Via ABC Current Affairs.
‘A world of hidden charges’: Strata company insiders reveal exorbitant fees on homeowners.
One of the country’s most high-profile strata management firms has been using its wholly owned insurance arm to charge apartment owners insurance brokerage fees as high as three times the typical rate.
The company, Netstrata, has also been taking kickbacks from contractors and suppliers it hires using the strata funds of more than 1,000 buildings, and 35,000 apartments, across NSW.
To the outrage of owners and advocates, it appears the company’s conduct has been permissible under NSW law.
The revelations form part of a new ABC investigation into the national strata management industry that is launching on Thursday.
The investigation is calling on the Australian public — owners, industry insiders, regulators and others — to share their own strata stories with the ABC.
Netstrata is the naming rights sponsor of Jubilee Stadium, home of the St George Illawarra Dragons, and its managing director is Stephen Brell, the NSW president of the Strata Community Association (SCA).
The SCA has awarded Netstrata “strata management company of the year” for four of the past five consecutive years.
Netstrata is one of the country’s most high-profile strata management firms.(ABC News)
Now, an ABC Investigation has identified a decade-long history of self-dealing at the company, including through the extensive use of wholly owned insurance and maintenance companies.
In an interview with the ABC, Stephen Brell said some of his company’s practices, identified by the ABC, have “made me feel really awkward”.