The VIC
STRATA MAGAZINE JULY 2022
Rain water entering through the balcony sliding door
Damage to balcony after cladding rectification
Someone is parking in my car spot
Page 4 | Sedgwick
Page 22 | MBCM Strata Specialists
Page 28 | StrataPoint
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 in SEQ, and is currently in her third term on the SCA (WA) Education and Professional Development Committee. More recently Nikki has become 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 some 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: The information contained in this magazine, including the response to submitted questions, is not legal advice and should not be relied upon as legal advice. You should seek independent advice before acting on the information contained in this magazine. 2 www.lookupstrata.com.au
2 www.lookupstrata.com.au
Contents 4 Rainwater entering through the balcony sliding door
20 Stratum Titles, Company Title & Service Companies FAQs
Bruce McKenzie, Sedgwick
Phillip Leaman, Tisher Liner FC Law
6 MIMOR Conquers Communication Challenges
22 Damage to balcony after cladding rectification
MIMOR
Jodie Moloney, MBCM Strata Specialists
8 Is there insurance for damage to the waterproofing on my balcony? Tyrone Shandiman, Strata Insurance Solutions
10 The Number 1 Reason Why Committees Should Consider Giving the Developer/ Builder Appointed OC Manager the Boot Strata Management Consultants
14 What amount is a healthy balance for a sinking fund? Tim Fuller, Strata Guardian & Kaylene Arkcoll, Leary & Partners
24 No insurance because of our cladding Tyrone Shandiman, Strata Insurance Solutions
26 No proof of exclusive use of a courtyard Rochelle Castro, RC & Co Lawyers
28 Someone is parking in my car spot Guy Garreffa, StrataPoint
30 Is water overflow from a communal drain classed as flooding? Tyrone Shandiman, Strata Insurance Solutions
16 How inclusive is your strata community? The Knight
18 Committee member harassed by residents
32 Burning Questions: Five years on from Grenfell, what can Victoria learn? SCA (VIC)
36
The VIC LookUpStrata Directory
Chris Irons, Strata Solve
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Rainwater entering through the balcony sliding door
When it rains, water backs up into the door tracks and drains into my garage below. The OC will not assist as they say it is not their problem. How do I solve this? I live in a 2 story townhouse in a block of 8. The block is about 15 years old. I have a street level sliding door opening onto a 25 sqm balcony. I was told by tradesmen that the issue is due to a building defect causing my balcony to sit higher than it should. The sliding door tracks are buried into the balcony so rainwater cannot drain out of the tracks and instead, flows into the garage below. The OC will not help as they say it’s not their problem. 4 www.lookupstrata.com.au
There should be a step down from the inside of the apartment to the outside of the balcony. In accordance with the building code, there should be a step down from the inside of the apartment to the outside of the balcony. That step can vary, but we’re talking around 75 millimetres or 3 inches. This can change dependent on the exposure of the particular building, type of building and what exposure it has to the coast, etc. That step is, very regularly, compromised. Modern architecture has a big part to play in that. We all enjoy that indoor outdoor living transition where don’t want to step over something or down, we’d like to just go straight out onto the balcony. How have they overcome that in modern architecture? One of the solutions is strip drains at the openings, and effectively the step is within that strip drain where there’s an ability to capture the water before it can come inside. The purpose of a step is that if you looked at an outdoor balcony, if there is a 75 millimetre step, the balcony can effectively fill up like a bathtub. It’s not until the water reaches that 75 millimetre height that it will spill inside. That’s your layer of protection. You would like to think that by then the water has overflowed off the balcony and you don’t have a problem. The problem outlined in the question is very, very common.
We see this regularly. This building is 15 years old. Quite often around that era, many buildings alleviate that step. Also, in a building of that age people make decisions to renovate. They may choose to put tiles on the balcony, the floor gets built up and all of a sudden it eliminates that step. Drainage is normally in the aluminium sill. When the water hits the glass door it runs down into the track at the bottom and there are slits that allow the water to escape onto the balcony and run away. If you cover those slits up, it’s like putting a plug in a bathtub and the water can’t get out. Water will build up and the closest place it can go is normally inside the apartment because that is it’s only form of escape. When those slots are blocked, you are limited in what you can do. Are there retrofitted tiles on the balcony? If so, they may need to come up and the floor lowered to a new height if that’s possible. Another solution, and we’ve done this before, is for contractors to cut strip drains to allow the water to escape. This solution is very dependent on the structure below as you may not be able to cut into the structural members of the slab. These issues are normally associated with a lot property problem given it is a balcony and a sliding door. Are there other units in the complex that have the same issue? Bruce McKenzie | Sedgwick bruce.mckenzie@au.sedgwick.com READ MORE HERE
Supporting Owners and Strata Managers with tailored remediation and repair solutions
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Emergency make safe
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Scope of works
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Fire water damage restoration
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Dilapidation & risk surveys
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Leak detection
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Dispute mediation and expert witness
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Contamination response
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Contractor procurement and cost validation
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Cost validation services
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1300 735 720 sales@au.sedgwick.com
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Mimor Conquers Communication Challenges COMMUNICATION FEATURE In a digital age when a laptop, mobile phone or smart watch are always within easy reach, relying on notice boards or snail mail to communicate seems a little outdated, not to mention unreliable. Australian entrepreneur Jake Sharp was of the same opinion when he created MIMOR, a one-stop shop to overcome strata-living sticking points. The digital platform acts as a central information and communication hub for residents and building managers and service providers, comprising vital building information, moving processes, procedures for managing parcels and booking common areas, and general announcements.
Central to MIMOR is it’s function as a real-time communications channel, sharing alerts and reminders with residents via SMS and email. No more unsightly notices in the foyer or lift; no more worrying if messages have been read; and no more multiple calls to the building manager from residents asking the same questions. Instead, messages can be shared with hundreds of people instantaneously, keeping residents up to date about important news or events that can impact amenity, whether its lift maintenance, hard rubbish collection or a change to gym hours. “Printing posters and sticking them around the building is an inefficient use of time and no guarantee that the information will reach everyone,” Sharp said.
“MIMOR makes communicating with owners, tenants, building managers and owner corporations so easy and guarantees reach to hundreds of residents or a private message to just one person. Having capacity to disseminate information quickly and in a targeted manner is particularly important in the time of a pandemic, where restrictions can change at a moment’s notice.” MIMOR also streamlines communications regarding moving processes, with residents able to book online their preferred date and time, with the confirmation email outlining procedures for parking and use of lifts. The MIMOR platform also hosts a wide range of building information, such as gas connections, electricity suppliers, water rates, and emergency
info@mimor.com.au
contacts and evacuation plans, and can manage parcel deliveries. The addition of the common area booking function avoids potential for overcrowding and ensures residents can access facilities. “Removing common friction points and maintaining clear communications is essential to creating a harmonious environment, where everyone understands and abides by the same rules,” Sharp said. MIMOR subscriptions are scalable, from three apartments to more than 500, with the platform currently being translated into 10 languages and soon to launch as a mobile app.
For more information, go to
mimor.com.au
mimor.com.au
7
Is there insurance for damage to the waterproofing on my balcony? 8 www.lookupstrata.com.au
Q
I own a lot in VIC. The waterproofing of my balcony isn’t covered by strata insurance. It is the lot owner’s responsibility to maintain and repair? Is there an insurance product available that insures me for damage to the waterproofing on my balcony?
A
Costs associated with maintenance of a property are part of the risk of owning a property.
The general principle for insurance is that maintenance costs are costs for the property owner – similar to tyres and radiators failing in a car.
All policies will have exclusions associated with wear and tear, gradual deterioration, developing flaws, building defects, rectification of faulty workmanship etc. While the maintenance cost can be high for membrane repairs, I am not aware of a product or policy on the market that provides maintenance cover (just like I am not aware of any policy that provides cover to fix a burnt out car radiator). In this instance, costs associated with maintenance of a property are part of the risk of owning a property.
Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE
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The Number 1 Reason Why Committees Should Give the Developer/Builder Appointed OC Manager the Boot Owners and Committee Don’t Get a Say
The Unhealthy and Disjointed Loyalty Dynamic
Firstly, we need to discuss what happens with new
So it is owners, investors, and Committee Members that
buildings, Owners Corporations, and how timing
constitute the OC - and they are the ones who pay the OC
ultimately impacts Owners and Committee Members
levies. A portion of the OC levies (the management fees)
(not always for the better).
goes into the pocket of the OC management company.
•
The developer buys the land and obtains approval to build.
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The design and build process gets underway.
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Once the building is completed, the developer registers the Plan of Subdivision with Land Victoria.
•
Once the Plan is registered, the site is now a building with individual titles that can be bought and sold and at the same, an Owners Corporation is created in the process.
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The developer as the initial owner sets-up and implements all the initial contracts including the owners corporation management contract.
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The owners move in and the OC is tied to these contracts (until the day the contracts expire and the Committee does something about it).
But what happens when the building has defects and other issues? Who’s side is the OC management company actually on?
The Number 1 Reason Why Committees Should Give the Developer/Builder Appointed OC Manager the Boot This problem is a well-known industry inside secret –
building work (whether or not the occupancy
don’t upset the developer or bite the hand that feeds
permit is subsequently cancelled or varied) or, if an
you.
occupancy permit is not issued, the date of issue under Part 4 of the certificate of final inspection of
The reality is that the OC management company is conflicted between helping the OC action building defects vs staying in favour with the developer (with the hope to be appointed on their next project). Unfortunately, it is
the building work.
”
No one buys a brand new apartment expecting to have to deal with building defects for years to come. Dealing
often the latter that wins out.
with building defects come with immense emotional
It then becomes much easier to raise work orders and
(depending on their loyalties) will either help or make
special levies paid for by the OC rather than have an
and financial cost but the OC management company matters worse.
uncomfortable conversation.
The other problem working against OCs and Committees – the ticking clock How long do Committees and owners corporations have
Costly common defects problems Building defects have been plaguing owners corporations and owners across Australia for the past 1-2 decades. It’s an unfortunate reality that probably hasn’t received due media attention until in recent years when some larger
when it comes to lodging a claim for building defects?
apartment towers in Sydney had to be evacuated.
Section 134 of the Building Act 1993 (Victoria) states:
Common issues affecting OCs include:
“
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Flammable cladding
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Water ingress and inadequate waterproofing
•
Structural integrity issues
Despite any thing to the contrary in
•
Inadequate fire safety compliance
the Limitation of Actions Act 1958 or in any
•
Glass and other major components being defective
Limitation on time when building action may
be brought (1)
other Act or law, a building action cannot be brought more than 10 years after the date of
These issues and others are always stressful and costly
issue of the occupancy permit in respect of the
for the owners. Owners in strata titled buildings and
The Number 1 Reason Why Committees Should Give the Developer/Builder Appointed OC Manager the Boot owners corporations rely on the guidance of their OC
The Owners Corporations Act 2006 I’m sure meant well
management company. If there isn’t an alignment of
with its directive that the developer ‘must act in honestly
objectives and values - the entire process becomes much
and in good faith…’ but it was definitely very broad
more stressful and costly for the owners and Committees.
terminology. Fast-forward 15 years and finally we have the OC amendments coming into force which are a lot
What about the OC legislation in Victoria?
more clear and prescriptive:
The Number 1 Reason Why Committees Should Give the Developer/Builder Appointed OC Manager the Boot The point of the matter is also that there must have been a lot of rampant misbehaviour for the legislators to stepin and pick up the pen.
Changing OC management companies? Since January 2014, we have been trusted by Committees
We have had some insights from the Committees we
when it comes to navigating the process of changing OC
have worked with and sat down with. Comments and
management companies. We 100% independent, not
insights such as:
tied to any other company, and work with a panel of carefully vetted OC management companies.
•
The developer’s representative (the daughter) showed up to the AGM with their proxies and openly relayed that her dad had told she was to vote and say no to everything. In the running of the building, if matters didn’t meet the developer’s expectations then decisions and votes were swayed to ultimately be in the developer’s favour.
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Defects dragging on and on – it later becoming apparent that was the OC management company’s main game.
•
OC management companies either being 100% owned subsidiaries of the developer or a related party or aligned/affiliated. There are (were, and/or should be no more under new OC amendments) some larger developers and OC management companies having in place formal arrangements and agreements.
We wrote this more comprehensive overview of OC legislation in Victoria a while back (well worth a read): https: //strataconsultants.com.au/the-long-road-tofairness-for-apartment-owners
For more information visit us at strataconsultants.com.au or get in touch via office@strataconsultants.com.au or 1300 917 848.
What amount is a healthy balance for a sinking fund?
Would an indication of a good healthy sinking fund balance be at least the amount of the annual operating budget? I’m interested in identifying what amount is a healthy balance for a sinking fund. Understand this is usually based upon future major maintenance capital plans spend. Would an indication of good health be at least the amount of the annual operating budget in a sinking fund balance?
14 www.lookupstrata.com.au
The balance of the fund is predicated on what it needs to be spent on. Kaylene Arkcoll, Leary & Partners Unfortunately, there’s no simple check of your fund health other than properly preparing or reviewing your maintenance plan. What you need to have in your fund is completely dependent on what work your building needs done and where it is in the work cycle. Be particularly careful if you’re still in the early developer control period. Developers set budgets and maintenance plans and often ‘under predict’ the extent of future works and their cost.
Tim Fuller, Strata Guardian This makes perfect sense. I’m not surprise we’ve received this question from someone in Victoria since there hasn’t been a compulsion to have a maintenance plan up until the end of last year. It makes perfect sense that the balance of the fund is predicated on what it needs to be spent on. Until you’ve got that in place and quantified, the balance of the fund is almost because otherwise you’re just putting money in a bucket for something in the future.
Kaylene Arkcoll | Leary & Partners enquiries@leary.com.au Tim Fuller | Strata Guardian contact@strataguardian.com READ MORE HERE
15
How inclusive is your strata community? Accessibility and discrimination within Owners Corporations.
The topic of discrimination within strata properties is a complex one. Private property does not need to comply with the provisions of anti-discrimination legislations, such as the Equal Opportunity Act 2010 (EO Act). Owners Corporations however, despite being private property, cannot be treated in the same way as a standalone house due to their shared nature, and the range of persons who may require access to and use of the property. This access is a fundamental right of those who privately own or lease within the property. While more legislative guidance in this area would be welcome, a ruling in the 2018 case OC1-POS539033E v Black has helped clear things up, by irrefutably defining an Owners Corporation as a ‘service provider’ under the EO Act. In this case, the supreme court found that sections 44 and 45 of the EO Act – which state that a service provider ‘must not discriminate against another person’ and ‘must make reasonable adjustments for a person with a disability’ - do apply to Owners Corporations. This is an important ruling, as these sections do not H[SUHVVO\ UHIHU WR 2ZQHUV &RUSRUDWLRQV DQG GLŹHU from Section 56 (which does) in that it is not only the responsibility of the OC to ‘allow’ the alterations, but rather to ‘make’ (and therefore, it can be inferred, ‘fund’) the alterations. So, we now know that an OC, as a service provider, must accommodate reasonable requests of owners or tenants with a disability. But should Committees wishing to future-proof, and cement their property’s position as a valuable and desirable place to live, consider taking things a step further? 16 www.lookupstrata.com.au
$ YDULHW\ RI IDFWRUV LQFOXGLQJ KRXVLQJ DŹRUGDELOLW\ and an ageing population - are resulting in an exponential increase in the number of people living in strata-titled properties. As our strata population grows, so too does the likelihood of accessibility requests which the Owners Corporation may be required to pay for. An Owners Corporation which plans for this, taking a proactive, rather than reactive, approach is not only going to become more attractive to a wider range of residents, but also minimise the chance of special levies being raised if a resident with accessibility needs requests modifications to common property. Committees may consider adding a budget amount each year towards the sorts of retrofits which may be required for people with disabilities. These works could include installing or upgrading handrails, installing automatic doors, or even installing a lift where one is not present. Having the money set aside for these items will mean that when the request is made by a resident, swift action can be taken, and that access to and peaceful enjoyment of their home is not restricted. Especially proactive Committees may consider going ahead with these sorts of works even if not yet requested, to ensure they are creating a truly inclusive community for all who may one day call it home. Another element that can be forgotten about is ensuring any resident with a disability has a personal evacuation plan in the event of an emergency. These can be drawn up with your building manager and will provide committees with peace of mind that the needs of all residents in an emergency will be met.
How inclusive is your strata community?
There are numerous perspectives to consider when making these choices. The works may not equally benefit all owners at once, however it is worth remembering that any resident may benefit from improved accessibility, at any time. For example, in the case of an injury, or new parents with prams. And while there may be ongoing maintenance costs associated with these inclusions, the improved appeal, sense of community, and potentially property values can all be justifications for this spend. While no definition has yet been provided by the courts as to what constitutes a ‘reasonable’ request, it is our view that Owners Corporations should always approach these topics with compassion and an open mind.
Looking for a better Owners Corporation Management experience? The Knight is a carbon neutral, family-run business of 27 years, managing over 400 Owners Corporations of all types & sizes across greater Melbourne and Geelong. Our ethos is summarised in three words: insight, integrity, and results. We are set apart by our tried and tested expertise, high ethical standards, and long-lasting client relationships.
You never know when someone in your community might find themselves in need of a bit of extra support, and with the right planning and consideration, your Owners Corporation can ensure their home remains a safe and inclusive place to live.
Our mission is to be your trusted partner. Get your free Management Proposal today.
9509 3144
newbusiness@theknight.com.au
www.theknight.com.au 17
Committee member harassed by residents As a Committee member, I should be able to have ‘quiet enjoyment’ of common areas without being berated, door stopped, yelled at, threatened whilst traversing common property!
Each strata scheme is different and how things work will therefore differ from building to building.
As a Committee member, I hate being ‘door stopped’ by whinging tenants and owners.
You have my full empathy on door stopping and also the far more disturbing instances of being yelled at or threatened. That latter should not happen to anyone, least of all a volunteer strata participant.
All matters should, in the first instance, be sent to the Property Managers who then forward the information onto the Committee Secretary who will either call an urgent meeting or hold the matter over until the next scheduled Committee meeting.
To me, this situation highlights one of the truisms of strata and irrespective of which State, Territory or indeed, Country it is located in: namely, that each strata scheme is different and how things work will therefore differ from building to building.
Everyone should be able to have ‘quiet enjoyment’ of common areas without being berated, door stopped, yelled at, threatened whilst traversing common property!
Put another way: while government gives a legislative framework for strata operations, it is also acknowledged – and indeed, entirely appropriate – that that framework be ‘elastic’ enough to suit. In your scenario, I know there are plenty of schemes in Queensland (from where I write this) in which it is both common and encouraged
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for door stopping and personal interactions (in the car park, in the lobby, in the stairwell) to ventilate issues or indeed to simply have a chat. To me, if that is happening in a constructive way and not impinging on one’s personal boundaries, that is to be encouraged. My experience is that quite a few strata schemes get results from this approach. It is also the best example I can think of to emphasise the ‘community’ aspect of strata. Like it or not, strata is all about a community, a group of participants who otherwise would have nothing to do with each other but who, by virtue of ownership, residency or contract, are very much part of a community. The key here is setting boundaries. You don’t like being door stopped? That’s totally fine – just make sure that is clearly known and if necessary, communicated in writing. While you are at it, make sure everyone knows how to communicate in the alternative. Do all owners, tenants and relevant contractors have the best contact details? If there are communication preferences (such as a certain
number of emails or communication at particular times of day)? Do they know those? Do you or your fellow councillors have a strata-specific email address? If not, time to think about getting one, as it will remove your personal email address from the equation and create the kind of separation and distance between strata and personal that you are after. And then, if you are being berated, yelled at or threatened, that too warrants boundaries being clearly defined. To emphasise those boundaries, that may mean initiating formal proceedings against the offending party or parties. My point is that if there is behaviour occurring which you do not appreciate, you need to take steps to firstly make it clear you don’t appreciate it and then be prepared to follow through on it, if the behaviour keeps occurring.
Chris Irons | Strata Solve chris@stratasolve.com.au READ MORE HERE
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21
Damage to balcony after cladding rectification
After cladding rectification work was done on our balcony, our AC no longer works and we’ve noted other damage. The OC will not take any action. What do we do now? I own a Docklands apartment on the 11th floor of the building. Two months ago, the Owners Corporation organised balcony cladding rectification works. While the work was being done, the balcony was inaccessible and our air-conditioning unit installed on our balcony was turned off. Even though the AC is over 15 years old, it has been regularly serviced and its compressor motor was changed 2 years ago. Before the balcony cladding works commenced, the contractors carried out preinspection testing and found the AC working.
Approaching the builder directly might be a quicker option provided that there is enough evidence stating that the cause is from their works. Since the builder was engaged by the Owners Corporation to carry out the cladding work, the onus is on the Owners Corporation manager to inform the builder of your concerns and request the builder to liaise with the lot owner to assess the situation and advise.
When the balcony cladding works were finished and we were handed back the balcony access, we found various issues. The AC is no longer working, the AC insulation pipe is missing, there are now multiple cracks on the balcony floor and a nut is missing from the partition glass.
If the owner is not receiving a timely response from the manager, which seems to be the case here, then approaching the builder directly might be a quicker option provided that there is enough evidence stating that the cause is from their works. This might mean the lot owner engaging an Air-Con technician to provide an assessment/report on the condition of the Unit and what may have caused the unit to fail. The same process should apply to other damages incurred to the balcony and most importantly, the glass partition referred to in the concern, which might need to have the missing screws refitted from an OH&S requirement.
We reported these issues to the Owners Corporation, but nothing has been done. We have had no communication about the dispute resolution process. What do we do now?
The other option would be to lodge a formal complaint with the Strata Manager by following the Consumer Affairs guidelines. Failing that, lodging the dispute at VCAT might be your last resort to resolve the issue. Jodie Moloney | MBCM Strata Specialists rkaka@mbcm.com.au READ MORE HERE
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Wait now, pay more later. This article is brought to you by Lannock Strata Finance.
There has been a lot of discussion about record increases in the price of real estate over the last 12 months but there is a more pressing issue that strata owners need to be aware of – the rising cost of construction works. A combination of booming demand, labour shortage, material shortages and supply chain disruptions are creating the perfect storm for increased construction costs. According to CoreLogic’s Research Director Tim Lawless, the heightened construction activity and rising costs experienced across Australia won’t be going away soon and will likely cause affordability challenges for owners across the country. “The quarterly rate of growth in construction costs is happening everywhere and is not restricted to one city or state, it’s a national trend,” he said.
“This construction cost inflation could continue for another 12 to 18 months. It’s unlikely the industry can absorb a cost increase this significant into their margins and higher construction costs will ultimately be passed on to the consumer, placing further upwards pressure on the price of a new dwelling or renovation.” Already we’ve seen just how much pressure is being placed on the construction industry, with Probuild and Condev both going into liquidation in recent weeks. In short, costs are going up and the construction industry is buckling under the pressure. The more you delay, the more you will pay. Owners corporations who choose to delay any rectification, maintenance or uplift work on their property may be setting themselves up for a shock later on.
Do you have a strata project that is needing finance?
Regarding funding of any works, the corporation always has three options: to accumulate a Maintenance Fund over time, to have a Special Levy or to Borrow (or a combination of these three methods). It takes time to accumulate moneys in a Maintenance Fund. Special Levies should be a quick solution but will be delayed if there are owners who find the cash flow impost too large. A strata loan is immediate, unsecured and does not involve a mortgage, personal financials or guarantees. What’s the right decision? As with any big decision, it’s important to be informed. If your clients are looking at rectifying defects or considering maintenance or renewal/uplift projects over the next few years, it will be important to discuss with them the implications should they choose to delay the works.
We can help you with the finance you need for your next strata project. Having operated for 20 years, our friendly team have the knowledge and experience to deliver the funds you require.
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No insurance because of our cladding Due to the presence of cladding on our townhouses, our insurance company has declined our renewal and other insurance companies are refusing to insurance. How do we organise insurance? We are a class 1 building of 2 storey with a party wall between the 10 townhouses. We have a fire engineer’s report stating there is 9% ACP cladding on the building. Our owners corporation has told us our insurance company has declined our insurance renewal and other insurance companies are refusing to insurance us as well. How do we organise insurance?
Seek quotes from the wider market. Some insurers will decline to offer quotes if there is cladding at your premises. In such instances, the most important thing to do is seek quotes from the wider market to ensure the new insurer’s quotes are most competitive. If you have a broker, they should be able to assist you with this. Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE
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25
No proof of exclusive use of a courtyard
For many years a unit in our scheme has had exclusive use of a fenced courtyard however, there are no records of the agreement. Can the owners corporation reinstate the courtyard back to common property? For many years a ground floor unit in our scheme has had exclusive use of a fenced courtyard however no one can produce a lease or licence agreement to validate this. The owner does not have a copy and the owners corporation claim their files were destroyed in a flood many years ago and they can’t confirm if there was ever a lease or licence agreement. What happens if the document is lost or destroyed and there is no way of determining what the conditions of the lease or licence agreement were? Can the owners corporation reinstate the courtyard back to common property?
The onus of proof is on the person using the common courtyard. The onus of proof is on the person using the common courtyard. They must prove that the owners corporation resolved by special resolution to grant a licence/lease for the common courtyard. In the absence of such proof, in our view, the owners corporation could take back the area once it successfully obtains an order in VCAT that no lease was granted to the person exclusively using the courtyard. Rochelle Castro | RC & Co Lawyers law@rccolawyers.com READ MORE HERE
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Our Sky-Speed Internet connection is available for new developments and existing buildings. Smart Internet for Strata Managers What if we said we could future-proof your building by delivering the best possible Internet? Your first question would probably be: why is it better? And the answer is: because it's faster – in fact, we're among the fastest rated overall ISPs in Australia. Our wireless network is a stand alone product that provides an alternative option to the NBN, delivering a similarly consistent, reliable and accessible internet connection. Or as we call it, Sky-Speed Internet. We'll deliver an nbn™ compliant, future proof and energy-efficient network to your building – and the best part is, we’re super affordable. You'll add value for your residents, reduce your overheads, and turn your building into a cutting-edge tech hub, well equipped for the Internet of things. You’ll also be able to connect Building Management Systems, Free-to-Air and Paid Television services, CCTV, intercom systems, phone systems and broadband, all to a single network, capable of delivering up to 1Gbps to each endpoint.
Enjoy four industry-leading plans to choose from and get unlimited data and symmetrical speeds
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In an ever-changing market, invest in long-lasting and scalable infrastructure Increase the value of your building Deliver capacity and ready access for BMS, security/CCTV and Wi-Fi Prove more stability, speed, and better performance Gain access to an alternative, purpose-built network Deliver greater choice for residents with super competitive pricing plans Corporate grade-service level agreements for your peace of mind
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Someone is parking in my car spot
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Q
Someone has been parking in my personal car park spaces for over a month. Our Building Manager refuses to assist. Who can help and how can I stop this person from parking in my space?
Someone has been parking in my personal car park spaces for over a month. Our Building Manager will not assist as he states it’s not his job because my car spaces are private property as opposed to visitor parking spaces that are common property. Should the building Manager be assisting me? If this isn’t his job, who can help? What can I do to stop this person from parking in my space?
A
The building manager’s responsibility, powers & function involve common areas only.
Unfortunately, the building manager is technically correct stating that it’s “not his job”, as strata managers should not interfere in private matters. His/her responsibility, powers & function involve common areas only. Although it would have been nice if some direction was provided by your manager. Firstly, you need to determine who is parking in your car space. Is it another owner or a tenant living at the property? These situations can be resolved if both parties are willing to reason and openly discuss the matter together. If the initial discussion/s fail, the manager “could” (although under no obligation) try and reason with the offender, if it’s an owner, on your behalf and see if some resolution can be reached. If the person parking in your space is a tenant, their property manager (real estate agent) needs to be notified that a breach has occurred and the tenant needs to be instructed to remove their vehicle immediately. Alternatively, you may wish to discuss installing a no parking bollard with the committee as a last resort.
A lockable bollard within your parking space will stop anyone parking where they shouldn’t. Then of course there’s the legal option. This can be painfully lengthy, not to mention, costly. Ultimately, you need to decide whether it’s worth the exercise. These situations are never ideal, but open communication is always a good place to start. Wishing you a speedy resolution. Please note that the information contained in this article is not legal advice and should not be relied upon as such. You should obtain legal advice or instructions before you take any action or otherwise rely upon the contents of this article. Guy Garreffa | StrataPoint guy@stratapoint.com.au READ MORE HERE
‘‘A surprising approach to Strata Management’’
Good strata management hinges on regular communication and prompt service. We are a small boutique style management company, keeping it simple and streamlined. Due to the manageable size of our portfolio, communication is prompt and backed up with the necessary service and support. At the end of the day, it is a service industry and reputations are based on the service and support that management companies provide. If you as an owner are currently thinking that you are paying for poor service with little support and communication, why not give us a quick call? You may be pleasantly surprised.
Call 03 8726 9962 29 www.stratapoint.com.au www.stratapoint.com.au
Is water overflow from a communal drain classed as flooding?
Is water ingress due to a communal drainage overflow classed as flooding? Resolving this will likely involve up to four insurers. Is water ingress from communal drainage issues, in this case a faulty sump and pump, flooding? We’ve had issues as a result of stormwater overflow in a combination of water tanks that have overflowed from our next door neighbour. What is this classed as? Water overflow is a reoccurrence and strata won’t cover us. The neighbour issues occurred at the same time. Resolving this will likely involve up to four insurers.
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Unless the water has come from a lake, river, dam, canal, watercourse or other body of water in the exclusion, the flood exclusion isn’t operable. Does this fit the definition of flood? Unless the water has come from a lake, river, dam, canal, watercourse or other body of water in the exclusion, the flood exclusion isn’t operable. Obviously, we don’t know the full circumstances but on face value I would say that this is a claim that does not have the flood claim that is operable. You are going to need a good insurance broker to help you navigate this claim because if the insurer is saying it’s not covered,
you’d want to understand why it’s not covered and know what the exclusions in the policy are that they’re referring to. For a lot of these hypothetical scenarios, without knowing the full details and seeing hydrologist reports that might be 55 pages long, I can only give you a general overview of my thoughts. But obviously, the devil might be in the detail of those reports. Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE
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Burning Questions: Five Years On From Grenfell, What Can Victoria Learn? Five years on, the 2017 Grenfell Tower fire in London has laid bare a disturbing reality affecting many Victorians living in, owning and/or investing into strata buildings, in that the use of combustible materials in exterior cladding poses increased risks and dangers to their lives and livelihoods. In Victoria, it has been fortuitous that thus far, major incidents of fires affecting typically high-rise residential buildings, have not proven fatal, unlike what happened at Grenfell Tower. However, this leaves no room for complacency, given how much work ahead must be done to rectify this issue at scale, and to boost confidence and peace of mind from consumers as to the safety and benefits of living in strata, of which there are many. Flammable Cladding Incidents in Victoria In November 2014, the LaCrosse apartment tower in Docklands was the first of its kind in Australia, occurring as a result of an abandoned cigarette left unextinguished on a balcony, with flames quickly and easily able to scale multiple storeys of aluminium composite panelling (ACP) on the exterior of the building. Reports published by the then-Metropolitan Fire Brigade (MFB) following the fire indicated that the ACP cladding found at LaCrosse did not comply with relevant Australian standards (AS 1530.1-1994); subsequently, the Victorian Building Appeals Board ordered rectification of cladding to begin on the building in early 2017, subject to negotiation.
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Owners of apartments within the LaCrosse complex were later awarded $5.7 million in damages by the builder, LU Simon, in a decision handed down in Victorian Civil and Administrative Tribunal (VCAT). Architects were found not to have adequately remedied defects within the design of the complex, specifically wherein the use of ACP cladding was considerably greater along east and west-facing facades, in breach of contractual obligations, in addition to failures by building surveyors and fire engineers in the approvals process. More recently, a fire at the Neo200 residential tower in Spencer St, Melbourne in early 2019, caused once again by a cigarette on a balcony where flammable cladding was later discovered, affected six storeys, and rendered approximately 31 apartments within the complex uninhabitable. Documentation published by Melbourne City Council later revealed that MFB assessments of the Neo200 building related to cladding risks cited a lack of sprinkler apparatus on balconies, and an increased likelihood of burning debris falling onto the surrounding streets in the event of a fire, with the building deemed as at ‘medium’ risk as of 2016. Subsequently, and controversially, Melbourne City Council’s own assessment of the Neo200 building concluded later in the same year that the “risk of fire spread is low”, effectively overruling the MFB’s position.
How has Victoria responded to flammable cladding?
That leaves 1,385 owners corporations with flammable cladding and no support.
In July 2019, the Andrews Government announced the creation of Cladding Safety Victoria (CSV) as a dedicated agency tasked with reducing the risk associated with combustible cladding on both residential and publicly owned buildings.
What happens next?
In September 2020, the government passed the Cladding Safety Victoria Act 2020, functionally separating CSV from the Victorian Building Authority (VBA) and establishing its sole responsibility over the delivery of rectification support for flammable cladding. CSV’s funding dedicated towards the delivery of rectification works for privately-owned residential buildings over the five-year period from 2019 is approximately $550 million. According to CSV’s 2020-21 annual report, 40 private apartment buildings across Victoria have had rectification completed, compared to 67 publicly owned buildings. On 1 February 2021, the Victorian Government banned flammable cladding, in a world first response to the deadly product. According to CSV estimates, approximately 14,000 private apartment building residents will be protected through the planned removal of over 118,000 square metres of combustible cladding through 2021-22.
The reality is that flammable cladding and the hazard it poses to a great many people living in strata at present, is a by-product of faulty practices and enforcement of standards pertaining to the use of cheaper, lower-quality materials during construction. Accordingly, it will be critical for the Victorian Government, now and into the future, to work towards effectively keeping a proverbial lens focused on building sector reform and standards. We hope an outcome of the 2022 election includes further and sufficient funding for CSV to remove flammable cladding from all class 2 buildings across Victoria. Substantive action now to address cladding will increase consumer confidence in strata living, which by 2050, will only continue to grow in popularity, due to the underlying benefits of cost, sustainability, proximity to transport and amenities, and convenience associated with this lifestyle. Approximately 1 in 4 Victorians would argue that the aforementioned benefits of strata living are priceless – the safety, wellbeing and livelihoods of these Victorians must be thought of in such terms as well.
As of 3 November 2021, over 2200 buildings have been audited of which 815 have been refereed to CSV.
Committee Training for Committee Members
Upcoming Training Dates Thursday 18 August
5:30pm to 8:30pm online
Thursday 20 October
5:30pm to 8:30pm online
Vodcast: Committee Conversations Friday 5 August
12:00pm to 12:30pm online
Friday 2 September
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To book visit www.vic.strata.community/vic-activities
This course is designed and dedicated to the education of Committee Members. It teaches you about the importance of Governance, Roles and Responsibilities, Meetings and Effective Communication. Delivered online, it includes an overview of these areas of responsibility and provides clarity of the OC’s and the Committee’s role, purpose and function. 33
NAT WEBINAR: Sustainable communities - Don't get left behind! Join Alex Smale from The Knight and Nikki Jovicic from LookUpStrata to explore sustainable communities and how we all need to act now to ensure we don't get left behind! Alex will show you how to overcome many of the common roadblocks that strata buildings may face when trying to build more sustainable communities.
28 July 2022 | 10 AM AEST Click HERE to register
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ANTENNAS 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
EDUCATION & TRAINING LookUpStrata
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Your Strata Property
Demystifying the legal complexities of apartment living
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Strata Community Association P: 02 9492 8200 W: https://www.strata.community/ E: admin@strata.community
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Stratabox
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ResVu PTY LTD
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StrataMax
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Strata Vault
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Building and Facilities Manager P: 1800 00 LUNA (5862) W: https://www.luna.management/ E: info@luna.management
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Australian Facilities Management
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Elite Building Managers Australia
Building Manager experts. P: 0420 520 976 W: https://www.elitebma.com/ E: matt@elitebma.com
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BUILDING ENGINEERS & INSPECTORS Solutions in Engineering
Quality Reports On Time, Every Time! P: 1300 136 036 W: https://www.solutionsinengineering.com/ E: enquiry@solutionsinengineering.com
Forte Asset Services
Operational Excellence in Every Building P: 1300 920 752 W: https://www.forteassetservices.com.au/ E: info@forteas.com.au
Sedgwick
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QIA Group
Compliance Made Easy P: 1300 309 201 W: https://www.qiagroup.com.au/ E: info@qiagroup.com.au
Budget Vals
Built For Strata P: 1300 148 150 W: https://www.budgetvals.com.au/ E: reports@budgetvals.com.au
Core Project Consulting
Independent Expertise. We’ve got you covered! P: 02 8961 3250 W: https://core.engineering/ E: admin@core.engineering
HFM Asset Management Pty Ltd Leaders in Building Efficiency P: 1300 021 420 W: https://www.hfmassets.com.au/ E: info@hfmassets.com.au
GQS
Quantity Surveyors & Building Consultants P: 1300 290 235 W: https://gqs.com.au/ E: info@gqs.com.au
Independent Inspections
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Voltin
10,000 Safer Cities P: 1800 865 846 W: https://www.voltin.com.au/ E: accounts@voltin.com.au
Mabi Services
Valuations, Maintenance Plans, Asbestos P: 1300 762 295 W: https://www.mabi.com.au/ E: info@mabi.com.au
Quality Building Management
keeping your buildings legally compliant and safe P: 1300 880 466 W: https://qbm.com.au/ E: qbm@qbm.com.au
Roscon
Property services & facilities management P: 1800 767 266 W: https://www.roscon.com.au/ E: info@roscon.com
Essential Services Compliance
Essential safety measures reporting & fire safety P: 03 9816 4840 W: https://essentialservicescompliance.com.au/ E: admin@escompliance.com.au
Leary & Partners: quantity surveying services Quantity Surveying Services Since 1977 P: 1800 808 991 W: https://www.leary.com.au/index.php/ E: enquiries@leary.com.au
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Australian parcel, mail, and refrigerated lockers P: 03 9982 4462 W: https://groundfloordelivery.com/ E: ask@groundfloordelivery.com
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INSURANCE
STRATA LAWYERS
Strata Insurance Solutions
Bugden Allen Graham Lawyers
Whitbread Insurance Brokers
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QUS Pty Ltd
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Strata Community Insurance
Holman Webb Lawyers
Protecting owner assets is who we are. P: 1300 554 165 W: https://www.stratainsurancesolutions.com.au/ E: info@stratainsurancesolutions.com.au Empower Your Vision P: 1300 424 627 W: https://www.whitbread.com.au/ E: info@whitbread.com.au
Strata Insurance Underwriting Agency P: 1300 814 011 W: https://www.qus.com.au/ E: qus@qus.com.au Specialist Strata Insurance Underwriting Agency P: 1800 022 444 W: https://www.chu.com.au/ E: info_nsw@chu.com.au 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
STRATA REPORTS BIV Reports
Specialist in Strata Compliance Reports P: 1300 107 280 W: https://www.biv.com.au/ E: biv@biv.com.au
Covid19 Plans
Covid19 Safety Plans for Strata P: 1300 828 344 W: https://covid19plans.com.au/ E: plans@covidplans.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
Specialising in property development & strata law P: 02 9199 1055 W: http://www.bugdenallenlawyers.com.au/ E: info@bagl.com.au Effective, resource, clear. P: 1300 072 626 W: https://www.rccolawyers.com/ E: assistant@rccolawyers.com Experts in Owners Corporations Law P: 03 8600 9314 W: https://tlfc.com.au/expertise/owners-corporation/ E: ocenquiry@tlfc.com.au Know. Act. Resolve. P: 03 9674 0474 W: https://gracelawyers.com.au/ E: enquiries@gracelawyers.com.au Body Corporate and Strata Dispute Experts P: 61 732 350 100 W: https://www.holmanwebb.com.au/ E: icontact@holmanwebb.com.au
STRATA LOAN PROFESSIONALS StrataLoans
The Experts in Strata Finance P: 1300 785 045 W: https://www.strata-loans.com/ E: info@strata-loans.com
Lannock Strata Finance
The Leading Strata Finance Specialist P: 1300 851 585 W: https://lannock.com.au/ E: strata@lannock.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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STRATA MANAGEMENT The Knight
Strong family values & real hands-on experience P: 03 9509 3144 W: https://www.theknight.com.au/ E: lisa@theknight.com.au
Body Corporate Victoria
Specialist provider of strata management in Melbourne
P: 03 9807 2211 W: https://bodycorpvic.com.au/ E: info@bodycorpvic.com.au
CLEANING
Stratabase Holdings P/L
Ai Odour Control Systems
Integrity & excellence in Owner’s Corp Management P: 0412247589 W: https://stratabasemgt.com/ E: ingrid@stratabasemgt.com
Actualise your facilities’ potential P: 1300 728 760 W: https://www.aiodourcontrolsystems.com.au/ E: info@aiodourcontrolsystems.com.au
Strata Management Consultants
Clean As You Go
We Help Committees to Change OC Companies P: 1300 917 848 W: https://www.strataconsultants.com.au/ E: office@strataconsultants.com.au
Leaders in Caretaking and Facility Maintenance P: 1300 525 651 W: http://www.cleanasyougo.com.au/ E: info@cleanasyougo.com.au
Civium Communities
BCCS Cleaning Services
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StrataPoint Owners Corp.
“A surprising approach to Strata Management” P: 03 8726 9962 W: https://stratapoint.com.au/ E: Hello@stratapoint.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
SOCM
Owners Corporation Management Melbourne P: 03 9495 0005 W: https://socm.com.au/ E: info@socm.com.au
Network Pacific Strata Management
Supporting our strata communities P: 07 5609 8677 W: www.networkpacificstratamanagement.com.au/ E: info@networkpacific.com.au
Strata Cleaning Specialists P: 1300 951 065 W: https://bccs.com.au/ E: info@bccs.com.au
DEFECT RESTORATION 24:seven Maintenance Solutions
Comprehensive building maintenance services P: +61 3 9008 5423 W: https://24sevenms.com.au/ E: admin@24sevenms.com.au
ACCOUNTANTS Tinworth & Co
Chartered Accountant & Strata Auditors P: 0499 025 069 W: https://www.tinworthaccountants.com.au/ E: caren.chen@tinworth.com
PLUMBING The Drain Man
Blocked Drain? The Drain Man can help P: 1800 843 372 W:https://www.thedrainman.com.au/ E: enquiries@thedrainman.com.au
Bright & Duggan
Strata Professionals P: 0299027100 W: https://bright-duggan.com.au/ E: customercare@bright-duggan.com.au
ELECTRICAL
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ELECTRICAL
PAINTING
Energy On Pty Ltd
Higgins Coatings Pty Ltd
ENM Solutions
Dulux Property Services
Providing utility network solutions P: 1300 323 263 W: https://www.energyon.com.au/ E: EnergyServices@EnergyOn.com.au Providing Solutions for Embedded Networks P: 1300 000 366 W: https://www.enmsolutions.com.au/ E: info@ENMSolutions.com.au
FIRE SERVICES Linkfire Pty Ltd
Your essential safety partner P: 1300 323 263 W: https://www.linkfrire.com.au/ E: sales@linkfire.com.au
LIFTS & ELEVATORS Innovative Lift Consulting Pty Ltd
Australia’s Vertical Transportation Consultants P: 0417 784 245 W: https://www.ilcpl.com.au/ E: bfulcher@ilcpl.com.au
CLOTHES LINES Lifestyle Clotheslines
Clothesline and washing line supplier & installer P: 1300 798 779 W: https://www.lifestyleclotheslines.com.au/ E: admin@lifestyleclotheslines.com.au
SUSTAINABILITY & ENERGY The Green Guys Group
Australia’s Leading Energy Saving Partner W: https://www.greenguys.com.au/ E: sean@greenguys.com.au
Arena Energy Consulting Pty Ltd
Independent Embedded Network Consulting Services P: 0452 411 247 W: https://www.arenaenergyconsulting.com.au/ E: joseph@arenaenergyconsulting.com.au
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Specialist painters in the strata industry P: 1300 HIGGINS W: https://www.higgins.com.au/ E: info@higgins.com.au Total Building Maintenance & Remedial Solutions P: 0434 834 799 W: https://www.duluxconstructionsolutions.com.au/ E: propertyservice@dulux.com.au
Avello Group
Painting Services for Owners Corp properties P: 1300 283 556 W: https://avello.com.au/ E: estimating@avello.com.au
WATERPROOFING The Superseal Group
Trusted Experts in all aspects of Waterproofing P: 07 5519 4916 W: https://supersealgroup.com/ E: admin@supersealgroup.com
RECRUITMENT SERVICES sharonbennie – Property Recruitment
Matching top talent with incredible businesses P: 0413 381 381 W: https://www.sharonbennie.com.au/ E: sb@sharonbennie.com.au
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Ki Creative Design
Purposeful Design Solutions P: 0451 541 066 E: kiara.mcilroy@gmail.com
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INTERNET & TELECOMMUNICATIONS Spirit Technology Solutions Do IT with Spirit P: 1800 774 748 W: https://www.spirit.com.au/ E: developers@spirit.com.au
CONSULTING Strata Solve
Untangling strata problems P: 0419 805 898 W: https://stratasolve.com.au/ E: chris@stratasolve.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
AUDITORS Property Audit & Assurance
Strata & Managed Property Auditing Specialists P: 03 9525 3777 W: http://www.lowelippmann.com.au/ E: paa@llca.com.au
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