Almost half of body corporate owners list rising costs as the number one concern at their scheme.
Tower’s Survey Monkey Data has found that 47 per cent of respondents listed rising costs as the primary concern at their scheme. Related worries over caretaker issues (36 per cent) and building defects (35 per cent) were also troubling owners.
The findings may not come as a surprise, but they indicative of the financial pressure owners are under and the impact cost concerns have on decision making in body corporates so complex.
Among the comments on this question owners, cited issues including a ‘lack of BC funds to maintain and upgrade the building in a timely fashion,’ and ‘on-site management is a waste of money’.
Tension across all areas of the housing market doesn’t seem likely to let up soon, and we can expect cost control in body corporates to be an increasingly dominant issue in future years.
Issues over caretakers and building defects are likely to be closely related to cost concerns.
Caretaker fees are typically the most significant annual expense at schemes where they are employed and many owners feel saddled with long-term contracts that provide little value. Negotiating an improvement in standards or an exit from the agreement usually involves more expense leading to more frustration.
Defects are another hot-button issue that leave many owners anxious. As with caretakers, any resolution of defect issues is likely to be lengthy and expensive.
Around a quarter of owners listed by-law issues as a major problem at their site. Comments on these matters tended to be very specific, with owners citing issues over smokers, bullies and social standards.
It’s surely a good thing that in three out of four buildings, people seem to be getting along quite nicely, but when by-law breaches do occur, they tend to lead to outsize management issues.
Ask Us Anything QLD Q&A – July 2021
In a recent Ask Us Anything QLD Q&A with Nikki Jovicic from LookUpStrata, William Marquand spoke in detail about the survey results.