Many strata owners have been affected by the Covid-19 crisis. Bodies Corporate should consider the impact of COVID-19 on the Body Corporate and what steps may be appropriate to control Body Corporate expense during this time.
At SSKB we have shared below top 4 best ways to control Body Corporate expenses during COVID-19:
- Delay major works to the scheme
Due to many lot owners losing their jobs or having reduced hours at work, they are unable to contribute their regular funds to the Body Corporate.
Delaying major works at your scheme ensures your Body Corporate still has funds in the case of an emergency.
It is important to consider if delaying the major work will have any negative impacts on your scheme. For example, if you are repairing a defect, it may not be wise to delay the rectification works. However, delaying repainting the building may be beneficial during this time.
- Consider paying big bills by installments
Some companies may allow larger bills to be paid by installments. This is somethings that is often considered by insurance companies.
Insurance companies may allow installment payments of the premium which is referred to as premium funding. This generally means the insurance premium is paid monthly instead of an annual lump sum payment. This is not offered by all insurers and should be discussed with your Community Manager.
- Can expenditure be delayed?
Maintenance is an important part of living in a strata community. If your building is poorly maintenance it can decrease the value of your investment and often lead to costly expenditure. However, in uncertain times Bodies Corporate and Owners Corporations should consider what expenditure can be delayed.
Wait another year to paint
Repainting the building is one of the easiest ways to control expenditure during these times. Deferring painting the building will not cause any structural concerns and can easily be deferred for 6-12 months.
Don’t replant the gardens this spring
Many Bodies Corporate/Owners Corporation wait until the springtime before replanting the gardens in the common areas of their building. This is another expense that can easily be postponed. However, it is important to remember that it is the Bodies Corporate and Owners Corporations responsibility to maintain the common property to a reasonable standard.
Don’t re-carpet the foyer until the end of the COVID-19 impact
Many common areas, particularly in hallways, have carpet. While it is not something that will regularly need to be replaced, if it is on the agenda in the next few months, it may be a good idea to postpone until your Body Corporate/Owners Corporation is in a better financial position.
- Can certain infrastructure be closed down, which will result in savings?
Many Bodies Corporate and Owners Corporations have temporarily closed their common area to comply with government restrictions.
This means if your scheme has pool facilities or other recreational equipment they will not currently be in use.
Expenses can be controlled by turning off heating in pool areas or turning off lighting in areas that have been completely locked off.
It is important to note that for pool facilities, it is still important to keep the filter running to ensure no blockages occur. However, you can decrease the amount of time your pump is running while the pool is not in use.
If your Body Corporate/Owners Corporation are concerned about expenses during COVID-19 contact your Community Manager for advice specific to your scheme.
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