How Are Strata Fees Calculated?


There are a number of excellent resources available on the internet, particularly those published by the Ministry of Housing, which answer some fairly basic questions about strata corporations.  A great example is the article we’d like to suggest for review below.  It explains one of the most fundamental concepts of the Strata Property Act – how strata fees are calculated.  Owners often ask us how their fees are arrived at, and whether or not there is something arbitrary at play.  This article explains the process for calculating Unit Entitlement (UE) which is the basic building block used to calculate all funds raised by strata corporations.

Sometimes changes to UE are contemplated (i.e. when an owner amalgamates units, purchases common property to absorb into their strata lot, etc.). These situations are fairly rare (and costly), but are also explained in some detail.

Understanding how UE is calculated, and the non-arbitrary nature of the calculations, can often set owners minds at ease.  There is no randomness, and the Act essentially requires that all owners pay their fair share of common expenses.