[Dudley]

Good Morning All,

Many thanks for the information and advice.

I guess it is a matter for the strata to rectify.

However, I feel that the whole issue is as a result of carelessness and abuse by the tenant/s. 

The gate in question is from the street to the front door of the terrace/townhouse. Basically no different to a private house where a visitor or delivery person would walk to the front door to knock on the front door. As the damage has occured from inside to outside logic dicates it should be owner or tenant – however strata is difficult to comprehend at times.

Once again many thanks.

Dudley

[Dudley]

Good Morning Lady Penelope,

Many thanks for your reply.

I have read your comments and I am of the firm belief that your last paragraph describes what has occured.

For the gate to reach its current position it must have been foced, using considerable effort. The level of force is demonstrated by the fact that welds in the metal gate’s frame have been broken and the frame bent. The direction the gate had to move to produce the damage was from the inside of the property to the outside of the property. That is from the private side of the gate.

Given the above it seeems that the repair is the responsibility of the owner and or tenant. I guess my next question is what is the best next step?

To repair the gate it appears that the minimum would be to remove the gate, straighten and then reweld the frame, then repaint it. This is assuming that it is cost effective to repair the gate, if not then replace the gate. Both actions would involve a cost to the strata which is not, in my opinion, fair or reasonable.

As always I would appreciate some advice.

Regards,

Dudley

[Dudley]

@Lady Penelope said:
Dudley – Or if your OC did not want to get into a ‘fight’ your OC could agree to pay the invoice, if it appears to be reasonable, but … before you do so …… you could make the OC payment of the invoice contingent on the Rental Agent guaranteeing the repair work and get them to sign an indemnity that should any further work need to be carried out as a result of the repair that the Rental Agent must cover any additional costs. And of course you would need to point out their error.  

Lady Penelope,

Once again, Many thanks.

This is such a simple and clever way of solving a problem that should never have occured, while not allowing it to develop into a “fight”.

Regards,

Dudley

[Dudley]

Lady Penelope,

Many thanks for your prompt reply.

The townhouses are attached to each other and have a common roof.

I will instruct our strata manager to advise the Rental Agent that our strata plan is not willing to accept the invoice for the roof repair. 

Prior to this I will discuss the matter with the other member of the executive committee. In line with the procedure outlined in the penultimate paragraph of my previous e-mail.

Once again my sincere thanks.

Regards,

Dudley.

[Dudley]

Good Afternoon Jimmy T and PeterC,

Many thanks for your advice on Sinking Fund Plans.

I will start a spreadsheet, as well as, review the old plan.

When I completer the plan what is the next step? Do I just record it and keep it available or must/should it be lodged somewhere? Are there requirements in this area that must be met to satisfy government departments and more importantly penalties for not doing so ?

Once again, many thanks.

Dudley

[Dudley]

Good Afternoon All,

Our strata plan has a 10 year sinking fund plan – hopelessly out of date – and it should be updated. 

I guess I have to drive this project. Our strata is a small (4 townhouses, inner west Sydney Metro area, circa 1995 construction.) Our plan does not have large common areas, pool or lift etc. Basic requirements, as I see it are painting, replacement of wooden railings on balcony s – due now I believe – and that is about it. Is there a template I can use to develop the 10 year plan? I am aware that there are firms which specialise in the preparation of the 10 year plans; however, I would like to avoid the expense if I can do it myself. 

I am not overly experienced in this area, am I sailing into dangerous waters?

What are the statutory and/or legal requirements in this area?

Regards,

Dudley

[Dudley]

Good Afternoon Missy and Cosmo,

Once again I am grateful to the quality advice Flat Chat contributors have provide to me. My sincere thanks.

As, I’m sure is obvious, I am a novice in the ways of strata and really appreciate an avenue to “de-mystify” what I am told by our strata manager/s. Without wanting to become overly cynical, I have yet to see any proof that the strata manager is working on behalf of the owners – rather they are just an opportunity to “gross” up the deal.

[Dudley has asked a question that opens up a whole other discussion – you will find that HERE -JT]

I have obtained the tax return, as suggested in Missy’s post. However, I am unsure of our name – I guess it is Strata Plan XXXXX, but I do not know what address is the current address or address listed on previous tax returns. I haven’t contacted the strata manager for TFN, as you have gathered the relationship is strained.

Would it be appropriate to complete the tax return – as far as possible – and at the AGM request the strata manager to give me/executive committee a copy of the previous tax return. My cynicism is on display here, I doubt that I will have much success with my request, given that all previous income tax preparation charges – indicated that they were charged by a third party – were refunded to the strata plan.

[Dudley]

Good Morning Whale,

 

Many thanks for your reply.

 

I now have agreement from two other owners to investigate alternative strata options. Unfortunately I do not believe that includes a semi-self managed scheme.

 

I have read the “Management Agency Agreement – Owners Corporation” It notes in clause 5 that the agreement commences on 10 November 2004 and is for a term of 12 months. Standard terms apply thereafter – 3 months notice.

 

Re possible replacement – I have spoken to a couple of strata managers, our plan is small and does not seem to be attractive to those I spoke to. I would appreciate any suggestion as to my next steps. Some time ago I approached a company – a sponsor of Flat Chat – about a semi-self managed scheme, the proposal was acceptable to me but as previously related not to my fellow owners. I am aware that I may be seen as a “time-waster” but I am so frustrated by the current position I am in. Obtaining the consensus of my fellow owners is like herding cats. 

 

The problem I have boils down to a clash of personalities between myself and another owner who seems to think that utopia exists in the strata world.

 

I guess I should strive for a new strata manager who is reasonable and ethical, and forget about the savings we could obtain by looking after our own maintenance – which is historically minimum.

 

Do you think I should follow up with our strata management company re the non-response to my letter and the additional charges for document destruction?

 

Any help or advice would be greatly appreciated.

 

Regards,

 

Dudley   

[Dudley]

Good Morning All,

It is now some time – 20th August 2015 – since our AGM at which I raised the above issues.

In simple terms I was told to write to the Strata Manager Company General Manager. This I did and to date have received no response.

Yesterday I received my copy of the cash management report – one of the items which I raised as an area of concern, not being sent on a regular basis.

In my previous e-mails I raised concern about the cost of secure record destruction – in the first quarter cash management report I note $66.00 for secure record destruction plus a new charge – Electronic Archiving and Secure Destruction $129.63.

Our strata plan comprises 4 town houses. We have no pool, no elevators and minimal common area. Rarely do we need to employ trades people and in the majority of cases owners handle this. Our property is in excellent condition, there are no outstanding repairs required and our financial position is healthy.

As the strata manager does not acknowledge or respond to my correspondence and the other owners will not become involved in strata matters I am at a loss to know what my nest step should be.

I would like to move to a semi-self managed strata plan – one which attended to the paperwork and record keeping etc with the maintenance handled by the owners. However, I do not see that I would gain support for this move. We have one absentee owner who has their town house tenanted and does not become involved – additional costs are obviously passed on to the tenant/s. Of the remaining owners one would support my proposal and the other against any suggested change – more a personal decision than a rational decision.

Any suggestions would be greatly appreciated.

Dudley 

[Dudley]

Good Evening Whale,

Many thanks for your reply,

Re secure records destruction; we are a 4 townhouse strata, with minimum contact with the strata manager company. The majority of maintenance and repairs when needed are arranged by the owners and the invoices are sent to the strata manager for payment. Thus your amazement at the “paperwork” generated is shared by me. In fact I believe it is just supplementary income generation.

Re window safety compliance check; this is just another supplementary income generation activity. Our strata plan is in Sydney and I assume that the March 2018 timeline is applicable here. Our AGM is to be held this week and I intend to raise this matter at the meeting.

I have reviewed our Strata Management Agency Agreement, it has been in force for quite a long time – Dec 2004 – and there is not much detail. Would it be appropriate to ask for an updated contract listing “current” fees and charges. I am, unfortunately, the only owner who seems to least bit interested in the costs and operation of the strata plan.

I have suggested to the other owners that we consider a semi self managed plan, at this time with no success.

Any suggestions or advice would be appreciated.

Regards,

Dudley

[Dudley]

Good Afternoon Whale,

Many thanks for your prompt and valued response.

As always your objective and balanced information has given me the answers to my questions.

Regards,

Dudley

[Dudley]

Good Afternoon All,

Many thanks for the advice, I believe our deficit in the admin account has been caused by incorrect allocation of repairs and maintenance.

Would I be correct in assuming that the replacement of a leaking shower tray and roof repairs are repair and maintenance and should have been paid from the sinking fund?

If the above assumption is correct, what is the procedure to rectify the error thus bringing the admin account back to positive territory without the need for a special levy?

Once again FLAT CHAT has provided the answers.

Many thanks,

Dudley

[Dudley]

@Whale said:
With the utmost respect to my fellow posters, that’s an extremely simplistic view of what’s necessary to properly self-manage; something that I’ve been doing for our Owners Corporation since 2006.

The following are but a few of the self-manager’s other duties:

• Ensuring that all contractors are properly licensed, and have the correct insurance coverage.

• Obtaining competitive quotations to regularly “test” the marketplace.

• Issuing detailed Work Orders for all contracted activities including Term Orders for emergency/ after hours activities.

• Inspecting completed works.

• Paying all Invoices on time in order to maintain good contractor relationships (good ones are hard to find). 

• Liaising with Owners and their Property Managers regarding the proper responsibility for repairs to Units (they think that the O/C’s responsible for simply every item of maintenance or repair).

• Attending promptly to all Common Property maintenance issues.

• Mediating disputes and other “harmony” issues involving Residents. 

• Liaising with Owners who seek consent to renovations (and with those who don’t).

• Ensuring Residents’ compliance with the Plan’s By-Laws and Special by-Laws.

• Attending the CTTT on behalf of the O/C (an enlightening experience)

• Preparing Agendas & Minutes for Executive Committee and General Meetings.

• Preparing Financial Statements properly reconciled against the Plan’s Chart of Accounts (which also have to be setup in sufficient detail).

• Ensuring legislative compliance with revised requirements including: Environmental Planning & Assessment Regulation (Fire Safety),     AS1288/2006 – Glass Safety Audit, Workplace Health & Safety Act (2011) for the Safety Audit, Pesticides Act (2009) for Common Property Inspections & Treatments, Strata Schemes Management Act (1996) & Regulation (2010) and proposed Revisions, plus quite a few more; and….

• Maintaining the relevant records and processes of the Plan, which in 2012/13 for our 27 Lot Plan was summarised as:

E-Mail correspondence  sent / received	212
Invoices Received	159
Invoices Paid on-time	159
Invoices Issued (e.g. Levy Contribution Invoices)	114
Quotations Received	13
Work Orders Issued	19
Hardcopy Correspondence Received	5
Correspondence Sent (e.g. Debt Recovery)	61
Telephone Calls Received	35
Telephone Calls Made	92
Facsimiles Sent / Received	14

 

So Dudley…. would I do it all again?

Absolutely, – as apart from the money saved which we estimated as $15-$20K/a (or ≈30% of our total self-managed budget) when strata management fees, disbursements (Sch B), and the costs of “smarter” repairs are all considered, no Strata Manager could possibly manage a Plan as well as a committed and properly supported Owner or Executive Committee who after all, only has the one property to look after!

The set-up process would have been a whole lot easier for me if there were tools available such as the one you can now find HERE.

Good luck, and don’t be dissuaded from giving it a go by the information that I’ve provided; use it to your Owners Corporation’s advantage!

Whale,

Many thanks for this information. I have looked at the web site you indicated, it is SA based, would it be suitable for use in NSW?

Would it be proper to start researching self managed options before I have formally confirmed all owners agree with the concept. At this time I have had only brief general discussions.

 

 

[Dudley]

Good Morning Kangaroo, Whale & Scotlandx,

I will ensure that all invoices are addressed to the Strata Plan.

My sincere thanks for your replies to my question, I now have a better understanding of the “why” the invoice should be addressed to the strata.

Regards

 

 

 

 

[Dudley]

Good Afternoon All,

A few extra questions re the ceiling cracks etc.

1. Are the ceiling cracks, in top story of a two story townhouse, always a strata issue? The cracks have been identified as cosmetic NOT structural.
2. As well as the ceiling cracks there are issues, separation gaps and fallen cornices, are these also strata?
3. The property is 17 plus years, would painting also be strata?

I feel that “somewhere” the owners should be responsible for the ongoing maintenance of their own properties.

Dudley 

[Author]

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