The annual budget is one of the biggest responsibilities of an Owner’s Corporation. The budget must be extensive enough to account for even the smallest expense, be robust enough to deal with unexpected events, and lean enough to keep the Levies to a minimum. Balancing these requirements takes knowledge and skill, and we’re more than happy to help you with it.
The budget is set at the Annual General Meeting each year. It needs to account for all likely expenses, as well as keep a little surplus for unexpected costs or price rises. Depending on the size of the body corporate covers some or all of the following:
- Utilities for common property
- Insurances (Reinstatement, Public Liability, etc.)
- Property services (cleaning, maintenance, gardening, management fee, waste collection)
- Smoke detectors in common areas
- Upkeep of common facilities (pool, garden shed, picnic area, gymnasium, etc.)
- Management Fee
- Air conditioning units (if shared or provided to common areas)
- Fire service
- Remote control gates
- Security equipment
- BAS documentation
- Sinking/maintenance fund.
As you can see, the budget has to address a lot of areas, and it’s important to get it right.
Who is responsible?
The Owner’s Corporation set a budget by majority decision. They will look through previous year’s expense, line by line, and forecast the coming year’s costs accordingly. They will also need to account for planned expenses, such as renovations, extensions or updating facilities that are proposed for the coming year.
Can Mayfield help?
Of course! We can work with you to set a detailed budget that will cover the needs of your Owner’s Corporation, as well as provide you with access to the financials whenever you want to see them via our online portal. You’ll be able to track how the expenditure is matching the budget, as well as set up a sinking fund for any surplus.
Making sure your budget is as accurate as possible is one of the major benefits of having a good Owner’s Corporation manager, and with Mayfield, you can rest assured that your budget will give you the services you need, and spare you the expense of those you don’t.