One of the longest-running rows in strata has been around the fact that strata managers can legally charge commission on the insurance policies they organise for strata owners.
Considering strata insurance is compulsory, that seems a bit rich to many owners. Add to the fact that until recently in NSW it was very hard to cancel a strata manager’s contract – or even just let it run out – strata insurance commissions have been a thorn in many strata schemes’ sides for a long time.
On the other side, many small strata management firms wouldn’t stay afloat if they didn’t get insurance commissions.
By the way, while insurance firms will let strata schemes organise their own cover, they won’t discount the premium by the commission they are no longer paying.
It’s complicated and the most state governments will do is instruct strata managers that they must reveal the value of any commissions they are receiving. End of story.
None of which is of any use for an owner in a block in Victoria where, he reckons the strata manager is getting 20 per cent commission, totalling $1000 a year, from his scheme alone – and his predecessor lied about it.
How does his scheme get out of it? Can they? That’s HERE.
Elsewhere on the Forum
- Contrary committee stymies tidy tenant, forcing removal of pot plants. That’s HERE.
- Strata manager wants to charge me $400 for sending out material for AGM. That’s HERE.
- Upgrading non-compliant fire hydrants – expert needed. That’s HERE.
- Queensland owners seek support for petition demanding changes to legalised corruption of Body Corporate legislation. That’s HERE
- Strata council (committee, WA) has turned shared washing machines into paid laundry service. That’s HERE.
- Latest posts on paying a tenant for putting the bins out HERE.
- Latest posts to and from a strata newbie HERE.
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