High-performing stratas - Yes, there are some
Published: Sunday | July 5, 2009
Oaklands Apartments in St Andrew. - Ian Allen/Staff Photographer
Not all strata complexes are victims of non-compliant, disinterested owners, or fiscally irresponsible managers.
Not only is the Oaklands Apartments in St Andrew one of the largest complexes, with 384 apartments on a high-rise structure, plus another 128 units, it is acknowledged as one of the best run of the 2,045 strata corporations nationwide.
A member of the proprietors' board who requested anonymity for this story, said there was a 90 per cent compliance rate on fees.
But the management committee is able to produce that outcome only because of a fairly strict adherence to certain rules, like cutting off utility supplies to apartments whose owners fail to meet their obligations.
water can be locked off
"We have a policy that if the maintenance, which is due on the first of the month, is not paid, we give you five days, after which water can be locked off," said the committee member.
"Even those who have water meters can get a lock-off. We may not enforce if the owner has a good record of payment."
Sunday Business was unable to get a count of just how many exemplary schemes are out there. But the National Housing Trust (NHT) proferred the names of two - Victoria Courts and Holruth Court.
The trust says those are the only two of the 15 strata complexes under its wing that can be called successful.
Victoria Courts is physically well-kept and has proper accounts, activities for children as well as adults, and a managed community centre.
Holruth, too, has a working system for managing its internal affairs, the grounds are well kept, and a full-time manager is employed.
At Oaklands, owners who refuse to pay maintenance fees - some over many years - have been taken to court, including owners who live overseas with apartments locked up.
fees are insufficient
Still, like other stratas where fees are hard to collect, Oaklands says it faces a similar problem - the fees charged are generally insufficient to cover the real cost of upkeep.
"You have to shuffle some months to pay the bills," said the strata representative, especially the insurance, which - costing around $7 million annually - is financed and paid on a monthly basis.
The apartment complex has not been painted since it was constructed, except for small internal areas, and is due for a paint job for which estimates range between $15 million and $20 million.
In recent years, however, façade changes to the roof were completed at a cost of $3 million, with some blocks costing more than others to complete.
Oaklands has a stratified fee structure, which varies yearly across the different blocks of apartments, depending on what needs to be done in terms of upkeep.
maintenance charges
For studios which have their own water meters, the maintenance charges range between $5,700 and $6,000 monthly.
Unmetered apartments are charged between $7,300 and $8,700.
Two-bedrooms units with a meter pay approximately $9,000 monthly. If there is no meter, the cost ranges between $10,500 and $11,000.
One-bedroom units with a meter are charged $6,500, and those without pay between $8,900 and $10,000.
The strata development does not have a swimming pool, and the tennis court supports itself through user fees.
It is rented for $450 without lights and $700 with lights.
avia.collinder@gleanerjm.com