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

2.5 hours from Newcastle…

Whilst there’s a wealth of things to do in Newcastle (see my favourite local guide – HUNTERhunter) – it’s also what’s within close reach of Newcastle that makes it so appealing.

For somewhere to be within 2.5 hours is (for me, anyway), the furthest you would want to travel both ways in a day and also the ideal amount of time for a weekend away.

I have sought to showcase some of the best places you can get to driving and flying out of the Hunter region (all of which we have visited in the last year of living here). That’s not to say that you need to leave (particularly during summer), however, everyone enjoys the occasional change of scenery.

Driving

Hunter Valley – Excellent wine country, within 40 minutes of the Newcastle CBD. Great food, accommodation, and leisure options.

Broke – whilst part of the Hunter Valley, Broke is its own destination and nearly 1 hour and 20 minutes away. Stunning properties, boutique wineries and just that little bit less touristy than the Hunter – feels somewhat undiscovered. Check out the A Little Bit of Italy in Broke festival.

Port Stephens – stunning beaches, great accommodation options, improving food and bar scene and recreation options galore.

Port Macquarie – one of my favourite places to visit. Picturesque, uncrowded and becoming that little bit ‘cooler’ with new bar, dining, brewery, coffee options coming to town. It’s very rundown in places but I can see a big revitalisation coming. Make sure to visit Flynn’s Beach, Cassegrain Wines and Whalebone Wharf Restaurant – stunning!

Stunning Flynns Beach

Sydney – Loud, busy, expensive and awesome.

Central Coast – heaps to do, lots of hidden gems. Check out Gosford with its new highrises like Bonython Tower and the stunning Boathouse Patonga. Try an amazing coastal or inland bushwalk.

Lake Macquarie – geez Lake Macquarie is huge. Get on a boat and check it out. There are some amazing and very much unknown pockets and lots of up and coming areas. Go check out Trinity Point and dine at 8 at Trinity Point.

8 at Trinity Point

Flying

Newcastle airport destinations and transfers

Flying out of Newcastle is dead-easy and generally cheap. Newcastle airport is one of the fastest-growing airports in Australia – it welcomes over 1.2m passengers each year.

Brisbane (1 hour 10 mins) – short jump away, awesome place for a week or a weekend – just not in the height of summer in 99% humidity. Stay close to the beach in Newcastle

Melbourne (1 hour 40 mins)- I needn’t say anything about Melbourne – it’s very good at blowing it’s own horn.

Gold Coast (1 hour 5 mins) – not for me, but people seem to love it (I’ll be forced to change my mind once I have older children and they want to go to theme parks…) – only a quick jump away.

Canberra (1 hour 10 mins) – apparently its cool these days? Keen to potentially try this flight for the ski season.

Sydney (45 mins) – yes you can fly to Sydney

Byron (fly into Ballina)

Beaches, Beaches, Beaches (of the Hunter region)

Stunning Nobbys Beach on New Years Day

It seems rude not to write a post on beaches after spending the Christmas period enjoying some of the best beaches that the Hunter region has to offer. Plenty of people live and holiday in strata-title close to beaches, so it’s definitely a relevant topic!

Within 1 hour of the Newcastle CBD, you have 40+ beaches to visit (is there anywhere else in the world where you have the beach variety?)- from the Central Coast to Lake Macquarie, through Newcastle, north to Stockton, Port Stephens and Tea Gardens. There’s swimming, surfing, sunbathing, snorkelling, water sports, sandcastle building and a range of other recreation activities.

We went no less than 10 beaches over the 16 days of holidays in Port Stephens, Lake Macquarie, and Newcastle. That is but a drop in the ocean of the total number of beaches given that Port Stephens alone has over 20 beaches.

Here are a few of my favourites (one from each of the coastal Hunter region Local Government Areas) and all my own photos.

Birubi Beach

Beautiful Birubi beach, looking down Stockton Beach

Located in Port Stephens in Anna Bay, Birubi is the at the northern end of Stockton Beach.

The water is turquoise, it’s great for pitching an umbrella on, kids love it as there is plenty to see and do exploring the rocks and it’s easy/free to park and get a shower as you leave. Birubi is a leisurely 45-minute drive from Newcastle and you can stop for a meal and a beer at Murrays or Valhalla on the way home.

Bar Beach

Bar beach at low tide

Bar Beach is the northernmost beach on the 1.3km stretch of sand which includes Merewether and Dixon Park Beaches.

We went to Bar Beach repeatedly throughout the break. It’s easy and free to park at, quick to get onto the beach (no long trudge over hot sand) and has a great cafe and facilities. Once on the beach, you have surf to the right and then a sand bar which is above water at very low tide and otherwise underwater and a great safe place to swim. On the left, there is a man-made tidal pool which is perfect for kids.

Bar Beach is one of the best beaches you will find this close to density, anywhere.

Redhead

Looking down Redhead down 9 mile beach/Blacksmiths

Redhead reminds me of the beautiful Port Stephens Beaches (without needing to go to Port Stephens to get there). Endless sand and waves and a great coastal shelf allowing you to get out in the surf without it being too deep. Whilst it can be rough, it’s well patrolled (swim between the flags!) and nearly always great for swimming. It can be prone to sharks, but that’s largely a concern for the surfers – they’re further out!

Parking at Redhead is plentiful and free and the facilities/cafe are great. There’s also an awesome SLSC which is open to the public for drinks and live music of a Sunday during summer. They also occasionally do markets in the car park behind the SLSC.

Redhead beach markets

The beaches in the Hunter region are stunning – there’s so many to check out and each has its own unique characteristics. Here’s a non-exhaustive list of beaches to check out over summer:

Lake Macquarie

https://www.visitlakemac.com.au/see-and-do/beaches-and-swim-spots/beaches

Caves Beach – check out the caves and Caves Coastal Bar and Bungalows

Redhead Beach

Dudley Beach – The Royal Crown Hotel is a must-visit if going to Dudley.

Catherine Hill Bay – Amazing historical area, formerly a coal-mining town.

Blacksmiths Beach – The other end of Redhead which isn’t quite as good (I haven’t been there so this isn’t an educated opinion!).

Nine Mile Beach – between Redhead and Blacksmiths – known for 4wding.

Burwood Beach (in the amazing Glenrock State Conservation area) – desolate and unspoilt.

Port Stephens

https://www.portstephens.nsw.gov.au/play/recreation-in-port-stephens/beaches-and-foreshores

Box Beach

Zenith Beach

Fingal Bay

One Mile Beach

Samurai Beach

Shoal Bay – stunning beach albeit very small at high tide, check out Shoal Bay Country Club when there.

Boat Harbour Beach – personal favourite as we have holidayed there since I was young.

Kingsley – Tiny surf beach – it’s a stunner.

Kingsley – not my photo!

Fishermans Bay

Taylors Beach

Little Beach – Little Beach boathouse is a must visit

Fly Point

Dutchmans Beach

Newcastle LGA

Newcastle Beach – an amazing piece of sand in the middle of the CBD. Check out the SLSC Sunday arvo for drinks. $3 drinks at 3pm!

Stockton Beach – Australia’s longest coastal dune system stretching from Newcastle Harbour to Anna Bay, it has the largest continuous mobile dune system in the Southern Hemisphere.

Nobbys – stunning beach right in the CBD with free parking and again, check out the SLSC on a Sunday.

Horseshoe Beach – On the harbour – dog beach

Glenrock Beach

Susan Gilmore – only accessible at low tide – once a beach for rogue nudists I’m told…

Bar Beach/Dixon Park/Merewether – one of the best stretches of sand in Australia. Check out all the venues along it – Cooks Hill surf club, Bar Beach Bowling Club, Merewether SLSC, Merewether Surfhouse and the Beach Hotel.

Merewether Surfhouse

Bogey Hole – not a beach but you gotta check it out – rock pool built into the cliff by convicts.

The Bogey Hole

Defibs in strata and community schemes – the facts

Defibrillators (or ‘defibs’ for short) are a hot topic right now – deservedly so as having one close at hand can mean the difference between life and death.

We recently had the pleasure of a visit from Guy Leech who now spends his working life as a defib ambassador (Founder & CEO) for Heart 180, one of the worlds leading suppliers of defibs.

Defibs have started to become common in larger strata and community schemes (particularly in pool/gym areas), however, we believe they should be common at any size scheme because of the concentration of residents and the absolute difference they can make in the event that someone has a Sudden Cardiac Arrest (SCA).

As we get further into the needs and wants of those living in strata and community schemes, we see health and safety as one of the paramount (but passive) issues for residents. Defibs have a very important role to play in the area of health and safety and we’ll be spending a lot of time in 2020 and beyond talking to building owners and developers about the benefits of having these onsite.

We are all about smarter buildings and this is the key to making ‘heart smart’ buildings.

The following is a fact sheet that we prepared with the guys at Heart 180.

Sudden Cardiac Arrest is the leading cause of death in Australia. Having an accessible Defibrillator in your building can make the difference.

A Sudden Cardiac Arrest (SCA) is a condition that occurs when the heart unexpectedly stops pumping. Each year, SCA strikes approximately 30,000 Australians.

Unfortunately, only around 6% survive, often because help cannot reach them in time. The average ambulance response time is between 9-14 minutes. SCA is not gender or age-specific!

Without defibrillation, for every minute that passes, the chance of survival is reduced by approx 10%. Application of pads on patient within 180 seconds increase the survival rate to over 70%. With good CPR & a defibrillator up to approx 90% survival rate.

We are in an increasingly cautious world and one of the protections that can be provided to residents is an accessible defibrillator located in key common areas, that they are able to access in the event that someone is having a cardio event, giving them a chance at survival.

What are theyDefibrillation is a technique used in emergency medicine to terminate ventricular fibrillation or pulseless ventricular tachycardia. It uses an electrical shock to reset the electrical state of the heart so that it may beat to a rhythm controlled by its own natural pacemaker cells. A defibrillator is a commonly used medical device which can deliver this shock. A defibrillator delivers a set amount of electrical shock to the heart after it analyses the heart rhythm. It determines whether a shock is required to the heart via adhesive electrode pads attached to the person’s chest. The shock delivered by a defibrillator interrupts the chaotic rhythm of the heart and gives the heart the chance to return to its normal rhythm.
The DevicesThe common defibrillator is highly advanced and will guide the user through the process. A device cannot be used on people without a cardiac issue. The Heartsine samaritan PAD 500P AED (Automated External Defibrillator) with integrated CPR Advisor meets the needs of two key links in the chain of survival. Not only can the SAM 500P deliver a lifesaving shock, it provides real-time visual and verbal feedback to the rescuer on the force and rate of CPR compressions during an SCA resuscitation – effectively assisting the rescuer to perform CPR. Defibrillator’s assess the status of a person’s heart and will not shock a normal heartbeat.
Training for using defibrillatorsAnyone can use a defibrillator – it is just a matter of following the voice prompts provided by the unit. However, training is recommended to give the user greater confidence. Heart180 provide an online CPR & Defib course or can arrange face to face training.
Where they should be installed at a buildingDefibrillators should be able to be accessed by a rescuer within 180 seconds of a person having a SCA anywhere in the building. This means locating devices as close as possible for quick access by all units – if not every floor, in ground floor/lobbies, recreation areas and possibly lifts.
MaintenanceMinimal maintenance required – will need to be serviced if discharged, however the devices have an 8-year warranted life span with a battery replacement at Year 4.
LiabilitySpecifically mandated that training is not required. No liability attached to misuse of devices. Held less liable than if administering first aid to someone, given verbal consent is required. Civil Liability Act 2002 No 22: https://www.legislation.nsw.gov.au/#/view/act/2002/22/part8 ANZCOR Guideline 7 – Automated External Defibrillation in Basic Life Support: https://secureservercdn.net/184.168.47.225/777.066.myftpupload.com/download/section_7/anzcor-guideline-7-aed-jan16.pdf

If you have a SCA in Australia outside of hospital – the survival rate is around 6%.

If you have a SCA in Seattle (US) outside of hospital where defibrillator use is common – the survival rate is around 64%.

Parkrun Australia (Case Study)

Parkrun organise free, weekly, 5km timed runs around the world. They are open to everyone, free, and are safe and easy to take part in. Heart180 have supplied 225 defibrillators over an 18-month period to Parkrun Australia.

The first save at a Parkrun in Australia occurred 3 months after Heart180 began supplying defibrillators.

Please find more information at the following link on Brett Orpwood’s survival story: https://heart180.com.au/a-shocking-lifesaver-as-brett-enjoys-his-second-run-of-luck/

If you want to no more about defibs – get in touch with Paul Dineen.

Phone: 0447 772 300
paul@360healthcare.com.au

Cleaning strata buildings and community schemes – you pay for what you get?

Proper cleaning of strata buildings is all-important to presentation and in turn, value (you don’t show a dirty house when you have it on the market, and buildings/communities invariably always have property on the market for sale/rent) – poorly maintained common areas that you can see, can well mean poorly maintained areas you can’t see (roofs, plant/equipment, etc).

Whilst having an all-important role to play in the value of a building, cleaning is also one of the lowliest paid professions and it can be hard to tie those performing the duties (who are often transient, casual workers) to the outcomes of the building and the organisation they work for.

Furthermore, many cleaning companies practice wage theft (which there have been recently publicised crackdowns on). I have heard of some cleaners being paid as little as $15 an hour (close to half the minimum wage). There is a common practice of sub-contracting in the cleaning industry where in some cases the cleaning contract is sub-contracted multiple times over and whilst a cleaner might cost $50 per hour they are seeing less than $20 of this. This practice is abhorrent and must cease.

Strata and Community schemes which don’t make relevant inquiries to ensure the cleaning companies they use are paying award wages are complicit in the above practices.

We use a handful of cleaning companies in Newcastle and the wider Hunter region to clean the schemes we manage and we are happy to recommend them as we know as they:

  • pay at least minimum wage;
  • supervise, encourage and properly train their staff;
  • ensure their staff wear uniforms (so residents have some assurance that someone new onsite works for the cleaning company they employ);
  • use commercial-grade cleaning products;
  • respond quickly to issues raised by building managers, ourselves and the committee; and
  • offer a range of additional cleaning services, such as pressure washing and window cleaning.

I spoke with David Kent of Skyline Contracting to get an understanding of what goes into an hourly cleaning cost and he gave me the following information:

We charge $55 an hour and a breakup is below:
• $26.03/hour for a Casual Cleaning Employee (Casual is very common in this industry);
• Super is $2.47 per hour;
• Cleaning Long Service Leave (Special Government program to ensure cleaners get LSL because the trend is cleaners change companies regularly and never have the opportunity to earn LSL) is mandatory and needs to be put away at 1.7% of all ordinary earnings ($0.44 per hour);
• Workers Compensation Insurance & Public Liability Costs (difficult to calculate per hour but we pay $15-16K per year.);
• As part of this price we cover all chemical costs required to perform all our normal duties. Depending on the chemicals required for the job sometimes we could consume one $10 bottle of chemicals across a month. Or we could use a $60 bottle of chemical across 2 shifts;
• In our pricing, we supply all the necessary equipment to complete the job. We also spend money on a regular basis to retag equipment, clean filters, replace certain parts and service our petrol-powered equipment to ensure our equipment is reliable, safe to use and won’t let us down while providing a service to our clients;
• This applies to our fleet of vehicles, we need to ensure safety by maintaining our vehicles and making sure we can arrive at jobs promptly. The above price covers all our travel expenses;
• Under our employment is our Cleaning Manager. They are responsible for ensuring our team of cleaners are always trying to do the best job they can and always trying to improve. They are responsible for Never-Ending Education & Training, Maintaining Team Morale, Speaking with our Customers, Empowering our Staff as well as looking for ways to grow our team.
• We pay for some awesome software to efficiently track our clients needs, our workloads and make it easier for the team to provide awesome service – $310.00/month;
• Premises to run our team from for office staff, storage of chemicals/consumables and to safely store our equipment/vehicles/trailers. A conveniently located workshop where we can all meet at the start of the day, liaise with each other, pack any extra equipment/chemicals we need for the day and somewhere to maintain our equipment.
• Marketing….
• We want to have enough left in our budget that if we need to stay a little longer to leave the place looking fabulous we don’t need to rush off and we can ensure our clients will be happy after every visit.
• Then, of course, leave some money to remain profitable

Until we have robots cleaning the buildings we manage, we will continue to seek out the best in the cleaning business – ethical companies that treat their staff fairly and apply the same level of client care that we do.

I separately spoke with Kaleb Paten at Pacific Maintenance Group about their approach to the cleaning business:

“As innovation and technology become more common and essential in all aspects of building management it’s imperative that buildings select a company that is focussed on providing the highest standards of cleaning.

Buildings often have daily cleaning requirements (or require attendance multiple times per week) and as such, the cleaners are the eyes and ears on the ground to relay important information back to the strata/building manager and the committee so that any issues may be attended to promptly (this isn’t just left to residents).

It is the ongoing theme that ‘cleaning will be automated by bots’ and yes, some areas of cleaning will be completely outsourced to robotic technologies. We saw this technology at the 2019 ISSA cleaning expo in Melbourne and this seems the best solution for open space cleaning (e.g. shopping centres).

We believe that the cleaning of strata buildings and community schemes will largely continue to be undertaken by humans who can clean to the highest level and effectively communicate outcomes to their business and the community.

In a business where there are so many moving components, changes to scope are frequent and it pays to have a well-spoken, well-trained professional onsite who will be able to perceive and help generate the best outcomes for the community.

For this Industry to further grow and make progress, there needs to be a transparent and humane approach to improvement.

Companies undercutting other competitors and making a profit ONLY by bringing in illegal labour will be the first exposed, it’s approaching 2020 and modern slavery is unacceptable, these companies will be the first to go as the consumer market seeks transparency and exposes malpractice.

As consumers, it’s key that we understand who will be the persons undertaking the work we are asking the cleaning company to perform and the conditions under which they work.

Progress comes from collaboration, let’s get rid of the companies who exploit people, let’s have open communication with clients and suppliers and let’s be open with pricing and educate on why costs are what they are.”

It was great to get collaboration from both David and Kaleb on this blog, which is an effort to help educate our clients and the wider market to understand the potential differences between what they are paying for and what they are receiving.

The convergence of strata and facilities management is coming

Any strata building is complex. In a single day, there might be a range of issues requiring the input of professional managers and specialist contractors.

The average size of strata schemes has increased dramatically in recent years; whilst 40 lot buildings used to be considered large strata schemes (and contain c. 80-100 residents), it’s now common to see 300+ lot strata buildings, with potentially over 600-800 residents. This isn’t only a Sydney/Melbourne metro phenomenon – it’s an urbanisation issue impacting Brisbane, the Gold Coast, Newcastle, Canberra, Adelaide, etc.

This has changed the landscape for strata and facility management and there are constant calls for higher skill levels than were once required. These communities are complex, have massive budgets and the skills, software and contractors required to manage them are comparable to that required for very large commercial buildings. This is also a time of machine learning and soon we will (hopefully) say goodbye to repetitive/mundane administrative tasks which pain the strata and facility managers of today.

Additionally, strata committees used to be able to do a lot of legwork at a building and it was common to see them made up with people who had time, rather than specific skills. Successful strata committees of today are made up of experienced professionals who have owned in multiple buildings, are experienced and knowledgeable about their obligations and functions in sitting on a committee and know the benefit of solid independent management and advice.

It’s now more common for smaller buildings to have the input of both a strata manager and building manager, as these buildings understand the benefit of an onsite professional and their input in the context of the complex facility which the owners are expected to manage.

The strata manager of the future is a relationship manager and master administrator supported by a well-resourced, technologically abled and specialised head office  – they understand that they need to help buildings make good decisions and they arm them with the appropriate information to do so and they ensure transparency, accountability, compliance and process. They are great at communication by myriad means, cost planning and running meetings.

As noted, many of the traditional strata functions are becoming automated, however the role of the strata manager is expanding and diverging into that of the facility manager.

Strata companies with FM capabilities are ahead of the curve, as they understand and have close involvement in:

  • asset maintenance/management. Compiling asset registers, advising on and arranging routine preventative maintenance.
  • Community building
  • Sustainability and energy/water management
  • Emergency planning and relief/management
  • Prompt communication with occupants by different means
  • Focus on building security
  • Can assist with economies of scale
  • Defect management
  • Development advisory – how will people live in the asset?
  • Ensuring contractors have undertaken work correctly, assessing the payment of invoices
  • Remote access and management

Ultimately, strata and facility management (in both strata and community schemes) will converge, with most full-service strata companies having an inhouse facilities management business to truly support the strata living experience and expectations of today’s occupiers.

The strata management company of tomorrow (that wants to manage the communities of tomorrow) is well versed in facilities management, with the inhouse skills to manage the building fabric and the ever changing needs of its occupants.

Is it time to consider a flatline management structure for your committee?

As of 2018, there was 316k strata and community schemes in Australia – that means at least 316k people sitting on strata committees (granted some may sit on many, however, some buildings have up to 9 members).

Conservatively, let’s say that there are 500k people sitting on voluntary strata and executive committees across Australia – dare I say, this would have to be the quickest growing membership of any type of voluntary committee, Australia-wide.

In my time as a strata manager, I have worked with high performing committees and low performing committees. There’s no formula to what creates a good committee for a scheme and often a scheme will need to go through pain for good people to come out of the woodwork and jump on a committee.

A committee should:

  • spend money, not penny-pinch;
  • try and be as efficient as possible and respect peoples time;
  • defer to experts as required;
  • have a basic knowledge of the Act/s under which they operate;
  • make sure they have liability insurance;
  • communicate openly with owners and occupants; and
  • meet relatively often and deal with decisions at properly convened meetings

These hundreds of thousands of strata and executive committee members:

  • are unpaid (generally);
  • don’t know each other well;
  • often have disparate interests;
  • share little in common other than ownership of a strata or community title lot;
  • may have a lot of time on their hands or little time;
  • may have experience in being on professional committees or it may be their first experience; or
  • might want the best for their community or might be there for only personal interests or a vendetta

There’s no easy way to address the above issues – I believe that committees are getting better as they now have more experience and better access to information. However, I believe that all committees would benefit from considering a flatline management structure (which works incredibly well in business and high-performance voluntary organisations like sporting clubs).

We have prepared a brief overview of a flatline management structure for schemes we manage to consider, which could work for your own. Committees should be the realm of those interested, with the requisite skills to push issues in the right direction, who defer to experts rather than ignoring them and who sponsor each member’s interests, skills and passion rather than operate by the ‘many chefs in the kitchen’ mentality.

Strata Solar – is now the time?

Solar is fast becoming the in-demand sustainability and energy efficiency initiative for strata buildings in the Hunter region.

Once a building has considered and undertaken ‘low hanging fruit’ efficiency upgrades to lighting, HVAC, etc. – solar is generally the next pillar for consideration.

We all know that the climate in the Hunter region is fantastic year-round, with (300) sunny days per year; this, in turn, makes for fantastic solar energy production.

We have helped arrange the installation of solar at a number of buildings we manage and we’ve had fantastic support from the owners and results for the owners corporation in doing so.

Strata buildings in the Hunter, Lake Macquarie, and Newcastle region have features that lend themselves well to the installation of solar:

  • Flat roofs without plant and equipment, on buildings with a relatively large footprint (there are not many towers in the area like you find in Sydney metro areas);
  • limited over-shading from other buildings (e.g. commercial buildings like you get in many parts of Sydney) and trees;
  • Relatively limited demands on common property power – lighting, garage doors, lifts, HVAC – thus a rooftop solar system is generally able to offset this completely;
  • Payback periods as short as 4-5 years based on current power charges – this will shorten again if rates continue to rise (which they likely will with the closure of power plants);
  • The indicative lifespan of solar systems of c. 25 years, with very little maintenance;
  • Ability to reduce demand on the grid, which can be stressed during summer when people are running air-conditioning and other appliances; and
  • A greater focus on cleaner/smarter energy than there’s ever been.

The process for getting solar on your building is relatively simple:

  • Strata Committee arranges for assessment by a solar installer (make sure you find one that has done strata work previously). There may need to upgrade to the electrical board and wiring to allow for solar;
  • Provided the building is suitable (some are not due to the shape of the roof, over-shading, plant and equipment on the roof or the orientation of the roof), competitive quotes are sought based on a suitably sized system for the building.
  • We suggest having an independent third party such as Sustainability Now or Wattblock (here’s a great white paper that WattBlock did on solar – certainly more informative than this particular blog) – tender the work and give a recommendation (there are so many types of panels and inverters and you want to ensure what you are getting is suitable);
  • Work out how the system will be funded – special levy or out of existing funds (what has worked well at other buildings is using capital funds to purchase the system and then allocating additional funding in future years to repay the system cost from the savings in electricity in the administrative fund);
  • Put relevant motions to a general meeting for funding and the addition of solar to common property; and
  • Once agreed by the meeting, proceed with the work and start experiencing the amazing cost benefits of solar.

Committees and managers should ensure that the solar system is monitored so that you know it’s producing power. There’s nothing worse than having an expensive solar system on your roof which has tripped and nobody is any the wiser. There are now SIM solutions for this at a minimal cost and an alert goes to the strata/building manager/retailer or committee if the system isn’t operating as it should.

There are also some alternate models out there involving leasing the solar equipment and the lessee being able to provide occupants clean power at a discount.

Battery storage technology is getting better year-on-year as well, so there’s every prospect of mating battery with solar to ensure that a building will only draw power from the grid in off-peak periods.

It’s also noted that strata schemes made up of townhouses can likely obtain all the benefits of solar on a per-lot basis (or potentially group together for the installation of a larger system with battery technology – there’s every opportunity for an off-grid development in the Hunter of this type in years to come).

At Bright & Duggan and Cambridge Management Services, we would be happy to have a chat with anyone about the process and the benefits.

Should your owners corporation do a health check?

I recommend that every owners corporation (or community scheme) takes time periodically to reflect on the way it’s managing its affairs.

This isn’t just going through a process to look at a change of strata managers or building managers (in fact I advocate that people stay with their service providers and try and resolve small differences, rather than move to save a few bucks and lose a whole lot of knowledge in the process).

I have noted a few different areas of focus for a ‘health check’. Some of these are relevant to all schemes, others are overkill for smaller schemes.

Management

  • Is the current strata and facility management operation optimal – what other options exist in the market (services performed directly or virtually)? What are the costs of alternative services/structures?
  • What software exists that may be able to improve the running of the community?
  • Are your service providers professional, value for money and do they know the building/community?
  • What are the provisions for out of hours/emergency events?

Financial matters

  • Does the building budget program (which needs to be looked at over a multiple-year period) align with the capital works fund?
  • Are there possible savings that can be made (contractual or otherwise)?
  • How does the budgeting process work on an annual and ongoing basis?
  • How are invoices coded? Are work orders generated from the relevant cost centre?

Governance

  • How regularly does the committee meet – are these meetings productive (i.e. are issues being resolved or are they ongoing)? Do the meetings align with meetings for other entities of which the scheme forms part (e.g. BMC).
  • What introduction/guidance do new committee members receive to being on the committee? The Fair Trading Strata/Community Living guide should be required reading for anyone in strata or community title (let alone those who live in a strata scheme within a community scheme!).
  • Is there knowledge amongst the committee members which should be recorded/held to be accessed if member sells their property or is otherwise unavailable?
  • Are relevant sub-committees being formed?

Technology/other matters

  • What technology does the building have available to it to improve the management of the building (e.g. data logging, automated reporting)?
  • What sustainability upgrades exist – should the community consider obtaining a NABERS rating?
  • What security upgrades should the building consider?
  • Would the building be best served with a professional building manager?

Security – what’s next?

2019 ASIAL show, ICC Darling Harbour

Strata Schemes are basically the Luddites of the built environment. Older buildings have very little that is ‘smart’ about them and builders/developers (particularly when it’s a design/construct contract and cheap/cost-effective is the only option) are generally not incentivised to install the latest and greatest technology into buildings.

The current status quo is a shame; there is amazing technology out there and on the way that strata buildings could be taking advantage of, to manage security, control costs, monitor building health and greatly enhance the resident experience.

Yesterday I attended the Australian Security Industry Association Ltd (ASIAL) conference in Darling Harbour, which runs annually and is great to get an insight into what security technology is in the market and what is on the horizon. Thank you to our friends at Quorum Security Systems for the tour.

Some highlights with potential uses for strata buildings/community schemes:

Robot Sentry

Yes – this looks like a Dalek, but that’s kinda the fun of it.

Dalek/sentry.

Perfect for checking car parks and large flat outdoor areas, particularly at night. Could take the place of a need for having multiple security guards onsite.

Future potential uses I can see for this technology at buildings include checking plant and equipment is operating properly, administering move-ins, checking by-law breaches, cleaning standards (or doing the cleaning?), etc.

Keys as a service

Not a great photo – but you get the picture!

This is interesting tech – doing away with keys/swipes for entering buildings and using facial recognition to gain entry. This gives much greater security and assists management with knowing who is who in a building, particularly if there is an incident.

Secondly, the days of the intercom as we know it are numbered (along with associated cabling throughout a building).

With some new internet-connected door stations, there is no need for a connection to apartments – the request goes over the internet and to an internet-connected handset, or to a phone/tablet anywhere in the world. This is exciting technology, which will offset capital costs for developers and future owners and give a huge amount of flexibility in granting entry to a building. There are many potential applications for this; getting away from building keys/swipes is the future.

CCTV – Video Analytics

Video analytics technology in action

This is pretty amazing tech – watching it in action at ASIAL reminded me of the Will Smith “Enemy of the State” movie (ha – how is that 20 years old!).

The video analytics software now on the market really needs to be seen to be believed. Instead of someone needing to spend hours reviewing footage, potentially on multiple cameras – the analytics behind it can be used to pick up all instances of a person or a thing occurring (e.g. a package being on a table and) and it will continue to drill down based on the information you give it.

Obviously, the concern here from a residential perspective is privacy concerns, however, used properly and within defined boundaries – this could serve to greatly increase security and augment the ability to manage buildings.

Garage Entry

The future is Number-plate recognition or RFID windshield tags.

This technology is now hugely reliable and more cost-effective than your average sensor/remote system.

Number-plate recognition would be my choice, given the flexibility of controlling visitors parking and also having all cars in a database. Anything that helps with the dreaded visitors parking! There is a degree of management involved with such a system (which should be minimal after a building is settled given residents don’t change that often), but once established it should be no harder than programming and issuing passes/remotes and can be done remotely, in an instant.

RFID window tags are great as they are very cheap (about $6 versus a remote costing $50+). These can also be administered remotely, however, a physical tag must be issued in the first instance.

I look forward to sharing these insights with owners and developers – we can’t be far away from seeing this technology as standard in new buildings. Access control and a basic CCTV system doesn’t cut it anymore!