The WA Strata Magazine | September 2023

The WA

STRATA MAGAZINE SEPTEMBER 2023

What is the most economical plan for a large strata complex looking to introduce EV charging?

We’ve told the strata manager we’re not renewing.

Now they’re even worse than before!

Page 12 | Energy-Tec

Page 28 | Realmark

Are our car bays common property or lot property?

Page 36 | Empire Estate Agents

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, flip to the end of this magazine.

Meet the team

Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013.

With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians.

Nikki shares her time between three companies, including Tower Body Corporate, a body corporate company in SEQ. Nikki is also known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.

Nikki Jovicic Owner / Director

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

Learn more here → https://www.lookupstrata.com.au/about-us/ You can contact us here → administration@lookupstrata.com.au

2 www.lookupstrata.com.au

Contents

4 Building Innovation – technology helping owners better manage their buildings

26 Insurance increases due to tattoo parlour tenant Tyrone Shandiman, Strata Insurance Solutions

Edwina Feilen, Sedgwick

6

ommercial decision to fix water C damage issues rather than lodge a claim Tyrone Shandiman, Strata Insurance Solutions

8 Insurance Premium Funding in Strata Management Lannock Strata Finance

10 Can owners attend council of owners meetings without seeking approval?

Marietta Metzger, Magixstrata

12 What is the most economical plan for a large strata complex looking to introduce EV charging?

28 We’ve told the strata manager we’re not renewing. Now they’re even worse than before!

Luke Downie, Realmark

30 Safeguarding tomorrow: The vital role of 10-year reserve fund plans for strata properties Wal Dobrow, BIV Reports

32 Must the council of owners provide the choice to attend the AGM in person?

Rick Blampey, SVN Perth

34 Insurance replacement valuations Rawlinsons

Damien Moran, Energy-Tec

14 Commercial strata management is evolving. Are you ready?

36 Are our car bays common property or lot property?

Jamie Horner, Empire Estate Agents

Realmark Strata

16

he benefits of installing individual T water meters

38 From a records management perspective, what does a well run building look like?

Michael Ferrier, Eyeon Property Inspections

Jamie Horner, Empire Estate Agents

18 Strata Titles (WA): Can a council of owners withhold information from lot owners?

40 Can we contract with our strata manager on a short-term basis?

Luke Downie, Realmark

Anthony Quahe, Civic Legal

20

mall changes bring big benefits to S your building Jake Sharp, MiMOR

22

Unlocking profit in embedded networks Sarah Shevy, Energy On

24 Who is responsible for the removal of a 25 meter tree?

42

Is a no dog by-law valid?

Tahnee Watson, Douglas Cheveralls Lawyers

44

Entryway enchantment Strata Community Association (WA)

46 The WA LookUpStrata Directory

Shane White, Strata Title Consult

Thanks to our sponsors

Building Innovation – technology helping owners better manage their buildings Edwina Feilen, Sedgwick Australia, building consultancy division September 2023 In today’s world, consumers are demanding more for less

In partnership with industry and government bodies and

and want things done quicker and in the most cost-efficient

by working with customers, Sedgwick are working to drive

way. This is a big issue when it comes to the management

societal change, improve environmental impacts and

of strata buildings as you cannot take any shortcuts. With

ensure safer and higher-quality buildings for generations to

an increasing global population, the high demand of built

come. As part of our approach, we are excited to partner

assets in both Australia and across the world has only fueled

with Voltin and bring one of the most advanced artificial

building-related problems publicised in the media.

intelligence (AI) solutions to the strata market which focuses

In Australia, at least 1 in 6 Australians now live in

on identifying issues and defects to building façades.

buildings such as apartments and townhouses, otherwise

No matter the age of a building, the solution provides a

known as strata-titled properties. Nationally, this equates

complete façade health check that will assist owners to

to over 340,000 strata schemes with an estimated value of

identify what underlying issues exist and the remedial

$2.8 million.

action required to resolve them. The AI not only identifies

When looking to safeguard our home, one of the most important and expensive assets we will own in our life, the best practice is to be proactive. Strata owners need to stay abreast of the many challenges currently faced while also futureproofing their asset(s). Although we tend to fall back on past successes experienced using traditional methods, it is important to have an openness to new technologies and innovation designed to solve problems.

but it also classifies and digitally represents building defects, whilst at the same time delivering a lower cost and more accurate solution to automated building inspection. Once the façade image capture is completed, the system then provides the geotagged images in both white light and thermal imagery for algorithmic analysis.

The data is provided in a detailed yet user-friendly report that can be used by owners and or other stakeholders. white light and thermal imagery for algorithmic analysis.

When we combine innovation with technology, it

The data is provided in a detailed yet user-friendly report

can play a pivotal role in how we collect data and use

that can be used by owners and or other stakeholders.

information. When managing strata buildings, it is important to consider several key factors including: • Day-to-day running expenses • Defect identification/remediation • Placement of and rising cost of insurance • Capital works/maintenance plans • Environmental factors (e.g. rising cost of energy) • The financial implications of all the above

caring counts | sedgwick.com

For newer buildings still within their defect liability period or warranty period, this ensures issues are detected and managed early so builders have sufficient time to rectify them. For older buildings, it provides insights into underlying issues that, if left unchecked, could result in further degradation of the building and increased costs associated with remedial repair. Owner corporations/body corporates can then implement maintenance regimes and prepare and budget for capital works programs,

© 2023 Sedgwick

all of which will assist when considering insurance and maintaining the value of the building for future sale and/ or investment.

It’s inevitable over time buildings will require remedial repairs, but it’s how they are dealt with that has the biggest impact. By adopting an alternative approach through innovative thinking complemented by technology,

To learn more about our Building Innovation, contact:

Edwina Feilen Manager, Business Solutions P. +61 424 750 900 E . edwina.feilen@au.sedgwick.com

strata communities will reap the holistic benefits of higher-quality buildings, giving consumers a voice, forcing behavioral change and providing financial security.

S E D G W I C K ’ S B U I L D I N G C O N S U LTA N C Y S E R V I C E S For the past 20 years we have provided expert building consultancy services. As the largest home warranty consultancy specialist team in Australia, Sedgwick has extensive capability in forensic building consultancy, Technical Inspection Service (TIS), policy assessments, preparation of scopes of work, tender validation processes and construction management.

Our specialty is the management of remediation work within the residential, multi-storey residential and mixed-use strata complex landscapes.

To learn more about our integrated and customised solutions, visit S E D G W I C K . C O M caring counts | sedgwick.com

© 2023 Sedgwick

Commercial decision to fix water damage issues rather than lodge a claim

To improve an owners corporation’s claims history, are owners corporations fixing water damage issues rather than claiming the repair on strata insurance? In what instance is this an option?

Particularly where an owners corporation is trying to improve its claims history, there will be instances when an owner or owners corporation will decide it’s not commercial to lodge a claim.

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Where an owners corporation is trying to improve its claims history, there may be instances when an owner or owners corporation decide it’s not commercial to lodge a claim.

Likewise, in some instances we advise some clients to refrain from making a claim when the claim is only a few hundred dollars. In this instance, there’s no benefit.

It costs the insurer more to administer the claim than what they pay out.

For significant claims, it can be a commercial decision of the owners corporation whether they want to step in and pay for the repairs. There can be an argument that the owners corporation cannot pay for repairs inside a lot, so that’s another consideration concerning water damage claims.

If an owners corporation is looking to not lodge a claim, we recommend seeking advice from your insurance adviser on this.

Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE

Insurance Premium Funding in Strata Management

As strata insurance premiums continue to skyrocket – is Insurance Premium Funding the timely solution for strata communities?

Insurance Premium Funding: What is it?

Insurance Premium Funding (IPF) is a financial solution designed to help Owners Corporations manage their insurance costs more effectively. It allows owners to spread the cost of insurance premiums over time, typically in monthly or quarterly instalments, instead of paying a lump sum annually. IPF ensures that Owners Corporations can maintain comprehensive insurance cover without straining lot owners’ cash flow. Indeed, given the time constraints on paying premiums, sometimes Owners Corporations have missed premiums simply because of the time required to issue levies and receive payment – IPF eliminates that risk.

Changing dynamics of the insurance market.

Rising inflation, supply chain constraints, catastrophic weather events, scarcity of materials and labour shortages are all factors driving the increasing costs of insurance in strata. Add in changes to global reinsurance markets and we have a perfect storm (somewhat literally).

The statistics are telling: • Premium increases: Over the past few years, the insurance landscape has witnessed a significant rise in premiums. Buildings with defects have experienced premium hikes of over 40%, while those with no identified defects have seen increases of more than 15%. These escalating premiums have put financial pressure on lot owners in a market where delay in paying premiums can mean loss of insurance cover.

• Peace of mind: With IPF, a strata finance provider pays the insurance policy in full at the beginning of the loan term, guaranteeing uninterrupted coverage. There’s no risk of policy cancellation due to late or missed payments – no more worries about unpaid levies compromising insurance cover!

• Dedicated support: Strata finance providers offer dedicated Relationship Managers, transparent rates, and personalised guidance throughout the process.

• Reduced cover for defective buildings: Buildings with defects are now at increased risk of reduced cover or even denial of cover. Insurers no longer put up with delays to remediation works where their cover is contingent on carrying out those works – they simply pull their cover. This places additional strain on strata managers who must react quickly to ensure the continued coverage of their client’s property.

How Insurance Premium Funding can help?

IPF offers a practical solution to the challenges posed by the changing insurance market.

Here’s how IPF can make a difference: • Smooth the financial impact: IPF spreads the financial impact of premium increases over 12 months, making it more manageable for lot owners managing their own cash flows.

• Flexibility: IPF provides the Owners Corporation with flexible and pragmatic funding tailored to their specific needs. It offers a fast and secure way to access 100% of the premium required at the time it is needed.

• Low administrative burden: Managing IPF is straightforward and comes with minimal administrative strain. It also complies with strata legislation and credit codes, ensuring a smooth process.

Insurance Premium Funding appears as a very timely solution for strata communities struggling to weather the perfect storm of skyrocketing insurance premiums.

Josh Klemm Business Development Manager WA P 0400 006 988 E joshua@lannock.com.au W www.lannock.com.au

Can owners attend council of owners meetings without seeking approval?

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Q

As an owner not on the council, can I attend council of owners meetings without seeking approval before the meeting?

I attended a council of owners meeting.

The chair challenged why I was in the meeting room. When I asked for his authority to challenge my attendance, he responded, “I am the chair, and you need to seek permission to attend the meeting.”

The meeting was opened, and the chair addressed the issue of my attendance, stating I had to seek permission to attend the meeting and there were confidential matters the council needed to discuss. A motion was put and passed asking me to leave the meeting, which I did.

Further, in my opinion, council of owners’ meetings are closed meetings, and attendance by persons other than elected council members is by invitation only or where a council member has explicitly appointed another owner of the scheme to attend the meeting on the council member’s behalf.

I suggest the strata company – with legal assistance – review their by-laws in relation to validity and enforceability to ensure these do not cause further disputes and are not in contravention of the Strata Titles Act 1985 as amended 2020.

Marietta Metzger | Magixstrata marietta@magixstrata.com.au READ MORE HERE

Can owners who are not committee members attend council of owners meetings? The bylaws of the survey strata plan permit owners to attend meetings of the strata company.

Excerpt from our by-laws: A proprietor or, the proprietor’s nominee, may attend a meeting of the strata company.

That proprietor (or its nominee if applicable) may address the meeting only if the strata company passes a resolution authorising the person to do so.

As an owner not on the council, can I attend council of owners meetings without seeking approval before the meeting?

A

Council of owners’ meetings are closed meetings, and attendance by persons other than elected council members is by invitation only.

Without seeing the by-laws of this particular scheme and only relating to the excerpt from the by-laws provided, in my personal opinion, that by-law appears to be invalid as each owner has a right to attend a meeting of the strata company, i.e. general meetings according to the Strata Titles Act 1985 as amended 2020.

STRATA COMPLIANCE REPORTS

READ MORE HERE

QU EFFI ICK C SERVIENT ICE

INSURANCE VALUATIONS ASBESTOS REPORTS SAFETY REPORTS 10 YEAR PLANS

1300 55 18 30 WA, QLD, NT, NZ, SA

1300 10 72 80 NSW, VIC ACT

What is the most economical plan for a large strata complex looking to introduce EV charging?

What studies are available to consider the most economical plan for gradually introducing charging stations within a large strata complex?

We live in a 124-unit strata complex in WA. Currently, we have no EV charging stations and no EVs. I’ve read E vehicles may make up 80% of the vehicle market by 2030, but ownership may be less than 80% due to the economical option to hire EVs. Are these forecasts accurate?

What studies are available to consider the most economical plan for gradually introducing charging stations within a large strata complex? Can a few visitor bays be nominated initially and progressively increased from 5 to 10 spots before providing each car bay with a charging station, which would appear to be overkill?

At what stage are power circuits likely to require upgrading? Will the provision of charging stations need consideration and upgrading of strata insurance for the additional fire risk?

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You should undertake a capacity review and EVC feasibility study of your site.

A modest Australian EV uptake is estimated to be (49%) of total vehicle purchases by 2030.

Concerning vehicle ownership trends, we are not in a position to comment.

Energy-Tec undertakes EVC Feasibility Studies to identify the solutions and options specific to a scheme by working through a generic framework (infrastructure, car park layout/type, ownership structure, etc.).

Available electrical capacity would need to be ascertained at your specific site. You should undertake a capacity review and EVC feasibility study of your site.

You should advise your insurer of the additional electrical assets/equipment and an updated/amended fire plan to make provisions for EVC assets.

Damien Moran | Energy-Tec damien.moran@energy-tec.com.au READ MORE HERE

WA Energy Policy is Changing The new draft Voluntary Embedded Networks Code of Practice has been released which will be the blue print for the mandatory code to come into effect in 2025.

No need to worry though - Energy-Tec has you covered!

Our meter reading and billing (reconciliation and utility statements) services can take the headache out of understanding the requirements of the new Code of Practice.

We can guide you through the process and assist you in making sure your properties meet the metering and billing compliance requirements.

Get on the front foot and get in touch today! energy-tec.com.au sales@energy-tec.com.au Your asset + Energy-Tec makes sense.

Commercial strata management is evolving. Are you ready?

In Western Australia, commercial strata management has historically been approached in the same way as residential strata management.

However, the landscape is changing, and the need for specialised management practices tailored to commercial strata is more apparent than ever. As legislation evolves, risks escalate, and expectations from commercial tenants change, strata management services must adapt.

At Realmark Strata, we recognise these nuances and have tailored our offerings to provide the essential guidance Strata Companies need to manage risk and navigate challenges effectively.

We leverage our team of experts, each specialising in different disciplines, to deliver a collaborative, informative, and essential approach that enables Strata Companies to navigate an ever-changing landscape.

Changes to WHS Legislation & Obligations as a PBCU It is crucial for Strata Companies to understand their responsibilities as a Person Conducting a Business or Undertaking (PCBU). Failure to comply can result in penalties.

Asbestos reports and safe work practices

Strata Titles legislation Recent amendments to the Strata Titles Act necessitate a more complex administrative and legal framework, which Strata Companies must understand and adhere to.

Insurability and risk profiles The complexity and diversity of commercial properties can present varying levels of risk, affecting insurability. Strata Companies must understand what factors can influence insurance premiums.

Taxation and revenue streams Strata Companies also have to consider taxation obligations and identify potential revenue streams from common areas to ensure financial viability.

At Realmark Strata, we don’t adopt a one-size-fitsall approach. We understand that commercial strata management needs to be as diverse and dynamic as the properties they oversee.

Our team of specialists collaborate across different disciplines to offer a well-rounded, informed, and effective approach to strata management.

To contact Realmark Strata, call 9328 0909.

With older buildings the requirement for Asbestos Reports and stringent safe work practices cannot be overstated.

Non-compliance can lead to health hazards and subsequent legal ramifications.

Post-COVID expectations The COVID-19 pandemic has reshaped the expectations and demands from commercial tenants. Remote working policies and health & safety measures have affected the utilisation of commercial spaces, making adaptive strategies necessary.

Facility availability on common property Increased expectations about facility availability on common property, such as meeting rooms, gyms, and lounges, have put additional pressures on Strata Companies to manage these spaces efficiently.

About Realmark Strata. Realmark’s clear commitment to managing strata properties is well beyond the everyday practicalities and compliance of property management. With our years of local in-depth experience with both commercial and residential complexes, we’re also well sought-after by developers and owners for our insights into the future requirements of their project after the registration of their strata plans. Luke Dwonie is an astute and experienced commentator on the property market and strata management.

Featured in many publications, Luke regularly contributes property opinion pieces and advice.

WINNER.

2022 REIWA Strata Management Agency of the Year.

WINNER.

2022 Strata Community Management Medium Business Award.

WINNER.

2022 CHU (WA) Strata Community 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 0909.

REALMARK STRATA

www.realmark.com.au/strata-management

The benefits of installing individual water meters

Q

The majority of owners in our survey strata voted to install individual water meters on each lot. We voted against it. Are we required to install a separate water meter at our cost?

We own a lot in a managed survey strata plan.

The strata company voted for all owners to install water meters so that each owner would be billed individually for their water usage.

We voted no, but a loud majority voted yes, as they have always been vocal about water usage.

We have now received an email saying we must organise the installation of our water meter. Our strata manager tells us that, as the property is a survey strata, it is our responsibility to do this, and it must be done. Is this correct? We have had this property since 2006. This has never been a problem before.

A

If there was a vote and a majority voted for the installation of water meters and billing, then yes, you would need to attend to the items agreed to at the meeting.

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Regarding the water meters, if there was a vote and a majority voted for the installation of water meters and billing, then yes, you would need to attend to the items agreed to at the meeting.

Currently, you are paying for water in your levies and water usage is calculated by unit entitlement.

Many strata schemes install individually billed water meters, allowing them to charge each lot based on usage. This is a fairer and more equitable manner of billing.

Another reason for the individual meters is to mitigate against excess water bill charges due to water leaks. In some schemes we’ve managed, lots had undetected leaks or detected leaks that failed to be repaired. The scheme paid thousands of dollars extra in water. Separate water meters assist with excessive water usage and in being able to detect leaks. Large water bills are easier to manage if the scheme can determine if the usage is in a lot or common area.

Jamie Horner | Empire Estate Agents JHorner@empireestateagents.com READ MORE HERE

PROGRAM & PRESENTERS MASTER OF CEREMONIES VERITY JAMES

CONNECTING TO THE MODERN BUSINESS ENVIRONMENT AND BEYOND CHRIS SMOJE

WHERE IS AI TAKING US? MING JOHANSON

PREPARING TO PIVOT: Anticipating the needs of Strata Communities DR NICOLE JOHNSTON

ADVANCING TECHNOLOGIES IN STRATA DESIGN Beach Shack Scarborough Case Study PATRIC PRZERADZKI & DAVE WILSON

FRIDAY 24 NOVEMBER 2023 CROWN, PERTH The CHU SCA (WA) Annual Convention and Awards Gala is the premier event for the strata industry in Western Australia.

Take this opportunity to join SCA (WA) for our biggest event of the year where over 200 strata industry members come together to gain insights into how to stay ahead of the curve by using innovative solutions to adapt to the evolving needs of the next generation of strata communities.

Featuring a full program of expert speakers, a trade show exhibition and extensive opportunities for networking, this convention will provide sponsors a perfect opportunity to connect and engage with members from across the Strata industry.

WA.STRATA.COMMUNITY/WA-CONVENTION

Strata Titles (WA): Can a council of owners withhold information from lot owners?

September 2023

Why would a council of owners want to withhold information from lot owners?

When a strata dispute ends up in proceedings in the State Administrative Tribunal (SAT), the council of owners might engage lawyers to assist them.

The situation can be potentially tricky to navigate where the council, which represents the strata company, is in dispute with a disaffected group of lot owners.

Imagine if half a dozen lot owners disagreed with a decision of the council on, say, installing a new elevator system.

On the one hand, such a group of people are opponents of the council and, therefore, the strata company.

On the other hand, that same group continues to have the same rights as all other lot owners. Those include their usual rights of access to information held by the strata company in general.

That information could be anything from minutes of a council meeting deciding what to do about the disaffected group, to legal advice received by the council.

© Civic Legal 2023

Key Points • The council of owners, representing the strata company, must give some kind of disclosure to lot owners.

• Where there is a dispute between the strata company and lot owners, they may refuse to disclose certain documents and information.

What an advantageous situation it would be to be able to see what your opponent’s lawyers have advised them!

So what happens when the disaffected group seeks information held by their ‘‘opponents’’, the council?

In normal litigation situations, an opposing party cannot obtain documents from their opponents if those are subject to legal protections such as confidentiality or legal professional privilege.

Yet, a council must give some kind of disclosure to all lot owners, including the disaffected group of owners, about SAT proceedings that have been taken against the strata company.

How can this be reconciled?

www.civiclegal.com.au

What guidance is there for the council of owners on whether to disclose information?

The Strata Titles Act 1985 (WA) (Act), read together with the common law, gives guidance as to how to treat documents related to legal or tribunal proceedings.

Section 198(2)(a) of the Act, in conjunction with s45(1)(b) of the State Administrative Tribunal Act 2004 (WA), requires the strata company to give notice or information about the SAT proceedings to all members.

However, the Act is silent on the rights and duties under the common law when it comes to disputed documents, such as those protected by confidentiality or privilege.

They are therefore entitled to access documents relating to the decisions of the council and also their correspondence with their lawyers.

Perhaps they would argue that the lawyers are engaged by the strata company and that all members of the strata company should be able to access them too.

The response of the council can reasonably be that confidentiality or privilege attaches to such documents.

Therefore, they are entitled to refuse to disclose them to any person. This would mean anyone, including lot owners and, therefore, the disaffected lot owners.

The basis for such a response would be that the strata company is, by law, a separate legal entity.

It can sue and be sued in its own name, just as any natural person can sue or be sued in their name.

What does confidential mean?

It follows that a council can quite reasonably say that confidentiality and privilege protect the communications between the strata company (as represented by the members of the council) and their lawyers.

But first, what is “confidential’’? Let’s say person A gives information to person B in circumstances where person B knows that it was not to be disclosed to any third party. In this situation, a court will enforce the obligation not to give disclosure.

And, of course, such documents could be highly valuable to an opponent, as they will disclose a view as to any tactics, strengths or weaknesses from the viewpoint of the strata company. The council is, therefore, fully entitled to refuse access to such documents.

What is legal professional privilege?

Contact

A full analysis of this topic is outside the scope of this article. However, simply put, the privilege gives a person the right to refuse to deliver to any third party such communications as occurred between them and their lawyer.

For assistance with strata issues, please contact:

This privilege is to encourage the highest level of confidentiality and frankness between lawyer and client. This is seen as necessary to support a good quality legal system.

How could the council of owners handle the question of confidentiality?

The debate between the disaffected group and the council could run like this.

The disaffected group could try to argue that they are entitled to access the documents of the strata company under s107(2)(a) of the Act as they are members of the strata company.

Anthony Quahe | Managing Principal T +61 8 9200 4900 E aquahe@civiclegal.com.au

Disclaimer: This article contains references to and general summaries of the relevant law and does not constitute legal advice. The law may change, and circumstances may differ from reader to reader. Therefore, you should seek legal advice for your specific circumstances. The law referred to in this publication is understood by Civic Legal as of publication date.

© Civic Legal 2023

www.civiclegal.com.au

Small changes bring big benefits to your building

Q

How do you keep track of your building’s assets like fire extinguishers and defibrillators?

These items are expensive, but increasing their security may be easier than you think!

A

You can easily track your building’s assets.

Did you know you can easily track your building’s assets? Products can be installed on items without anyone really knowing a tracker is there.

You can use trackers on defibrillators, fire equipment, even access keys. We’ve dealt with a lot of buildings where fire extinguishers have been taken or used without authorisation.

If a tradie accidentally takes the keys, you’ll know who has then and where they are.

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These products are really handy. You can set trackers up to send an alert when an item is moved. You’ll know if the fire extinguisher is being moved for servicing at 2 pm by a technician or if someone is messing around with it at 2 am on a weekend.

There are also products that can detect when something is happening like a flood in a pump room. If the water gets to a certain level an alert is activated, the plumber can get automatically notified and they can tend to the matter very quickly.

Jake Sharp | MiMOR jake@mimor.com.au READ MORE HERE

Unlocking Profit in Embedded Networks

by Sarah Shevy

A good Embedded Network Operator offers control and visibility over the energy network...

Embedded Networks have revolutionised the way electricity is distributed within multi-unit developments, offering a spectrum of benefits, from cost reduction to sustainability. A successful Embedded Network embraces cost-saving opportunities, renewable energy, energy storage solutions, and energy efficiency measures. Incorporating renewables into an Embedded Network reduces its carbon footprint; aligns with sustainability goals; and appeals to ecoconscious occupants. These aspects offer benefits to network owners, the occupiers, and for the environment. Key to realising the full potential of these networks is a proficient Embedded Network Operator (ENO).

What is an Embedded Network?

An Embedded Network is a private, local electricity network which distributes and sells electricity to all individual occupiers in a multi-tenanted building, including residential and commercial. A good ENO offers control and visibility over the energy network, enabling cost savings through bulk energy purchasing and a single network connection.

Buying Power In an Embedded Network there is bulk purchasing of the electricity at the Parent Meter at a reduced cost compared to what individual occupiers would pay in a non-Embedded Network.

It also means that instead of having multiple network connections, there is only one or few connections to the electricity grid, which reduces the cost for the whole building. And the owners, with the ENO, can direct those cost savings into discounts. These would not be realised otherwise with independent contracts from various electricity retailers.

Energy Efficiency Measures Energy efficiency is a driving force behind profitability in Embedded Networks.

Implementing energyefficient technologies and practices within the network leads to substantial benefits, by reducing consumption and offering enhanced control over where energy is used. An energy audit can identify opportunities to improve the efficiency of your Embedded Network.

Integration of Renewables One of the cornerstones of a profitable Embedded Network is the integration of renewable energy sources.

By harnessing the power of solar panels, wind turbines, or other renewables, a network can reap substantial benefits.

Solar Generation has emerged as a game-changer in Embedded Networks in strata buildings, offering reduced costs for building owners and occupiers if the solar array is properly dimensioned and orientated to match consumption. One of the benefits of onsite renewable energy sources is that they are a lower cost than traditional fossil fuels, resulting in reduced costs for occupants.

These savings are realised whilst the renewable asset is paid off over time by the Strata. Managing Director of Energy On, Clive Pearce states “Energy On is an advocate of solar being included with an embedded network. The solar panels can be used to meet the consumption of the common area and the occupiers in the most effective way.”

Increasingly, residents within existing Embedded Networks are demanding access to renewables, and some state governments require this for new Embedded Networks.

Moreover, properties with renewable energy integration tend to have higher market values, making them more appealing to potential buyers or renters, creating a win-win situation for everyone.

Energy Storage Solutions Energy storage systems, such as batteries, provide increased reliability and stability of the network during grid outages and optimise energy usage during peak periods which can reduce costs.

A good ENO will assess your site and make recommendations for energy storage. Whilst battery storage is in its infancy, lower costs will drive increasing interest in these solutions.

Features of a Good ENO It is essential to understand what to look for in a capable ENO to ensure your network operates optimally. A good ENO will identify the needs of the site and will operate the Embedded Network efficiently. They will offer transparency of network consumption, and provide full financial reporting to the Strata Management, as well as give superior customer service to occupiers.

Reporting Excellence A good ENO provides customisable reports that cater to the unique requirements of network owners, enabling the tracking of essential performance indicators and financial metrics. They deliver transparent and comprehensive reporting through realtime monitoring and offer timely and precise data on energy consumption.

Similarly, clear financial reporting is important to assist with Strata’s management of revenue, expenses, and budget responsibilities.

Transparency and Communication A reputable ENO builds trust and collaboration by prioritising open communication.

This includes transparent fee structures to ensure network owners and occupants understand service charges, accessible contract copies for them to review terms and conditions, and disclosure of energy sources, including renewables, to empower occupants in making environmentally conscious decisions.

Exceptional Customer Service Energy On distinguishes itself as an ENO through responsive and attentive customer service. This is achieved through multiple communication channels, efficient problem resolution processes addressing issues like billing discrepancies, and a commitment to providing educational support. This support includes informing occupants about concessions, explaining Embedded Networks, and offering guidance on energy conservation and efficiency to optimise energy usage effectively, ensuring customers receive excellent care. A customer portal assists occupiers with understanding their usage. Of course, from a customer point of view, billing transparency is a priority.

A good ENO will identify the needs of the site and will operate the embedded network efficiently.

If you're interested in discussing your Embedded Network, storage, or other energy management solutions, Energy On is here to help.

We're currently offering a complimentary initial phone consultation to explore your requirements. To get started, please don't hesitate to reach out to us, and we'll schedule a convenient time for you.

Email: Community@EnergyOn.com.au Phone: 1300 323 263

Equally vital is the selection of a capable Operator that excels in implementing the profitable Embedded Network and in reporting, transparency, and customer service. Embracing these fundamental elements enables Embedded Networks to realise their potential as sustainable, cost-effective, and environmentally friendly energy distribution systems, benefiting all stakeholders involved.

CONTACT US

1300 323 263

www.EnergyOn.com.au

Community@EnergyOn.com.au

Who is responsible for the removal of a 25 meter tree?

My backyard has a 25 meter high tree. Local Council have issued me with a notice to remove the tree. Is this my or strata’s responsibility?

I live in a unit in a 4 lot strata. A tree in my backyard is 25 metres high. It requires pruning.

The leaves above 15 metres are dead.

I received a notice from the Local Council to remove the tree.

The strata plan states: the stratum of part lot extends from 5 metres and 15 metres of the upper surface of the lowest floor level of the building on each respective lot.

Is it my or the strata’s responsibility to remove the tree?

It may be best to half the cost of the tree’s removal with the strata company as the Local Council can issue fines for noncompliance with their work order.

The portion of the tree that extends above the 15 metres height limit is in common property air space. Such a tree growing to that height appears to be unsuitable for the area.

The tree may be causing concern to your neighbours and strata owners. You must acknowledge that if the tree is dead or dying, it must be removed to avoid property damage to yourself and others. There is also the public liability aspect, which may impact the strata insurance policy.

It may be best to half the cost of the tree’s removal with the strata company as the Local Council can issue fines for noncompliance with their work order.

Shane White | Strata Title Consult shane.white@stratatitleconsult.com.au READ MORE HERE 24 www.lookupstrata.com.au

Insurance increases due to tattoo parlour tenant One owner has let their lot to a tattoo parlour in our commercial strata plan. This has caused our insurance premiums to increase dramatically, and we are finding it very hard to get insurance.

Can we pass on the increase in insurance premium costs to the tattoo parlour?

I’m a lot owner in a commercial strata plan.

One owner has leased their lot to a tattoo parlour.

Lot owners have nothing against the business. However, our insurance has dramatically increased.

The strata company is trying to get other quotes, but we can’t find specialist brokers to assist. Who provides this type of strata insurance? Can we pass on the increase in insurance premium costs to the tattoo parlour?

In Western Australia, the legislation includes a provision enabling a strata corporation to require an owner to cover additional premiums paid for the strata insurance related to risks on their lot – this would extend to tenants such as tattoo parlours.

Strata properties incorporating tattoo parlours often pose challenges when securing insurance. This is primarily because a significant number of strata insurers classify tattoo parlours as falling outside the scope of their underwriting guidelines. Finding insurers willing to provide cover for properties containing tattoo parlours is difficult.

While a few insurers might be willing to provide coverage for such properties, the above considerations contribute to the limited availability of insurance options. Unfortunately, these options will be substantially more expensive than if the property does not contain a tattoo parlour.

In Western Australia, the legislation (Strata Titles Act 1985 Section 98) includes a provision enabling a strata corporation to require an owner to cover additional premiums paid for the strata insurance related to risks on their lot – this would extend to tenants such as tattoo parlours.

26 www.lookupstrata.com.au

To facilitate this, the strata corporation should illustrate the premiums associated with the tattoo parlour. Receiving advice from a strata broker is recommended during this process. Strata Insurance Solutions has established a structured approach to support clients in this undertaking.

Section 98 Notice to member of strata company If it is reasonably necessary in order for a strata company to obtain the required insurance on reasonable terms, the strata company may give written notice to a member of the strata company requiring the member to do 1 or more of the following — (c) to pay a specified amount to the strata company within a specified period, being an amount equal to that part of the premium payable by the strata company for the required insurance attributable solely to the risk associated with something within the member’s control.

This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter.

Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances and the specific coverage afforded under their policy wording.

Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.

Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE

We’ve told the strata manager we’re not renewing. Now they’re even worse than before!

Q

Due to poor service, we’ve told our strata manager we will not renew the contract at the end of the year.

Now we receive even worse service.

Can we exit the contract early?

For over 12 months, our council of owners has had terrible service from our strata company.

We’ve experienced a lack of communication, no follow-up on requests for work to be carried out, and a portal that constantly crashes, leaving the council with no way to track the progress of jobs. We’ve asked for feedback from residents, and they feel the same way.

Our contract expires at the end of November, and we have informed the strata management company that we will not renew their contract.

The council have identified the company we want to engage.

However, now that they know we are not continuing the relationship, we receive even less communication and service. The contract doesn’t have an early exit clause. The council has yet to have advice from a lawyer. Should we approach the strata managers and request to end the contract early, or do we need to see it through to the end of the contract period?

A

The strata company could consider seeking the assistance of a lawyer who specialises in strata law to assist with the preparation of a show cause notice.

As a first point of action, I always recommend communicating your thoughts, concerns and feelings to your agent in writing. Also, consider picking up the phone and talking with the license or manager. I recommend you approach this calmly and non-aggressively, sticking to facts. You may be able to negotiate the early exit of your contract with the agent.

Should you feel the agent is not meeting the agreed service provision under the management 28 www.lookupstrata.com.au

authority, you may consider discussing this with the agent and suggest a reduction in fees based on the level of service provided. Relating these conversations back to the contract and the agreed services is important. Often, the strata company’s expectations regarding what services the strata manager is to perform are outside the contractual agreement.

Failing this, if you are contracted with the agent until November, the only way to exit earlier would be if there are grounds to do so under section 151 of the Strata Titles Act 1985:

151. Termination of strata management contract 1. T here are proper grounds for termination of a strata management contract by a strata company if — a. the strata manager has contravened this Act; or b. the strata manager has contravened the contract; or c. the strata manager is, according to the Interpretation Act 1984 section 13D, a bankrupt or a person whose affairs are under insolvency laws; or d. the strata manager is a Chapter 5 body corporate within the meaning given in the Corporations Act 2001 (Commonwealth) section 9; or e. the strata manager, or a director or chief executive officer of the strata manager, is convicted in this State of an offence punishable by imprisonment for 12 months or longer and the strata company is satisfied that the offence affects the strata manager’s suitability to perform the strata manager’s functions; or f. the strata manager, or a director or chief executive officer of the strata manager, is convicted outside this State, in Australia or elsewhere, of an offence that, if it had been committed in this State, would be punishable by imprisonment for 12 months or longer and the strata company is satisfied that the offence affects the strata manager’s suitability to perform the strata manager’s functions.

2. I f a strata company is satisfied that there are proper grounds for termination of a strata management contract, the strata company may terminate the contract by giving the strata manager written notice of termination—

a. specifying the date (being not less than 28 days after the date of the notice) on which the termination will take effect; and b. i nforming the strata manager of the right to apply to the Tribunal for review of the decision to terminate the contract.

3. Before a strata company terminates a strata management contract under subsection (2), the strata company must give the strata manager a notice (a show cause notice).

4. A show cause notice must — a. be in writing; and b. s tate that the strata company proposes to terminate the strata management contract; and c. specify the grounds on which it is proposed to terminate the strata management contract; and

f. s pecify the period (being at least 14 days after the date of the notice) within which the written submissions must be received by the strata company.

5. A strata company must give proper consideration to any written submissions made by the strata manager within the period specified in the show cause notice.

Nothing in this section affects the operation of section 115 in relation to a strata management contract or any other right that the strata company may have to terminate the contract.

The strata company should seek the assistance of a lawyer who specialises in strata law to assist with the preparation of a show cause notice. An appropriate lawyer would be able to ensure that the notice meets the requirements of the ACT. Luke Downie | Realmark ldownie@realmark.com.au

d. s et out particulars of the facts relied on as evidence of those grounds; and e. invite the strata manager to make written submissions to the strata company as to why the strata management contract should not be terminated; and

We are a proudly Western Australian firm that advises on strata law Our experienced team assists strata managers, council members and individual lot owners with clear and practical advice.

Call us today to find out how we can help you resolve your strata issues.

Contact us Call 9200 4900 or email Elizabeth at admin@civiclegal.com.au civiclegal.com.au

READ MORE HERE

SAFEGUARDING TOMORROW:

THE VITAL ROLE OF 10 YEAR RESERVE FUND PLANS FOR STRATA PROPERTIES Is it time to review your 10 Year Plan?

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.

INTRODUCTION Strata properties require diligent financial planning to ensure the sustainability and prosperity for the owners and our community in general.

One indispensable tool for achieving this is the 10 Year Reserve Fund Plan. It is critical to remember that the legislation created a purpose for these plans and this is primarily as a budgeting tool. It is not a requirement to have an asset register nor a defects or building condition report.

Our words for 10 Year Reserve Fund Plans uniquely are

• • •

It is a Savings Plan not a Spending Plan It is based on a User Pays System (saving for the future replacement of major capital items ‘today’) It is a budgeting tool.

BROAD POINTS TO CONSIDER 1 FINANCIAL STABILITY For residents of strata properties, financial stability is paramount. A 10 Year Reserve Fund Plan serves as a financial lifeline, offering peace of mind in an ever-changing economic landscape. By building up reserves during prosperous times, strata communities can safeguard themselves against unforeseen expenses, such as emergency repairs or unexpected maintenance projects. This financial cushion ensures that residents can enjoy uninterrupted property services without experiencing the burden of sudden and substantial levies.

2 PROPERTY MAINTENANCE Maintaining strata properties in top condition is essential for preserving property values and ensuring a comfortable living environment. In addition to having sufficient funds for routine maintenance, strata communities require funds for the repairs, or upgrades of items of a capital nature.

A 10 Year Reserve Fund Plan facilitates planned property upkeep, allowing strata owners to address issues promptly and avoid costly, last-minute fixes. This proactive approach fosters a sense of pride in the property, enhances curb appeal, and promotes long-term property value appreciation.

It also signals to an insurer that the strata scheme has the ability to make their property safer.

3 COMMUNITY DEVELOPMENT Thriving strata communities are built on the foundation of effective planning and development. A well-structured 10 Year Reserve Fund Plan enables strata committees to allocate resources for community enhancements, such as landscaping, recreational facilities, and security upgrades.

These improvements not only enhance the overall quality of life for residents but also make strata properties more attractive to potential buyers, contributing to a stronger sense of community and belonging.

4 SUSTAINABLE LIVING Western Australia’s commitment to sustainability extends to its residential strata properties. These communities can play a significant role in reducing their environmental footprint. A 10 Year Reserve Fund Plan allocates resources for eco-friendly initiatives, such as energy-efficient lighting, water conservation projects, and waste reduction programs.

By investing in sustainable practices over the long term, strata communities can contribute to a greener, more environmentally conscious Western Australia.

5 RISK MITIGATION Unforeseen challenges can arise at any time, from unexpected property damage to economic uncertainties.

A 10 Year Reserve Fund Plan acts as a crucial risk mitigation strategy. It ensures that strata communities are financially prepared to respond to emergencies swiftly and efficiently without imposing undue financial burdens on residents.

This readiness enhances the resilience of strata properties and allows for timely problem resolution.

CONCLUSION For residents of strata properties in Western Australia, the importance of 10 Year Reserve Fund Plans cannot be overstated. These financial strategies are not mere documents but vital tools for securing the future.

They promote financial stability, property maintenance, community development, sustainable living, and risk mitigation within strata communities. As Western Australia continues to grow and evolve, embracing and implementing these plans will be instrumental in ensuring a secure and prosperous future for strata property residents, fostering vibrant and thriving communities across the region.

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. © Wal Dobrow 2023

Must the council of owners provide the choice to attend the AGM in person?

Is it a breach of legislation if the AGM is conducted only via Zoom and not in person at a designated location?

The legislation does not stipulate a meeting MUST be held in person.

The legislation does not stipulate a meeting MUST be held in person. Only that the location must be stipulated within the notice (Strata Title Act 1985 Section 129(2)(a) – Notice requirements for all general meetings).

However, it would likely be in the best interest of the strata company to offer a means to attend in person for those who wish to do so or are unable to attend remotely. (Strata Title Act 1985 Section 131(1) – Holding meetings remotely).

Section 131 Holding meeting remotely 1. A person (including a proxy of a member of a strata company) may, in accordance with any requirements of the scheme by-laws, attend, and vote, at a meeting of a strata company by telephone, video link, internet connection or similar means of remote communication (provided that provision of relevant facilities does not place an unreasonable burden on the strata company).

2. A person attending a meeting by remote communication is taken to be present at the meeting.

Rick Blampey | SVN Perth rblampey@svn.com.au READ MORE HERE

32 www.lookupstrata.com.au

33

INSURANCE REPLACEMENT VALUATIONS WHAT IS AN INSURANCE REPLACEMENT VALUATION AND WHY IS IT NEEDED? An Insurance Replacement Valuation must be carried out to ascertain a precise and comprehensive value for an insurance policy. This is to protect the building and its owners from the potential losses that could result from a disaster such as a fire, flood, cyclone or other natural disaster. It is not uncommon for the replacement value on an insurance policy to be vastly underestimated, placing the building's owners in a vulnerable financial position. The value of cover needs to cover the costs for re-building a like for like building in terms of size and quality in accordance with present day building codes.

WHO SHOULD PREPARE AN INSURANCE REPLACEMENT VALUATION? Preparing an Insurance Replacement Valuation requires expertise in construction costs, market conditions and the relevant local legislation and insurance requirements. Professional Quantity Surveyors are best suited to provide this skillset. The core skills of a Quantity Surveyor includes measurement of building areas, estimating construction costs of buildings, assessing current market conditions and a technical understanding of construction techniques.

WHAT IS INCLUDED/EXCLUDED FROM THE VALUATION REPORT? An Insurance Replacement Valuation should include the following costs:

The following items are not usually covered in an Insurance Replacement Valuation:

Capital Construction Costs of Building, External Works and Services Construction Contingency Demolition Costs Professional Fees Development Application Fees Escalation during the Design and Documentation Period Escalation During the Lapse Period

Loose furniture, fittings and equipment (contents) Tenancy fit out costs Loss of revenue/profit Temporary accommodation costs during the re-building phase Legal fees Financing costs

Replacement values should be reviewed annually. Additionally, if there have been any asset improvements, refurbishments or extensions then the value will need to be updated as soon as possible to ensure the full value is covered.

Rawlinsons Cost Management have been in operation for 70 years. Their team are highly experienced Quantity Surveyors who provide detailed and accurate Insurance Replacement Valuation Reports in accordance with the Australian Institute of Quantity Surveyors (AIQS) best practice and are compliant with local legislative and insurance requirements.

Rawlinsons research, compile and edit annual publications on Australian construction cost data which covers all Australian states and territories. Rawlinson Australian Construction Handbook is the most extensive library of cost data in Australian. This cost data is used by the team when compiling Insurance Replacement Valuations and ensures that the information used is up to date and in line with current market conditions.

Engaging with Rawlinsons Cost Management to undertake your next Insurance Replacement Valuation will ensure you reduce your risk and can have confidence that the cost of your most valuable asset is adequately insured.

Are Your Strata Properties Adequately Insured?

Rawlinsons Insurance Replacement Valuations www.rawlinsonswa.com.au

Are our car bays common property or lot property?

Our car bays show “for the use of no XX” on our strata plan.

Are they common property or lot property?

Can our council of owners request the use of my designated car bay in WA? The car bays are on the strata plan registered with Landgate. Beside each car bay on the plan is printed “for the use of no XX”.

The council of owners decided to meet at a few car bays and requested the relevant owners temporarily move their cars. How can they ask this if the space is part of an owner’s lot?

For the car bay to be legally allocated to the lot, you must have a registered by-law confirming the exclusive use.

The car bays may be common property.

Unfortunately, many older schemes note this on their strata plan, but “for the use of no XX” has no effect unless a by-law has been registered.

For the car bay to be legally allocated to the lot, you must have a registered by-law confirming the exclusive use, then the car bay is lot property. If there is no registered by-law, they are common property.

Many schemes have overcome this by registering an exclusive use governance by-law, which requires a resolution without dissent.

Jamie Horner | Empire Estate Agents JHorner@empireestateagents.com READ MORE HERE

36 www.lookupstrata.com.au

What makes us Perth’s leading Strata Managers?

STRATA OWNERS VIEW ON SERVICE AREAS 2022

8.47

8. 80

8. 35

7.86

7.90

7.59

7.60

8. 74

8. 88

Communication Level

Annual General Meeting Performance

Attendance to Maintenance Issues

Resolution of Conflicts

Handling of Levy Arrears

Assisting & Lodging of Insurance Claims

Issuing Breaches of By-Laws

General Strata Enquiries

Strata Titles legislation Knowledge

MULTI AWARD WINNERS REIWA FINALIST AWARDS FOR EXCELLENCE

2017

REIWA FINALIST AWARDS FOR EXCELLENCE

2018

REIWA FINALIST AWARDS FOR EXCELLENCE

2019

STILL GROWING! 2022

23% GROWTH IN LOTS

121% GROWTH IN LOTS

2022

17% GROWTH IN SCHEMES

190% GROWTH IN SCHEMES

Since Jan 2021 Since Jan 2021

CREATING BETTER COMMUNITIES Our Licensee would love to hear from you Jamie Horner - 9262 0400 - jhorner@empireagents.au

Mastering the Art of Strata Management 966 Albany Highway, East Victoria Park, Western Australia 6101 E: reception@empireestateagents.com W: www.empireestateagents.com

Government of Western Australia

Department of Mines, Industry Regulation and Safety Real Estate & Business Agents Licence 81794

From a records management perspective, what does a well run building look like?

Q

A

When looking at a strata building from a records management perspective, what does a well run building look like compared to a poorly run building? What are the warning signs?

With a well run building, there is greater transparency and good communication.

38 www.lookupstrata.com.au

To start with, let’s talk about the well run buildings. What stands out to us when looking at the records from a well run building is greater transparency and good communication.

When we look at the AGM, we see that the strata committee includes an annual summary with the minutes. The summary tells the owners what’s happened, about any issues and what the committee’s proposals are to solve those issues.

In other words, we get good vibes.

On the other hand, we get the opposite vibes from the records when decisions are deferred or the owners corporation doesn’t want to spend money they should be spending. We get the feeling that this building will perhaps gradually fall behind.

We’re making an assessment based only on the records without actually seeing the building.

When we talk to buyers about what they’ve seen at the building, there’s often a correlation between the good and bad vibes we get from the records, and that’s a really important thing.

Michael Ferrier | Eyeon Property Inspections michael.ferrier@eyeon.com.au READ MORE HERE

Can we contract with our strata manager on a short-term basis?

Q

We are approaching the expiry of the current strata management contract and wish to find new management. We have yet to decide on a new strata manager.

Can we contract with the current company on a short-term basis – i.e. three months?

The strata management contract for our 14 scheme lots runs out in a few weeks. The council of owners is seeking to find new management, as we have not been happy with the service provided by our current management company.

Unfortunately, we need more time to research other management companies for various reasons, e.g. poor health. Is there any provision in the legislation to renew the contract with the current management company on a short-term basis – i.e. three months? If they disagree with a short-term extension, where does that leave the scheme and the council of owners?

A

There is no reason why your strata company can not negotiate with the strata manager to provide a short term contract to facilitate due process in appointing a strata manager.

Selecting a strata manager to appoint as an agent to your strata company is an important task and not a decision that should be rushed.

40 www.lookupstrata.com.au

In any circumstance, if a strata company is not happy with the service provided by their existing agent, I encourage them to have an open conversation with the agent and express their concerns. Work with your strata manager to help them understand your strata company’s needs and resolve your concerns.

I often find concerns owners raise relate to tasks outside the management authority’s agreed services.

Your strata manager will be aware that section 144 of the Strata Titles Act 1985 requires that a person is not authorised to perform functions as a strata manager unless a contract is in force between the strata manager and the strata company, so any lapse in contract prohibits the strata manager from acting on behalf of the strata company.

If in agreement, there is no reason why your strata company cannot negotiate with the strata manager to provide a short term contract to facilitate the due process in appointing a strata manager. Three months is a reasonable time frame to achieve this. It would also be prudent to ensure that the relevant authorities are provided for the council to proceed with the selection process, that being sufficient budgeted expenditure via the strata company budget and authority under section 118 of the Strata Titles Act 1985.

Luke Downie | Realmark ldownie@realmark.com.au READ MORE HERE

Your source of reliable Strata news and information since 2013 Providing detailed, practical, and easy to understand strata information to all Australians.

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Is a no dog by-law valid?

We have registered a no dog by-law. Does our by-law override the new WA tenancy laws that allow pets?

Our strata company has recently registered a by-law in our 24-unit complex stating no dogs are allowed. We have discovered one resident has a dog, though curiously, didn’t vote against the by-law.

Is there a procedure to allow this one dog for as long as it lives but not any other dogs?

Does our by-law override the new WA tenancy laws that allow pets?

42 www.lookupstrata.com.au

You should obtain legal advice about whether the by-law is invalid and the appropriate wording to limit the risk that the by-law is invalid.

The answer to your first question depends on the terms of the by-law. A by-law about pets should be drafted to give the strata company the power to agree to a person keeping pets in certain circumstances.

For example, a by-law along the following lines may be appropriate: “An owner or occupier or a lot must not keep animals on the lot or the common property without the written consent of the council, which consent must not be unreasonably refused.”

If the by-law for your strata does not give the council the power to approve pets, it may be worthwhile to consider an amendment to the by-law, which would allow the council to address the current circumstances.

It is possible the by-law will be invalid if it is inconsistent with the new WA tenancy laws that allow pets, but this will depend on the wording of the law (once it is passed). This is because section 46(b) and 46(f) of the Strata Titles Act 1985 (WA) provide that by-laws are invalid to the extent that they are inconsistent with any written law (in this case, the Residential Tenancies Act), and to the extent that they restrict the lease of a lot.

It is also possible that the by-law may be invalid, even before the introduction of the new WA tenancy laws, depending on the circumstances and wording of the by-law. In a recent case in New South Wales, a by-law containing a prohibition on keeping animals was found to be invalid (Cooper v The Owners – Strata Plan No 58068 [2020] NSWCA 250).

This question has not yet been settled in Western Australia but was considered in the context of holiday accommodation in Steele and The Owners of Cocos Beach Bungalows [2021] WASAT 101).

You should obtain legal advice about whether the by-law is invalid and the appropriate wording to limit the risk that the by-law is invalid.

Tahnee Watson | Douglas Cheveralls Lawyers tahnee@dclawyers.com.au READ MORE HERE

Looking for a Trusted and Professional Strata Manager?

OVER 28 YEARS OF INDUSTRY EXPERIENCE AND EXPERTISE 100% WA OWNED AND OPERATED FAMILY BUSINESS FAST AND EFFECTIVE MAINTENANCE NETWORK STRATA COMMUNITY ASSOCIATION ACCREDITED STRATA MANAGERS For an obligation free quote and proposal please contact Alex Burnett at Chambers Franklyn P 9440 6222 E strata@chambersfranklyn.com.au W www.chambersfranklyn.com.au

C h a m b e r s F r a n k ly n STRATA MANAGEMENT

Entryway Enchantment How Tiny Tweaks Transform Towering Transactions!

In an increasingly tight housing market, you’d be surprised at the difference small changes can make to the impression your building leaves and how happy you feel living there.

Before

‘Kerb appeal’ is not just applicable to standalone homes, it applies to strata common property as well.

An often-overlooked aspect of strata buildings is the lobby. As a resident in a building, you walk through your lobby every day, but do you really see it? Or does human nature habitually acclimatise you to its appearance and features? Ask yourself, what does a

Example of the difference a lobby facelift can make.

potential buyer or renter see? Better yet, ask an agent.

The lobby is more than just a place to enter the building, it is the face of the community, and the first impression potential buyers or renters will notice when they step inside.

We have been told by real estate agents people commonly drive up to a strata building to go to a home showing, who have then

By Strata Community Association (WA)

wa.strata.community admin.wa@strata.community

After

subsequently turned around around and hopped back in the car without going in when the entry wasn’t appealing.

By working together with the community in your building, you can work to implement cost-effective improvements for a small personal spend.

The lobby is the heart of the building, and no matter how beautiful your apartment is inside, in a world where first impressions matter, so too does the impression your lobby creates.

It’s important to view lobby improvements as an investment not an expense. Not only will it allow for aesthetic improvements, and likely also contribute to the improved security and energy efficiency of the common area, but it will significantly contribute to the Return on Investment (ROI) for your property. An attractive lobby is a mechanism to dramatically increase the attractiveness, saleability or rentability of your apartment.

By making a few small changes, you may create a welcoming and secure lobby that could be the key to selling or renting your home, or simply maintaining its value.

As more and more new apartment buildings are developed and built across WA, your building is competing with these new buildings and their nice new lobbies and facilities. If you can, we urge you to go and have a look at the latest building erected in your area; you might be shocked at how different the lobby looks from your own building.

Don't forget, in a strata community you own the common property along with your fellow owners, (not just your apartment). It’s not someone else's responsibility, but all of yours. It all starts with a discussion at your next strata company meeting.

In an era plagued by a growing cost-of-living crisis, finding ways to make apartments more sellable or rentable without breaking the bank is essential. And having a more attractive journey through your complex it great for you and your guests.

The good news is, through a few small tweaks to your lobby, it can look just as good as any new building.

And before you discount this idea because it might be too expensive, remember one of the many benefits of living in strata is the financial responsibility for common property improvements can be spread (fairly) across all owners.

Before

After

SCA (WA) Upcoming Events Owner Forum Strata Plans & By-Laws Date: 19 October 2023 Time: 6pm - 8pm Cost: $35

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The Independent Voice of Strata Owners W: https://ocn.org.au/ E: enquiries@ocn.org.au

Your Strata Property

Demystifying the legal complexities of apartment living W: https://www.yourstrataproperty.com.au/ E: amanda@yourstrataproperty.com.au

ACCOUNTANTS Tinworth & Co

Chartered Accountant & Strata Auditors P: 0499 025 069 W: https://www.tinworthaccountants.com.au/ E: caren.chen@tinworth.com

Matthew Faulkner Accountancy

Strata Auditing specialists P: 0438 116 374 W: https://www.mattfaulkner.accountants/ E: matt@mattfaulkner.accountants

SOFTWARE Mimor

Connecting People – Creating Communities P: 1300 064 667 W: https://www.mimor.com.au/ E: info@mimor.com.au

Stratabox

Building Confidence P: 1300 651 506 W: https://stratabox.com.au/ E: contact@stratabox.com.au

StrataMax

Streamlining strata P: 1800 656 368 W: https://www.stratamax.com/ E: info@stratamax.com

MYBOS

Building Management - Residential & FM Schemes P: 1300 912 386 W: https://www.mybos.com/ E: sam@mybos.com.au

StrataVault

Connecting people, processes, and applications P: 1300 082 858 W: https://globalvaults.com.au/ E: team@thestratavault.com

Urbanise

Automate your workload to increase efficiency P: 1300 832 852 W: https://www.urbanise.com/ E: marketing@urbanise.com

Resvu

Customer Service Software for Strata P: 08 7477 8991 W: https://resvu.io/ E: enquiries@resvu.com.au

VALUERS Adelaide StrataVal

Strata & Community Insurance Valuations P: 08 7111 2956 W: https://www.strataval.com.au/ E: valuations@strataval.com.au

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BUILDING ENGINEERS & INSPECTORS Sedgwick

Building Consultancy Division & Repair Solutions W: https://www.sedgwick.com/solutions/global/au E: sales@au.sedgwick.com

QIA Group

Compliance Made Easy P: 1300 309 201 W: https://www.qiagroup.com.au/ E: info@qiagroup.com.au

BIV Reports

Specialist in Strata Compliance Reports P: 1300 55 18 30 W: https://www.biv.com.au/ E: biv@biv.com.au

GQS

Quantity Surveyors & Building Consultants P: 1300 290 235 W: https://gqs.com.au/ E: info@gqs.com.au

Leary & Partners

Quantity surveying services since 1977 P: 1800 808 991 W: https://www.leary.com.au/ E: enquiries@leary.com.au

Budget Vals

Built For Strata P: 1300 148 150 W: https://www.budgetvals.com.au/ E: reports@budgetvals.com.au

Solutions in Engineering

Quality Reports On Time, Every Time!

P: 1300 136 036 W: http://www.solutionsinengineering.com/ E: enquiry@solutionsinengineering.com

Mabi Services

Asbestos, Safety & Building Consultants P: 1300 762 295 W: https://www.mabi.com.au/ E: info@mabi.com.au

HFM Asset Management Pty Ltd Leaders in Building Efficiency P: 0407 734 260 W: https://www.hfmassets.com.au/ E: david.chokolich@hfmassets.com.au

Quality Building Management

Keeping your buildings legally compliant and safe P: 1300 880 466 W: https://qbm.com.au/ E: inspections@qbm.com.au

Independent Inspections

Sinking Fund Forecast, Insurance Valuations, OHS P: 1300 857 149 W: https://www.iigi.com.au/ E: admin@iigi.com.au

BCRC

Construction Materials & Durability Consultants P: 02 9131 8018 W: https://bcrc.com.au/ E: sydney@bcrc.com.au

PARKING Delineation Line Marking

Perth’s Line Marking Service P: 0497 314 758 W: https://delineationlinemarking.com/ E: Geoff@delineationlinemarking.com

FACILITY MANAGEMENT LUNA

Building and Facilities Manager P: 1800 00 LUNA (5862) W: https://www.luna.management/ E: info@luna.management

RFM Facility Management Pty Ltd

Strata and Specialist Cleaners P: 1300 402 524 W: https://www.rfmfacilitymanagement.com.au/ E: nathan@rfmfacilitymanagement.com.au

FRANCHISERS Network Pacific Strata Franchise

Join our successful team P: 03 9999 5488 W: www.networkpacificstratafranchise.com.au/ E: networkpacific@franchisedevelopments.com.au

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INSURANCE Strata Insurance Solutions

Protecting owner assets is who we are P: 1300 554 165 W: https://www.stratainsurancesolutions.com.au/ E: info@stratainsurancesolutions.com.au

PSC Property Lync Insurance Brokers The Lync to Safer Strata P: 1300 127 503 W: http://www.lyncinsure.com.au/ E: info@lyncinsure.com.au

Whitbread Insurance Brokers Empower Your Vision P: 1300 424 627 W: https://www.whitbread.com.au/ E: info@whitbread.com.au

CHU Underwriting Agencies Pty Ltd

Specialist Strata Insurance Underwriting Agency W: https://www.chu.com.au/ E: info@chu.com.au

Strata Community Insurance

Protection for your strata property. And you.

P: 1300 724 678 W: https://www.stratacommunityinsure.com.au E: myenquiry@scinsure.com.au

Flex Insurance

Your Cover Your Choice P: 1300 201 021 W: https://www.flexinsurance.com.au/ E: info@flexinsurance.com.au

Driscoll Strata Consulting

Knowledge | Experience | Service P: 0402 342 034 W: https://driscollstrataconsulting.com.au/ E: enquiries@driscollstrataconsulting.com.au

STRATA LAWYERS Civic Legal

Bringing Clarity to Complexity W: http://www.civiclegal.com.au/ E: admin@civiclegal.com.au

Bugden Allen Graham Lawyers

Australia’s leading strata law experts P: 02 9199 1055 W: https://bagl.com.au/ E: info@bagl.com.au

Grace Lawyers

Know. Act. Resolve.

W: https://gracelawyers.com.au/ E: enquiries@gracelawyers.com.au

Douglas Cheveralls Lawyers

The Go-To Strata Lawyers P: 08 9380 9288 W: https://www.dclawyers.com.au/ E: office@dclawyers.com.au

STRATA LOAN PROFESSIONALS StrataLoans

The Experts in Strata Finance P: 1300 785 045 W: https://www.strata-loans.com/ E: info@strata-loans.com

Lannock Strata Finance

The Leading Strata Finance Specialist P: 1300 851 585 W: https://lannock.com.au/ E: strata@lannock.com.au

Austrata Finance

Pay Now or Pay Later: It’s Your Choice® P: 1300 936 560 W: https://austratafinance.com.au/ E: info@austratafinance.com.au

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STRATA MANAGEMENT B Strata

Best People. Best Systems. Best Practices.

P: 08 9382 7700 W: https://www.bstratawa.com.au/ E: admin@bstratawa.com.au

Realmark Strata

Creating better result for strata.

P: 08 9328 0909 W: https://www.realmark.com.au/strata-management E: strata@realmark.com.au

Chambers Franklyn Strata Management

Providing professional Strata Management services P: 08 9440 6222 W: https://chambersfranklyn.com.au/ E: strata@chambersfranklyn.com.au

Empire Estate Agents

Everyday Heroes...Going Beyond P: 08 9262 0400 W: https://www.empireestateagents.com/ E: jhorner@empireestateagents.com

ESM Strata

WA’s Largest Dedicated Strata Management Company

Emerson Raine Supporting you in strata P: 08 9227 6274 W: https://www.emersonraine.com.au/ E: hello@emersonraine.com.au

Southern Strata Services

Strata Management Services in Western Australia P: 08 9478 6881 W: https://www.southernstrataservices.com.au/ E: admin@southernstrataservice.com.au

Strata Property WA

We believe that our best asset, is yours P: 08 9370 5339 W: https://stratapropertywa.com.au/ E: office@stratapropertywa.com.au

SVN | Strata Management

Global Strength - Local Presence P: 08 9427 7955 W: https://perth.svn.com.au/ E: info@svnperth.com

Logiudice Property Group Perth Strata Specialists!

P: 08 9368 5888 W: https://perth.svn.com.au/ E: admin@lpg.com.au

P: 08 9362 1166 W: https://esmstrata.com.au/ E: support@esmstrata.com.au

CLEANING / CLEAN AIR

Oakfield

Armstrong Shine

Experts in Strata P: 08 6355 5225 W: https://oakfield.com.au/ E: admin@oakfield.com.au

Abode Strata Management

For People in WA Who Value their Property Investment

P: 08 9368 2221 W: https://www.abodestrata.com/ E: jordan@abodestrata.com.au

magixstrata

We listen!

P: 08 6559 7498 W: https://www.magixstrata.com.au/ E: info@magixstrata.com.au

Window Cleaning Specialists P: 0429 948 070 W: https://www.lpg.com.au/ E: info@armstrongshine.com.au

CLOTHESLINES Lifestyle Clotheslines

Clothesline and washing line supplier & installer P: 1300 798 779 W: https://www.lifestyleclotheslines.com.au/ E: admin@lifestyleclotheslines.com.au

ELECTRICAL Energy On Pty Ltd

P: 1300 323 263 W: https://www.energyon.com.au/ E: EnergyServices@EnergyOn.com.au

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DEFECT RESTORATION Metrowest Service Pty Ltd

Single source solution for all maintenance needs W: https://metrowest.com.au/ E: info@metrowest.com.au

INVESTMENT SERVICES Strata Guardian

Fight low returns and rising levies with us.

P: 1300 482 736 W: https://www.strataguardian.com/ E: contact@strataguardian.com

PLUMBING Tunnel Vision (WA) Pty Ltd

Blocked Drain and Nuflow Pipe Relining Specialists P: 08 9417 1563 W: https://www.tunnelvision.com.au/ E: operations@tunnlevision.com.au

SUSTAINABILITY & ENERGY Energy-Tec

Sub Meter Reading and Billing Services P: 08 9309 0000 W: https://www.energy-tec.com.au/ E: service@energy-tec.com.au

The Green Guys Group

Australia’s Leading Energy Saving Partner W: http://greenguys.com.au/ E: sean@greenguys.com.au

Arena Energy Consulting Pty Ltd

Independent Embedded Network Consulting Services P: 1300 987 147 W: https://www.arenaenergyconsulting.com.au/ E: info@arenaenergyconsulting.com.au

CONSULTING Strata Solve

Untangling strata problems P: 0419 805 898 W: https://stratasolve.com.au/ E: chris@stratasolve.com.au

PAINTING Dulux Property Services

Total Building Maintenance & Remedial Solutions P: 0411 152 430 W: https://www.duluxconstructionsolutions.com.au/ E: propertyservices@dulux.com.au

Calibre Painting

Exceptional commercial painting services.

P: 0423 800 153 W: https://calibrepainting.com/ E: grant@calibrepainting.com

Higgins Coatings Pty Ltd

Specialist painters in the strata industry W: https://www.higgins.com.au/ E: info@higgins.com.au

STRATA REPORTS EYEON Property Inspections

Buy and Sell with More Confidence P: 1300 798 274 W: https://www.eyeon.com.au/ E: info@eyeon.com.au

Rawlinsons

Calculated Confidence P: 08 9424 5800 W: https://www.rawlinsonswa.com.au/ E: info@rawlinsonswa.com.au

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LIFTS & ELEVATORS Innovative Lift Consulting Pty Ltd

Australia’s Vertical Transportation Consultants P: 0417 784 245 W: https://www.ilcpl.com.au/ E: bfulcher@ilcpl.com.au

DELIVERY & COLLECTION SERVICES Groundfloor™

Australian parcel, mail, and refrigerated lockers P: 03 9982 4462 W: https://groundfloordelivery.com/ E: ask@groundfloordelivery.com

MARKETING

The Lift Consultancy

Trusted Specialised Advice P: 07 5509 0100 W: https://theliftc.com/ E: sidb@theliftc.com

Ki Creative Design

Purposeful Design Solutions P: 0451 541 006 E: kiara.mcilroy@gmail.com

ABN Lift Consultants

A team of friendly, open minded professionals P: 0468 659 100 W: https://www.abnlift.com/ E: andrew@abnlift.com

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