Question: We are currently reviewing the remuneration of our caretaker service and wonder if there is any benchmark information for caretaker remuneration.
I am the chairperson of a strata scheme in Sydney, NSW. We are currently reviewing the remuneration of our caretaker service and would like to know if there is any benchmark information for caretaker remuneration. Our caretaker is contracted to our strata scheme by a building management company.
We have 156 units spread across seven buildings operating on an 8-hour day, 5 days per week, plus a Saturday morning 3-hour service. We pay a remuneration amount of $150k per annum. Is this the market rate?
Answer: It appears that your scheme is of sufficient scale to justify the proposed hours and associated cost.
Capable and competent building managers (caretakers) are in high demand. Engaging a company that fails to meet the expectations of the owners corporation ultimately results in poor value for money. Conversely, when a building manager performs well and acts in the best interests of the owners corporation, the investment is justified, particularly given that building managers are positioned to deliver cost savings by negotiating with contractors, sourcing multiple quotes, and ensuring value for expenditure.
While I haven’t personally inspected the site, based on your description, it appears to be of sufficient scale to justify the proposed hours. Provided the appointed building manager is experienced and actively adding value, the associated cost seems reasonable.
One important consideration is that the company should be directly contracted to the owners corporation and held accountable for ensuring the onsite building manager is meeting all key performance indicators (KPIs) and fulfilling their responsibilities effectively.
James Delany Alliance Management Services E: james@alliancemanagementservices.com.au P: 02 7201 0418