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Shower leak reported by tenant mid May 2015. Took 8 weeks for Strata Manager / BC to get quote & 3 more weeks ( total 11 weeks) for BC decide they would only pay 50%. Reason finally given (after an extra week ) is ” As the property is professionally managed ‘someone’ would have known about it earlier and should have reported it earlier”. Have supplied Inspection reports which show that nothing was visible at last 2 ( 6 monthly ) inspections. And have supplied Tenant Reported Problems reports which also make no mention. BC is still not agreeing to pay 100% some 3 weeks on ( now 15 weeks since reported ) Fed up tenant has given notice as carpet in bedroom ( associated with bathroom wall ) is now rotting / mouldy / smelly. Next step?? How to get them moving AND what penalty / compensation can I possibly get as the damage is escalating due to their inaction.
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Strata bunny – I recently had an almost identical problem in our self-managed Plan where as both Secretary and Treasurer, I have to deal with matters of this type.
This recent matter in our Plan was not the first of its type, where Property Managers have made the Owners Corporation (O/C) aware of problems involving areas of Common Property within a permanently tenanted Lot, and have concurrently provided a “maintenance request” for the O/C to urgently attend to it as (typically) their tenant is complaining.
Upon receipt of this most recent request, I made arrangements with the tenant (with whom I’m acquainted) to allow me access to inspect the problem, whereupon I found a common wall of the shower recess with lifting paint above the tiles, white residue from the render oozing from the grout lines, and extensive mould in both corners and along the ceiling interface.
On the basis of my visual inspection, it appeared to me that the problem started long before the Property Manager reported it, and after some inquiries of the tenant that suspicion was eventually confirmed.
The tenants advised me that they had left an advisory note inside the Unit prior to the last advised inspection by the Property Manager “around 6 months ago”, and that after they returned home and found the note where they’d left it, and no customary “calling card”, they then personally advised their Property Manager of the problem, even though they weren’t too concerned as they didn’t intend to renew their Rental Agreement upon the expiry of its fixed term.
A few more questions and I was able to determine that the problem in the shower recess was evident at least eight (8) months prior to the tenant advising of their intention to vacate, and that it was only reported to the O/C via the Property Manager’s “maintenance request” at that time.
Anyway, as I avoid dealing directly with Property Managers I advised the Lot’s Proprietor / Landlord of the problem and the extent of it, where by the way there was also an accumulation of moss on the outside (brickwork) of the shower recess wall, and of the O/C’s intention to in the circumstances attend to the necessary repairs to its Common Property, and to then invoice the Proprietor / Landlord for 100% of its resultant costs.
Well….. didn’t that set the cat amongst the pigeons!
The Proprietor/ Landlord complained bitterly and sent me a copy of the last two (2) Condition Reports that she’d received from her Property Manager, including one that was dated just 15 days prior to my inspection, both of which showed that everything was just hunky-dorey, and in fact the most recent one included a postscript from the Property Manager stating that there had been no need for any additional outgoings (maintenance or repair costs) during the past 12 months; presumably due to their great management!
Anyway, a few e-mailed photos to our Proprietor/Landlord from the O/C showing the extent of the water damage and some other areas of concern that my phone just happened to capture such as of damaged ceiling fans and floor-coverings, and the next phone call that I received was from the Property Manager who desperately tried to cover his backside with that of the O/C, or more specifically with mine!
There a bit more to all of this, but suffice to say that it came about that the Property Manager didn’t personally inspect the Unit at any time during the tenancy but had only signed-off of paperwork prepared by “others”, but in an effort to add-value to his role when little actually exists (my opinion) merely signed-off of those hunky-dorey Condition Reports, and then tried to have our O/C attend to their “maintenance request” before the Property was again made available for rental.
The Property Manager’s strategy didn’t work, and our Proprietor/Landlord has received and paid the O/C’s invoice for 100% of its direct costs to repair the Common Property, that turned out to be quite minor plumbing repairs and extensive consequential civil works ($$).
Unless you can obtain conclusive evidence to support a different scenario from your tenant, your Property Manager, or maybe from an independent trades-person who can assess and attest to the damage timeframe, then as you can guess I’m supporting the stance taken by your O/C and likely its Strata Manager who it appears, like me, has almost certainly been confronted with similar situations in the past.
So I’d be agreeing to pay that 50% so your O/C can get on with those repairs before the extent of the damage worsens, and so that you can get a new tenant and possibly a new Property Manager; it pays to inspect your investment property yourself on occasions by the way.
Strata bunny – you have mentioned that it is a “common property (water membrane) repair” in your subject line but then also mention that “carpet in bedroom ( associated with bathroom wall ) is now rotting / mouldy / smelly”.
In NSW the OC is only responsible for the waterproofing membrane on the floor or common property wall (i.e. the wall adjoining another lot or common property area). It is not responsible for the waterproofing membrane on internal walls of your lot. Our OC has had a similar request for repairs from a lot owner and the OC asked the Land and Property Information (LPI) Strata Team for clarification:
Q1: What is your definition of a shower recess which is located on and internal wall? It is obvious that the floor and the tiles attached to the floor are common property but how far up the internal wall is classified as common property.
A1: Tiles on an internal wall are not common property.
Q2: Whose responsibility would it be to repair water leaking through tiles on an internal wall not affecting any other lot?
A2: Leaking through an internal wall not affecting another lot is the responsibility of the lot owner.
Strata bunny – if it’s the original shower area (floor/walls) that was in place when the Building was constructed, then it’s the Owners Corporation’s problem and conversely, if the area’s been since renovated by an Owner (not necessarily you) then the problem’s yours.
Assuming the former, then you need to advise the Owners Corporation (that’s not some separate entity and rather is made up of all Owners by the way) in writing of all the relevant facts that you’ve mentioned in your post, and further advise that if the repairs for which it’s 100% responsible under the provisions of Sect 62 of the NSW Strata Schemes Management Act (SCMA) and for which it’s already admitted (some) responsibility are not commenced in say 7 days, then as it’s been 15 weeks since you first requested it to “exercise its functions under Sect 62” (use those words) that you’ll be seeking an Order in the NSW Civil & Administrative Tribunal under Sect 138 of the SCMA so as to have it immediately exercise those functions.
You’ll find some additional information about Mediation and how it fits into dispute resolution HERE.
Hi Strata Bunny,
I agree with Whale 100%, but would also be seeking any damage caused to personal fixtures & fittings as a result to the defective membrane in the shower recess!
You may need to get an Expert Report (see Sponsors to flat-chat) but NCAT should make an order for the repairs (and damaged fixtures / fittings) to be carried out. Make sure your Expert Report makes note of any ‘lateral transfer’ of water and or ‘capillary action’ that most likely damaged your “internal wardrobe side wall plus the carpet” as neither you nor your tenant are the cause of that damage.
I do not agree with your comment that you are “fully responsible for repairing the damage to the internal wardrobe side wall plus the carpet” which in my opinion is how the problem became apparent… unless you have spider-senses or can see through solid structures (such as the shower base)!!
You never know, your OC may agree at mediation to pay for it all, as they should!!!
Importantly, I think you should submit an application for Mediation (NSW Fair Trading) at the same time you issue your Letter of Demand (Whale’s advice) so that you can get things moving more quickly.
Good luck and I really hope your EC do the right thing by you.
Your very welcome Strata Bunny,
The 50% precedent thing is otiose if faulty membranes affect the majority of lots as everyone will pay through levies.
Maybe your EC should consider repairing them all at once to minimise costs and maximise efficiency.
All the best with this,
Thom
….and remember that due to the high numbers of failures involving the waterproofing of wet areas such as Strata bunny‘s bathroom, Contractors undertaking such works both originally and remedially (in NSW) must hold a Waterproofing License issued by the Department of Fair Trading, and must additionally provide a Statement of Compliance indicating that the work they’ve done complies with Australian Standard AS 3740 – Waterproofing of Domestic Wet Areas.
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