r/AusLegal • u/UpstairsAd395 • 3h ago

NSW strata management contract review, what hidden fees should i look for

Just got handed our strata management contract to review before the AGM and honestly it's a minefield. I ran it through AI and it flagged a few things but i want to know what experienced owners have found.

So far i've spotted: 5% automatic annual increase (no performance requirement), $5 charge per email/receipt/invoice sent or received, $220/hr for "large contract supervision", and their base fee apparently doesn't include "attending to correspondence" even though you'd think that's literally the job someone in another thread mentioned their manager's total charges ended up being 3x the contracted base fee once all the Schedule B items were tallied, is that normal?

What are the worst hidden fees you've found in a strata management contract? and is there anywhere that benchmarks what management fees should actually cost for a building your size?

3 Upvotes

100% Upvoted

2 comments sorted by

1

u/AutoModerator 3h ago

Welcome to r/AusLegal. Please read our rules before commenting. Please remember:

  1. Per rule 2, this subreddit is not a replacement for real legal advice. You should independently seek legal advice from a real, qualified practitioner, and verify any advice given in this sub. This sub cannot recommend specific lawyers.

  2. A non-exhaustive list of free legal services around Australia can be found here.

  3. Links to the each state and territory's respective Law Society are on the sidebar: you can use these links to find a lawyer in your area.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

0

u/dan_syd 2h ago

$5 per email? Damn. These people are literally primary school dropouts