#26187
Lady Penelope
Strataguru

    I can’t understand why the Property Manager (PM) is buying the bulk gas or how the PM became involved. How was this authorised? Did this occur as part of some cozy deal with the Developer and the PM from the inception of the scheme? 

    How long has this been going on?  Do you have access to a copy of the PM Contract with the OC – if this deal was part of the original developer’s deal with the PM then what does it actually say in regard to this issue?

    How long does the PM Contract have to go before it expires? If it expires in the very near future then you could encourage the OC to remove this element from any future PM Contracts and have the OC take over the responsibility of the bulk gas tank. This would cut out the profit making middle man (i.e. the PM) and make it cheaper for everyone. If you are being overcharged then it can be assumed that everyone else is being overcharged. Are other people concerned about possibly being overcharged? 

    Is the PM paying their costs for operating this business within your OC? I would imagine that a bulk gas tank would impact on the insurance of the scheme. Who is paying for any additional insurance? Who pays for the repairs of the gas lines to the individual lots? Is the PM operating his business with permission from the OC via a Common Property Rights By-law, and if so what are the conditions? NB: The Tribunal can make an Order revoking a By-law (SSMA 2015 Section 148). Is the PM paying the OC to rent out the site on which the gas tank is situated? 

    I believe that your assessment about the AER guidelines is correct. I believe that the PM and the OC know it too and that is why they are being obstructionists. 

    From my experience with owning a lot within a scheme in which there was a PM who rented out 75% of the lots to holiday makers these PMs wield tremendous power over the lot owners under their control. The PM usually controls the EC and the OC. Each lot owner who lets their apartments through the PM lives in fear of retributions from the PM – the fear of losing holiday revenue if the PM accommodates holiday makers in other apartment where the owners are more compliant.

    If I were you I would take this matter to NCAT. Your issue is complicated and contains references to other statutory bodies and other legislation which may be beyond our capacity to assist you with.  

    The EC cannot dictate which legal firm draws up your Common Property Rights By-law (SSMA 2015 Section 142) or whom you seek advice from. It is beyond the power of the OC to do so.

    Also, your by-law should not need to include any reference to any other lot owner being precluded from withdrawing from this current arrangement. Your By-law is a personal By-law for your specified lot only.

    Try and get yourself on the EC so you know what is going on. You can nominate yourself.