The VIC Strata Magazine | June 2023

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The VIC STRATA MAGAZINE

JUNE 2023

Lack of slope causing pooling on a balcony

Page 6 | Sedgwick

Do you need 75% or 50% for EV infrastructure investment?

Page 18 | The Knight

Can lot liability be changed to ensure fair fees for all owners?

Page 20 | Tisher Liner FC Law

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.

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.

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

Lannock

16

James McIntosh, Sedgwick

18 Do you need 75% or 50% for EV infrastructure investment?

Alex Smale, The Knight

20 Can lot liability be changed to ensure fair fees for all owners?

Phillip Leaman, Tisher Liner FC Law

Jake Sharp, MiMOR

22 Who pays insurance excess for termite damage in a common wall?

Tyrone Shandiman, Strata Insurance Solutions

24 Paying twice for remediation work

Anton Silove, MBCM Strata Specialists

Tyrone

26 Does each electronic door lock need a backup power source in case of a power failure?

Jake Sharp, MiMOR

28 Do lots that utilise the most common property pay higher levies?

Ingrid Goldenfein, Longview Owners Corporation

30 The VIC LookUpStrata Directory

Ingrid

Thanks

pay later.
4 Wait now,
Strata Finance
a balcony
6 Lack of slope causing pooling on
in
8 Accessing elderly residents’ apartments
an emergency
with
10 If a leak damages a tenant’s property, do they deal
their landlord or the committee?
Shandiman, Strata Insurance Solutions
corporation
12 Can the committee terminate our owners
manager?
Maintaining Common Property –What needs to be done?
Group
Phillip Leaman, Tisher Liner FC Law 14
QIA
Committee voting and conflict of interest
Goldenfein, Longview Owners Corporation
to our sponsors Contents

Wait now, pay later.

There has been a lot of discussion about record increases in the price of real estate recently 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.”

“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,”

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.

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).

This article is brought to you by Lannock Strata Finance.

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.

“In short, costs are going up and the construction industry is buckling under the pressure. ”

A strata loan is immediate, unsecured and does not involve a mortgage, personal financials or guarantees.

So, 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.

Do you have a strata project that is needing finance?

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.

Australian Credit Licence 412905

Lack of slope causing pooling on a balcony

Can a step down and membrane compensate for lack of slope causing pooling on a balcony?

When you are addressing an issue in relation to a balcony, a sliding door or a cavity, we don’t recommend dealing with issues in isolation.

An adequate step down and membrane system will prevent water from going laterally into the sole occupancy unit.

However, if you’ve got substrate or fall (slope) issues in your actual balcony itself, that potentially creates its own issues, for example, a slip hazard. If you’ve got water that is never receding and pooling in an area, you’ve got a loss of amenity. You can’t go out onto the balcony in your socks in dry weather and traverse that area.

It also has the ability to promote efflorescence leaching out of the minerals that are contained in the bedding material and the grout joints. You’re going to have unsightly efflorescence coming

around the grout joints in your tiles. If it’s left for an extended period of time, this has the ability to break down the bond that exists between the adhesive of your tiles, your bedding material, and of course, your membrane as well. A bedding system is intended to drain and not remain saturated, if the substrate or surface of the floor is not adequately drained there is a high risk of degradation of the system.

The answer to the question is probably yes and no. It’s not ideal to retain a flooring system that features a lack of fall however if it isn’t resulting in a loss of amenity or water ingress below or beside, this is often not resolved by building owners out of cost vs necessity considerations. When you are addressing an issue in relation to a balcony, a sliding door or a cavity, we don’t recommend dealing with issues in isolation. Our recommendation is to deal with it all in a cohesive way and make sure everything is compatible and compliant.

READ MORE HERE 6 www.lookupstrata.com.au
BUILDING CONSULTANCY •Defect reports & forensic engineering • Scope of works • Dilapidation & risk sur veys • Dispute mediation & expert witness •Contractor procurement & cost validation •Construction management •Capital works funds/maintenance plans •Digital capability REPAIR SOLUTIONS • Emergency make safe • Fire water damage restoration • Leak detection • Contamination response • Building repairs • Cost validation services • Digital capability Supporting owners and strata managers with tailored remediation and repair solutions 1300 735 720 sales@au.sedgwick.com 1300 654 599 sales@au.sedgwick.com

Accessing elderly residents’ apartments in an emergency

Is there a system that solves the problem of access to elderly residents’ apartments in an emergency?

Emergency services use a lockbox system for a few of the older residents in our large inner city building. The use of this lockbox has always been a concern of mine. Is there a system that solves the problem of access to elderly residents’ apartments in an emergency? If so, how?

This can be arranged with a digital key safe.

There are a couple of ways you can do this.

The strata manager can grant access to the emergency service, ambulance, etc. When the emergency services get to the building, they’ll be granted access, or they’ll have to call the head office to be let into the building.

Another way to organise this is with a digital key safe. If five apartments require emergency access and don’t have digital apartment doors, the building can install a digital key safe for those apartments. The key safe would only be for the use of emergency services for access into those lots.

Emergency services would get to the building, access the digital key safe and gain access to the elderly residents’ apartments.

A third option would be to place a digital door lock on the apartments. Emergency services can be authorised access to those apartment doors.

8 www.lookupstrata.com.au
READ MORE HERE

If a leak damages a tenant’s property, do they deal with their landlord or the committee?

A tenant sustained damage to their car from a leak in the car park. Should they contact the lot owner or the committee?

A tenant in our apartment building sustained damage to the paintwork on their car from a leak into the lot’s car park. The parking space is on the lot’s title.

The tenant contacted our committee and strata manager to seek compensation for the minor damage. Is our owners corporation committee obligated to engage directly with the tenant, or should we refer them to the lot owner?

If we follow this process, the lot owner will be aware of the issue. The owner can then deal with our committee if there is any claim on the owners corporation.

The lot owner is not a party to this dispute.

The dispute is one between the owners corporation and tenant. The lot owner is not a party to this dispute (even though they rent their lot to the tenant).

Car park leaks frequently result in claims under the public liability section of a policy, which specifically covers incidents involving injury or property damage to others which the owners corporation legally becomes responsible for.

10 www.lookupstrata.com.au

The lot owner’s involvement will probably not benefit the process of managing this issue. If the owners corporation believes the costs for the claim are unreasonable, they can get an alternate quote, or if the claim amount is small, they can choose to pay the settlement without making an insurance claim.

READ MORE HERE

Can the committee terminate our owners corporation manager?

Can the committee make the decision to terminate our owners corporation manager or do we need an AGM

We’d like to change our owners corporation manager. Can the committee make the decision to change as long as there isn’t a signed current delegation under section 11 of the Owners Corporation Act? If so, can the committee terminate the manager with 28 days’ notice at any time or do we have to hold an AGM? Does an ordinary resolution ballot need to take place?

Does an owners corporation manager have the right to object to the termination by the committee and proceed to ask each owner for their vote and provide their signature (pseudo ballot)?

A committee has the power to terminate an owners corporation manager.

Provided that the delegation of authority to the committee is not restricted to prevent the termination and appointment of a manager, a committee has the power to terminate a manager under section 119 of the Owners Corporations Act.

No annual general meeting or special general meeting is required. However, if there is a contract of appointment signed by the owners corporation, the owners corporation may be in breach of the contract of appointment if the contract was not terminated in accordance with its terms (i.e. midway through a term for convenience rather than a breach).

It is important that legal advice is obtained so the owners corporation can assess the risks of termination and the potential for a claim for breach of contract. Some owners corporations restrict the appointment and termination of a manager under section 82 of the Act, in which case a manager can only be terminated at an AGM or SGM.

A manager has no right to call a ballot unless authorised to do so under section 83 of the Act.

12 www.lookupstrata.com.au
MORE HERE
READ

E x pertOwnersCorporationsLawyers

Tisher Liner FC Law provides quality and cost effective legal services to Owners Corporations and their Managers across Victoria and the ACT

Our highly experienced team provide quality assistance to owners corporations, committees, lot owners and managers of owners corporations in a wide variety of legal matters including:

• General advice and governance;

• Interpretation of plans of subdivision, common and private lot boundaries;

• Levy recovery;

• Domestical building dispute claims and Water Act claims;

• Adverse possession and compulsory acquisitions;

To see a list of matters we've been successful in or to access our OC information resources please visit our website or sign up to our blog.

• Easement and amendments to plans of subdivisions;

• Creation and enforcement of owners corporation rules;

• Preparing leases and licences over common property;

• Advice on repairs and maintenance and application of the Benefit Principle; and

• Prosecuting and defending claims made at VCAT by Owners Corporations and Lot owners

Phillip Leaman P h i l l i p L e a m a n L L B ( H O N S ) , B C O M P r i n c i p a l L a w y e r p l e a m a n @ t l f c . c o m . a u
Level 2,333 Queen Street, el ourne, Victoria, 3000 I +61386009333 ocenquiry@tlfc com au I tlfc com au

Maintaining Common Property – What needs to be done?

The minute a property is completed each of the elements that make it up begin to wear out. As a building ages, the Owners will be called upon to maintain it That maintenance will come at a cost and no matter what, the cost will be met by the Owners. The good news is, Owners do have the ability manage and control their maintenance costs.

What makes up the Common Property?

Refer to your Strata Plan, walk around the Common Property and take note of the various common areas, capital items, services and facilities

How to maintain the Common Property

Once identified, quantify the number or amount of the elements that make up your Common Property

When to maintain the Common Property

Establish an approximate age or condition of the elements that make up the Common Property and Determine a replacement or maintenance interval

Are there any risks or consequences?

There are very real risks associated with maintaining the Common Property, or not maintaining it as the case may be. Owners, residents, or visitors can be hurt by a loose handrail, a crack in the path, a faulty safety switch. Painting becomes a lot more expensive the longer it is left, the consequence of which is higher levies.

Choices

Owners can assess the Common Property themselves or contract someone else to do it. Self-assessment can be daunting and very time consuming because you don’t know what to look for or have the tools and systems to record and document what you need in a meaningful, compliant way. Contracting the work out can result in lower risk and more meaningful documentation, but it is important that Owners remain engaged in the process.

Owner Engagement

When you engage a Contractor to inspect and report on your strata building, their inspection will incorporate all elements of the Common Property that are accessible and visible to them on the day of the inspection. The qualified and experienced inspector will use all available resources to catalogue the building, but the building can’t tell them when it was last painted or that the balcony in unit 3 leaks, or the gutters are about to be replaced. Engaged Owner are able to provide necessary history on the building and where willing can attend the inspection to download their knowledge to the Inspector The additional information will give Owners the best of both worlds, a baseline level of information about their Common Property maintenance requirements, based on an onsite inspection by an experienced professional, informed by additional historical information and relevant current issues provided by the site contact.

Choose the right Contractor

QIA Group has been providing compliance reports to the Strata Industry since 2005 We always attend site and understand the value of Owner engagement during the inspection process. Our experienced inspectors are local to Victoria We take samples when we carry out an asbestos inspection, so Owners know whether they do or don’t have asbestos containing materials in their building. We offer ongoing support to Strata Companies after the report is compiled and respond to Owner feedback in a timely and substantive manner. CONTACT US NOW FOR FURTHER INFORMATION OR CHECK US OUT HERE: QIA Services

Maintenance Plans

Common Property Safety Reports

Building Maintenance Assessments

Fire Safety Audits

Fire Evacuation Training

Fire Evacuation Plans & Diagrams

Insurance Valuations

Asbestos Inspections & Reports

COMPLIANCE REPORTS THAT ARE EASY TO UNDERSTAND Compliance Made Easy

Strata compliance is complex but it doesn’t have to be confusing. QIA Group was started by a Strata Manager with the aim of simplifying the compliance process, ensuring Property Owners and Strata Managers understand their reports and achieve their goals.

Who We Are

We are a team of industry professionals with expertise across property development, facilities management, inspections, maintenance planning, insurance valuations, fire, safety and risk assessment.

Our key staff have many years experience working in the Strata industry, as well as first-hand experience as owners, builders, committee members of strata properties, so we understand strata as owners, managers and industry professionals.

Saving You Time & Money

By simplifying the compliance process, we can help reduce the time, hassle and cost of complying with strata regulations, and by being in compliance, we can help you maximise the value of your property, save money and avoid unexpected levies.

Quick Facts

• 25 Years Experience

• Founded by a Strata Manager

• Experience in small and large lots, 2 - 7500

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Pricing Policy

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See Price Lists for Service Guarantees and Pricing Policy details

1300 309 201 info@qiagroup.com.au www.qiagroup.com.au QIA Group Pty Ltd ABN 27 116 106 453

Committee voting and conflict of interest

16 www.lookupstrata.com.au
CLICK HERE TO REGISTER NAT WEBINAR 13 July | 10 AM AEST Balancing Maintenance Requirements and Future Upgrades

What percentage special resolution do you need for EV infrastructure investment in Victoria? Is it 75% or 50%?

voting in favour if a ballot or poll is taken. In any other case, it is passed by 75% of the total votes of all lots voting in favour.

75% of all owners for a final resolution, or 50% of all owners for an interim resolution.

A special resolution is required:

• to obtain a loan that exceeds the amount of the current annual fees of the owners corporation

• to raise a levy that is more than twice the current annual fees

• for a significant alteration to common property that is not in the maintenance plan and is not an immediate threat to safety or will prevent significant damage.

As installing EV infrastructure is likely to fall under these headings, a special resolution is required.

A special resolution is passed as a final resolution by 75% of the total lot entitlement

It’s important to note that a special resolution can also pass as an interim special resolution if at least 50% vote in favour and no more than 25% vote against a resolution.

An interim special resolution can be taken as a special resolution once:

• A notice is sent to all owners (within 14 days of the meeting or the ballot close date) and

• Within 29 days of the meeting or ballot close date, no petition amounting to 25% of votes against the resolution has been received.

18 www.lookupstrata.com.au
Do you need 75% or 50% for EV infrastructure investment?
READ MORE HERE
Enquire today > Changing management, made easy. Helping build strong, supported communities in apartment buildings since 1995.

Can lot liability be changed to ensure fair fees for all owners?

Our OC fees are very high. In our large building, the builder holds lots with low liability and entitlement, and uses proxies to help control decision making. Can lot liability be changed to ensure fees are fair for all owners?

Our OC fees are very high for our Victorian apartment. After reviewing the plan of subdivision, we’ve discovered:

• 38% of the 290 lots have liability and entitlement of 1 or 2.

• 10% of the lots have a low liability and entitlement, even if their area is comparable to other lots with double entitlement and liability.

• The company that built our building seems to own the lots with the low liability and entitlements.

• At the AGM, employees hold proxies for the low liability and entitlement lots. Unless many owners attend the AGM, this company will use their uneven advantage to push through decisions benefiting them.

Can the owners corporation lot liability be changed to ensure each lot liability is fair for all owners?

The application has specified statutory criteria to be reviewed and complied with in order for the Tribunal to have jurisdiction to hear the matter.

Since 1 December 2021, Section 27F of the Subdivision Act provides that lot liability in the plan must be allocated equally between the lots unless there is:

1. a substantial difference in size between the lots (based on the size of the lot and the proportion that size bears to the total size area of the lots); or

2. different lots have a bearing on the consumption or use of common utilities or the cost of maintaining the common property; or

3. the number of occupiers in each lot has a greater bearing on the consumption or use of the common utilities or the cost of maintaining the common property than the size of the lot (based on number of bedrooms in a lot).

A surveyor would need to make an assessment as to whether there is any issue with the lot liability and if so, the factors in Section 34D would need to be considered.

Applications under Section 34D can be difficult and time consuming. It is important to obtain legal advice on the specific circumstances.

Lot liabilities can only be changed through a unanimous resolution of the lot owners or pursuant to an application to the Victorian Civil and Administrative Tribunal under Section 34D of the Subdivision Act.

20 www.lookupstrata.com.au
Applications to change lot liabilities can be difficult and time consuming. It is important to obtain legal advice on the specific circumstances.
READ MORE HERE
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Who pays insurance excess for termite damage in a common wall?

We recently found inactive termite damage in a common property external wall. We provided an invoice for our costs, but the owners corporation says we need to pay any insurance excess. Is this correct?

We recently found inactive termite damage in an external wall. A committee member advised us to contact the owners corporation and keep invoices for the urgent work.

1. The owners corporation denied the external wall was common property despite owners corporation members checking plans and clearly saying it was. Eventually, they agreed.

2. We provided an itemised invoice for our costs to the owners corporation. They say we need to pay any insurance excess.

Is termite damage in the external common property walls covered by the owners corporation? If so, should the owners corporation also be responsible for the excess?

For events that are not claimable, the property owner is responsible for the costs associated with the maintenance of that property.

Termite damage is an exclusion that applies to all strata policies that I am aware of. The excess would only ever be payable in a claim where the event was not excluded.

For events that are not claimable, the property owner is responsible for the costs associated with maintenance of that property.

In the case of an external wall, it is generally common property (unless the plans of the building provide otherwise) and, therefore, would be the owners corporation’s responsibility to maintain.

If the event were considered a claim, then the owners corporation would be liable for the excess if it was deemed common property

22 www.lookupstrata.com.au
READ MORE HERE

Paying twice for remediation work

Will I be required to pay the special levy for cladding leak remediation even though I have already spent $7000 to fix a leak in my apartment’s exterior wall out of my pocket?

I have already spent $7000 to repair a leak in the exterior wall of my apartment, repaired by a tradesperson from inside my unit. The owners corporation plans to collect a special levy to address cladding leaks on the building’s exterior, with a special resolution meeting scheduled for next month. Since I have already covered the cost of fixing the leak in my unit, am I required to contribute to the special levy? In other words, will I be expected to pay twice for the remediation work I have already taken care of out of my pocket?

Carrying out repairs to the common property is an owners corporation responsibility.

The location of the boundaries, as shown on the plan of subdivision, will determine whether the works were to private or common property. Also, the layout of the building would help to determine how the benefit principle

should/could be applied. Although I need more information for a definitive answer, I have provided some general information that might assist.

How did you keep the owners corporation in the loop, and what agreements were made?

Carrying out repairs to the common property is an owners corporation responsibility. If the building walls are common and the cladding system providing waterproofing requires repair, the cost are usually split by lot liability as the collective owners corporation all benefits from having a water-tight building

If the work you have done reduced the repair work by the owners corporation, you could argue that you should be credited the cost savings. A sympathetic owners corporation may agree. However, these complicated matters are often not that clear-cut.

Was the work you carried out absolutely necessary at that time and could not wait for the owners corporation to carry out the full repairs? If so, what evidence do you have to support this view? Was there any agreement requested of the owners corporation? If so, did they provide a reasonable response?

24 www.lookupstrata.com.au

The answer to these questions will help to ascertain whether the owners corporation failed in its duty to repair and maintain the common property and you perhaps had no option but to have repairs done to protect your property and mitigate against other possible costs and damages. The answer to that might assist in working out if none, some, or all of your costs should be reimbursed. The owners corporation might argue you had other options available and that the $7000 need not have been spent and might not reduce the overall cost.

Professional people with good building knowledge could probably work through this and come to a fair assessment of what if any, costs should be reimbursed. Perhaps you and the owner’s corporation could agree to engage an independent building expert to make a determination and both parties agree to their findings. Unfortunately, their costs would need to be shared too and could be a few thousand dollars. You might prefer a negotiated settlement.

The complexities of such matters mean that they often end up in VCAT, which is costly and time-consuming. I suggest trying to negotiate a fair and reasonable settlement.

Please note that this is intended to assist with a practical way forward and is not legal advice.

READ MORE HERE

Does each electronic door lock need a backup power source in case of a power failure?

26 www.lookupstrata.com.au

Our building is considering installing electronic locks on all doors. What happens when the power goes out? Will each electronic door lock need a backup power source?

If battery operated door handles have a code, fingerprint or fob, these WILL continue to work even in a power outage.

If doors are hard wired and the power goes out, no doors will work.

However, if a system is hard wired to, say, the building entrance door or garage door, and there is a power outage, the doors would only work if there is a backup power battery. Some buildings have backup power batteries that last a few hours or longer. If this is the case, the system will continue to work as long as the backup power battery lasts.

If a building or apartment door uses a battery operated door handle controlled by a mobile phone, the doors will stop working during a power outage as these doors rely on wifi. Wifi is generally connected to the power and, therefore, would not operate during a power failure.

If the battery operated door handles have a code, fingerprint or fob, these WILL continue to work even in a power outage.

To recap:

1. Hard wired doors would not work in a power outage.

2. Doors with a backup battery will work for as long as the backup power battery lasts.

3. Doors that use batteries to operate the door handles and use their mobile phone to open and rely on wifi will not work if there is a power outage as the wifi replies on power unless the power has a backup battery connected.

4. Doors that use batteries to operate the door handles will continue to work if they can be opened via a pin code, fingerprint or fob. A power outage would not affect these doors.

READ MORE HERE

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.

www.stratapoint.com.au
Call 03 8726 9962
www.stratapoint.com.au
‘‘A surprising approach to Strata Management’’

Do lots that utilise the most common property pay higher levies?

I’d like to buy a strata lot. How are levies calculated? Do lots that utilise the most common property pay the highest levies?

I am looking a purchasing a lot in a Victorian owners corporation. The report states the lot has the highest liability and highest entitlement.

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I’ve never been involved with an owners corporation and assumed the lots that utilised the most common property features would pay higher levies. We don’t need to access the common property to get to the lot.

The remaining lots do require the common property to access their properties. Why are this lot’s levies so high?

The owners corporation certificate states:

“The current annual fees for the lot are $………. administration fees only and are for the period 1/10/22- 30/09/23, payable in quarterly instalments.”

What are administration fees? Do the lot’s levies contribute to the common area upkeep, maintenance and insurance or not?

The basis of the liability and entitlement figures may relate to lot market value, square footage of the lot or in a just and fair manner. They may also relate to the amount of common property services for that lot.

It is important to understand the fundamental facets of owners corporation.

The units of liability and entitlement are set when the plan of subdivision is drafted. They relate to the apportionment of costs (units of liability) and voting rights (units of entitlement).

The basis of these figures may be determined by lot market value, square footage of the lot or in a just and fair manner. They may also relate to the amount of common property services for that lot.

The operating account (where expenses are recorded) is the ‘administration fund’. At each AGM, members approve the administration fund budget.

The budget and units of liability determine the amount of levies a member will pay for the administration fund.

The administration fund budget may include operating costs such as the service of the lift/s, caretaking, essential safety measures, inspections, centralised gas, common power, strata insurance etc.

The amount, frequency, arrears and date paid to are all noted in the section 151 certificate –which must be in the Contract of Sale.

Then there may be a ‘maintenance fund’ with its separate budget and levies. The term ‘maintenance fund’ can sometimes be confusing. It is not for repairs and maintenance but usually more long term capital expenses such as roof replacement, lift replacement etc.

READ MORE HERE

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

The Independent Voice of Strata Owners

W: https://ocn.org.au/

E: enquiries@ocn.org.au

Your Strata Property

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

Australian Facilities Management

Integrated facilities management services & solutions

P: 03 9816 4722

W:https://www.australianfacilitiesmanagement.com.au/

E: info@australianfacilitiesmanagement.com.au

Elite Building Managers Australia

Building Manager experts.

P: 0420 520 976

W: https://www.elitebma.com/

E: matt@elitebma.com

RFM Facility Management Pty Ltd

Strata and Specialist Cleaners

P: 1300 402 524

W: https://www.rfmfacilitymanagement.com.au/

E: nathan@rfmfacilitymanagement.com.au

Rise Facilities Facilities and Building Management Solved.

W: https://www.risefacilities.com.au/

E: service@risefacilities.com.au

Mimor

Connecting People – Creating Communities

P: 0414 228 644

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

ResVu

Customer Service Software for Strata

P: 08 7477 8991

W: https://resvu.com.au/

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: http://www.stratavaults.com/

E: team@thestratavault.com

Urbanise

Automate your workload to increase efficiency.

P: 1300 832 852

W: https://www.urbanise.com/

E: marketing@urbanise.com

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

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SOFTWARE ANTENNAS

BUILDING ENGINEERS & INSPECTORS BUILDING ENGINEERS & INSPECTORS

Sedgwick

Building Consultancy Division & Repair Solutions

W: https://www.sedgwick.com/solutions/global/au

E: sales@au.sedgwick.com

QIA Group

Compliance Made Easy

P: 1300 309 201

W: https://www.qiagroup.com.au/

E: info@qiagroup.com.au

BIV Reports

Specialist in Strata Compliance Reports

P: 1300 107 280

W: https://www.biv.com.au/

E: biv@biv.com.au

GQS

Quantity Surveyors & Building Consultants

P: 1300 290 235

W: https://gqs.com.au/

E: info@gqs.com.au

Roscon

Property services & facilities management

P: 1800 767 266

W: https://www.roscon.com.au/

E: info@roscon.com

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

Fire | Electrical | HVAC

P: 1300 920 752

W: https://www.forteassetservices.com.au/

E: info@forteas.com.au

Budget Vals

Built For Strata

P: 1300 148 150

W: https://www.budgetvals.com.au/

E: reports@budgetvals.com.au

HFM Asset Management Pty Ltd

Leaders in Building Efficiency

P: 1300 021 420

W: https://www.hfmassets.com.au/

E: info@hfmassets.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

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

CORE Consulting Engineers

Delivering 360° engineering solutions for strata

P: 02 8961 3250

W: https://core.engineering/

E: admin@core.engineering

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

ACCOUNTANTS

Tinworth & Co

Chartered Accountant & Strata Auditors

P: 0499 025 069

W: https://www.tinworthaccountants.com.au/

E: caren.chen@tinworth.com

Matthew Faulkner Accountancy

Strata Auditing specialists

P: 0438 116 374

W: https://www.mattfaulkner.accountants/

E: matt@mattfaulkner.accountants

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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

P: 1800 022 444

W: https://www.chu.com.au/

E: info_nsw@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

STRATA REPORTS

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

Rawlinsons

Calculated Confidence

P: 08 9424 5800

W: https://www.rawlinsonswa.com.au/

E: info@rawlinsonswa.com.au

STRATA LAWYERS

Tisher Liner FC Law Pty Ltd

Experts in Owners Corporations Law

P: 03 8600 9314

W: https://tlfc.com.au/expertise/owners-corporation/

E: ocenquiry@tlfc.com.au

Bastion Legal

Experts in plumbers insurance law

P: 03 9098 8706

W: https://bastionlegal.com.au/

E: info@bastionlegal.com.au

RC & Co Lawyers

Effective, resource, clear.

P: 1300 072 626

W: https://www.rccolawyers.com/

E: assistant@rccolawyers.com

Douglas Cheveralls Lawyers

The Go-To Strata Lawyers

P: 08 9380 9288

W: https://www.dclawyers.com.au/

E: office@dclawyers.com.au

Bugden Allen Graham Lawyers

Specialising in property development & strata law

P: 02 9199 1055

W: http://www.bugdenallenlawyers.com.au/

E: info@bagl.com.au

Holman Webb Lawyers

Body Corporate and Strata Dispute Experts

P: 61 732 350 100

W: https://www.holmanwebb.com.au/

E: icontact@holmanwebb.com.au

Grace Lawyers

Know. Act. Resolve.

P: 03 9674 0474

W: https://gracelawyers.com.au/

E: enquiries@gracelawyers.com.au

Aitken Partners

Law firm with a dedicated OC team

P: 03 8600 6000

W: https://www.aitken.com.au/

E: dandronaco@aitken.com.au

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PRINT YOUR DIRECTORY HERE

STRATA MANAGEMENT

The Knight

Strong family values & real hands-on experience

P: 03 9509 3144

W: https://www.theknight.com.au/

E: newbusiness@theknight.com.au

StrataPoint Owners Corp.

“A surprising approach to Strata Management”

P: 03 8726 9962

W: https://stratapoint.com.au/

E: Hello@stratapoint.com.au

Strata Management Consultants

We Help Committees to Change OC Companies

P: 1300 917 848

W: https://www.strataconsultants.com.au/

E: office@strataconsultants.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

Stratabase Holdings P/L

Integrity & excellence in Owner’s Corp Management

P: 0412247589

W: https://stratabasemgt.com/

E: ingrid@stratabasemgt.com

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

Bright & Duggan

Strata Professionals

P: 0299027100

W: https://bright-duggan.com.au/

E: customercare@bright-duggan.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

Engine Property Group

Your dedicated OC managers, thinkers, and solvers

P: 03 9235 9900

W: https://www.enginepropertygroup.com.au/

E: reception@enginepropertygroup.com.au

CLEANING / CLEAN AIR

Actualised Industries

A breath of fresh air

P: 1300 728 760

W: https://www.actualisedindustries.com.au/

E: admin@actualisedindustries.com.au

Clean As You Go

Leaders in Caretaking and Facility Maintenance

P: 1300 525 651

W: http://www.cleanasyougo.com.au/

E: info@cleanasyougo.com.au

1800 AUS JUNK

We get rid of your junk.

P: 1800 287 586

W: https://ausjunk.com.au/

E: info@ausjunk.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

Austrata Finance

Pay Now or Pay Later: It’s Your Choice®

P: 1300 936 560

W: https://austratafinance.com.au/

E: info@austratafinance.com.au

ELECTRICAL
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ELECTRICAL

Energy On Pty Ltd

Providing utility network solutions

P: 1300 323 263

W: https://www.energyon.com.au/

E: EnergyServices@EnergyOn.com.au

ENM Solutions

Providing Solutions for Embedded Networks

P: 1300 000 366

W: https://www.enmsolutions.com.au/

E: info@ENMSolutions.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

The Lift Consultancy

Trusted Specialised Advice

P: 07 5509 0100

W: https://theliftc.com/

E: sidb@theliftc.com

Strategic Lift Solutions

We know Lifts and we make things happen!

P: 0475 353 090

W: https://www.strategicliftsolutions.com.au/

E: lynne@strategicliftsolutions.com.au

ABN Lift Consultants

A team of friendly, open minded professionals

P: 0468 659 100

W: https://www.abnlift.com/

E: andrew@abnlift.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

Essential Recruitment Solutions

Specialising in Strata recruitment

P: 0448 319 770

W: https://www.essentialrecruitmentsolutions.com.au/

E: maddison@essentialrecruitmentsolutions.com

Higgins Coatings Pty Ltd

Specialist painters in the strata industry

P: 1300 HIGGINS

W: https://www.higgins.com.au/

E: info@higgins.com.au

Dulux Property Services

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

MARKETING

Ki Creative Design

Purposeful Design Solutions

P: 0451 541 066

E: kiara.mcilroy@gmail.com

ENERGY

Strata Energy Services

Simplifying Energy For Strata

P: 1300 060 111

W: http://www.strataenergyservices.com.au/

E: info@strataenergyservices.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

24:seven Maintenance Solutions

Comprehensive building maintenance services

P: +61 3 9008 5423

W: https://24sevenms.com.au/

E: admin@24sevenms.com.au

DEFECT RESTORATION FRANCHISERS

Network Pacific Strata Franchise

Join our successful team

P: 03 9999 5488

W: www.networkpacificstratafranchise.com.au/

E: networkpacific@franchisedevelopments.com.au

PRINT YOUR DIRECTORY HERE
PAINTING LIST MY BUSINESS

CONSULTING

Strata Solve

Untangling strata problems

P: 0419 805 898

W: https://stratasolve.com.au/

E: chris@stratasolve.com.au

SUSTAINABILITY

The Green Guys Group

Australia’s Leading Energy Saving Partner

W: https://www.greenguys.com.au/

E: sean@greenguys.com.au

Alpha14 Property Group

Project Management Services

P: 0417 378 331

W: https://alpha14.com.au/

E: projects@alpha14.com.au

Groundfloor™

Australian parcel, mail, and refrigerated lockers

P: 03 9982 4462

W: https://groundfloordelivery.com/

E: ask@groundfloordelivery.com

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

Lifestyle Clotheslines

Clothesline and washing line supplier & installer

P: 1300 798 779

W: https://www.lifestyleclotheslines.com.au/

E: admin@lifestyleclotheslines.com.au

Linkfire Pty Ltd

Your essential safety partner

P: 1300 323 263

W: https://www.linkfrire.com.au/

E: sales@linkfire.com.au

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