Reading the Fine Print: Where Body Corporate Services Companies Make Their Money

Reading the Fine Print: Where Body Corporate Services Companies Make Their Money

The Body Corporate Management Company

 
Body Corporate Services

Most Committees and owners when they want to re-assess their body corporate services company will ring around 3-4 companies and get a number of quotes.

What they’re left with and presented with is a set of essentially 2 figures:

  1. The management fee (which is for the provision of professional body corporate services); and
  2. The disbursement fee (which covers the management company for printing, postage etc.).

But what about the extra bits and bobs on top?

The “Schedule 2.2 and Schedule 2.3” charges?

“Work order” fees per work order?

“Archive and storage fee”?

“Annual compliance fee”?

One common area is the large and substantial administrative fee that body corporate services companies charge their owners and tenants when they need additional keys… It can be quite substantial for not a whole lot of work.

We had a client, a block 14 offices in Richmond, where the previous body corporate services company was charging a whopping $55 admin fee (plus the cost of the key itself ):

After a thorough process where we worked with the Committee on changing the body corporate services company, a new management company was appointed.

The new body corporate manager attended the building within 1 week of being appointed and made a number of small but effective changes for the building (i.e. a combination safe lock for the bin room, amongst other things).

Now back to keys and fine print, the new body corporate services company as well as being more professional, diligent, and responsive… didn’t charge excessive admin and hidden fees.

When it came to supplying keys and swipe cards, the new body corporate services company simply supplied these at cost.

Moral of the story –get the proposed body corporate services management contract and read the fine print.

This is essence a small part of what we do in vetting body corporate services companies that want to join our panel of Qualified & Approved Managers.

So reach for the fine-toothed comb if you’re doing to undertake the due diligence process yourself, or feel free to speak to us about changing body corporate services. We can guide on your current situation and how best to move forward.

 

Time to Change Strata Management Companies But Not Sure How to?

Strata Consultants Melbourne has been helping and guiding Committees on how to change owners corporation management companies since January 2014. We guide you through the process of changing body corporate management company and everything is done according to the body corporate rules and regulations. Speak to a Strata Consultant about changing owners corporation managers on 1300 917 848.

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