3.5.1 Variable fee arrangement | Owners Corporation Network

3.5.1 Variable fee arrangement

A variable price means a fixed annual base price with additional costs for all sorts of items. You will also be paying for the strata manager’s time to accurately record these activities so they can charge you for them.

Many strata managers base their retainer fee on the number of lots of a strata plan. So for example if you have around 200 lots you may expect the base retainers being quoted were around the $25,000-$35,000 mark plus GST. However there will be numerous additional costs on top of this:

  • insurance rebate, i.e. around 15%-20% of the insurance premium (see section 3.12 for more detail)
  • charge out time for the strata manager to attend strata committee or general meetings
  • disbursements for sending minutes and agendas at a typical rates of 50c per page for photo copying, several dollars for each lot per mailing, cost of phone calls, emails, BAS and tax lodgement fees, time, archiving, storage, letters etc.

Owners have no control over these costs, and which in total with the insurance rebate might total as much as the retainer.