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[Jimmy-T]

Our Strata fees are too high.  Our Managing agent now wants to put them up another 30%. We have four units in the building, no lift, no pool.   It is a 1920’s building in good shape.

We live in our unit and the other three are owned by investors and leased out. Two of the other owners always vote against us and the third owner never comes to the meetings.

We have no say whatsoever. This is becoming very stressful for both my husband and myself. 

We hold 36% entitlement  in the building and it is our home.  Because of the situation we are going to have to sell our home, if they put up the Strata fees again we will have great difficulty selling it.   The Real Estate Agents are already saying that the fees are too high.

The AGM is being held on 30^th September. 

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[Jimmy-T]

36 percent is a pretty powerful vote and you could certainly use it to block any special resolutions such as those required for by-laws and exclusive use  etc etc.

What you really need to do right now is to get the other non-attending owner to give you their proxy which can only be provided on the appropriate proxy form which you can download from that link, print it up and get your absentee neighbour to sign it.  Telling them that they are about to be over-charged in their levies should do the trick (I’m assuming there is no good reason for the levy increase).

I would also make sure that the other neighbours have both paid their levies up to date on  the night of the AGM – failure to have done so means they can’t vote.

And finally, failing all that, I would make clear that you will use your vote to block anything that requires a special resolution until such times as spending is brought under control.

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[Cosmo]

JimmyT, I have seen owners claim excessive fees but when I have gone through the accounts etc the level of fees was appropriate. I am not saying this is the case here but it is not always that simple.

Relevant questions that you should be making enquiries into are:

1. What do the accounts show? Are there any unnecessary expenses and is all income accounted for?

2. Are payments from accounts properly made and competitive? eg the strata isn’t being overcharged for work (including management fees).

3. What does your sinking fund show in the way of planned future expenditures that are necessary?

As long as your fees are properly spent and accounted for too high fees should only result in large balances in your sinking and/or admin fund.

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