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    Hello flat chatters,
    We are in the process of obtaining proposals from new strata management companies.
    Have received the first one, and the fee schedule is comprehensive (and seems transparent), but is also slightly concerning.
    In saying this, I have no idea what’s fair, and what I should be expecting to see in included serviced vs schedule 2 services?
    Our complex has some issues which we are hoping to attempt to sort out and when considering the fees, I’m a little concerned… for example:
    Establishing a functioning committee – I am concerned about the fee method for some of the administrative items i.e. “non-routine correspondence”. I think our scheme may be a bit needy for the first year whilst we establish a functioning committee – this could get expensive?
    Parking mayhem and certain other ongoing by-law beaches which are entrenched in this complex – this fee schedule charges $165 per time (whatever this means?) to deal with notices to comply. This seems scary if the committee plans to issue formal warnings – which it will likely have to do as all other avenues have failed. Is this fee normal?
    There are many other fees listed as schedule B fees – the main ones (i.e. chairing meetings etc.) are covered under agreed services.
    Can anyone provide advice on what to look out for? It’s all a tad overwhelming, and the fees schedule alone is 10 pages long!



    There are basically two kinds of strata management contracts – those that have a single fee up front for all services, those that have a reduced up-front fee plus Schedule B charges (as you have outlined has been offered to you). There is a third, actually, that has no reduction in the up-front fee and still charges for Schedule B items.

    My advice is usually that if you have a stable community where there are few if any hassles, go for the reduced fee in the hope that extras will be few and far between. If you have a system in temporary (you hope) turmoil, go for the fixed fee as the higher amount would soon be overtaken by the extra charges when people contact the strata manager as they get to grips with the new regime.

    It’s like you have two groups to feed – a family with a bunch of ravenous kids and a group of mature diners with modest appetities who don’t eat that much anyway.

    The former, you would  give the all-you-can-eat menu, because they are going to eat a lot.  The latter you would give the a la carte menu because the items may cost more individually but they are going to order fewer of them

    In your case, I would strongly recommend getting a fixed cost contract with few if any Schedule B items, at least until such times as everything has settled down.  Ten pages of Schedule B costs are a recipe for disaster in a dysfunctional strata scheme.


    Hey Yolbee,

    We recently selected a new Strata Manager. We obtained 4 quotes and the fees were pretty much the same in price offering the same services. I would say ask friends, families and Strata websites and see reviews on who are good strata managers near you.  Ask your friendly neighbor in the flats across the road see how they rate their Strata managers.  Good luck.

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