The Summit apartment problems (Sydney)

Hi,

Property Investing website is a treasure chest that has been very beneficial to us in our property investment. This is why I'm saddened that I am writing about a problem and hoping that some legal minds or current tenants or owners of The Summit apartments on this forum can assist. 

When we first bought this apartment we were very happy, no issues at all. There was a little friction with the building management where they wanted us to pay rather large deposits for simple things. I didn't object to that, but what I didn't like is that they wanted cash, and were not giving our receipts. However we made money order to the strata and gave them that. Needles to say they were not happy. 

Living here nearly a year, and we have had no problems because every time when building manager tried to intimidate me I could and did tell him off. He uses bylaws to bully tenants and uses threats that the penalty is $500 for breach of bylaws and they must be paid to building management in cash. If he doesn't like you he will make it very difficult to live there. 

We have made friends with quiet a few neighbors, both owners and tenants and they all have problems with the management. This is just some of the stories that I have heard and witnessed here:

1. Cancelation of keys for tenants they don't like (mainly occupants of Asian descent who don't have a good grasp of English). Walking past the reception I overheard them on numerous occasions bullying. 

2. Building manager targeting certain tenants to inspect apartments for overcrowding or other illegal activities. This info I got from a friend that owns a unit in the building and it happened to her tenants. Building manager would just storm into the apartment and start taking pictures of how many beds are in the unit. One tenant was so scared and didn't know what was happening that she fainted and ambulance had to be called. Her English was not good and she didn't want any "problems". Building manager after that never again caused her any problems. 

3. Building manager employed assistant manager so that he can work more on his other businesses.

4. Building manager is also an owner, on the strata committee and works as a building manager. He also does all repairs and charges to his own business.

5. Building manager works for a real estate agent that hold majority of proxies. This same real estate agent has her son and another of her colleagues on the committee. 

6. They control the whole building. They recently passed a bylaw where any other real estate agent has to provide all details of who they showing the apartment to and only have short allocated time slot. I found out this when I contacted an outside agent that was selling a unit in the building.

7. As you can see there is so much conflicting interests here that everything is controlled by real estate agent. There was one person on the committee that started questioning what they are doing and how they are doing things. Well, on the next meeting that person was replaced. Again, majority of proxies won. 

8. There was one person that objected to them and wanted to challenge them through Fair Trading, but they were not able to do anything as more people were required to make complaints to warrant any significant investigations by them. That person sold the apartment after 1 year as they had no money to continue fighting further.

9. A year ago a shop was doing renovation on ground floor and ventilation system to the pool was damaged. The pool is still closed and can't be used. On the next strata meeting they propose that they stop any legal action against the shop and just repair the pool. After talking with shop owners I found out that it was not their fault, but the fault of the building manager. He approved all the renovation without doing proper checks. The building manager has no licenses or qualifications in building works. He also didn't consult anyone about the works to see if they have been done correctly. This is why they want to pass a resolution that no further legal action will be taken against the said shop and they will be using strata funds to fix the pool. 

10. Four tenants that I met so far told me when they were moving in they had to pay deposits of $150-$200 for use of the lift. They didn't get receipts for their money as they believed after few hours they would just go and collect it. However, the building manager said that they never got the money and asked for a receipt as proof. When the tenants (young students and an elderly lady) complained, suddenly their access keys stopped working over the next few weeks. 

The list goes on and on…

It is obvious that there is huge conflict of interest, however anyone that tried to challenge this had their life made into living hell, fair trading was useless and real estate agent holds majority of proxies. The reason they have majority of proxies is that the real estate agent looks after the apartments and most owners are overseas. When we first bought an apartment they tried to get our proxy too, promising that they will keep strata levies low. 

So, I ask what can be done against something like this when government body that looks after matters like this has no power to do anything about it??? It is the duty of the owners to take responsibility for their votes at strata meetings and to be aware of the situation at the building as ultimately they and the tenants will benefit form it in lowers strata fees, facilities that are actually working and friendly, helpful and cooperative building management that is there to service the tenants and not their own pockets. Please be careful to whom you give your proxy vote and be aware how they will vote and how it will affect you as the owner/tenant.

Also, I ask if there are any other owners or tenants in this building that have problems with building management? If you are reading this please reply to this post or send me a message at [email protected].

I still haven't met one person in the lobby or the lift that had a nice thing to say about building management and/or the real estate agent.

Thanks,

The summit apartment news