145% Increase in Strata Fees

[digs75]

Got the shock of my life recently when i received my latest strata fees to be notified that the quarterly rate has jumped 145% to $1280 p/q.

Building is 38 years old, 21 units in total and due to a previous low sinking fund and capital works required the hefty fees have been agreed upon by BC for the next 5 years.

Has anyone experienced this kind of jump in strata fees ?

 

[Robbo2621]

Wow, where abouts is this?

 

[moyjos]

You should have had notification of this and had to vote for the increasing rates.

Please be sure to actually read your voting forms.... So many people just go ...tick tick tick down the voting form and don't look at what they are voting yes to.

Edited to add: I have just re-read your post ...you say the BC has agreed to the "hefty fees"
That adds to my comment about reading your voting form. YOU are part of the BC.

 

[twobobsworth]

Is that both the admin and sinking fund amount combined? Is there any money in the sinking fund? All should have been laid out at the AGM that it was coming.

 

[travelbug]

Can you set fees for 5 years? Why would you want to? Noone knows what will need to be spent in 5 years time.
These should be set and voted on at the AGM.

What is outlined for expenditure in the Sinking Fund Analysis for the next 5 years?

Why did you let it get to such a low level that required such dreastic action? Or have there been large unexpected expenditures?

 

[DaveM]

Got the shock of my life recently when i received my latest strata fees to be notified that the quarterly rate has jumped 145% to $1280 p/q.

Building is 38 years old, 21 units in total and due to a previous low sinking fund and capital works required the hefty fees have been agreed upon by BC for the next 5 years.

Has anyone experienced this kind of jump in strata fees ?

It would not have been a shock if you had attended the AGM or read the agenda and proposed levys. The "BC" doesnt agree on the levies, the owners do, they form the BC. There would have been discussion as to why the levies were being raised and agreement/debate about the amount.

Sounds like the years of cruising along on low levies are over and there is work to do, so the levies have gone up. Years ago owners should have increased the levies in line with future works requirements, but instead they vote to keep them low, the building falls apart and they then need to raise huge special levies to cover it.

Its very frustrating when AGM's are called and nobody bothers to turn up apart from the bare minimum to get a quorom, then the rest of the owners whinge about levies.

I go to all my AGM's wherever possible.. I attended two last month one had 3 out of 8 owners attend (I was the only investor out of 5 investors who turned up), another had 7 + proxies out 50 attend.

 

[Andrew_A]

It would not have been a shock if you had attended the AGM or read the agenda and proposed levys. The "BC" doesnt agree on the levies, the owners do, they form the BC. There would have been discussion as to why the levies were being raised and agreement/debate about the amount.

Sounds like the years of cruising along on low levies are over and there is work to do, so the levies have gone up. Years ago owners should have increased the levies in line with future works requirements, but instead they vote to keep them low, the building falls apart and they then need to raise huge special levies to cover it.

Its very frustrating when AGM's are called and nobody bothers to turn up apart from the bare minimum to get a quorom, then the rest of the owners whinge about levies.

I go to all my AGM's wherever possible.. I attended two last month one had 3 out of 8 owners attend (I was the only investor out of 5 investors who turned up), another had 7 + proxies out 50 attend.

My experience also with B/C's, the norm seems to be that most aren't interested.

Also it's common to see admin fees that are clearly too high for the service being delivered, the owners simply don't have the inclination to find better management or aren't aware that they have that power.

 

[Melbournian]

Got the shock of my life recently when i received my latest strata fees to be notified that the quarterly rate has jumped 145% to $1280 p/q.

Building is 38 years old, 21 units in total and due to a previous low sinking fund and capital works required the hefty fees have been agreed upon by BC for the next 5 years.

Has anyone experienced this kind of jump in strata fees ?

this is also my experience with an old building art deco - as the building is falling apart - there are many maintenance issues and the sinking funds have been used to take up the previous repairs.

which is why i always says approach all these so called quality buildings especially those art decos with care.

There is nothing much you can do as it has been agreed by the BC.

 

[Lollie]

After our Dec AGM, my levies will also increase from $680 pq to $1100 pq and for the reasons stated above - they were too low for too long. The sinking fund was enough to handle some of the repairs but then in a 27 year old building we started to get major issues, add to that an expensive fire order and we had no choice but to also pay a small special levy each. I can never get to the meetings but I always read the agenda, and communicate with a couple of the owners and the strata manager when I need to. I realise an increase is unfortunate but is necessary and just hope in time the levies will come back down a bit through good management.