The budget and levies of a strata apartment building are the single most crucial part of strata. Because nothing else is possible or matters if you aren’t about to pay for it.
Striking the right balance between levies raised and money in the bank is always difficult. But to help you get your owners corporation in a manageable position with your levies here are a few simple rules:
- Always increase your levies by 2.5-3.5% each year, even if you don’t need too.
- Never hold more than 10% surplus in the admin fund (if you have more move it to the capital fund)
- Every year spend money on an improvement that everyone can see.
- Follow you’re capital fund forecast
- If you need to increase levies, go for the significant increase once, people will forget, but if you drag it out they will be continuously reminded
- Have one project every year that is cost saving/cost review
- Cost Saving & Cost Review Project Options
Cost Saving & Cost Review Project Options
Here is a selection of possible topics and projects that your apartment building can undergo to help manage cost:
- Insurance broker/insurer – tender your broker and make sure you have the best person working for you
- Energy usage Contracts (cleaned, strata, building management, lifts) – pick one each year and work through all your major contracts
- Consent for email notification to owners – stop and ask every owner to say yes to receiving notice and correspondence via email, this will reduce your postange and printing costs
Happy budgeting.
