Time to Get Involved in Your Strata Property
Sales prices for the housing market in the Western Suburbs seems to be remaining fairly level, but the apartment market hasn’t been good to its owners. Our Sales Team reports the slump in the apartment market is due to the current over supply but also buyer feedback is that they do not see value in strata levies. While strata levies pay for the building insurance, there are a number of other expenses paid out of strata levies as well.
Owners of strata properties whether they live in it or not should for their own financial sake be involved in the running of the strata company. The most important item to review each year is the budget that is prepared for the Annual General Meeting (AGM). The budget, once approved at the AGM, will then be the basis for the amount the quarterly strata levies will be. Just recently, one of our sales colleagues was selling an apartment and the budget has approved $8,000 per year for cleaning the common areas – her comment on the common areas “I don’t know what they are doing for $8,000, as the common areas are not clean and when I see the cleaners, they are pushing dirty water around on the floor.” So, not only are the common areas presented poorly, but there seems to be no value in the cleaning bill.
The moral of my story, don’t just set and forget your strata property and think someone else will take responsibility, because everyone is thinking the same and no one is taking responsibility. Spend a small amount of time and review your budget, read through minutes and ensure you vote at the AGM, in the long term we are sure you will have a better investment.
As your managing agent we are here to assist you and can provide you with an End of Financial Year summary statement for your properties outlining all income and expenses.