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 Manager4 Strata Loans: When to involve a finance specialist in your project
Jenine Garcia, Lannock Strata Finance
6 Who is responsible for anchor points?
Shane White, Strata Title Consult
8 Maintaining common property – what needs to be done?
QIA Group
10 Dangers of underinsuring a strata building
Tyrone Shandiman, Strata Insurance Solutions
12 Solutions for letterbox security
Luke Downie, Realmark
14 A solution to visitor parking… and booking EV chargers
Jake Sharp, MiMOR
16 Is a leak in my ceiling covered by strata insurance?
Tyrone Shandiman, Strata Insurance Solutions
18 Embedded network sub meter billing in the spotlight
Damien Moran, Energy-Tec
20 Are you fully covered as an owner of your lot?
PSC Property Lync Insurance Brokers
22 Who can access the CCTV footage?
Jamie Horner, Empire Estate Agents
24 Safety responsibilities as a property owner
Wal Dobrow, BIV Reports
26 Our strata manager won’t release the strata roll to the council of owners
Kylie Nelson, EYEON Property Inspections
28 Are there any valid reasons for a late AGM?
Jamie Horner, Empire Estate Agents
30 What qualifications does a member of the council of owners need?
Shane White, Strata Title Consult
32 Served a breach notice for charging my car with a powerpoint
Eduard Ferreira, Douglas Cheveralls Lawyers
34 The importance of evidence for substantiating a breach
Marietta Metzger, magixstrata
36 Navigating change: how the new residential tenancy act changes will impact strata residents
Strata Community Association (WA)
38 The WA LookUpStrata Directory
If an owners corporation wants to finance a project, at what point do they involve the strata loan provider?
Sometimes it happens very quickly but generally, the experience takes at least a few years.
We're often quite involved from the beginning, during the planning phase once the owners corporation has an idea of the costs.
For very large projects like the Tamarama building, I think we were involved for around 10 years. There are a couple of other large projects we’ve been involved in for the same time, if not longer. With these large projects, we need to work with the owner corporation to let them know how the finance works and how it can be structured. We obviously reassess right throughout the project as they get updated costs and things like that.
If your owners corporation isn’t fully aware of the project costs, we can work on estimates. That will give you a broad idea. Sometimes owners corporations come to us right at the last minute when they are ready to sign the contract. They have a meeting in three weeks and need a proposal and the facility agreement to table at the meeting. Sometimes it happens very quickly but generally, the experience takes at least a few years.
Jenine Garcia | Lannock Strata Finance jenine@lannock.com.au
When you finance your strata project with Lannock, you are dealing with the industry experts. Having operated for nearly 20 years, our friendly team have the knowledge and experience to deliver the funds you require.
We finance capital works for owner corporations and body corporates around Australia including repairs, renovations, cladding rectification, defect rectification, strata asset renewal, professional services, litigation and re-development.
Get in touch with us to find out why borrowing should be part of the funding mix in your strata corporation.
In my townhouse complex, my unit is the only one without an anchor point. Is it my cost to install anchor points?
I own a townhouse in a coastal suburb south of Perth. The complex is a row of townhouses with common walls. Every other lot in the complex has an anchor point on its exterior wall to access the air conditioner unit for maintenance. The air conditioner is my property.
My lot does not have an anchor point for some reason. The strata company insists this is my cost. Should anchor points have been installed when the complex was built?
The boundaries of the strata scheme will have a great bearing on who should be responsible.
It is difficult to answer this question without viewing a copy of the strata plan. The boundaries of the strata scheme will have a great bearing on who should be responsible.
If the boundaries are to the external surface of the building (section 3AB), then the owner would be responsible.
If the boundaries are the inner surfaces of the floor, walls and ceiling (section 3(2)(a)), then the strata company would be responsible.
Shane White | Strata Title Consult shane.white@stratatitleconsult.com.auREAD MORE HERE
The minute a property is completed each of the elements that make it up begin to wear out. As a building ages, the Owners will be called upon to maintain it That maintenance will come at a cost and no matter what, the cost will be met by the Owners. The good news is, Owners do have the ability manage and control their maintenance costs.
Refer to your Strata Plan, walk around the Common Property and take note of the various common areas, capital items, services and facilities
Once identified, quantify the number or amount of the elements that make up your Common Property
Establish an approximate age or condition of the elements that make up the Common Property and Determine a replacement or maintenance interval
There are very real risks associated with maintaining the Common Property, or not maintaining it as the case may be. Owners, residents, or visitors can be hurt by a loose handrail, a crack in the path, a faulty safety switch. Painting becomes a lot more expensive the longer it is left, the consequence of which is higher levies.
Owners can assess the Common Property themselves or contract someone else to do it. Self-assessment can be daunting and very time consuming because you don’t know what to look for or have the tools and systems to record and document what you need in a meaningful, compliant way. Contracting the work out can result in lower risk and more meaningful documentation, but it is important that Owners remain engaged in the process.
When you engage a Contractor to inspect and report on your strata building, their inspection will incorporate all elements of the Common Property that are accessible and visible to them on the day of the inspection. The qualified and experienced inspector will use all available resources to catalogue the building, but the building can’t tell them when it was last painted or that the balcony in unit 3 leaks, or the gutters are about to be replaced. Engaged Owner are able to provide necessary history on the building and where willing can attend the inspection to download their knowledge to the Inspector The additional information will give Owners the best of both worlds, a baseline level of information about their Common Property maintenance requirements, based on an onsite inspection by an experienced professional, informed by additional historical information and relevant current issues provided by the site contact.
QIA Group has been providing compliance reports to the Strata Industry since 2005. We always attend site and understand the value of Owner engagement during the inspection process. Our experienced inspectors are local to Victoria We take samples when we carry out an asbestos inspection, so Owners know whether they do or don’t have asbestos containing materials in their building. We offer ongoing support to Strata Companies after the report is compiled and respond to Owner feedback in a timely and substantive manner. CONTACT US NOW FOR FURTHER INFORMATION OR CHECK US OUT HERE: QIA Services
Maintenance Plans
Common Property Safety Reports
Building Maintenance Assessments
Fire Safety Audits
Fire Evacuation Training
Fire Evacuation Plans & Diagrams
Insurance Valuations
Asbestos Inspections & Reports
Strata compliance is complex but it doesn’t have to be confusing. QIA Group was started by a Strata Manager with the aim of simplifying the compliance process, ensuring Property Owners and Strata Managers understand their reports and achieve their goals.
We are a team of industry professionals with expertise across property development, facilities management, inspections, maintenance planning, insurance valuations, fire, safety and risk assessment.
Our key staff have many years experience working in the Strata industry, as well as first-hand experience as owners, builders, committee members of strata properties, so we understand strata as owners, managers and industry professionals.
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.
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What are the dangers of underinsurance? This is particularly relevant in the current climate where valuations are rapidly skyrocketing.
The danger of underinsuring is that you will have a major or total loss and not be covered.
There are a couple of dangers with underinsurance. First and foremost, by law, you must ensure your building for full replacement value in every state and territory in Australia. Failing to do so can result in fines and penalties for the owners corporation.
I’ve seen a building that didn’t get a valuation every five years and was underinsured and it was a total loss. In the event of a total loss, unfortunately, the body corporate or owners corporation has to make up the losses for
that claim. The danger of underinsuring is that you will have a major or total loss and not be covered.
Most property policies have a clause that says if your insurance value is 80 percent or below what it should be, the insurance company will only pay a portion of that claim if it’s a partial loss. With strata Insurance, because you’re required to insure for full replacement value, that clause is not part of the policy.
Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au
Our letterboxes are constantly broken into. Who is responsible for better letterbox security? Are there options for us to consider?
Our letterboxes are located outside the front entrance of our building and are constantly broken into. Do WA strata laws and/or Australia Post allow letterboxes to be placed behind the security gate? If not, are lot owners responsible for the security of their box, or should strata pay to increase the security by providing better locks? Are there any other solutions.
Mail security is a topic strata companies and owners should consider, as mail theft can often lead to identity theft.
Strata letterboxes often sit on common property and therefore are the responsibility of the strata company unless there are by-laws in place that vary this.
In a situation where the letterboxes are on common property, it can be problematic for the strata company because lot owners often do not want the strata company to have a key to their letterbox. The strata company often avoids holding keys to lot owner’s letterboxes. To overcome this, it is not uncommon for a strata company to look towards implementing a by-law to make the lot owner responsible for their letterbox or at least its lock.
It may be possible to have your letterboxes relocated inside a secure area, depending on the dwelling. To establish if this is possible, contact Australia Post.
They will usually do a site visit to determine if they are agreeable to the arrangement and, of course, sort out the method of access for their staff to deliver to the address. Australia Post has a document that clearly outlines its requirements for mailboxes and locations. You can access this document here: Appendix 2 –Street Mail Service Conditions of Delivery.
I have found that strata complexes face two common issues with the security of mailboxes. One is the lock’s quality, and the second is the ability for mailbox doors to be bent up to access mail inside the mailbox. Some considerations to overcome this are:
• Consider upgrade of the quality of the lock to make it harder for the mailbox lock to be picked.
• With aluminium letterboxes, consider reinforcement of the mailbox lid to prevent the lid from being folded to gain access.
• Consider upgrade of the letterboxes, in general, to a more secure construction such as stainless steel.
Mail security is a topic strata companies and owners should consider, as mail theft can often lead to identity theft. I encourage lot owners living in an area or building where this is problematic to consider alternatives such as having a post office box. Australia Post also offers 24/7 Parcel Lockers in many areas that provide security for those larger deliveries.
Luke Downie | Realmark ldownie@realmark.com.au
WINNER. 2023 SCA (Australasia) Awards: Strata Community Management Medium Business Award.
WINNER. 2022 REIWA Strata Management Agency of the Year.
WINNER. 2022 SCA (WA) Awards: Strata Community Management Medium Business Award. WINNER. 2022 SCA (WA) Awards: Support Team Member Award.
Whilst we’re absolutely 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 0999.
Residents in our building regularly use our visitor parking. There is no fairness in the system. Is there a way to restrict access to visitor parking? Is there a similar system that controls access to common area EV chargers?
as the theatre room or rooftop BBQ area. When the person with the booking approaches the visitor parking during their booked time, an app will show which space is booked and the driver needs only press a button to activate the removal of the bollard.
You can solve access to visitor parking spot and EV charging station easily by using software in conjunction with digital bollards.
For visitor spots and EV charging stations, you can solve this problem easily using a platform such as MiMOR in conjunction with digital bollards. There are quite a few companies supplying digital bollards. Residents can book a visitor parking spot. It’s the same as booking a common area such
The process works the same for EV charging stations. If you install bollards in the EV charging station spots, a resident can book an EV charging station for a set time and, via an app, deactivate the bollard to gain access to the charger.
Jake Sharp | MiMOR jake@mimor.com.au
My apartment has an internal courtyard directly above. There is a leak in my ceiling. Would strata insurance cover this?
I own an apartment in a complex of seven in Perth, WA. The apartment directly above me has an internal courtyard. According to our strata manager, the courtyard is not common property and, therefore, not covered under the strata insurance. The courtyard adjoins my apartment’s roof and appears to be the cause of a leak in my ceiling. Does this means my ceiling is not insured?
First, ensure the leak is fixed and then ask the owner or strata corporation to conduct repairs.
In water damage claims, there are things that are and are not covered.
Generally speaking, insurers cover the cost to repair water damage to insured property but generally exclude repair costs related to finding and fixing the leak. It can be considered the owners/strata corporation responsibility to maintain their property, and such repairs relate to general maintenance or wear and tear. The insurer has exclusions such as lack of maintenance, rust, oxidation, wear and tear, corrosion, gradual deterioration, developing flaws, building defects, rectification of faulty workmanship etc. However, the consequential water damage (to insurable property) can be considered by the insurer.
Without knowing the specifics of this incident, I assume the strata manager means fixing the courtyard is not part of the strata insurance. As you have noted, it is an internal courtyard. In this instance, the lot owner is most likely responsible for maintaining their courtyard and carrying out the repairs to stop water ingress into your ceiling.
The damage to your ceiling should be covered by the strata insurance once the repairs to the courtyard above are complete, subject to the policy excess and policy conditions. The insurer will usually not cover the cost of repairs to your ceiling until the source of the water ingress has been rectified.
My suggestion is first to ensure the leak is fixed and then ask the owner or strata corporation (depending on whether it is considered owner or common property repairs) to conduct repairs.
If you have difficulty getting the owners/strata corporation to rectify the leak, you can refer to the Landgate guide to resolving disputes: Resolving disputes – Five step approach to resolving a dispute
Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au
WA Energy Policy Is changing…. and It will Impact the way that strata schemes need to bill lot owners and tenants for utilities within an Embedded Network.
Energy Policy WA (EPWA) are proposing amendments to the Electricity Industry (Alternative Electricity Services) Amendment Bill 2023 that will include future regulations for people who use, operate or have an interest in embedded networks.
The EPWA process involves implementing a “learn by doing” phase of 6-12 months, with a Voluntary Embedded Networks Code of Practice. It is intended that the obligations contained in the Voluntary Embedded Networks Code will be used as a basis for developing and refining obligations in the Mandatory Alternative Electricity Services (AES) Code that is proposed to come into effect in early 2025.
This will include all properties that have a private electricity network, with submetering for lots and tenancies.
EPWA has just released a draft Voluntary Embedded Networks Code of Practice for feedback which closed on 23 June 2023. This draft Code of Practice is aimed at providing consumer protections for customers of electricity embedded networks; however, it is important that strata managers are aware of the proposed changes and the work practice changes required to meet obligations.
The draft Voluntary EN Code of Practice outlines that an ‘Embedded Network Seller (ENS)’ will be nominated and be responsible for meeting the obligations in the Code of Practice.
A number of different business models of Embedded Networks are outlined in the draft Code of Practice, with many existing brownfield strata properties operating the ‘Self Managed Strata’ model. In this case, whereby a Strata Manager manages the complex on behalf of the Strata Company, it will be the Strata Company that would be the nominated ENS and will need to ensure its contracts with service providers (e.g. Strata Managers) allow it to fulfil it’s obligations.
There are a range of different proposed regulations outlined however the following is a brief summary of those items directly related to the new billing requirements for customers by the ENS;
• An ENS must have a supply arrangement with each customer (tenant/owner) that outlines the tariff arrangements and fees and charges that may be payable by the customer (and when and how these can be varied);
• An ENS must provide each customer with a written copy of a completed Disclosure Statement which outlines what an EN is, the name of the ENS and customer, if the electricity is measured by a separate meter or if not the method of calculating consumption and where the electricity bills will be received from e.g. Strata Manager;
• That in the future each supply address has a meter (not a retrospective obligation);
• An ENS must provide a customer on request, access to an interval meter (at the customer cost) or meter test (at the customer cost if meter test determines meter is not faulty);
• The ENS must issue a bill to the customer at least every 60 days unless the customer agrees but can not be longer than 100 days;
• An ENS must retain billing data for at least 2 years; and
• An ENS must provide the following information onto a bill; Supply address, customer details, meter identification number (if applicable), start and end date of supply period, number of days
covered by bill, consumption or estimated consumption in units, applicable tariff, any fees and charges and total amount due, sufficient information to verify calculation of electricity charges, amount of arrears or credit, amount of fees or charges and details of that service, date by which bill must be paid, summary of applicable payment methods, statement advising the customer that assistance is available if customer is experience problems paying the bill, details of where to direct complaints, legal name of ENS and payment plans.
With the spotlight now clearly on new code of practice requirements, and its implementation looming, now is the perfect time to review your embedded network billing arrangements to ensure it is meeting the billing and charging obligations, ensuring lot owners and tenants in your complexes are being fairly charged for their electricity.
For the last 30 years, Energy-Tec has guided energy market self-regulation by industry expertise in meter reading, reconciliation and billing services. If you have any queries relating to strata billing obligations please contact the Energy-Tec team.
Damien Moran Managing Director Energy-Tec
Strata insurance is designed to protect all the members of the Strata Company for not only accidental loss damage, not otherwise excluded, of the schemes replacement of its insurable assets but legal liability of not less than $10,000,000 on, around or within common property.
In this article, my reference relates to other strata schemes that are not Lots in Single Tier strata schemes or Survey strata schemes. The Strata Titles Act 1985 as amended 2018 (STA) defines scheme plan S3 & common property S10 as referenced by the Act as below;
Strata Titles Scheme Plan
For strata titles scheme means the strata plan or survey-strata plan registered, or proposed to be registered, for the strata titles scheme as a scheme document;
Common property
(a) That part of the parcel of land subdivided by the strata titles scheme that does not form part of a lot in the strata titles scheme; and
(b) Temporary common property.
During the last 2 years we have seen strata insurers harden their underwriting insurance risk acceptance of strata properties, making this period and as we head into 2022, a very challenging time to obtain renewal of your strata policy and to seek new comparative
(2) The common property includes, for a strata scheme, those parts of a scheme building that do not form part of a lot.
insurance quotes.
In the Act it refers to the requirements of insurance for strata titles scheme and also within a scheme building. Refer STA s97 Required Insurance. Often people who buy into strata get confused as to what strata insurance covers and what they need to cover for themselves as an owner of a Lot. This relates to all strata schemes. As an owner and now a member of the Strata Company (whether you live in, run your business from or just lease out your Lot) you have risk exposures and gaps between strata insurance and what you are responsible for.
These gaps relate mainly to;
Accidental loss or damage not otherwise excluded for your property additions that are not fixed, such as carpets, floating floors (optional to include in strata insurance), furniture, curtains, light fittings and anything else that is not nailed, glued or permanently attached to the building structure or common property.
Public liability arising from your use of your Lot and maintenance of your Lot including exclusive use areas, for matters which you might become responsible for, such as personal or landlord’s liability. This requirement has now been highlighted in s97 (1) Note No. 2.
1300 127 503 I
So how do you cover yourself against the gaps between strata ownership and your individual Lot ownership and its use? This is usually done in a few ways;
Residential Strata
Living in your unit – Contents insurance which includes Personal Liability
Renting your unit – Landlords insurance which includes Landlords Liability
Commercial Strata
Operating your business in your unit Business insurance, which includes Lot Owners Liability Insurance.
Leasing your unit to a commercial tenant –Landlords contents and Landlords liability insurance.
With so many insurance companies each with their different policies, how do you know which one suits your needs best? Whether it be building, contents, or landlords insurance for strata title or green title property, you can be assured that we will help you find the right package to suit your needs.
At PSC Property Lync, we’re not like other brokers. We will guide you through the process by providing a diverse portfolio of specially selected and reviewed policies, complete with insightful, easy-to-read comparisons. The difference is our industry experience and knowledge. Armed with an understanding of the various strata schemes, boundaries of ownership and their associated risks, our staff know how to pinpoint the policy that’s right for you.
Contact the Lync Insure team today on 1300 127 503 or visit our website at lyncinsure.com.au
Our council of owners has requested access to our CCTV footage. The strata manager refuses. How can this occur when we instruct the strata manager?
I am on the council of owners at our apartment block. The building, which is only a year old, includes CCTV. Should the council of owners have access to the CCTV footage? We’ve had some break-ins, and our strata company will not give us the access details. It is bizarre that we employ them to manage our strata, yet they won’t do what we ask. We are not sure where we go from here.
The strata manager does work under the instructions of the council of owners, however it is essential the Council of Owners are also working under privacy requirements. Therefore, if a majority of the council of owners or owners instruct the strata manager on the preferred process for the security footage and it meets legislation requirements, this should be sufficient.
It is also imperative the owners understand how the footage is accessed (e.g. log into a terminal, remote access) and that the strata company has the right protocols in place e.g. forms that cover privacy for the person requesting and accessing footage, consent to disclose information, who is paying/costs etc. The process to record and access footage must adhere to privacy requirements etc.
Jamie Horner | Empire Estate Agents JHorner@empireestateagents.com
If a majority instruct the strata manager on the preferred process for the security footage, this should be sufficient.
Do I need to ensure that my property is ‘safe’? Do I need to obtain a Safety Report and an Asbestos Report?
Don't keep your head in the sand
By Wal Dobrow - Director
Wal Dobrow has a Cert IV in WHS and is a specialist in risk, safety and negligence. He has been a trusted advisor to the strata profession for over 35 years. BIV Reports provides strata compliance reports, including Asbestos Registers and Management Plans, Insurance Valuations, and Safety Reports and is one of the largest provider of 10 Year Plans in WA.
This information is suitable for all property owners including strata and non-strata property, and for a variety of uses such as residential, industrial, retail and commercial offices.
Firstly, there are a number of considerations
1 Your Common Law Duty of Care
2 Any legislative requirement.
Everyone has a duty to prevent harm to any person from any likely hazards associated with any property that you have the management or control over, whether as a managing agent or as an owner. If someone is injured and the issue of negligence has to be determined, then the Court will look at the Principles contained within section 5B of the Civil Liability Act 2002. (Other states have similar provisions).
In essence, these Principles include whether;
A the risk was foreseeable (which is a risk that you knew or ought to have known about);
B a reasonable person would have taken precautions against that risk of harm after considering the probability and the likely seriousness of harm; and
C the burden of taking those precautions, amongst other relevant things.
For example, asbestos is known to be a harmful material and both the property owner and their managing agent have a Duty of Care that legally binds to ensure that this material does not cause harm to any visitors, tenants, workers, contractors and the like. The Duty of Care is no different for any other dangerous material or chemical or similar risk. The property owner and managing agent each have a positive obligation and duty to ensure that no harm is caused by their acts or omissions.
The harmonised WHS Act and Regulations placed significant duties, obligations and responsibilities upon persons in the management or control of a workplace to ensure that the workplace is free from risks (this includes a residence when a worker is on site). The specific wording under section 20(2) is “The person with management or control of a workplace must ensure, so far as is reasonably practicable, that the workplace, the means of entering and exiting the workplace and anything arising from the workplace are without risks to the health and safety of any person.”
As an owner of property that is managed by a property or strata manager, you still have a duty of care to the tenants, workers (including contractors), as well as to ‘other persons’. This duty of care is expressed under section 19 (Primary duty of care) of the WHS Act 2020. (A PCBU must ensure, so far as is reasonably practicable, the health and safety of workers and others).
Smaller fines under the WHS Regulation 2022 that can be imposed by WorkSafe for non‐compliance (for example, asbestos issues) range from $3,600 for an individual (not obtain an Asbestos Register,) to $30,000 for a body corporate (no Asbestos Management Plan). Non-compliance can be an expensive exercise in both fines and legal costs if you and your contractors are found to be negligent. It is simply essential and prudent to obtain an Asbestos Register and Asbestos Management Plan for any property constructed prior to 31 Dec 2003.
Although there may an exemption of the WHS Regulation for purely residential strata schemes (without any employees), this exemption does not extend to strata or property managers, nor to contractors that are engaged.
Wal Dobrow, Director, BIV Reports
1300 55 18 30
The above information is not legal advice and has been provided as a guide only. Legal advice should be obtained for your particular circumstance.
MORE
...and regardless of whatever the legislation may or may not define, the common law duty of care ALWAYS REMAINS. Simply put, you must ensure that your property is ‘safe’.
The first step to ensure that your property is safe is to obtain a Safety Report, and a Level 1 visual inspection Asbestos Report (with an Asbestos Register and Asbestos Management Plan).
IMPORTANTLY
Our council of owners would like to communicate with all owners while tendering for a new strata manager. Our current strata manager will not provide us with a copy of the strata roll. Is this correct?
I chair a mixed-use strata with 47 residential units and nine commercial units.
We are calling tenders for strata managers as part of due diligence to assess the current market and capabilities.
One of the tenderers will be our current strata manager. As part of this process, the council of owners (COO) wishes to communicate with owners, but our strata manager will not provide contact information. It would be inappropriate for the current strata manager to be a party to the communications due to a conflict of interest.
Is there anything in the Act or Regulations that prevent a strata manager from providing owner contact information to the COO, especially as the strata manager operates as an agent of the COO? Does the COO need to apply to the strata manager or pay a fee to access the information?
Request the strata manager circulate an email asking owners to make contact with the COO.
As a council member, you should be able to request a copy of the strata roll from the strata manager’s office. They can charge a fee for providing the document, treating the process as a record inspection, but the fee should be low for an owner and sometimes free for council members. It’s at their discretion.
Due to the privacy act, the strata roll rarely contains email addresses unless the owner has specifically requested/permitted this. This is why your strata manager won’t release this information to you.
You can get around this issue. Request the strata manager circulate an email asking owners to contact a nominated COO member’s email account. They can register their email and get approval to receive COO
correspondence directly (and not via the strata manager) on sensitive issues that the COO only want owners to be privy to.
Whilst all owners may not respond, the ones that take an active interest at AGMs or in your strata manager tender likely will, and these are the ones more likely to vote and participate in the new appointment process or assist in feedback the COO maybe after to create the tender document or for selection. Hopefully, this approach will help.
Kylie Nelson | EYEON Property Inspections kylie.nelson@eyeon.com.au
Our strata manager has not called a strata meeting for the last 15 months. Are there any valid reasons for a late AGM?
Our strata manager has not called a strata meeting for the last 15 months. Are there any valid reasons for a late AGM? How about works being undertaken on common property, such as pool renovation and painting, or one council member being away? What action can we take to get things back on track?
There are no valid reasons that allow a strata scheme to not abide by this legislation, and only a court/tribunal can order otherwise.
Section 127 of Strata Titles Act notes:
Annual general meetings of strata company
1. A strata company must hold an annual general meeting once in each 12 month period and not more than 15 months after its previous annual general meeting.
The Act does not make any exemptions to this, i.e. there are no valid reasons that allow a strata scheme to not abide by this legislation, and only a court/tribunal can order otherwise.
The Act states the strata company (not the strata manager), which means the secretary of the strata council would look to call an AGM to ensure the strata company is complying. The strata manager may be in breach of the strata management agreement in place between your scheme and them. The council of owners should review the strata management agreement and check the requirements of the contract and the actions the strata company needs to take if the strata manager has defaulted on them.
There will be a section in your strata management agreement advising your course of action if your strata manager is in default of their requirements in the agreement. This is generally the default section of your contract.
Jamie Horner | Empire Estate Agents JHorner@empireestateagents.com
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.
Are qualifications or previous experience required to join the council of owners?
Are there any qualifications or previous experience required to join the council of owners? Can the strata company contract a strata manager to work for a company without the office bearers having any previous experience or qualifications?
Generally, everyone tries to do their best.
Since the Strata Titles Act (STA) came out in 1966, there has been a requirement to have meetings to approve things.
There have been several iterations of the STA since then, and the current Act is still called the “Strata Titles Act 1985” even though the latest amendments were proclaimed (approved) on 1 May 2020.
One of the changes involved the inclusion of strata managers into the STA and also “volunteer strata managers”.
The Constitution of the Council is defined in Schedule 1 By-law 4.
If you are “entitled”, meaning a financial member of the strata scheme, you can nominate yourself or be nominated by someone else.
One of the curious things is that if you are unfinancial as of the date of the General Meeting, your voting power is restricted to only Unanimous Resolutions or Resolutions Without Dissent.
• You are unable to vote on Special Resolutions or Ordinary Resolutions.
• You may not nominate yourself to go on the council if you are unfinancial, but another financial member can nominate you.
It would be advantageous if the council of owners members knew how meetings were run
and could follow an agenda. Despite having an agenda, some meetings get sidetracked and discuss things not listed as items of special business on the agenda. There is no prerequisite for this experience.
Whilst advantageous to have this prior experience, the SCA (WA) run short courses on council proceedings and what is expected of a council member.
Under the new provisions of the STA, a strata manager must have:
• A contract compliant with the requirements of the Act and the Strata Titles General Regulations 2019 (Regs);
• Professional indemnity insurance;
• A criminal record check;
• Educational requirements or progress toward completing the requirements during the transitional period;
• Must at all times act honestly and in good faith;
• Have a reasonable degree of skill, care and diligence in the performance of the functions;
• Must have a good working knowledge of the Act;
• Must disclose conflicts of interest. A volunteer strata manager who may also be a member of the COO would also have to keep in mind the topic of conflict of interest.
The Act states that a volunteer strata manager:
• Is not required to have professional indemnity insurance;
• Is not required to have the same educational qualifications as a strata manager;
• Must have a criminal record check done;
• Must operate under a volunteer strata management contract;
• Must be an owner of a lot in the strata scheme;
• Must pay all money received on behalf of the strata company into an ADI account of the strata company;
Members of the COO represent all owners of the strata scheme and make decisions or follow instructions from a general meeting to benefit all owners.
I wouldn’t say that it happens all the time, but some people have agendas and only become a member of the council to influence decisions that are favourable for them.
Generally, everyone tries to do their best. The guidance of a good strata manager helps.
Shane White | Strata Title Consult shane.white@stratatitleconsult.com.auAIf no by-laws regulate the charging of EVs, the Council cannot prevent you from using a storeroom powerpoint to charge an EV.
I assume your set-up is a car bay in the basement with a storeroom power connection next to it, and your tenant ran the cable to charge the EV from a powerpoint in the storeroom. You could run the cable over other owners’ or common property if it is covered by a utility service easement.
I infer that the Council disconnected the electricity to the storeroom because it allegedly amounts to a breach of the by-laws and is considered an insurance risk. To answer your question, we need to know what by-law was allegedly breached.
QOur apartment has an EV charging station compatible with Tesla EVs. My tenant has a hybrid car, and they have been charging their car via our storeroom powerpoint. I was served a breach notice. Am I in breach?
I own and rent out an apartment in a strata complex in South Perth. The custom charging station within the complex is suitable for a Tesla but is not compatible with hybrid cars. My tenant is trying to charge their plug-in EV hybrid.
Without prior notification, the Council of owners shut off the power to our lot’s storeroom and my tenant can no longer charge their car.
We have solid proof that the vehicle is not an insurance risk nor a drain on the power as it is a trickle charge that occurs over six hours. It uses a three-prong normal charger.
I was served a notice for breach of by-laws. I have checked the by-laws and do not believe I’m in breach of any. I was cited for insurance risk. I am not an insurance risk. Several attempts to have the power restored have failed. The Council of owners has not responded. What avenue do we have available to us?
If there is a Tesla custom charging station (not clear from your question) in the strata scheme (‘Scheme’), your Scheme likely has by-laws regulating EV charging. By-laws dealing with EVs will be a recent addition, and you may be looking at an old set of by-laws.
If the Council cited you for a by-law breach, they must send you a breach notice complying with section 47(2)(a) of the Strata Titles Act 1985 (WA) (‘STA’). The notice should specify the by-law you have breached and the facts relied on as evidence of the breach. It seems that you have not received a detailed notice. I suggest contacting the Council and requesting a STA compliant notice to clarify what by-law you have breached and why.
Generally, if no by-laws regulate the charging of EVs, the Council cannot prevent you from using a storeroom powerpoint to charge an EV. If the storeroom power supply is a utility service (electricity) provided to you under section 63(4) of the STA (it seems likely, but we need more information to be sure), the strata company cannot disconnect the supply unless:
1. it amounts to a reasonable exercise of their rights under a utility service easement of which they have the benefit; or
2. it is done in the performance of their function of controlling and managing the common property in the Scheme for the benefit of all owners.
Schemes have restricted electricity capacity and need to control how much is being used. An EV, on average, adds about 32% to the usage component of a household electricity bill. If the number of EV owning occupiers grows, it will significantly impact the Scheme’s electricity usage. If your building’s electricity capacity is under pressure, the Council may be justified in disconnecting the electricity supply in managing the Scheme for the benefit of all owners.
EVs with lithium batteries pose a fire risk, but I doubt whether insurers will charge more or exclude cover for EVs or EV charging stations. Unless the Council has a good motivation (is the tenant’s charging station installation safe?) for alleging that the EV poses an insurance risk, I doubt whether they can disconnect the power based on increased insurance risk.
If you are confident that you are not breaching any by-laws, you can apply to the State Administrative Tribunal (‘SAT’) for an order resolving the electricity supply dispute between you and the Council. Otherwise, I recommend that you speak to a lawyer. A letter from a lawyer may be enough to convince the Council to switch on your power, or if you overlooked something, it could save you from commencing a SAT application that may not succeed.
Eduard Ferreira | Douglas Cheveralls Lawyers eduard@dclawyers.com.au
Our downstairs neighbours have accused us of excess noise during the night. They have not provided any evidence of the disturbances. Can they take us to SAT if they have no evidence?
Our below neighbours accused us of being in breach of Schedule 2 bylaw 10 of the Strata Title Act. They can hear footsteps and other sounds in the middle of the night, affecting their peaceful enjoyment of the unit. We have asked for evidence of the disturbances, but the situation has become complicated. How can we be in breach if they have not provided evidence? They have threatened to take us to the SAT. Do we take this seriously?
Unless the neighbour can support and substantiate their claim of excessive noise and has also given written notice, the State Administrative Tribunal may not consider the application further.
Section 47 of the Strata Titles Act 1985 as amended (the Act) sets out clear provisions when it comes to the enforcement of bylaws.
An application to SAT for the enforcement of scheme bylaws may be made by the strata company, an owner of a lot, a mortgagee of a lot or even an occupier of a lot in the strata titles scheme (Section 47 (3) of the Act).
An application to SAT can only be made on the grounds that the person has been given written notice of an alleged breach of the bylaws or the contravention of the bylaw has had serious adverse consequences for a person other than the person alleged to have contravened the bylaws or the person has contravened the particular scheme bylaw on at least three separate occasions (Section 47 (4) of the Act).
A written notice to a person alleged to have contravened the bylaws must specify the particular bylaw that is alleged to have been contravened and specify the particular facts relied on as evidence of the contravention and specify the action that must be taken or refrained from being taken in order to avoid a continuing or further contravention of the particular scheme bylaw and contain an explanation of the effect of this section in terms set out in the regulations (Section 47 (2) of the Act).
It is our understanding that the Tribunal may not make an order in case of a breach of bylaw unless the person alleged to have contravened a specific bylaw has been given written notice as per Section 47 (2) of the Act.
Also, in our opinion, unless the neighbour can support and substantiate their claim of excessive noise due to footsteps and other sounds during the middle of the night and has also given written notice as per Section 47 (2) of the Act, the State Administrative Tribunal may not consider the application further.
The owner/occupier of the lot is advised to seek further legal advice if the issue cannot be resolved.
Marietta Metzger | magixstrata marietta@magixstrata.com.auR e d u c e C a r P a r k
C o n g e s t i o n
I m p r o v e b u i l d i n g
s u s t a i n a b i l i t y
r a t i n g
1 0 0 % E l e c t r i c V e h i c l e s
E a s y T a p & G o O p e r a t i o n
F u l l y m a n a g e d s e r v i c e
R e d u c e d p r i v a t e c a r
p a r k r e q u i r e m e n t s
H O W T H E N E W R E S I D E N T I A L
T E N A N C Y A C T C H A N G E S W I L L
I M P A C T S T R A T A R E S I D E N T S
The long-awaited review into the WA Residential Tenancies Act 1987, (RTA) is coming to fruition.
It’s no secret rental laws in WA needed a makeover. Data from the Australian Bureau of Statistics shows the steepest decline in homeownership rates over a 25-year period were for people aged 25-35 years, an age group typically entering the housing market
The growth in the trend of people renting for longer and renting for life has necessitated a review of the regulation of the rental sector With 45% of WA residents living in strata being tenants (equating to 115,464 rented residences) now more than ever, legislation needs to be transparent, accountable and fair
Although the review into the RTA is ongoing, the WA Government changes to the Act will be implemented in a phased approach.
The most notable changes proposed by Consumer Protection WA in the first phase will include:
Tenants will be allowed to keep pets unless there are reasonable grounds for the landlord to refuse;
Rent increases will be limited to once every 12 months;
Tenants will be able to make minor modifications without landlord consent; Landlords and tenants will be able to separately apply for release of the bond; Most bond and pet disputes will be referrable to the Commissioner for Consumer Protection instead of the Magistrates Court; and Landlords and agents will not be allowed to encourage rent bidding
After a public consultation process that included over 350 stakeholders, Consumer Protection will now draft the proposed changes to the tenancy laws. Consultation will continue with key stakeholder organisations (like Strata Community Association WA) to ensure the changes are implemented effectively, and don’t conflict or limit established processes and legislation in WA.
The new laws will make the ability for tenants to have animals much easier with the requirements for tenants to first ask for permission before bringing their animals home and landlords needing to have reasonable grounds for their refusal.
There are a couple of things to note here for both landlords and tenants:
A landlord needs to provide their response within 14 days or it is considered having given consent.
Scheme-specific pet by-laws and the Strata Titles Act 1985 need to be considered in conjunction with the RTA when considering the approval or otherwise of animals
It is expected that a by-law would be considered a reasonable ground for refusal, however, this may be challenged
With the introduction of the laws, it will be interesting to see if the by-laws will with stand challenge as a reasonable ground for refusal It is a good opportunity for strata companies to review any pet by-laws, and to ensure there is clear, valid and enforceable reasoning for refusing the inclusion of animals, in preparation for any requests
Another recommendation that is looking to be brought in is the ability for tenant to make minor modifications of their property without consent. The modifications need to not impact the structural integrity of the building and be easily reversed.
Whilst this may be a great opportunity for tenants, there are circumstances where the Strata Titles Act 1985 also may impact the ability for these types of modifications to occur Common property and lot boundaries can be challenging to determine, and inadvertent modification to a neighbouring or common property area could cause issues for all involved.
Additionally, if there is any chance that it could impact the common property, then the strata company will need to be consulted and provide approval.
Overall, the proposed changes to the Residential Tenancy Act will provide greater surety for tenants, however it is important for both tenants and owners to know that approval is not guaranteed on these things, and living in Strata means that there may be other considerations and laws that need to be considered
For more information, head to the Residential Tenancies Act review page on the Department of Mines, Industry, Regulation and Safety (DMIRS) website
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice While we strive to provide accurate and up-to-date information, the writers are not legal practitioners It is important to consult with a qualified legal professional or seek appropriate legal advice specific to your situation
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