How to Reduce Strata Fees

If you’re a member of a strata community, you know that strata fees can add up quickly. These fees/levies cover the costs of maintaining and managing common areas. But they can be a significant expense for residents, and they can grow if not reviewed. We have identified three simple tips on how to reduce your strata fees, without sacrificing the quality of your community.

Change from a typical strata manager to a supported self management option 

One way to reduce your strata fees is to change from a typical strata manager to a supported self-management option. A typical strata manager will charge a variety of fees for tasks and jobs you don’t even realise you are paying for, such as sending emails, requesting quotes, approving quotes, sending reminder notices, and answering your questions. With a supported self-management option, you’ll have more control over your community, and the software will do the work for you, letting you lower your strata fees due to the savings you have. 

Review routine costs like cleaning, garden care, or pest control 

Another way to reduce your strata fees is to review the routine costs of maintaining your common property, including cleaning, garden care, and pest control. There are two elements to check:-

• Is the scope of work correct? Are we doing too much, too little, or just the right amount for each visit
• How often should they come?
• Are we paying the correct amount?

By reviewing these costs, you may be able to find a way to cut back without compromising the quality of your building and common property. 

Negotiate insurance costs

Insurance is another area where you could reduce your strata fees. By shopping around for insurers or negotiating a new fee with your current provider or broker. With insurance being 10-40% of a strata budget a saving quickly reduces your strata fees/levies. 

With these tips, you can reduce your strata fees while maintaining the common property.