This article discusses small strata window replacement cost split and how costs are shared based on ownership and unit entitlements.
Question: We need to replace the windows in our self managed complex of 4 units. Are the costs split evenly or is it a pay-per-window arrangement, with additional costs required for units upstairs?
We are a self managed complex of 4 units with 2 units up and 2 units down.
Our windows are to be replaced. How do we divide the costs for this work? Is it a 4-way even split between the 4 unit owners or is it a pay-per-window arrangement, with additional costs required for the upstairs units?
Answer: The costs should be included in the budget for the Strata Scheme where owners would then contribute towards the budget in accordance to their unit entitlements.
Without having seen the strata plan and the bylaws I am not able to give a definite answer.
However, assuming that this is not a single tier strata, and boundaries are the inner surfaces of the walls (cubic air space), any expenditure towards the window replacement (if in fact the windows are common property that is), would be included in the budget for the Strata Scheme where owners would then contribute towards the budget in accordance to their unit entitlements.
If they do not have a budget (which they should have as per Act – unless there is a bylaw which exempts the strata scheme from having an Admin Fund), then the cost would be still split according to the unit entitlements of the lots.
If the windows are in ownership (boundaries to the external faces of the building), each owner would need to pay the window contractor the amount equivalent of the windows being replaced in their unit as the Strata Company has no authority to raise funds towards private property. An arrangement that each owner pays the cost per window for their unit can also be done if the windows are common property; in both scenarios though, I am of the opinion, that all owners must agree to this arrangement.
This advice does not constitute legal advice and we recommend that the owner obtains their own legal advice to suit the circumstances.
This post appears in Strata News #584.
Marietta Metzger magixstrata E: marietta@magixstrata.com.au P: 08 6559 7498