What Are Strata Fees?
Strata Fees or Levies, are fees that each lot owner has to contribute towards for the running and maintaining of their Body Corporate.
Some Strata fees are collected quarterly and some are collected half yearly. The regularity of the when the levies are issued may vary from each Strata Title and will be determined by the Body Corporate committee.
What do Strata Fees cover?
There are three different types of Strata Fees;
1. Administrative Fund Levies.
2. Sinking Fund Levies.
3. Special Levies.
Each of these levies cover different things.
The Administrative Fund is for the day to day or regular expenses. Some examples of these could be:
• Cleaning in the common areas like stairwells and foyers.
• Gardening in the gardens on common property.
• Utility bills like those from electrical companies and for water usage.
• Body Corporate Insurance.
• Fire equipment servicing.
• Elevator servicing and maintenance.
• General repairs and maintenance that relates to the common property.
• Strata Manager fees (if managed by a Body Corporate Manager).
The Sinking Fund is for items that are of large capital expense. This could be;
• Repainting of the building.
• Replacement of the building’s roof.
A special levy will be struck if there is not enough funds in both the Administrative Fund and the Sinking Fund to cover the expenditure needed.
What does Body Corporate Insurance cover?
When you own a Lot in a Body Corporate your Body Corporate is required by law to have Strata Insurance. Strata Insurance covers the main building only. This includes fixtures and fittings within a unit but does not include common contents. It is recommended that lot owners obtain their own contents and public liability insurance for their unit.
Body Corporate Insurance also covers the common property. If an incident should occur on common property, a claim would be placed through the Body Corporate’s Strata Insurance.
If you would like more information regarding Body Corporate Insurance please contact our office.
