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Hi again Dudley, Two things I forgot to comment on. You raise ‘time’ and ‘responsibility’.
It will be bit more time consuming in drawing up formal document eg accounts, agm agenda/minutes but I found much of this was negated by not having to constantly contact the Strata Manager. As for responsibility for the OC overall there is no difference although the individual owners who do the paperwork/communication may feel a bit more ‘pressure’ but the OC gets things wrong (with the exception of insurance and keeping the common property in good order) there is no real damage done in my opinion. And of course we have found that, in practical terms, it is a lot more rewarding and cost effective.
Hi Dudley, our Strata underwent the change you are considering a while ago and I will outline what we did. Firstly I agree with KiwiPaul in that insurance is the single most important thing. The other thing I would stress is ‘keeping the common property in good order’. Mostly the things paid Strata Managers do are pretty mundane and not near as important as keeping up the insurance and looking after the common property.
The following steps are the main ones we did:
1. hired ourselves and insurance broker;
2. organised our bank accounts so that all owners have access to view and operate them. We neither keep nor operate with any cash. All moneys go into our accounts and all amounts are paid out of our accounts (this makes them very transparent). While all owners can view the accounts, to operate them (ie withdraw or transfer) each transaction is notified to all other owners and each transaction has to be authorised my two owners; and
3. started to use email as the preferred way of information and discussion (all owners have each others email address). With this we often ‘scan’ on papers for others to view.
For paperwork we have drawn up a few Xcel spreadsheets (for our ’10 year sinking fund plan’ and ‘year-end’ accounts) and use a word document for our AGM agenda. So it is handy if you have someone with Xcel and word skills but they are not difficult after a few practices. There are some terrific and easy to follow videos etc on line, eg youtube, on how to do Xcel and word.
Self managing was the one best thing our Strata ever did. We save ourselves $3,000 a year and put this money to maintenance.
Hi Jimmy, in the opening posting on this thread it is stated:
“That’s where smart Owners Corporations can get an advantage. You can’t stop them coming but you can find out who’s offering the best deal and quietly give them the inside running.” – See more at: http://www.flatchat.com.au/forum/another-day-in-paradise/broadband-providers-bashing-on-doors/#spPostForm
Where could an OC obtain details of providers so it could search out who is offering the best deal?
new2strata, as for issue 1. The regulations make it very clear that no parking is the default situation. The relevant regs are:
STRATA SCHEMES MANAGEMENT ACT 1996 – SCHEDULE 1
SCHEDULE 1 – By-laws
2 Vehicles
An owner or occupier of a lot must not park or stand any motor or other vehicle on common property except with the written approval of the owners corporation.
I note that you state:
“however this was not in the way of any other person in my building.” …. and “I responded that i wasn’t sure why the said parties had any issues with the car there as it was in nobody’s way.”
We have a similar issue for out Strata Plan ie The physical layout and parking set up of our Units means that parking in front of garages is tolerated for a few units (where the parking of said cars doesn’t deprive anyone else and is in no one’s way).
I have previously raised the situation at our Strata on here and received some very negative comments. So it is a touchy subject but when our Strata sat down and discussed the matter it was decided that there were benefits for all owners in allowing some but not all to park in front of their garage. The major benefit being another common parking area being more available for other owners.
I obviously don’t know the physical layout of your Strata but my experience is that to argue for what you are asking for you really have to have an argument that the arrangement provides benefits all owners.
Is there any such considerations available for you to argue?
This was the closest discussion I could find on this topic and rather than start a new discussion decided to add to this existing one.
We are having extreme difficulty getting owners to go on our executive committee (EC). It has been proposed that members of the EC be given a discount on their levys. What are peoples thoughts on this?
We are aware of:
“STRATA SCHEMES MANAGEMENT ACT 1996 – SECT 25
Can members of the executive committee be paid?
25 Can members of the executive committee be paid?
An owners corporation may pay to a person who is the chairperson, secretary, treasurer or a member of the executive committee such amount as the owners corporation determines at an annual general meeting in recognition of services performed by the person for the owners corporation in the period since the last annual general meeting.“
The above legislation would indicate that payments can only be made retrospectively. However we are considering passing a bylaw such that EC members get to pay the agreed levy minus say 10%. Would the bylaw be legal? or how can it be done otherwise?
One way we discussed was, at the AGM passing a motion saying that,
” members of last years EC were to receive payment equal to !0% of next years levys. Payment to be made by EC members paying each quarterly levy minus 10%.”
This way we are making sure payment (by way of reduction in future levys) is only made after an EC member has served the period for which they are being ‘paid’.
@Boxer Jones said:
It was suggested to me recently that these ‘compulsory’ OH&S checks were another lurk so Strata Managers can glean backhanders from companies conducting the checks and from the contractors employed to fix things up so they are in compliance. Got me thinking.Boxer, I would tend to agree. If owners and the owners corp act sensibly and keep their eyes open the money spent on getting OH&S checks would mostly be better spent on actually doing maintenance.
I have seen a couple of these reports and they seemed non conclusive and written to cover any liability the writer may have for missing something.
In most cases the strata insurance should cover for accidents etc. The exception (and it is an important one) is if the insurance company or work cover can show that the strata plan knew of (or should have know) an unacceptable risk and did nothing about it.
How many freehold owners get OH&S reports?
One good idea that I think someone else on here has mentioned is the the owner should include in their submission is that they will pay for a bylaw to stipulate that they and not the OC will be responsible for all future maintenance etc of the screen.
Without the bylaw the OC would be responsible for anything that needs maintenance. It might not be an issue while the current owner is in residence but as more and more time passes it might be.
@KC said:
Hi AllCurrently in our block of 12 units, there is one water meter which services all 12 units. Bills are received quarterly and divided up evenly between the units to pay. This hasn’t been a problem until the past couple of years when the water bills have fluctuated madly (sometimes almost doubling between quarters). We know it’s not a leak issue as we have checked the mains so obviously one (or more) units are causing this spike. Has anyone had any experience in retro fitting meters or loggers to pre-existing units like this so we are able to monitor individual unit usage. I have heard from strata managers that Sydney Water has been working on develop
ing an electronic flow meter which is connected to the pipes on individual units and relays this information to a central point for collation but I don’t know how far away they are from making this commercially available.What I wanted to know if what’s available and the costs involved.Any thoughts would be welcome.
KC,
We actually had a Strata where there was only one meter and had meters fitted to each unit. Our strata is in NSW and it was done about a decade ago. I am sorry but I can’t remember the details or cost.
We were a small size strata and the reason for adding meters was that residents were unhappy with paying for a water when one particular resident appeared to be consuming all the water.
Prior to the units being individually metered owners who rented their units could not charge for water consumption. So after the owners who rented out their units were able to charge those who rented their units for water consumption.
My view is that it would not be the Strata Manager who initiated the EGM and it would have to be someone (either the Executive Committee or an influential member of the Owner’s Corporation who initiated).
Can the meeting be held legally without sending designs etc, beforehand? If the owners vote without demanding them it would most probably be legal.
One way of trying to ensure that the designs etc are sent with the EGM documentation is to compel the Strata Manager to include a iitem/motion that no vote be taken without designs etc.
The StrataMan site at https://www.strataman.com.au/meetings.html#egm
contains the following information about EGMs.
“All general meetings that are NOT Annual General Meetings are called Extraordinary General Meetings and are sometimes referred to as an EGM.
EGM’s are held:
- when a special matter (that cannot wait until the next AGM) needs to be considered – such as to authorise major works, raise a special levy, change by-laws, appoint a Strata Manager, etc
- when a request for an EGM is received by the Executive Committee (EC) from one or more persons eligible to vote and having a unit entitlement value of at least 1/4 of the total unit entitlement for the scheme
- when there is a majority vote of the Executive Committee for the holding of an EGM
How to convene an EGM
EGM’s are convened by the secretary of the Owners Corporation (OC) or the Strata Manager (if one has been appointed) forwarding a notice of meeting to all owners, first mortgagees and covenant chargees, as shown on the strata roll.
Clear Days Notice
For every EGM there must be 7 clear days notice given plus time for postage (if the notice is being mailed).
The agenda for the Extraordinary General Meeting
The agenda for the EGM usually consists of some specific matters raised by the EC or the OC that require discussion or decisions and can’t wait till the next AGM.
How to include an item on the agenda of an EGM
If you are eligible to vote at an EGM, you may give written notice of the matter to the secretary of the EC, keeping in mind the number of clear days notice required for this type of meeting.”
As with most matters I recommend talking to other owners who may share the same concerns as yourself.
Paula, I tried to look at this issue in terms of a dispute between a managing agent and the OC. The below is my view only:
In terms of pure legalities and in the absence of a dispute, the roles of the managing agent depends upon the terms of the appointment. In short the Act uses the words “The instrument of appointment”, which is probably best defined by the contract the OC signs.
Basically the interplay of powers/roles are outlaid in sections 28 and 29 of STRATA SCHEMES MANAGEMENT ACT 1996.
Interestingly sections (2) and (6) of section 28 provides that:
(2) An owners corporation may, if authorised to do so by a resolution at a general meeting, revoke a delegation under this section
(6) Despite any delegation made under this section, the owners corporation may continue to exercise all or any of the functions delegated
My reading of the above is that a strata manager can’t override, or prohibit, an OC from making decisions for the respective roles just because they have a contract.
It would appear then that the chairperson, secretary and treasurer can do as little or as much of the roles as the OC wants them to even if there is a managing agent.
In practice, unless the managing agent was found wanting in certain areas the OC should/would let the managing agent perform what they were engaged to do.
@ICWilson said:
Please can someone help: is there any legislation which allows the Executive Committee to ban the recording of their EC Meetings?With our new Executive Committee the first thing the Chairperson says when opening the meeting is: “all mobile phones and recording equipment must be switched off”. This is also now noted in all EC Minutes.
Allowed or not?
Thanks
There is a recent court case involving a joint venture between a public company and a private company it is Alliance Craton Explorer Pty Ltd V Quasar Resources Ltd 2010.
In that case the judge decided that it was not unlawful for the meeting to be recorded but also decided that it was within the power of the chair and the meeting itself to decide whether a recording was permissible.
This was a South Australian case and the closest authority to the issue you raise. The ruling, that because the chariman said there was to be no recording of meetings. is in line with what Whale says.
@worrywort said:
@scotlandx said:
Your Executive Committee meetings must be interesting!I don’t think you can call a GM, because you won’t have a quorum if only you attend.
In the circumstances, it might be an option for you to find another strata manager, and then apply to the CTTT for an order for a compulsory strata manager. It sounds like you have a basis for saying that the OC isn’t functioning satisfactorily.
Basically yes
The block has essentially turned into a slum because the tenants dont care (nor should they i suppose), the other owners live interstate and the SM cant be stuffed
Hi Worrywort, just an unsolicited suggestion. Have you thought of getting the phone contact details of the other owners. It may be that the other owners don’t know how badly their assets are deteriorating.
I often find a phone call if better received than a piece of paper. Also it might be a situation where asking for their proxies is a good idea.
@JimmyT said:
The strata management industry is split over an issue that some claim could be the death of the small local operators across Australia.The question keenly debated at the Strata Community Australia (strata managers’) annual convention in Perth two weeks ago was the payment of insurance commissions to strata managers.
There are Government moves afoot to wipe this out and it seems to be a no-brainer. Why should strata managers trouser 20 percent of an insurance premium just for getting their clients to sign up with a specific insurer?
Are Owners Corporations getting the best coverage if their strata manager…
Well it all depends upon what the strata manager does for their commission. The experience of our OC was that when asked to sign a contract with a strata manager they recommended a certain insurer and disclosed that they would receive a commission (20%). The strata manager’s contract then went on to state that the OC would be charged for the work the strata manager did in processing or other work on any insurance claim.
When we approached an insurance broker they also disclosed that they would get a 20% commission, however, the insurance broker’s contract provided that they would process our insurance claims without additional charge.
In the approximately six years we have had an insurance broker we have had only one claim but the insurance broker got us our full payout in quick time.
Our experiences with the same insurance company over the previous 15 years was that we had a hell of a time getting payouts and they took forever.
Having said that I realise the nature of claims can differ but I would have no hesitation in recommending a good insurance broker to OC that want to self manage.
@Kangaroo said:When insurers tell you “it doesn’t cost you anything, we pay it out of our profit”, what they mean is “if you bypass the broker and deal with us directly, we’ll still charge you the same premium”.
Kangaroo yes you are totally correct. I probably should have expressed myself a bit clearer. In the case of our OC we had dealt with the same insurer for 10 years and then switched to a broker. So we kept the same policy, cover and paid the same amount.
Prior to engaging the broker we had made 2 claims in 10 years and had experienced difficulties when claiming. Since engaging the broker we have made one claim and it went very smoothly.
@Speidel said:
Our Owners Coporation is currently exploring changing our manager and we requrested some proposals from suitable managers. I noted in one contract that the Body Coporate Manager receives 15% commission for insurance and if the insurance the Owners Corporation chooses does not provide 15% commission to the manager, the Owners Corporation has to pay the Manger the difference. I was very surprised indeed to see such a clause and would like to find out if this is legal, if it is,
it appears to me to be morally wrong. Happy to pay a fee for a service but getting three insurance quotes is not worth this amount. Given Insurance costs are one of the highest expenses of our owners corporation, 15% of our insurnace is a signficant amount.I thought 20% commission was normal but I have never heard of the ‘make up’ clause. I guess if it is in the contract and the OC signs it, barring any legislative prohibitions that I don’t know about, a ‘make up’ clause is enforceable as the contract your OC entered into.
Our OC self manages and has insurance through a broker. The broker gets a commission of 20% but it doesn’t cost the OC anything. The commission coming from the insurer profit margin.
Our OC made enquiries about engaging a Strata Manager, from two firms. Both specified and declared in the contract, that we were to sign, that they get 20% commission if they arrange our insurance. Again the commission was to come straight from the insurance firm.
As scotlandx says, I believe it is standard and accepted industry practice.