Author: Lindsey

Mailbox theft on the rise

Posted on by Lindsey

You may be aware that there has been some coverage regarding mail theft from strata buildings, resulting in stolen identities and theft from resident’s bank accounts.

You might also recall that this same issue was widely addressed in the media some 12 months ago.

It is said that strata buildings are targeted mainly because there is access to multiple letterboxes in the one place and the original letter box locks are flimsy or have not been upgraded from the master key system.

Statistics show an increase of mailbox theft of 37 percentage in North Sydney and up 45 percent in Hornsby.

Stolen mail and packages aren’t new problems for strata communities to be dealing with, but it’s the scale of the modern problem that requires our attention especially around the holiday period.

Targeted by criminals for identity crime, the mail rooms and doorsteps of strata communities have long been the target of fraudsters, and this year could be the ‘perfect storm’ for identity theft.

With online shopping and home deliveries taking off thanks to COVID-19, we’re concerned that communities nationwide need to up their game on security.

Common signs that your identity has been stolen are:

  • calls from creditors, debt collectors, or solicitors
  • new credit cards arriving
  • unexpected denial of credit
  • refusal of services such as mobile phone
  • bills arriving for goods you didn’t order
  • unfamiliar charges or bank withdrawals

If you witness suspicious activity, you should call the police immediately!

Consider this as a holiday security game plan:

Seek advice

If you have mailbox theft concerns, speak to your building manager or other residents who may have addressed similar security problems at another property and suggest ideas to enhance your mailbox security.

Upgrade your mailbox or lock

All apartment buildings should have mailboxes with sturdy locks. Flimsy locks can be pried open by screwdrivers and other tools.

If the committee wants to improve mailbox security, there are locks that are more difficult to pick. Some mailbox and lock experts also recommend locks that aren’t operated by a master key.

Invest in a security camera

Security cameras have proven to be a good tool in common property areas where mailboxes are located. Not only can it deter thieves, but CCTV can help police identify offenders.

Tip: If the owners corporation approves the installation of cameras, they should be aware of the New South Wales Surveillance Devices Act or any other legislation that could complicate the process.

You would be surprised how good of a deterrent a well-positioned and visible security camera is, that will record evidence if the package is taken.

Other protections in the community are swipe card readers and smart locks to mail rooms that ensure that only residents can enter.

Consider going paperless

Fraudsters can get personal information like your full name, date of birth, bank details, driver’s license and more from stealing mail.

To avoid this problem, you could consider going paperless. Many banks and other institutions offer this option. When going paperless is not an option and you need important products like bank cards mailed, consider leasing a post office box.

Collect your mail daily

If you rarely collect your mail and let it pile up, you won’t realise your mail has been stolen until a huge chunk of it is gone. Checking mail daily will mean there is less opportunity for thieves to steal.

Know your neighbours

A reason why fraudsters are targeting apartment buildings is that when there are multiple residents, they are less likely to know each other. If you know your neighbours, you can alert them to suspicious activity and vice versa.

Common sense processes

Various experts indicate that the simplest method to avoid mail and package theft is to have the items delivered to work instead of the home.

The core issue of course is having the package or mail sitting outside for extended period.

If delivering to work is not an option for you, no matter, alternatively you can try to ensure that a friend or family member can attend the home during the day or require that the package be signed for, meaning that a local post shop will store the item until you pick it up.

Recycling and Proper Waste Management during the Holidays

Posted on by Lindsey

Since community living is a shared responsibility, in a strata property, one person’s trash becomes everyone’s problem. As apartment and strata living becomes more common, waste disposal has become more of an issue!

Also, in Sydney alone, local households will create and throw out close to 400 tonnes of extra waste at Christmas.

Nearly every unit in strata generates waste, materials, and debris. The result is a huge pile of waste that demands good planning to manage. While the waste from each unit may vary, the total waste collected may be greater and complex for community handling.

Through good waste management plans, the strata manager and the councils can:

  • Minimise time wastage during collection and dumping
  • Integrate efficient waste management decisions
  • Work hand-in-hand with responsible stakeholders’ such as recycling plants and disposal facilities
  • Boost the tenants’resilience
  • Minimise the rates of detraction among the tenants

The burden of waste collection heavily depends on the efforts of the whole building, and as a result, there is confusion about the most effective way of managing strata waste.

Strata waste does not only come in large quantity but also different types. Due to factors such as urbanisation and population increases.

Here are some tips and tricks to ensure environmental stewardship remains a priority this festive season!

Gift wrapping

A huge contributor to waste at Christmas is gift wrapping. Instead of single-use wrapping paper or gift bags, Megan recommends wrapping gifts with recyclable, compostable or reusable items.

Be creative with what’s around you. Try your hand at furoshiki, the Japanese tradition of fabric wrapping for a special touch. Wrap gifts in reusable cloth bags, tea towels or a pretty scarf. Or reuse a cardboard box, newspaper or brown paper bag decorated with flowers or leaves.

If you receive a gift in wrapping paper, unwrap it gently. You can save the paper and reuse it for future Christmas or birthday gifts.

Wrapping made from 100% paper can go in your yellow lid bin, even if it has sticky tape attached. Plastic cellophane can be recycled in a REDcycle soft plastics bin at your local supermarket.

Consider using these over metallic wrapping or paper with glitter or foil detail. These can’t be recycled and will end up in landfill.

Real Christmas trees

If your tree is small, break it up into pieces and put it in your green lid bin along with your garden organics. If you don’t have a green lid bin, and regularly have garden waste, you can order a free bin and have it collected each fortnight.

We mulch trees placed in the green lid bins.

For trees too big to fit in the green lid bin, book a free pick-up.

However, you dispose of your tree, don’t wrap it in plastic and remove all decorations.

Plastic Christmas trees

They may be reusable, but plastic Christmas trees are often made of materials that can’t be recycled. Old or broken trees are likely to end up in landfill and won’t decompose.

If your unwanted plastic Christmas tree is in good condition, you might like to try Facebook Marketplace or groups, Gumtree, Trading Post, eBay, OzRecycle or Freecycle.

Fairy lights, LEDs and other electronics

E-waste can contain toxic materials and doesn’t belong in the bin. If you’ve scored some new gadgets and need to get rid of your old ones, you have a few options.

If the old gadgets are working, donate or sell them. If not, City of Sydney residents can book a free pick-up or take them to a Recycle It Saturday drop-off event. Or book a power pick-up with RecycleSmart.

By recycling your e-waste, you help keep hazardous materials out of landfill. We recycle around 95% of the raw materials we recover.

Batteries

Sales of batteries spike during the festive season. But once you’re done with them, batteries can be a huge environmental hazard.

Always try to use rechargeable batteries, but even these need to be disposed of carefully. Batteries must never go in any of your household bins. They can be dangerous when compacted in collection trucks and can even cause truck fires.

Best to drop off your batteries for recycling at our customer service centres and libraries. Or book a power pick-up with RecycleSmart.

Aluminium disposable food and baking trays

Aluminium foil trays can be recycled in your yellow lid bin – just make sure they’re scrunched into a ball shape, like regular foil.

White Christmas Packaging or Styrofoam

It may have a recycling symbol on it, but polystyrene or styrofoam can’t be recycled in your yellow lid bin.

If you’ve received lots of polystyrene with your presents, you can book a power pick-up with RecycleSmart

Foil and plastic chocolate and lolly wrappers

Chocolate wrappers and confectionery bags made from soft plastic can be recycled in the RedCycle bin at your local supermarket.

You can also bring soft plastics to your next Recycle It Saturday event. Or stay at home and book a power pick-up with RecycleSmart

Unwanted gifts

Donate, sell, or re-gift. Sometimes you just don’t want, or need, what’s been given to you. If you’re re-gifting, just remember who gave you the present. You don’t want to be caught returning it to them – now that could be awkward.

The importance of recycling

The big issue for recyclers is the high level of contamination in recyclable bins, which greatly diminishes the recyclable value of the materials and increases the amount of processing required.

If anything, which is not recyclable is spotted or sorted, the rubbish is charged out as general waste, which is an increased cost to owners.

Owners and occupants alike should become increasingly wary of what they put in their recycling bins to avoid increased costs and practice more sustainable waste management.

Owners corporations should encourage residents to recycle as much as possible. Educate them on ways to recycle, upcycle items. For example, donate things in good working order to charities, or sell or give them away on Facebook Marketplace or Gumtree.

 

 

 

 

 

 

A year in review

Posted on by Lindsey

SCA (NSW) have worked tirelessly to deliver support to the industry and ensure legislation was updated to benefit those who live in, own, or work in Strata titled property. The work we’ve done to mitigate the spread of COVID-19 in high-density living and ensure all strata residents have access to the support, resources and guidance they need has been integral.

Along with COVID-19 and the challenges it brought, SCA (NSW) and the strata industry, has had a highly active 2020:

  • Changes to NSW fire safety statements forms in January 2020
  • Lockdown Restrictions and developing innovative service solutions in Feb 2020
  • NSW Residential Tenancies Regulation 2019 coming into effect March 2020
  • Real Estate and Property Industry Reforms announced in March 2020
  • Changes to Short Term Rental Accommodation in NSW April 2020
  • Amendments to Witnessing Legal Documents regulation in April 2020
  • NSW releasing a final report on the cladding and building crisis in April 2020
  • Fire Safety Reforms coming into effect April 2020
  • COVID-19 Tenancy Changes May 2020
  • NSW passing Community Land Management Amendment (COVID-19) Regulation 2020 and Strata Schemes Management Amendment (COVID-19) Regulation 2020 to provide relief to strata owners and committees in June 2020
  • New regulations to prevent building defects and boost confidence in NSW June 2020
  • Design and Building Practitioners Bill 2019, and the Residential Apartment Buildings (Compliance and Enforcement Powers) Bill June 2020
  • New Regulator powers to bolster the Building Commissioner September 2020
  • Schoolies week cancelled and changes to short-term letting September 2020
  • Changes to Pet By-Laws October 2020
  • Our First Online AGM November 2020
  • Cladding Loan Scheme confirmed by Government November 2020
  • The Launch of the Defects Rectification Guide December 2020
  • New Short-Term Letting Rules Active December 2020

The main issues we dealt with related to:

  • Covid-19 and Legislation
  • Flammable Cladding
  • Building Defect Crisis
  • Insurance Premiums
  • Education and Advocacy
  • Policy and Regulation – both Future and Retrospective
  • By Laws – Awareness and Education
  • Awareness
  • Building Commissioner Powers
  • Government Funding and Support
  • Accreditation

SCA (NSW), were very vocal in recommending legislative amendments that supported the industry and streamlined administrative functions for many strata residents and owners corporations to ensure that legislation was met, and health and safety continued to be paramount throughout lockdown restrictions.

Part of our advocacy is forging strong working relationships with the NSW Government; with Fair Trading, the NSW Planning and Environment, the Minister for Better Regulation and Innovation and the Building Commissioner David Chandler; developing an excellent rapport over multiple meetings.

We remain committed to continuing our work with the NSW Government to ensure that Strata remains a key policy priority for the increasingly significant proportion of the state’s residents who reside and work in strata.

How do we not mention the glaring elephant in the room?

While the economy was being placed into hibernation earlier this year, strata was not afforded the same windfall. We were forced to adapt, pivot, innovate and problem solve on the run, with a huge responsibility and obligation to provide hope, support, and service to millions of residents searching for answers and navigating a myriad of competing priorities.

We cannot forget that strata entered the global pandemic still inflicted by past problems of defects, flammable cladding, behavioural challenges, and complex compliance obligations. Those issues did not simply go away during lockdown and isolation – they were ever present and compounding reminders of the minefield that strata communities across the state juggled and navigated.

We as an industry faced an unprecedented challenge and delivered an unprecedented, coordinated effort to get through.

We’re proud of the hurdles SCA (NSW), and our members have overcome as a community, and the continued work that allows us to deliver expert services and support/advocate for the Strata industry as a whole. The role we’ve played to mitigate the spread of COVID-19 in high-density living and ensure all strata residents have access to the support, resources and guidance they need has been integral.

SCA (NSW) are humbled by our response, our dedication, and our resolve!

As the NSW Government works towards delivering better quality builds for the future; one of our recent collaborative efforts has seen the development of industry-first guides and reference material!

We launched the ‘Strata Defects Rectification Guide’ in December 2020, which has enabled researchers to gather comprehensive data on the granularity of defects and deliver a consumer-friendly guide (a first of its kind), to help owners and managers navigate the complexity of defects.

In partnership with SCA (NSW), researchers from UNSW Sydney’s City Futures Research Centre and the University of Technology Sydney have developed the ‘strata defects rectification guide’ for strata residents and owners in New South Wales.

The guide will provide vital information on the approach to building defects under the legislation to help property owners navigate the process of identifying, documenting, reporting and rectifying building defects in strata schemes. It will also be a handy tool for potential buyers while inspecting a building.

The guide provides easy to understand information and support on how to rectify defects in a strata scheme.

SCA (NSW), is pleased to be part of a collaboration of nationally focused Industry stakeholders to assist the building commissioner David Chandler. Our work is to consult on the establishment of a ratings tool (ICIRT), to restore public trust and consumer confidence in construction.

Our role in the built environment industry is representing our strata managers, lot owners and stakeholders living in, residing, or working in strata titled property. We are part of the iCIRT Industry Group as part of ongoing advocacy work in the property sector.  

SCA (NSW) has and continues to share insights into the performance of builders and developers, sharing experiences of our membership on quality of work or issues around defects, remedial works, or new developments.

We see value in an improved operating environment with more independent verification and rating.

The tool will be launched in Mid-2021.

The building defects crisis has spotlighted the potential vulnerability of consumers buying off the plan.

New buyers have limited information about potential risks associated with owning the strata property or how construction and the strata sector operates.

Following the high-profile failures of the Opal and Mascot towers there has been substantial loss of confidence in new apartments. While the strata communities have grown, there has been no equal investments to support these strata communities.

As part of identifying high level requirements, SCA (NSW), has been part of the roundtable discussions for the minimum viable product that can assist to improve the transparency, accountability, and quality of work within the building sector.

The objective of the wider program, the NSW Strata Portal, is to enable end to end oversight into the quality and safety of individual buildings from planning and construction to ownership.

SCA (NSW), recognises that without this central digital workflow and repository, the government’s ability to implement and enforce the new building reforms would be severely restricted.

Earlier this year SCA (NSW) initiated the process of forming our own Professional Standards Scheme regulated by the Professional Standards Council.

Our application has continued in the background following the successful amendments to our constitution and has advanced towards final lodgement of the scheme application and review by the Council.

SCA (NSW) have sought a defined and measurable improvement in consumer confidence and have called on the Office of the Building Commissioner to deliver a 50% increase in consumer confidence by 2025!

One of the key tools that we will utilise to drive research and gauge confidence levels will be a substantial industry tailored survey.

To deliver a complete picture across a large dataset. The data will be used to understand consumer experiences with defects.

This is critically important as it will deliver results on 6,000 buildings constructed over the last 6 years and 750 new buildings every year thereafter. The survey aims to dive into the granularity of defects, reviewing:

  • Waterproofing
  • Structural
  • Cladding
  • Fire

Over the coming months we will need your help to complete the most extensive dataset on strata defects ever undertaken. SCA (NSW) hopes that any member who receives the survey will assist us redefining the industry!

Moving forward to 2021:

As the mercury continues to rise, we’re reminded that we’re edging closer and closer to the end of the year, and we will use our much-deserved time off to recoup and reflect after a rollercoaster year for the industry.

Over the next few months, we have some new initiatives and exciting announcements to share, kicking off what we believe to be an eventful and hopefully much more positive first half of 2021.

Following the high-profile failures of the Opal and Mascot towers there has been substantial loss of confidence in new apartments. While the strata communities have grown, there has been no equal investments to support these strata communities.

As part of identifying high level requirements, SCA (NSW), has been part of the roundtable discussions for the minimum viable product that can assist to improve the transparency, accountability, and quality of work within the building sector.

The objective of the wider program, the NSW Strata Portal, is to enable end to end oversight into the quality and safety of individual buildings from planning and construction to ownership.

SCA (NSW), recognises that without this central digital workflow and repository, the government’s ability to implement and enforce the new building reforms would be severely restricted.

Defects Rectification Guide

Posted on by Lindsey

 

As the NSW Government works towards delivering better quality builds for the future; one of our recent collaborative efforts with the UNSW Sydney’s City Futures Research Centre and the University of Technology Sydney have seen the development of industry-first guides and reference material. The creation of the ‘Strata Defects Rectification Guide’ has enabled researchers to gather comprehensive data on the granularity of defects and deliver a consumer-friendly guide (a first of its kind), to help owners and managers navigate the complexity of defects.

The online tool provides vital information on the approach to building defects under the legislation to help property owners navigate the process of identifying, documenting, reporting and rectifying building defects in strata schemes.

It’s an informative guide to support strata property owners worried about whether they have defects in their apartment building, or who need more information on how to rectify defects in their strata scheme.

It will help owners to know what they should be thinking about, who they should be talking to, what sort of risks they should be looking at, as well as how to find out who is responsible for existing building defects. It can be hard for owners to find all the information they need to deal with defects; this guide is a tool that helps buyers and owners navigate that information asymmetry.

We believe the last few months have been an historical step forward for the strata industry in New South Wales; a sharp contrast for the sector which has been notoriously plagued by defects.

With NSW’s reforms and the building commissioner reshaping construction quality, this guide compliments the retrospective effort of the strata industry in educating and assists consumers deal with the practical realities of defects.

Our support and participation have directly led to progressive and unprecedented guides which are now available for all those who live in strata titled property.

The ‘Defects Rectification Guide’ is developed as a first point of call if owners are worried about defects in apartment buildings.

We strongly believe this project will provide critical information to better inform, advise and protect all strata stakeholders in NSW.

The findings are intended to inform changes to planning and development policy and regulation, leading to improved building quality and safety, lower costs and stress for owners, more resilient urban communities, and better urban planning outcomes.

Webinar

SCA (NSW) will be recording a comprehensive Q&A webinar between Matthew Press – Director Office of the Building Commissioner, Laura Crommelin – Research Associate at City Futures Research Centre and myself, Chris Duggan – SCA (NSW) President about the defects guide on Friday 4 December.

The recording will be uploaded to our website and sent to all members.

We invite all members to send through any questions prior to the webinar recording on Friday. Your questions will help drive the Q&A, and we’ll endeavor to answer each and every member query. Please send your question to president.nsw@strata.community  by Thursday 3 December 03.00PM.

Defects Rectification Guide - Click here

FAQ: Air-conditioning

Posted on by Lindsey

 

Air conditioning is a godsend during the blistering summer months, however, installing it in a strata property is not as straightforward as you might think. It is possible, but there are a few factors you must consider first.

Today we review the typical considerations when planning a purchase of air-conditioning.

According to section 110 of the Strata Schemes Management Act 2015, minor renovations to common property relating to the owner’s lot are allowed, with the approval of the owners corporation given by resolution at a general meeting.

The approval may be subject to reasonable conditions but cannot be unreasonably withheld.

In clause 28 of the Strata Schemes Management Regulations 2016, the installation of a reverse cycle split system air conditioner is included in the definition of minor renovation works. This means that according to strata laws, it is typically possible and legal to install a split system or ducted system air conditioning unit.

Owners corporations through a special resolution may wish to consider passing a by-law that allows owners to install an air conditioner providing they meet certain criteria. If your strata scheme doesn’t currently have a by-law relating to air conditioners then approval to install the unit would have to be agreed at a General Meeting or Annual General Meeting – this would require the drafting of a special by-law for that singular request.

If a standard all-compassing by-law was passed, then potentially permission may only have to be granted at a Strata Committee meeting – making the process much quicker and easier.

The permissions you will need for installation, and who is responsible for installation, depend on two primary factors: what type of air conditioning system you wish to install, and where you want to install it.

Portable air conditioning

If you wish to install a portable air conditioning unit or fan in your apartment, you will generally be the one responsible for its installation. These smaller units can be more cost-effective than larger systems, easier to install, and more environmentally friendly.

However, you will need to consider whether the appearance of such a unit in your outside window contravenes your strata’s by-laws. In any case, consult these by-laws or your owners corporation first.

Split or ducted air conditioning system

If you are considering installing a permanent split or ducted air conditioning system, gaining the approval of your strata’s owners corporation first is a must as this forms what is called a minor renovation under the new strata laws. To do this, you need to submit a proposal that includes the details regarding the system you seek to install – the brand, size, where you wish to locate the air conditioning unit, and so forth.

The owners corporation should be able to tell you whether there already exists a by-law about air conditioning and how it applies to your installation plans. If the air conditioning unit will require changes to common property – the drilling of holes into walls for piping, for example – a specific by-law may need to be written up before you can commence with the installation.

Maintenance and repairing of the air conditioning system, once installed, will likely be your individual responsibility. However, whether this is the case will be clarified during the approval process.

What if my application gets rejected?

If your application gets rejected, the Owners Corporation will provide the reason in writing. You can review whether your work plan did adhere to the by-laws. If you feel the rejection is unreasonable, you can take your application to the NSW Civil Administrative Tribunal.

For a more cost-effective and energy-efficient installation, consider talking to the owners of your strata scheme building about having a ducted system installed for the whole building.

Electric Vehicles in Strata

Posted on by Lindsey

Under the Sustainable Sydney 2030 strategic plan the City of Sydney provided innovation grant funding to study Electric Vehicle (EV) charging in residential apartment buildings.

Given their popularity on the rise, we think EV’s and how they’re charged are worthy of consideration for all owners corporations, and to start asking how consumer demand may impact their schemes.

The study looked at the issues of Electric Vehicle charging in residential strata buildings. Key findings of the study were:

  • 48% of respondents plan to have an electric vehicle within the next 5 years
  • The majority want a user pays charging system (79%) on individual car spaces (61%)
  • Most buildings will require integration with the common area power supply (e.g. lifts, carpark, foyers, facilities)
  • Power management systems will be needed to shift EV charging loads overnight
  • Energy efficiency and renewable energy projects can increase capacity
  • By-laws are needed to manage electric vehicle charger installation and usage
  • New developments are starting to market their buildings as “EV Ready” to attract premium values
  • 78% of strata residents surveyed were in favour of installing charging stations now.
  • Existing power infrastructure cater for less than 10% of residents based on 32amp chargers; and
  • 30% of strata schemes surveyed were at risk of overloading within the next three years.

As key players in strata management, members of SCA (NSW) are in a prime position to pave the way for the adoption of this technology that promises a cleaner, quieter and more sustainable future.

It could well be the case soon that EV charging availability is as much a driver of consumer behaviour (and apartment values) as the availability of high-speed internet.

Owners Corporation should consider that their first request to install an EV charging station may not be their last!

The research paper provides strong evidence that demand for EV charging is going to increase dramatically in the years to come. Establishing by-laws now sets the ground rules for all future requests and can avoid some misunderstandings.

Are electric cars common enough to warrant charging stations?

By 2035-6 as much as 27% of Australia’s new vehicle fleet could be electric with over 2.8 million EVs on the road.

Generally, apartments are built with very little spare capacity in the electricity supply cables from the street, or in individual unit switchboards. A further issue is that where high-rise apartments are built in inner city areas with older supply networks, there can be long timelines for increasing the street capacity, even if there is agreement from the owners corporation to increase supply cable sizes to the apartment block or individual units.

You’ll need to consider spare capacity in the main switchboard and in either the individual’s own section or the publicly metered section—including physical room for the additional circuit breakers.

Introducing EV charging into an apartment block or multi-unit site is also going to impact on the future available power supply to other apartments or units, so any new EV charging unit (even a 15 A power point in the owner’s parking spot) will need to be negotiated with the owners corporation.

Will strata allow you to modify a parking space for a charging station?

While there’s no one-size-fits-all answer, strata schemes could be more open than ever before to approving charging stations in common parking spaces.

A charging station would require a motion to be approved and passed by your owners corporation, depending on where and how the equipment would be installed and how it might affect the property’s energy usage.

FAQ: Fees in Strata

Posted on by Lindsey

SCA (NSW) have had a lot of questions lately regarding owners corporation fees While nobody likes parting with their hard-earned cash, the fees charged by owners corporations are absolutely vital in managing shared facilities.

The owners corporation is responsible for maintenance, repair, and overall management of the common property. This includes:

  • financial management
  • insurance
  • record keeping
  • repairs and maintenance of common property
  • by-laws
  • employment of a strata managing agent and/or a building manager (if they choose to do so)
  • keeping up to date with, and adhering to, all applicable laws. This includes planning; building; fire and safety inspections and work, health and safety laws.
  • Strata roll

The owners corporation must also prepare and keep a strata roll. Including information such as:

  • the owner’s name and address/email for service of notices
  • the owner’s agent and the agent’s Australian address/email for service of notices
  • the strata plan number and the address of the building
  • the name of the original owner and an Australian address for notices
  • the name of the managing agent (if there is one) and an Australian address for notices
  • the total unit entitlements for the scheme and each lot
  • insurance details
  • the by-laws for the strata scheme.
  • Details of any tenants (name and address/email) for service of notices.

Contributions and funds:

To manage these responsibilities, and to ensure that the building has adequate funds to maintain the building, owners are charged a fee/levy. These contributions are worked out in proportion to the unit entitlements of each lot.

The funds are kept in an administrative fund for day-to-day expenses and a capital works fund for major works, maintenance, or repairs.

Levies are a fee or ‘contribution’ paid by all lot owners in a scheme to cover any projected costs and expenses. All levies must be worked out in proportion to the unit entitlements of each lot. Strata fees are paid by lot owners and go towards paying for the expenses associated with all the common property in the strata scheme. This includes common driveways, gardens, hallways, external walls and roofs.

Setting levies:

Levies are calculated at the annual general meeting (AGM) by the owners corporation. To set the levies, a budget must be given which shows the current financial situation and any estimates of payments to be made and received. The budget must be:

  • distributed with the notice of the AGM, or
  • tabled at the meeting before voting on the levy motion.

The motion to set the levies must be approved by a majority vote.

Contributions can be paid by instalments, and the dates and amounts can vary.

What are fees used for?

Ongoing operational and maintenance costs can include the cost of a strata management service, cleaning and gardening contractors, shared utility bills, insurance, and regular plant and property maintenance.

Generally, the bigger the property, and the more amenities available for lot owners to use, the higher these costs will be.

Lot owners must also contribute an amount to cover future planned works, such as facility upgrades and renovations, and emergency repair and breakdown of property, plant, and equipment.

How are owners corporation fees calculated?

Each lot of an Owners Corporation (e.g. your apartment, your carpark, your storage area) has a stated ‘Lot Liability’ that is indicated on the Plan of Subdivision. The annual operating and Maintenance Fund budgets are divided by the lot liability for each apartment/carpark/store that you own, and a resultant annual levy is established.

For those considering buying a strata-titled property, a good guide on what owners corporation fees you should expect to pay can be found in the previous year’s strata report. These reports can be purchased online or obtained from your conveyancing lawyer. They contain information on the financial status of the owners corporation, pending and past building works, the cost of current levies and fees, the likelihood of extra levies, insurance costs and owners corporation building rules.

Fair Trading also have excellent resources and in-depth levy and capital work fund information here.

 

Cladding addressed in the NSW Budget

Posted on by Lindsey

Three years on from London’s Grenfell fire in 2017 which tragically claimed the lives of 72 people, exposing the dangers of flammable cladding and exposing an alarming number of buildings in NSW with the dangerous cladding; apartment owners In New South Wales today have financial support from the state.  

The State Government has unveiled – at today’s state budget – a $1 billion government program aimed at helping assist the cladding crisis.

Apartment owners forced to replace flammable cladding on high-rise buildings across NSW will be able to access interest-free loans as part of the program over the next three years; which also includes $139 million to establish and offer technical support to owners for the remediation of at-risk buildings.

Effectively, the government will be covering the interest bill (capped at $930 million) for loans taken out over the next three years by building owners to remove or replace flammable cladding.

Better Regulations and Innovation Minister Kevin Anderson described the government’s interest-free loans as an efficient and effective way to remove high-risk cladding, without which owners would have had to resort to commercial loans and face interest rates of up to 10 per cent.

12 months ago when SCA (NSW) crunched the numbers on the cost of flammable cladding, we arrived at a figure of $1 billion, which is what we called on the government to provide and we are pleased that the Government has delivered on this.

Despite the time it took for the government to announce their support, ultimately, we believe the initiative is well planned, well-resourced and expertly consulted; giving building owners and owners corporations a tangible commitment to helping fast-track the removal of unsafe cladding.

The Hon. Kevin Anderson MP and Treasurer Dominic Perrottet will release more details about the initiative next month.

Building owners and owners corporations will be able to make applications for the interest-free loans in March 2021, after the government finalises a financial loan provider.

Under the program, the government aims for the work to remove cladding to begin in June 2021.

We will keep you fully updated as those details emerge.

 

Regulation of building standards, building quality, and building disputes – Government response received

Posted on by Lindsey

The NSW Government has provided its response to the Legislative Council Public Accountability Committee’s final report, Regulation of Building Standards, Building Quality and Building Disputes (the Final Report).

The Government has thanked the Committee for its consideration of these important matters and appreciates the opportunity to respond to the Committee’s findings and recommendations and update the Committee on the progress of the Government’s building reform agenda since its response to the Committee’s first report on 7 May 2020.

A central theme of Construct NSW is the making of a ‘trustworthy building’. Trustworthy buildings will be ones that are fit for purpose, sustainable and measurably less risky. The players who make them must be the most capable. Customers who buy them must be confident to own and occupy them. And the financers and insurers who underwrite policies for constructors and building owners will be confident in the level of assurance.

Recognising the industry is vital to the success of the Government’s workplan to 2025, the Minister for Better Regulation and Innovation established stakeholder consultation groups to support each Strategy pillar. Group membership includes stakeholders representing builders, certifiers, designers, educators, consumers, the digital economy, and local and state government.

Strata Community Association (NSW) was and continues to be a part of that stakeholder group, representing the interests of the strata industry across the state.  

The work to date as part of the Government reform agenda, reflects only the first tranche of reforms this Government expects to make as part of the biggest overhaul of the NSW building sector. The Government has detailed reform strategy outlined in the Government’s six-pillar plan to 2025 and will also undertake a review of the legislative framework that will underpin consideration of an extended first resort insurance product and ensure that the legislation framework works cohesively.

The Government is now looking to the future of building regulation and partnering with key industry stakeholders, including developers, practitioners, and trades from across the sector to implement the Government’s building reform agenda to 2025.

We’re excited to be part of this future.

Read the full response here

NEW SET OF LAWS WITH A MANDATORY CODE OF CONDUCT FOR SHORT-TERM RENTALS

Posted on by Lindsey

 

The state government will be enforcing a new Code of Conduct for hosts, guests, letting agents and online booking platforms in the short-term rental accommodation industry from December 18, 2020.

The mandatory code covers obligations, guidance, and minimum standards of behaviour that must be met by all parties.

Under the code, guests are not allowed to damage the premises or make noise that “unreasonably disrupts neighbours”. If these rules aren’t met, you could face warning notices, fines or being added to the exclusion register – where you’re banned from booking short-term rentals for five years. The exclusion register is introducing a ‘two strikes and you’re out’ policy for unruly guests.

Hosts on the other hand must have insurance that covers liability for third party injuries and death. Plus, neighbours must be able to contact hosts if there are any issues; being available between 8am and 5pm each day.

Hosts cannot rent out their premises to anyone on the exclusion register.

There is a short-term rental accommodation premises register being created, which is set to begin in 2021. Under the new laws, hosts must register themselves and their premises on it.

Booking platforms and agents must let hosts and guests know about the code.

Once the accommodation register is out, they can only advertise places on that list. They cannot advertise or facilitate accommodation to a host on the exclusion register.

More broadly, complaints can be made to NSW Fair Trading if there have been any breaches to the code, with Fair Trading having the power to ban problematic hosts or guests.

Find more information on Fair Trading’s website here.

When Do Builders Lose the Right to Fix Construction Defects?

Posted on by Lindsey

 

Imagine a scenario where construction has just been completed on a renovation or your new home/building and there are reports of several defects. You’re rightly upset at the situation and you/owners corporation move to ban the original contractor from gaining access to the property to rectify the defects. However, this course of action may not always be legal!

Today’s blog examines what actions are reasonable and unreasonable in relation to defects.

In some circumstances it is not unreasonable for an owner or owners corporation to prevent a builder from coming back onto the premises to complete rectification of defects. However, owners should not reject offers by a builder to rectify defects without proper consideration of the relevant circumstances.

To that end, owners/owners corporations should seek advice before making a decision to reject a builder’s offer to come back to rectify defects because adopting this approach is not without risk if the matter proceeds to a court or tribunal.

The risk is that rejecting a builder’s offer to repair defective and/or incomplete works may backfire on the owner and prevent the owner from recovering costs (and possibly damages) if the rejection of the builder’s offer is shown to have been unreasonable.

Where defects are found, building owners do have an obligation to allow the original building contractor an opportunity to fix these defects. This opportunity will allow the builder to minimise the damages and costs it will have to pay.

However, the contractors can lose this right if the owner can show that they acted reasonably in their conduct and that they have lost confidence in the builder’s willingness and ability to do the work.

Home Building Compensation Cover

Posted on by Lindsey

 

Home building compensation (HBC) cover – formerly known as home warranty insurance – is an important consumer protection for homeowners in NSW. As renovations continue to boom, we recommend being across some insurances builders and tradespeople must have when working on certain upgrades to your residence.

Home building compensation cover protects homeowners as a last resort if their builder cannot complete building work or fix defects because they have become insolvent, died, disappeared or had their licence suspended for failing to comply with a court or tribunal order to compensate a homeowner.

Cover is only available from icare HBCF!

Future owners of a property are also covered for the statutory warranty period (six years for major defects in the work and two years for other losses from the date of completion of work). An additional six months cover applies in cases where the loss becomes apparent in the final six months of the period of insurance. The six-month period starts from the date of the loss becoming apparent.

As a NSW builder, it’s important to get to grips with HBC to avoid potential problems or delays with building projects and to stay on the right side of regulators. If you’re a licensed builder or tradesperson in NSW, you need to get home building compensation (HBC) cover for each home building project over $20,000 including GST.

Builders or tradespeople need this cover to work directly for a developer, homeowner or owner-builder for new homes, new low-rise ‘multi-unit’ buildings of three storeys or less, or home renovations, unless exempt.

Sub-contractors do not need the cover, because the head contractor has already covered the work.

If you’re thinking about making renovations, your builder or tradesperson must obtain a certificate of home building compensation (HBC) cover before starting the work or requesting payment from you.

A minimum of $340,000 in combined HBC cover is available for non-completion and defects within the statutory warranty period. That is six years for major defective work and two years for other losses. The time starts from when the work was completed.

You can make a HBC claim if your builder or tradesperson cannot fix or complete the work because they have died, disappeared, become insolvent, or had their licence suspended for failing to comply with a court or tribunal order to compensate a home owner.

In those circumstances, you will have cover for:

  • loss resulting from incomplete work because of early termination of the contract (conditions apply)
  • loss resulting from a breach of statutory warranty, such as:
  • if the work is not done with due care and skill
  • as per the plans and specifications set out in the contract
  • the materials used are not suitable
  • the work does not comply with the law
  • the work is not done within the time stipulated in the contract
  • within a reasonable time if the contract does not stipulate a time
  • loss resulting from faulty design provided by the builder
  • reasonable costs of alternative accommodation, removal and storage
  • loss of deposits or progress payments (conditions apply)
  • legal or other reasonable costs incurred in seeking to recover compensation
  • reasonable costs incurred in taking action to rectify the loss or damage
  • loss resulting from the work done by the subcontractors of the builder
  • loss resulting from the work done by the builder to rectify the problem after completion of the work.

Failing to take out HBC cover for such work is an offence under NSW law.

When faced with defective residential building works and a builder unable to satisfy a claim, focus will obviously shift to HBC cover.

However, having been intended as a last resort measure, this is subject to some limitations:

  • Contracts covered – HBC requires a contractor performing residential building work with a GST inclusive contract price of $20,000 or more to have cover
  • Buildings covered – This only applies to buildings with 3 storeys or less, with some scope to artificially inflate the number of storeys.

From 1 July 2018, your builder or tradesperson must disclose the cost of the HBC cover in their contract with you.

The HBC premium or contribution is based on number of factors including the category of work, builder risk and location.

To read more, visit the State Insurance and Regulatory Authority website.