Buying or developing property is one thing; managing it is another. As soon as your property is set up, you realise that you’ve got to take care of so many things, including maintenance and rates payments. If you purchase your property under a strata title, you’d need to start paying strata manager fees soon after. Failure to pay for the fees would attract dire consequences, including the strata manager’s halt of maintenance services.
While many people think that strata management services fees is too expensive for an average property buyer, it’s not. Before you dismiss the service, you must compare the fees you’d have to pay a strata manager and how much you’d have to part with if you hired a real estate manager.
Understanding Strata Title
You gain strata title when you buy a portion of a property to get co-ownership. As soon as you’ve completed your purchase, you become part of a body corporate by owning a property that shares some facilities with others. Under a strata title, a strata manager takes care of many things involving the co-owned property, including the payment of insurance, cleaning of common areas, bookkeeping, financial management, maintenance, and general administrative tasks.
Strata Fees Involved
There are mainly two categories of fees you’ll be expected to pay under a strata title. These are annual and special fees.
The annual fees is usually standardised for every unit. Every unit owner has a responsibility to pay the annual fees to take care of administrative costs such as staff payment, insurance, and general property maintenance costs.
On the other hand, special fees are mainly for addressing unforeseen costs such as breakages and unforeseen legal fees, among others. Most strata managers will only ask for special fees when the annual fees can’t take care of everything.
Are Strata Title Fees Expensive?
Different people have unique fears when it comes to property ownership. Some believe that strata management fees are too high for them, while others feel it’s a waste because they trust that they can handle the relevant services independently. Once someone feels that the fees are expensive, it’s always difficult to think otherwise without getting facts that prove the contrary to be true.
If you own property but have never sought strata management services Melbourne or in whichever other Australian cities you’re residing in, it’s high time you considered the service.
Don’t focus on how much you’d have to pay without considering the services that the strata manager has to offer. Instead, examine how the strata management fees are calculated to get a clearer picture of what you’re paying for. Strata management fees are calculated in different ways, considering the size, the number of units you own, the condition of the property, availability of a gym, swimming pool, and garage, among other amenities. If the property you co-own has these shared facilities, you’re likely to pay a higher strata manager fee.
However, understanding the number and kind of services that strata managers shoulder makes it apparent that their fees are quite reasonable and affordable. The peace of mind that comes with working with strata building management service provider is invaluable.
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