Owners Corporations: What to Expect as a New Strata Owner

Introduction to the Owners Corporation

Congratulations on your new purchase! Whether it’s your dream home or a smart investment, exciting times are ahead. As you embark on this property journey, here are a few key principles to help you understand what it means to be a member of a body corporate.

When you purchase a unit or apartment in a strata building, you automatically become a member of the owners corporation, also known as the body corporate. This legal entity is comprised of all unit or apartment owners within the building and functions similarly to a mini local council. Its primary role is to ensure that common property is well-maintained and that the peace of the community is nurtured. Establishing by-laws is therefore essential for creating harmony, ensuring that rules and standards apply fairly to everyone. These by-laws provide information before you move in, answering common questions such as “Where can I park?”, “Can I keep a pet?”, and “When can I use the pool?”

Roles and Responsibilities of Members

As a member of the owners corporation, you share in the responsibility of managing the property. Key responsibilities include:

• Taking out insurance to increase protection of the building and its owners
• Administering finances and maintaining common funds to adequately cover the building’s expenses and ensure financial stability
• Organising and participating in regular meetings to make informed decisions and stay updated on property matters
• Supporting dispute resolution efforts to address conflicts effectively
• Responding to tenant and all stakeholder correspondence to address concerns and maintain good relationships within the community
• Keeping detailed records, including financial statements to ensure transparency and accountability
• Making decisions about property upgrades, repairs, and maintenance to preserve and enhance the property’s value
• Managing common areas such as stairwells, pools, gardens, carparks, and lawn areas to ensure these areas are safe, clean, and enjoyable for all residents

Your involvement ensures that the value and liveability of the property are maintained, benefiting all members.

Understanding the Governing Rules

The owners corporation is governed by a set of by-laws or rules designed to facilitate the smooth operation of the community. These rules cover various aspects, including the use of common property, noise control, and dispute resolution. It is essential for all members to familiarise themselves with these rules to ensure compliance and foster an amicable living environment  out of respect for each other.

Meetings and Voting Procedures

Owners corporation meetings are crucial for discussing and deciding on important matters related to the property. The most significant of these meetings is the Annual General Meeting (AGM), where members elect the owners corporation committee, review major issues, and discuss current concerns. Regular committee meetings are also held to discuss ongoing projects and monitor finances. While attendance at the AGM is encouraged, it is possible to nominate someone to attend on your behalf if you cannot be present. This will ensure your voice is heard and your vote is counted.

Financial Contributions and Levies

As a member of the owners corporation, you are required to contribute financially to the maintenance and management of the property. These contributions, known as strata fees or levies, cover expenses such as insurance, maintenance, and services like pool cleaning. Occasionally, special levies may be necessary for significant repairs or upgrades. It is important to participate in meetings to have a say in these financial decisions and ensure that funds are used appropriately.

Maintenance and Common Property Management

One of the primary responsibilities of the owners corporation is the upkeep of common property. This includes areas such as stairwells, gardens, pools, and carparks. Regular maintenance and prompt repairs are essential to maintain the property’s value and ensure a safe and pleasant living environment for all residents. Members of the owners corporation committee, often with the support of a strata management company, oversee these tasks.

Communication and Conflict Resolution

Effective communication is vital for the smooth operation of the owners corporation. Regular updates and open channels of communication help keep all members informed about important decisions and upcoming projects. Additionally, the owners corporation plays a key role in resolving body corporate disputes among members. Having a structured process for conflict resolution ensures that issues are addressed fairly and promptly, contributing to a harmonious community.

Insurance Coverage and Claims

The owners corporation is responsible for insuring the property against various risks, including damage from weather-related events, fire, and vandalism. This insurance covers common property and shared facilities, but individual owners may need to arrange additional coverage for their units and contents. In the event of a claim and depending on the circumstances, the owners corporation, the committee, and/or the body corporate manager may assist in managing the process, ensuring that repairs and replacements are handled efficiently.

Enhancing Community Living

A well-functioning owners corporation contributes significantly to the quality of life within the strata community. By effectively managing common property, resolving disputes, and maintaining transparent communication, the owners corporation fosters a positive living environment. Members are encouraged to participate actively, offering their skills and expertise to enhance the community’s overall well-being.

Resources and Support for New Members

Joining an owners corporation can be daunting, but resources and support are available to help you navigate your new responsibilities. Many owners corporations provide comprehensive guides and assistance for new members. Professional strata management companies offer valuable expertise in areas such as financial management, legal compliance, and maintenance, ensuring that the owners corporation operates smoothly and efficiently.

Contact ACE Today

Becoming a member of an owners corporation brings with it significant responsibilities but also numerous benefits. Active participation in the management and decision-making processes helps maintain the property’s value and ensures a harmonious living environment for you and all residents.

For professional support and expert advice on managing your strata property, contact ACE. Our experienced team is dedicated to helping owners corporations thrive, providing comprehensive management services tailored to your community’s needs.