Be Aware Of Low Body Corporate Fees

As the property market booms with many owners and prospective purchasers residing in, or looking to buy strata titled properties, the biggest question and point of discussion is. “how much are the body corporate fees?” 

As more and more Victorians continue to take up apartment or townhouse living, it is becoming more prevalent that body corporate fees are something that one must consider. 

My response is to always do your due diligence on body corporates and their fees, as “high” body corporate fees could mean a well maintained building and “low” body corporate fees could mean that there aren't enough funds to cover building maintenance plans. 

A compelling article ‘Low body corporate fees red flag’ written by Darren Cartwright (Cartwright 2021), will help answer any questions or thoughts you may have around body corporate fees.

Article: Low body corporate fees red flag

Apartment buyers have been warned that any property being sold as having low body corporate fees should immediately raise a “red flag”, says the former body corporate commissioner. 

Chris Irons spent more than five years as the Body Corporate and Community Management Commissioner before joining law firm Hynes Legal as a strata advisor in 2020. 

He said one of the most sensitive issues during his tenure for new and exciting owners was body corporate fees as well as maintenance programs, animal by-laws and committees. 

Prospective owners should always be wary of any abode listed as having low body corporate fees as they can literally change overnight, he said. 

“I think it should raise red flags straightway, as body corporate fees can change in an instant and go up dramatically,” he said. 

“The best example of that is if there are serious works that are needed, such as a new lift, a cooling tower or the swimming pool needs to be fixed. They are never cheap, especially if they are not foreseen and not budgeted for.” 

He urged anyone who buys a strata title property to make themselves familiar with all aspects of ownership. 

That includes their obligations to a body corporate while encouraging any unit owners to be proactive and join the committee when the opportunity arises. 

He said too many people are lackadaisical about, or believe it’s too much work, joining a body corporate committee. 

“The only way forward, whether you like it or not, is to be part of the body corporate and being involved is not as hard as people may think it is.” he said. 

“It’s the surest way possible to ensure everything you have invested is protected.”