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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 30th September.
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.
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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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