In our Q&A video series Michael Vumbaca, General Manager at Jamesons Strata discusses rates and fees related to strata.
Every single strata management company structures their rates and fees a little bit differently. Typically speaking most will charge a base monthly fee that will cover a base monthly fee that will cover a set number of services that they provide. They will also charge something known as additional services or Schedule B fees which are paid for additional services that they provide throughout the year.
Some strata management companies will offer to bundle all fees throughout the course of the year, and I would strongly suggest that if you do go down that path that you would very closely look at all of the things that they are proposing to include in those fees and charges to make sure that you’re not stung with things that you weren’t aware of when you first signed on.
It’s also important to ask if they keep what’s known as the insurance commission for your insurance because some strata managers keep it and some of them give it back. This can amount to a saving of anywhere between $1000-$5000 for your scheme depending on how the strata management company does it.