Why higher strata fees don’t mean better service

Apartments are generally considered a more affordable investment than houses.

But the raft of fees and charges involved in maintaining an apartment building can make the ongoing costs relatively high.

In particular, strata management fees can be high and they can rise quickly – with not apparent explanation, and no apparent improvement in services.

At Beyond Strata, we use cutting edge technology that enables us to operate with maximum efficiency so that we can charge one low fee to our customers which covers all the strata management services you need.

What are strata fees?

When you buy a strata-titled apartment you are actually collectively buying the building.

The owners corporation, which is made up of owners, manages the building with the help of a strata manager, such as Beyond Strata.

The owners corporation decides bylaws for managing the property, maintenance plans, strata levies, special levies, and matters such as pet ownership.

The strata manager charges a fee for their service. But in some cases, management fees rise sharply – with little evidence of improved service for owners.

But at Beyond Strata, we operate with maximum efficiency so that we don’t have to charge you high fees – and there are no unwelcome hidden charges.

We charge a flat rate of $20 +GST per lot per month – with no hidden fees.

That rate includes disbursements, debt recovery, an online concierge, and real-time access to your owners corporation data via our portal – in fact, all the services you require from your strata manager.

Most management fees rise each year

The average management fee in Victoria in 2015 was $239, an increase of more than 11 per cent on the previous year.

But across the industry, strata managers are becoming less reliant on base contract management fees.

According to Macquarie’s 2016 Strata Management Benchmarking Results report, 52 per cent of average business income came from management fees in 2015, down from 60 per cent in 2012.

According to the report, the best-performing strata businesses are streamlining operations so they can provide better services to customers at a lower cost.

And this is what we believe at Beyond Strata: our efficient systems and cutting edge technology allow us to offer a low-cost, flat-rate service.

We put owners first. We use state-of-the-art technology to improve our services and create efficiencies, enabling us to charge lower prices to our customers.

Author: Beyond Strata

Beyond Strata is a professional owners corporation management firm that was founded on overarching principles of professionalism, honesty, integrity, openness and transparency. We strive to continually improve our people, culture, technology and processes improving our firm’s ability to provide the highest level of service possible to our clients.

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