Question: A lot owner in my Mum’s small unit block self manages the scheme. He collects levies, but isn’t doing the best job prioritising maintenance or paperwork. How do we get things back on track?
My Mum owns a lot in a 7 unit block of villas. It is self managed by one of the owners. He collects the strata fees and isn’t doing the best job prioritising maintenance or paperwork.
He organised the eaves to get painted but only half of Mum’s and other lot’s property was painted 12 months ago. Recently, he allowed another committee member to get a new fence and strata contributed half of the cost.
Can my mother demand he finishes painting her villa and withhold her fees until this work has been completed?
Answer: It might be time to start getting affairs at your mum’s building in order. That might mean getting professional help.
First up, I empathise with the situation you and your mum are in. While it is great when strata schemes are able to manage themselves, this is an example of what can happen when it goes wrong and the regular checks and balances aren’t happening.
One way of answering your question is by saying, well, your mum can do what she wants, given everyone else is seemingly doing that as well!
I don’t think that’s helpful or useful though. While I know you’re focussed on this particular issue, you need to start thinking long-term. If this happens now, chances are it will repeat itself – maybe in a slightly different form – in the future. It might be time to start getting affairs at your mum’s building in order. That might mean getting professional help, such as from a strata manager, or starting off by getting some legal advice. As a minimum, your mum might want to start with a discussion with the other owners. That discussion might be focused on your mum asking to see the paperwork to get a picture on the state of fees and any plans for maintenance.
This might sound like a bit of effort, and it is, frankly. Then again, think about the flipside: this is probably your mum’s biggest investment and it needs to be protected. At the moment, it doesn’t look like that is happening. So some effort will be worth it.
Chris Irons
Strata Solve
E: chris@stratasolve.com.au
P: 0419 805 898
This post appears in Strata News #562.
We Self manged in our 8 units complex previously was really well managed, allowed older residents good quality of life, best practice, no stress. We were moved to a strata company, without any consultations with owners. Now Strata does not include all the owners in yearly AGM they implement plans and increase fees without consultations of owners, they provide no budgets about works. Presently they have gone ahead with 10 year plan and paid for this plan, without consultation with the owners. Strata Fees have doubled plus, nothing is been done, we fix all out own units, because they refuse to fix in-between plumbing, fix our own leaking roofs, owners fixed water damaged ceilings because they refuse to fix anything. We were self managed very well , all gardens looked amazing, now everything is in disrepair. With the 10 year plan, most owners will be bankrupt at this speed and less valued units. We as owners did great together, now some of us have no attended AGM in many years because of screaming in meetings, they are not sending any invites or pre-meeting agendas or minutes.
Hi Kingie
I believe you placed a similar comment on Chris Irons’ recording of this webinar:
NAT: Self Managed Strata – How it works… and how it doesn’t
You can access Chris’ response to your question in the comment section of the video.
What does that mean? My Mums place is self managed she pays her fees and expects the common gardens to be maintained, eaves to be painted, security gates to be operational. Self management doesn’t mean an 88 year does the common gardens outside her property or paint does it?
No, the eaves, etc should be painted and if the by-laws relating to your mum’s particular strata scheme class her garden as common property, there should be some arrangement in place for that. It may be that a gardener is employed and paid (from the levies) by the body corporate to do all the gardens or perhaps there is an agreement in place where individual owners do their own garden. You would have to ask someone on the council.
However, the person who is responsible for collecting levies and making sure all the bills are paid on time and accounts are in order may not be the person who is solely responsible for organising all of that. They may only be the secretary/treasurer (not a strata manager). The best thing you and your mum could do is to familiarise yourself with the by-laws that apply to your particular strata scheme, attend meetings and find out who the Council of Owners are. This is a group of owners, voted in at the AGM, who are able to make decisions on behalf of the other owners. They should also be able to assist in following up on matters pertaining to common property. In a self-managed strata it is not just the responsibility of the person who does the paperwork. It is supposed to be a team effort. No decision can be made by just one person.
If you go down the path of engaging a strata management company, it will cost a lot more and there will still be the need for a council of owners who make final decisions. As outlined above, there are pros and cons, but in my experience, if you don’t have an effective and functioning council of owners, you will continue to have the problems you have mentioned, either way.
Regarding self-managed strata. It is imperative that there is a supportive and knowledgeable Council of Owners. I, myself am the secretary/treasurer in the strata where I live (8 villas). Levies and paperwork in themselves are a lot of work, which I do voluntarily. Unfortunately, none of the other owners seem to think they have any responsibility towards the upkeep of their property on a whole or individually. They think that is my job alone. They also have no idea about strata title or strata bylaws. We have a council of owners who think they don’t have to do anything. Should we employ a strata manager, nothing would change. They don’t realise that the council of owners have the first and last say on what happens within their strata. They all seem to think they live in some kind of resort, where everything is done for them.
Strata managers cost thousands of dollars each year. Their main responsibility is the financial side of things and arranging the AGM. Anything outside of that costs extra and can only be carried out at the request of the owners. Yes, they will manage maintenance, etc, under instruction from the council of owners, usually at additional cost.
I guess, my gripe is that people buy strata titled property with no idea what strata living entails. They have never picked up a copy of the bylaws, let alone read any of them and they get confused with what their responsibilities are within a self-managed strata as opposed to a professionally managed strata. Strata managers don’t do the thinking on your behalf.
People need to realise that their property is their home and their responsibility, just the same as if they bought a free standing property on green title. Buying strata property does not mean someone else looks after everything for you and you can do whatever you want!