Understanding Strata Fee Breakdowns
Understanding how Strata Management fees work, what types of fees we charge and what they mean for you is important to us. Sometimes fees can be confusing, so we make sure ours are transparent and straightforward with tailored options to suit you.
Types of fees at Lake Group Strata
There are three types of fees that we charge for Strata Management services:
- Base management fee – this is an annual amount charged to all customers for Strata Management services.
- Disbursements – incidental costs such as printing, postage and document storage incur disbursement fees. These can be calculated either on a user-pay or fixed-fee basis (see below for more information).
- Additional services – items outside the day-to-day services offered by your Strata Manager will incur an additional fee. These services could include major building works, building defects, appearing at tribunals and other extraneous services. These fees are charged on a one-off basis as and when they occur.
User-pay system versus fixed fee
The biggest point of confusion tends to be when it comes to disbursements. There are two fee options here:
- Fixed fee: a set annual fee which is payable monthly. This fee remains the same regardless of which services you use.
- User pay: a system whereby you only pay for what you use
At Lake Group Strata, we usually go with user-pay as our clients prefer it, but we happily offer fixed fee options if required.
We began offering user-pay fees many years ago in response to customers requesting a tailored fee system. Our specialised software allows us to provide a user-pay system that offers improved transparency and reports detailing individual disbursement costs.
Some clients still prefer fixed fees because they like to know exactly what they’ll be paying from the outset, and we are able to provide that option, too.
Are all Strata Management fees the same?
Fundamentally, all Strata Management companies provide the same services but may call their breakdown of fees different things, making it difficult for members of the public to compare apples with apples. Over a 12-month period, Strata Management fees will be similar across the board; you won’t find any extremely high or low fees because that’s what the market dictates.
So, it comes down to a service decision rather than a fee decision. If you want a reasonable fee and great service, then we’re the ones for you.
You get what you pay for
At Lake Group Strata, our quality of service makes the difference. We’ve been operating for more than 25 years and our growth has largely stemmed from word of mouth and referral; a testimony to the service we provide. We’re proud to have managed some of the same buildings for 20 years or more; our customer longevity and loyalty is indicative of the care we take with all our valued Strata Management clients.
Are you interested in Strata Management services in the Hunter?
Whether you’re new to property development or are looking for a new direction in Strata Management get in touch with Lake Group Strata.
We have more than 25 years’ experience providing Strata Management services in the Hunter Valley and greater Newcastle area. Contact your local office in Charlestown or East Maitland to find out more.