In these straitened times, many buildings are looking at ways of saving money. Some are sensible economies, other savings are merely penny-pinching and corner cutting that isn’t going to do anyone any good.
QUESTION: Our oldish building of 20 units is not a particularly attractive block but it does have a sizeable garden which was recently renovated and is maintained at a cost of about $5 per unit per week.
Now our strata manager (who is also an owner) insists we have to cut spending on it.
Is there any proof that a pleasant garden increases the value of a strata property? Also, is it a conflict of interest if a strata manager who is also an owner demands control of the budget? – Greenfingers, Bondi Beach.
ANSWER: There is no way to quantify the actual value of a well-kept garden to a building except the obvious: a building that is well-maintained is going to leave a better impression with potential purchasers.
It’s not just a matter of looking good, it’s also the clearest way of telling buyers (and tenants) that the people who live in and run this building look after it properly.
However, it may be that you could get the same result at a lower cost so it’s worth shopping around for alternatives and checking what nearby buildings pay.
For that matter, the same applies to your choice of strata manager. He can demand control of your budget all he wants but you don’t have to give it to him and the fact that he wants it should have alarm bells ringing
He is entitled to his opinion as an owner but if he is trying to bully other owners into agreeing to his budgets, it’s time to ask him to give up being strata manager so that he is arguing on an equal footing with the rest of you.
By the way, he doesn’t get to vote on whether or not he is retained as strata manager – that would be a conflict of interest.
A well-kept garden definitely does help with apartment values and rentals. But the identity of your strata manager won’t make the slightest difference to potential buyers or tenants.