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"Your strata home or investment property is probably one of your greatest assets so you need to make sure you protect that asset by ensuring all maintenance and repairs are carried out when needed and that they have been correctly done.  When the time comes to sell, a property that looks rundown and is in a state of disrepair never commands as good a price as a well-looked-after property.  Also, this whole maintenance area can be a real trap for young players and, while most 'think' they are doing the right thing, they can be walking into a minefield......read on to understand why."

ONGOING STRATA MAINTENANCE and REPAIRS

• Real Quotes
• Major Works
• Improving your strata scheme
• The Benefit of Maintaining & Improving?
• Minor Works
• Just imagine this scenario for a moment....

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Real Quotes

Defects can develop at any time and, as a building ages, repairs are needed.  These repairs usually involve the obtaining of a number of quotes for the work that needs to be done.  But, as we all know, not all quotations are the same and can vary greatly.  From experience it would appear that the old saying "You get what you pay for" still rings very true.  So, beware of the obviously cheap quote!  It'll usually end up being a case of false economy in the long run - with perhaps a dose of frustration and dissatisfaction thrown in for good measure.

All job specifications should first be prepared by appropriately licenced and qualified professionals to ensure the problems are correctly diagnosed so the correct and the most economical method of repair will be used for each job.

If you happen to use a Strata managing agent to look after your scheme then, usually, most of the hard work has already been done for you.  A good strata manager has a list of pre-approved tradespeople that have been thoroughly checked for quality of workmanship, qualifications, licences and insurances.  This favoured list usually consists of those firms that have shown reliability, efficiency and professionalism in the work they do.  Yes, they may be a bit more expensive but at least you know the work will be done, on time, properly and safely - and there's also some recourse if you're not satisfied with the completed work.

Now, in direct contrast, if your scheme is self-managed you'll need to take a lot more care when selecting and using contractors to do work at your complex.  Why? - please read on...

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Major Works

Careful planning is necessary before commencing any project and expert advice is especially needed for major works, such as:

• roof replacement
• common property painting
• concrete spalling
• carpet replacement in the stairwells
• guttering replacement
• facade repairs
• window replacement
• archbar replacement
• landscape upgrading
• cracking to walls/subsidence
• uplifting driveways and concrete areas
• waterproofing and rising damp problems
• pest eradication
• lift upgrades
• pool resurfacing

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Improving your strata scheme

For older buildings, consideration should also be given to updating your scheme to improve its appearance and value by:

• rendering the building's façade
• renovating the foyer area
• upgrading the landscaping
• replacing the balcony and stairwell railings with a safer, more modern design

NOTE:  Works such as all those listed above are usually paid for with Sinking Fund monies.

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The Benefit of Maintaining & Improving?

With some advance planning, the right advice and correct budgeting considerable value can be added to a strata scheme by keeping it in pristine condition thereby being of direct benefit to each of the owners.  Not only will they have a more stylish building to live in but the value of all properties in the scheme will have kept pace with market values.

Remember - units in buildings in tip-top condition with well maintained, well landscaped areas command a much higher price than units in bland, unattractive, poorly maintained buildings with little or no landscaping.  They usually sell much faster too. Top

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Minor Works

Most would think minor works should be a simple thing but it's an area that can get many into more trouble than they think, especially if care is not taken.  It can be a real trap for the unwary.  Let me explain.......

As we all know, the cost of everything is constantly rising including the rates charged by those who would be contracted to do the minor repairs that tend to crop up from time-to-time at all schemes.  And so, as everyone is looking to save a dollar or two where possible, many Executive Committee members out there prefer to use the local handyman who advertises in the local paper promising 'cheap' rates or, worse still, use a 'friend-of-a-friend' who can drop by and fix the problem 'on the cheap' instead of the professional, fully qualified and insured tradesperson.  And even worse than that, some decide to use an owner in the complex who is keen to do some work around the complex for a few extra dollars.

While all this sounds terrific on the surface, and while I commend those EC members for showing initiative, such a decision is fraught with danger.  The problem stems from the fact that these sorts of non-professional tradespeople are usually either unlicenced or uninsured or BOTH....and this is the REAL danger.  Not to mention that you generally have no 'official' recourse via warranties or guarantees of any sort with unlicenced, uninsured, non-professionals.  And all this can lead to very serious consequences...

Just imagine this scenario for a moment....

While doing a minor repair at your building, the unlicenced, uninsured guy your Executive Committee chose has an accident and is severely injured.  A sharp lawyer gets in his ear and says, "you can make a small fortune out of this if we handle it correctly", so this person decides to sue your Owners Corporation because 'insufficient care was taken to protect him from harm'.

If he was properly insured in the first place everything would have been above board and, more than likely, a suitable arrangement would be made between the insurers (yours and his) with no real damage done but, because he wasn't insured, your scheme, and maybe even the Executive Committee members too, will take the full brunt of any action.

The fact he's also unlicenced (in this instance) may raise issues of 'illegal practices' on the part of the Owners Corporation depending on the nature of the minor repair.  If the job in question required a licenced person by law to do the work then the Owners Corporation may be liable for criminal prosecution.  Once the authorities become involved all sorts of flow on problems can occur - and that's the last thing anyone would want - especially all the other unaware owners in the scheme.

And, now that your insurance company may have to pay out a hefty compensation claim to the injured person, your Owners Corporation could discover that the insurance company may very well prejudice your scheme in the form of increased premiums or even policy rejection when it comes time for renewal.  All pretty serious stuff to save just a few dollars!

I'm sure you'll agree that, in this particular instance, the decision to use an unlicenced, uninsured person was not such a good idea......but this sort of thing happens ALL the time....and the RISKS are there and very, very real every time.

If all goes well, yes, you can save your scheme a few dollars but, if something DOES go wrong then it quickly becomes a case of very false economy.

A SERIOUS TIP:  Whether it's carrying out minor repairs, major works or improving your scheme, get the right advice FIRST from a qualified professional in the particular field, making doubly sure those you select ARE properly insured and licenced.

Even though it may cost a bit more initially the rewards, in the long run, far outweigh the risks.
Bottom-line : Don't take the risk - it's simply not worth it!

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Strata Title Terms and Jargon

If you need to know the meaning of one or more of the common terms mentioned above then have a look at the Strata Terms and Jargon Information page.

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