In strata management, deferred maintenance is the quiet saboteur. It’s not dramatic like a fire or flood, but it’s just as destructive. It creeps in slowly, eroding buildings, budgets, and trust. And in our experience at Bettr Strata, it’s alarmingly common.
What Is Deferred Maintenance?
Deferred maintenance is the postponement of necessary repairs or upkeep, usually due to budget constraints, committee indecision, or a lack of awareness. It’s the “we’ll fix it next year” mindset that turns minor issues into major liabilities. Whether it’s a leaking roof, ageing fire systems, or neglected common areas, the longer these problems linger, the more expensive and disruptive they become.
What We’re Seeing in the Field
During our onboarding and sales process, we’re consistently uncovering buildings with significant deferred maintenance. In one recent case, a building had not addressed waterproofing issues for over five years. The result? Internal damage to multiple lots, a looming special levy, and a fractured committee.
Another example involved a scheme where the owners corporation had received a report confirming urgent common property works, but no action had been taken. The managing agent had withdrawn, and the owners were left scrambling to appoint a new one under Section 237. This is not just poor governance, it’s a breach of statutory duty.
Under Section 106 of the Strata Schemes Management Act 2015, the owners corporation must maintain and repair common property. Failure to do so can result in legal action, compensation claims, and reputational damage. Yet, we continue to see buildings where basic obligations are ignored.
The Financial Fallout
The financial consequences of deferred maintenance are brutal. A small plumbing issue left unresolved can become a full-blown water ingress problem requiring thousands in remediation. In one onboarding scenario, we identified a 25% levy shortfall due to years of under-budgeting. The committee had avoided increases for fear of backlash but now faced a special levy and owner dissatisfaction.
Emergency repairs cost more. Insurance premiums rise. And owners face unexpected levies that strain household budgets and erode trust in the committee.
Legal and Compliance Risks
Deferred maintenance isn’t just risky – it’s unlawful.
Under Section 106 of the Strata Schemes Management Act 2015, the owners corporation has a statutory obligation to maintain and repair common property. This duty is not optional, and failure to comply can result in serious legal consequences, including compensation claims from lot owners and orders from the NSW Civil and Administrative Tribunal (NCAT).
In our sales process, we’re regularly encountering buildings where this obligation has been neglected – sometimes for years. In one case, a building had received multiple reports identifying urgent waterproofing and structural issues, yet no action had been taken. The result? A growing list of defects, rising insurance premiums, and a committee now facing potential legal exposure.
These aren’t isolated incidents. They reflect a broader pattern of underfunding and avoidance that puts owners corporations at risk, not just financially, but legally. Section 106 doesn’t allow for “wait and see.” It requires proactive, timely action, and not having the funds to cover the repair or maintenance matter is not acceptable.
New Developments: A Hidden Risk
In the new build space, we’re seeing a troubling trend: budgets are often set artificially low to make levies more appealing to prospective buyers. It’s a sales tactic that may help move apartments, but it sets the scheme up for failure.
These decisions might help sell apartments, but they leave future owners and committees with the fallout: underfunded schemes, urgent repairs, and difficult conversations. It’s short-term thinking with long-term consequences.
Prevention is the best protection. That means setting realistic budgets from day one, educating buyers and committees, and treating the capital works fund plan as a living document, not a box-ticking exercise.
The Moral Obligation to Future Residents
Deferred maintenance is intergenerational theft. When today’s owners defer repairs, they pass the burden to tomorrow’s residents. It’s a form of financial and structural neglect that violates the principle of stewardship. Every strata scheme is a shared asset, and its longevity depends on responsible planning, not just for now, but for the decades ahead.
Practical Steps to Avoid the Crisis
Here’s how committees and managers can take action today:
- Create a Realistic Maintenance Schedule
A good starting point is reviewing the building’s design and inclusions to create a proactive maintenance plan that aligns with long-term asset management goals. One of the most underutilised tools in this process is the capital works fund plan. Too often, it’s treated as a “tick-the-box” document, filed away and forgotten. But when done properly, it becomes a living, breathing roadmap for the owners corporation. Time and effort should go into making it a practical, working document – one that guides decisions, supports budgeting, and helps avoid nasty surprises down the track. - Budget for Actual Costs, Not Optimism
Analyse operational needs and strike levies that reflect reality – not wishful thinking. - Engage Professionals Early
Work with strata managers, surveyors, and legal teams to identify risks and compliance gaps before they escalate. - Educate Owners
Use welcome packs and AGM presentations to explain the importance of maintenance and the consequences of delay. - Monitor and Review Regularly
Schedule annual reviews of the maintenance plan and budget. Adjust as needed to reflect building age and usage.
Final Thoughts
Deferred maintenance is not just a financial oversight, it’s a governance failure and a moral blind spot. By investing in proactive planning and transparent communication, strata communities can avoid the silent crisis and build a legacy of care, compliance, and community.
Prevention is the best protection.
Yours in strata,
JM
Disclaimer (but make it Bettr): This blog is for general information only, think of it as a friendly chat over coffee, not a binding legal document. While we’ve done our homework and cited the Strata Schemes Management Act 2015 (NSW), especially Section 106 (because it matters), this isn’t legal advice. If your building is leaking, cracking, or just generally misbehaving, please speak raise it with your strata manager and start the conversation as a priority.