What are body corporate fees used for in Australia? If you are living in an Australian property that is under a strata title, such as a townhouse, apartment, or unit, this is likely a question that has come to mind more than once. At Strata Management Consultants ™ https://strataconsultants.com.au/, we are dedicated to providing people across Australia with the information and assistance they need to change their body corporate management company. So, what are body corporate fees used for in Australia? That’s what we’re here to find out today.
- What Types of Body Corporate Fees are There?
- General Maintenance and Upkeep
- Insurance Cover
- Shared Utilities
- What are Body Corporate Fees NOT Used for in Australia?
Before we get into the question of “what are body corporate fees used for in Australia?”, we first need to ask the question of what types of fees we’re talking about.
There are two main types of body corporate fees in Australia:
Administration Fund Levies
Administration Funds levies are annual fees that cover things like insurance, administration, and the maintenance of communal areas. You can think of these fees as the “expected” fees that come with the standard operations of a building or plot of land.
Maintenance Fund Levies
Unlike Administration Fund levies, which are used for the general upkeep of a property, maintenance levies are fees that cover the sudden or unexpected costs of a building. This can include building re-painting, replacement of driveways, replacement of roof and gutters, or major repairs, among other things.
When asking the question of what body corporate fees are used for in Australia, keep in mind that it will depend partially on the state or territory you reside in. This is because different areas will have slightly different rules regarding body corporate fees.
So, now that we’ve broken down the two main body corporate fee types, what are body corporate fees used for in Australia?
The general maintenance and upkeep involved in operating a body corporate property can include everything from cleaners that take care of communal areas, stairwells and walkways to gardeners that will maintain the outdoor areas of the property. These features are an integral part of shared accommodation spaces, and will likely be a requirement of any strata title property.
Damage due to storms or natural events is to be expected with any large property. This insurance cover is there in case of structural damage, while also covering the building for public liability insurance, among other things. Keep in mind that this insurance cover does not extend to personal items within your property.
This will not be the case for all strata title properties, but in some cases, there will be a shared water meter or other utility. This can then be paid through the body corporate, the cost of which will often be included within your fees.
Broken stairwell lights, faulty gates, cracked glass doors; all of these are issues that should be handled by your body corporate if or when they arise. So, to accommodate these issues, part of your body corporate fees will go towards repairs that are outside the realm of general maintenance. A fund will also be put to the side for more major repairs in the event of larger, more pressing repairs that may be needed.
In short, body corporate fees are used for costs that are incurred within the shared areas of a strata title property. This means that costs that are incurred within the private areas will not be included in these fees. This will include private repairs, utilities that aren’t handled by a shared meter, contents insurance and anything else that isn’t considered part of the shared space of the property.
Are your Body Corporate Fees being Used Effectively?
If you feel that your body corporate fees aren’t being used effectively, or that any of the above tasks are not being completed, speak to a Strata Consultants today for help with finding a new body corporate corporation on 1300 917 848 or email us at email@example.com
Strata Management Consultants ™ 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.