Hi guys
I've just recently received my Strata invoice for 1/10/10 – 31/10/10 and the cost of the 'administrative fee' went up from $300 to $456!!!!!
I've written them an email asking for them to detail what it relates to but I just wanted your opinions.
Is such a large increase common or is this quite abnormal? If they don't have a proper reason other than to increase profits, is there anything I can do about it? Or do I just have to suck it up?
I would like to see at least some of this going to the owners in the form of property improvements but based on their current maintenance of the grounds and gardens it is aboslute atrocious as far.
Regards
Andrew
Ooops sorry that should read 1/10/10 – 31/12/10***
How many apartments in the complex? Would it be hard to get all the owners together and agree to fire the building managers?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I think there are about 7 altogether?
It's more like a flat/unit setout.
Ahhh is that possible? Do I just write a letter to each owner?
Thanks for your input! I'm just starting off on my 'wealth creation journey' and live quite marginally so a 50% increase in expenses with no value added to me does hurt!
Hi binscab,
My strata payments on my investment property have recently gone up considerably also – so am also interested to hear other's feedback on this.
My thought was that Strata Management may receive a percentage of total fees (for management). But curious to know whether this is the case, and whether there is any body in place to manage such things.
Luke
Of course it is possible. I am sure that the other owners would be annoyed by a 50% increase anyway, and that's even not considering the fact that the grounds are not being well maintained.
Letters take so long. Start knocking on doors to speed up the process and figure it out from there. Remember it might be the case that some of the units have tenants living in them rather than owners, so you might have to find out how to get in touch with the owners. eg Ask tenant who the real estate agent managing the unit is, call them, and go from there.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Fantastic!
THanks so much JacM.
Once I hear back from Strata corp re the excuse for the 50% mark up I'll let you guys know.
Will also start contacting others in the group if the excuse is lacking in substance.
Thanks once again
Scab
I'd be contacting them anyway. Sounds like you've been paying strata management fees, and they have done no maintenance work in return.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi guys,
I've heard back from them – this was their reply.
I've queried why the plumbing increased so much and whether it would be an ongoing charge.
"The main area of the budget that was increased is Plumbing, which cost almost double the amount expected during the last 12 months. There were also increases in allowance for Insurance and building maintenance.There was a slight increase allowed for the upkeep of the garden."
I will keep you posted!
"There was a burst pipe as well as regular plumbing maintenance. The increase will apply over all 4 quarters levies, however we may be able to make a reduction at the next AGM if expenses over the year are less than expected."
That's a fair increase! I have no idea how much these things cost but I guess they are just passing on their expenses?Regardless I will get in contact with the other owners and see what they think about it.
Thanks guys.
I would expect a strata manager to not only manage in a reactive manner (eg only fix stuff that is broken), but also in a proactive manner (to maintain the gardens and so on, and do any preventive work to avoid expensive works).
Like it or not, the appearance of your property from the street affects its value. If you wanted to leverage your unit to buy another property, it will matter. Ask them to pick up their game on looking after the grounds.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
The bloke mentioned that the grounds are only contracted for the lawn/weeding and leaf blowing.
There is alot of 'shrubbery' i.e. plants which are not trimmed etc so it seems like it isn't covered by them?
I will investigate this matter further or do it myself if they are going to charge me more to do it.
Thanks for all your help JacM. You raise a very good point regarding the external appearance of the property.
The shrubbery is on the common parts and as such ought to be handled in some manner by the strata manager. You are right – if the current agreement with the garden contractor doesn't cover it, then to include it will probably cost more. But surely they do not need to trim the shrubs every week. Once a quarter perhaps…
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
FYI for guys with strata property in South Australia.
Proposed changes to the strata management act in 2011 with public comment closing on December 24, 2010.
I have started a new topic in the Legal forum https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4334696regards,
TassieJH
Andrew
Where is the property located ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Do you realise that the strata managers actually work for YOU (the owners of the units)?
They don't make decisions about rises in rates. YOU DO.
Everyone who owns a unit is entitled to vote at the AGM on fees. Why weren't you there if you care about the fees charged?
I suggest you attend the AGM and have a say. Even get on the executive committee if you don't like the way things are run. I have sacked strata managers before BUT I attended meetings and knew what was going on.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
