The NSW Strata Magazine | February 2024

Page 1

The NSW

STRATA MAGAZINE FEBRUARY 2024

Can a committee demand a fixed price quote? Page 6 | Sedgwick

Does the strata manager need a signed letter of appointment for an insurance renewal?

Page 16 | Strata Insurance Solutions

How can owners be sure the committee provides a true report for the insurance renewal Page 24 | GQS


About Us LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013. As well as publishing legislative articles to keep their audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month. Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at the LookUpStrata Directory, flip to the end of this magazine.

Meet the team

Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013. With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians. Nikki shares her time between three companies, including Tower Body Corporate, a body corporate company in SEQ. Nikki is also known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.

Nikki Jovicic Owner / Director

Liza came on board in early 2020 to bring structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year. Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.

Liza Jovicic Sales and Content Manager

Learn more here → https://www.lookupstrata.com.au/about-us/ You can contact us here → administration@lookupstrata.com.au

Disclaimer: Strata legislation is updated regularly. The information in this magazine is based on the legislation at the time of publishing.

2 www.lookupstrata.com.au 2 www.lookupstrata.com.au 2 www.lookupstrata.com.au


Contents 4 How do we pay for the other party’s legal fees? Matthew Jenkins, Bannermans Lawyers

6

an a committee demand a fixed price C quote? Edwina Feilen, Sedgwick

8

Why make it easy to remove committee members? Allison Benson, Kerin Benson Lawyers

10 Are the small number of owners with defects in their lots able to vote on repairing the defects, or is this a conflict? Tim Sara, Strata Choice

12 Can we vary the strata management agency agreement? Matthew Jenkins, Bannermans Lawyers

14 Neighbour is requesting retrospective approval for renovations that affect the peaceful enjoyment of our lot Leanne Habib, Premium Strata

16 Does the strata manager need a signed letter of appointment for an insurance renewal?

18 Who can live in an over 55s strata complex? Matthew Jenkins, Bannermans Lawyers

20 Quality is more than skin deep Tim Kurniadi, Paynter Dixon

22 How does the committee deal with owner requests? Rod Smith, The Strata Collective

24 How can owners be sure the committee provides a true report for the insurance renewal? Zac Gleeson, GQS

26 Is the strata manager required to ensure they deduct invoices from the correct fund? Andrew Terrell, Bright & Duggan

28 Why can’t I store my bins in the allocated bin area? Leanne Habib, Premium Strata

32 Insights from the 2023 Strata Defects Survey Strata Community Association NSW

34 The NSW LookUpStrata Directory

Tyrone Shandiman, Strata Insurance Solutions

Thanks to our sponsors


How do we pay for the other party’s legal fees? Our strata plan recently lost a legal case and now owes our former strata manager $110k in legal fees. At the recent AGM, it was decided this would be paid from the capital works fund. Should unexpected expenses like this be paid by raising a special levy?

The payment of another party’s legal fees that are not associated with expenses of a capital nature should be paid from the administrative fund and not the capital works fund.

The payment of another party’s legal fees that are not associated with expenses of a capital nature should be paid from the administrative fund and not the capital works fund.

If the legal fees were not included in the budget and the owners corporation does not have the required funds in the administrative fund, a special levy could be raised. Alternatively, if there is surplus funds in the capital works fund, it could be paid from that fund and the owner corporation should, within 3 months, determine by general meeting resolution whether the money or any part of it should be reimbursed to the fund from which it was paid.

In regards to the owner corporation’s legal fees, section 104(2) of the Strata Schemes Management Act 2015 applies, and the owners corporation must raise a special levy to pay its legal costs of any Tribunal proceedings. However, section 104 of the Strata Schemes Management Act 2015 only applies to the owners corporation’s costs of Tribunal proceedings. It does not apply to the payment of another party’s legal costs. 4 www.lookupstrata.com.au

If the legal fees were not included in the budget and the owners corporation has the required surplus funds in the administrative fund, they can pay from the administrative fund, which, if required can then be replenished from the usual periodic levies.

Matthew Jenkins | Bannermans Lawyers enquiries@bannermans.com.au READ MORE HERE


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Can a committee demand a fixed price quote?

Q

Can a committee demand a fixed price quote to repair concrete cancer on common property?

We require the repair of concrete cancer on common property. I have obtained a quote for $9k for 50 litres of spalling repair and $85 per litre for any extra litres required. The builder states they won’t know the exact final costs or how many litres will be required until they start digging. Is this reasonable, or should I demand a fixed price quote?

A

Accepting a quote with allowances and conditions such as this example is not unreasonable or uncommon, however, several factors must be considered.

Regarding remediation work where the extent cannot be reasonably determined, a fixed price can be difficult to obtain. Demanding a fixed cost from a contractor will likely result in an inflated price to cover the worst-case scenario or declining to quote. Both of these outcomes generally do not favor owners. When you obtain a fixed cost, owners will likely be paying for work/allowances that are not used, benefiting the contractor. However, contractors will often refuse to provide a fixed cost if the extent of work is too difficult to quantify and the risk is too high. Accepting a quote with allowances and conditions such as this example is not unreasonable or uncommon, however, it is very important that several factors are considered: 1. I n the first place, is the allowance the contractor has included a reasonable allowance? 2. H as the contractor clearly stipulated a rate that will apply for anything that exceeds the allowance? 3. C an owners easily check and validate the original allowance work and any additional work when a claim is made? 6 www.lookupstrata.com.au


In this example, is it difficult to understand to what extent 50 ltrs covers compared to what is visible on site? This could be a generous allowance or could be already lean where additional work is inevitable. Without an indication of coverage, for example, xx m2, or “all of south elevation”, it is difficult for owners to know whether this is value.

So expectations are clear, I would also recommend asking what extent the initial allowance is expected to cover. This clarity always results in a win/win. The contractor gets paid for what they have reasonably done, and the owners have not overpaid. Edwina Feilen | Sedgwick edwina.feilen@au.sedgwick.com

If this is unknown and a claim is made for an additional 50 ltrs, how will the owners check/ validate:

READ MORE HERE

a. if the initial 50 ltr allowance was used, and b. what litres is reasonable for the additional claim? I would recommend the owners discuss this further with the contractor to ensure a clear and measurable method is established and agreed in writing before commencement. This needs to be evidence-based, not just taking the contractor’s word that they used an extra 50 ltrs.

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Why make it easy to remove committee members?

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Q

Why has the legislation made it easy to remove a committee member? Who does this help?

A

It helps in schemes that are highly political.

It helps in schemes that are highly political. You could get a voting block of 26 people or 26 unit entitlements, and they’d block any special resolution. You get active strata committee members getting proxies and preventing themselves from being thrown off the committee. The new legislation makes it less of a restriction to be able to remove people. But it still has to be the majority of people do not want that committee member on the committee. We’re not getting rid of a majority rights, we just getting rid of special majority, if you like, or a special resolution. It would help remove lazy committee members or those who are not assisting the owners corporation. Allison Benson | Kerin Benson Lawyers allison@kerinbensonlawyers.com.au READ MORE HERE

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Are the small number of owners with defects in their lots able to vote on repairing the defects, or is this a conflict?

If some units have defects and we all meet about repairing the defects, can these owners participate in the vote, or should they abstain? In our 15-year-old, 30-lot strata scheme, four units require rectification works due to building defects. We called a general meeting to approve a special levy to cover the cost of the work. Can owners of the four units with defects vote at the general meeting, or should they abstain from the vote due to their vested interest?

All owners have a vested interest in ensuring that the owners corporation meets their requirements to repair and maintain its common property. The Strata Schemes Management Act 2015 (NSW) (‘the Act’) contains no provisions that exclude owners of lots from voting on motions that relate to the owners corporation meeting its fundamental and statutory requirement to repair and maintain its common property (in accordance with section 106 of the Act). All owners have a vested interest in ensuring that the owners corporation meets such requirements and would be required to contribute toward the special levy in question. Tim Sara | Strata Choice tsara@stratachoice.com.au READ MORE HERE

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Can we vary the strata management agency agreement? What is the process for varying a strata management agency agreement? Is there anything within the agreement that cannot be varied at the request of the owners corporation? A strata management agency agreement can be amended like any agreement. Yes. Like any other agreement, a strata management agency agreement can be amended. I would suggest that you seek advice so that you can ensure that the amendment is valid and complies with the Strata Schemes Management Act 2015. If your proposed amendment is to an existing agreement, the amendment will need to be in writing, signed by the strata manager and approved by resolution of the owners corporation at a general meeting.

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If the proposed amendment is to a proposed strata management agency agreement, i.e. the owners corporation has not yet entered into the agreement, depending on which standard form agency agreement is being proposed, amendments may have to be done by way of addendum due to copyright issues. Please note that strata managing agents will usually price their agency on the risk involved in managing a particular strata scheme. If you are removing or varying provisions which will increase the risk involved in managing the scheme or removing the strata manager’s protections, the fees will likely increase to reflect this. Matthew Jenkins | Bannermans Lawyers enquiries@bannermans.com.au READ MORE HERE


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Neighbour is requesting retrospective approval for renovations that affect the peaceful enjoyment of our lot

Our neighbour’s renovations were approved. He proceeded to carry out work not included in his application or by-law. It affects our lot as the plumbing is in our bedroom wall. He’s seeking retrospective approval, but what happens now? Our neighbour submitted an application for renovations of their lot. Their application was approved. Their ensuite wall is on the other side of our main bathroom. We’ve heard them jackhammering the wall, and they’ve installed new plumbing pipes and connections. None of this was included in their application or renovation by-law. The additional unapproved work was discovered when a smoke detector test was carried out. The owner has requested retrospective approval for the renovations. As the wall adjoins our bedroom, we are concerned about the noise of the pipes. We are the only lot affected, so I have little support from the committee. The committee has organised a meeting to discuss the next steps. What happens now?

You should ask for the pipes to be re-located at your next meeting, failing which you can take the matter further and apply for mediation. Of course, your neighbour can seek to have the unauthorised pipes retrospectively approved but he will need a special resolution to amend his existing by-law. Until the pipes are approved, they are in breach of the bylaw. You also have the right to object to the pipes on the basis that they appear to cause you nuisance. The strata legislation states that an owner cannot permit that lot to be used in a manner or for a purpose that causes a nuisance to the occupier of another lot. Further, the legislation states that a lot or common property cannot be used in such a way as to interfere unreasonably with the use or enjoyment of another lot. It seems that the pipes will affect your enjoyment of your bedroom due to for example, the sound of toilet flushing in close proximity to your bedroom. You should ask for the pipes to be re-located at your next meeting, failing which you can take the matter further and apply for mediation and then make an application to the NSW Civil & Administrative Tribunal. Leanne Habib | Premium Strata info@premiumstrata.com.au READ MORE HERE

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15


Does the strata manager need a signed letter of appointment for an insurance renewal?

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Q

Should strata managers have a letter of appointment signed by a committee member before a broker is appointed.

A

It is reasonable for the strata manager to seek the committee’s consent before appointing a new broker on an insurance policy.

In New South Wales, a strata manager is responsible for managing the affairs of a strata scheme. However, the specific authority delegated to a strata manager regarding the common seal may vary depending on the terms of their engagement and the instructions provided by the owners corporation.


The common seal is a legal instrument used to execute official documents on behalf of the owners corporation. While strata managers often handle administrative tasks related to the common seal, such as keeping it safe and using it when required, the extent of their authority with regard to the common seal is typically outlined in the agency agreement or contract they have with the owners corporation. These agreements specify the scope of their responsibilities and the limits of their delegated authority. Regardless of whether the strata manager has authority under their agreement to use the seal, it is reasonable to seek the committees’ consent before appointing a new broker on an insurance policy.

Strata Insurers do not have a requirement that the Letter of Appointment is signed by a committee member. They accept Letters of Appointment signed by strata managers. Before appointing any broker, the committee should understand the remuneration differences and what impact that will have on the premium. If the strata manager is appointing a broker and being paid a share of the insurance broker’s remuneration, it would be a reasonable expectation this information is highlighted. Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE

Following on from the webinar done by Michael Kleinschmidt from Bugden Allen Graham Lawyers ‘NAT: Strata Managers as Fiduciaries, or ‘Wow, I didn’t know that…’’, if the strata manager is receiving a financial gain, there should definitely be informed consent.

17


Who can live in an over 55s strata complex?

I am an owner occupier in a NSW over 55s strata complex. A lot owner recently passed away. Some of the family have moved in and they are all under 55 years old. Does this breach the building regulations? It will depend on how the restriction is recorded. It will depend on how the restriction is recorded. The restriction on who is permitted to reside in the lot will either be a development consent condition or could be registered as a restriction as to user or positive covenant (often this is a requirement of the DA). There may also be a by-law registered to reinforce the development consent condition or restriction which could allow the owners corporation to enforce the restriction. If there is no by-law, Council would be the correct entity to enforce the development consent condition or the restriction as to user. However, you should be aware that Council could issue the owner corporation with a breach of the development consent condition or restriction, even though it is not the owner corporation breaching the condition. I have seen Council do this in the past. 18 www.lookupstrata.com.au

Section 234 of the Strata Schemes Management Act 2015 provides the following:

234 Order enforcing positive covenant 1. T he Tribunal may, on application by an authority having the benefit of a positive covenant, order an owners corporation for or owner of a lot in a strata scheme to comply with an obligation imposed by the covenant and relating to the maintenance, use, repair, or insurance of a building or lot in the scheme, if the Tribunal considers that the owners corporation or owner has failed to comply with the obligation. 2. I f the authority has been refused an injunction under section 88H of the Conveyancing Act 1919, the Tribunal must not make an order to the same effect as the injunction refused. Matthew Jenkins | Bannermans Lawyers enquiries@bannermans.com.au READ MORE HERE


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Quality is more than skin deep Remedial builders, defects and icebergs alike... what lies beneath the surface matters most. The regulatory scrutiny of remedial building work – indeed all construction in NSW – has muscled up. On 1 December 2023, the state officially opened its first one-stopshop for building regulation. Led by Commissioner David Chandler, Building Commission NSW assumes ownership of all regulation, licensing and enforcement of quality and standards. Teams from NSW Fair Trading and the Commissioner’s Office have formed the new body with an injection of $24 million in state funding. Strata schemes are encouraged to weigh up all considerations when choosing a remedial builder. With an engineering background and 15 years’ construction experience, Tim Kurniadi heads up the Remedial and Insurance divisions of Paynter Dixon.

Powerful partnering.

Cost escalation traps “When owners corporations are fixated on the lowest-cost remedial services, they often fall into the same trap as the original developers and builders,” says the remedial expert. “There are no quick shortcuts to quality and compliance.” The cycle of inferior repair work can lead to persistent building issues or escalate in ways which prove more costly in the long run. According to the NSW Strata and Property Services Commissioner, John Minns, there is a growing consensus for better educating the sector “along this journey of what’s involved when costs escalate.” “Particularly special levies that are being imposed at the moment around things like emerging or latent defects,” said Mr Minns in a recent podcast1.

“Those type of things are a problem, because they’re unbudgeted in many cases, but we can help people through that process and the people in genuine need, who are doing it tough and are too embarrassed to talk and being judged by their peers.”

Look deeper for true quality Awareness of professionalism is uneven at best, says Tim: “Quality is often a superficial or visual judgement, such as how well the floor tile is laid – or the selection of tile.” “A lot of remedial builders are engaged to fix aesthetic issues, such as cracks to a façade. However, the failure typically originates beneath the façade and surfaces at a later point.” This can be a latent defect that comes to light after construction is completed, or a patent issue


(i.e obvious on inspection) that is left unaddressed. In both scenarios, time compounds the problem. “A minor leak is a waterproofing issue in the first instance. Over time the water ingress corrodes the underlying steel structure. The concrete repair has now become an expensive structural strengthening repair.”

30

%

of building defects due to waterproofing, roof and rainwater disposal failures

Tim points to a landmark jointuniversity study of building defects which examined – among other aspects – how identified defects result in “multiple interrelated failures.” The report found that at least 30% of building defects are a result of waterproofing or roof and rainwater disposal failures2. The financial impact on lot owners can easily snowball into large-scale rectification works, raised levies, loss of rent and property value depreciation. Furthermore, owners corporation committee members are often left to make complex decisions on behalf of other lot owners in the event builders avoid their responsibilities in rectifying building defects.3 Hence, it’s prudent to understand the quality of service behind the price. For example, costcutting proposals can often reduce site management to parttime supervision by a roaming supervisor or trades person.

Complete responsibility In contrast, Paynter Dixon guarantees full-time site supervision by a dedicated Site Manager whose role upholds quality and safety on site. Recognised as a Tier 1 remedial builder, the company takes complete responsibility of the project from concept to completion. This provides a single point of responsibility for design, authority approvals, project cost, and hand over. “This new era of accountability underlines the importance of partnering with trustworthy service providers who act in your best interests. There is simply too much at stake.”

1 Flatchat, 2 November 2023, flatchat.com.au 2 N. Johnston (Deakin) with S. Reid (Griffith) An Examination of Building Defects in Multi-owned Properties’, 2019, p 58 3 ibid, p 59

To learn more, contact:

Tim Kurniadi General Manager Remedial & Insurance

tim.kurniadi@ paynterdixon.com.au

paynterdixon.com.au sectors/remedial/strata/


How does the committee deal with owner requests?

How are owner requests usually dealt with? The committee makes decisions via email in our scheme, and responses can take a long time. What is the usual process under the Act? Our strata manager doesn’t hold committee meetings. They email owner requests to committee members for consideration, and the manager waits for the majority of the committee to reply. No notice of meetings or minutes are sent to owners. Due to this process, decisions can take a long time, and owners are kept waiting. Is this the usual process under the Act?

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As best practice, items such as renovations and works over $5,000 should be determined at a duly convened strata committee meeting. Can I suggest the client check their strata agency agreement? The strata manager may have the delegation to perform these duties under their agreement without needing to seek further approval/input from the strata committee. The email to the strata committee may be out of courtesy.

I agree that items such as renovations and works over $5,000 should be determined at a duly convened strata committee meeting as best practice. That is what we do in our strata schemes. Rod Smith | The Strata Collective rsmith@thestratacollective.com.au

If there isn’t the delegation under the strata manager’s agreement, the strata manager is most likely able to take instructions on matters from the secretary.

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How can owners be sure the committee provides a true report for the insurance renewal?

Can the committee be held accountable for providing an untrue report for insurance renewal? What can owners do to prevent this from happening?

24 www.lookupstrata.com.au

Make sure the committee is not coming up with that figure themselves.


The most important thing here is to ensure the committee is not coming up with that figure themselves. The committee could be liable if they’ve come up with that figure themselves. It’s important to engage an independent professional to come up with that figure. Also, ensuring the professional has suitable professional indemnity insurance is important. That way, even if their assessment comes up and you are underinsured, at least you are covered by that professional indemnity insurance in the worst case scenario. Zac Gleeson | GQS zac@gqs.com.au READ MORE HERE

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Is the strata manager required to ensure they deduct invoices from the correct fund?

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Is the strata managing agent required to ensure they deduct invoices paid on behalf of the owners corporation from the correct fund? Is the strata management company obligated under the conditions in the management agency agreement to ensure the invoices they pay on behalf of the owners corporation are allocated correctly to either the admin or the capital works fund? Are they required to ensure they deduct the invoice amount from the correct fund?


Yes. A strata managing agent is responsible for the accurate management of the books and records of a strata scheme. In short, yes. A strata managing agent is responsible for the accurate management of the books and records of a strata scheme, including the management of the financial records and transactions of the owners corporation, where they have been provided authority to do so under an executed strata management agency agreement. A strata management agency agreement is required to include a schedule of the agent’s authority to act on behalf of an owners corporation and whether there are any limitations to that authority, pursuant to Schedule 4, Clause 2 of the Property Stock and Agents Regulation 2022 (NSW).

Where the strata managing agent has the delegated authority to undertake the financial management of the funds and books of accounts for an owners corporation, the agent is required to comply with the requirements for the use of each fund outlined under Part 5, Division 1 of the Strata Schemes Management Act 2015 (NSW). Specifically, Sections 73 and 74 of the Act outline the owners corporation’s responsibility (and the agent’s responsibility, by delegated authority) to pay money from each fund for their intended purposes. Where an agent has not complied with the requirements of the Act in accounting for the payment of invoices to the correct fund on behalf of the owners corporation, the agent may be in breach of the strata management agency agreement. Andrew Terrell | Bright & Duggan Andrew.Terrell@bright-duggan.com.au READ MORE HERE

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Why can’t I store my bins in the allocated bin area?

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Can I place my wheelie bins in the common area allocated for the bins in my apartment complex? I’ve been directed to store them in my garage, though I don’t have the space. I feel like I’m being harassed for not complying. I have been renting an apartment in Tweed Heads for five years. I have been told to keep my garbage wheelie bins in my garage rather than in the allocated bin area.


I’ve recently bought a new car. It takes up more space, and my bins do not fit in the garage with my car. I have placed the wheelie bins in the allocated bin area, and someone keeps putting the bins in front of my garage door. I’m confused because other residents place their bins in the allocated bin area. Is it illegal to place my wheelie bins in the common area allocated for the bins? I feel like I’m being harassed.

by-laws to confirm if you have such a by-law. It is unusual that you would be required to keep your bin in your garage (not to mention unsanitary). You will likely have a by-law that requires you to use the allocated bin area with guidelines on the disposal of rubbish, which you should also confirm. In our view, you are not doing anything illegal by storing your bin in the allocated area. Leanne Habib | Premium Strata info@premiumstrata.com.au

You will likely have a by-law that requires you to use the allocated bin area with guidelines on rubbish disposal.

READ MORE HERE

It is unclear who has directed you to store your bin within your garage. Most strata schemes prohibit the storage of items (other than cars) within their car space. You should check your

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City of Sydney grant round opens 6 February Owners corporations in the City of Sydney government area are eligible to apply for a green building grant. Applications open Tuesday 6 February and close Tuesday 5 March. If successful, funding is for projects from 1 July 2024. Funding available: • up to $15,000 for 1st year NABERS energy and water ratings, action plans and solar feasibility studies • $5,000 for 2nd year NABERS energy and water ratings Find out more about the City of Sydney’s green building grants. For further questions, email the grants team at communitygrants@cityofsydney.nsw.gov.au.


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There are worrying fire risks for Strata communities where Lithiumion battery powered devices such as e-bikes and e-scooters are stored

Learn more about strategies for safe storage of Lithium-ion batteries and the fire risks for Strata communities at OCN’s next Webinar, but be quick – it’s being held Thursday 15th Feb 2024 at 12pm AEDT. To register for the free webinar go to www.ocn.org.au/events


Notice Board Fortnightly Webinars Are Back 7 Feb @ 4pm SCA NSW Members scaeducation.guroo.academy/login

Did you know?

Over 400 Strata Managers attend the SCA NSW fortnightly webinar.

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Insights from the 2023 Strata Defects Survey A new report has revealed that over half (53%) of strata buildings experienced serious defects between 2016-2022, however, for schemes registered since 2020, serious defects decreased from 34% to 27%. Collaboratively undertaken by SCA NSW and the Office of the Building Commissioner, the 2023 Strata Defects survey, involving input from over 600 strata managers, indicates a rise in serious defects compared to 2021. However, for schemes registered since 2020, there is a positive trend, with serious defects decreasing from 34% to 27%. Read the Full Report Here Key findings from the survey highlight prevalent issues in waterproofing (42%), fire safety systems (24%), building enclosures (19%), structural issues (15%), key services like plumbing and elevators (14%), and non-compliant cladding (8%). In comparison to the previous report, the survey indicated a decline in incidents associated with waterproofing, structural defects, and noncompliant cladding, while there was an upward trend in issues related to fire safety, building enclosures, and key services.

The survey aimed to attain a comprehensive understanding of the impact of serious building defects in the NSW strata community. At present, there are more than 85,000 strata schemes across NSW, with expectations of a substantial increase by 2040.

(02) 9492 8200

Key Findings: New buildings have experienced a decline in defects since 2020. In NSW, 53% of buildings grapple with serious defects, up considerably from the 39% recorded in 2021. The most prevalent defects are waterproofing, fire safety, structural integrity, and key service issues. Rectifying serious defects carries an average cost of $283,000 per building. 34% of consumers now express more confidence in reporting defects to the regulator.

Additional key findings: 94% of buildings had an annual fire safety statement issued in the past 12 months. 48% of buildings with completed resolution work, serious defects were rectified within a year. The most common barriers to addressing serious defects: delays from builders or developers (42%), lack of engagement from builders or developers (31%), and upfront costs (28%). The average cost of rectifying serious defects was $283,000 per building, with 57% of these costs allocated to repairs, 20% to professional costs, and 15% to legal costs.

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EDUCATION & TRAINING LookUpStrata

Australia’s Strata Title Information Site W: https://www.lookupstrata.com.au/ E: administration@lookupstrata.com.au

Strata Community Association P: 02 9492 8200 W: https://www.strata.community/ E: admin@strata.community

Owners Corporation Network

SOFTWARE Mimor

Connecting People – Creating Communities P: 1300 064 667 W: https://www.mimor.com.au/ E: info@mimor.com.au

Stratabox

Building Confidence P: 1300 651 506 W: https://stratabox.com.au/ E: contact@stratabox.com.au

Urbanise

The Independent Voice of Strata Owners W: https://ocn.org.au/ E: enquiries@ocn.org.au

Automate your workload to increase efficiency. P: 1300 832 852 W: https://www.urbanise.com/ E: marketing@urbanise.com

Your Strata Property

Resvu

Demystifying the legal complexities of apartment living

W: https://www.yourstrataproperty.com.au/ E: amanda@yourstrataproperty.com.au

FACILITY MANAGEMENT LUNA

Building and Facilities Manager P: 1800 00 LUNA (5862) W: https://www.luna.management/ E: info@luna.management

First Facility Management Pty Ltd Putting You First P: 0402 083 404 W: https://firstfm.net.au/ E: admin@firstfm.net.au

RFM Facility Management Pty Ltd

Strata and Specialist Cleaners P: 1300 402 524 W: https://www.rfmfacilitymanagement.com.au/ E: nathan@rfmfacilitymanagement.com.au

INVESTMENT SERVICES Strata Guardian

Fight low returns and rising levies with us. P: 1300 482 736 W: https://www.strataguardian.com/ E: contact@strataguardian.com

Customer Service Software for Strata P: 08 7477 8991 W: https://resvu.io/ E: enquiries@resvu.com.au

StrataMax

Streamlining strata P: 1800 656 368 W: https://www.stratamax.com/ E: info@stratamax.com

MYBOS

Building Management - Residential & FM Schemes P: 1300 912 386 W: https://www.mybos.com.au/ E: sam@mybos.com.au

StrataVault

Connecting people, processes, and applications P: 1300 082 858 W: https://globalvaults.com.au/ E: team@thestratavault.com

Onsite Building Management Software Modern and user friendly BMS P: 0490 091 887 W: https://onsite.fm/ E: hello@onsite.fm

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BUILDING ENGINEERS & INSPECTORS Sedgwick

Building Consultancy Division & Repair Solutions W: https://www.sedgwick.com/solutions/global/au E: sales@au.sedgwick.com

QIA Group

SC Seymour Consultants

STRATA COMPLIANCE REPORT SPECIALISTS

Mabi Services

Asbestos, Safety & Building Consultants P: 1300 762 295 W: https://www.mabi.com.au/ E: info@mabi.com.au

Forte Asset Services

Comapliance Made Easy P: 1300 309 201 W: https://www.qiagroup.com.au/ E: info@qiagroup.com.au

FIRE | ELECTRICAL | HVAC P: 1300 920 752 W: https://www.forteassetservices.com.au/ E: info@forteas.com.au

GQS

Quality Building Management

Quantity Surveyors & Building Consultants P: 1300 290 235 W: https://gqs.com.au/ E: info@gqs.com.au

keeping your buildings legally compliant and safe P: 1300 880 466 W: https://qbm.com.au/ E: sales@qbm.com.au

Seymour Consultants

HFM Asset Management Pty Ltd

Body Corporate Report Specialists W: https://www.seymourconsultants.com.au/ E: info@seymourconsultants.com.au

BCRC

Construction Materials & Durability Consultants P: 02 9131 8018 W: https://bcrc.com.au/ E: sydney@bcrc.com.au

Roscon

Property services & facilities management P: 1800 767 266 W: https://www.roscon.com.au/ E: info@roscon.com

Budget Vals

Built For Strata P: 1300 148 150 W: https://www.budgetvals.com.au/ E: reports@budgetvals.com.au

Leary & Partners

Quantity surveying services since 1977 P: 1800 808 991 W: https://www.leary.com.au/ E: enquiries@leary.com.au

BIV Reports

Specialist in Strata Compliance Reports P: 1300 107 280 W: https://www.biv.com.au/ E: biv@biv.com.au

Olive Tree Consulting Group

Solutions in Strata Compliance P: 0400 161 659 W: https://olivetreeconsultinggroup.com.au/ E: admin@olivetreeconsultinggroup.com.au

Leaders in Building Efficiency P: 0407 734 260 W: https://www.hfmassets.com.au/ E: david.chokolich@hfmassets.com.au

CORE Consulting Engineers

Delivering 360° engineering solutions for strata P: 02 8961 3250 W: https://coreconsultingengineers.com.au/ E: admin@core.engineering

Auric Projects

Managing clients P: 02 9918 2200 W: https://auricprojects.com.au/ E: info@auricprojects.com.au

Independent Inspections

Sinking Fund Forecast, Insurance Valuations, OHS P: 1300 857 149 W: http://www.iigi.com.au/ E: admin@iigi.com.au

Solutions in Engineering

Quality Reports On Time, Every Time! P: 1300 136 036 W: https://www.solutionsinengineering.com/ E: enquiry@solutionsinengineering.com

Landlay Consulting Group

A Strata Remedial Consultancy P: 02 8095 8556 W: https://www.landlay.com.au/ E: admin@landlay.com.au

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STRATA REPORTS EYEON Property Inspections

Buy and Sell with More Confidence P: 1300 798 274 W: https://www.eyeon.com.au/ E: info@eyeon.com.au

Rawlinsons

Calculated Confidence P: 08 9424 5800 W: https://www.rawlinsonswa.com.au/ E: info@rawlinsonswa.com.au

Strataregister.com Pty Ltd

Find the Strata / CT Manager for your property P: 0411 483 249 W: https://www.strataregister.com/ E: hello@strataregister.com

STRATA LAWYERS Kerin Benson Lawyers Pty Ltd

Specialised Legal Advice for Strata P: 02 8706 7060 W: https://kerinbensonlawyers.com.au/ E: enquiries@kerinbensonlawyers.com.au

Khoury Lawyers Pty Ltd

Client focused, Results Driven P: (02) 8005 3086 W: https://khourylawyers.com.au/ E: pierrette@khourylawyers.com.au

Madison Marcus Law Firm

Be Empowered P: 131 529 W: https://www.madisonmarcus.com.au/ E: strata@madisonmarcus.com.au

Holman Webb Lawyers

Body Corporate Disputes & Litigation Specialists P: 07 3235 0100 W: https://www.holmanwebb.com.au/ E: shane.roberts@holmanwebb.com.au

Royer Mace Lawyers

Your Property is our Priority P: 0434 388 898 W: https://royermace.com.au/ E: solon@royermace.com.au

Bugden Allen Graham Lawyers

Australia’s leading strata law experts P: 02 9199 1055 W: https://bagl.com.au/ E: info@bagl.com.au

JS Mueller & Co Lawyers

Specialist ‘Plain English’ NSW Strata Lawyers W: https://www.muellers.com.au/ E: enquiries@muellers.com.au

Williamson Lawyers

A construction and strata lawyer ready to listen W: https://www.williamsonlawyers.com.au/ E: shane@williamsonlawyers.com.au

Douglas Cheveralls Lawyers

The Go-To Strata Lawyers P: 08 9380 9288 W: https://www.dclawyers.com.au/ E: office@dclawyers.com.au

Bannermans Lawyers

High Quality Specialist Legal Services P: 02 9929 0226 W: https://www.bannermans.com.au/ E: enquiries@bannermans.com.au

Moray & Agnew Lawyers

Legal strategies and solutions for our clients P: 03 9600 0877 W: https://www.moray.com.au/ E: melbourne@moray.com.au

Grace Lawyers

Know. Act. Resolve. W: https://gracelawyers.com.au/ E: enquiries@gracelawyers.com.au

Speirs Ryan

P: 02 9248 3400 W: https://www.speirsryan.com.au/ E: ssaw@speirsryan.com.au

Watson & Watson Lawyers

“when experience matters”….. P: 02 9221 6011 W: https://www.watsonandwatson.com.au/ E: richard@watsonandwatson.com.au

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STRATA MANAGEMENT Premium Strata

Diamond-Class strata management agency P: 02 9281 6440 W: https://www.premiumstrata.com.au/ E: info@premiumstrata.com.au

The Strata Collective

A next generation strata manager. People matter. P: 02 9879 3547 W: https://www.thestratacollective.com.au/ E: rsmith@thestratacollective.com.au

Bridge Strata P/L

The bridge between you and your corporation P: 02 6109 7700 W: https://bridgestrata.com.au/wp/ E: jan@bridgestrata.com.au

Bright & Duggan

Strata Professionals P: 02 9902 7100 W: https://bright-duggan.com.au/ E: customercare@bright-duggan.com.au

Civium Communities

When you build trust, you build a community P: 1300 724 256 W: https://civium.com.au/ E: clientservices@civium.com.au

Vital Strata

Strata Made Simple P: 02 9008 1112 W: https://www.vitalstrata.com.au/ E: hello@vitalstrata.com.au

ASM – Australian Strata Management Helping Strata Communities Thrive P: 1300 777 276 W: https://asmstrata.com.au/ E: administration@mbcm.com.au

Sky Living Strata

Providing a superior customer experience P: 02 9299 1100 W: https://www.skylivingstrata.com.au/ E: enquiries@skylivingstrata.com.au

SSKB Strata Managers

A Positive Difference in Strata P: 07 5504 2000 W: https://sskb.com.au/ E: sskb@sskb.com.au

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Townhouse Strata PTY Ltd

Strata Management with a Difference P: 02 4971 0363 W: https://www.townhousestrata.com.au/ E: alan@townhousestrata.com.au

Strata Central

Boutique Strata Management Services P: 02 8036 5518 W: https://stratacentral.com.au/ E: enquiries@stratacentral.com.au

Acumen Strata

Tailored Strata Management Solutions P: 02 7253 5820 W: https://www.acumenstrata.com.au/ E: info@acumenstrata.com.au

Quantum United Management

Creating vibrant and connected communities P: 61 383 608 800 W: https://www.quantumunited.com.au/ E: info@quantumunited.com.au

INSURANCE Strata Insurance Solutions

Protecting owner assets is who we are P: 1300 554 165 W: https://www.stratainsurancesolutions.com.au/ E: info@stratainsurancesolutions.com.au

Whitbread Insurance Brokers Empower Your Vision P: 1300 424 627 W: https://www.whitbread.com.au/ E: info@whitbread.com.au

CHU Underwriting Agencies Pty Ltd

Specialist Strata Insurance Underwriting Agency W: https://www.chu.com.au/ E: info@chu.com.au

Strata Community Insurance

Protection for your strata property. And you. P: 1300 724 678 W: https://www.stratacommunityinsure.com.au E: myenquiry@scinsure.com.au

Flex Insurance

Your Cover Your Choice P: 1300 201 021 W: https://www.flexinsurance.com.au/ E: info@flexinsurance.com.au

Driscoll Strata Consulting

Knowledge | Experience | Service P: 0402 342 034 W: https://driscollstrataconsulting.com.au/ E: enquiries@driscollstrataconsulting.com.au


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DEFECT RESTORATION

FIRE SERVICES

MJ Engineering Projects

Linkfire Pty Ltd

Klaar

Chief AFSS Services

Remedial Consultant Engineers P: 1300 571 991 W: https://mjengineeringprojects.com.au/ E: info@mjengineeringprojects.com.au The Strata Building Specialists P: 02 8003 4547 W: https://klaar.com.au/ E: build@klaar.com.au

Ouroboros design

Your Essential Safety Partner P: 1300 669 439 W: http://www.linkfire.com.au/ E: sales@linkfire.com.au YOUR AFSS COMPLIANCE IS OUR PRIORITY P: 0405 932 458 W: https://afssfirechief.com.au/ E: melanie@chiefmechanicalservices.com

2020 Fire Protection

Architect assistance with upgrades and renovations P: 0400 152 833 E: garymo12@gmail.com

Experts in Fire Protection for Strata P: 1300 340 210 W: https://www.2020fireprotection.com.au/ E: service@2020fire.com.au

TRADECOM GROUP

Fire Safety Constructions

Innovative Commercial Building Projects P: 1300 301 888 W: https://tradecomgroup.com/ E: services@tradecomgroup.com

ELECTRICAL Altogether Group

Power.Water.Data P: 1300 803 803 W: https://altogethergroup.com.au/home-business/ E: eaustin@altogethergroup.com.au

Compliant Specialist since 1999 P: 02 9945 3499 W: http://www.firesafetyconstruction.com.au/ E: info@firesafetyconstructions.com.au

Betta Fire Protection

Compliance you can trust P: 02 8669 9108 W: https://bettafireprotection.com.au/ E: info@bettafireprotection.com.au

SUSTAINABILITY

ENM Solutions

Humenergy

Providing Solutions for Embedded Networks P: 1300 000 366 W: https://www.enmsolutions.com.au/ E: info@ENMSolutions.com.au

People, innovation and value sharing P: 1300 322 622 W: https://www.humenergy.com.au/ E: Info@humenergy.com.au

Energy On Pty Ltd

The Green Guys Group

McIntosh Electrical Pty Ltd

Fair Water Meters

P: 1300 323 263 W: https://www.energyon.com.au/ E: EnergyServices@EnergyOn.com.au Powered by Trust P: 1300 627 727 W: https://www.mcintoshelectrical.com.au/ E: jenny@mcintoshelectrical.com.au

Austalia’s Leading Energy Saving Partner W: https://greenguys.com.au/ E: sean@greenguys.com.au Retrofit sub-metering specialists P: 1300 324 701 W: https://fairwatermeters.com.au/ E: info@fairwatermeters.com.au

EMERLITE ELECTRICAL SERVICES

We Answer The Phone - No Job Too Big Or Small P: 07 5591 9191 W: https://www.emerlite.com.au/ E: office@emerlite.com.au

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PLUMBING

WINDOWS & DOORS

Stormwater Sydney

Windowline Pty Ltd

P: 1300 741 003 W: https://stormwatersydney.com/ E: admin@stormwatersydney.com

P: 02 8304 6400 W: https://windowline.com.au/ E: info@windowline.com.au

HYDRAULICA Pty Ltd

ASQB Pty Ltd

Specialise in Drain & Pipe Cleaning W: https://www.hydraulica.com.au/ E: darren@hydraulica.com.au

Window & Door Repairs + Window Safety Compliance P: 02 9785 7893 W: https://www.asqb.com.au/ E: service@asqb.com.au

Mr Washer, Plumber To The Rescue

The Window Guy

Inspection, Repair and Maintenance of drainage assets

Over 30 years serving Sydney Strata buildings P: 02 8583 2360 W: plumbertotherescue.com.au/strata-commercial.html E: jobs@mrwasher.com.au

WATERPROOFING

Superseal Protective Coatings (SPC) Waterproofing & Epoxy Specialists P: 02 9774 1004 W: https://www.spcau.com/ E: info@spcau.com

Danrae Group

Remedial Waterproofing & Building Specialists P: 1800 326 723 W: https://www.danraegroup.com.au/ E: enquiries@danrae.com.au

VALUERS Asset Strata Valuers

Leaders in Strata Property Valuations P: 1800 679 787 W: https://assetstratavaluers.com.au/ E: workorders@assetstratavaluers.com.au

Adelaide StrataVal

Strata & Community Insurance Valuations P: 08 7111 2956 W: https://www.strataval.com.au/ E: valuations@strataval.com.au

ENERGY Arena Energy Consulting Pty Ltd

Independent Embedded Network Consulting Services P: 1300 987 147 W: https://www.arenaenergyconsulting.com.au/ E: info@arenaenergyconsulting.com.au

Embedded Network Arena

Independent Embedded Network Consulting Services P: 1300 987 147 W: https://embeddednetworkarena.com.au/ E: info@embeddednetworkarena.com.au

Replacement window and door specialists

Don’t choose any guy, choose The Window Guy! P: 1300 663 664 W: https://www.thewindowguy.com.au/ E: info@thewindowguy.com.au

PAINTING Higgins Coatings Pty Ltd

Specialist painters in the strata industry W: https://www.higgins.com.au/ E: info@higgins.com.au

CPR Facade Upgrade Specialists

We clean, repair & repaint multi-storey buildings P: 0493 651 643 W: https://cprfacadeupgrades.com.au/ E: info@facadeupgrades.com.au

3 Colours Painting Services 3 Colours Painting Services P: 1300 883 635 W: https://3colours.com.au/ E: 3colours@3colours.com.au

Terra Australis Painting Services

Terra Australis Painting Services P: 0497 545 289 W: https://www.terraaustralispainting.com.au/ E: info@terraaustralispainting.com.au

FRANCHISERS Network Pacific Strata Franchise

Join our successful team P: 03 9999 5488 W: www.networkpacificstratafranchise.com.au/ E: networkpacific@franchisedevelopments.com.au

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RECRUITMENT SERVICES

Strata Solve

sharonbennie – Property Recruitment

Insight Resolutions

Property Recruitment Partners

Untangling strata problems P: 0419 805 898 W: https://stratasolve.com.au/ E: chris@stratasolve.com.au Reconcile and rebuild through mediation P: 0413 334 633 W: https://insightresolutions.com.au/ E: vad.mediation@gmail.com

STRATA LOAN PROFESSIONALS

Matching top talent with incredible businesses P: 0413 381 381 W: https://www.sharonbennie.com.au/ E: sb@sharonbennie.com.au Recruitment Solutions Tailored for You P: 02 8313 5591 E: aaron@propertyrecruitmentpartners.com.au

ACCOUNTANTS

StrataLoans

Tinworth & Co

Lannock Strata Finance

Matthew Faulkner Accountancy

The Leading Strata Finance Specialist P: 1300 851 585 W: https://lannock.com.au/ E: strata@lannock.com.au

Strata Auditing specialists P: 0438 116 374 W: https://www.mattfaulkner.accountants/ E: matt@mattfaulkner.accountants

Austrata Finance

Incite Accountants & Advisors

LIFTS & ELEVATORS

SAFETY & SECURITY

Innovative Lift Consulting Pty Ltd

QUATRIX PTY LTD

The Lift Consultancy

Lock, Stock & Barrel Locksmiths Pty Ltd

The Experts in Strata Finance P: 1300 785 045 W: https://www.strata-loans.com/ E: info@strata-loans.com

Pay Now or Pay Later: It’s Your Choice® P: 1300 936 560 W: https://austratafinance.com.au/ E: info@austratafinance.com.au

Australia’s Vertical Transportation Consultants P: 0417 784 245 W: https://www.ilcpl.com.au/ E: bfulcher@ilcpl.com.au Trusted Specialised Advice P: 07 5509 0100 W: https://theliftc.com/ E: sidb@theliftc.com

ABN Lift Consultants

A team of friendly, open minded professionals P: 0468 659 100 W: https://www.abnlift.com/ E: andrew@abnlift.com

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Chartered Accountant & Strata Auditors P: 0499 025 069 W: https://www.tinworthaccountants.com.au/ E: caren.chen@tinworth.com

Provides a service that delivers the outcomes P: 02 8067 9015 W: https://www.inciteaccountants.com.au/ E: admin@inciteaccountants.com.au

Intercoms, Access Control, CCTV, Data, etc. P: 02 9554 3487 W: https://www.quatrix.com.au/ E: info@quatrix.com.au

P: 0411 700 072 W: https://www.lsblocksmiths.com.au/ E: info@lsblocksmiths.com.au

Macquarie Locksmiths & Security

Trusted Master Locksmiths since 1981 P: 02 9887 3433 W: https://www.macquarielocksmiths.com.au/ E: sales@macquarielocksmiths.com.au


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Everything Roofing! P: 02 9666 7373 W: https://www.aptroofing.com.au/ E: admin@aptroofing.com.au

CLOTHESLINES Lifestyle Clotheslines

Clothesline and washing line supplier & installer P: 1300 798 779 W: https://www.lifestyleclotheslines.com.au/ E: admin@lifestyleclotheslines.com.au

CLEANERS

Leaf Shield

Leafshield Gutter Protection Specialists P: 1300 362 246 W: https://leafshield.net.au/why-leafshield/ E: info@leafsheild.net.au

ANTENNAS

Arrow Abseiling Pty Ltd

Window cleaning, repair and maintenance P: 02 8957 3693 W: https://www.arrowabseiling.com.au/ E: contact@arrowabseiling.com.au

Waste Clear Pty Ltd

Install My Antenna

Professional TV Antenna Service For You Today P: 1300 800 123 W: https://www.installmyantenna.com.au/ E: info@installmyantenna.com.au

PROJECT MANAGEMENT Valen Project Services

Client-Side Project Management Specialists P: 02 8542 4293 W: https://valenprojects.com.au/ E: enquiries@valenprojects.com.au

Towards a better tomorrow P: 1300 525 352 W: https://wasteclear.com.au/ E: admin@wasteclear.com.au

DELIVERY & COLLECTION SERVICES Groundfloor™

Australian parcel, mail, and refrigerated lockers P: 03 9982 4462 W: https://groundfloordelivery.com/ E: ask@groundfloordelivery.com

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