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.
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.
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. administration@lookupstrata.com.au
Liza Jovicic Sales and Content Manager
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.
Tyrone Shandiman, Chatham,
Strata apartment living brings with it many advantages: less maintenance, lower running costs and added security. But higher density living can also have its downsides when it comes to sharing common amenities.
Anyone who has lived in an apartment complex knows only too well the disappointment of arriving at the gym or pool only to discover every other resident has had the exact same thought at the exact same time.
It’s a scenario that helped to inspire Australian entrepreneur Jake Sharp to create the MIMOR digital platform, an information and booking hub designed to overcome strata-living sticking points and create a more harmonious living environment.
MIMOR (Move In Move Out Register) is a one-stop shop acting as a central digital system for residents and building managers and service providers, comprising vital building information, moving processes, parcel management procedures, general announcements and real-time communications via email and SMS alerts.
MIMOR’s common area booking feature allows residents to choose the facility and time they wish to book, with the confirmation email outlining any rules that need to be complied with.
The booking feature can even be tailored to ensure compliance with health advice, with building managers able to nominate time intervals and the
maximum number of people allowed to use the facility for the allocated time. Time and number limitations can also be reset to reflect revised state or local government restrictions.
And for residents working from home and needing a quiet space and professional backdrop to impress for that important client presentation, the booking system can also be used for conference room facilities.
“Good neighbourly relations are always important, but even more so when you are living in close proximity and sharing the space with dozens or even hundreds of people,” Sharp said.
“An independent booking system provides opportunity for all and certainty for
residents and their guests, knowing they can turn up and enjoy use of the barbeque at their chosen time.”
MIMOR subscriptions are scalable, from three apartments to more than 500. The platform is being translated into 10 languages, with a mobile app version to launch soon.
“The latest data shows almost 10 per cent of the Australian population live in strata schemes. I created MIMOR to be inclusive of as many of those residents and owner corporations as possible,” Sharp said.
For more information, go to mimor.com.au
We are in the process of updating our electrical infrastructure to allow any apartment owner to have an electric car charger installed in their parking bay. Will our building insurance cover these EV Chargers?
Our 101 apartment complex with 170 on-title parking bays is currently installing electrical infrastructure to allow any apartment owner to have an electric car charger installed in their parking bay/s. As the chargers will be attached to a common property wall or pillar in the basement car parks, will the owners corporation building insurance cover the chargers, as they will be individually owned?
Strata insurance covers all permanent fixtures including electrical infrastructure and the charging stations provided they are a permanent attachment.
Electric vehicle charges are becoming more common in strata.
What is and is not covered by strata is usually shown in your policy wording under the definition of “insured property” or “building”.
Strata insurance covers all permanent fixtures including electrical infrastructure and the charging stations provided they are a permanent attachment.
Tyrone Shandiman | Strata Insurance Solutions
An ongoing challenge in the residential and commercial property industry is the inadequate allowances in existing capital works budgets to address the replacement of critical services in buildings. Requirements for an in-depth sinking fund is vital in the overall works, maintenance and longevity of strata assets.
The cost of repairs and replacement is dependent on the location, type and access restrictions. Current building defects and delays in undertaking capital works can potentially:
• Increase physical damage to the asset
• Decrease the longevity on various building elements
• And result to an increase in costs and raising of additional funds.
There are a number of considerations for implementing a 10 year capital works/maintenance plan:
require the implementation of a 10 year capital works/ maintenance plan for strata complexes to ensure upkeep, ongoing maintenance and overall longevity of strata assets in all states of Australia.
of the physical building and mechanics of its assets is vital to ensure the building will function well into the future. Often failure to schedule regular maintenance and repairs may deteriorate the asset sooner. Initial upfront investment is important in ensuring the property and value of the asset is maintained.
old school traditional desktop maintenance plans have limitations in collecting data on assets and their condition. Basing long term plans on old, historical and outdated information can often result in failure to identify all assets and adequately financially plan for the future.
RISK OF ADDITIONAL FINANCIAL BURDENS shortfalls in generating appropriate funds for potential large and more complex programs can be avoided without the need for raising special levies or acquiring strata loans.
In large and complex strata plans and Building Management Committee’s (e.g. mixed use commercial, retail and/or residential lots) budgeting and forecasting the individual elements of the building requirements, shared facilities and/or special features of an asset can often be overlooked or incorrectly accounted for.
Reducing physical risk, financial risk and liability for owners will ensure:
Build assets are sustained
Finances are kept in check
The risk to health and safety of all those living on and/or attending site will be kept to a minimum
Minimising the flow on impacts on insurance and property valuations.
In recent years obtaining strata insurance as a regulatory requirement has become more difficult. Owners are
required to disclose large defect issues, maintenance items etc. This may impact policy terms or in some cases if insurance can be obtained. You may be required to provide an accurate 10 year maintenance plan/sinking fund to your insurer in the future.
focus is often put into planning and preparation, but execution is fundamental when generating funds for future repairs and maintenance. Often taking a reactive approach can result in larger and more complex programs of work which in turn will cost significantly more.
Sedgwick is experienced in strata and suggests owners work with a trusted partner to establish and regularly review plans, complete maintenance, repairs and capital works programs in line with the 10 year maintenance plan. This will ensure your strata plan meets current requirements and is a valuable reference resource for the longevity of your strata asset.
• Avoid special levies to be raised for unforeseen works.
• Long term reduction in maintained cost by addressing defects and maintenance related to works.
• Reduced lability from injury.
• Realistic risk assessment for insurers.
• New owners can purchase with more confidence
• Potentially increase in property value from maintaining the level of quality and function in aging buildings.
• The owner has a realistic overview of future costs.
• Capital works can be planned, packaged, and tendered to reduced costs.
• Reduced annoyance with daily operation of the buildings. 0424
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.
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.
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.
This article is brought to you by Lannock Strata Finance.
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When you finance your strata project with Lannock, you are dealing with the industry experts. Having operated for nearly 20 years, our friendly team have the knowledge and experience to deliver the funds you require.
We finance capital works for owner corporations and body corporates around Australia including repairs, renovations, cladding rectification, defect rectification, strata asset renewal, professional services, litigation and re-development.
While the developer was the owner of all apartments and effectively the OC, the OC entered into a 99-year lease for $1 with the developer for parts of the common property, including the roof. Is there anything we can do to reverse the approval?
I purchased off the plan in a new development. About a week before the settlement of initial apartments, while the developer was the owner of all apartments and thus was effectively the Owners Corporation (OC) the OC (who at this stage, was only the developer), for $1, entered into a 99-year lease with the developer covering a number of parts of the common property, including small segments, and the roof.
The lease was approved at a special general meeting of the OC (ie the developer).
The developer, under the agreement, can sub-lease, make improvements or additions, or create a separate title to the leased area without the approval of the OC. The OC is still responsible for any and all outgoings on the leased area. Purchasers, who became owners in the following weeks were not consulted.
Surely this agreement is unjust/unconscionable under Australian consumer law. Can you please provide some information about this issue? Is there anything we can do to reverse the approval?
Each case will depend on its merits and the circumstances but the Owners Corporation effectively handing over the common property rooftop to a developer for $1 may be a breach of the obligations under Section 68.
Whether or not a lease is valid will depend on the circumstances in each case and whether the lease was in the best interests of the Owners Corporation.
Developers also have obligations under the Owners Corporations Act 2006 Section 68 provides that an initial owner of land affected by an owners corporation must act honestly and in good faith and with due care and diligence in the interests of the owners corporation in exercising any rights under the Act.
Sometimes developers disclose such arrangements in contracts of sale and it may be difficult for a purchaser to complain about it after the fact. Each case will depend on its merits and the circumstances but the Owners Corporation effectively handing over the common property rooftop to a developer for $1 may be a breach of the obligations under Section 68.
The Owners Corporation should engage lawyers to obtain legal advice to ascertain what rights they have to challenge the lease (or at least get in a position to negotiate a better financial result for the Owners Corporation).
Phillip Leaman | Tisher Liner FC Law ocenquiry@tlfc.com.au
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;
• 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
It’s almost every week that we see a new person or entity registering to be an owners corporation manager in Victoria.
The list of registered OC managers as maintained by the Business Licensing Authority has certainly ballooned out since we started monitoring the list (some 6-7 years ago). From our analysis 30% (if not more) of OC managers in Victoria are less than 3-4 years old. Just the other week we got a phone call from a new ‘management company’ that looks after one building… which really raises a number of questions:
• Is there direct hands-on experience that can only be gained from years of managing owners corporations?
• Are there actually proper systems and processes in place behind the scenes?
• How can the OC be comfortable that the owners corporation manager is running a viable operation?
A lot of the larger and more established companies we speak to find it difficult to stay price competitive when it comes to smaller buildings because of all the new (and predominantly) one-man operators coming into the industry.
And there are certainly A LOT of them.
Committees and Owners are often shocked to learn how easy it actually is when it comes to registering to be an owners corporation manager in Victoria:
1. Fill out a form and lodge with Consumer Affairs Victoria / Business Licensing Authority;
2. Take out a professional indemnity insurance policy;
3. Have a website built and off you go – noting that managing owners corporation will often involve the authority and oversight of large sums of other people’s funds.
The competitive pressures when you see that there are these one-man operators pricing themselves in the marketplace at $180 to $260 per lot management fee to manage blocks of 4, 6, and 8 becomes clear.
However Committees and Owners should be aware: the modus operandi of these new entrants seem to be to charge low fees and do the minimum. Or in some cases send out quotes with low management fees but charge a bunch of additional fees later on.
As of 30 March 2020, the average rental price in Melbourne was $545 per week.
The average property management fee in Victoria (according to Macquarie real estate 2016 benchmarking) was 6.2%.
Therefore, on average, real estate agencies are being paid $1,747 per year to perform the service of providing on-going property management.
In contrast, as it stands the average strata management fee in Victoria sits at $300 per lot.
Of course, what a property manager and what a strata manager does day-in and day-out does differ on some levels but that might some add perspective to the discussion.
Lastly, Committees and Owners need to undertake their own due diligence and ensure the following stay front of mind:
• Heavily scrutinise these one-man operators if they’ve been in business for all of 5 minutes then beware – read this article that we wrote (Why You Shouldn’t Trust a One-Man Band to Manage Your Money and/or Owners Corporation);
• Don’t fret over and fall for the cheap and low management fees – often those sort of companies sting you with a lot more hidden and undisclosed fees and charges;
The solution (whatever it may be) has to be a multipronged approach:
1. Accreditation of strata managers as professionals has long been talked about but is now well and truly overdue.
2. The strata management industry bodies (namely the REIV and SCA) has traditionally set minimum fee charges as guideline for their members – however a lot of these reference points are out of touch. There needs to be a more proactive approach to regularly review and update these guidelines
3. Large and more established strata management companies need to draw a line in the sand and stick to their guns on their minimum fee charges – and put their focus on service delivery and customer experience.
• Recognise the overheads that owners corporation managers (be it a newer operator or an established company) have within their businesses – proper offthe-shelf strata management software alone costs of upwards of tens of thousands of dollars; and
• Recognise that strata management is burgeoning professional services industry that is growing and fully appreciate that in the long run it’s cheaper to hire a professional than an amateur. Take it from us – we’ve seen too many buildings and owners corpo rations fall into peril because of bad advice.
Need help changing and appointing a new owners corpo ration management company?
Speak to us – office@strataconsultants.com.au
So, Strata Management Industry, What Can Be Done About It?
For those living in multi-dwelling properties, the idea of short stay accommodation may conjure some negative experiences.
While there are many groups advocating for tougher restrictions and legislation on short stays, the current reality is that an Owners Corporation is limited in what it can do to manage them.
A restrictive covenant can be placed on a lot, however this needs to be registered on the Plan of Subdivision and would require a unanimous resolution (all lot owners in agreeance) to have applied to an existing building; a near impossible feat.
Trying to prevent a unit from being used as a short stay via the rules would be discrimination but working towards an enjoyable experience for the resident and the whole building is achievable.
Establishing an open relationship with the owner creates the opportunity to stop bad behaviour. The Owners Corporation should ensure the owner has the rules, understands the regulations, and appreciates the vision of the building.
The owner is ultimately responsible for the behaviour of their tenants (including short-stay tenants) so explaining to the owner what can result in a breach will ensure they are communicating the right messaging to their guests.
With the recent changes to subsection 159A of the Owners Corporation Act 2006, there is less of a grey area regarding what can and cannot be breached on.
This section outlines that an owner, occupier or manager may make a complaint to the Owners Corporation about a breach of the conduct
proscriptions by a short-stay occupant. This could include creating unreasonable noise, interfering with the peaceful enjoyment of another lot, causing a hazard to the health, safety and security of any person and obstructing the lawful use of, or damaging/altering the common property.
Under section 169D subsection (a) if a unit has at least three breach notices issued within a twenty-four-month period, an application can be made to VCAT to have a prohibition order placed on the lot to prevent it from being used as short stay accommodation.
Discouraging a short stay can be difficult, but some properties are getting creative.
For example, some have implemented inductions for equipment and facilities such as car stackers, pools, and gyms, to help educate the short-term residents. By enforcing the inductions – often done through restricting access via fob systems, until the induction is complete - patrons are less likely to book a room for 1-2 nights but stay for a longer period.
An advantage of a longer stay is that the persons are less likely to create an incident, noting that this can have them removed.
Understanding where the Owners Corporation stands with short stay tenants is also important. This should be clearly communicated to owners of short stay lots so they understand the risk they are taking on.
For example, keys to the residency should not be held by building staff, and permission to install key safes on common property should be carefully considered. This protects the Owners Corporation from any liability should something go wrong. Any incidents
regarding stolen or broken goods should be reported directly to the Police.
Further, the Owners Corporation only contacts the owner to recover costs, and the owner will then need to contact their short stay provider (Airbnb, booking.com, etc) for insurance purposes. If the issue is not resolved within a timely manner, this can also be sent to VCAT to recoup costs.
It’s worth also reminding owners that since the recent updates to the OC Act, both they, and their tenant/guest can be liable when a rule is broken, and that insurance excesses and increases in premium can be levied against them, adding an extra urgency to encouraging good behaviour from their short stay guests.
Residents of the building, being either owners or occupiers, need to understand that short stays are legal, and an additional source of income for many owners. Keeping this reality in mind will help your community take the right steps to protect all parties.
Understanding the short stay reality.
QA Strata Manager has taken over management from a self managed strata. What are the implications when funds have been used incorrectly due to the committee reading the plan of subdivision wrong?
AIf you’re not fully up to speed with who is meant to be responsible for what, you can have a situation where the owners corporation has spent money where they shouldn’t have.
The plan of subdivision is really important because it determines where maintenance responsibilities lie within the strata scheme. It can very well be the case that, if you’re not fully up to speed with who is meant to be responsible for what, you can have a situation where the owners corporation has spent money where they shouldn’t have. This then leaves open the possibilities of recovery, but more than that, I think it leaves open the prospect of a rude shock for people when things start getting done the right way. Suddenly it’s ‘whoa, where did this bill come from?’. Because something was done one way in the past does not necessarily mean it continues to be that way in the future, particularly if it was wrong in the first place.
Chris Irons | Strata Solve chris@stratasolve.com.au
The ground floor units in our building have a lease to a front courtyard. All courtyards are enclosed by a front fence that connects to the footpath. One courtyard also contain a tree.
Who is responsible for the cost of repair of the fence? Who maintains and prunes the tree? What do we do if the details of the lease are lost?
The lease should stipulate conditions as to which party is responsible for the upkeep of the fence and the tree.
A lease grants exclusive rights to a Lessee for a specific area granted under the lease. The lease should stipulate conditions as to which party is responsible for the upkeep of the fence and the tree.
There may be a specific condition that requires the Lessee to maintain the courtyard, including fences and the tree. If the area being leased (courtyard) is Common Property, then it would be prudent to check the lease for these conditions. The cost of the maintenance may also depend on the boundary.
Even if the lease is lost, the conditions still apply. If you are unsure where to find your lease, the below information might point you in the right direction:
• Contact the Lessor in the first instance: it should be on the records for the Owners Corporation
• If the lease is for common property, it is likely the Owners Corporation’s solicitor would have prepared it
• The lease would need to be stipulated on an Owners Corporation Certificate. If there has been a recent sale of the lot in question, there would also need to be a transfer deed/deed of amendment between the parties
• It is possible that the lease is registered on title. The Lessee could apply to Land Victoria for a copy of the lease.
• If both parties have lost the lease and no record can be found, the Lessor may request that a new lease be signed and have this prepared as a priority
If you are unsure as to the responsibilities set out in the terms of your lease, we recommend seeking independent legal advice.
If the Owners Corporation is responsible for maintenance, then the lessee could not prevent access to the courtyard and must allow the Owners Corporation to carry out its duties under the Act with appropriate notice provided as per other applicable legislation.
In respect to the pruning of the trees, we recommend contacting your Owners Corporation Manager advising of the health and safety issue. They will be able to either arrange trades to attend and/or advise you of the responsible party for the maintenance (including the costs involved).
Sim Firns | The Knight ella@theknight.com.au READ MORE HERE
How do we issue a breach notice in a small self-managed scheme? Tenants in one lot keep parking on common property.
How do we issue a breach notice if we don’t have an owners corporation? I’m 1 of 4 units and we are self-managed.
I’m having issues with tenants from the lot next door blocking the driveway. I’ve had to speak to them over 20 times but they just keep parking there or make up excuses as to why the car is parked there.
I must correct you – you do have an owners corporation. This was created when the plan of subdivision was registered.
As such you are required to adhere to the Act, Rules and Regulations, regardless of whether you are self-managed or not.
You may consider engaging a professional and impartial manager, as they would ensure good governance and transparency.
As an owners corporation you are bound by Part 8 section 139 – The Model Rules.
Further section 141 which outlines that all owners are required to adhere to the Model Rules.
Please see Part 10 – Dispute resolution of the Owners Corporations Act 2006, as this relates to how to manage your issue.
Stratabase Holdings
Can a townhouse be insured separately if it is a service-only OC with no common area?
Can a townhouse on land subdivided off the original block be insured separately if it is a service-only OC with no common area? How can this be done?
We have two older units with a common driveway and a separate townhouse built on a block of land on the front of the block. It was subdivided off the original block but does not share any common property. There is a secondary ‘services only’ owners corporation between the two units and townhouse which was set up purely for Water easement.
Can the townhouse be insured separately as it is a service-only OC with no common area?
ABy unanimous resolution, an owners corporation may resolve that, if there is no common property, each lot owner must arrange for the lot owner’s own insurance.
Section 59 of the Owners Corporation Act requires the owners corporation to insure “Buildings”. Section 54 defines an insurable building as:
Building includes any building on the plan of subdivision and—
a. any improvements and fixtures forming part of the building; and
i. any shared services; and
b. anything prescribed as forming part of a building—
If the lot owner homes do not form part of the plan of subdivision, they can be insured separately, otherwise, the only other exemptions for the requirement to arrange insurance are:
• Section 63: By unanimous resolution, an owners corporation may resolve that, if there is no common property, each lot owner must arrange for the lot owner’s own insurance.
• Section 64: This Division does not apply to an owners corporation if the land affected by the owners corporation is affected by another owners corporation which has the insurance required by this Division.
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
Good strata management hinges on regular communication and prompt service.‘‘A surprising approach to Strata Management’’
Should an apartment front door be fire retardant and stamped with metal plate?
What is the fire regulation concerning an apartment front door?
Should an apartment front door be fire retardant and stamped with metal plate and should this door be checked every year?
Is it a fire regulation for a door closer to be installed on the apartment door?
Can a wire screen door be installed if it opens out into the corridor? If so, does the screen door need a door closer?
If the building design has required SOU doors to be fire doors then yes, all fire doors should have metal certification tags fitted on the door leaf and the door frame.
The BCA requirement for required exit doors to swing with the direction of egress does not apply to residential sole occupancy unit (SOU) doors.
It depends on the design of the building. If the building design has required SOU doors to be fire doors then yes, all fire doors should have metal certification tags fitted on the door leaf and the door frame and the fire
doors need to be inspected in accordance with the requirements for inspection of fire doors as listed in the building’s ESM schedule.
All fire doors are required to be self-closing. So all SOU doors that are fire doors should have a selfcloser installed.
This is not something that can be answered easily. It will depend upon the building design, width of the corridor, whether installation of the screen door compromises a fire-rated door frame, etc. It is recommended that a building surveyor be consulted before installing anything that may impinge upon a required path of travel or alter the building’s ESMs in any way.
Chris Chatham | Linkfire Chris.Chatham@linkfire.com.auWhat 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.
In an ever-changing market, invest in long-lasting and scalable infrastructure
Increase the value of your building
Gain access to an alternative, purpose-built network Deliver capacity and ready access for BMS, security/CCTV and Wi-Fi
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Corporate grade-service level agreements for your peace of mind
One owner of two lots in our 6 lot strata block refuses to pay their proportion of the strata insurance renewal. Is VCAT our only option? Where does this leave us regarding compliance with legislation?
I’ve recently purchased a unit in a block of 6. One owner organises strata insurance. 4 owners have paid their portion of our insurance renewal. The remaining owner of the other two units is refusing to pay their share. We’ve lodged two thirds of the payment for the strata insurance. What is our recourse here? Is VCAT the only option?
My bank has refused to insure just my property as it’s under a strata title, however, I’m not convinced that the strata insurance policy is valid, as the whole amount has not been paid.
An owners corporation must take out insurance for all buildings on common property.
In accordance with Division 6, Section 59 (1) of the Owners Corporation Act 2006, an owners corporation must take out insurance for all buildings on common property. Section 55 also states that nothing in the Act limits the right of an owner to effect a policy of insurance for their building and their interest in common property.
In regards to recovery of fees from the lot owner, please refer to Part 3, Division 1, Section 23 (1 c) where in an owners corporation may set annual fees to cover insurance. Please also refer to Section 30, 31 and 32 in regards to fee notices required.
An independent, professional owners corporation Manager would ensure that the levies are struck to cover the requirements of the owners corporation.
You may consider making application to VCAT as long as all the requirements of the Act have been adhered to.
READ MORE HERE
Stratabase Holdings info@stratabasemgt.com
What new sustainability policy announcements in Victoria will mean for strata communities from 2023 onwards.
In the aftermath of the Australian energy crisis in 2022, two major developments in Victorian energy policymaking stand to greatly impact the way we live our lives and accelerate the path towards net zero emissions.
2022 has seen consumers being slugged with record high energy prices in a particularly harsh winter, where a shortage of gas supply has exacerbated the financial pinch felt by many in guaranteeing heating, cooking and hot water for their households.
This is why it is particularly interesting that in July, the Victorian Government announced that from 2023, all new homes built in Victoria will no longer be required to be connected to the gas supply network.
A Gas Substitution Roadmap has been created by the Department of Environment, Land, Water and Planning (DELWP), wherein it is stated that “with gas prices rising steadily, and international events causing uncertainty in gas supply and price around the world it’s time we gave Victorians more choice when it comes to the future of our energy supply.”
Yet, within the same roadmap, the opportunities identified for the 1.6 million Victorians approximately one in four of us, living in strata titled properties such as apartment buildings and townhouse complexes, these are not specified, meaning they are either
But it doesn't have to be this way! minimal, or non existent within the existing paradigm on Spring Street.
According to estimates provided by the National Australian Built Environment Rating System (NABERS), it is common property areas, not individual residences, which account for the lion’s share of energy use within apartment buildings, of up to an average of 60 per cent
Why is it then that owners corporations are effectively precluded from accessing government incentive programs, and the overall savings and other benefits associated with the planned transition from gas to electric connections, when compared to freestanding homes, or even businesses and government departments as set out under the Roadmap?
Thus far, government policy, as noble in its intentions to accelerate a pragmatic transition towards Net Zero carbon emissions by 2050 and the goal of an electric grid powered by 50 per cent renewables by 2030, has not yet properly factored in the multiplying capacity by design, of owners corporations in affecting the habits and behaviours of households and consumers
Owners corporations currently possess a largely untapped potential to bring the same benefits to all owners and residents in the form of lowered energy bills, in the same capacity as those modelled for freestanding homes in the Gas Substitution Roadmap
All it takes is for the strata sector to have a seat at the table, and be a part of the conversation taking place within DELWP and any other relevant government departments and agencies to make this happen, as well as to facilitate the realistic achievement of broader policy objectives.
Concurrently, the Victorian Government looks set to proceed with the implementation of embedded networks reform, committed to at the 2018 state election, referred to ostensibly as an outright ‘ban’ on embedded networks in new apartment buildings
Consultation on embedded networks reform began in early 2021, with input from SCA (Vic) reflecting concerns from industry about the status of legacy networks under new regulations and consumer protections.
Encouragingly, reforms to the effect of simplifying the process for embedded network customers to move on and off market, enabling greater retail choice, stronger consumer protections and singular billing were recommended by the expert panel undertaking the review, as per SCA (Vic) recommendations
Under the amendments to the General Exemption Order (GEO), a renewable energy condition was added for Victoria’s approximately 1,500 embedded networks in apartment buildings.
This requires operators to ensure 100 per cent of electricity consumed within an embedded network by residential consumers is sourced from a mix of on site and off site renewable sources, with the former
constituting a minimum of 5 per cent of generation capacity
Initial concerns existed about an initially proposed 50 per cent on site renewable energy generation quota as a condition of future operation of embedded networks, due to inherent constraints affecting strata properties, including space for solar panels.
These quotas were subsequently amended by the government in its response to the expert panel's recommendations, as well as considerable industry feedback
A lengthy transition period towards the full application of these new regulations by the Essential Services Commission in 2026 27 will take effect from next year onwards.
SCA (Vic) hopes that from both of these examples that the next Victorian Government recalibrates its nation leading sustainability and climate response towards recognising the built environment, especially strata, in future initiatives and programs
SCA (Vic)'s 2022 Victorian election priorities will be launched in late September 2022, and it is our hope that our policy proposals, based on extensive industry consultation and the current landscape for sustainability policy in Victoria, are endorsed and adopted in future, to achieve this goal
Thursday 20 October
Friday 7 October 12:00pm to 12:30pm online 12:00pm to 12:30pm online
Friday 4 November
To book visit www.vic.strata.community/vic activities 5:30pm to 8:30pm online
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
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Whitbread
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Strataregister.com
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Bugden Allen Graham Lawyers
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Tisher Liner FC Law Pty Ltd
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Grace Lawyers
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P: 03 9674 0474
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Holman Webb Lawyers
Body Corporate and Strata Dispute Experts
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StrataLoans
The Experts in Strata Finance
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The Knight
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SOCM
Owners Corporation Management Melbourne
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Network Pacific Strata Management
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Bright & Duggan
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Body Corporate Victoria
Specialist provider of strata management in Melbourne
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