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  • in reply to: Special levy imposed – no reason given #71808
    david2708
    Flatchatter

      As an owner you are entitled to the minutes of any meetings and general AGM reports. In them you may see whether an upcoming item replacement may be the cause or the general management of the scheme has been poor.

      I read the minutes of several AGM meetings for a friend who wanted to buy into a scheme. They had a Capital works levy of $20 a quarter between 12 units. There was a scheme with a special levy just waiting to be struck.

      in reply to: What can we do about an absent filthy hoarder? #71422
      david2708
      Flatchatter

        We had a hoarder who literally had every room in his unit piled high with garbage 4-5 feet high. To enter his unit, he had to climb through a window to get in as his rubbish wouldn’t allow him to be able to open his door. He was on the ground floor

        The only thing I can think of is the place is a fire hazard and you perhaps can report it to the local  fire department to investigate and maybe they can enforce  something.

        For us, our  hoarder got stuck between his front door and garbage on the inside and he was found dead a month later.

        A neighbour detected a smell emanating from the unit and his body was discovered by the police. They had to break in through the window to discover the body. Sad story.

        in reply to: Levies debts – your thoughts #70166
        david2708
        Flatchatter

          Unpaid levies have a great impact on smaller schemes where every other owner has to carry the debt of others.

          This forces future budgets on smaller schemes to be recalculated at the AGM.

          Since I know there are particular owners who are notoriously late with levies and in our case one who we have before the court, I have to factor that in to future budgets.

          I have to build in a buffer to run the scheme because of late payers and basically calculate the division of levies to not how many lots in the scheme, but to how many lots I know will pay their levies consistently. This causes increased levies to cover that culture in the building

          I am sympathetic to genuine cases with short term financial problems, but you get many owners who claim financial distress on their investment properties. Sorry, but if you have an investment property, you are NOT in financial distress. You have the luxury of an investment property that you shouldn’t own if you can’t pay for it.

          The court process can take while to work itself out, but it is necessary with some lot owners

          Our case is near nine months in to a stage of garnishee orders, writ for levy of property and forced sale of property if pushed to the limit. The legal system is slow unfortunately.

          When you have bad owners with bad faith, I would rather make them sell the property and perhaps take a  loss even in a bankruptcy,  than be stuck with an owner who will continually be an issue. Who you know may end up being forced to pay their debt by the court, but you just know they will do it all again and again.

          Whilst it is standard that owners get 3 reminders about late levies automatically, the 4th stage of calling in the debt collectors is not triggered in the system. It’s up to committees to alert Strata managers when the 4th stage is triggered. Why it’s not automatically triggered in the system as the other 3 stages is a mystery to me.

          in reply to: Levy Compliance Deterioration #69168
          david2708
          Flatchatter
          Chat-starter

            I queried altering the debt recovery stage timeframes with the Strata manager at the AGM and was informed the time frames I listed were  industry standard. Perhaps she is incorrect.

            in reply to: Levies debts: Who suffers when you can’t pay? #69074
            david2708
            Flatchatter

              It can take quite sometime before Debt Recovery steps in and it gets to the point of property seizure. 3 months to get to stage four and then when debt recovery steps in, that can go on for many months on top of that. How many quarters have you not paid?

              in reply to: Levy Compliance Deterioration #68984
              david2708
              Flatchatter
              Chat-starter

                Even committees with due diligence face the drawn out process of getting levies paid.

                Levy Recovery Stage 1-issue reminder 35 days after due date

                Levy Recovery Stage 2-issue first levy recovery letter (usually final notice) 60 days after due date

                Levy Recovery Stage 3-issue 2nd levy recovery letter 75 days after due date

                Levy Recovery Stage 4 -106 days issue letter of demand usually sent by legal at this stage

                And more time passes after that.

                Then legal makes field call to debtor’s address after no response to sent letter.

                Failing that, makes a statement of claim to the court, then another period of time passes for a default judgement to come into affect.

                Then try and pursue debt possibly through a garnishee order on rental etc.

                As you see it’s a long drawn out process that a committee is stuck with in pursuing outstanding levies.

                in reply to: Levy Compliance Deterioration #68969
                david2708
                Flatchatter
                Chat-starter

                  It is not a matter of a slack committee not holding owners to account.

                  The debt recovery process in of itself takes time to get to that final stage. You get your reminder notice 30 days post the due date, more time passes before the final demand letter is sent and then when it hits the lawyers, you have your ‘field call’ to track the the owner down and the time protocols there, you have then statements of claim drawn up with the court, and then more time to pass for a default judgement, and then the process of getting the money with that default judgement.

                  The whole process is quite drawn out when an owner wants to get that far.

                  Some owners who may know that system know they can exploit the process and delay payement till the final moment before the lawyers come knocking.

                  As to other owners seeing others not paying and join in for the free ride, most owners would not have a clue who pays and who doesn’t. Most don’t follow what their scheme is doing nor read the strata balance sheet or AGM minutes.

                  Bottom line is even diligent committees who attend non payers still face the hurdle of the legal drawn out process of getting the money in the first place.

                  One thing Strata needs to sort out is the Strata Roll where owners can just list a P.O. Box and nothing else and chasing them up is difficult when you don’t even have an address to get hold of them.

                  in reply to: Levy Compliance Deterioration #68842
                  david2708
                  Flatchatter
                  Chat-starter

                    We’re looking at a default judgement in mid June by the looks of it on one lot. It is a long standing tenanted property and perhaps some can be recouped through a garnishee order on the rental.

                    in reply to: Should I seek approval for unauthorised work? #68615
                    david2708
                    Flatchatter

                      Unapproved renovations are quite common in smaller schemes. In talking to a number of people there is a wink and a nod between residents and even strata committee members when it comes to renovations. You do yours and I’ll be doing mine and we’ll keep it between ourselves. Again it happens on smaller schemes and also ground floor units that will have less effect on other units. Residents, understandably feel agrieved they have to fork out money even when a building has a blanket bylaw for renovation before they even start the reno and its costs.

                      I clarified this with our strata manager who had this reply.

                      “The building does have the major renovation by-law so any lot owner wanting to complete major renovations do not need to individually get one drafted.

                      They do still need to complete the renovation application, submit all plans and get the by-law approved at a General Meeting and then the works registered as part of special by-law 9 with LRS. This is to ensure the lot owner and any future lot owners are responsible to repair and maintain the works going forwarded rather then the owners corporation. “

                      People get flustered when you tell them this and it’s not surprising owners think it all too hard and cumbersome and do it on the quiet knowing the risk.

                      I would not risk doing it on the quiet on a second level or above unit as you have units below that could bare the brunt of a reno gone wrong.

                       

                      in reply to: Cracked tiles on internal common property wall #66791
                      david2708
                      Flatchatter

                        Would depend if they are the original tiles and not a renovation somewhere along the line.

                        in reply to: Forced bathroom renovation due to burst pipes above #64910
                        david2708
                        Flatchatter

                          I would of thought a built in cistern  in the CP wall would only fall to the OC for repair if it’s the original. If an owner replaced it at some stage, then the problem is his?

                          david2708
                          Flatchatter

                            If the infrastructure meets the code at time of construction, then it’s fine, but when it breaks down, you then run into problems. A bit like many old balustrades that don’t meet the height code of today. If part of it is damaged, you can’t just fix that section. You gotta replace the whole thing to meet current code.

                            Another pandora’s box is getting a WHS report. Insurance companies LOVE to go through those and demand fixes.

                            An issue with WHS  is they do a bit of one size fits all report. You have NO tactile indicators!

                            Well and good for a high traffic shopping centre and a huge apartment complex, but for a less than 10 lot apartment block?

                            I’m sure my block built in 1965 meets next to nothing of the current building code.

                            david2708
                            Flatchatter

                              I run a strata scheme of 12 units with approximately a quarter of consistent non payers. The owners happily collect their rents but feel they don’t need to stump up their contribution to the levies.

                              I have little sympathy for the elderly couple who have racked up such an enormous debt to the OC and seemed to think everyone else has to foot the bill for them.

                              Owners benefit from common property upgrades in both function and also the value of the property.

                              I aint going to cry  river for consistent non payers and whatever their sob story is.

                              Temporary issues with individual liquidity I understand, but you always have a cohort who never consistently pay and know how to game the system when regulations to pay up only can kick in after a certain time frame or amount owing.

                              in reply to: Why are my Strata Levies so high? #61554
                              david2708
                              Flatchatter

                                Whilst it may seem the use of local tradies would be cheaper, they may likely fail to meet the criteria of the Strata manager in terms if insurance, workers comp etc, and they therefore would take no responsibility for any failure in the work of the contractor you chose. You would have to follow up the deficiencies and not the Strata manager.

                                I do agree Strata work is a cash cow for the big companies and they charge like wounded bulls.

                                High levies, as people have said, could be a failure of a committee to build up sufficient reserves in the capital works fund.

                                Look at your building’s 10 year plan. That may clue you in the works down the road and you are building up reserves to meet that.

                                in reply to: Lowering strata levy #61557
                                david2708
                                Flatchatter

                                  You say you want them lowered.

                                  Based on what? You just don’t like them?

                                  There may be reasons why they are high. Have you looked at the budgets? Have you examined the Admin fund to  see where money is being spent? Have you looked at the capital works budget to see what was spent there?

                                  Have you looked at the 10 year plan for the building to see upcoming capital works which will need funds?

                                  As to strata roll, they are not always accurate in terms of email addresses etc. You may see an owners name but not always much after that.

                                Viewing 15 replies - 1 through 15 (of 55 total)