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  • #53290
    neirbokj
    Flatchatter

    hi is there any info on the range-average of strata levies (I think the OP means Strata Management fees – JT) in nsw for differing size strata schemes .. our manager is quoting we are getting a great deal with 170 properties and an average of $275-308 pa per.. i think this is excessive but have no comparison .. is there anything available.
    Would it be possible to categorise “service offerings” .. like “full” entailing a complete bundle as we are getting incl building mntce control  .. “medium” which may be full less building mntce control accounts plus say 6SCMs, an EGM and the AGM .. and “light” which would be just the strata roll mgmt. and accounts??
    I reckon you could make this part of a premium offer available for $s .. along with representative data from strata managers in each region ;;)

    • This topic was modified 6 months, 3 weeks ago by .
Viewing 5 replies - 1 through 5 (of 5 total)
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  • #53313
    Jimmy-T
    Keymaster

    As we have said many times on these pages, if your scheme has a lot of  dealings with your strata manager, then you should go for a contract that’s more expensive but all inclusive.

    If everything is settled and the strata manager is just orgnsisng meetings, collecting levies and paying bills , then it’s worth going for a less expensive contract thatallows for Schedule B charges.

    If I’m reading your post correctly, you are paying a lot more than the quoted figures in your actual strata management fees.  So ask the strata manager what an all-inclusive (no schedule B charges), contract would be.

    If they can’t offer a serious reduction on $75k, then you are entitled to look elsewhere.  By the way, the average per unit fees these days seem to be between $260 and $300 (but it all depends on the Schedule B charges and how keen they are to top up with them).

    • This reply was modified 6 months, 3 weeks ago by .
    #53310
    neirbokj
    Flatchatter
    Chat-starter

    Hi thanks for the informative feedback .. yes, the wording of my request was incorrect .. it is the av fee per lot $275-308 that we are having quoted back to us as good value before the “extras”  .. our property is valued at $65M so 0.08-0.15% is $52-$97.5K with 170 lots that is $305-$573 per lot .. we are actually paying $75K pa which is $441 per lot.. we are coping the “additional ” charges for everything possible

    Would love to see a table reflecting “service level” lots and av per lot costs ..

    Thanks so much for the informative chat

    #53308
    kaindub
    Flatchatter

    Whilst most strata managers in NSW use the SCA contract, I have found it impossible to compare apples with apples.
    Firstly for the management fee it’s generally true that the larger the scheme the cheaper per lot. But the charge varies between strata managers.

    Secondly all strata managers supply charges in schedule b. Again charges between strata managers varies. What you need to really work out with the prospective strata manager is how hard do they enforce schedule b fees.
    The managers That I deal with tend to be lenient in their application of schedule b fees (and their management fee is not exceptionally high).

    The industry is unregulated in terms of the fees so finding the “cheapest” deal is impossible.
    There is a company that has an online website that serves as a portal for engaging strata managers ( the rules of this forum prevent me from naming them). Just type in your details and you’ll get a comparison of a few strata managers fees. You need to contact the strata managers directly to get a firm quote, but the website will give you a good idea of a ballpark cost.

    And remember that cost is no indication of the quality of service you receive. I engage with three strata managers who are all reasonably priced and find their service excellent. But that’s because we interviewed them and asked hard questions of the candidates before selecting them.

    I also highly recommend every OC to retender their strata management near the end of the current contract. It ensures that your current strata manager doesnt increase their fees unreasonably knowing  you’re just going to roll over.

    #53296
    Jimmy-T
    Keymaster

    The detail on levies on your post is unclear.

    Despite the wording in the initial post, I think the question was about strata management fees

    • This reply was modified 6 months, 3 weeks ago by .
    #53294
    tharra
    Flatchatter

    The detail on levies on your post is unclear. From dim memory there is a calculation of around .8 to 1.5% p.a. of the value of the property. You also need to take in account service offerings by the owner’s corporation. e.g. how many lifts, concierge service, security, pools, spas, gyms, gardens, bbq areas, common areas footprint size (paint, carpet, maintenance), infrastructure – pumps, cooling towers, ventilation, distribution boards, TV aerials, communications etc.

    Levies often aren’t high enough for upkeep of the owner’s corporation leading to special levies because the money hasn’t been raised to deal with maintenance in a timely manner.

    Check the 10 year capital works schedule for your strata plan – you should have one with 170 lots.

     

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