Owners Corp / Body Corporate Management Fees
An Owners Corporation is entitled to set Annual Fees or Levies to cover the costs associated with the operation of the Owners Corporation. Additionally, the Owners Corporation has the power to raise Special Levies if needed.
The Owners Corporation can dictate the method and date of payment.
Annual Fees or Levies cover general administration, maintenance, insurance, and other on-going costs. Lot owners are charged their share of annual fees according to their lot liability.
Special Fees or Levies cover extraordinary or unexpected expenditure such as to urgently repair the building or to cover the cost of legal action against the Owners Corporation. Lot owners are charged special fees according to their lot liability unless works are being undertaken that will only benefit one, or some (but not all) lots. In such a case, special fees are charged using the ‘benefit principle’ which means that those who benefit more, pay more.
If the amount of proposed special fees is more than double the amount of the owners corporation’s annual fees, it must be approved by a special resolution of the Owners Corporation.
Overdue and Unpaid Fees
Owners cannot vote on ordinary resolutions if they owe fees to the owners corporation. An owners corporation can pass a resolution to charge the penalty rate of interest on unpaid fees (this rate is set by law and published on the Department of Justice website).
An owners corporation or its manager cannot charge a lot owner any other fees or charges, such as an ‘administration fee’, for overdue owners corporation fees. However, the Owners Corporation can take action to recover unpaid fees in the Magistrates’ Court of Victoria or at VCAT.
Why Are Body Corporate Management Services Important?
If you live in a flat, apartment, or a unit, you are most likely to be a member of a body corporate. A body corporate comes into play when a plan of subdivision contains common property like driveways, external walls, foyers, boundary walls, the upper surface of the floor, under the surface of the ceiling etc. Most properties may also share pipes and electrical wiring.
To avoid any disputes and differences among the owners to maintain these common areas, a body corporate company (also known as owners corporation management company) is hired. They maintain and manage the common property on behalf of all the owners. In return, the owners pay a body corporate fee which is charged annually, half-yearly, or quarterly.
Usually, a body corporate management company in Melbourne spend these funds on public lighting, exteriors of the building, security gates, intercoms, car parks, insurance costs etc. Body corporate management services can be for residential, commercial, retail, or even for industrial properties.
Professional Body Corporate Managers Ensure Better Body Corporate Management
Body corporate management is an essential service for any strata community. Your body corporate (which is now known as owners corporation) delegate duties to a body corporate manager- who is your one-point contact.
The good part is, your body corporate committee holds the right to decide who will be the body corporate manager.
The body corporate manager will be solely responsible for handling day-to-day affairs and other body corporate management services. He/she will also be responsible for coordinating the fees, property maintenance, and insurance for your common property. So, it is extremely important to have a professional body corporate manager.
Not Happy With Your Body Corporate Manager?
If you are not happy with your existing body corporate manager and need help finding a new one – speak to us. At Strata Consultants Australia, we help you find a body corporate manager who can run your strata community in the most effective manner. We understand the growing needs of Melbourne’s body corporate management services.
We are Melbourne’s only independent; no cost body corporate broker and you can trust us with the entire process of changing your body corporate manager. We help your strata community grow smartly with our stress-free services.
How We Work- Our Role and Costs
We will take care of all the legal formalities and contractual obligations involved in changing your body corporate manager. But we don’t charge anything from property owners or the body corporate committee. The new body corporate management company covers our cost.
Get Best Owners Corporation Management
Unhappy with your owners corporation management services company? We can connect you with the best body corporate companies in Melbourne. More than that, we can help you find the most competent body corporate managers available in your region. We are Melbourne’s renowned body corporate consultants and we can ensure:
- To preserve your property’s value
- Comply with the laws and legislation
- Maintain a balance within your strata community
So, get the best owners corporation management company for your property. Call us today at 1300 917 848 and find a better body corporate manager.