Why Strata Fees Are Still Rising— What Owners Can Do in 2025
- ENGIPRO
- Jan 8
- 5 min read
Updated: Jan 20
Quick Guide
1.Understanding the Purpose of Strata Fees
Before diving into why strata fees are rising, it’s important to understand what these fees actually cover. In short, strata fees are collected from each property owner within a strata-titled building or community to cover:
Routine Maintenance: Cleaning common areas, landscaping, snow removal, elevator upkeep, and more.
Administrative Costs: Property management fees, accounting, legal advice, and other operational expenditures.
Insurance: Coverage for common property against risks like fire, flooding, or other unforeseen events.
Contingency Reserve Fund (CRF): A savings account to finance major repairs such as roof replacement or re-piping.
These fees essentially protect your long-term investment. A well-funded strata is more likely to maintain property values—whereas neglected properties quickly fall into disrepair and lose their market appeal.
2.Key Factors Driving Strata Fee Increases
Inflation and Day-to-Day Expenses
Like every other sector, building materials and maintenance services are subject to inflation. As labor rates and the costs for essential supplies rise, so do the operational expenses. Since 2024, lingering global economic fluctuations mean service providers are charging more, forcing strata councils to increase monthly fees just to stay afloat.
Soaring Insurance Premiums
Over the past few years, many strata corporations have been shocked by significant hikes in insurance premiums. Insurers point to increased risk factors—from extreme weather events to aging infrastructure—leading to higher coverage costs. Since insurance is mandatory for strata properties, these additional costs are inevitably passed on to owners.
External Resource: Want to understand how insurance premiums affect strata communities? Check out the BC Financial Services Authority’s Strata Insurance FAQs.
Aging Buildings and Major Repairs
As buildings age, major components like roofs, elevators, and piping systems require substantial repairs or replacement. Even the most proactive strata councils will need to collect higher fees at some point to cover these big-ticket projects—especially if the contingency reserve fund hasn’t been sufficiently funded over the years.
Roof Replacements: A typical roof has a lifespan of 15–25 years, depending on materials used and climate conditions. A poorly maintained roof can cost upward of six figures for a full replacement.
Elevator Upgrades: Modernizing or replacing elevator systems is another major expense, often affecting multiple floors and requiring specialized labor.
Structural Work: Foundation repairs, exterior painting, or cladding replacements can also reach deep into strata budgets.
Regulatory Changes
Building codes and strata regulations are not static. Governments often implement new safety, energy efficiency, or accessibility mandates that can be expensive to comply with. Many regions have introduced stricter fire safety and environmental standards, directly impacting strata budgets by requiring immediate or near-future upgrades.
3.How Strata Fees Affect Property Value
You might wonder whether rising strata fees negatively impact property values—or if they actually preserve or even enhance them. The reality is both can be true:
High Fees, Well-Maintained Building
Potential buyers might see higher fees as a sign that the building is well cared for, with enough funds to cover unexpected problems. This can be reassuring, and often keeps resale values stable or growing.
High Fees, Poorly Maintained Building
Conversely, if you’re paying hefty fees but the building is still in disrepair, buyers will question where that money is going—and possibly look elsewhere.
Finding the right balance is key. Owners should pay enough to handle current and future needs but not so much that fees become unreasonably high compared to similar properties in the area.
4.What Property Owners Can Do to Manage Strata Fees
While you can’t control every factor (like inflation or unforeseen damages), you can take proactive steps to keep your fees manageable and ensure your money is well spent.
Attend and Engage in Meetings
Your strata council holds annual general meetings (AGMs) and possibly additional special meetings where budgets and major expenditures are approved. By attending and voicing your concerns or ideas, you can directly influence how the council allocates funds.
Review Financials and Budgets
Most strata corporations release financial statements at regular intervals. Take time to read these documents:
Income & Expense Reports: Understand where funds are going and question unexpected spikes.
Budget Proposals: Scrutinize proposed budgets to see if costs are justifiable.
Year-End Statements: Check if the strata council is staying within its approved budget or if there’s consistent overspending.
Prioritize Proactive Maintenance
Buildings that adopt a proactive maintenance approach—fixing small issues before they become big problems—tend to have more stable and predictable fees. Encourage your strata council to invest in smaller, routine fixes rather than waiting for a catastrophic failure, which typically costs far more.
Build a Healthy Contingency Reserve Fund (CRF)
The CRF is your safety net for major capital projects. If your strata’s CRF is underfunded, big repairs can trigger massive special levies or sudden fee hikes. Owners can push for increased contributions to the CRF during budget planning sessions so there’s a consistent buildup of funds for inevitable repairs.
Invest in Quality Upgrades
It might be tempting for a strata to choose the cheapest quote for a repair job. However, low-quality work or materials can lead to repeated breakdowns, ultimately costing more in the long run. Aim for value over price by comparing warranties, contractor reputations, and material longevity.
External Resource: For more guidelines on choosing quality contractors, visit Condominium Home Owners Association of BC (CHOA).
5.Looking Ahead: How to Avoid Major Surprises
In 2025, the economic and regulatory landscape remains unpredictable. With climate change potentially increasing insurance claims and building codes becoming more stringent, it’s essential to future-proof your investments.
Stay Informed: Keep up with changing regulations in your province or city.
Encourage Long-Term Planning: Urge your strata council to think 5–10 years ahead, not just to the next AGM.
Upgrade Wisely: Energy-efficient and eco-friendly retrofits may have higher upfront costs but often yield long-term savings and potentially government rebates.
6.Introducing a Vital Tool: Depreciation Reports
Even if a strata is well-managed, large expenses can still come as a shock if there’s no long-term planning document. A Depreciation Report (DR) maps out the lifespan of major building components, estimates when they’ll need replacing, and details the approximate costs involved. With this document, strata councils—and owners—can make informed decisions about future contributions and avoid panic-inducing levies.
Benefits of a Depreciation Report
Accurate Budgeting
Project upcoming costs for the next 5, 10, or even 30 years, so you can set strata fees accordingly.
Reduced Risk of Special Levies
By gradually increasing your CRF, you minimize the need for sudden extra charges.
Higher Property Value
A building with a clear maintenance roadmap is more attractive to potential buyers and lenders.
Regulatory Compliance
In many jurisdictions, depreciation reports are either mandatory or strongly recommended. Having an up-to-date report keeps you aligned with local laws and best practices.
7.How We Can Help
If you’re tired of unexpected fee hikes and want greater transparency and control over your building’s financial future, we’re here to assist. Our team specializes in creating comprehensive Depreciation Reports tailored to the unique needs of your strata community.
Ready to get started? Try our Depreciation Report Price Calculator to see how affordable proactive planning can be. Our experts will guide you through the process, ensuring your building is set up for success—no matter what 2025 (and beyond) brings.
Final Thoughts
Strata fees may seem like a necessary evil, but in truth, they are your best defense against the deterioration of your property. By understanding the root causes of these rising costs—like inflation, aging infrastructure, and regulatory changes—you can actively work with your strata council to keep fees fair, protect your investment, and maintain a building you’re proud to call home.
And when it comes to long-term financial planning, there’s no better ally than a Depreciation Report. Equip your strata with the insights and roadmap needed to avoid nasty surprises and ensure that every dollar you contribute truly goes toward a healthier, happier community for years to come.
External Links:
The contingency reserve fund (CRF) in strata corporations - https://www2.gov.bc.ca/gov/content/housing-tenancy/strata-housing/operating-a-strata/finances-and-insurance/the-contingency-reserve-fund-crf
BC Financial Services Authority’s Strata Insurance FAQs - https://www.bcfsa.ca/industry-resources/real-estate-developer-resources/strata-property-faqs
Condominium Home Owners Association of BC (CHOA) - https://choa.bc.ca/
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