Forget pets, parking and parties, even smoking and defects, these impact every single scheme and are costing them thousands of dollars a year in unnecessary spend. They also have a flow-on effect that increases the likelihood and severity of all other problems. The good thing is, they are both relatively easy to solve.

The first one is education.

Every year, a large number of people buy or rent in strata without realising the implications of shared ownership and shared living. The prevalence of individual housing in Australia up until now means most people have grown up in a house where the relationship with others is limited to a couple of neighbours on each side and where there is, within planning requirements, great independence in what they can do in, and to, their property.

This all changes in strata where the density and proximity to others is much greater, and so are the limitations to what you can do without seeking permission from the other part owners. Unfortunately, awareness of the general rules of strata is limited. Just like the fine print in every contract, it is usually always there and mostly ignored. To make things worse, the legislation varies for each state and territory and it changes relatively frequently. And on top of that, each scheme can over time develop its own specific set of rules in the bylaws. This leads to situations where owners don’t understand why they have to pay levies or what is the money used for, renovate without seeking approval, park wherever they want and all the rest. Our next post will focus on where to find excellent, free online resources to improve the awareness and knowledge of strata.

The second one is apathy.

The lack of awareness and perceived complication of strata lead to a lack of engagement. Over 80% of strata owners don’t participate in running their scheme and if they do, a majority only does the strict minimum by voting at their yearly AGM. As strata was devised as a participative democracy, this causes huge concerns as no amounts of delegation to professional managers will replace the “skin in the game” that owners have. I have recently been shown recent AGM papers for a large 300 lot building where only 3 owners showed up at the AGM (+1 proxy). Even if this is an isolated and extreme case, it is a great example of how dysfunctional strata can become.

Without any oversight from the owner’s corporation, several things are bound to happen:

-A minority will take control and run the building as their own, potentially putting their own interests ahead of the ones of the majority.

-An absence or delay in making decisions will increase the cost or severity of any necessary maintenance or repairs to the building and will end up impacting the attractiveness of the building and its amenities.

-The notorious complacency will lead suppliers and contractors to progressively charge excessively, perform unnecessary work or charge while not even carrying the work at all. This will lead to an unjustified increase in levies that will again affect negatively the value of your property.

So, what can you do to avoid these adverse consequences?

First, don’t wait for someone else to take the lead. Just like any collective entity, there is always the temptation to sit on the sidelines waiting for someone else to raise their hand. It can, and must, start with you. Communicating and interacting with other parties in your building doesn’t need to be hard. At Stratabox, we believe that with increased convenience provided by a user-friendly online platform, and once they realise the benefits, the other owners will be willing to help.

It has to start now, with you. Don’t hesitate to contact us should you require more information, to discuss your specific requirements, or for assistance setting up your building online. We’re always here to help at contact@stratabox.com.au