“How much does building management cost?” is a fair question, and the honest answer is that it depends on a handful of things you can identify in advance. This guide explains what those drivers are, what a quote should include, what is usually charged separately, and how to compare two quotes that look nothing alike.
We don’t publish a price list. Two buildings with the same lot count can need very different levels of service, and a figure without that context would mislead more committees than it helped. Every TBPM proposal is built from a site assessment instead.
What you are actually paying for
The biggest single cost in building management is the building manager’s time on your site. Almost everything else scales from that. Around it sit the costs that separate a professional provider from an individual caretaker:
- Office support that handles requests and contractors between visits
- Cover when your manager is on leave or sick, so service doesn’t stop
- After-hours emergency phone support
- Public liability and workers compensation insurance
- Reporting to the committee and the systems used to track work
The main cost drivers
Hours on site
A full-time manager on site five days a week costs more than a part-time roster, which at TBPM typically runs 8 to 20 hours a week. Choosing the right model is the single biggest decision affecting price — see full-time vs part-time building management.
Size and complexity
More lots, more floors, more lifts and more plant mean more inspections, more contractor attendances and more resident contact. Mixed-use buildings add commercial tenants, trade waste and deliveries.
Amenities
Pools, gyms, BBQ areas, car parks and loading docks each need routine checks and coordination of their own service contractors.
After-hours expectations
Emergency phone support is standard. Regular evening or weekend attendance on site is a different level of service and priced accordingly.
Scope and bundling
Some buildings combine management with cleaning, gardening or concierge services. Bundling can simplify coordination, but each service should still be priced clearly so the committee can see what it is paying for.
Building stage
A new building in its defect period, or an older one going through remedial works, may need more hours for a period than it will in steady state.
What a quote should include
A clear building management quote should state, at minimum:
- Hours on site per week, and which days
- How leave and sick cover works
- What after-hours support is included and how emergencies are handled
- Reporting frequency and committee meeting attendance
- Whether the price includes GST
- How and when the price is reviewed during the agreement
- The agreement term and termination conditions
What is normally charged separately
Building management fees pay for management. The work being managed is paid for separately by the owners corporation. Expect these to sit outside the management fee:
- Contractor and trade costs — plumbers, electricians, fire and lift contractors
- Materials and parts for repairs
- Capital works and major projects
- Specialist consultants, such as engineers or building surveyors
- Work inside individual lots, which is the lot owner’s responsibility
Watch for items that should be clear but often aren’t: call-out fees for after-hours attendance, administration fees added to contractor invoices, and commissions or rebates from suppliers. Building managers in NSW must now disclose commissions and conflicts of interest — ask how any provider handles this before you sign.
How to compare two quotes fairly
The annual fee is the least useful number for comparison on its own. Convert each quote into what you actually get: hours on site, cover when the manager is away, and what the committee will still have to do itself.
How building management fees are funded
Building management is a recurring running cost, so it is normally paid from the administrative fund and included in the budget the owners corporation adopts at its annual general meeting. If you’re changing the level of service mid-year, speak to your strata manager about how the change fits the current budget.
Where good management pays for itself
The cheapest building management is rarely the lowest-cost building. The savings come from problems found early and money not wasted:
- A blocked balcony drain found on inspection costs a plumber’s visit. Found after water has entered the slab and the lot below, it can become a remedial project.
- Contractor quotes reviewed by someone who knows what the work should cost — TBPM’s founders come from building and remedial construction.
- Service contracts and energy use reviewed for savings. TBPM includes a complimentary energy and financial audit with every management engagement.
Get a proposal for your building
The fastest way to get a real number is a site assessment. We’ll inspect the building, meet your committee and send a proposal that sets out hours, inclusions and exclusions in writing. Request your free site assessment and proposal, or read more about full-time on-site management and part-time and hybrid management.
General information only, current as at the review date above. It is not legal advice. For specific matters, contact NSW Fair Trading or a qualified strata lawyer.
About the author
Ajit Shrestha — Director, Building Operations
Ajit has 10+ years managing residential and mixed-use strata buildings across Sydney, and leads TBPM's building operations — contractor coordination, preventive maintenance, AFSS and WHS compliance, and committee reporting.