If you own a strata apartment you will be familiar with strata levies, but do you understand what they get spent on and why?
Strata levies are the invoices you get every quarter, six monthly, or 12-monthly from your owners corporation.
Strata levies are unavoidable, and they are not an optional expense, if you are the owner of the apartment. Levies are also unique because they are attached to the property and not the individual, therefore if a property is sold and levies are owed the new owner of the apartment is liable for the levies and in the worst case could be sent to debt recovery which could conclude in bankruptcy.
So now that you understand how vital paying your levies are and how important it is to only purchase an apartment with all of his paid.
what levies are spent on
Levies are raised and issues to Owners following the majority of people at the annual general meeting deciding that levies are to be raised and how much for.
Levies are spent on:-
- Insurance
- Electricity
- Bank & admin fees
- Repairs minor breaks
- Cleaning
- Some is saved for large expenses later
What do you do if you don’t agree with the levy amount?
If you didn’t go to the Annual General Meeting and vote NO to the budget and levies motion, you will have a weak argument to change them because this was your right and opportunity, but you can still try the below.
You can only change levies at a general meeting, so you need to get a general meeting called, you can do this by asking the committee or have 25% of the building agree in writing to a meeting and the motions.
When you get to that meeting if the majority of people approve the new levies, the levy amounts can be changed.
Something to remember
You can only spend money you have, so if you drop your levy amount don’t expect your building to be in pristine condition and major repairs to happen quickly.
