Below are some of the commonly asked questions that we receive. 

 

Should your query not be answered here, please call us on 0421 881 137 or email info@edwardnco.com.au

 

What is Strata Management?

Strata management, is the operational management of a Body Corporate, or in Victoria, Owners Corporation (OC), that consists os multiple units, residential or commercial with common areas and sometimes facilities. The number of units can vary from two to several hundred.

Does the OC need a Strata Manager?

A Strata Manager is a specialist manager who overseas all matters of an OC. A key requirement of a Strata Manager is to have comprehensive knowledge of all the legislation applying to OC's. This is in addition to an in-depth understanding of the day to day operations within the building, such as the requirement of facilities management and the financial operations and accounting processes.

Why does an owner have to be a member of an OC?

If you own property within an OC, then you have automatically become a member. A member is legally required to comply with all valid decisions of the OC.

What is the role of a Strata Manager?

The strata manager must work with the Executive Committee. Advice must be given to the Executive Committee as to the legality of any decisions that are being made. It is also important that the Strata Manager's management is appropriate to the community environment. Making preparations and conductin: - Financial management including cashflow - General accounting and bookkeeping - Budget preparation - Invoicing of levies - Management of contracts for services etc. - Enforcement of OC rules.

Why do levies have to be paid?

An annual budget is determined and agreed upon at each Annual General Meeting (AGM). This budget sets out what funds wull be required over the coming year to cover all expenditure. Each levy is proportional to the total expenditure.

How are levies calculated?

They’re commonly calculated by the size of the lot you own (i.e. a 3BR unit will have higher levies than a 1BR), the size of the building complex, its age, and its amenities. Things requiring regular maintenance such as lifts, pools, and gyms tend to increase levy costs. There are 3 main types of levies. These are: Administration Fund Levies: Covers the day to day running of the OC such as insurance, repairs, gardening (if any), contractural services and utilities. Maintenance Fund Levies: For larger OC's this is a legal requirement. These levies reflect the cost of large periodical maintenance and upgrades but not new capital works. Special Levies: Generally one off levies to cover unexpected or extraordinary expenditures.

What does an owner do if something needs fixing?

Contact your Strata Manger, however tenants should do this through their Landlord or Property Manager.

What are my rights and liabilities as an owner?

Owners have the right to contribute to their OC's decision making. This can be done via voting rights, standing for a position on the Executive Committee or by providng any concerns to your Strata Manager and being heard. As a strata owner you also have unlimited liability should anything go wrong. This is why Strata Insurance is compulsory in every state.

What is an Executive Committee?

An Executive Committee is a group of owners who are elected at an Annual General Meeting and represent the interests of all owners in the Owners Corporation.