Know how much you really pay your Body Corporate Manager

Gold Coast apartment owners, we're going to let you in on an 'open secret' in the Body Corporate management industry in the Gold Coast...

"Per lot" management fees are misleading Gold Coast apartment owners about what they really pay their body corporate manager. For example, if you go to your AGM and see a motion to approve the engagement of a body corporate manager who says they're going to charge your owners $120 per lot + GST per year, beware, you're not getting the full story.

The way that most other body corporate managers charge your Body Corporate is:

1. A base management fee (this is where they use the 'per lot' language);

2. Base disbursements (also usually represented as a 'per lot' fee);

3. Additional fees (usually based on an hourly rate that is set out in the manager's contract, but rarely do you see the invoices for these before the money is deducted from your Body Corporate's bank account);

4. Additional disbursements (set fees listed in the manager's contract);

5. Software costs (that the manager uses to manage your property, but passes onto your Body Corporate).

Most other body corporate managers also receive up to 20% commission on the base insurance premium that your Body Corporate pays for each year.

The only real way to work out what you paid your body corporate manager, is at the end of the financial year, when your Body Corporate's financial statements are finalised.

Even then you will likely need to add up multiple line items that relate to money paid to the body corporate manager.

For example, in a large scheme where the body corporate manager's fees are split across 4 different line items:

Or another scheme with 122 lots where the body corporate manager's fees are split across 7 different line items:

Here at The Nuu Co, we believe in full transparency for apartment owners. That's why we charge one fixed annual fee that is inclusive of all disbursements and software costs and gives an inclusive and responsive management service. We are proud to refuse all commissions on things that your Body Corporate buys.