Question: Due to Cyclone Alfred, our holiday letting resort will be closed for up to nine months. Are we required to continue to pay the monthly caretaker fees?
Due to flood damage from Ex-Tropical Cyclone Alfred, our holiday letting resort will be closed for up to nine months, and all 36 villas will be vacant. Our onsite contract caretakers have been relocated and have no letting or caretaking duties. Are we required to continue to pay the monthly caretaker fees in this situation?
Answer: It is possible that payment could be withheld, however that would depend on the terms of the specific agreement.
While it’s understandable to feel frustrated when paying caretaker fees and no work is done, a body corporate is generally required to continue paying the caretaker’s remuneration. It is important to note that payment would be in reference to the caretaking duties, not the letting duties.
It is possible that payment could be withheld, however, that would depend on the terms of the specific agreement. Non-payment can lead to legal repercussions, so it is important to obtain legal advice tailored to your specific agreement. An owner may have separate rights against the letting agent under the terms of appointment between that owner and the letting agent.
This post appears in the May 2025 edition of The QLD Strata Magazine.
Brendan Pitman
Grace Lawyers
E: brendan.pitman@gracelawyers.com.au
P: 07 5554 8560
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