Hi everyone. This is my first time so be gentle with me.
I have a CP+ strata unit in a good area. Its a small block of 5 units close to everything. My problem is that the strata manager doesn’t apear to me to be doing a very good job, and there seems to be some connection between the strata manager and 2 of the owners, and they work together at our strata meetings. The strata managers fees seem quite high and they certainly don’t do anything extra to justify this; the sinking fund is quite healthy but the contributions to it increase each year also.
I have developed a plan to break this trio, change strata manager and reduce the sinking fund contribution, but I am baffled as to why the 2 owners would want to keep things the way they are and have thus far managed to resist all my efforts to change things. Does anyone have any ideas? If I can find some reasons for their behaviour it gives me more information with which to mount an attack.
[eh]
I would suggest you find 3 local strata managers and ask one of them if you can get a copy of the rules etc. The regulations may give you something that will allow you to find out what is happening. Also find out how much they charge and what they provide for that – Only tell one of them your problem, as you want biased and unbiased information.
It is difficult to know how you went about this, but sometimes a simple upfront in your face question at the next meeting will give you the ammo to prove someone is incompetent.
For example – “The sinking fund is quite healthy but the contributions to it increase each year. Why is that?”
Now the answer may be something to do with “inline with CPI”, but that can be checked, and if not in line with CPI you can bring it up at the next meeting or already know that information.
OR I have been in contact with several Strata Managers and their fees range from … to …. Can you please explain why your fees are so much higher.
THEN GO SILENT – leave it up to them to come up with the answer. AND whatever you do, do not give them the answer or an ‘out’ from the question. Too many times people say – “Is it because of such and such” and the other person jumps on it.
The point here is – if there are irregularities, then the other two owners will hear the answers themselves.
Just remember as an owner you have the right to ask these questions, so if anyone gets upset, take the moral high ground, but never get upset.
Also sounds like you are the new kid on the block, and If you try a side attack, as you have, they will look at you with suspicion.
Do your homework, and be upfront about wanting to understand. Most want to explain or help, and any disreputable people get quickly caught.
Regards
JohnInspired Finance
(02) 9944 7776Hi Pete
I noticed you are in great brittian, where is your property?
Find the relevant Gov’t legislation etc on strata’s and read them, get info on the managers responsibilities and your rights, how the councils work etc. In other words find out exactly what should be happening and how. – should be on the net somewhere.
You should have been given a copy of the Strata’s by-laws when you purchased the property – read this thoughly.
Go to meetings well informed.
Celeste
Thanks for the replies so far – there are a few points there to help.
My CF+ prop is in Oz and I have all the info on Strata plus an advisor who has run a body corp.As I said before my problem is trying to understand WHY the 2 owners side with the strata manager to maintain high fees and sinking fund. I have raised several points with them at the BC meetings regarding poor performance of strata manager, high fees and sinking fund but so far I’ve been out voted.
This may not be the right place but would anybody be interested in buying my UK property. I haven’t checked out the figures but I’m interested in selling it fully furnished so that I don’t have to transport everything back to Oz, and this may suit an investor.
Peter [wink]
Hi Pete
Have you had a quiet word with the other 2 owners or do the 2 you speak of own all the other 4 units.??
I am at a loss to why, all my properties at the moment are strata set ups, I could understand if they plan to do a major upgrade.
Maybe and this is just my suspicious mind, if they own the other properties, could they be getting other owners to increase the fund so eventually they get all the money to improve their own properties,
I guess they could if they owned all the properties.As far as I am aware you do not get the money you put in when you sell.
I would be contacting the relevant authorities to audit them, and check all is above board. If it bothers you that much.
Celeste
Note: This is just my suspicious mind, I have done the books for a few dodge operators.
Thanks for your feedback Celeste.
I now have the support of the other 2 owners (who are owner occupiers) so we will be able to out vote the 2 who side with the strata manager.Peter
In NSW there is legisaltion concerning sinking fund levies
http://www.dft.nsw.gov.au/realestaterenting/strata/sinkingfunds.html
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