NSW lot owners are wondering about the level of communication they could expect from their Strata Managers.
Jump directly to the QUESTION you are after:
- QUESTION: Can Strata companies charge owners who request Strata ByLaws to give to a tenant?
- QUESTION: Can the Strata Committee insist that the Strata Manager seeks approval before actioning any type of work on their behalf?
- ARTICLE: Commissions and Training Services | What does my Strata Manager have to disclose?
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Question: Can Strata companies charge owners who request Strata ByLaws to give to a tenant?
Answer: No I don’t believe so, but it would depend on the terms of the agency agreement that the owners corporation has with the owners corporation and the by-laws registered with the scheme.
Andrew Terrell
Bright & Duggan
E: [email protected]
This post appears in Strata News #401.
Question: Can the Strata Committee insist that the Strata Manager seeks approval before actioning any type of work on their behalf?
Can the Strata Committee insist that the Strata Manager seeks approval before actioning any type of work on their behalf?
SITUATION: Unit Owner had engaged a plumber to fix an internal water leakage in a rental unit. The leak returned & Strata didn’t liaise with the owner & sent another plumber to access the problem resulting in a charge to the Owners. The Strata Committee asked the lot owner to pay this bill.
Understandably the Owner is unhappy that they were not consulted as they could have sent the original plumber to fix the problem. This is a new Strata Manager & the Strata Committee instructed them at the first AGM to contact the Committee before arranging any repairs or inspections for their approval.
We an arrangement in place with the previous Strata Management Company because we had been overcharged for unnecessary work that had been carried out without our knowledge.
Answer: If the arrangement is not approved by the Owners Corporation, the Strata Manager may not contact the building as they are not legally required to.
Regarding the appointment of a strata manager, some buildings do ask that the Strata Manager contacts the Strata Committee or a member of the Strata Committee for approval for works before proceeding. This arrangement should be documented in the Strata Managers agency agreement which must be approved at a General meeting. If the arrangement is not approved by the Owners Corporation, the Strata Manager may not contact the building as they are not legally required to.
Regarding charging of an invoice to an owner, this is not generally something that is allowed unless there is a specific by-law for the scheme that allows for cost recovery. I’m not sure why the Strata Manager would pass on the cost of a work order to the owner in this instance. It seems to me that the Strata Manager must have actioned a lot owner repair which they shouldn’t have organised anyway.
The owner has 2 options:
- Pay the invoice to keep the peace. I would then pass the invoice onto the old plumber to pay as it was their original repair that caused the problem. If they original plumber doesn’t pay, you could follow this up with the Master Plumbers Association for decision (assuming that they are member of the Master Plumbers).
- Dispute the invoice with strata and state that it is unlawful to pass on an invoice to the lot owner without the lot owners approval. If this isn’t resolved after this dispute, you could lodge a complaint to NSW fair trading to have this resolved.
Rod Smith
The Strata Collective
T: 02 9879 3547
E: [email protected]tratacollective.com.au
ARTICLE: Commissions and Training Services | What does my Strata Manager have to disclose?
Section 60 of the Strata Schemes Management Act 2015 (NSW) places a responsibility on strata managing agents of strata schemes to report the following matters at annual general meetings:
- Whether any third-party commissions or training services have been provided to or paid for the agent in connection with exercising the functions of the scheme for the previous 12 months, and the details of any such transaction.
- The estimated amount or value of any such commissions or training services that the agent believes are likely to be provided to or paid for the agent in the following 12 months.
The disclosure of such information must be recorded in the meeting minutes.
‘Training services’ is defined within the Act to include a training course or service (including attendance at industry events such as conferences).
Under s 57 of the Act it will be an offence for an agent to receive commissions or training services that are not of a kind permitted by the agent’s terms of appointment or approved by the owners corporation.
Additional disclosure requirements of strata managing agents, include:
As soon as practicable after becoming aware that commissions or training services provided to or paid for the agent differ from any estimate, the strata managing agent must disclose the variation to the strata committee and provide an explanation.
Although, it should be noted that these requirements do not apply to training services or remuneration provided directly to a strata managing agent by their employer agency.
Allison Benson with assistance of Bonnie Elliott, Paralegal.
Kerin Benson Lawyers
P: 02 4032 7990
E: [email protected]
This post appears in Strata News #278.
Have a question about Strata Manager Communication or something to add to the article? Leave a comment below.
Read next:
- NSW: Q&A Strata Manager Insurance Commissions
- NSW: Q&A Suspect our Strata Manager of Misappropriating Funds
Please note: this is general information and does not constitute legal advice. If your scheme us undertaking strata renewal we recommend you obtain legal and financial advice specific to your circumstances.
This article has been republished with permission from the author and first appeared on the Thoughts From a Strata lawyer website.
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I am one of the strata committee members of an 8 townhouse complex. I would like to know (in simple talk) what the job description of a strata manager is. In our complex, 4 owners live there and the other 4 are rented. Is the strata manager meant to inform the committee about maintenance or outside companies (builders) coming? We also wait ages for any replies from emails and phone. One email that was important went missing. Any basic information would be great. Thanks
Hi Confused
We recently published an article detailing the expectations: NSW: What to Expect from Your Strata Manager
You may also find this article interesting: Why are Strata Managers so difficult to get along with?
All the best
My strata manager refuses to respond to email requests and my phone calls. I have requested to understand how the Executive Committee approve expenditure for Unit owners and common property expenditure as I have expressed concern about an inconsistent approval process, favouring the Executive Committee. Her refusal to respond to emails and voicemails is extremely unprofessional. What action can I take to ensure she meets her obligations of a Strata Manager? A Google search on the Strata Company has highlighted other red flags and inappropriate conduct by her line manager for other properties he has managed.
In total 4 units strata building
One owner own 2 units
How many votes he can use in AGM?
In regard to the question about the strata manager possibly charging for by laws. If the by laws are not publicly available (I mean to the tenants and residents) then how can tenants residents know what by laws apply. If the strata manager charges to supply these, then the OC should pay the cost.
There was a case in NSW about 3 years ago where a motorcycle rider was booked for not displaying the correct sticker on his helmet. The case was dismissed because the judge found that despite the laws being in operation for a number of years, if the legislation is not publicly available then the person cannot be held to account for breaking the law.
Additionally the residential tenancies agreement states that the by laws must be attached to the lease. How is the landlord supposed to obtain the bylaws if not to ask the strata manager (or get the certificate of title from LPI)
Hi Robert (but mostly others)
There’s possibly another side to charging for supply of strata documents. . . . consider. . .
> Many strata management companies provide an on-line portal so owners have access to documents for their scheme, as well as access for personal financial status, and more.
> When an Owner purchases a strata lot they must be provided with all the documents (strata plan, by-laws, insurance certificate, last minutes etc) relevant to the scheme. Owners are invited to the Annual GM and issued with notice of meeting and minutes following the meeting.
Q: Who engages the property manager and signs the management authority for that agent to lease the property?
A: the owner… that owner has all the information needed to provide to the property manager which, in turn means the property manager has access to all the information needed to provide to a tenant.
Complaints about strata managers abound – they don’t respond, charge too much, don’t follow-up, are rude, don’t listen, don’t care ….
Well, for the majority of managers who don’t have full-on assistants (and some who do), there’s probably insufficient hours in a day (let alone in the working day) to meet the demands from just 1 person from every strata under management every day and supply all the requests for information received from others. Strata managers have a challenging job – answering and issuing correspondence, settlement certificates, managing emergencies, contractors, meetings, budgets, invoices, overdue accounts, levy arrears, mail-outs, let alone the landline and the mobile, the walk-ins, new business, staff meetings, coffee or lunch break (what’s that?)
No real surprise there’s a need to have people pay for a service that takes up someone else’s time, particularly when it’s probably already held or can be easily accessed on-line.
As a council member for several strata companies, I appreciate our strata managers and our property managers. When downloading the financial reports we like to check the portal is working and our minutes are there and it does has the general information available for owners to access. It took me a couple of months to feel comfortable but has been worth my learning how to use it and the strata manager setting it up.
So, give the strata manager a break from time to time – find your copy of the documentation, scan it and electronically file it where you need it – and if you can’t be bothered to retrieve it yourself, then be willing to pay for someone else to do it for you!
Cheers
I am a committee member of a small block of 8 units
We are looking at changing a Strata management company upon expiry of the current agreement
Is it possible for you to provide a list of the Strata companies that may be interested
Regards and thank you