WE get lots of complaints about Owners Corporations and executive committees ‘wasting’ money but what about buildings that are making too much?
QUESTION: My Owners Corp seems to be raising profits through various ‘fees’. For example, they want to charge me about 20 percent of my quarterly strata bill to provide me with a new swipe access key.
I would be cool with this if it reflected the actual cost of the key but they are charging me five times that – essentially making a profit on the provision of common property. As our admin fund is getting low, it seems like the EC has started a few little earners on the side to top it up.
FYI: this not a ‘deposit’ for the swipe card. I will getting nothing back if and when I leave the building.
I thought an OC had to operate on a ‘not for profit’ basis. What’s the strata law on this? – Sjones, Darlinghurst
ANSWER: I sympathise – it’s hard enough paying the levies we do understand without additional charges that don’t add up.
However, there’s nothing I know of to prevent OCs from making a profit since all the members – ie, the owners – benefit from that and the tax office treats excess funds accordingly.
More to the point, one stray swipe card can undo an entire security system and deposits are a bureaucratic nightmare (and don’t work).
So add a deterrent component to the price of the actual key and the administrative cost of cancelling your previous key and registering your new key and you may be close to that factor of five.
But I’d ask your next AGM how finances got to such a parlous state that these top-ups are needed. Also, a motion that key charges should be no more than the cost of the swipe key plus whatever your building or strata managers charge for admin might get a lot of support.
Join the discussion or ask a question on the Flat Chat Forum.
Mouldy flat and
a rotten agent
QUESTION: Some overseas friends of mine rented a unit in the inner west which became badly affected by mould over summer.
The mother, for whom English is a second language, went to the rental agent who said ‘that’s how it is in Sydney’ and took absolutely no responsibility for the unit.
Apart from damage to their clothes and property, there is a health issue – their two children have been sleeping with their parents as their bedroom is mouldy, despite constant cleaning.
Where can she go to be advised of her rights and ge
< ![endif]-->
FLAT CHAT by Jimmy Thomson
Owners locked
in to charges
for new keys
WE get lots of complaints about Owners Corporations and executive committees ‘wasting’ money but what about buildings that are making too much?
QUESTION: My Owners Corp seems to be raising profits through various ‘fees’. For example, they want to charge me roughly 20 percent of my quarterly strata bill to provide me with a new key.
I would be cool with this if it reflected the actual cost of the key but they are charging me six times that – meaning they essentially make a profit on the provision of common property. As our admin fund is getting low, it seems like the EC has started a few little earners on the side to hit unfortunate owners in the hip pocket.
FYI: this not a ‘deposit’ for the key. I will not be getting this money back if I leave the building and I’ll have to pay for any new ones.
I thought an OC had to operate on a ‘not for profit’ basis. What’s the strata law on this? – Sjones from Flat Chat Forum.
ANSWER: I sympathise – it’s sometimes hard enough paying the levies we do understand without additional charges that don’t add up.
However, there’s nothing I know of to prevent OCs from making a profit since all the members – ie, the owners – benefit from that and the tax office treats excess funds accordingly.
Also one stray key can render an expensive security system defunct. Deposits on keys are a bureaucratic nightmare and don’t work – former residents often keep keys to be cashed in later but they still have to be cancelled.
So, to the price of the actual key, add the administrative cost of cancelling your previous key and registering your new key plus a deterrent component and you may be close to that factor of six you mention.
If you still think this is unfair, challenge it at your next AGM – it’s your OC, after all.
Join the discussion or ask a question on the Flat Chat Forum (flatchat.com.au/forum). Jimmy will be answering questions live on James Valentine’s radio show on ABC 702 on Tuesday, March 1st.
t support for this? – Steff, Marrickville
ANSWER: By law, the landlord has to provide habitable accommodation if he’s charging rent for it.
Tell your friend she can demand a rent reduction for the time the apartment hasn’t been fully habitable, she may be entitled to compensation for the damaged goods, she can probably terminate the lease without any penalty and she can’t be thrown out just for exercising her legal rights.
On the other hand, if the owner does fix it, she and her family could be living in a building site for a few weeks.
TenantsNSW will provide advice, possibly with an interpreter service (call 1800 251 101 during office hours).
Ask your question on flatchat.com.au/forum.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
