more harmonious communities.
The “Silent Costs” of Stress and Time
Not every cost of poor maintenance shows up on a balance sheet. For strata managers, the hidden toll often comes in the form of wasted time, endless paperwork, and rising stress levels. These silent costs can be just as damaging as financial blowouts.
Time Wasted on Crisis Management
When maintenance is reactive rather than proactive, strata managers spend hours chasing contractors, fielding resident complaints, and dealing with urgent repairs. This time could otherwise be spent on strategic planning or improving community satisfaction.
Stress and Burnout
With owners frustrated, contractors unavailable, and costs mounting, strata managers often carry the emotional burden. The result? High stress levels and even burnout. A 2022 survey by Inside Strata found that workload and resident conflict were the leading contributors to stress for Australian strata managers.
Opportunity Cost
Time spent handling avoidable emergencies means missed opportunities to improve efficiency, build stronger client relationships, or grow your management portfolio. In other words, poor maintenance doesn’t just hurt one building; it can slow down your business as a whole.
Residents Feel It Too
The stress isn’t limited to managers. Residents in poorly maintained buildings often report anxiety, reduced well-being, and frustration. In one Melbourne case, residents described living in a structurally unsound building as “a nightmare” that consumed their daily lives and financial planning.
Poor maintenance quietly eats away at your most valuable resources: your time, energy, and reputation.
By staying proactive, you reduce crises, free up time for value-adding work, and protect both your well-being and that of the communities you manage.
How Proactive Maintenance Saves Money (and Headaches)
If poor maintenance is costly, the opposite is also true: being proactive saves money, time, and stress.
For strata managers, shifting from reactive “band-aid” fixes to planned maintenance is one of the smartest ways to protect both the building and your reputation.
Planned Maintenance Cuts Down Emergency Costs
Emergency repairs are expensive. By scheduling regular maintenance, strata managers can avoid inflated call-out fees and last-minute scrambles.
Emergency repairs are expensive. By scheduling regular maintenance, strata managers can avoid inflated call-out fees and last-minute scrambles.
Extending the Life of Building Assets
From lifts and air conditioning systems to roofs and façades, assets last longer when they’re properly maintained. This means fewer large capital outlays for owners and steadier budgets for strata managers to oversee.
Compliance Becomes Easier
Staying proactive means fire safety, essential services, and other regulated checks are handled on time. That lowers the risk of fines, tribunal disputes, or insurance claims being denied due to negligence.
Better Budgeting and Predictability
Proactive maintenance lets you forecast costs more accurately. Instead of sudden special levies, owners see steady, manageable expenses. This builds trust and reduces the chance of disputes.
Reduced Stress for Managers and Residents
When things are running smoothly, strata managers spend less time firefighting and more time adding value. Residents see issues resolved before they snowball, creating a more positive community atmosphere.
Leveraging Technology to Avoid Hidden Costs
At the end of the day, poor maintenance in strata isn’t just about leaky taps or peeling paint. It carries hidden costs: financial blowouts, legal risks, declining property values, community tension, and manager burnout.
The good news? You don’t have to carry that burden alone. With the right technology, strata managers can stay on top of maintenance before it turns into a crisis. Tools like i4T Maintenance make it simple to:
- Automate reminders for inspections and compliance.
- Track work orders and ensure contractors deliver on time.
- Provide transparent reports for committees and owners.
- Make smarter decisions with real data, not guesswork.
By shifting from reactive firefighting to proactive management, you’ll save money, protect property values, and build stronger relationships with the communities you serve.
Ready to get ahead of maintenance before it becomes a costly problem? Explore how i4T Maintenance – Maintenance Management Software can help you streamline the process, cut down hidden costs, and bring peace of mind to both you and your owners.
FAQs
Poor maintenance refers to delayed repairs, short-term “band-aid” fixes, or failure to carry out routine inspections and compliance checks. For strata managers, this includes overlooking sinking fund planning or not addressing reported defects promptly.
The key is preventive maintenance. Small, regular checks, like plumbing inspections, HVAC servicing, and pest control, stop minor issues from turning into major, expensive repairs. Being proactive saves far more than reactive emergency call-outs.
Strata managers and owners corporations have a duty of care to keep common property safe. Failing to maintain fire safety systems, lifts, or structural elements can lead to fines, tribunal disputes, and even liability if residents are injured.
Yes. Studies in Australia show that every $1 spent on preventative maintenance can save up to $5 in future repair costs by extending the lifespan of building assets and red
Maintenance management software automates reminders, tracks work orders, ensures compliance, and provides transparent reporting. This reduces the risk of delays, disputes, and cost blowouts, making the strata manager’s role easier and more efficient.