Hunter – Stratalife

Covid-19 – Strata Budgets

Strata Corporations are self-funded entities and at this time there is no government relief funding available for them to assist in the management and cashflow of their funds.

A Strata Corporations has a statutory duty to repair and maintain its common property in a good and structurally sound condition, which includes cleaning of common areas, maintain adequate insurance policy and provision of essential services (i.e. lifts, security, electricity, gas, and water).

To ensure a Strata Corporations is able to meet its financial obligations, Owners are still required to pay their levied contributions, as approved at a General Meeting.

In some instances, the Strata Corporations can review ways to reduce their expenditure during these times of uncertainty and to assist cashflow requirements.

It is suggested that any non-urgent sinking/capital works should be placed on hold and consideration be given to temporarily cutting the sinking/capital works levy if owners require levy relief (further noting that this will not be possible unless a scheme has adequate savings, and if any works are able to be placed on hold). We recommend that the Strata Corporations undertakes a revision of their Capital Works Fund Plan, to defer all non-essential works for another 2-3-year period. This will provide for an opportunity to catch up, as well as maintain their legal requirements under the Act.

Generally review your contracts, as sometimes a contract is on a rollover, and if the service is non-essential, it may be able to be suspended or services limited if possible.

A breakdown of services considered essential and non-essential for a Strata Corporations is noted as follows (note: other services may be available to the building).

Item	Notes	Action
Strata Management base fee	Contractual cost – no saving to be made, noting that we have an increased workload relating to COVID-19, additional costs incurred which are not recoverable and pressure on parts of our revenue	n/a
Strata – Additional Services	These are costs that are effectively optional for an owners corporation/body corporate	Committee consider undertaking the work themselves (e.g. running committee meetings themselves, preparing agendas/minutes) Lesser costs for meeting Put off non-urgent works
Taxation	Statutory Requirement – unchanged	n/a
Legal Costs	Unless a legal matter is ongoing, these may be able to be delayed (e.g. tribunal action for a breach of by-law) Note that defect statutory timeframes still need to be complied with	Consider whether matter important enough (or possible) to pursue legally and whether there is a requirement/obligation to do so
Disbursements	Must be incurred when owner has only provided a mailing address in relation to levies/statutory notices (e.g. agendas/minutes), as well as operating costs under the Agreement	Owners/agents should provide email addresses to reduce disbursement costs and otherwise discuss with their manager how these costs might be reduced
Software	n/a contractual cost	n/a
Insurance	Required	As always, broker should be working to ensure owners get the best deal. Payment installment or premium funding may be options.
Building Management	Contractual cost	Building Managers are now busier as a result of COVID-19 and are considered an essential service provider. Services delivery may be delivered by alternative means to ensure social distancing. Critical to scheme and resident management.
Security/Concierge	Generally contractual in nature	This should be reviewed case by case.
Cleaning	Essential service – may increase due to extra cleaning required	Cleaners are now busier as a result of COVID-19
Gardening/Landscaping	Possible to reduce cost but ensuring that gardening/landscaping doesn’t get out of hand	Residents could consider undertaking the work themselves, but ensure you notify the insurer of the type of work being undertaken, in order to maintain liability coverage under Voluntary Workers Policy
Fire Maintenance	Essential service	n/a
Fire Monitoring	Essential service	n/a
Fire Repairs	Essential service	n/a
Lift Maintenance	Essential service	n/a
Lift Telephone(s)	Essential service	n/a
Air-Conditioning	Essential service	n/a
Pumps/Irrigation/On-site detention	Essential service	n/a
Access Control System	Essential service	n/a
CCTV	Essential service	n/a
Electrical	Essential service	n/a
Exhaust/Ventilation	Essential service	n/a
Garage Doors	Essential service	n/a
Garbage Compactor	Essential service	n/a
Gym Equipment	Gym should be closed	Costs to maintain equipment/utilities in relation to gym offset
Hot Water Equipment	Essential service	n/a
Locks/Keys	Essential service	n/a
Pest/Vermin Control	Possible to reduce costs by decreasing the amount of sprays completed; not applicable to termite sprays due to warranty	review
Pool (Servicing/Chemicals)	Pool should be closed Nb – Councils still require compliance and chemical/maintenance costs cannot be fully eliminated.	Costs to maintain equipment / utilities (heating/lighting) / chemicals in relation to pool offset
Plumbing and Drainage	Essential service	n/a
Window/Facade Cleaning	Able to reduce cost	Reduce the amount of window/facade cleaning visits NB – if cleaning is required under warranty, ensure that it occurs as normal
Electricity	Essential service	n/a
Water	Essential service	n/a
Gas	Essential service	n/a
Rubbish Removal	Essential service	n/a
Carpet Cleaning	Possible to reduce costs by decreasing number of cleans	Review needs
General Repairs & Maintenance that could pose OH&S (i.e. broken tiles)	Essential service	n/a
Roof/Gutter Repairs & Maintenance	Essential service	n/a
Telephone Expenses (i.e. lift/fire)	Essential service	n/a

Strata Manager VS Building Manager

In the Lake Macquarie, Newcastle and Hunter area, I constantly hear differences of opinion between owners, committee members, service providers, strata managers and building managers as to what a strata managers role is when there is also a building manager contracted by the owners corporation.

Owners need to be better aware of what they are paying for and whether they are potentially paying for it twice (e.g. building manager should be issuing work orders as part of their fee, however, they ask the strata manager to issue work orders and they charge a fee to do so).

Furthermore, the understanding of what a building manager can and should be doing has changed greatly over the past decade – whereas once they were a cleaner with a tool belt (e.g. caretaker), they are very much now the professional onsite interface between residents, contractors and the strata manager.

We often educate potential and new clients as to who should be doing what. The Strata Schemes Management Act is somewhat vague on the role of a Building Manager and it’s defined as below:

STRATA SCHEMES MANAGEMENT ACT 2015 – SECT 70

Functions of building manager

70 FUNCTIONS OF BUILDING MANAGER

(1) A building manager may, in accordance with the building manager agreement appointing the building manager, assist in exercising one or more of the functions of the owners corporation of managing and controlling the use of common property (otherwise than by the owners or occupiers of lots) and of maintaining and repairing common property.

Noting the above, the scope of what is in the agreement between the owners corporation and building manager is what is important here, however, it’s now better understood what the role of a professional building manager entails:

Item	Strata Manager	Building Manager
Repairs / Maintenance	Administration with strata committee – e.g. approvals	– Issuing work orders – Contractor management (sourcing, insurance, SWMS, Site induction) – Monthly/routine reporting – Arrange quotes for committee review for routine and ad-hoc maintenance
Defects	Advisory/escalationManagement via committee/OC	-Processing / administration of in-unit and common property defects with builder – Escalation of common property defects to strata manager/strata committee where not addressed by builder
Moving	Collect bond if applicable	– Establish process for moving of goods over common property – Manage bookings/lift covers – Inspect common property for any damage
Software / Communications	Use of software for announcements if requiredInvolvement in Whatsapp committee groupIssue communications from owners corporation/strata committeeDeal with owner/committee queries in relation to owners corporation	– Management of Buildinglink or other system – resident database, announcements, – Management internal communications – e.g. Whatsapp cleaning group, committee group – Place signage on site as required – Dealing with all resident queries – e.g. metering, by-laws, approvals
AFSS	Approvals via committeeSubmission to council	– Source relevant contractors – Arrange inspections – Coordinate statement requirements
Site Inspections	n/a	Weekly inspection all common property areas – ensure proper functioning equipment, by-law breaches
Waste	n/a	Ensure functioning of chute/waste room and collection of rubbish with cleaner
Meetings	Manage all OC/SC meetings	– Prepare quotes/reports as required – Attend committee meetings – Potential involvement in sub-committees
Emergencies/out of hours	Provide out of hours contact service	– Provide 24/7 contact service for onsite issues – Attend site if required
By-laws	By-law escalation – e.g. final notice/notice to comply and any formal proceedings – committee action/approval	Manage first action – e.g. direct communication with resident via call/sms/email/in person
Bookings – common facilities	Assist in establishing rules/procedure for booking common facilities, including SC approval	Establish and manage the booking of any common facilities – e.g. BBQ area
Contracts	Execute and negotiate contracts as instructed	Obtain pricing for R/M OC contracts as required – Fire, lifts, pumps, cleaning, gardening, etc)
Budgeting / Finances	Prepare annual budgetsPay all invoicesReport to strata committee	– Assist strata manager with budgeting. – Invoice approval as required
Keys	Take deposits as required	– Issue keys – Authorise keys – Maintain key register
Community / Place making	Advice (insurance, etc)	Facilitate community events and other placemaking exercises
SSMA and other legal requirements	Manage OC compliance with the SSMA and other OC legislation	Be aware of the requirements of the building manager under SSMA and other relevant legislation – e.g. authorisations, timelines, approvals

NB – if BM fails to perform duties, SM steps in and manages at hourly rate if requested.

SC – Strata Committee

OC – owners corporation

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/

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!

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.

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)

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

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 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

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.

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.

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.

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

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 they	Defibrillation 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 Devices	The 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 defibrillators	Anyone 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 building	Defibrillators 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.
Maintenance	Minimal 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.
Liability	Specifically 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.

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-Committee-flatline-management-structure Download

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?