How Much Do Strata Cost in Perth, Western Australia? [Detailed Guide]
Nov 17, 2021
The real estate industry presents numerous forms of owning property today. For example, investors can now buy strata, which is ownership of a certain part of a property. This mostly happens in urban areas where people have the option of buying a piece of a building with shared amenities. After the purchase, the next important thing to consider is your strata management. Here is everything you need to know:
How is the Strata Fee Calculated?
Strata fees, often known as levies, are a common contribution made to a strata management company every quarter. All co-owners of a property must pay their state fees for their management company to keep their property in good condition. The exact amount of the strata fee is decided during annual meetings of the owners who co-share the property.
Several factors influence the strata fee that is agreed upon by owners. These include the property age, size, common space size, and amenities. In this sense, older strata buildings have higher levies, which is justified by the additional upkeep that is required over time.
Related post: What Is Strata Management In Real Estate?
The strata management firm must therefore set up a fund large enough to handle the control and management of the common factors of a property. After determining the total amount needed to keep the property running, the management team then assigns a strata fee to each owner. Remember, each owner’s strata fee, voting power, and other rights are determined by the number of units they own.
What Does The Strata Fee Cover?
The strata fees effectively cover everything necessary to keep your property and the building as a whole in excellent condition. As such, the strata fees cover insurance expenses, management fees, repairs, and utility upkeep. Most strata management companies divide strata fees into these 3 categories:
1. Administrative Strata Fees
These fees are meant to cover daily and recurring expenses. Such expenses include paying cleaners, gardeners, shared utility bills, and insurance expenses.
2. Sinking Fund Strata Fees
This category is included in the strata fees if the owners request major changes on the property. A good example would be roof replacement. Typically, such changes improve the quality of each unit.
3. Special Strata Fees
Sometimes, unexpected hazards happen on a property. For example, in case of a termite infestation, the property may need urgent repair and fumigation. Such projects are covered by special strata fees which are contributed to cover unforeseen emergencies.
Recommended reading: Why Should You Hire a Professional Strata Management Company?
Contact Home2Home to Know More about Strata Management
Are you still confused about strata management and strata fees? Worry not! Home2Home is at your service to offer you the best strata management services. Call us today and enjoy working with an expert management team on your strata property! We have also started a new strata management company, Perth Strata Co where you can ask us more about strata management.