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Topic
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A couple of members of our body corporate are having difficulty agreeing on the need to spend money on extensive work now required to the exterior and common areas of our block of flats. We need to make a more convincing argument to move ahead with the work.
The block has not been well-maintained over the years and is falling into potentially very serious disrepair. For example, if some of our exterior woodwork isn't painted within 6 months it will start to rot and will require full replacement, and our carpets are ripped in places and as such, are a real safety hazard. Paint is peeling everywhere. Basically, while the individual flats are terrific and the block is well located (within 4 kms of Melbourne CBD), the exterior looks like a real dump and is set to worsen if we don't undertake substantial work now!!
Over the past 15 years or so various attempts have been made to raise levies to cover exterior painting and replacement of interior common area carpets. While we now have enough funds to cover the cost of carpet replacement, we have never been able to raise enough funds through increased levies to cover more substantial work. The painting work and carpets have been on the 'to-do-list' for years! As a result our BC Manager is looking into a strata finance option for us.
Most BC committee members realise the increased investment value associated with upgrading (and at least maintaining) the building and are happy to go down the strata finance path. However, a couple are extremely hesitant and inclined not to consider the 'bigger picture' beyond their own flats.
Does anyone have:
- advice on how to approach this scenario?
- some research/data/figures to support the idea that the presentation of your building has a positive impact on the sale value of your flat?
- any experiences of using strata finance to share?
Thank you!!
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We are in need of having our complex painted too. It has never been painted and according to information I have received, painting should be scheduled about every 8 years. The quote was reasonable and from a reputable painter (who has painted interiors in the complex). But the quote was knocked back at the AGM. They do not seem to realise that we have had some wood rot and to replace/repair that is far more per unit that the cost to paint per unit. We have also had the exterior “steam” cleaned in preparation for painting. We will probably have to do this again. The cost of repairing wood and cleaning will add to the cost of painting, so obtaining a cheaper quote is useless.
Have you spelt out to those reluctant to spend money how much it would cost to have someone fall on your stairs? We had a fall and the insurance company came out to inspect the complex, found areas they were not happy with and we had to spend $10,000 before our policy would be continued. As well, our premium increased quite a bit. If we did not carry out the works, we may not have been covered by insurance and no one could tell us what it would mean to not have insurance.
And there is no doubt that it would improve the value of the units if the entrance ways look great.
We have not had to look at getting finance for our complex. We have a good balance in the account, it is just that no one wants to spend the money (unless it is on their unit no doubt). And those who do not want the OC spend the money, will also not put their hands up to help the OC in any way shape or form.
There are two basic issues here. The first is the desirability of maintaining the aethetics of the building and the second is the legal obligation imposed on all Owners Corporations to maintain and repair the building.
The second one is easier to manage: get a report done on essential repairs and if the OC (that's all owners) refuse to do the work, drag them off to the CTTT and make them.
The first issue – the look of the building – should be obvious but requires a more subtle approach. Enlisting the help of local estate agents for their opinion on what even a minor refurb would do to the value of all the properties in the building would present a fairly compelling argument. Even a five or ten percent boost to property values is going to more than cover the cost of a paint job. Get a few examples of property prices in nearby buildings that look better.
In my own building a real estate agent's horrified reaction to an ill-conceived, penny-pinching plan to reduce security pretty much killed off that idea.
As far as finance goes, Lannock Finance – specialists in strata loans – is one of the sponsors of this website and they wouldn't be if they weren't a reputable company. You can find out more about them here.
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.
Yes, we had a 10 year plan done for our complex. It did highlight some things we had not even considered, like the cleaning and resurfacing of the driveway (we had no idea that driveways needed resurfacing and that is something we attended too fairly quickly). The report pointed out that if we didn't do this, we may need to redo the driveway in the future at considerably more expense.
However, the report also covered items that we did not believe was common property. The report was based on the inspection of one unit in the complex and there are different layouts and designs in this complex. So good idea to spell out any differences in units in your complex to get a more accurate report.
Hi, I'm a newbie so forgive me if this isn't quite the right forum.
I'm head of our EC in a small apartment of 8 (2 storey, 1900 building converted to apartments some 15/16 years ago). We have some relatively major repairs to do as the conversion was done badly or cheaply in critical areas. We have to replace window lintels as they aren't galvenised and are rusting through and cracking the render, and potentially the brickwork, waterproofing above the sandstone foundation and of course re-rendering (textured and smooth finishes) and painting the main building.
I've looked at various companies who are specialists in each of the areas, but would rather a more co-ordinated approach so we don't have tradesmen/companies denying responsibility should anything not work. It was suggested recently I try a building maintenance company. Is this the correct route, or do you have other suggestions – perhaps even companies you have used.
Also finally, who do you hire to get a 10 year maintenance plan done. I know we need it, but our strata manager hasn't given any advice as to how to get this done.
Regards
Innerwestie said:
Hi, I'm a newbie so forgive me if this isn't quite the right forum.
I'm head of our EC in a small apartment of 8 (2 storey, 1900 building converted to apartments some 15/16 years ago). We have some relatively major repairs to do as the conversion was done badly or cheaply in critical areas. We have to replace window lintels as they aren't galvenised and are rusting through and cracking the render, and potentially the brickwork, waterproofing above the sandstone foundation and of course re-rendering (textured and smooth finishes) and painting the main building.
I've looked at various companies who are specialists in each of the areas, but would rather a more co-ordinated approach so we don't have tradesmen/companies denying responsibility should anything not work. It was suggested recently I try a building maintenance company. Is this the correct route, or do you have other suggestions – perhaps even companies you have used.
Also finally, who do you hire to get a 10 year maintenance plan done. I know we need it, but our strata manager hasn't given any advice as to how to get this done.
Regards
Hi Newbie,
There are a large number of very efficient engineers & architects in NSW who will inspect & oversee each stage of your building work & warrant it. They will write the specification & obtain quotes. This is the best most hassle-free way. Get a professional to do a professional job.
I suggest you ensure that they are members of their appropriate industry body & also ISTM (Institute of Strata Title Management) so that you can be sure they understand strata.
It is likely you strata manager can give you a good recommendation as well
Sharyn Machin
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