This article discusses how to ensure equity in common property improvements when upgrades benefit some lots more than others.
Question: If the strata company pays to upgrade balcony balustrades for upper-floor lots, should ground-floor owners receive an equivalent benefit?
In our building, there are 16 apartments. The 14 upper-floor apartments have balcony glass balustrades, but the two ground-floor apartments do not. There is a proposal, subject to owner approval, for the strata company to upgrade and modernise the balcony balustrades on the 14 upper-floor apartments. The new plain-glass design would remove the existing top rim, improve the building’s appearance, and provide better outlook and views for those apartments.
The quoted cost is about $18,000 per balcony, funded entirely by the strata company. In the interests of equity between all owners, should the ground-floor apartments receive a compensatory benefit, such as a modern glass sliding door or a cash equivalent to the cost of the new balustrade?
Answer: There is no reason to compensate the lower units for the cost of improvement of an asset they share ownership of.
Given that the strata company is carrying out the works, I will respond on the basis that the balustrades are common property.
Your strata company is an entity of its own, with a company being formed on registration of the strata plan. If you think of the unit entitlements each lot holds as shares in that company, it is easier to see that all owners have a share in the strata company. The strata company has a statutory obligation to maintain common property. A strata company can also improve common property.
Working on the assumption that there is no maintenance component of this project, the project would be considered an improvement to the common property.
Section 91(2) of the Strata Titles Act 1985 permits a strata company to improve the common property. Should the cost exceed $500 per lot, a special resolution would be required to approve the expenditure, except for sustainability infrastructure, which would be an ordinary resolution.
Provided the strata company has followed the correct approval process, they can carry out the improvement to common property.
To address your commentary surrounding compensation for the lower units, my opinion is that the works are to the common property, which all owners have shared ownership and responsibility of. Therefore, I do not believe there would be any reason to compensate the lower units for the cost of improvements for an asset they share ownership of.
Luke Downie
Realmark
E: ldownie@realmark.com.au
P: 08 9328 0999
This post appears in the February 2026 edition of The WA Strata Magazine.
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