What Does Body Corporate Cover?

If you own a property in strata and community title, understanding the roles and responsibilities of a body corporate is essential. From maintaining shared spaces to enforcing by-laws, the body corporate plays a major role in ensuring the smooth operation of the property. But what exactly does a body corporate cover, and how does this impact you as an owner? We’ll take you through exactly what a body corporate is and what it does.

What is a body corporate?

A body corporate, also known as a strata corporation or community corporation in South Australia or owner’s corporation in other states, is the legal entity responsible for managing and maintaining a strata or community title scheme. When you purchase a unit in a strata scheme, you automatically become part of the body corporate, which represents all lot owners.

The body corporate’s main role is to manage common property, such as gardens, driveways, hallways and recreational areas, but it goes a lot further than that. The body corporate is responsible for all decisions that affect the property. Let’s take a more detailed look at what the body corporate is responsible for.

Common property maintenance and repairs

One of the most significant responsibilities of a body corporate is the upkeep of common property. This includes shared spaces like stairwells, gardens, driveways and lifts. Regular maintenance ensures these areas remain functional, safe and appealing for residents and visitors.

Repairs are also part of the body corporate’s duties. Whether it’s fixing a broken gate or addressing structural damage to shared facilities, the body corporate ensures that these tasks are handled efficiently, usually hiring trusted professionals for the work.

Building insurance and risk management

The body corporate is also legally required to hold common property insurance and building cover for a strata corporation. This insurance covers the structural aspects of the building, including all shared facilities and common areas against risks such as fire, storm damage or vandalism.

Risk management in general is part of the body corporate’s role. From implementing security measures to planning for future repairs, the body corporate ensures the property remains functional and appealing for the future.

Utility management and shared services

The body corporate also oversees utilities used within common areas, such as water, electricity and gas. For example, electricity used to power lighting in stairwells or water for shared gardens is managed and funded through strata levies.

Administrative and sinking funds

To cover the costs of maintenance, insurance and other expenses, the body corporate collects levies from lot owners. These contributions are usually divided into two funds:

Administrative fund: Used for everyday expenses, such as cleaning, gardening, minor repairs and insurance premiums.
Sinking fund: Reserved for long-term maintenance or unexpected repairs, such as roof replacements or emergency structural work.

These funds are carefully managed to ensure the property’s financial stability and to avoid sudden, large levies being imposed on owners. As we touched on, risk management is part of the role and that includes managing the sinking fund to ensure future upgrades are budgeted for.

Enforcing by-laws

Every strata scheme has its own unique by-laws. These are essentially the rules that all residents must follow, including restrictions on noise levels, guidelines for pet ownership and the use of shared facilities.

The body corporate is responsible for ensuring all residents comply with these by-laws, and issuing breach notices if necessary. The body corporate may also have to deal with more complex by-law issues, such as properties being used as short-stay accommodation and how this affects other residents.

While most issues are handled with good communication, in some cases, the body corporate, through its committee, may need to escalate matters further.

Dispute resolution and owner communication

Conflicts aren’t uncommon in strata and community title environments, and the body corporate is usually responsible for handling them Often, the body corporate may act as a mediator to resolve disputes between owners or residents. This might involve disagreements over noise, maintenance responsibilities or breaches of by-laws.

Individual owners may have disputes with the body corporate itself, or in particular, its committee. These disputes may arise from repeated by-law breaches or other problems within the community. Regardless, the body corporate must act in the best interests of the scheme and manage such disputes fairly.

The body corporate also ensures owners stay informed through meetings, notices and correspondence. Annual general meetings provide an opportunity for owners to voice concerns, discuss budgets and make decisions as a group.

Need more information about body corporate services?

If you’re part of a body corporate strata committee and need help with ongoing strata management, we’re here to help. Strata Management SA provides expert guidance and management services for all strata and community title schemes. From daily management to strategic planning, we’re here to help your body corporate thrive. To find out more, contact our friendly team today.