What is a body corporate? This is created when an Australian property investor buys into a building or complex that has several properties. The unit plan is registered at the Land Titles Office and all owners will be members of the body corporate, which is responsible for managing the common areas such as swimming pools, gyms, gardens, elevators, and parking spaces of the development or complex on behalf of all owners. In other words, body corporate maintains the property.
The role of the body corporate is to ensure that the property is maintained properly
They render services, so obviously body corporate will charge fees. These are the mandatory charges that each unit owner pays for keeping the common areas in good condition.
In this article, take a look at the different body corporate fees:
- In general, the body corporate charges an annual levy. This is used to cover the day-to-day expenses including maintenance, insurance premiums, administration, as well as utility costs for common services including lighting outdoors.
- There can also be one-off charges for certain items that are not covered by the annual fee. One example of this is when the lift needs replacement.
- The body corporate will ask you to pay for the repair and/or maintenance when something is done only on your own unit.
- How much are body corporate fees? The cost varies. It depends not only in the size of the unit or if it comes with a car park or not, but also on the type of building. For instance, expect higher fees if you live in a high-end or mid-sized building.
On the other hand, smaller buildings have lower fees because these are less expensive to manage and maintain. When it comes to a larger building, there are more owners who contribute to the total costs. However, running it becomes more expensive and complicated since withe the economies of scale, the cost per unit owner is reduced considering the large number of owners who share the cost.
The facilities drive body corporate fees. Of course, if the building offers a wide range of facilities including a swimming pool, fitness center, and large gardens then the fees will increase.
Got other ideas when it comes to body corporate fees? Share your investment property advice in the comments section.