Strata Consultants: Why Body Corporate Fees Are So High?

The recent uproar over certain politicians misusing entitlements was, for me, reminiscent of what can sometimes occur within Owners Corporations (formerly known as body corporates).

Strata owners contribute quarterly funds for the operation and upkeep of their building. Most owners corporation engage and employ a professional Owners Corporation Manager (formerly known as body corporate manager) to oversee where and how these funds are spent.

Now it should be said that the majority of Managers are ethical professionals however conflicts arise when a manager deducts fees above and beyond what they are entitled to.

A recent client, an Owners Corporation of 16 owners, was astounded to learn of the additional $7,192.60 in ‘miscellaneous costs’ on top of the $5,766.40 agreed management fee.


strata management fees & charges


The manager was unable to substantiate the extra charges to the Committee’s satisfaction and the relationship became irreparable.

The Committee met with a Strata Consultant who sought to understand the predicaments of their situation as well as to understand their needs moving forward. In consultation with the Committee we drafted a detailed tender document and invited a number of Qualified Managers to submit proposals for management.

The Committee elected to interview 2 managers from different management companies and subsequently found the right Manager for their Owners Corporation.

The cost of the new Manager’s professional management fee of $4,340.00, which is an ‘all-inclusive’ fee with no nasty surprises.

With the help of Strata Consultants Australia the Committee and Owners made a saving of 66.5% in management fees. The extra funds can now go towards repairs, utilities and future maintenance costs.


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Speak to a Strata Consultant on 1300 917 848 if you’re experiencing issues with your owners corporation management company or alternatively email us your strata questions:

The contents of this article or website are only intended to provide a general overview of the topics discussed. The author of this article makes no representations as to the accuracy or completeness of any information and the information is not intended to constitute investment, legal or professional advice. You should seek professional advice before acting or relying on any of the content. This article does not contain references to any specific company, organisation or individual, unless expressly specified.

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