Question: I understand the new WA Reform Act will provide an easier path if you have separate multiple strata bodies within a mixed use building. Is it feasible and easier under the new Act to separate these interests?
I understand the new WA Reform Act will provide an easy path if you have separate multiple strata bodies within a mixed use building. Where we have a number of commercial offices and a number of residential lots is it feasible and easier under the new Act to separate these two interests?
How do we deal with the common property? Currently, our common property is being funded in line with entitlement units which is entirely unfair due to the large amount of commercial traffic or usage compared to the very minimal traffic usage of the residentials. Can this be re-calculated on a fairer user pay system under the new Act?
Answer: There are many strata schemes that have commercial, residential, retail within one building and each different group of use areas will have particular bylaws drafted for them that cater for specific expenses.
I believe some of those things could have been dealt with under the old act as well. My interpretation of that, not that I’m giving legal advice, but if there are different operating groups within the one building whether it be commercial, retail, residential, this can be dealt with by split budgets, which is not an uncommon thing.
There are many strata schemes that have commercial, residential, retail within one building and each different group of use areas will have particular bylaws drafted for them that cater for specific expenses that are directly attributed to, say, removal of food waste scraps, the office cleaning, foyers removal of rubbish particularly to commercial premises, etc.
Split budgets and split or segregated areas within the management statement or a customised set of bylaws for that particular strata scheme can be dealt with by apportioning the costs attributed to different cost centres by some other means other than by the unit entitlement values.
In some instances a group within a cost centre may have a particular cost attributed to that cost centre split equally or as per the unit entitlements for each of those units that are within that cost centre, or, a contribution is made by that cost centre to contribute to the strata company in general for a particular service, etc that everybody uses or services. This is a general response, as I haven’t seen the bylaws or the condition of the building.
This post appears in Strata News #455.
Shane White Strata Title Consult E: shane.white@stratatitleconsult.com.au