› Flat Chat Strata Forum › Levies and Unit Entitlements › Levies debate misses the point › Current Page
I hear the claims of overcharging, jobs for the boys etc. The loudest voices come from owners who are not on the committee and who rarely turn up to meetings.
One cause of this issue is a lack of communication by the committee, that is if one is active. Let owners know what is going on and why. If owners understand why decisions are made or costs incurred they can be a little more understanding.
Another cause is not the lack of committee involvement. When did your committee last audit the accounts. I don’t mean by an accountant I mean looked at every expense and queried them with the strata manager. I’ve recovered almost 10% of our budget because supplies charged incorrectly.
How often has the committee gotten heir own quotes for work around the building? The companies that strata managers use are some of the most expensive trades around. You can do better finding local tradesmen.
When was the last time you tendered for your strata management. Many strata managers have an automatic 5% rise clause, After a few years there fees get out of alignment with the market. Firstly at the next renewal challenge this clause. Most strata managers will alter this to a lower % if asked. At the next renewal ask other strata managers to tender and let your current strata manager know that this is what you are doing. They’ll sharpen the pencil.
Whilst many will disagree with me, property is not a passive investment. Whether you are just owning your own place or letting, you need to be involved. That way you can be incharge of the running costs.