Yes, Strata is indeed a big business ( but without a profit motive for the members running it ) when you are talking about a large strata with over 200 units. We spend about $1.5 million every year and about $900,000 are recurring fixed expenses.
Rest of the amount requires a lot of thought. In our Strata, we examine expenses line by line and see what can be done to reduce and where it can be increased to improve building’s attractiveness for prospects buyers.
All contracts must be reviewed periodically and competitive quotes obtained from equally or more reputed service providers giving longer terms for better quotes.
Over the last 7 years we were able to keep strata levy increases to 2% per year as a result of these efforts despite spending large sums under CWF as per 10 Year CWF Plan.
This year is a disaster for us as a result of very high building insurance premium following large insurance water ingress claims after 2020 February storms but owners understand the reason for the levy increase.
We entered into a 3 year energy futures contract with Energy Australia in 2020 when there was panic plunge in energy future prices following Covid19. As a result we now pay average 5 cents per kWh and saved $40,000 per year till end of 2024.
We saved another $15,000 per year after installing solar panels on our roofs in 2018. Saved another $30,000 per year by changing the Building Manager company.
Saved another $20,000 by making prospective strata managers quote strata fees and other expenses per lot and asking them to send meeting notices by post at owner’s expense if email is not given.
Hope this helps others to give better services in their communities.
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