Cracking down on parking, new contractual laws, committee bans and much, much more… did you know there are close to 100 new strata laws that have just been passed in New South Wales and are apparently being considered to potentially introduce into Queensland too? Let’s take a look at what the world will be like if these changes are introduced: 

1.     PARKING NO LONGER A FINE LINE

Owners corporations will now have the ability to reach agreements with local councils in order to let parking officers into their schemes to issue fines to rogue parkers.

The ins and outs

Welcome to one of the biggest topics of debate when it comes to strata – parking! Under the new scheme, owners corps will be able to make their own arrangements with council parking wardens to patrol their car parks. Prior to this new rule, it was very difficult to police inconsiderate and opportunist drivers who parked their vehicles in private zoning so it is two massive thumbs up for this new change. The downside… residents are not immune. Meaning, they too can receive a ticket for leaving their car parked over parking lines and onto common property or in visitor parking (even if just for a few minutes).

2.     COMMITTEE VETO

Building managers, strata managers, caretakers and rental agents will no longer be allowed to serve on strata committees in which they operate - unless they are also owners.

The ins and outs

Previously it has been way too easy for those with a vested interest to take charge of a strata committee and consequently run the building to suit their businesses. How? A combination of proxy votes and privileged access to resident owners as well as the addresses of absentee investors. Thanks to the new rule, this will be a thing of the past.

3.     LIMITED STRATA CONTRACTS

During the first year of a building’s life, strata manager contracts are set to be limited to one year - and three years thereafter.

The ins and outs

All contracts set up by developers of new schemes have to be approved by the owners at the first Annual General Meeting (AGM). The newly revised contract of initially one-year gives strata managers plenty of time to prove themselves to the committee. If the relationship isn’t working out, it is now much easier for owners corps to change strata managers, thanks to the subsequent three-year contracts.

4.     DIY HAS HIT THE NAIL ON THE HEAD

Cosmetic changes will now be allowed and minor alterations will only require committee approval.

The ins and outs

This new rule has been a long time coming for many DIY enthusiasts. After all, strict interpretation of the current strata laws could see you breached for hammering a nail into a common property wall. Thanks to the new rules, it means that simple cosmetic changes, such as hanging hooks or pictures, and filling cracks in the walls can go ahead. Meanwhile minor alterations, including kitchen or bathroom renovations, installing timber or tile floors and replacing wiring or power points no longer need a special resolution by-law. However, this does not mean you can to get too hammer-happy as there are still laws in place that allow owners corps to charge owners for damage caused to common property as a result of their work.

5.     ALL IS FINE

Fines for breaching by-laws are now set to be paid to the owners corporation, as opposed to state revenue, which was previously the case.

The ins and outs

In the past there has been no incentive for strata committees and owners to pursue a breach in by-laws. Typically following up a violation came at the cost of their own time and money – all fines that would have offset the cost just disappear into state revenue. One might ask, what is the point in that? Now, thanks to the new law, this is no longer the case. In the future, fines will go mostly to the owners corp. And everything still has to go through the same tribunal process as well, which eradicates any concern that some over-zealous committees may find this an opportunity to cash in.  

Find out if these changes apply to your property in your location - speak to your Strata Manager today.

There you have it; five of the new strata laws. Stay tuned for another five next week. In the meantime, if you have any questions about investing in the CBD (strata or not) please call Hannah from HS Brisbane Property on 0419 782 133.