Flat Chat Strata Forum Common Property Current Page

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  • #8952

    Hello

    Hoping someone can give me some advice.  I think I have a claim under Common Law but would appreciate some thoughts. 

    Strata struck a levy for major remedial works to the entire building.  My portion was $61,158!  

    I informed my tenant of the remedial works 2 months out, they had no questions.  

    Unfortunately my tenant spoke to other people in the block who told them horror stories about the works which was not true.  My tenant gave me notice to vacate and vacated a couple of days out from the date of work commencement.  Now I have no tenant. 

    Strata had signed the contracts for the work over two weeks out before the date of commencement but not thought it important to send a letter to all owners and tenants informing them of what would happen during the remedial works.

    Strata sent a letter informing of the major works less than a week out from the commencement date.  Obviously too late to save my tenant.  Works are expected to be for 4 months ending November 2013. 

    It is a nice apartment but I doubt I will be able to find a new tenant whilst the works are going on or if I do, it will have to be at a discount rate, my concern is the type of tenant I will get for such a low rent. 

    Can I claim loss of rent for 4 months from the Owners Corporation?  What are the rules around notifying tenants and owners of such major capital works? 

    Thanks in advance for your comment and help. 

    SmileyHouse 

     

Viewing 6 replies - 1 through 6 (of 6 total)
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  • #19118

    Hi SmileyHouse

     

    I’m not sure who you would make a civil claim against: the fact that you knew of your special levy and were able to tell your tenant 2 months out meant that the EC/OC did in fact inform you. Also, as an owner, you and the other owners had to vote to approve a special levy for the remediation works in the first place, so everyone who attended the AGM/EGM or read the minutes knew that this was coming.

     

    While your EC could have sent the letter earlier than 1 week prior to the commencement of work, at least they have notified everyone in the building (bear in mind at a minimum they are only required to notify those on the strata roll – ie, you the owner).

     

    If the tenant chose to move out citing potential inconvenience due to the planned commpon property renovations, then I’m sorry to say, but that’s just how it is. As a landlord (I am also one myself) you take a certain risk with any letting. Just as you have the right to end a tenancy, so do they.

     

    It’s a very steep levy and I feel for you, but you haven’t said that the common property work will actually make your lot uninhabitable. I can only assume that the work – while major based on your cost alone – will not render your lot uninhabitable during the renovations. So I don’t think you have any basis for a claim.

     

    Lastly the renovations to common property are to everyone’s benefit in the long term. If you sue your OC for loss of rent, the money that the OC has to find to fight the claim (and/or simply pay up) has to come from somewhere, so any civil action you launch will likely result in increased levies for everyone.

    #19106
    scotlandx
    Strataguru

      I agree with mattb, and the notice has got nothing to do with it – as mattb has pointed out, and you say you told the tenant 2 months before.

      Also, the tenant told you they were moving out because of the works, but that may not be true.  We did some major works some time ago, and a tenant moved out in the middle of them.  The owner then told us that we were responsible for them moving out, and I said well that’s interesting, because the tenant told me he was moving out because he was moving to Melbourne…..

      #19124

      Thanks guys 

      My unit is liveable and is in the middle of the block with no internal damage so the works will only directly affect my unit for 2-3 weeks with boarding of the unit 1 metre in.   Length of remedial work is around 16 weeks.  Other units have not faired as well and people have had to move out.  These are the people that my tenant spoke to before I could get the strata to send around a letter setting out what exactly the works meant to each unit. I could rent it out at half rent but I would just get poor tenants and then have to deal with them. 

      I read Jimmy T’s article some months back around this issue, perhaps my reading was incorrect.  Jimmy mentioned that if a tenant moves out citing works that the strata is commencing then owners have the right to claim loss of rent from the Owners Corporation. 

      The strata struck the levies of $61,138 (some apartments more) and requested payment from owners within 14 days.  Given this I had to borrow money from family (I was trying to do a career change at the same time so had resigned from my job of 8 years – no stable job for 3 months – no bank loan) with the proviso that I pay it back in November when I sell the property.  So my concern for the Owners Corporation is as much as they had concern of giving some more advance warning especially of a levy of this magnitude (even 30 days) before striking a levy which some of the owners still can not pay. 

      I raised the issue of the works in 2008 and requested the works be put into the 10 year sinking fund plan but this did not happen and I got tired of fighting the other ‘short term investors’ as opposed to ‘live ins’ on the point. 

      Guess the real story is ‘sell, sell, sell’ if you get wind of remedial works (which is really concrete cancer).  

      Thanks for your help. 

       

       

       

       

       

       

      #19125
      Jimmy-T
      Keymaster

        @SmileyHouse said:
        Thanks guys 

        I read Jimmy T’s article some months back around this issue, perhaps my reading was incorrect.  Jimmy mentioned that if a tenant moves out citing works that the strata is commencing then owners have the right to claim loss of rent from the Owners Corporation. 

        This is a very grey and contentious area which falls between the stools of collective responsibility and individual rights. You have a “right” to take any action you wish but there’s no guarantee that it will either be successful or, if it is successful, that whatever damages you win outweigh the financial and social cost of taking the action.

        My rule of thumb would be if everyone is suffering a similar level of disruption then your claim is unlikely to succeed.  However, if one owner is carrying the can so that everyone else can benefit, then there might be reasonable grounds for a claim for compensation. And it’s at this point that I strongly advise you to have a chat with a lawyer (just click on the ad above, if you’re not sure who to call).

        Strata law is not the be-all or end-all in disputes.  It is subservient to other laws and it is not unknown for strata owners to step outside the Fair Trading/CTTT nexus in search of a more equitable outcome, via the District and Supreme Courts, for instance.

        However, if you felt you were being unfairly treated, you could raise a complaint at Fair Trading, the first step of which would be mediation.  One argument you might make is that the Owners Corp had acted incompetently, causing you greater financial stress than was necessary.

        But, really, if you want to take this further your first step should be to call a strata lawyer and ask them what they think.

         

        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.
        #19127
        Kangaroo
        Flatchatter

          I know JT always says that strata is different, but I think there are two somewhat analogous situations that you should consider before you push a wheelbarrow full of banknotes into a lawyer’s office.

          Note – Concrete cancer isn’t covered by the typical strata defined event insurance, and given the length of time it takes to develop, probably not by home warranty (defects) insurance either. So, there’s no insurer to claim against for relocation expenses.

          1) What if you were living in your unit? Would you temporarily relocate or would you just put up with the inconvenience and noise for the duration? What if all residents had to move out? The OC would have to pay compensation to all owners. Basically, each owner would be paying their own relocation expenses, just funneled through the OC via a special levy. The only case you might have is if, as JT says, the inconvenience fell unequally upon owners.

          2) What if you owned a torrens title house which you leased out but needed extensive repair? You’d probably do it between leases, losing rent money for the period. After having to organise and supervise the repairs yourself !

          Why does everyone think that living in Strata is about always having someone else to blame or shove the cost onto?

          As Forrest Gump said “Sh*t happens”.

          As I say, sometimes even to tenants.

          Your unit has not been declared uninhabitable, so if the tenants left before their lease expired, sue them.

          If anyone has a moral right to compensation, it is probably the EC members who had to spend their valuable voluntary time to organise the rectification and will probably also supervise it to ensure all owners get value for money, while all the absentee landlords sit on their couches with their feet on the ottoman counting their rent money.

          #19135
          struggler
          Flatchatter

            I totally agree with Kangaroos comments about those in strata blame others, expect everyone else to pay and someone else to do the work.

            But one thing stands out from SmileyHouses (hereinafter referred to as SH) second post.  SH says that he brought up the matter of these repairs back in 2008.  SH asked then that these works be put into the 10 year sinking fund plan.  But this was ignored by the EC/OC.  Perhaps if they had taken heed of this matter back then it would have been easier on the hip pocket.  And perhaps if they had tackled the problem back then it would have been cheaper for each owner.  Over the last 5 years no doubt the concrete cancer had only increased as has the cost of living not to mention the cost of materials and labour.  Would have been cheaper 5 years ago.

            Not to mention the fact that if they had started some kind of special levy and if extra money was collected each quarter for the past 5 years how much money they would already have in the bank to go towards the costs.  Much easier to raise a some money over the years than find $60,000 at once.

            If you want to make a claim against anyone, I would be looking at those who decided not to pay attention to SH back in 2008.  

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