Covid 19 – Strata and Building Management Perspective

We have now entered an unprecedented period for the 21st century with the onset of Covid 19 virus and the measures which need to be taken to control the spread of it.

Businesses across Australia and the world are all affected in one way or another – there’s very few that will be able to thrive in the circumstances due to the effect on our workplaces, clients, and staff.

The response in Australia is increasingly drastic and we need to adequately prepare for a difficult period over the next few months as services and facilities are shutdown or become increasingly stressed. We are blessed with one of the worlds leading health systems, however, we need to act with caution and be ready to give our support to the most vulnerable within our society.

Bright & Duggan and Cambridge Management Services have introduced a policy of having all frontline strata management staff work from home and ceasing face to face meetings – I applaud our Executive Management Team in reaching this decision as quickly as it did. The update is available on the front page of our website – https://www.bright-duggan.com.au/ . We have different policies for Building managers and other staff within the business – these are being continually updated.

Strata and building management business are very much affected by the fact that we have workforces that have a lot of external meetings, have a number of visitors to our offices, that we provide a variety of onsite services at buildings and have large numbers of office-bound administration staff. That said, we are able to offer a great number of our services remotely.

Some strata and facility businesses have the ability to enable their workforces to work from home (which wholly depends on the staff member having the technology to do so); it’s very difficult to offer building management services offsite when the contract requires onsite services.

We manage people’s homes (and in some cases workplaces, where we manage commercial schemes) and thus have very serious obligations to the occupants to show leadership during this time and do whatever we can to assist authorities in mitigating risks.

What should we all do as soon as possible:

  • Give staff the ability to work from home where possible and ensure that we are aware of the workplace that staff are working from – employers still have work health safety obligations where their staff work from home;
  • Support your staff with whatever circumstances are put on them (sickness, schools/childcare services ceasing for a period);
  • Cease face to face meetings and adopt alternate means of meetings provided for under legislation – this may include meeting via proxies, phone/video conferencing, online or paper voting papers, etc;
  • Take practical steps at your buildings to reduce the risk of infection – additional cleaning, signage, etc.

Some of the potential issues we need to overcome

  • Continuing compliance with strata legislation which can become difficult without being able to conduct certain meetings, arrange onsite inspections, etc;
  • Annual inspections – particularly annual fire safety statements;
  • Defect timelines and the potential inability to do defect inspections/commence proceedings;
  • Contractor attendance – what happens if electricians, plumbers, etc won’t attend site?;
  • Waste management (we presume that council and private collections will continue as normal – if they didn’t it would be bedlam) – we may have to deal with much-increased levels of waste in the event that buildings have all occupants at home for long periods;
  • Residents needing help and assistance throughout any period of enforced isolation;
  • Conflicting and complex legal obligations;
  • Owners/occupants coming under financial stress – non-payment of levies; and
  • Continuing to facilitate strata searches, collection of keys, etc.

One of the great opportunities we have here is to change the way we operate our businesses (with a move to electronic meetings) and provide help and support to people that need it most.

It’s not business as usual but we need to make sure this is the best business we can do.

Activated communities and placemaking

The rooftop at GWH Aero Apartments all decked out for a birthday party.

When we are involved from the early stages of a development (planning phases into registration/settlement and occupation), we have a role and responsibility in helping that community find its feet and activating the space that we manage. This is somewhat the case when we have the strata management of that community (i.e. a role largely offsite and administration based), versus when we are the building/facility manager – a role which is a daily/weekly in-person interface with the owners.

The view of Broadmeadow Racecourse from the rooftop at GWH Centrale Apartments Broadmeadow.

Modern design principles for apartments and community schemes (at least in Australia) give drive to the creation of a community and giving a building identity. This may include features (e.g. vertical garden, civic art), exclusive common areas (rooftop entertainment areas, gardens), naming the building or facilities (gyms, pools, treatment rooms, BBQ areas, concierge, valet, etc.) and nearby or inhouse retail offerings. Activated communities are safer, more secure and more enjoyable to reside in.

‘nook’ letterboxes – the colour coded theme continues throughout the building and helps make it a unique boutique development for the area.

Unless all of the above is well-considered, facilities may end up poorly utilised and not add value to the community. On the flip-side, beautiful common areas can be an extension of lot living space, allowing room for entertainment, recreation and community activities. These spaces end up being the ‘jewel’ in the crown of a specific development.

Playground and BBQ area with a view at Thirdis beautiful ‘Westend’ development, proudly managed by Cambridge Management Services

We have a wealth of examples of these ‘activated communities’ within our portfolio and in time, we will have great data as to how this drives improved sales values, rental yields and resident happiness.

Views from the Aero rooftop – always changing courtesy of the working harbour

Regardless of facilities, we think that all communities have the ability to take advantage of the density and the ‘just add water’ community that this provides.

Resort facilities at Abian Brisbane by Sunland – we are the Building Manager and concierge at this stunning development
Multi-purpose common room at Pier on Waterfront by Mirvac

We are about to settle on some new developments in the Newcastle region and as part of this, are planning the events we will be undertaking with the residents. In addition to this, we will be suggesting a program of activities to the strata committee that they should consider throughout the year.

These are some of the things we are thinking about doing – in Newcastle we are blessed with generous shared spaces at buildings that lend themselves to these types of activity):

  • Street parties with surrounding buildings – food vans, music, etc.
  • BBQs (doesn’t get easier or simpler)
  • Gardening/plants in smaller spaces and common areas with a horticulturalist
  • Cooking demonstrations (just need to get Harris Farm to sponsor this one!)
  • Fitness/yoga/pilates classes
  • Smart home technology class (HVAC, lighting, etc)
  • Caring for animals in smaller spaces
  • Wine tasting with a local winemaker
  • P0p-up cinema
  • Markets
  • Recycling and waste class
The tennis court and playground (pool in the background) at Eagle Reach Highland Park in the Hunter Valley – amazing resort facilities.

Here are some great articles I have read on the topic:

https://www.domain.com.au/news/a-place-to-call-home-placemaking-is-all-the-rage-in-apartment-developments-20160721-gqalb4/

https://urbis.com.au/insights-news/global-trends-in-mixed-use-development-the-new-paradigm-in-urban-placemaking-2/

The Initial Period

This is a guide I recently produced for distribution to developers as to who does what during the period post registration until 1/3 of lots are transferred.

Initial period

Section 4 of the Strata Schemes Management Act 2015 provides the following definition:

“Initial period” of an owners corporation of a strata scheme means the period:

(a) commencing on the day the owners corporation is constituted, and

(b) ending on the day there are owners of lots in the strata scheme (other than the original owner) the sum of whose unit entitlements is at least one-third of the aggregate unit entitlement.

Restrictions during the initial period

Section 26 of the Strata Schemes Management Act 2015 outlines various actions which are not permitted during the initial period. The actions relevant to NSW LRS include but may not be limited to the following:

  • Strata plan of subdivision which includes common property or creates common property.
  • Conversion of a lot to common property.
  • Transfer or lease of part of the common property.
  • Creation of an easement burdening common property.
  • Release of an easement benefiting common property.
  • Dedicating part of common property as a public road, public reserve or drainage reserve.
  • Change of by-laws. Section 140 Strata Schemes Management Act 2015 places restrictions on the making, amendment or repeal of by-laws during the initial period.

If a document is lodged at NSW LRS which intends to perform one of the above actions it must be accompanied by a certificate from the owners corporation in Approved Form 10 (PDF 7.9 KB) unless the common property title contains a note in the second schedule that a certificate has been lodged previously.

Note – the developer can stay in an undertaking for any period, however we note that this is generally not beneficial if they have sold more than 25% of lots and maintenance has properly commenced. We note also that once 1/3 of lots are disposed of the First AGM must be called and at that meeting, levies are considered.

Item Developer Responsibilities   Strata Manager Responsibilities
Access Devices for owners Supply swipes/keys/garage remotes. Confirm details for original contractors Arrange process for additional devices to be obtained
Access Devices for contractors / OC Supply all relevant service keys and access Arrange collection and handover
Key box Help designate an appropriate area Arrange installation and placing of keys
Cleaning / Gardening (soft services) Meet costs until levies are struck Arrange quotes/start dates and administer invoicing in relation to levy start dates
Common utilities – water /gas/electricity / fire panel/lift line Meet costs until levies are struck Arrange handover/change of address for service of invoices to owners corporation c/- strata manager and arrange billing to developer or payment as required
Application by owners Developer Take and review application (e.g. pets) – provide relevant application forms to owner. Ensure items can be considered during the initial period
Insurance Pay for insurance policy (refunded by purchasers on settlement) Arrange quotes via broker prior to registration place insurance as directed managed any claims as required
S184 certificates Attend IGM. Appoint OC representative for the time until FAGM. Arrange payment (otherwise ordered as required) Provide certificates within 48-72 hours of receiving all required docs (COC, IGM mins, by-laws, SP, CT, solicitor details)
General Correspondence   Managed by the strata manager
Defect Process and Rectification (internal to a lot) Convey defect process to owners and ensure defects rectified in a timely manner. Attend to any urgent defects immediately (habitability/consequential damage issues) Strata manager can have a hand in reviewing to ensure whether a defect and then providing to builder/developer – assist in drafting defect process for owners (if required)Ensure defect process is notified to others aside from owners
Defects – external common property As above Review any issues as reported. Arrange walkthrough and recording of any common area issues
Waste management/bins Provide relevant plan from DA, arrange a meeting with the council, order bins Attend council meeting, ensure bins onsite in time for resident moves
By-law management (e.g. parking) n/a Attend to any by-law breaches as reported
Moving plan Review and take advice as to suitable moving plan Administrate moving bookings as required.
Welcome Pack – owners Draft welcome pack for owners, including all relevant contact details, connection details, defect management, etc.) Review welcome pack issued by the developer
Welcome pack – residents   Draft resident specific welcome pack if required
Metering (electricity/gas) and NBN identifiers Advise strata manager of all relevant metering details. Assist in ensuring that metering details are picked up by authorities Maintain a list of meters and NBN IDs for occupier assistance as required
Handover – documents, plans, IMS, schedule of finishes Ensure any necessary documentation made available to strata manager ASAP (e.g. subcontractors for emergencies). Hand over all relevant material prior to First AGM Give notice of requirements. Administrate handover/checklist – declares received documents at FAGM