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Imagine if you bought a new car and you were told you were now contractually obliged to have it serviced by a certain mechanic, on their terms, for th
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Imagine the voluntary association of unit owners in Queensland that for decades (44years) had been advocating for exactly the same thing. Imagine that they have been ostracised, ridiculed and dismissed as radicals who are standing in a way of big business. Imagine that for years their arguments were laughed at, but now are highlighted as great ideas calling for the sensible reform to protect the unit owners. Imagine the confusion as to why such association, being right all along, is not even mentioned by the fresh advocates for the cause. Imagine why it is so.
To put some numbers around it, many currently “Caretakers Agreements” in Queensland have a caretaking fee of $1,000 per annum + GST per home unit or villa. The fee increases annually by CPI. In some community schemes, the fee is higher – buyers are looking at $1,500 per annum + GST per home unit for a new home unit development in an inner-city suburb in Brisbane.
In a development of 20 home units or villas (which I commonly see), the caretaker receives $20,000 per annum (+ GST) for cleaning the foyers, paths and driveways, keeping the bins area neat and tidy, garbage and rubbish removal, replacing lights, reporting defects, mowing the lawn and gardening. Cleaning materials are extra. Without including the CPI increase, that’s of $500,00 (no GST) over 25 years.
As you might guess, these Caretaking Agreements are very difficult for a body corporate to terminate, although many have tried, mainly because the ‘caretaking’ is so loosely described.
The developer can sell these Caretaking Agreements, but just as often, keeps them as an annuity-style income, and employs a caretaker for much less to look after the caretakers duties.
It’s nice work if you can get it!