Who pays for repairs if the Strata Company does not want an owner to make an insurance claim?
WHS obligations to comply - at the AGM and beyond Page 14
Working with owners who are experiencing financial difficulty
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, 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.
Liza Jovicic Sales and Content Manager
Recently, we asked our Business Development Managers across Australia to share the most common misconceptions they hear about strata funding… and the answer was unanimous!
When discussing funding options with owners, they frequently hear, “Oh, a funding facility? That works just like a standard loan, right?”. This notion tends to surface even before we step into a general or committee meeting.
No fees or penalties for early repayment
Repayments are tied to the lot, not the owner
But here’s the reality - a funding facility isn’t the typical run-of-the-mill loan. It doesn’t come with the same upfront commitments or lock-in terms that are usually associated with a conventional loan.
This article highlights the key differences between a conventional loan and strata finance facility, to empower Strata Managers and Owners Corporations to make informed decisions about their funding options. We’ve simplified this topic so it’s quick and easy to understand and share with your colleagues and clients.
Lannock facility Principal and Interest repayments are charged only on the funds drawn, as and when they are used. Approval equals access to funds, but not all the funds are deposited on day one. You simply draw down as needed.
You are not committed to utilising the entire amount approved.
When a lot changes hands, the new owner takes over the repayments and associated levies.
In strata, funding needs can be uncertain and fluid. The full scope of an issue often isn’t clear until professionals assess it and, in some cases, not until they commence work. And that is why a Strata Finance Facility with swift access to approved funds is an effective way for Owners Corporations to navigate unpredictable situations and fluctuating costs.
Strata funding also provides a variety of flexible and simple products to cater for the specific requirements of each Owners Corporation’s situation. Extendable drawdown periods, length of terms and up to 24-months of interestonly payments, and quick access to draw on funds as required.
Unlike conventional loans, strata funding is extended to the Owners Corporation, not an individual. Strata finance aligns perfectly with the strata scheme’s legal structure and purpose:
• It’s extended to the Owners Corporation, not an individual
• Repayments can be incorporated into ongoing levies, spreading costs over time
• This approach reduces the immediate financial burden on owners by up to 90% in the first year.
• It eliminates waiting for the Capital Works Fund to accumulate the required capital
• Immediate access to funding allows prompt repairs or upgrades, enhancing property value and liveability
• Prompt remediation of building issues saves money
In the face of unexpected costs or urgent repairs, remember –strata finance is a facility, not just a loan! It’s a solution that has been specifically designed to help Owners Corporations navigate financial challenges more effectively and with greater flexibility. Strata finance is about flexibility, not constraint. It’s about simplicity, not complexity and about having the freedom to adapt to the fluidity of changes. It’s about being prepared, not reactive.
So, next time you’re faced with a financial decision, remember, it’s a facility, not a loan!
Strata communities across Australia have faced numerous challenges recently, including changing legislation, COVID-related delays, defects, supply chain issues, inflation, and a shortage of contractors.
Our BDMs, who work closely with these communities, have shared some valuable insights. One BDM highlighted: “Addressing problems when first identified could have led to significant cost savings for my client who delayed works from 2018.” Another BDM added, “Delaying necessary works will inevitably cost you more money!”
Here’s why, as shared by our BDMs from their recent experiences:
• Inflation & Rising Costs
“I always inform my clients that delaying work often leads to paying more due to inflation and rising material costs,” shares one BDM.
• Expanding Scope of Work
Another BDM points out, “Over time, we’ve seen that issues can worsen, increasing the scope of repairs and costs.”
• Impact on Residents' Enjoyment and Asset Value
“Deteriorating assets can negatively affect resident enjoyment of amenities and the liveability of residences. This can then impact occupancy rates and property values,” recounts another Lannock BDM, echoing a conversation with a strata manager.
Interested in learning more about how Strata Finance can benefit your Owners Corporation?
Don’t hesitate to reach out to our team. We’re here to help you navigate your funding options and make the best decision for your strata community.
Speak with our strata finance specialists today to see how Lannock’s funding facilities can provide total peace of mind.
Mikayla Tritico
Business Development Manager
P 0499 944 057
E mikayla@lannock.com.au
W www.lannock.com.au
The strata company’s (SC) insurer offered a cash settlement for a claim on water damage to my lot. Because the SC is registered for GST, the agreed amount was paid to the SC ex GST. I paid for the repairs, not the SC. When the SC transferred the money to me, they paid me the amount ex GST. We are now in a legal battle concerning the GST amount.
The agreed cash settlement was over $100,000, so I’ve lost over $10,000.
For the GST component to be claimable, the invoice must be in the name of the strata company.
For an entity registered for GST, insurers can only settle the GST exclusive amount according to tax laws, as in theory, the entity can claim the GST back from the Australian Tax Office in their next tax return. This can create problems for a lot owner seeking a reimbursement where the strata company is GST registered, and the lot owner is not.
The SC’s insurer offered a cash settlement for a claim on water damage to my lot. The amount was paid to the SC ex GST, and this has been passed onto me. How do I recover the GST?
If you are an owner and not GST-registered, and you wish your invoice to be settled as the GST-inclusive amount, we have detailed the process we recommend below.
Ensure the repair invoice is in the name of the strata company and submitted to them. Despite receiving the GST-exclusive amount, the strata company should reimburse you the total amount, including GST. The SC will then claim the GST back on their next tax return. It is essential to note that for the GST component to be claimable, the invoice must be in the name of the strata company.
If you have not completed repairs, I recommend following the above process to request the GST component of your claim.
Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au
AQWhat is your take on using NMI meters to bill residents or visitors for charging their electric vehicles? From your point of view, do energy meters need to be NMI-approved?
A well metered distribution board installed from the outset can simplify the energy billing and reconciliation process in a building.
A well-metered distribution board installed from the outset (along with load-balancing equipment) can simplify the energy billing and reconciliation process in a building. This will allow the scheme to efficiently bill from the metered point (with the option to link and/or combine the lot and EVC bill where there is an embedded network), which can significantly reduce online billing service costs and mitigate potential data and communications reliability risks.
There are two trains of thought on which way the regulators will decide on this topic:
1. International metering standards will be adopted in Australia, rendering NMI compliance unnecessary for EV Charging; or
2. NMI Pattern Approval will be required for all EVC systems, and non-NMI-compliant metering infrastructure will need to comply retrospectively within a defined period (i.e., 3 x years).
Recent publications and announcements from the National Metering Institute state that NMI pattern approved metering is becoming the requirement for EVSE. We will have to wait to see the outcome as a result of the consultation process.
The Consultation Paper can be found at: Consultation hub | General certificate of approval for electric vehicle supply equipment (EVSE).
Damien Moran | Energy-Tec damien.moran@energy-tec.com.au
Who pays for repairs if the strata company does not want an owner to make an insurance claim?
Q
A
If the council prefers owners not to make insurance claims to prevent future premium increases, is the strata company liable for repair costs? Owners have an insurable interest in the strata insurance policy and are entitled to make a claim for valid insurable damage.
When dealing with situations where the committee might prefer that an owner does not file an insurance claim to avoid potential increases in future premiums, it’s essential to understand the following considerations:
• Right to Claim: A strata company cannot prevent an owner from making an insurance claim. Owners have an insurable interest in the strata insurance policy and are entitled to make a claim for valid insurable damage. If an owner decides to proceed with a claim, they have the right to contact the insurer directly to assert their claim, independent of the council’s preferences.
• Strata Company’s Financial Responsibility: The question of whether the strata company is able to cover the costs of damage instead of making a claim is complex. Generally, the strata company’s responsibility to pay for repairs within individual lots is determined by the governing legislation and the specific bylaws of the strata company. There are legal
and regulatory boundaries that dictate what a strata company can spend funds on and this is usually associated with maintenance of common property. If the legislation or the strata company’s by-laws do not explicitly require the strata company to cover these costs, or if the strata company is not otherwise legally liable for the repairs, then it may not be appropriate or even legal for the strata company to pay for damages that a lot owner is responsible for.
In this instance, it is recommended the strata company seek advice from their strata manager based on the specific circumstances of the claim before deciding the most appropriate action to proceed with.
Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au
March 2024
Did you know the Voluntary Embedded Network Code of Practice is here? What does it mean for the Strata Sector?
How will it affect you?
What is the Voluntary Embedded Network Code of Practice?
The Voluntary Embedded Network Code of Practice is an optional precursor to the Mandatory Embedded Network Code of Practice expected to become enforceable in early 2026. The objective of the Code is to ‘define standards of conduct in the supply of Electricity and related services to Customers by an Embedded Network Seller (ENS)’.
The Code outlines requirements for all Embedded Networks which it defines as a distribution system located on a property that supplies at least one customer who is not a person in control of that system.
Who is an Embedded Network Seller (ENS)?
An ENS is the person responsible for the supply of Electricity to Customers in an Embedded Network - either the person who has the contract for purchase
of Electricity from the Grid or a person approved by the ‘Coordinator of Energy’ as the ENS. This is likely to be the Council of Owners and will require involvement from Strata Managers to implement and adhere to the codes requirements.
How will this affect Lot Owners and Strata Managers?
The Code of Practice imposes obligations on the ENS to meet certain energy supply documentation, billing, information and disclosure requirements. When the Code becomes enforceable all obligations of the code would need to be followed.
What are the key requirements of the Code of Practice that will affect you?
The Code of Practice is extensive, here are just a few key requirements that might impact you:
• The ENS must have a supply agreement with each Customer (Owner) within the Embedded Network.
• An ENS must provide each Customer (Owner) with a written disclosure
statement outlining details of an individuals supply arrangements including tariff, renewable assets installed, ENS contact and information on what an embedded network is.
• A Bill must be issued to the Customer (Owner) at least every 60 days. For billing cycles that differ from this verifiable consent must be obtained however this cannot be more than 100 days.
• Bills must set out, amongst other things, the amount of any arrears or credit a Customer (Owner) has.
• If informed that a Customers (Owner) supply address requires Life Support Equipment, the ENS must record and keep a register of this.
• The ENS must have policies or procedures covering financial hardship, domestic violence and dispute resolution.
It’s time to become informed of the proposed obligations and the best way to be prepared is to sign up and register your embedded network for the Voluntary Code of Practice.
The Code of Practice shifts how many properties will have to operate. Signing up and providing feedback on the Voluntary Code of Practice will give the strata sector opportunity to ensure it works for you. Familiarising yourself with the Voluntary Code will give you a head start when the mandatory obligations come into effect ensuring you can be compliant ahead of time.
The Voluntary Embedded Network Code of Practice is available on the WA Government Website (search for Energy Policy WA).
Existing customers of Energy-Tec are aware that we are always ready to provide the professional advice, data and information required to assist you to navigate through these proposed changes.
With the spotlight now clearly on the Voluntary Embedded Network Code of Practice requirements, and its mandatory implementation looming, it is the perfect time to review your embedded network billing arrangements to ensure it is meeting the billing and charging obligations, making certain lot owners and tenants in your complexes are being fairly charged for their electricity.
At the AGM each year, you need to help educate everyone. Have a motion acknowledging that all parties have a duty of care to the owners, the occupiers, the contractors and visitors attending the scheme. Make people aware that they have that obligation.
I suggest you have a motion where you progress a safety report on a fairly regular basis. If nothing’s really changed around the scheme, do you have to get one done every year? Probably not. But if anything changes on-site, it might be worth getting another safety report.
Owners should discuss items of concern for minuting that should be actioned immediately following the AGM. I’m not saying they shouldn’t immediately raise a safety issue
if they do identify it. It’s also very important that there’s a motion where the scheme adopts or tables every report they’ve had commissioned throughout the year because the obligations extend to the owner when they bring a contractor into their unit. Owners need those reports, eg an asbestos report or a risk with the safety fuses in the electrical box. As a minimum, I think every scheme should be doing that.
Scott Bellerby | B Strata scott.bellerby@bstratawa.com.au
Catastrophe insurance can be a bit confusing when it comes to strata (group-owned) properties. In this short read, we’ll break down what this type of insurance is all about and how it works.
Understanding Strata Insurance Basics: When you get insurance for your strata property, the first part usually deals with things like damage or loss. The law (Strata Titles Act 1985 WA) says you have to insure your property for the amount it would cost to replace it. This is known as the replacement value.
The replacement value insurance also needs to cover various events, like fires, storms, burst pipes or earthquakes. These are already covered in the standard strata policy subject to the limits, excesses and exclusions therein. Even if these events happen during a big catastrophe, they’re still considered insurable, so you need to have replacement value insurance.
For catastrophe insurance to start helping out, three things must happen:
1. The catastrophe must be officially declared by the Insurance Council of Australia. They’ll give it a code that all insurance companies will use. For example, the recent 2023–24 Queensland Eastern States floods had a code. This has been declared.
2. The strata complex is deemed a total loss and the insurance sum insured you have for your building and common areas is exhausted. Thus the sum insured you have on the insurance Schedule is not representative of replacement value and is due to the catastrophe which causes costs go up a lot e.g. increase in the cost of bricks; insufficient workers and so labour costs increase.
3. You selected Catastrophe insurance, so that additional building policy sum insured will kick in to help cover the additional costs as in point 2.
Catastrophe insurance is there to cover the gap when the strata’s insured sum insured is insufficient to rebuild after a catastrophic event. This insurance also helps pay for extra living costs if you need to find a temporary place to stay for Lot Owners or Loss of Rent where Lot is tenanted.
Usually, costs go up by about 30% after a catastrophic event. Catastrophe insurance helps with these extra costs, and it’s something the insurance industry has seen happening for a long time.
Catastrophe insurance won’t fix issues like underinsuring or mistakes in property value. It also won’t help with government charges like GST shortfalls. But, it does make sure your strata property follow the law (STA) by being insured for replacement value, even in a declared catastrophe.
Catastrophe insurance is a vital part of strata insurance, making sure your property is properly covered, especially in extreme situations. By understanding how it works, you can make sure your strata property stays protected, even during tough times.
QThe National Debt Helpline has seen more owners seeking help for levy debt. What approaches work well for strata companies?
AWorking with owners experiencing financial stress is a far better approach than dragging owners through a recovery process.
There is a lot of financial pressure on people. It’s important for our strata owners and committee members to understand that working with somebody when they’re in financial stress is a far better approach than dragging owners through a recovery process and usually delivers far better outcomes.
I encourage strata companies to be mindful of people’s circumstances and really try to work with them. In the long run, from a the perspective of the complexes culture, you’ll get an ally for life if you offer that person support and good information.
Luke Downie | Realmark ldownie@realmark.com.au
Achieving outstanding results for our clients and our people.
CONGRATULATIONS to Russell Vaguez, named Rising Star of Property Management at the 2024 Realmark Awards. This accolade is a testamant to Russell’s exceptional dedication and the high standard of excellence we strive for at Realmark Strata.
While we’re delighted to win awards, we judge ourselves only on our strata owners’ satisfaction. Our clear commitment to managing strata properties goes beyond the everyday practicalities and compliance of property management. It is to work with the community of strata owners and advise them on how to achieve the best of outcomes.
To learn more on how Realmark can help create a better result for strata owners, simply get in contact with Luke Downie Head of Realmark Strata Management on 0479 095 889 or 9328 0909.
We have a survey strata with three dwellings. Our letterboxes are on common property. Two owners want to replace the old decrepit letterboxes with new ones, but one owner doesn’t. What’s the legal position here?
AThis isn’t the case of an owner carrying out alterations to common property. Two owners, as the strata company, are deciding to maintain the common property.
Assuming the letterboxes are on common property, I refer to STA section 91. General Duty.
1. A strata company must —
a. [deleted]
b. control and manage the common property for the benefit of all the owners of lots; and
c. keep in good and serviceable repair, properly maintain and, if necessary, renew and replace —
i. the common property, including the fittings, fixtures and lifts used in connection with the common property; and
ii. any personal property owned by the strata company, and to do so whether damage or deterioration arises from fair wear and tear, inherent defect or any other cause. [(d)-(k) deleted]
2. A strata company may improve or alter the common property in a manner that goes beyond what is required under subsection (1).
Note for this subsection: Expenditure above a certain amount incurred for the purposes set out in subsection (2) must be authorised by special resolution, except for expenditure on sustainability infrastructure, which may be authorised by ordinary resolution: see section 102.
Further reading of STA section 102 may be required.
The strata company has a statutory responsibility to maintain etc the common property as per STA section 91.
If the common property letterboxes are “decrepit” (not my assessment), then they can be replaced.
Expenditure required for maintaining, repairing or replacing is a “budget” related approval –majority approval.
I don’t know if this three lot scheme has an exemption by-law or has regular meetings, but I would recommend documenting something and issuing it to the third owner and indicating that it is a majority approval as the letterboxes are common property.
Regarding obtaining quotes for the replacement cost and what happens if the third owner doesn’t respond within a certain period:
Budget expenses are approved by majority decision. Advise the third owner of the cost and what their share of the contribution may be.
It doesn’t matter whether it is a survey-strata or a strata scheme. The same legislation applies to all strata lots – the common property must be maintained.
If the third owner doesn’t pay, advise them that the other two letterboxes will be replaced by two owners and funded by those two owners. [Peter paying Paul].
In this instance, this isn’t the case of an owner carrying out alterations to common property. Two owners, as the strata company, are deciding to maintain the common property.
I hope the postman enjoys the new letterboxes.
Shane White | Strata Title Consult shane.white@stratatitleconsult.com.auOur experienced team assists strata managers, council members and individual lot owners with clear and practical advice.
Call us today to find out how we can help you resolve your strata issues. civiclegal.com.au
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n q u i r i e s t h a t w e c o n s i d e r ‘ l o w l e v e l ’ h a s r e d u c e d s i g n i f i c a n t l y . W h a t w e c o n s i d e r a ‘ l o w l e v e l ’ e n q u i r y i s o n e t h a t d o e s n o t n a g e r f o r t h a t p r o p e r t y T o e l i m i n a t e l o w - l e v e l e n q u i r i e s , w e i d e n t i f i e d w h i c h l o w - l e v e l e n q u i r i e s w e r e m o s t f r e q u e n t , o n o u r k n o w l e d g e b a s e i n c l u d i n g r e f e r e n c e s t o t h e A c t , e x a m p l e s i t u a t i o n s a n d n e x t s t e p s a n d b e g a n r e f e r r i n g c u s t o m e r s v e r 2 0 0 0 v i e w s p e r m o n t h o n a r t i c l e s o n o u r k n o w l e d g e b a s e , h a d r e d u c e d o u r r e s p o n s e t i m e t o e n q u i r i e s a n d o c e d u r e s . l a r g e t e a m w h o h a v e b e e n s u p p o r t i n g t h e i n d u s t r y f o r s o m a n y y e a r s , w e w e r e c o n c e r n e d t h a t t h e k n o w l e d g e w i t h i n t h e f f e c t i v e l y . B u i l d i n g t h e k n o w l e d g e b a s e e n a b l e d u s t o c a p t u r e s t o r i e s f r o m s t a f f o n u n i q u e c a s e s a n d o u t c o m e s t o h e l p t r a t a c o m p l e x i t i e s i n p r a c t i c e W e f o r m e d a d e d i c a t e d K n o w l d e g e b a s e t e a m w h o w a s r e s p o n s i b l e f o r c r e a t i n g a n d o s s t h e c o m p a n y a n d e n s u r e d S t r a t a M a n a g e r s a n d t e a m m e m b e r s c o n t r i b u t e d t o s t o r i e s a n d i d e a s W e n o w h a v e o v e r a w i d e v a r i e t y o f t o p i c s . h e n u m b e r o f d i s p u t e s a m o n g s t t e n a n t s a f t e r i n t r o d u c i n g a n d s h a r i n g t h e k n o w l e d g e b a s e w i t h e a l s o f o u n d t h e r e t o b e g r e a t e r p a r t i c i p a t i o n i n m e e t i n g s . A n e c d o t a l l y w e h a v e r e c e i v e d a l o t o f n d e x a m p l e s w e h a v e b e e n a b l e t o p r e s e n t t o c u s t o m e r s W e f o c u s e d o n d i r e c t i n g c u s t o m e r s t o e W e a l s o e n s u r e d t h e k n o w l e d g e b a s e p r o v i d e d m o r e t h a n j u s t a n s w e r s W e i n c l u d e d s t o r i e s e d i a . 9 3 % o f c u s t o m e r s e a r c h e s o n o u r K n o w l e d g e b a s e h a v e b e e n s u c c e s s f u l .
To encourage further education in the Strata industry, the QIA Group "Where Would You Go?" promotion provides Strata Managers with the opportunity to win a $2,000 travel voucher, which can be used to attend some of the most important Strata education events both in Australia and overseas.
As a way of supporting Strata education in a team environment, QIA Group is offering a $1,000 prepaid Visa card, which can be used for a team building or team education activity.
info@qiagroup.com.au
www.qiagroup.com.au
www.lookupstrata.com.au
Travel Education Prize: $2,000 Flight Centre Voucher
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Monthly Prizes: 40 x $50 Dan Murphy’s Gift Cards
Or have the dollar value of your prize donated to your favourite Australian registered charity.
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Refer to QIA Group for terms and conditions.
Building Maintenance Assessment Reports
Capital Works Fund Plans (NSW)
Maintenance Plans (VIC, WA)
Sinking Fund Plans (ACT, QLD, NT, SA, TAS)
Common Property Safety Reports
Fire Safety Audits
Fire Evacuation Training
Fire Evacuation Plans & Diagrams
Insurance Valuations
Asbestos Inspections & Reports
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, so that it's easier for both Property Owners and Strata Managers to understand and achieve.
We are a team of industry professionals with expertise across property 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, chairmen, or committee members of strata properties, so we understand strata as owners, managers and industry professionals.
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.
• 25 Years Experience
• Founded by Strata Manager
• Experience in small and large lots, 2 - 7500
• Solutions for complicated structures
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• Australia wide services
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See Price Lists for Service Guarantees and Pricing Policy details
Is there a standard by-law that establishes a generally accepted timeframe for addressing required repairs after an owner notifies the strata council, particularly when the responsibility lies with the council to arrange the repairs?
The legislation does not specify timeframes, and by-laws that create a timeframe for repairs are not generally added.
There are no laws in the Strata Titles Act that note timeframes for a strata company or a council of owners to attend to a repair. Section 91 of the Act notes the following:
(1) A strata company must —
a. [deleted]
b. control and manage the common property for the benefit of all the owners
of lots; and
c. keep in good and serviceable repair, properly maintain and, if necessary, renew and replace —
i. the common property, including the fittings, fixtures and lifts used in connection with the common property; and
ii. any personal property owned by the strata company, and to do so whether damage or deterioration arises from fair wear and tear, inherent defect or any other cause.
As you can see, no timeframes are specified, and generally, by-laws are not added to a scheme that create a timeframe for repairs. Repairs and works can be multifaceted, e.g. more details required, who is responsible, are there funds in the budget, strata company to complete, so imposing a timeframe in a by-law can be problematic.
Jamie Horner | Empire Estate Agents JHorner@empireestateagents.com
Here’s what our clients have to say...
Professional, friendly, knowledgeable and dedicated team in helping those in need.
I wish I had known them earlier.
Salina’s always responsive and professional. I can already vouch Empire Estate is far better (more competent; more communicative; more proactive) than the previous strata managers/ companies we’ve had. I wouldn’t hesitate to recommend Empire for strata management - keep up the great work!
I’m surprised by how actively Empire estate has replied me to on New Year’s Day and took their time out to explain to me what went wrong with my strata complex and the strata levies. They helped me to understand how levies work and especially making suggestions, even though they do not manage the strata complex. It is hard to find genuinely good people who care. I do highly recommend Jamie Horner, Salina and her team for taking the time out of their busy schedule to explain what went wrong.
Daryl moved into a volatile environment and has worked well through it all. This is where Daryl shone and I believe through that initial work our building politics will settle and 2023 will be a much more productive year for us all.
Do owners need permission to keep a jet ski and trailer in a basement car park?
QCan owners store items in their garages? Do owners need permission to keep a jet ski and trailer in a basement car park?
ASeek written clarification and permission from your strata manager or council of owners before proceeding.
There is no black or white response to this as it largely depends on the by-laws for the scheme. These may state if the storage of items is allowed in a car space.
In the absence of registered by-laws, Schedule 2 Section 14 of the Strata Titles Act 1985 should be considered:
14. Appearance of a Lot
An owner or occupier of a lot must not, without the written consent of the strata company, maintain within the lot anything visible from outside the lot that, viewed from outside the lot, is not in keeping with the rest of the building.
If using the car bays for storage is not in keeping with the rest of the building, it may be a breach of this by-law.
It would, therefore, be advisable that you seek written clarification from your strata manager or council of owners as to the bylaws for your scheme and seek permission before proceeding.
SVN Perth rblampey@svn.com.au
When it comes to cracked or broken drains in a multi-storey complex, finding the pipe and replacing them can become a costly exercise. With drains cast into concrete slabs and walls affecting multiple residents, it is not just fixing a pipe but considering structural issues with walls and reinstatement costs to hallways, bathrooms, kitchens and floors.
That was the case for the owners of a Strata Plan at East Perth, WA. The complex has 11 units over four levels, and they were experiencing water ingress to the front foyer, fully established once they removed the skirting, out of a weep hole onto a balcony and inside units. Water was damaging carpet and skirtings, and getting to the bottom of the cause was starting to frustrate the council of owners.
We visited the site, and after an initial investigation using our CCTV pipe inspection and drain camera, we discovered that one of the pipes had a blockage and the waste pipes had cracked, allowing waste water to seep out into wall cavities and concrete slabs. This is what was contributing to the water ingress and damage.
Repaired the pipes without interrupting daily life
To completely replace the pipes could have meant major construction works and would have required structural engineers to provide assurety that they could cut into the concrete slabs and walls, which was not a desired option. Instead, we were able to find the cause, reline the pipes for a permanent solution that required minor disruption, while residents were able to carry on with normal life.
Tunnel Vision | Your Trusted Perth Plumbing and Drainage Experts
Starting from the kitchen and laundry waste pipes for access into the sewer system, we utilised our CCTV drainage cameras to locate the underslung drains in the basement carpark. This allowed us to get a rope through the drainage system and pull in place our Nuflow Blueline pipe relining system. In total we relined three waste pipes over the course of five months. Despite the difficulties in arranging access to the different sections of drain pipes in various units, we made only a few small, localised cut-ins to the pipe work for access and ease of installation.
Even though these are small pipes, they were causing major problems for the owners.
If we did not find a solution that was suitable for the owners, stop the water ingress and damage, then the repairs would have escalated. The exploratory work and resultant damage caused may result in an insurance claim.
The Tunnel Vision team were on-time, friendly, professional, skilled, kept us informed of each issue and how they were going to resolve it to ensure we were comfortable with the process. They rescheduled one of our jobs to ensure the water ingress was resolved as it was affecting two units below and we wanted to minimise the damage. We were appreciative of their prompt service.
The owners of Haig Park Circle are now able to enjoy life free from constant water damage and have been able to say goodbye to the regular callouts looking for leaks in the three pipes.
Tired of recurring leaking or blocked pipes and looking for a permanent solution?
Tunnel Vision (WA) Pty Ltd can help. Talk to our friendly and skilled team to get your damaged pipes sorted today.
Tunnel Vision Perth are the experts in blocked drains, pipe relining and trenchless plumbing technology.
With capacity for smaller residential plumbing works up to large commercial and government plumbing and pipeline works, Tunnel Vision has nearly 20 years of experience in the Perth market.
The experienced team of plumbers and pipe specialists also provide a 24/7 emergency plumbing service.
Our caretaker provided a tradesperson with unsupervised access to my apartment to undertake nonurgent common property works. They took photos of the interior of my bathroom cupboard, including my toiletries, and circulated them to the council of owners. What can I do?
I am the owner of a WA apartment. We have a live-in caretaker. The caretaker gave my key to a tradesperson to enter my property to repair a non-urgent plumbing problem affecting the apartment above. The tradesperson took photos of the interior of my bathroom cupboard and circulated them to the council of owners without permission. The cupboard contained personal toiletry items.
Other owners have reported similar issues. Most residents are unaware the caretaker holds apartment keys. What can I do?
What you describe is not allowed under the Act. Entering somebody’s property without authorization may even be a criminal offense.
A strata company may enter any part of the strata scheme’s (‘Scheme’) land (‘Parcel’) for the following purposes:
• Carrying out work it is required or permitted to do under the Strata Titles Act 1985 (WA) (‘Act’), any other law, or under a court or tribunal order.
• Inspecting any part of the parcel.
• Ascertaining whether the scheme by-laws have been or are being complied with.
What you describe does not fall within the above-mentioned exceptions. Even if the caretaker or tradesperson had the right to enter, they must provide you with prescribed notice unless it is an emergency.
One other thing to consider is whether statutory or other easements apply to your lot.
Examples of statutory easements are those for water, gas, electricity, telephone, or data services. Other easements include intrusion, air and light, or party wall easements. If these easements apply to your lot, the caretaker, council members, or contractors must comply with certain conditions before they can enter your lot. For instance:
• You must be notified of the planned entry of your lot unless it is an emergency and there is no time to give notice, which does not seem to be the position in your case.
• You must be given 28 days’ notice if a contractor needs access to your lot and 14 days’ notice if a council member requires access.
• The notice must be in a prescribed form. Any damage caused by the access must be made good as soon as practicable by whoever exercised the rights of access.
No provisions in the Act allow a caretaker or the council to keep keys to every lot in the
scheme. Consequently, unless something in your scheme by-laws or applicable easements entitles the caretaker or the council to keep duplicate keys, they have no right to do so.
What you describe is not allowed under the Act. Entering somebody’s property without authorization may even be a criminal offense.
Ideally, you should approach a lawyer to consider the scheme by-laws and advise you concerning any applicable easements. The lawyer can write to the council asking for an undertaking that they will comply with the Act, provide you with the required notice before entering your lot, and return your keys. If the council does not comply, you can take the matter to the State Administrative Tribunal.
Eduard Ferreira | Douglas Cheveralls Lawyers eduard@dclawyers.com.au
Our self managed strata scheme is not compliant. Should we engage a strata manager? How do we best achieve compliance and get back on track?
I’ve been a lot owner in a six-unit, selfmanaged strata complex for the past three years. We’ve only recently held a meeting.
Although the meeting was supposed to be an AGM, it was not arranged as outlined in the STA 1985 and was not run properly. Some owners are concerned about the management of the scheme. I believe our best way forward would be to appoint a professional strata manager. As we are currently non-compliant, how can we achieve compliance and get back on track?
The best step would be calling another meeting, ensuring you allow for at least 14 days’ notice.
The best step would be calling another meeting, ensuring you allow for at least 14 days’ notice. If some owners are keen to appoint a strata manager, you can make that one of the motions on the notice.
It would be ideal if quotes were attached to the notice. This would allow for an informed decision to be made at the meeting. If the majority vote against appointing a new strata manager, a lot owner in the scheme will need
to volunteer to be the strata manager and ensure they adhere to all the Strata Titles Act 1985 requirements for volunteer strata managers.
Section 144 of the Act notes the requirements of a contract or volunteer agreement and Section 148(2) Operation of Accounts. There are also additional requirements under the Strata Titles (General) Regulations 2019. Section 94 requires a tabled criminal record check. At this meeting, it would also be ideal to table the scheme’s financials and insurance and make a motion to appoint a council of owners.
An owner at the meeting can chair the meeting, and another takes minutes. The strata scheme can proceed accordingly based on the decisions made during each motion.
Jamie Horner | Empire Estate Agents JHorner@empireestateagents.com
Electric Vehicles have surged in popularity in recent years, both flooding the market globally and penetrating Australian homes, as consumers seek more convenient, cost effective and climate friendly modes of transportation.
However, the term ‘electric vehicle’ does not necessarily just refer to a car or a truck Alternative e-transport options can include e-bikes, escooters, ‘hoverboards’ and a range of other consumer transport products, all of which come under the banner of ‘Light Electric Vehicles’ (LEVs).
wa strata community
admin.wa@strata.community
LEVs are attractive transport options that can offer a range of benefits, including:
Portability & Convenience
Efficient Mobility
Personal Autonomy
Eco-friendliness
Cost-effectiveness
‘Last Kilometre’ Connectivity
LEVs generally utilise lithium-ion based batteries in the same manner as conventional EVs, due to the portability, weight, energy density and longevity of the battery type.
However, whist efficient, this means that they also carry the same battery ignition risks, and in fact are widely considered pose an even greater risk of combustion than batteries in conventional EVs.
Specifically, the ease and risk of battery abuse is substantially higher in LEVs, including everything from direct physical damage to overcharging to sun exposure, leading to higher chances for battery failure and catastrophic fire incidents as a result.
At the same time, the low barriers to ownership and lack of regulation and oversight of imported products also continues to increase risk and fire event frequency
Data suggests that globally, LEV personal mobility devices have accounted for over 500 battery fires, in comparison to 44 fires conventional EVs
The introduction of LEVs into the communal living environment of strata presents a unique set of challenges and risks.
Unlike conventional EVs that are generally parked in designated areas like garage or on a public street, LEVs in strata are often brought directly into and stored either in personal living spaces or shared areas, creating a serious hazard.
Obviously as a result, a severe fire event in a strata community has the potential to affect the safety and homes of hundreds of residents that might not even have an LEV (as opposed to a standalone home), compounding their potential danger factor
Analysis of lithium-ion fires have suggested that a variety of factors can contribute to likelihood and intensity of a fire event when an LEV is introduced into a personal area, including carpets that poorly dispel heat, density of furnishings that are highly flammable and the humidity and heat of laundry areas.
Similarly, data suggests that that a majority of LEV fires start when a battery is being charged, and often whilst unattended or unsupervised including when a person may be asleep or simply leaving on charge for an extended period of time
Strata communities may consider the introduction of a by-law that restricts LEVs from entering into a strata community. However, the passing and enforcement of this bylaw is not always possible
Purchase LEV devices and equipment from reputable suppliers
Only use supplied charging applications and follow instructions
Avoiding leaving the device unattended whilst charging, especially overnight
Do not charge LEVs on easily flammable surfaces such as beds, carpets, blankets etc
Where possible, do not store your LEV in the living spaces within your home - a garage, carport or allocated storage area is preferrable.
Do not upgrade or modify the device in any way, except when done so by a qualified professional.
Do not expose LEVs to any additional heat or moisture.
Do not use LEVs that show signs of damage, including bulging, cracking, leaking, swelling etc.
This engaging webinar offers insights into the remedial building work undertaken at Hyde Park Plaza, which resulted in significant enhancements to common property The panel demonstrates how to identify opportunities within your own building to increase principal value when carrying remedial works.
Thursday Start At 16 May 2024
8 AM - 9 AM AWST
administration@lookupstrata.com.au
TIM KURNIADI
Install My Antenna
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LookUpStrata
Australia’s Strata Title Information Site
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Strata Community Association
P: (08) 9381 7084
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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
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Tinworth & Co
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Matthew Faulkner Accountancy
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Mimor
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Stratabox
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MYBOS
Building Management - Residential & FM Schemes
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StrataVault
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Urbanise
Automate your workload to increase efficiency
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Customer Service Software for Strata
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Only Complete Cloud Strata Software ecosystem
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Sedgwick
Building Consultancy Division & Repair Solutions
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QIA Group
Compliance Made Easy
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GQS
Quantity Surveyors & Building Consultants
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BCRC
Construction Materials & Durability Consultants
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Leary & Partners
Quantity surveying services since 1977
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BIV Reports
Specialist in Strata Compliance Reports
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Budget Vals
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Solutions in Engineering
Quality Reports On Time, Every Time!
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Mabi Services
Asbestos, Safety & Building Consultants
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HFM Asset Management Pty Ltd
Leaders in Building Efficiency
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Quality Building Management
Keeping your buildings legally compliant and safe
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Independent Inspections
Sinking Fund Forecast, Insurance Valuations, OHS
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Delineation Line Marking
Perth’s Line Marking Service
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LUNA
Building and Facilities Manager
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RFM Facility Management Pty Ltd
Strata and Specialist Cleaners
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Armstrong Shine
Window Cleaning Specialists
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Clear Edge Frameless Glass
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Strata Insurance Solutions
Protecting owner assets is who we are
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Lync Insurance Brokers
The Lync to Safer Strata
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Whitbread Insurance Brokers
Empower Your Vision
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CHU Underwriting Agencies Pty Ltd
Specialist
Strata Insurance Underwriting Agency
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Strata Community Insurance
Protection for your strata property. And you.
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Flex Insurance
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CRM Brokers
The smart insurance choice
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Civic Legal
Bringing Clarity to Complexity
W: http://www.civiclegal.com.au/ E: admin@civiclegal.com.au
Bugden Allen Graham Lawyers
Australia’s leading strata law experts
P: 02 9199 1055
W: https://bagl.com.au/ E: info@bagl.com.au
Moray & Agnew Lawyers
Legal strategies and solutions for our clients
P: 03 9600 0877
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Grace Lawyers Know. Act. Resolve.
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Douglas Cheveralls Lawyers
The Go-To Strata Lawyers
P: 08 9380 9288
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Lannock Strata Finance
The Leading Strata Finance Specialist
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The Experts in Strata Finance
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Austrata Finance
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Realmark Strata
Creating better result for strata.
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Chambers Franklyn Strata Management
Providing professional Strata Management services
P: 08 9440 6222
W: https://chambersfranklyn.com.au/ E: strata@chambersfranklyn.com.au
Empire Estate Agents
Everyday Heroes...Going Beyond
P: 08 9262 0400
W: https://www.empireestateagents.com/ E: jhorner@empireestateagents.com
ESM Strata
WA’s Largest Dedicated Strata Management Company
P: 08 9362 1166
W: https://esmstrata.com.au/ E: support@esmstrata.com.au
Oakfield Experts in Strata
P: 08 6355 5225
W: https://oakfield.com.au/ E: admin@oakfield.com.au
Abode Strata Management
For People in WA Who Value their Property Investment
P: 08 9368 2221
W: https://www.abodestrata.com/ E: jordan@abodestrata.com.au
magixstrata
We listen!
P: 08 6559 7498
W: https://www.magixstrata.com.au/
E: info@magixstrata.com.au
Strata Links
Simplify Your Complex
P: 08 6383 9913
W: https://stratalinks.com.au/home-page/
E: info@stratalinks.com.au
Emerson Raine
Supporting you in strata
P: 08 9227 6274
W: https://www.emersonraine.com.au/ E: hello@emersonraine.com.au
Southern Strata Services
Strata Management Services in Western Australia
P: 08 9478 6881
W: https://www.southernstrataservices.com.au/ E: admin@southernstrataservices.com.au
Strata Property WA
We believe that our best asset, is yours
P: 08 9370 5339
W: https://stratapropertywa.com.au/ E: office@stratapropertywa.com.au
SVN | Strata Management
Global Strength - Local Presence
P: 08 9427 7955
W: https://svnstrata.com.au/ E: info@svnperth.com
Logiudice Property Group
Perth Strata Specialists!
P: 08 9368 5888
W: https://www.lpg.com.au/ E: admin@lpg.com.au
Cambridge Management Services WA
Strata Management
P: 0468 410 838
W: https://www.cambridgemswa.com.au/ E: nuala@cambridgemswa.com.au
Perth Strata Co.
For Better Strata Living | We get things done! P: 6388 1189
W: https://perthstrataco.com.au/ E: hello@perthstrataco.com.au
John Dethridge Strata Services
Fremantle Is Our Territory!
P: 08 9335 5877
W: https://jdstrata.com.au/ E: info@jdstrata.com.au
Tunnel Vision (WA) Pty Ltd
Blocked Drain and Nuflow Pipe Relining Specialists
P: 08 9417 1563
W: https://www.tunnelvision.com.au/ E: operations@tunnlevision.com.au
Strata Guardian
Fight low returns and rising levies with us.
P: 1300 482 736
W: https://www.strataguardian.com/ E: contact@strataguardian.com
Energy-Tec
Sub Meter Reading and Billing Services
P: 08 9309 0000
W: https://www.energy-tec.com.au/ E: service@energy-tec.com.au
The Green Guys Group
Australia’s Leading Energy Saving Partner
W: http://greenguys.com.au/ E: sean@greenguys.com.au
Arena Energy Consulting Pty Ltd
Independent Embedded Network Consulting Services
P: 1300 987 147
W: https://www.arenaenergyconsulting.com.au/ E: info@arenaenergyconsulting.com.au
Bright Connect
Experts in community energy technology.
P: 1300 908 760
W: https://www.brightconnect.com.au/ E: connect@brightconnect.com.au
Embedded Network Arena
Independent Embedded Network Consulting Services
P: 1300 987 147
W: https://embeddednetworkarena.com.au/ E: info@embeddednetworkarena.com.au
Calibre Painting
Exceptional commercial painting services.
P: 0423 800 153
W: https://calibrepainting.com/ E: grant@calibrepainting.com
Higgins Coatings Pty Ltd
Specialist painters in the strata industry
W: https://www.higgins.com.au/ E: info@higgins.com.au
EYEON Property Inspections
Buy and Sell with More Confidence
P: 1300 798 274
W: https://www.eyeon.com.au/ E: info@eyeon.com.au
Rawlinsons
Calculated Confidence
P: 08 9424 5800
W: https://www.rawlinsonswa.com.au/ E: info@rawlinsonswa.com.au
Groundfloor™
Australian parcel, mail, and refrigerated lockers
P: 03 9982 4462
W: https://groundfloordelivery.com/ E: ask@groundfloordelivery.com
Adelaide StrataVal
Strata & Community Insurance Valuations
P: 08 7111 2956
W: https://www.strataval.com.au/ E: valuations@strataval.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
DEFECT RESTORATION
Metrowest Service Pty Ltd
Single source solution for all maintenance needs
W: https://metrowest.com.au/ E: info@metrowest.com.au
TRADECOM GROUP
Innovative Commercial Building Projects
P: 1300 301 888
W: https://tradecomgroup.com/ E: Services@tradecomgroup.com
Energy On Pty Ltd
P: 1300 323 263
W: https://www.energyon.com.au/ E: EnergyServices@EnergyOn.com.au
Strata Solve
Untangling strata problems
P: 0419 805 898
W: https://stratasolve.com.au/ E: chris@stratasolve.com.au
Strata Title Consult PTY LTD
E: shane.white@stratatitleconsult.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
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
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