Terminating/Changing Overpriced Bodycorp

[TMNT]

Am looking for a unit/townhouse for an elderly relative,

had a look at a few of them, Most bodycorps seem to be about $50-$55 per week for a complex with a pool w/without a tennis court, and with basically nothing else,

Some of them with huge lagoon pools, tennis court, awesome bbq areas, some with gyms range from $70-$85 per week which is fair enough

However we have come across a small complex that we like, it has a smallish pool, a tennis court thats got cracks all over it, no gym, no electric gate, nothing else fancy, and the body corp is so overpriced at almost $85, which even the agent says, is the reason its been on the market for 9months,

we like it for the relative, and are considering on making an offer taking into consideration, the $30 per week extra,

if we do buy it, are we able to do a mail dropout to all the people, and get them to vote to either drop it down to a more realistic $50 per week or better still change them to a company that will?

 

[Spades]

Hi TMNT,

Doable but what's the ratio of owners and tenants?

What state?

Look at the BC minutes.

Cheers Spades.

 

[TMNT]

Hi TMNT,

Doable but what's the ratio of owners and tenants?

What state?

Look at the BC minutes.

Cheers Spades.

hey spades, thanks! I believe its about 50/50 or 40/60 or 60/40

its in QLD,

and what will the BC minutes tell me?

 

[Spades]

G'day TMNT,

Fair ratio and BC minutes will tell you how active owners are at the BC meets and what BC outgoings are.

Just as an example,the 1st body corp i attended after purchasing my unit,similar owner ratio btw,no owners attended in the past.

I got 2 owners to come along to 1st BC meet and outgoings was a rort.

We fixed that up and wound down unnecessary expenses and got rid of the shoddy handyman,he was real piece of work

Re:Qld-this link may help you

http://www.selectstrata.com.au/body_corporate_questions_owners.htm

Good luck.

Cheers Spades.

 

[travelbug]

Yes, I agree. You need to look at the minutes.

Find out how much is in the sinking fund. Maybe they are high because they are saving to get major works done? It may be the case seeing as you say it's run down. Puting fees up saves having a special levy to pay for these things. Maybe speak to an owner who may be able to fill you in.

It sounds like you are assuming greedyt body corp company and this is the least likely option.

You can't just say "let's drop it $50" without knowing why it is high.

I'm not sure about Qld but in NSW I have instigated changing Body Corps on 2 blocks I have properties in as they have not performed their job properly.

 

[TMNT]

thanks everyone, will look at sinking fund and see if I can chat to other owners

 

[Nattl3s]

Bodycorp for my IP (QLD) was very expensive. 35 units. A lot of the expense was because the entire complex was due for a 12 year repaint so the fees had been very high for a few years to cover the eventual cost as well as extensive landscaping. Also stupid electric gates x2 and a pool.
A real estate agent bought and moved in shortly before the repaint a few years ago, he got owners to vote on new BC.
BC is cheaper now since we changed and because major works have been completed.
Cheers, nat

 

[slava]

changing Body Corps?

@travelbug,

Yes, I agree. You need to look at the minutes.
...
I'm not sure about Qld but in NSW I have instigated changing Body Corps on 2 blocks I have properties in as they have not performed their job properly.

By saying Body Corps, do you mean strata management company or owners corporation (their executive committee)?
I am just not sure how it could be possible to change the executive committee at will of just one person.

 

[attrill]

The executive committee is a group of owners who oversee the activities of the managers that have been appointed by that committee. They are nominated and voted for at the AGM and cannot be sacked on a whim.

The strata managers are responsible for the day to day running of the complex, they can organise tradies, collect fees and administer the accounts etc. If the owners are not happy with the job that they are doing they can vote at the AGM on whether or not they want to sack them and find new managers.

Hope this helps

 

[slava]

@attrill, thanks for the feedback.

The strata managers are responsible for the day to day running of the complex, they can organise tradies, collect fees and administer the accounts etc. If the owners are not happy with the job that they are doing they can vote at the AGM on whether or not they want to sack them and find new managers.

As far as I understand the problem, at least in NSW the responsibility to run and maintain a strata complex is upon owners corporation - which is all owners. Not the strata manager. Strata manager only helps to run those activities or owners corporation delegate some of it to strata manager.
This is a crucial point many people I have been dealing with in strata apartments don't comprehend and expect too much either from executive committee or strata manager.

 

[travelbug]

@attrill, thanks for the feedback.



As far as I understand the problem, at least in NSW the responsibility to run and maintain a strata complex is upon owners corporation - which is all owners. Not the strata manager. Strata manager only helps to run those activities or owners corporation delegate some of it to strata manager.
This is a crucial point many people I have been dealing with in strata apartments don't comprehend and expect too much either from executive committee or strata manager.

This is true. I always go to the first meetings when I buy a unit/villa (to see how it's run). I used to join the executive committees too.
As you said people new to strata think the executive committee are paid employees of the strata company and expect the unreasonable.

The best way to implement change, or just know what's going on is to attend the AGM's and if you want join the committee.

The executive committee is voted in at every AGM. Strata companies work for the owners. Sometimes they do a great job, sometimes not, which is why you can get rid of them if the owners decide to.

 

[lamecrocs]

can we charge back to the owners corporation?

ok now assume you have a bunch of lazy EC and owners.

And you're also one of the EC members, could you do some of the tasks and charge it back to the body corporation and let strata manager to put in the financial statement?

e.g. fix things in the common area, cleaning, etc.

 

[Spades]

ok now assume you have a bunch of lazy EC and owners.

And you're also one of the EC members, could you do some of the tasks and charge it back to the body corporation and let strata manager to put in the financial statement?

e.g. fix things in the common area, cleaning, etc.

In Vic yes but you have to have an abn.Don't know about other states though.

 

[lamecrocs]

Thanks Spades, anyone know if that's applicable to NSW as well?
Once you've an ABN, you can start charging the lazy owners (within reason)?
Cheers!

 

[vaughan]

Thanks Spades, anyone know if that's applicable to NSW as well?
Once you've an ABN, you can start charging the lazy owners (within reason)?
Cheers!

You'd have to get approval before charging.

If I cleaned up your front yard then sent you the bill, would you pay me?

 

[lamecrocs]

yeah i get you. But could you get approval from EC or it has to be from AGM?

 

[peastman]

I enjoy getting onto the OC committees.

Most are rather lazy and you can persuade them to agree with anything you want.

At the end of the day though, it's all about keeping the place in good overall condition to protect your investment (at a reasonable price).

I have never understood why many investors never even attend the AGM but whinge about the fees. If you don't like them, do something about them.

 

[lamecrocs]

Hi Peastman,

I'm with you in getting EC to agree on anything as they have no idea most of the time.

But what annoyed me is the things that we don't need to solve/spend. e.g. Everyone agrees to install CCTV but when it comes viewing the footage, nobody could help as it's time consuming task.
My point is in the decision making process - nobody thought about the maintenance or post installation things.

In that example, I could help to capture the footage etc. but I'd like the requester to pay hourly rate as there is no on-site manager.

 

[Scott No Mates]

A real estate agent bought and moved in shortly before the repaint a few years ago, he got owners to vote on new BC.
BC is cheaper now since we changed and because major works have been completed.
Cheers, nat

Yes however you aren't putting anything aside for the next repaint (should be contributing 1/12 away each year rather than a big special levy).

 

[Nattl3s]

Yes however you aren't putting anything aside for the next repaint (should be contributing 1/12 away each year rather than a big special levy).

That was one of the changes. Instead of paying a huge levy a few years out from a large paint/landscape job, we now pay a smaller amount every year. So the overall fee has dropped. Cheers, nat