Ecologically Sustainable Sydney

As a tenant we have a limited interest in the building and community, as long as the neighbours are quiet and the garbage gets collected. Ofcourse we want to pay a reasonable rent. See Strata scheme tenants.

However, as owners of individual units, members of the body corporate, we also have an interest in ensuring our building is maintained. And if we are renting out our unit, that we have a tenant, they look after the property and pay their rent.

While the overall cost to the community and environment of higher density living is reduced, the charges to owners and tenants isn't always commensurate.

Take for example services such as water, sewerage, electricity and council rates. Though these are provided to the building as a whole individual owners and tenants are charged as though they are a standalone dwelling. Resulting a significant windfall to Councils and Utility companies. Also, where these bills are managed by the body corporate increases in water charges, for example may not be monitored so as to lead to more responsible water usage.

Often owners expect a body corporate executive, conveyance lawyer, real estate agent and strata manager to look after their interests. However, they should still be pro-active in monitoring the management of their property.

Some, if not all states, provide guides and web resources to laws and responsibilities of owners of Strata Units - some useful links:

• See - Buying into a strata scheme?
• There are prescribed fees for services such as preparing certificates and making records available as per Section 109 and 108 of the NSW Act Part 6 >> Clause 19, Strata Schemes Management Regulation 2005,19 Fees
• In NSW the legislation is available via the Internet- Schedule 7, Strata Schemes Management Regulation 2005 Forms includes Section 109 Certificate, changes to bylaws
• NSW Department of Fair Trading - Change to Strata Laws
• Department of Primary Industries, Water & Environment- Strata Living in Tasmania

Owners need to ensure they are provided with sufficient information and that there is some anticipation of the need for operations, maintenance and other major outlays.

Planning and Budget

A Budget should include operational or running costs and at least identify if not price maintenance work that needs to be done and provide a timeframe.

Operational and Running Items

For example:

• cleaning - common areas
• insurance - there are specific requirements in NSW in relation to Damage to the Building, Valuations, workers compensation, office bearers and public liability, building and contents.
• electricity - light bulbs, lifts, swimming pools, doors
• water - internal, gardening
• administration - reporting to owners, collecting levies, paying bills, maintenance and management
• garbage collection.

Maintenance Items

For example,

• interior and exterior painting
• plumbing (sewerage and water)
• carpets and floor surfaces
• washing machines & dryers, lifts, swimming pools
• structural - roofing, guttering, windows and frames, doors, paths

Taxation

• ATO Rulings relating to Body Corporates
• Ordering Tax Return form
• TAXATION RULING NO. IT 2505
  IT 2505
  INCOME TAX : BODIES CORPORATE CONSTITUTED UNDER STRATA TITLE LEGISLATION
• Strata title body corporate tax return and instructions 2007

Lifestyle

Human issues also need to be considered such as litter, smoking, noise, use of common areas, security and safety of person and property, use of toxic materials, garden vegetation and garbage management - separation of recycling and composting.

Author: Marghanita da Cruz
Email: marghanita@ramin.com.au

www.ramin.com.au/eco-sydney/stratamanagement.html © Ramin Communications 2007. Last modified 12 September 2008.