Home owners corporation fees: Victorians to get help to deal on payment plans, disputes as costs rise

Real estate experts have said that rising owners corporation fees are adding close to $1000 a year to a typical two-bedroom apartment’s annual costs. Picture: NCA NewsWire / David Crosling.Victorians struggling to pay owners corporation fees will be given advice on payment plans and dispute resolution as part of new mandatory fee notices.

It comes after real estate agents across Melbourne’s CBD and inner suburbs revealed significant numbers of apartment owners and landlords have been forced to sell in recent years as they grapple with rising owners corporation and other costs in recent years. The rising costs are also thought to have underpinned significant rental increases that have hit Melbourne’s CBD, with latest PropTrack data showing the typical unit in the city now costs $650 a week — compared to just $380 a week in 2022.RELATED: 43 Aussie suburbs where you can buy a home for under $400k‘Disgust’: Boomers unleash on crying Aussies (function(videojs) {var videoId = "6370846451112-70";var video = videojs(videoId);var globalId = "iris_6370846451112_70";video.



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Mr Staikos said the goal was to ensure owners got the advice and support they needed.“These new owners corporation fee notices will ensure they get helpful advice and support about their options if they’re struggling to pay their fees – not just a demand to pay up,” he said.The new notices will replace older forms to notify owners of overdue OC fees, with past formats no longer valid from this week.

Consumer Affairs minister Nick Staikos (right), announced a new requirement for operators of owners corporations this week.But, with the moves coming amid a wider state government push for more high-rise homes in Melbourne, Real Estate Institute of Victoria chief executive Kelly Ryan said more needed to be done around virtually “unregulated” owners corporations in Victoria.“It’s always important to find ways to support people, we don’t want to see people selling because the costs are too onerous,” Ms Ryan said.

“But that there’s a problem at the end with the owner is a sign that there’s a problem at the start with the owner’s corporation. If we have got to that point where owners are getting payment plans, you have to go back a number of steps.“If we are encouraging high-rise building in more locations, we need to get this right now.

There’s no point playing catch up.” REIV chief executive Kelly Ryan said more needed to be done around ‘unregulated’ owners corps in the state.Strata Community Association of Victoria general manager Susan Chandler said there were about 1.

27 million people living with an owners corporation around the state and welcomed the new phone channel announcement as a “practical step” in making them better understood.“For many residents, especially first-time apartment owners, navigating strata rules can be overwhelming,” Ms Chandler said. “A dedicated helpline provides a much-needed support bridge between communities and the government.

”She added that payment plan options would help reduce the risk of buildings being left short by unpaid strata fees, improving the “financial health” of many strata comunities — though they are still calling for the creation of a Victorian Strata Commissioner.Ray White Southbank principal Andrew Salvo said in recent years rising owners corporation fees adding close to $1000 a year to a typical two-bedroom apartment’s annual costs — as well as interest rates and additional landlord costs in the form of meeting new rental minimum standards — had combined to drive sales in the CBD’s apartment market. “And it has led to rents rising as there were investors leaving the market and there was a supply issue with migration increasing,” Mr Salvo said.

The agent said that in many cases the rising cost of owners corporation fees had been due to contracts being Consumer Price Index (CPI) linked, meaning a high-inflation environment had driven fees up.While payment plans for OC fees could give some owners an option, Mr Salvo said he didn’t think it would have much of an impact given the significance of other costs around rental protections and interest rates.Consumer Affairs Victoria owners corporation advice can be accessed on their website or by calling 1300 558 181.

Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.MORE: Mansion with ‘James Bond’ garage, nightclub whisky bar up for sale for $36m-$39mMt Martha: Cambio Al Mar mansion offers a sea-change opposite The Pillars swim spot‘Wouldn’t get this anywhere else’: Own a slice of Great Australian BightThe post Home owners corporation fees: Victorians to get help to deal on payment plans, disputes as costs rise appeared first on realestate.

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