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  • #8893
    Dudley
    Flatchatter

      I feel that our strata plan is paying too much and not getting value for money.

      Is there a “rule of thumb” which can be used as a starting point to determine if the fees being pair are fair and reasonable?

      I appreciate that there are many variables, age and number of buildings, quality, inclusions – pools, lifts, gardens and common area/s etc.

      Any advice or suggestions would be appreciated.

       

    Viewing 11 replies - 1 through 11 (of 11 total)
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    • #18782
      kiwipaul
      Flatchatter

        For a purely long term residential strata with no onsite manager you would be looking at $200-$300 per lot per year.

        eg 10 lots $2-3,000 per year.

        This is what roughly we pay anyway.

         

        #18783
        Sir Humphrey
        Strataguru

          We are paying ~$25,000 for ~100 townhouses so that fits the range suggested below since that works out at ~$250/unit/year.

          #18784
          Jimmy-T
          Keymaster

            Yes, about $250 per unit per year is about right.  But the fees will soon ramp up in a “difficult” building that requires, for instance, attendance at EC meetings, general meetings and Fair Trading  mediations.

            And don’t forget that smaller blocks can demand more of a strata manager’s time than larger ones so the cost per unit might be higher if you want a comprehensive service.

            The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
            #18789
            Whale
            Flatchatter

              I’d conclude that $300 / Lot / year is closest to the mark, but don’t forget all those “disbursements” that add substantially to the Management Fee.

              Back in the day when our Plan engaged the services of a Strata Manager, their additional fees for things like making and receiving telephone calls/faxes/e-mails, word processing, debt recovery (letters only), arranging quotes, issuing work orders, liaising with tradespeople, attending meetings, advice by more senior managers, archive storage, and a range of other “services” almost doubled their management fee.

              To be fair though, I believe that some Strata Managers are now including some of the above (services) in their management package, but I’ll lay odds they’re still keeping some extras in their back pockets! 

              #18792
              Dudley
              Flatchatter
              Chat-starter

                Many thanks to all re “average cost” is gives me a factual starting point to start discussions from.

                re disbursements: I am amazed by the “cost” of mail, photo-coping, postage etc which is charged each month.

                Is it possible to request that all communication from Strata Manager to owners be via e-mail? I accept that all owners would have to agree to this.

                 

                #18793
                kiwipaul
                Flatchatter

                  @Dudley said:

                  Is it possible to request that all communication from Strata Manager to owners be via e-mail? I accept that all owners would have to agree to this.
                   

                  Yes it is.

                  Remember the SM manager works for YOU and you can instruct him on how to do various jobs (providing it’s got the OC approval).

                  Think of him as the Strata Administrator (instead of manager) who carries out your instructions and advises you of the legal situation.

                  If he dosn’t like it find one who will comply with your wishes.

                  #19696
                  larry_vincent
                  Flatchatter

                    Fees for strata management administration should be falling. With documents now available on-line to owners through a secure login means that many documents can be disseminated without cost for photocopying (usually a charge of 50c a page) and postage. For large schemes (over 100 lots) this can be a significant cost saving as by-laws, minutes, and detailed financial reports can be made available on line. All of the major strata management companies have access to this facility that is provided through their strata accounting software. There are several strata specialist soft ware companies that provide this service. With the call for greater financial transparency and the significant financials involved this type of on-line service will be inevitabily made availableby all strata companies. If you cannot access your documents and financial reports on line – change your strata manager.

                    #19701
                    Jimmy-T
                    Keymaster

                      Owners have to “opt in” to email notices from the strata manager.  But how do you think people would react if they were charged an additional service fee for snail mail distribution of minutes and levies notices?  And would it be legal?

                      The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
                      #19695
                      larry_vincent
                      Flatchatter

                        Laugh Owners can opt to receive their levy and other notices/minutes via email and this has a significant cost saving, particularly for larger strata schemes. The strata management company where I live has provided each owner with a personal login to a website where they can access their own levy ledger details and other documents like AGM Minutes and a current and up to date financial report that includes a balance sheet, income & expenditure details for interested owners. This has been particularly useful. What I am suggesting is that more information be made available on the internet by strata companies for owners using a secure log in website. Most large strata companies do this now but the amount of information uploaded to the websites is limited and is variable and detailed financials are generally only provided to the Executive Committee. Financial transparency and the easy access to useful strata information would also be a welcome benefit and comfort to all owners. 

                        #19703

                        Unfortunately you will also find that many strata management companies have written into their agreements that they can also charge for sending emails so moving to purely email based system will not always save you disbursements.

                        My advice is to fins a manager who will charge one all inclusive fee so there will be full transparency. Yes, the base rate will be more expensive but you will not be slugged with all the additional expenses that you have no control over.

                        #19714
                        larry_vincent
                        Flatchatter

                          Thank you and I have checked today with the software company that hosts the secure website for owners login only access. They said that there is no charge for emailing documents, e.g. financial reports and meeting minutes, on request from this self service on line site. Some strata managers do charge for emails that they have received and sent but when you log in to access documents yourself on this site there is no extra charge to you or the strata company. The strata company does however pay an annual fee to the software company for this service but there are no extra charges when owners select and have documents emailed or downloaded to them from this website. The website is like a portal for your strata plan where you can access and download you current levy ledger and also access the latest minutes and other strata related documents. There are benefits to investors and owners seeking financial and meeting minutes and who travel a lot or live a long distance away and cannot attend meetings or the strata managers office. My interest in this topic is to encourage greater financial transparency – our annual budget is over $1.5m – and accountability by both the Executive Committee and the strata company.

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