It’s stressful to manage common property and audit accounts with different owners. Liaising with other tenants can be nerve-wracking as well as time-consuming.
Strata management assists property owners with maintenance and repairs, upgrades, manage financial accounts, and conduct meeting with members. Here’s what you need to know.
Know about common property
Common property is the area, facility, or structural spaces jointly owned by the tenants, owners, and the owners’ corporation. Examples of common properties are:
- Recreational facilities
- In-ground services
- And more!
To pay for repairs and upgrades, landowners raise funds from individual owners through strata fees or levies. This is where you need strata plan and management to designate boundaries and costs from joint owners.
What are strata management and strata fees?
Strata management is still property management concerned primarily with the fees and payments needed to manage common property. You get a ‘strata title’ for the ownership over your apartment or lot as well as joint ownership over common properties managed by the real-time owners.
When you have a strata unit, you get to pay strata fees. These are joint owners’ contributions used for cleaning, repairing, plumbing, gardening, or improving amenities.
Types of strata fees
Strata fees are determined by the owners every year during their annual or year-end meeting. There are three kinds of strata fees:
Administrative fund levies. This consists of everyday upkeep such as administrative costs, utility bills, basic office or structure maintenance.
Sinking fund levies. These fees are meant for bigger renovations and repairs like structural works.
Special levies. Funds used for unexpected expenses.
How much are strata fees?
There are no specific fee rates in every state, but, owners usually consider 0.8% to 1.2 % of the property’s value. Bigger units get 0.3% to 0.7% and depend on whether the building has amenities or none at all.
Factors influencing strata fees:
· Number of common areas and their space
· Location and how much is it used per day
· Age and condition of the common property
Benefits of property and strata management services
Common property management is daunting and time-consuming. What you need is a straight-up strata management services to break down running expenses, repairs, and maintenance.
· Safe living conditions
· Organized rent collection and financial management
· Easy finances for repairs and maintenance
· Complaint with state’s legislation
· Better communication and policy observance between owners
· Better profitability to the owners’ corporation or landlord
· Transparency on tenants’ costs leads to trust and credibility
If you’re a landlord, choosing a strata management is a wise decision to ensure that your assets are taken care so you can reap profitability in the long run.
Paying strata fees with cryptocurrency?
Cryptocurrencies are widely used to pay fees, especially with several properties. Australia widely accepts this transaction and is increasingly looking to diversify cryptocurrency with real estate payment structures.
Why pay with cryptocurrencies?
· Diversification of real estate assets for passive income
· Cheaper costs while reaping profitability in the long run
· Easy negotiation with the price before it turns to fiat moneyThere’s a significant shift in real estate as more people turn to cryptocurrencies for property payments. Developers are more tuned to accept digital money as a means of varying their tenants’ easy payment options.
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