Disbursements: What they cover and why they matter to your strata community
Helping strata communities thrive involves more than just managing meetings and minutes; it also means keeping the practical, everyday aspects running smoothly. This guide explains what disbursements are and why they are a necessary part of managing your Owners Corporation.
Disbursements are not your management fee
Your strata management fee covers the professional work of your strata manager, including their time, expertise, compliance advice, and financial reporting. Disbursements, on the other hand, are a separate charge for the essential operational costs required to administer your strata scheme. These are out-of-pocket expenses that we pay on your behalf throughout the year.
What your disbursement fee may include
Your annual fee also includes a line item for disbursements to cover the costs of overheads that will be incurred by your Owners Corporation throughout the year. This is charged as a fixed annual fee and may be reviewed each year to reflect any cost increases. The disbursement fee generally includes:
- Photocopying, printing, collating and stapling documents: This covers the physical costs of producing important documents such as AGM packs and meeting minutes that are essential for the administration of your strata scheme.
- Distributing Levy Notices: This specific charge covers the process of sending out levy notices to all owners in the Owners Corporation.
- Postage charges: This fee is for mailing printed materials to owners who prefer paper-based communication, ensuring all residents receive information in their preferred format.
- Supply and storage of archive records: This includes the costs associated with the physical and secure storage of your Owners Corporation’s records, so nothing is ever lost or misplaced.
- Telephone charges: These charges cover the day-to-day communication with owners, committee members, and contractors as part of managing your building.
- Email charges: This covers the costs of electronic communication with owners, committee members, and other parties involved in the administration of your strata scheme.
- Computer/internet charges: These are the technology costs that support the administration tools and online systems used to run your scheme smoothly.
- Maintenance and charges associated with running the website/owners portal: This covers the expenses for the technology that provides you with access to your owners portal, data security, and other online administration tools.
- Online data storage: This covers the cost of securely storing your Owners Corporation’s digital records, ensuring data integrity and accessibility.
Why disbursements provide confidence and value
The disbursement fee is a transparent, flat amount with no hidden extras. It ensures the core administration of your Owners Corporation continues without interruption. This fee is reviewed annually and only increased when genuinely necessary.
If you have any further questions about how disbursements are used for your Owners Corporation, please reach out to your local MBCM branch. We believe in keeping things fair and simple so your community can continue to thrive.