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I feel very sorry for the lady in the floor above the gym. The people measuring the noise should not have given the gym advance warning. Isn’t there something in the SSMA about creating a nuisance or preventing people’s peaceful enjoyment in their homes? Perhaps there is a noise by-law. Fining the gym won’t be enough. She would want to stop the noise altogether.
I know why people drop weights on the floor. My personal best deadlift is 82kg. In other words, I can bend over, pick up 82kg barbell off the floor, hold it until I am standing upright. Then I drop it onto the floor. Bang!
It makes a noise and I’m embarrassed about it. My personal trainer encouraged me to drop it. The idea is not to waste energy by gently lowering it to the floor. I need that energy for the next lift. Guys can lift much heavier. When they drop the bar, it is even noisier. It startles me every time.
Hello GreyArea
I suggest your read Section 108 of the Strata Schemes Management Act 2015. The full text of the Act is on the NSW Legislation web site. I copy/pasted it here.
108 Changes to common property
(1) Procedure for authorising changes to common property An owners corporation or an owner of a lot in a strata scheme may add to the common property, alter the common property or erect a new structure on common property for the purpose of improving or enhancing the common property.
(2) Any such action may be taken by the owners corporation or owner only if a special resolution has first been passed by the owners corporation that specifically authorises the taking of the particular action proposed.
Note—
If the special resolution is a sustainability infrastructure resolution fewer votes may be needed to pass it. See section 5(1)(b).
(3) Ongoing maintenance A special resolution under this section that authorises action to be taken in relation to the common property by an owner of a lot may specify whether the ongoing maintenance of the common property once the action has been taken is the responsibility of the owners corporation or the owner.
(4) If a special resolution under this section does not specify who has the ongoing maintenance of the common property concerned, the owners corporation has the responsibility for the ongoing maintenance.
(5) A special resolution under this section that allows an owner of a lot to take action in relation to certain common property and provides that the ongoing maintenance of that common property after the action is taken is the responsibility of the owner has no effect unless—
(a) the owners corporation obtains the written consent of the owner to the making of a by-law to provide for the maintenance of the common property by the owner, and
(b) the owners corporation makes the by-law.
(6) The by-law—
(a) may require, for the maintenance of the common property, the payment of money by the owner at specified times or as determined by the owners corporation, and
(b) must not be amended or repealed unless the owners corporation has obtained the written consent of the owner concerned.
(7) Sections 143 (2), 144 (2) and (3) and 145 apply to a by-law made for the purposes of this section in the same way as they apply to a common property rights by-law.
Note—
A new by-law or other changes to the by-laws for a strata scheme must be approved by a special resolution of the owners corporation (see section 141).Special resolution means that you hold a meeting of the owners corporation and 75% of the people voting at the meeting are in favour of the proposal.
If the laundry wall is shared between two lots or bounded to the outside world, it is common property. If it is an internal wall, then it is part of the lot. I think that pipes which only service one lot are part of the lot. You could ask a strata lawyer to help you understand whether this is common property.
You may notice that the subsequent section 110 handles “minor renovations”. Even though you think that a laundry reno is “minor”, there are two lists setting out what is considered a minor renovation:
Section 110 of the Strata Schemes Management Act 2015
(a) renovating a kitchen,
(b) changing recessed light fittings,
(c) installing or replacing wood or other hard floors,
(d) installing or replacing wiring or cabling or power or access points,
(e) work involving reconfiguring walls,
(f) any other work prescribed by the regulations for the purposes of this subsection.Section 28 of the Strata Schemes Management Regulation 2016
28 Minor renovations by owners
Work for the following purposes is prescribed as minor renovations for the purposes of section 110(3) of the Act—
(a) removing carpet or other soft floor coverings to expose underlying wooden or other hard floors,
(b) installing a rainwater tank,
(c) installing a clothesline,
(d) installing a reverse cycle split system air conditioner,
(e) installing double or triple glazed windows,
(f) installing a heat pump,
(g) installing ceiling insulation.I was responding to this statement from the original poster.
…I was told that if the SM didn’t initiate the work then she’ll just pay any invoice that gets sent to her and she’s not responsible for whether or not the work should actually be paid for by the OC. I’m talking about work that’s obviously private like fixing a tap in someone’s sink (no longer can be a defect either). Would most people expect some level of scrutiny by the SM before paying an invoice on behalf of the owners or is that just too much to ask for? If it’s too much, how easy is it for corruption to occur then!
Mitch had the example of a sink tap. I put forward a more extreme example of sending a dry cleaning bill.
The idea of a strata committee member sending invoices to the strata manager is a way of having checks on SM spending of OC funds.
I think we’re all agreed on this. Mitch is concerned that their strata manager is providing a bit too much customer service to some owners.
I don’t think a strata manager should be paying invoice just because a strata committee member sent it. If I sent you my dry cleaning bill would you pay it because I’m a strata committee member? The strata manager must have a justification for it. The strata manager ultimately answers to the Owners Corporation, not the strata committee.
From Jimmy and Sue’s podcast:
Well, anyway, so on LinkedIn, a strata manager has said, can the self-appointed experts stop criticising strata managers, like at the basic level of strata management, who are out there just doing, they’re trying to do their job? It’s not their fault that things have gone wrong.
LinkedIn has a reputation for self-appointed experts. I find this comment offensive. It is the remark of a bully who wants to silence us for waking up to their ruse. I had a look at what it takes to become a strata manager. There used to a TAFE Certificate IV for this job. Now it is only offered by private colleges. It’s not a three year bachelor degree. It does not require a competitive ATAR score for entry. Anyone who pays the course fee and works one year in a strata management office can do it.
I have two bachelor degrees and a graduate diploma. I am a self-appointed expert in strata management and I will continue to criticise poor and dishonest strata management when I see it. I have been running a self-managed strata plan for some years. It is a tonne of work; most of it done during the set up phase. I use a computer, a scanner, a printer and personal finance software. Levies are invoiced correctly. Recurring bills are paid by direct debit. Budgets, meetings, financial statements, capital works plans, by-laws are all compliant with the law.
Strata management is not a big mystery. You need to be organised, a bit nerdy and able to deal with people. As anyone who reads my posts knows, the Strata Schemes Management Act 2015 (or the equivalent in your state) is my friend.
It is the strata managers’ fault that things have gone wrong. They see where the money goes. They see over-servicing and over-charging:
An example of over-servicing is when we paid $130, year after year, for an income tax return. I called the ATO and learnt about ATO Ruling TR 2015/3, which says that we don’t need to submit a tax return if we have zero income.
In Jimmy’s interview with Linton Besser, Linton described a Zoom meeting between strata managers. One of the strata managers joked about the exhorbitant fee he charged for updating the NSW Strata Hub database. The NSW Govt charges $3 per unit for Strata Hub but the strata manager inflates this cost. Linton Besser said that the strata manager said he raised so much money he could buy a ute with the proceeds of Strata Hub update. He thanked the NSW Govt for inventing Strata Hub.
We were lucky to have a bank manager, who was serving on the strata committee of a self managed strata. He told us we would save a lot of money by going self managed.
This is a very broad statement when you balance the investment of personal time to manage the property (because not having an SM doesn’t mean you get to stop doing all that is needed) vs the fact that not all companies are out there trying to make a tonne off your scheme.
It is a lot of work. Fortunately, I know how to use a computer. I have spreadsheet, word processor, personal finance software, a laser printer, a scanner and plenty of paper and envelopes. The most important thing is trust. With the money we saved, we completed two expensive capital works projects which benefit all owners in the strata plan. Had we not rid ourselves of the strata manager, we would still be dreaming of making just one improvement to the common property.
The company I work for has fees that run between $1 to $2 per day per lot and we’re very upfront with notifying when requests could result in a schedule b charge and give the committee an opportunity to side step it or accept it.
You are saying that not all strata managers should be tarred with the same brush. You are defending the honour of the honest strata manager. Unfortunately, I have not met one of those.
My family suffered at the hands of a rather pathetic strata manager since the 1970s. We got rid of them when I asked them to stop wasting money.
The real cost of our strata manager was $4,900 per year. The dodgy thing was that they split this into two amounts so that we wouldn’t know how expensive they were. At the annual general meeting, they presented a contract with management fee of $3,600 per year. A few minutes later, when it came time approve the budget, a further $1,300 in management costs was added. These costs were nonsense:
$950 per year for “postage, copying, calls”. Each month a different amount was charged. It added up to exactly $950 at the end of the year. I could not see how these amounts coincided with anything like issuing meeting agendas or financial statements.
$130 per year for tax return which we did not need because we have no income
$220 per year for insurance valuation paid to a company owned by the strata managerWhen everyone gets along, it’s great. The first person that doesn’t like how things are going or the first by-law that starts getting broken it will be then you have to wonder if $1-$2 per day per lot is worth the headache.
I have dealt with by-law breaches, parking in the wrong place, unpaid levies, court hearings, verbal abuse, people hosing each other with water. Some owners have the idea that if they pay levies, strata should make their life utopia.
My friend told me that he heard this Scottish guy on the radio talking about strata. He thought I might be interested. 🙂
Excellent. Seven days is much better than three months!
ALTERNATIVE METHOD FOR PAYMENT OF LEVIES: When we became self managed, we passed a motion to open a bank account with Commonwealth Bank. We also had a motion to indicate who was the secretary, chairman and treasurer. Commonwealth Bank has a process in place to open bank accounts for self managed strata. Our Comm Bank staffer was reading from a list of instructions on his computer. Other banks did not know where to start.
We had to show the bank the minutes of the meeting where the motions were passed. They asked us to get every owner in attendance to sign the minutes. The bank asked to see our memorandum of articles. I said we did not have any. They asked about “rules”. I showed them our registered by-laws. The bank account was named after the strata plan.
We were lucky to have a bank manager, who was serving on the strata committee of a self managed strata. He told us we would save a lot of money by going self managed.
Is your issue that capital works are being done without the approval of the owners corporation?
What did the area look like before the paving was laid? Was it already paved? If this paving work alters the external appearance of common property (e.g. paving replaces grass), then a special resolution of the owners corporation is required. It cannot be approved by the strata committee alone.
You should be able to view all correspondence related to the commissioning of that paving work.
I had a situation in my strata. The strata manager was about to retire. He was friendly with one of the owners (who is not a strata committee member). Just before retirement, the strata manager spent about $3K of owners corp money on a structure which alters the external appearance of the common property. The plan was only discussed with the friendly owner. A special resolution was never passed before the work was done. Then the strata manager retired.
Another owner complained and took the matter to NCAT. The replacement strata manager arranged an EGM and told us to approve this work to avoid breaking the law. A special resolution was passed to approve the structure before the NCAT hearing took place.
Upon reflection, we should have terminated the strata manager’s contract for this. They breached the SSMA. They made us think that we caused the problem and told us to fix it. As owners, we are ultimately responsible for it.
This is a clear case of the strata manager pulling the wool over the owners’ eyes and calling the shots.
CONTRACT TERMINATION: Have a look at your contract to determine the exact date it terminates and whether there are conditions imposed on earlier termination.
SECRETARY: As secretary, you can call your own meeting of the owners at any time. You don’t even have to let the strata manager know. Refer to Strata Schemes Management Act 2015 . Schedule 1 Meeting procedures of owners corporation. NSW Legislation web site.
AGENDA ITEMS: If you read the meeting procedures part of the Strata Schemes Management Act 2015, you would find all the rules for adding items to the agenda. My understanding is that owners can add items to the agenda. Strata manager cannot tell the Secretary how to draft their motions.
BUDGET: As owners, you can vote to reject any strata manager proposed agenda item. I’ve done that. I struck out items we did not need and reduced the levies accordingly. I did it during the meeting. Strata managers don’t like me because I am not their rubber stamp. What you should be doing is having a discussion about the budget, proposing your alternative and then voting. It would be preferable to let the other owners see your proposed budget beforehand. You can do that by either including it in the agenda papers or handing it to every owner personally.
Always remember that the Owners Corporation is ultimately responsible and in charge of everything. The strata manager answers to you. This point was made clear to us by an NCAT member. An owner applied for “compulsory appointment of strata manager” for a period of three months. The NCAT member mused over the idea of giving the appointment to our existing strata manager! His reasoning was that the owners corporation was ultimately responsible for the strata plan. If the plaintiff was seeking to usurp the owners corporation, then the member preferred to appoint the existing strata manager with the powers of the strata committee. In the end, the application was dismissed.
But the premise is flawed. If a landlord has a long standing tenant say 10 years on a yearly lease that was renewed annually with rental adjustments, putting current rent, say for argument’s sake, double what it was 10 yrs ago, the bond data will reveal ONLY the rent charged in the tenant’s first year some 10 years ago because FT informs that the quantum of the bond cannot be changed until there is a change of tenant.
Fortunately, the NSW Rent Check system will take into accuont the past THREE months’ rental data for each poastcode. The Rent Check system is now up and running. There is a common questions section which addresses this issue.
Search for “Resdential Tenancies Act 2010” on the NSW Legislation web site.
Division 4. Sections 55 to 61 are relevant to your question.
Section 55 Paragraph 2 says that the landlord can enter the premises to do maintenance if they give the tenant at least two days’ advance notice.
I suggest you read through this yourself and see if there is a way you can remedy the situation. Perhaps a polite request to the landlord supported by a letter from your GP or specialist doctor would be enough.
… I think a properly trained A.I. could be incredibly useful for Fair Trading and the Strata Commission, if only to instantly explain to strata residents what their basic rights and responsibilities were, and maybe even what their chances of success would be if they pursued their issues to a tribunal.
We could put strata lawyers out of a job if the AI bot could:
- Read the legislation and tell us what we need to know in plain English.
- Write customised by-laws for us.
- Complete our NCAT applications
To test the AI Bot, I would like it to ask it to read through the NSW Legislation and find out what constitutes a “minor renovation” and what constitutes a “cosmetic renovation”. Would it know there are separate lists in the Strata Schemes Management Act and the Strata Schemes Management Regulation?
The strata plan is a legal document. If you are a lot owner, your strata manager (or strata committee) should let you have a copy of it. I cannot say who is responsible for that area outside the front door without seeing your strata plan.
By way of example, here is what my strata plan says. My strata plan is also townhouses. Each townhouse has an area called “garden court”, which is an enclosed courtyard at the rear of the lot.
“GARDEN COURTS ARE LIMITED TO A HEIGHT OF 3.66 ABOVE, EXCEPT WHERE COVERED AND A DEPTH OF 1.525 BELOW UPPER SURFACE OF GROUND FLOOR LEVEL OF RESPECTIVE ADJOINING UNIT.”
Therefore, in my strata plan, paving in the garden court would be the responsibility of the owner.
Just remember: this wording on your strata plan is going to be different. Ask your strata manager for a copy of the strata plan.
Hello OzCondo
I am not familiar with the “Owners Corporation Act 2006” which is the law for Victorians. I suggest you google that string and read the Act yourself. Those are the laws or regs you are seeking.
I had a quick look and noticed these two numbered sections:
Section 11 is titled “Management of owners corporation and powers to delegate”
Section 71 is titled “Agenda for annual general meeting”Paragraph 3 of Section 11 says that the owners corporation cannot delegate something which requires an unanimous, special or resolution at a general meeting. Section 71 says that the approval of the budget should be an item on the agenda of a general meeting.
I strongly urge you to read through the Act and put some questions about this to the committee and your strata manager.