Figuring out my Body Corporate using my unit of entitlement
Your Body Corporate is worked out by the unit of entitlement on your apartment.
Your unit of entitlement is basically the value of your apartment – for example the pent house or larger apartments in the complex will be different to a smaller, lower to the ground property.
This is worked out by how many units your apartment is worth and then divided by how many units make up the whole building.
And then the budget for the year is divided between how many units there are and then that gives your annual Body Corporate fee.
Good day, Andrew Murray here from the Apartment Specialists, and today we'll be talking about body corporate fees, unit entitlements and how it's all worked out.
If you are an apartment owner, then you pay a portion of the budget, which is called your body corporate fee. This was worked out by your unit entitlement, which is basically the value of your apartment. A penthouse has a higher unit entitlement than a studio on the bottom floor.
These unit entitlements are provided when the apartment is first built. They are actually set out in the title. Generally, on a pages further down, four or five, something like that. In there, there will be a schedule of unit entitlement of every single unit.
I have got this in front of me right here. As you can see this off the title here, a schedule of unit entitlements. In the entitlement, you will see the number of unit and the floor area. You also got your unit entitlement and the heights, and so on.
Here, this is all car parks, and you can see that this figure of the unit entitlement for each unit. Now there are 49 units in this complex. If you add all these together, including the carparks, that will come to 10,000. It is a share of 10,000 and you can see a total unit entitlement equals 10,000.
You then go, "Okay, how do we work out the body corporate fee for a particular unit?"
Obviously, your nominated real estate agent gives it to you or a body corporate gives it to you. This is how you can work it out. You go to, say, unit 4D. That is my particular unit. It has a unit entitlement of 265. 265 divided by 10,000 - which is the unit entitlement - gives you .0265%. That means my body corporate fee is 2% or 2.65% of the overall budget. It is my share. If we then go to the budget which is $205, 030.
Okay, let us work out the budget. I'll go, okay, so we will go 205,030 (sorry about my writing) times .0265, which is unit entitlement percentage of the overall budget. If I do that on my calculator now, on my phone as you do. Okay, $205,030, as you can see times .0265. I'm not too sure if you can see that equals my unit, my body corporate fee of $5,433.00. Which is spot on and that helps you figure out your unit entitlement or your body Corporate's fee from the overall budget.
Okay? So that was 5,433. I love this. My handwriting, it is shocking. $5,433 from my unit entitlement.
Anyway, I hope that helps. Bit of a different way of doing it. And yeah, cool. If you have any questions about unit entitlements, figuring it out. If you are struggling to do it, give me a ring or flick me an email to [email protected].