Are owners unfnancial if they have outstanding utility bills?
Page 14 | B Strata
How can common property repairs be enforced when owners don’t respond?
Page 32 | Abode Strata
About Us
LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013.
As well as publishing legislative articles to keep their audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month.
Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at the LookUpStrata Directory, fip to the end of this magazine.
Meet the team
Nikki began building LookUpStrata back in 2012 and ofcially 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 specifc 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
Jake
Can owners remove installed grab rails in an over 55s complex?
What are the insurance implications if owners remove grab rails without permission in an over 55s complex?
I recently moved into an over 55s complex of 10 units. The units were built in 1994 and specifed as over 55s. All ten units have grab rails in the bathroom. There are two rails in the shower and one beside the toilet on the wall.
One owner has renovated their bathroom and removed handrails without notifying the manager or seeking any permission from the committee.
1. Can owners remove installed railings?
2. Does this impact the strata insurance and any claim that may arise through a fall/ accident in the bathroom where rails have been removed?
If you become aware of a hazard/risk, raise your concerns with your strata company.
As the complex is for over 55s, there are a number of variables when answering these questions. The response is dependent on strata company boundary defnitions, scheme by-laws, contractual obligations and possibly your scheme-specifc procedures set out by the resident’s committee.
There is a potential that there are rules/regulations for your scheme that do not allow owners to remove the installed railing. We suggest checking with your strata company via your strata manager and/or resident committee in the frst instance.
This applies to any renovations you are considering carrying out within or outside your unit. It would be prudent to refer your proposal to the strata company in the frst instance to ensure you comply with scheme-specifc procedures and the Strata Titles Act 1985 (STA).
In relation to insurance, please understand that providing information pertaining to insurance can only be done by a suitably qualifed person (insurer/broker).
Pursuant to Section 97 of the STA, the strata company must ensure that insurance is in place for all insurable assets of the scheme to replacement value and the strata company must be insured against damage to property, death, bodily injury or illness for which the strata company could become liable. Insurance policies that are taken out by the strata company, should only cover items that the strata company is responsible for.
If you become aware of a hazard/risk, we suggest raising these concerns with your strata company via your strata manager, resident committee, or insurance broker/insurer immediately.
ESM Strata info@esmstrata.com.au
Leading the way in strata funding
Lannock Strata Finance has been at the forefront of strata finance for twenty years, pioneering simple and flexible strata funding for strata communities.
As Australia’s leading strata lender, our flexible-use funding is designed exclusively to meet the needs of all strata communities, no matter how large or how small, including:
Building Remediation
Repairs and Maintenance
Upgrades to Common Property
Cladding Rectification
Experience the Lannock difference
Green and Sustainability Projects
Levies in Arrears
Litigation
Insurance Funding
Speak with your local Lannock expert about how we can tailor flexible funding to suit your specific needs.
1300 851 585 | lannock.com.au
Can the council of owners remove oorboards from our strata insurance cover?
Can the council of owners remove cover for foorboards from the strata insurance policy to reduce our premium?
In a 45 apartment strata complex in WA, our strata building insurance included cover for timber foorboards in apartments. Owners were informed that, in an efort to reduce the premium, the council of owners decided to remove foorboards from insurance cover in our renewal.
Can the COO change the insurance cover or does this decision need to be voted on at an upcoming AGM?
Legislation does not mandate the strata corporation to insure foating foors so the council of owners is entitled to remove this cover.
The committee has an obligation to insure in accordance with the legislation.
According to the Strata Titles Act 1985 (WA), and consistent across all Australian legislation, carpets and temporary foor coverings are excluded from the defnition of an insurable asset. Consequently, the council of owners is not obligated to provide insurance cover for these items.
While some insurers automatically include foating foors in their policies, others ofer this coverage as an optional beneft. It’s important to note that opting out of this coverage can be a more prudent approach. Often, foating foors are already covered under an owner’s contents/ landlord insurance, which means paying for duplicate cover through strata insurance is unnecessary. In the event of a claim involving only the foating foor, the owner must typically claim on the strata insurance, as most contents or landlords’ policies include provisions that exclude items insured by the strata.
Such claims can unnecessarily afect the strata’s claims history and lead to increased premiums.
Since the legislation does not mandate the strata corporation to insure foating foors, the council of owners is entitled to remove this cover.
However, owners can still arrange their own cover through their personal contents or landlords insurance.
Mention this offer when requesting a quote from us, and we will provide a discount off our standard fee for service of $250 (GST Inc) for buildings with 10-25 lots or $500 (GST Inc) for buildings with more than 25 lots for the first year you insure with Strata Insurance Solutions.
To redeem this offer email a copy of your current policy schedule to Strata Insurance Solutions within 1 month of the publication of this magazine. Your policy can expire any time in the next 12 months. However we can only provide quotes 30 days prior to the expiry of your policyif your policy is not due now, we will schedule a quote at the appropriate time. To ensure we apply this offer to our quotes, please specifically mention you would like to redeem the "LookUpStrata Special Offer".
Take the test todaysee how much you can save.
Breaking down Embedded Network Electricity Costs & Recovery
In properties with electricity supplied via an Embedded Network, the Strata Scheme (usually through the appointed Strata Management Company) manages the delivery and distribution of electricity to all tenants. The electricity charges cover both fixed costs to maintain the network and variable costs based on each tenant’s consumption.
This article explains how these charges are calculated and outlines the current challenges in Western Australia related to electricity costs and recovery.
Daily Supply Charge
The Daily Supply Charge is a fixed fee that all tenants pay, regardless of usage. It covers:
• Connecting the building to the local electricity grid
This charge is typically shared equally among all tenants, ensuring everyone contributes fairly to maintaining the network.
Consumption Charges (Per kWh)
Tenants are also charged for electricity consumed in kilowatt-hours (kWh), which powers lights, appliances, and other devices. The Consumption Charge is calculated by multiplying the amount used by each resident (generally obtained via sub-meter readings) by the per kWh rate set by the Strata Scheme. This rate is influenced by the wholesale electricity price, along with operational costs (e.g., network fees, administration).
WA regulation states that the maximum consumption rate to be charged to residential tenants must be in alignment with the A1 residential gazetted tariff.
Whether you have an embedded network or are considering one, EnergyTec can help!
Additional Charges
Additional charges may apply, depending on the structure of the embedded network, including Metering Charges (For installing and maintaining individual meters), Regulatory Fees and any Late Payment Fees.
Current Challenges with WA Embedded Network Electricity Costs and Recovery
Embedded networks offer cost savings, simplified billing, and sustainable energy options, but Strata Schemes in WA are facing challenges due to rising electricity costs, increased infrastructure maintenance, future regulations and government tariffs that are not keeping pace with inflation.
With rising wholesale electricity costs, higher infrastructure maintenance expenses, and government-subsidized tariffs (like the A1 residential gazetted tariff) lagging behind inflation, embedded networks are seeing reduced margins.
To remain fair, Strata schemes must adjust charges equitably for tenants while maintaining the integrity of the embedded network. With small increases in government tariffs, embedded networks may find it harder to offer the same cost savings, particularly as wholesale electricity costs outpace tariff growth.
However, these challenges reinforce the
benefit of Strata Schemes investing in sustainable energy options. Deploying solar or other renewable energy sources can help lower costs and reduce reliance on the grid. By generating electricity on-site, solar energy can decrease grid consumption and overall electricity costs, providing a buffer against rising wholesale prices.
As electricity prices rise and government tariffs lag behind inflation, Strata schemes must balance cost increases and maintenance with the need to maintain value for tenants. While potential savings from embedded networks may decrease, their core benefits—including simplified billing, access to renewable energy, and ongoing cost savings—remain essential. These benefits are crucial for the longterm viability of embedded networks in an increasingly complex energy market.
Can funds be shifted between budget items?
Can funds allocated to a budgeted item be used for a diferent budgeted item?
The council doesn’t necessarily need to move funds. They can use their power of expenditure to address that.
I wouldn’t suggest you shift or reallocate items from one budget item to another without going through a process of approving the amendment to the budget by ordinary resolution.
What the council of owners may consider as an alternative to that is, if they need to overspend on a budget item, they consider whether or not it falls within their power of expenditure.
The council doesn’t necessarily need to move funds. They can use their power of expenditure to address that. Essentially, if you want to amend the budget itself, you need to go through the process of approving the amendments to the budget.
Luke Downie | Realmark ldownie@realmark.com.au
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How do we engage our tech-averse building manager in new software?
Given our building manager’s reluctance to adopt technology, how can we introduce new technology to our building?
I’m enthusiastic about the potential of technology to enhance our strata operations and expedite response times. However, our building manager’s reluctance to adopt technology is a major hurdle.
While I greatly appreciate their invaluable expertise in building maintenance and operations, their technological limitations pose a challenge.
How can we efectively introduce technology in a way that leverages their skills and minimises disruptions to their workfow?
By addressing their biggest pain points frst, you can maximise the benefts for both of you.
If you’re keen to continue working with your building manager, consider introducing them to your software choice. Show them how they can streamline their work, reduce paperwork, and become more efcient by learning to use this tool. Ofer them support, training, and guidance to help them get started. Begin with a small step, such as using the software to report issues or create online to-do lists. By addressing their biggest pain points frst, you can maximise the benefts for both of you.
Jake Sharp | MiMOR Jake@mimor.com.au
Laura Toplis | Cadogan Facilities Management Laura@cadogan.co.nz
Are owners un nancial if they have outstanding utility bills?
We have recently been informed that four of our proxies have been rendered invalid due to outstanding utility bills. I thought owners were only unfnancial in cases of overdue levies or interest payments.
By-laws can designate additional costs, such as utility bills or debt recovery fees, as recoverable.
Under the Strata Titles Act 1985, a lot owner’s voting rights at strata company meetings can be restricted if they owe certain amounts to the strata company. Owners are entitled to vote either in person or by proxy, but Section 120(2) of the Act specifes that an owner may be prevented from voting on resolutions (except for certain resolutions such as unanimous resolutions and resolutions without dissent) if they have outstanding amounts that are legally recoverable by the strata company.
Typically, “recoverable amounts” include unpaid levies and any related interest, as permitted by the Act. However, by-laws can designate additional costs, such as utility bills or debt recovery fees, as recoverable.
If your proxies were invalidated due to overdue utility charges, this would only be valid if your by-laws specifcally designate these charges as recoverable amounts owed to the strata company.
To resolve this, consider reviewing your scheme’s by-laws or seeking clarifcation if the invalidation seems inconsistent with what is outlined in the by-laws.
Courtney Butters-Kerr | B Strata operations@bstratawa.com.au
The festive holidays are just around the corner, and as with many industries, strata managers and brokers often take time of between Christmas and New Year to spend with their families. But what happens if an emergency arises during this period, and you’re unsure who to contact?
In this article we are sharing some valuable tips to ensure you’re prepared. Ofering some peace of mind to know that when you need to lodge a claim or arrange urgent repairs, and ensure you’ll have the necessary information at hand.
Planning is Key
Emergencies come in all shapes and sizes. How you handle each one will depend on the situation. The best way to prepare is through proactive planning and clear communication with all residents of the strata scheme. This is similar to practicing evacuation procedures, just as we know what to do in the event of a fre, we should know how to respond to other types of emergencies.
If your strata scheme already has an emergency plan in place, communicated to everyone, this will help minimise confusion and stress when unexpected events occur.
What Constitutes an Emergency?
So, what exactly is an emergency, and can we prevent one from happening? By defnition, an emergency is an event—either actual or imminent—that endangers or threatens life, property, or the environment, and requires a signifcant and coordinated response. While many emergencies may not be life-threatening, they will still require the help of your strata manager and your insurer.
We can’t always prevent certain emergencies like bushfres, cyclones, earthquakes, foods, or storms. In such cases, the State Emergency Services may be the frst responders. However, the most common emergencies in strata living tend to involve issues like damaged fences, burst water pipes, or leaky roofs.
Prevention is better than Cure
Preventing emergencies often comes down to regular maintenance. Keeping an eye on your property can go a long way in avoiding costly repairs later. Here are some simple steps to take:
› Roof inspections: Check periodically for broken tiles, blocked gutters, and downpipes.
› Fence maintenance: Ensure fences are secure, with no damaged panels.
› Tree trimming: Prevent branches from falling by keeping trees well-maintained.
› Make sure your property is secure if you go away for the holidays.
As the saying goes: prevention is the best cure.
The First Step: Make Safe
In any emergency, the top priority is to “Make Safe.” This means addressing immediate risks to prevent further damage or danger. Most strata insurance includes some cover for making the property safe and secure. If the situation is severe, with signifcant damage, it’s essential to report it as soon as possible.
How to Report an Emergency during the Holiday
You should follow your emergency contact process as advised by your Strata Manager, ring your Insurance Broker or the Insurer’s after hour’s emergency. It is always good practice to obtain a copy of your strata insurance policy, so that you have that information readily available in the event you need it.
Type of information you will be asked for;
› Address of your property
› Name of your insurer
› Policy number
› Your strata plan number (your strata manager can provide this information to you in advance)
Wrapping Up
We hope this short article has provided you with some helpful information about strata insurance claims.
Wishing you a happy festive season and a wonderful New Year.
Proactive steps to prolong the life of a coastal building
We are in a large beachfront tower. What proactive maintenance can we take to prolong the life of our coastal building and reduce maintenance costs over the long term?
A maintenance plan is critical to buildings, especially as they are exposed to the extreme marine environment.
A maintenance plan is critical to the building, especially for coastal properties exposed to the extreme marine environment. Beachfront properties are in the highest category of exposure. When drawing up the maintenance plan, experts will discover what building elements need the most attention. The maintenance plan extrapolates the short, medium and long term maintenance costs.
A solid plan will give you a clear vision of where the body corporate is heading over the next 10 years and what the building will need.
Bruce McKenzie | Sedgwick bruce.mckenzie@au.sedgwick.com
READ MORE HERE
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Why did we pay for repairs to a lot?
The accounts show charges for repairs on individual lots. Why weren’t these processed as insurance claims or charged to the owners?
Last year’s accounts show numerous charges for repairs on individual lots, from blocked toilets to ceiling collapse repairs. These appear to be payments made to maintenance/repair companies for varying amounts from $200 to $3000+. Some smaller charges appear to be related to similar issue. Most, but not all costs are relate to commercial units. No one on the council of owners (COO) approved these payments.
Why would our strata manager not have:
• claimed these items on insurance or
• direct lot owners to carry out any small repairs e.g. a blocked toilet?
Some repairs are categorised as regular maintenance rather than insurable events.
In managing repairs and maintenance expenses, the following key points are taken into account:
1. Approved Budget and Delegated Authority: Each year, the scheme approves a budget that includes allocations for essential repairs and maintenance. This budget allows the strata manager to authorise necessary repairs under certain line items without needing specifc approval from the COO for every expense.
This enables efcient and timely responses to issues, particularly those that could impact the safety or functionality of the property.
2. Insurance Policy Terms and Claim Thresholds: When assessing whether an item is claimable, the strata manager reviews the insurance policy’s terms, including the claim excess. If the repair cost is below the policy excess or the item is not covered under the terms (e.g., general wear and tear or maintenance), it is generally more cost-efective for the scheme to fund the repair directly rather than lodge an insurance claim.
3. Nature of Repairs: Certain repairs, such as those for blocked toilets or maintenance issues, are typically categorised as regular maintenance rather than insurable events. Insurance is intended for sudden or accidental damage rather than ongoing or gradual issues, so these types of repairs are usually handled directly and, where relevant, may be the responsibility of individual lot owners.
4. Commercial Units: Commercial units may occasionally have unique repair requirements due to their structure or shared facilities. Where repairs relate to common property or are in the interest of maintaining safety and functionality across the scheme, the strata manager may address these expenses under the scheme’s budget.
5. COO Involvement for Signifcant
Expenditures: While the strata manager uses delegated authority for routine or urgent repairs within budget allocations, larger or unusual expenses are generally referred to the COO for approval to ensure alignment with the council’s priorities.
This approach, based on the approved budget and policy limitations, allows the strata manager to balance efciency in addressing repairs with prudent fnancial management.
Rick Blampey | SVN Perth rblampey@svn.com.au
Boundary fence responsibility
Who is responsible for a boundary fence that borders a public footpath and road?
There is no common property at a 4-lot scheme I manage.
Who is responsible for a boundary fence that borders a public footpath and road? The owner believes the fence is the strata’s responsibility. Is this correct?
The lot owner is responsible for the total cost of the fence.
If the fence sits on lot owner’s land and the other side of the fence is a public footpath, then the lot owner is responsible for the full cost of the fence.
I am not aware if your Local Council takes responsibility, so that would need checking, but generally, Local Councils do not.
If the fence has been damaged from an insurable event, then the lot owner may still be able to make a claim on the strata insurance.
Are they fully licenced, trained, qualified and abide by the laws governing licenced agents?
Do they have Fidelity Fund Guarantee?
Do they have independent Trust Account audits?
Can they offer No Lock-in or No Fuss contracts?
Do they have great reviews and reputation?
Do they posess experience impossible to match?
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If there’s a few boxes unticked give us a call or drop us an email and we would be happy to chat
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Mastering the Art of Strata Management
Council of owners’ authority to alter common property signage
If the council of owners replace signage in common property car parks, should the change be recorded in the meeting minutes?
Our council of owners decided to replace signage in our common property car parks. The new wording difers from the agreed house rules. There was no AGM authorising this change. Should this change be recorded in the council of owners’ meeting minutes?
The replaced signs were in good order. The new signs omit the words “Residents Parking”, which is permitted by the approved house rules.
Despite requests under Section 107 of the Act, the council of owners has not provided the minutes.
The decision should be recorded in the council of owners meeting minutes.
Under Section 91 of the Strata Titles Act 1985 as amended, the strata company must control and manage the common property for the beneft of all the owners of lots.
The functions of a strata company under Section 135, and subject to the Act or any restriction imposed or direction given by an ordinary resolution, are to be performed by the council of the strata company.
For the council to make a decision to order new signs and omit the words “Residents Parking”, it appears that common property parking bays may have been abused by residents claiming the bays for their own exclusive use on a permanent basis. If that is the case, I suggest that a decision to replace the signs due to this be recorded in the council of owners meeting minutes and that
the house rules be amended accordingly. I am not aware of this strata company’s bylaws. In the absence of a bylaw that authorises the strata company to make rules about the common property parking from time to time, I also suggest that any changes to the house rules be properly adopted at a general meeting by the owners. House rules are, however, not bylaws and cannot be enforced. The main duty of the council is to manage the common property for the beneft of all the owners of the lots.
Under Section 107 of the Strata Titles Act 1985, an owner can make an application to the strata company for the inspection of records of the strata company, under Section 109 and upon payment of the prescribed fee of $1.00 to the strata company, the strata company has a duty to make available for inspection that material as so required to be inspected by the owner at a place and time so agreed within 3 days after the strata company is given the application which must be within 10 days after the application has been made by the owner. A penalty of $3,000 is attached if the strata company fails to do so.
Please note though, under Section 109(5), the strata company is not obliged to provide copies of any material belonging to the strata company to an owner or other person with a proper interest, but if they do, they may charge a fee prescribed in the Strata Titles (General) Regulations 2019
This is general information and should not be considered to be legal advice. You should obtain legal advice specifc to your individual situation.
Our experienced team assists strata managers, council members and individual lot owners with clear and practical advice. Call us today to fnd out how we can help you resolve your strata issues.
Call 9200 4900 or email Elizabeth at admin@civiclegal.com.au
Part lot vs exclusive use: Strata plan vs by-law
Our building has a discrepancy regarding whether our balconies and carports are a part lot or exclusive use. If a by-law contradicts the strata plan, which one is correct?
In our building, the strata plan states the balconies and carports are a part of the lot, the boundaries of which are defned on the strata plan.
Our strata manager refuses to accept this and has issued a notice to say the balconies and carports are exclusive use common property.
Landgate have confrmed that they are part lot.
The CoO refuse to acknowledge the facts.
It appears that owners must go to SAT and bear some costs to have this determined.
If a by-law contradicts the strata plan, which one is correct?
The STA can not be overwritten by a by-law.
If there are part lots shown as “Pt” then they are owned. I have nothing to go on with the details of the by-law and how it may contradict the STA.
I do know that you can’t grant exclusive use of a part lot, as it is private property. External use of a part lot could be done by a lease.
It would be best to lodge an application at the State Administrative Tribunal to get a determination.
The STA can not be overwritten by a by-law.
Shane White | Strata Title Consult shane.white@stratatitleconsult.com.au
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Individual water meters: Who repairs a burst pipe?
QI live in a block of four villas with individual water meters. One owner had a burst pipe on their side of the water meter and expects the other three units to share the cost of repairs. Is this correct?
AIdeally, a plumber would repair the pipe and confrm if the pipe is a common pipe.
If the burst pipe is from the meter to the front road / verge, it falls under the Water Corporation’s responsibility. If the burst pipe is from the water corporation meter to the scheme and that pipe only services that lot, it is that lot’s responsibility to investigate and repair the pipe.
Ideally, a plumber would repair the pipe and confrm if the pipe is a common pipe, especially if you are a multi-tiered scheme or if the pipe only services one lot. You should also check your strata plan and by-laws
Is the strata manager responsible for compelling unresponsive owners to participate in decision-making and authorise necessary common property repairs?
I am an owner in a six unit complex trying to get common property repairs completed. All owners are part of the council, as no one wanted to take on the positions ofcially. Most owners do not respond to repair quotes, and there is no group discussion. Owners prefer to respond to the strata manager. Therefore, a majority decision is not reached.
We have money for repairs. The strata manager says they cannot act, which I understand. What should I expect from the strata manager in regards to following up with owners who don’t respond and reminding owners they are in breach of the strata act by not allowing repairs to the common property to be completed promptly etc.? What is the next step to make owners responsible if the strata manager does not take any action?
Appoint a chairperson or primary contact.
In your situation, it would be benefcial for the council of owners (COO) to establish a direct line of communication among themselves, independent of the strata manager. A dedicated communication channel such as a group email, messaging app, or online forum would streamline discussions, leading to quicker, more coordinated decisions on common property matters.
Here’s a structured approach that may help:
1. Appoint a Chairperson or Primary Contact: The COO could appoint a chairperson or designated contact to coordinate responses and update the strata manager as needed. This ensures more efcient communication, reducing the need for the strata manager to engage with each owner individually.
2. Set Response Deadlines: The COO might set a response deadline for each maintenance or repair decision. If certain owners do not reply by that date, decisions could proceed based on the inputs of those who have responded, ensuring that critical repairs are not delayed due to lack of engagement.
3. Limit the Strata Manager’s Role to Council Communication: It’s generally impractical for the strata manager to communicate with each owner separately on every decision. Instead, the strata manager should engage with the COO as a group, helping them coordinate and reach consensus. While the manager should follow up with the whole COO as needed and advise on requirements under the Act, owners could communicate among themselves to expedite decisions.
4. Hold the Strata Manager Accountable as a Group: If there are concerns about the strata manager’s performance, such as lack of follow-through, these should be discussed within the COO. A unifed COO can then clarify their expectations to the strata manager or, if needed, consider other management options. This approach would be more efective than having owners address performance concerns individually.
5. Consider Resignations for NonContributing Members: If some council members are unresponsive or do not participate in the COO’s responsibilities, it may be worthwhile to suggest they consider stepping down. This would allow engaged owners to take on those roles, creating a more functional and proactive council. Members who step down are welcome to rejoin if a vacancy arises, respecting that personal priorities may sometimes take precedence over strata matters.
By establishing these internal processes and strengthening council structure, you can manage decisions more efectively, hold the strata manager accountable, and ensure timely action on property matters.
Jordan Dinga | Abode Strata abode@abodestrata.com.au
Setting Standards Building Trust
The Strata Titles Act 1985 Review and SCA (WA)’s vision for the future
wa.strata.community
Since its introduction to Western Australia in the 1960s, strata living has gradually grown in popularity. Initially seen as a niche solution, it has become a vital part of the housing landscape, ofering afordable and community-based living options.
As WA’s population continues to grow and the need for higher-density living becomes more pressing, strata is poised to play an even larger role in the future of housing.
Following the legislative changes implemented in 2020, the state government has undertaken the statutory review of the Strata Titles Act 1985 this year, providing the opportunity to address gaps in the legislation, adapt to sector growth, and prepare for future challenges.
The Strata Community Association of WA [SCA (WA)], the peak body for the strata sector in WA, has submitted recommendations as part of this phase-one consultation. With a history of advocacy and professional development, SCA (WA) has long championed higher standards for the sector and continues to lead the way in ensuring strata evolves in line with community needs.
The Role of SCA (WA): A History of Advocacy and Leadership
For over 30 years, SCA (WA) has been at the forefront of strata sector advocacy
admin@strata.community
and education. Representing strata managers, owners, and service providers, the association has worked tirelessly to professionalise the sector. It has implemented a self-regulation model, introduced educational standards, and advocated for greater accountability.
SCA (WA) members are held to the highest standards of education, expertise, and experience, ensuring that strata communities are managed with professionalism and care. This commitment is what sets SCA (WA) members apart in a largely unregulated sector.
Challenges in Strata Management
The strata sector is growing rapidly, but regulation and governance have struggled to keep pace. Despite signifcant responsibilities—managing complex buildings, navigating intricate legislation, and overseeing substantial funds—strata managers face minimal oversight or enforcement of compliance. This leaves consumers vulnerable and the profession undervalued.
Adding to these challenges, the profession sufers from a high annual turnover rate of 31%, with recruitment cited as a major issue. Stress levels among strata managers are at an all-time high, as they manage increasing demands from owners while grappling with inadequate support structures.
SCA (WA)’s Submission to the Review
SCA (WA)’s submission emphasises the urgent need for reform to protect owners, professionalise the sector, and future-proof strata management in WA. The association has consistently advocated for measures that balance consumer protection with sector sustainability. While a licensing model remains an ideal goal, SCA (WA) acknowledges the government’s limited appetite for such reform and instead supports a co-regulation model as a pragmatic frst step.
This co-regulation approach would leverage the expertise and infrastructure of SCA (WA) while involving government oversight to enforce standards. SCA (WA) believes that this partnership would pave the way for future licensing while addressing immediate challenges.
SCA (WA) envisions a co-regulation model as a practical and efective solution. his framework would allow the association to collaborate with government agencies to set standards, monitor compliance, and enforce accountability. We suggest to borrow some of the best elements from other states, enhancing consumer confdence and the sector’s reputation.
A co-regulation system would also include mechanisms to ensure that non-compliant strata managers cannot continue operating unchecked, providing much-needed consumer protection.
Building Trust Through Action
As strata continues to grow in popularity and importance, the sector requires stronger governance, greater accountability, and robust professional standards. SCA (WA)’s recommendations aim to achieve this by laying the groundwork for a more transparent and trusted sector.
To learn more about SCA (WA)’s submission and its vision for the future, visit the SCA (WA) website.
Key Recommendations from the SCA (WA) Submission has identifed several priorit areas for reform in the current review. These recommendations aim to improve accountability, transparency, and trust within the sector:
Establishment of a Strata Commissioner’s Ofce
dedicated o ce ould regulate strata managers, oversee registration, enforce compliance, and provide education and advisory services to stakeholders.
2. lear Defnition of ‘Strata Manager’
The term should encompass anyone employed to perform scheme functions, with all such individuals meeting minimum education and regulatory standards.
Mandatory Audits of Trust Accounts
Regular audits of strata company trust accounts would ensure greater fnancial transparenc and securit for owners.
Revisions to By-laws
Proposed updates to Schedule 1 and 2 By-laws would address modern issues like parking, rubbish, smoke drift, and debt recover , ensuring the remain ft for purpose.
10-Year Plans
A review of 10-year maintenance plans would prioritise safety, structural integrit , and ualifcations for preparers while introducing a tiered system for schemes of varying complexity.