What are strata fees? A complete guide

Strata living has its perks: amazing urban locations close to public transportation, being part of a community without having to do yard work or home maintenance, enjoying amenities like fitness centres, party lounges, and pools at your doorstep. Just don’t forget that those perks come at a price — a monthly strata fee.

This article is provided for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should consult with a qualified professional for advice specific to their individual circumstances.
 

What are strata fees?

Strata fees, sometimes referred to as strata levies, are mandatory financial contributions made by owners in a strata corporation. The fees are collected by the strata corporation (the legal entity made up of all owners in the strata) to cover the costs of maintaining and managing shared spaces and assets.

In British Columbia, strata fees are typically a requirement under provincial legislation. When you purchase a unit in a strata corporation, you’re also buying into a shared responsibility to help maintain common property and shared systems. The amount you pay is typically proportional to your unit entitlement — a figure that reflects the size and sometimes the assessed value of your individual unit in relation to the whole building.

Each year, the strata corporation sets an annual budget. Based on this budget, strata fees are allocated among the owners and are usually payable on a monthly basis, although some communities may use quarterly or annual billing cycles depending on the strata bylaws.
 

What do strata fees cover?

Generally, strata fees support two key funds:

• The operating fund, which covers routine expenses such as cleaning, garbage disposal, utility bills for common property, building insurance, and minor repairs.
   
• The contingency reserve fund (CRF), which is used for major repairs or replacements, such as elevator modernization, roof replacement, or repainting the building exterior.

Learn more in our guide to growing your strata corporation’s Contingency Reserve Fund.
 

Do you have to pay strata fees?

Yes, if you own a unit in a strata corporation in British Columbia, you are typically required by law to pay strata fees. This obligation is outlined in the Strata Property Act and is enforced by the strata corporation. The requirement to pay does not depend on whether or not you use certain amenities or agree with the decisions made by the strata council.

Failure to pay strata fees on time can have serious consequences. Interest charges may apply to overdue balances, and in some cases, a lien can be placed on your strata lot. This lien can affect your ability to sell or refinance the unit and, in some cases, could result in forced sale proceedings.

For strata lot owners renting out their unit, it’s important to note that strata fees remain the responsibility of the owner, not the tenant. Some owners factor these fees into the rent they charge, but ultimately, payment is a binding obligation of strata ownership.
 

When are strata fees paid?

Strata fees in British Columbia are typically paid monthly, though the exact timing and frequency can vary by building and are determined by the strata’s bylaws. Some strata corporations may collect fees quarterly or annually, but monthly billing is most common and can help provide a steady cash flow to meet ongoing expenses.

These payments are generally due on the first day of each month and are paid directly to the strata corporation or its management company. Many strata corporations now offer convenient payment options such as pre-authorized debit, online banking, or electronic transfers to streamline the process and avoid late payments.

It’s the responsibility of the strata council (or their strata management company) to prepare an annual budget and communicate any changes to strata fees well in advance. This budget is typically approved during the annual general meeting (AGM), and any increases to the fees will take effect shortly after.

In addition to regular monthly contributions, owners may occasionally be required to pay special levies. These are one-time assessments used to cover unexpected costs or capital projects that exceed the amount available in the contingency reserve fund.
 

What are typical strata fees?

On average, strata fees in British Columbia range from $0.30 to $0.75 per square foot per month. Buildings with luxury amenities or high levels of service may exceed these ranges.

Strata fees in British Columbia vary widely depending on several key factors:

• Size of the unit: Larger units usually pay more because they make up a bigger share of the strata corporation.
   
• Age of the building: Older buildings may have higher fees due to increased maintenance needs.
   
• Number and type of amenities: Buildings with pools, fitness centres, and concierge services generally require higher fees to maintain these amenities.
   
• Location: Urban areas, especially Metro Vancouver and Victoria, often see higher fees due to increased service costs and higher strata lot values.

Questions to ask about strata fees

For new communities, developers create an estimated overall budget so that you know what your anticipated monthly strata fees will be. If there’s a shortfall between the proposed and actual operating expenses in the first year, the Strata Property Act may impose a penalty on the developer. If you’re looking for a second opinion on the overall budget, check with an experienced realtor, lawyer, accountant, or strata manager.

When you’re purchasing a resale home, you should confirm if your fees include such utilities as hot water, heat, and gas. Also, how much money is being contributed to the reserve fund each year, and is it enough to cover unanticipated expenses? When is the building warranty expiring? Have any major repairs, like a new roof, been recently made or are planned? Check the minutes of past strata council meetings to get a clear understanding of what’s been completed, where money is being allocated and spent, and whether the council is proactive or tends to do the bare minimum — which could lead to greater issues. As usual, some basic due diligence before you buy will help you avoid issues down the road.

Contact us today to learn more about how FirstService Residential can make a difference in your strata community.