Yearly Archives: 2013

Legislative Changes Enhance Swimming Pool Safety

The New South Wales State Government recently passed legislation regarding backyard swimming pools, which will affect strata schemes that currently have a pool onsite. In enacting the changes, the Government argued that safety around residential swimming pools is imperative given that drowning is a leading cause of accidental death in young children, especially those under the age of five who lack cognitive skills.

The Swimming Pools Amendment Bill 2012 made several changes to the Swimming Pools Act 1992. By October 29 2013, all pool owners, including Owners Corporations who manage common property pools, will be required to join a pool registry administered by the State Government. Additionally owners will be required to show a current swimming pool compliance certificate to be able to lease a property with a pool and there will also be mandatory inspections of pools by accredited certifiers. There may be a cost to pool owners associated with site inspections.

Property owners who fail to register their swimming pool may be subject to a maximum penalty of $2,200.
At Netstrata, we fully support any legislation that makes a strata scheme’s common property safer for all. Given that many strata schemes in Sydney have a swimming pool; it is only logical that we’d all want to make, what is a potentially hazardous addition to the strata property, as safe as possible. Therefore, while it is now law to comply with these tightened safety measures, we think they’re all also sensible proposals.

There are a number of other options Owners Corporations and pool users can take to minimise harm from pools. Pool users should never leave the gate open to the pool and the gate should be both self closing and self latching. Pool fences should be at least 1.2 metres high and the vertical gaps should be no more than 10 cm apart. Keep all furniture and garden beds a clear distance from the pool fence to eliminate the chance of a toddler using them to climb over the fence.

If you have any questions regarding swimming pool safety, please contact your Strata Manager at Netstrata.

When there is not a Lot in Common

When you buy into a strata building you are, in fact, purchasing a ‘lot.’ Think of your lot as your own, small component of the larger strata plan. Typically, a lot will comprise an apartment or commercial suite and, where applicable, parking spaces and/or an outdoor area of some description.

Everything outside your lot is Common property. From your external walls to the hallway outside your front door to the courtyard and driveway, the Common areas are those that all residents and occupants have equal access to. And when you think of strata services, they typically apply to the Common areas as opposed to individual lots.

In general, owners are solely responsible for the upkeep and maintenance of their own individual lots. In the case of new buildings – where building or appliance warranties are often concerned – strata management companies may deal with individual lot owners, but by and large owners are responsible for their own individual lots. When it comes to dealing with major strata management matters, your Owners Corporation will represent you.

The Owners Corporation is the body that owners are automatically admitted to upon purchasing a lot in a strata plan. Being an owner entitles you to a share in the Owners Corporation and, therefore, a say in everything from determining your preferred provider of strata management services to who gets to use the visitor parking.

The Owners Corporation – or Body Corporate as it is more commonly known – has five key areas of responsibility.

  1. Strata Plan Insurance
  2. Maintenance of the Building and Common property
  3. Financing the Strata Plan
  4. Maintenance of the Strata By-laws
  5. Record keeping

And, therefore, it is perfectly correct that when people think of strata management they tend to think of who it is that provides for the care of the Common areas. The strata manager appoints the cleaners responsible for maintaining your courtyards and hallways. And the strata manager is the one who arranges repairs to Common property. Importantly, the strata manager also arranges insurance for the building. However, owners should note that the strata insurance does not cover their individual lot and that home and contents insurance is highly recommended.

An established provider of strata services in Sydney, Wollongong and Newcastle, Netstrata has been managing strata plans for over 18 years.

How to choose a Strata Manager

When it comes to choosing a strata manager for your scheme, be it a new or existing building, we find that the decision typically comes down to a few key issues.

Price

Strata owners are like the rest of us; they do not like wasting money. And therefore, understandably, price is front of mind for Owners’ Corporations seeking strata management services in Sydney. But as with anything, you tend to get what you pay for. If your prospective strata manager’s pricing seems too good to be true, then it probably is.

As a reputed Sydney strata manager, Netstrata offers excellent value for money. Our highly skilled and professional strata managers are available when you need them and our pricing structure is completely transparent. At Netstrata, there are no hidden costs for incidentals.

Knowledge of legislation

Another factor often cited as a major influencer on decision makers is a strata manager’s knowledge of the relevant legislation governing strata schemes. As a strata management company with over 18 years experience in Sydney, Wollongong and Newcastle, we know the ins and outs of all the relevant legislation and are proud supporters of Strata Community Australia.

Capability and experience

But perhaps the biggest factor for many Owners’ Corporations is experience. Given the increase of medium density housing in Sydney, strata managers who have the relevant experience with high volume and  complex schemes are increasingly in demand. The days of simple 10 Unit walk up blocks are gone and with them, we hope, the often ineffectual strata managers of old.

Today, it is increasingly common for buildings and, therefore, schemes to house many more residents. It is also common for buildings to incorporate a mix of residential and commercial spaces. And then there are the pools, gyms and common areas that new buildings typically boast. These developments call for a truly professional strata management offering. And with approximately 800 schemes under management worth some $4.2 billion, Netstrata is the Sydney strata manager best equipped to handle your strata requirements.

At Netstrata, we are so confident that you will be satisfied with our strata management service that we offer No Lock In Contracts.

Is your Owners Corporation hounding you unfairly?

Australia boasts the highest incidence of pet ownership in the world. Pets may be found in over two thirds of Australian homes. And with one in five Australians living in a strata scheme of one form or another, the issue of pets and strata plans is not one that is going away any time soon.

Now, what rights you, as an owner or a tenant, have vis-à-vis your pet depends entirely on the strata plan in effect at your place of residence.

Strata managers have a few options when it comes to deciding what By-laws will govern a strata plan. They can either draw up their own or rely on the pre-existing Schedule 1 By-laws (for schemes registered prior to 1 July 1997) or the Model By-laws (for schemes registered on or after 1 July 1997.) It should be noted here that the Owners Corporation has the authority to amend the Schedule 1 and Model By-laws.

As far as pet ownership goes, in general the approval of the Owners Corporation cannot be unreasonably withheld. As for the particular By-laws, Schedule 1 is clear: A resident or tenant needs the prior written consent of the Owners Corporation. The Model By-laws are slightly more complicated and give strata managers three options for dealing with the issue of pet ownership. Approval for pet occupancy may be granted in a manner consistent with the provisions of the Schedule 1 By-laws; approval may be granted providing certain conditions are met, such as the resident’s undertaking to carry the pet across common areas, or the resident’s request may be denied.

If you intend to rent in a strata plan, you will typically require two separate approvals. The onus is on the renter to obtain approval from the leasing agent and the Owners Corporation prior to occupancy.

In the event that the Owners Corporation denies a reasonable request, residents have a few avenues in which to pursue resolution. The first port of call should be an informal discussion with a representative of the Owners Corporation. Failing that, a resident may seek to take the matter to mediation, adjudication or the Consumer, Trader and Tenancy Tribunal.

One thing that residents should bear in mind is that a strata manager is, in general, not in a position to affect outcomes in these areas. Although strata management does involve deciding the By-laws that will apply to a particular strata plan, the authority to amend those By-laws is vested in the Owners Corporation.

For more information regarding Pets and Strata Management please refer to this document produced by the Law Society of New South Wales.

Strata scheme up in smoke

Inner-west smokers take note – as of April 2011, the body corporate of an Ashfield block of units in Sydney implemented a no-smoking law for anyone wanting to light up inside their apartment or on their balcony.

In an interview with the Sydney Morning Herald, the chairman said, “We asked our managers if we could have a by-law to ban all smoking in units as well as on common property and two weeks later they came back with a draft of a by-law to make the building a smoke-free zone in its entirety.”

But the body corporate now faces rebuttal. Those who smoke are in the clutches of addiction – one they should have the right to carry out in the comfort of their own homes. But what about the non-smokers? Smoke tends to waft throughout buildings, potentially affecting other occupants’ health.

So the moral battle begins. Building management is well aware that there aren’t any mandatory laws that prevent residents from sparking up in their own unit. Building management is also aware that there are existing laws that prohibit smoking on common property.

According to Section 6 of The Smoke-Free Environment Act 2000, a “smoke-free area means any enclosed public place.” But at this given point in time, cigarettes are legal and there aren’t any government laws stopping smoking in one’s home. So, the issue is presented to the body corporate: What happens to the non-smokers who would rather refrain from passive smoking?

Strata management company, Netstrata, has a few words of advice. If your apartment block is permeated by cigarette fumes and affects the enjoyment of residents, you can take the following steps to ameliorate the situation.

Firstly, you should approach your smoking neighbour about the matter. You don’t need to be a part of building management to flag the issue with them. Just remember to speak calmly and rationally. More often than not, your neighbour will be cooperative to resolve the issue.

Perhaps you’re not at ease with the idea of approaching the smoker, or if your neighbour isn’t flexible – what then? Your next step is to raise the issue with the building owner’s corporation. Hopefully a solution can be reached collectively.

If you would like further advice regarding smoking in your building, we encourage you to get the advice from the strata management experts, Netstrata.

NSW strata management flooded by weather

Prime Minister Julia Gillard has recently announced that the Federal Government will invest $100 million over the next two years into flood mitigation projects. Given the recent floodings, this investment is aimed at reducing flood risk and the subsequent strata managers building insurance premium renewals.

By targeting the flood and natural disaster mitigation measures, The National Insurance Affordability Initiative will finance $50 million per annum for the next two years in hopes of establishing the National Insurance Affordability Council.

The Council will run the national coordination of flood risk management, assisting strata management services. The Council will also make suggestions to the government regarding floods mitigation projects, and will undertake other actions directed at reducing building management insurance premiums in the event of natural disasters.

Beyond reducing private insurance premiums, the government will have the potential to save expenditure on building management across all levels of NSW strata management.

Since 2009, more than $6 billion has been accounted for due to natural disaster recovery, a recent press release stated. “Rather than have taxpayers cross-subsidise insurance premiums for those in areas of high risk, this initiative will identify and supplement the funding of mitigation works that will have a real impact in terms of lowering risk and achieving sustainable reduction of insurance premiums in areas exposed to high risk,” the government adds.

CEO of the Insurance Council of Australia (ICA), Rob Whelan, labeled the move as a noteworthy step towards financially covering the sustainability of the various flood-prone communities that NSW strata management have been working toward restoring.

The investment “will ensure that at-risk Australian communities will be better protected in the future from the devastating effects of floods,” said Whelan.

The floods experienced in NSW and Queensland due to a knock-on effect from ex-tropical cyclone Oswald has resulted in over $661 million in insurance losses. Whelan has noted that over the last ten years, floods have caused around $4.5 billion in insured losses across the country.

The ICA has encouraged the Australian Government Actuary to take on additional studies concerning strata management services pricing across Australia. The aim of this is to deliver a benchmark that will accurately inform policyholders how insurance premiums are directly related to risk.

Netstrata provides high quality strata services to their client schemes across NSW. All classes of properties – from small home unit schemes to high-rise residential and commercial buildings – receive a tailored approach to ensure they’re receiving the best option possible.