Owners who've inherited a strata manager from the developer often find they're paying tower-block fees for a 2-lot scheme — whether that's a duplex or 2 separate houses on one block. Owners who've never had one sometimes discover the opposite — they've been paying nothing and are uninsured. Here's what a sensible 2-lot budget looks like.
The unavoidable costs
| Item | Typical range (whole scheme, per year) | Notes |
|---|---|---|
| Building insurance | $1,500–$4,000+ | Depends on rebuild value, location, claims history. The only line that must exist. |
| Common property maintenance | $0–$2,000 | Gutters, shared driveway, external painting cycle. Varies enormously. |
| Capital works fund contribution | $0 or an agreed amount | Optional for many 2-lot schemes (s 74(5)) — see our guide. |
| Valuation for insurance | ~$300–$500 every 5 years | Not a set legal interval, but the insurance must cover the full rebuild cost (s 161); a valuation every 3–5 years is standard practice. |
The optional cost: management or administration
| Service | What you get | Typical cost |
|---|---|---|
| Full strata management | Trust account, levy notices, bill payment, financial statements, meetings | Often $1,500–$3,000+ a year for 2-lots — plus disbursements and, frequently, an insurance commission |
| Administration only (Duplex Strata) | Roll and records, annual insurance check, written-resolution templates, chased for you, s184 certificates, compliance statement — owners pay bills directly | $395 + GST a year for the scheme |
| Self-managed | You do all of the above yourselves | $0, plus your time and the risk of missing something |
One-off costs
- Section 184 certificate when a lot sells — regulated fee, currently $109 + GST, paid by the requester.
- Title or plan search — $20–40 from NSW Land Registry if you don't hold the registered plan or by-laws.
- By-law registration — solicitor's drafting plus lodgement; budget $1,000–$2,000 all-in if you ever need one.
- Mediation or NCAT — only if things go wrong.
Three things to challenge on an existing management bill
- Insurance commission. Ask whether the manager or their broker is paid a commission on your premium and how much. It must be disclosed (ss 57, 60, 71) and it's negotiable.
- Disbursements. Printing, postage, "administration" and software fees can add hundreds a year. Ask for the schedule.
- Meeting fees. If you're being charged to convene an AGM that two people could hold over a kitchen table — or that the new rules will abolish — say so.
How the costs are split
By unit entitlement, as shown on the registered strata plan (s 83(2)). For most 2-lot schemes that's 50/50, but not always — a larger lot may carry 60 or 55 units. It isn't something the owners can vary by agreement without changing the plan.
Where the law is at (03-10-2026)
- From 1 October 2026 (now in force): 2-lot schemes no longer lodge the annual Strata Hub report (NSW Fair Trading, "Changes to strata laws").
- Small strata scheme rules (no meetings, decisions by written resolution of both owners, new s 7A): in a Bill that has passed the Legislative Assembly and is before the Legislative Council. They start on a date to be proclaimed. Until then, where the law still requires a meeting, we give you a simple template pack so you can hold it yourselves in a few minutes.
- Unchanged: the duty to insure the building for full replacement value in the owners corporation's name, to keep common property in repair, to keep a strata roll and records, and to provide a Section 184 certificate when a lot is sold.