As I prepared to present my research for this week's 2025 Strata Impact Conference, the evidence was made clear. Australia faces a crisis of gross strata negligence, threatening 4.2 million apartment residents.
We've been applying band-aids to building cracks for decades, and they're not holding. My research reveals systemic deferred maintenance that I can only describe as "intergenerational theft", leaving the next generation to deal with problems we should have addressed.
My cross-jurisdictional analysis exposes a stark reality: 7 of 8 Australian jurisdictions have less than 50% of the maintenance provisions that could protect residents. Over 2.1 million apartments lack adequate legal safeguards.
NSW leads with 44 out of 47 possible provisions, driven by revolutionary post-Opal Tower reforms. The rest of Australia remains trapped in pre-2018 light-touch regulation. Queensland doesn't even require repairs, only maintenance.
The 2021 Champlain Towers collapse that killed 98 people in Surfside, Florida serves a sour warning. Despite 25 years of expert reports about structural defects, owners deferred maintenance until catastrophe struck. The aftermath shows real consequences: mortgage insurers now reject inadequately maintained buildings, there are now mandatory inspections, and rising costs are forcing foreclosures.
We lack crucial data: maintenance fund balances, building replacement value percentages, and most importantly, the psychology behind maintenance negligence. Countries like Canada require annual contributions of 10% of administrative funds, a benchmark we may need to adopt.
Traditional regulatory responses are insufficient. Strata certificates don't require disclosure of building defects or unfunded repairs anywhere in Australia. We're selling properties with hidden structural liabilities. NSW's post-Opal Tower approach represents a fundamental shift from self-regulation to active government intervention. Whether this prevents future catastrophes remains to be seen.
As I present this research, 4.2 million Australians live in the buildings we're discussing. The 98 Champlain Towers victims remind us that maintenance negligence isn't about property values, it's about human lives.
The band-aids aren't working. Until we understand why we make catastrophically bad maintenance choices, even comprehensive reforms may prove insufficient to prevent Australia's own Champlain Towers moment.
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
