BC Fees - finding out what others are paying

[sacraven]

Hi all,

Its been bugging me for quite some time now, so now I want to do something about it. I believe my BC fees are far too high for the type/size of property I have and am wanting to know if there is a simple way to find out what others are paying in my apartment block.

Would the annual statement show this?

Also how would one become more active with the committee if they live in a different state to the apartment?

thanks all.

S

 

[attrill]

The body corporate fees are worked out by unit entitlement. If you have a larger unit with more area you will pay more. The strata managers will be able to tell you exactly how much each unit owner is up for each year.

If you want more of a say, go to the AGM and get yourself on the committee of owners, though this will not be easy if you live interstate.

 

[tess85]

Did you get a strata report done when you bought the property? The unit entitlements should be in the strata report etc.

 

[tess85]

Out of interest, how much are you paying, and what kind of property do you have? are there lifts/tennis courts/pools/gyms etc?

 

[josko]

Hi there,

As Tess mentions, your BC fees can be high if you have a pool and/or tennis court and/or landscaping.

I had a Waterfront Apartment with a pool and a massive Atrium in the middle of the complex.

My BC Fees were $120/week.

Regards JO

 

[The Y-man]

I believe my BC fees are far too high

Are you talking the actual management fees or all outgoings being too high?

i.e. do you feel the best prices are not being obtained for services, maintenance, etc

Cheers,

The Y-man

 

[travelbug]

There are lots of factors in pricing. As mentioned the obvious, lifts, pools etc.
But other things are age of the building, size of the block, gardens etc.
If it's a big block gardens need to be tended to, buildings need to be maintained. Older blocks may need more work.
Is it the standard fees or sinking fund that is of concern? If sinking fund is high maybe some major works need doing. One of my units had a high BC and lots of money in the bank. But they planned to overhaul the gardens so most was spent but we voted to reduce the fees after that as there were no major works coming up.
As an owner you have a say in what the fees are. Look at the annual report (which you get every year just before the AGM) and see what the fees are and the outgoing costs to see if in fact the fees are too high. If there is not a lot left over at the end of the year then fees are about right.

 

[sacraven]

Hi all,

Thanks for the reply.

My apartment is a 48sqm studio and I am paying around just under 2k a quater for starta only. Admin fund is average $1400, sinking fund around $500, insurance around $60.

There is a up-to-date gym with small lapping pool and a couple of lifts. No gardens or picnic areas. There is a concierge desk however.

This is not including any other outgoings. I don't have the annual report handy, but I remember the sinking fund being a hundred of thousand or so in credit (although I could be mistaken). Building completed in 2005 with no major works that Im aware of.

SSKB is currently the starta managers.

I emailed the manager and they sent back saying my contributions entitlements were 44, and interest entitlements 26. Im not sure what to make of this. I'm asking them to send through the schedule. Generally speaking is the bigger the apartment - the larger the contributions/interest entitlements?

I would like to have more say in what happens in my building, but Im thinking its a uphill battle being so far away logistically. What is the best way to have my voice heard?

thanks all.
S

 

[attrill]

If you want your voice heard the best way is to get to the AGM. Even better to get yourself on the committee, though I appreciate this is not viable.

Strata fees of $2k per quarter are not uncommon in blocks with pools. gyms etc, and if it has a 24hr concierge then the sky is the limit.

The strata managers are obliged to give you as an owner any information you request, so keep at it...

 

[The Y-man]

I remember the sinking fund being a hundred of thousand or so in credit (although I could be mistaken). Building completed in 2005 with no major works that Im aware of.

....

I would like to have more say in what happens in my building, but Im thinking its a uphill battle being so far away logistically. What is the best way to have my voice heard?

You'll need more than that for the lifts - they can be a couple of hundred thousand for safety/ maintenance and repairs - it's probably due soom at 5 years. 10 years is even bigger. You should see a recabling bill!!

Remember you can add items to agenda/vote by mail.

Cheers,

The Y-man

 

[sacraven]

Thanks all,

I knew lifts were expensive but hundreds of thousands?!?!?

Ok I've been given the entitlement list of all the other units and while mine is one of the smallest units - my contributions are more than some of the 2 bedders?? Any suggestions as to why this would be the case?

Thanks
S

 

[gg1965]

By any chance, is your apartment in the management pool of this building and you are counting the management fee as part of your costs? If this is so, then some of the larger 2 bedroom units may not be in the management pool - and therefore have reduced costs.

Is this a possibility for your situation?




g

 

[handyandy]

contributions entitlements were 44, and interest entitlements 26

I have never seen a discrepancy like this although I believe that some commercial/residential properties can have different entitlement splits.

From a casual inspection this would indicate that the dollars you pay for contributions are out of alignment with your unit entitlement.

Very strange unless there is something special about your unit.

Cheers

 

[The Y-man]

Ok I've been given the entitlement list of all the other units and while mine is one of the smallest units - my contributions are more than some of the 2 bedders?? Any suggestions as to why this would be the case?

Differecnes acould be:
Car parks
Storage
Courtyard

etc

Cheers,

The Y-man

 

[sacraven]

ok i've received both the entitlements list and annual report. Im understanding the break down a little further. According to the list the contribution entitlements range from 44-61 so I am apparently in the 1st tier. This still means my interest component is only 59% of my contribution where as the penthouses are up to 223% of their contribution? Is this generally the case with apartment contributions - I was under the impression it was similiar to the way rates are calculated?

This brings me to the size of the BC fees in general - is there any guidelines to check if funds are being distributed & used efficiently or does this just come from experience?

gg1965, definately just the BC fees.

Thanks,
S

 

[PropertyMan66]

BC Fees

Your unit entitlements appear a bit out of kilter - but Queensland resort-style properties do have a reputation for expensive extras and it appears you have the whole set in your complex. In regard to the breakdown of fees - there is usually an administration fund which is the 'running costs' and the sinking fund which is for programmed long-term maintenance. In NSW, Strata Managers must adhere to legislation which involves preparing a ten year sinking fund plan. But in Qld, this is more flexible.
If your goal is to reduce the fees, you have to reduce the costs of the entire complex, because your fees are a fixed portion of that total spend. I'm guessing it is a large complex, so there may be some excess to trim, but you will probably find resistance if other owners are happy with the current suppliers.
Dare I suggest that experience has taught me to examine Strata Reports with a fine toothed comb before purchasing because changing your fees is not really an option.
Good luck.

 

[units4me]

For comparison reasons, I own a 14 square, 2bed, 2 bathrm unit in on level 15 of a 23 storey, 30YO building with 68 units in total in Surfers Paradise.

Total body corp/sinking fund mounts to about $5500 PA, including "pay on time" discount.
A fair whack of that goes on salary to the onsite managers (70K PA plus 2 bedroom unit owned by body corp). The management of the building is a salary position and is NOT sold as is normal for this type of building. Onsite managers do offer management for individual unit owners, (which I have for holiday letting and they are reasonable), but as they haven't shelled out millions for the management rights, there is not the pressure on them to get bums in beds eg, schoolies, volume internet bookings etc.
Out of 68 units, only 17 holiday lets, 4 permanent lets and the balance (47) are OOs/personal holiday use. Nice quiet building, so not a high wear & tear type scenario.
Building has beautifully maintained yards and a nice pool. But no gyms/spas etc. Building is immaculately maintained. They don't scum on maintenence.

Re the lifts, we have two lifts (23 storey + ground + basement parking) which are currently being fully refurbished by OTIS, including new lift cars. Total cost is about $370K. But BC has built SFund to about $600K, so all good.

Hope this helps. Sorry for rambling on.

 

[sacraven]

Thanks all,

I'll compare my findings and see how I go with the committee.

Best Regards,

S