We understand that organising an owners corporation manager is often an afterthought for owners, vendors and developers. it’s not something which is thought to add any value to a project, or have any significance during the handover and post-settlement phases.
At Impact Strata Management we endeavour to change that notion.
We tailor our services to the specific needs of owners, vendors, developers and project managers in the commercial and industrial space:
Impact Strata Management is committed to establishing partnerships with developers and committees to deliver outstanding results. We can provide consultation services from pre-construction up to building handover.
The responsibilities include:
Owners corporation rules are adopted for the control, management, use or enjoyment of common property and lots. These rules cover day-to-day issues such as parking, pets and noise.
An owners corporation may make rules under the Owners Corporation Act 2006. These rules would be particularly relevant to their properties, including common property. Such rules are adopted by passing a special resolution of members. These rules are then to be lodged with the Victorian Land Registry and recorded on the plan of subdivision, and they take effect from the date of registration.
If an owners corporation does not make its own rules, the model rules as outlined in the Owners Corporations Regulations 2018 applies.
Rules made under the Owners Corporation Act 2006 apply to:
Owners corporations can apply to the Victorian Civil and Administrative Tribunal (VCAT) to enforce rules and the tribunal can impose penalties for breaches of rules.
Owners corporations make decisions or resolutions when its members vote at a meeting, or by ballot. Votes are based on lots or lot entitlements, not by the number of individuals living in or owning a lot. Decisions are made by ordinary, special or general resolution.
An owners corporation is required to keep various records including the full name and address of each member, minutes of meetings, books of account, record of all assets and liabilities, and financial statements of all income and expenditure.
The plan of subdivision sets out the lot entitlement and lot liability of each owners corporation member and is expressed as a percentage or fraction.Lot entitlement is the proportionate share of ownership of the owners corporation assets and common property, for example, use of the drive-way. It also determines voting rights at owners corporation meetings.Lot liability is the proportion of the owners corporation expenses, for example insurance, which the lot owner is obliged to pay.
A levy is a contribution that all lot owners must pay (usually quarterly) calculated according to lot liability. It covers the administrative expenses of maintaining and managing the strata or community title scheme. Prescribed owners corporations may also charge a maintenance levy
Common property is that to which title is held by individual members in the common area. It is owned by members as tenants in common. It is stated on the plan of subdivision and may include garden areas, passages, walls, stairs, pathways, driveways, lifts, lift lobbies, foyers, fences and other facilities. The owners corporation is responsible for the common property. The Owners Corporations Act 2006 states that the owners corporation must, among other things, manage, administer, repair and maintain the common property.
Under the Owners Corporation Act 2006, the owners corporation must repair and maintain:
An owners corporation must have public liability insurance in connection with the common property and reinstatement and replacement insurance for all buildings on the common property. It is recommended that a valuation be obtained from a qualified valuer on a periodic basis to ensure that the full value of the buildings is insured thereby reducing the risk of members in the event of a substantial loss.
It is important to note that the owners corporation insurance does not cover the contents of owners’ units and members should ensure that they have appropriate contents cover in place, whether a resident or landlord of a tenanted property. Members should ensure that the policy in place for their property includes public liability cover.
The owners corporation manager carries out some or all of the functions, duties or powers of the owners corporation in administering and maintaining the owners corporation. These tasks include secretariat and administration, arranging insurance, organising maintenance works, maintaining financial records and bank accounts, advising on rules and legal matters.
The question often asked is whether to self-manage or to appoint a professional owners corporation manager. In answering this question, it is important to note that the effective operation of an owners corporation is largely determined by the willingness of its members to engage with, and assume responsibility for, the operations of the owners corporation. Three key considerations which should be taken into account are the level of investment in the property, the number of lots, and complexity of the services required. These items can make the self-management of properties extremely problematic and pose significant risks for owners who are not informed of complexities associated with management of their common properties. Other issues to be considered when deciding to self-manage or appoint a professional manager are:
The process and effective operation of an owners corporation is facilitated and enhanced when a professional manager is appointed. Quite often a professional manager is appointed to solve intractable problems and relationship breakdowns in previously self-managed properties. Professional owners corporation managers play a vital role in an increasingly complex environment, by ensuring owners corporations are compliant with their legal responsibilities, protect and maintain the owners’ assets efficiently and effectively, and plan for the future.
In Victoria, an Owners Corporation with 13 or more lots must elect a committee at each annual general meeting. Owners Corporations with fewer than 13 lots may elect a committee if they choose to, but it is not mandatory. If an Owners Corporation does not have a committee, the lot owners will either have to agree or vote for individual lot owners to carry out any decisions, or engage a professional Owners Corporation manager.
An owners corporation committee is comprised of elected lot owners or their proxies. can make decisions on all matters delegated to it by the owners corporation except on matters that the owners corporation has determined must be decided at a general meeting.
An owners corporation committee must elect a chairperson.
Chairperson:The chairperson’s role is to run meetings in a way that encourages decisions. The chairperson should allow fair and open discussion of matters and stick to the agenda, so that decisions can be made.
DutiesAn owners corporation must have a secretary. The secretary is responsible for tasks including managing correspondence and organising meetings. The secretary can also be chairperson.
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