The Coronavirus – COVID-19 and Its Effects on Strata Corporations in South Australia and Australia.

Stratarama The Coronavirus – COVID-19 and Its Effects on Strata Corporations in South Australia and Australia.

Stratarama was a finalist in the SCA SA 2020 Small strata management business award

Tony Johnson won the SCA SA Essay 2020 award recognising an insightful essay surrounding a matter of topical interest to the Strata sector. This particular essay was on the effects of Covid-19 on the strata industry and Owner. This is the second time Tony has won this award, backing up his 2018 essay on communication and education of and for Strata and community owners.

COVID-19 has turned the entire world upside down. The one bright side is the ability to connect and share through the wonders of technology. Strata Corporations (or equivalent) in South Australia and around the Nation have had their own set of issues around the Covid pandemic.

Australian health organisations such as SA Health have provided as much guidance as possible around these complex pandemic issues whilst governing bodies such as the SCA have sought to provide much support and information around manoeuvring in this strange new world. 

As with most industries, Strata Management Companies have needed to quickly adapt to continue assisting their clients, but above all to ensure safety for Clients and Staff. With teams working from home, and many Strata Corporations unable to physically meet in person for their Annual General meetings, Companies have rapidly piloted new platforms for telephone and video conferencing. This has ensured groups continue to meet their requirements under the Strata Titles Act 1988 / Community Titles Act 1996 and relevant Acts Interstate, continuing to make decisions that are vital to the Corporations ongoing maintenance, costs and safety.

For some, this technological change has been welcomed and many will continue to utilise it for years to come. Members can choose to attend meetings from the comfort of their home, benefitting those who are interstate or have some distance impeding attendance. Even Members who do not have a smartphone, tablet or laptop, have been encouraged to join meetings through a phone call. This technology has allowed many groups to continue holding Annual Meetings in the set timeframes, make essential short-term decisions, managing finances and budgets, and set required insurance levels. The Strata industry may even see a reduction of Proxy voting as Owners gravitate towards remote attendance.

Communication has always been the building block of any successful Corporation with or without management. Since the introduction of reduced public gatherings and travel, undoubtedly Managers have been affected by increased telephone contact and emails. With some Owners now home permanently and perhaps unemployed, they have had greater personal opportunity to consider their Strata needs and works.  This increased interest may increase a Managers workload but should set the group for better engagement into the future.

Repairs and Maintenance

Due to COVID-19, protocols have changed, are regularly adapted and imposed differently around the Nation. For this reason, some maintenance and repair works have been halted by individual Corporations. Many works however cannot be stopped as emergencies and urgent situations arise daily. Contractors are now being engaged more so on these urgent repairs rather than on upgrades or long-term maintenance that can be postponed. This is partially due to the funding issues of some Strata Members and the continued uncertainty around the economic impacts of the virus.

Some routine items are also required to continue to ensure safety. Some examples include lift maintenance, fire safety inspections, intercom/Gate maintenance, security doors and exit lighting and air-conditioner maintenance.

Contractors who are still being engaged themselves have a new set of precautions to follow. Safety is the priority and so Contractors must ensure they do not work if unwell, maintain social distancing, clean areas well when working on-site and adhere to all other government regulations around COVID19.

Residents – Safety and Cleaning

Now more than ever, and particularly in Buildings with shared facilities and spaces, everyone is being asked to consider the safety of others. Group Members have been encouraged to consider wearing masks, increase the regularity of cleaning, provide hand sanitiser in common areas and disinfect frequently. As mandated across the country, owners should stay inside their unit if unwell and be tested if necessary. Committees should increase the cleaning regiment for high traffic areas or frequently touched objects, such as door handles, in terms of both frequency and coverage.

With the Corona pandemic and people staying at home to reduce the spread, creating awareness about how the virus spreads has been a key element to keep people safe. Some element that Residents have needed to consider include:

• Avoiding the use of common areas or shared facilities, as these are areas highly susceptible to germs and viruses
• When using the laundry, washing hands before and after using the facility. Ensuring the use of detergent and hot water washing and using the dryer. Remembering, to maintain social distancing
• Arranging for parcel deliveries to be left at the front door of the apartment – or the lobby area, where necessary. Using gloves to take receipt of packages and disposing of the packaging immediately. When signing, using their own pen.
• Remembering to stay up to date with information from the Australian Government, SA Health and following all restrictions around what facilities people should and shouldn’t be using. 

The future of Body Corporate Developments

As people isolate at home under direction of our various Governments, Developers will be considering the impacts on future developments. Strong considerations will need to be made around design of communal spaces, outdoor areas, more private subsidiaries and accommodations for social distancing. The impact of the pandemic on real estate developments won’t be known in the short term but could have lasting long terms impacts on design and management.

Final Words

The Covid19 virus has impacted how the strata industry and individual Corporations/Committees operate both in the short and long term. Residents and building support have had to work together to ensure that they stay virus free and to provide for ongoing maintenance works despite economic issues effecting many Corporation Members.

As Managers (and Community Members), we anxiously await further changes and developments of concern, such as the Towers which were locked down in Victoria and how we can prevent or limit exposure and safety risks for our Body Corporate Members in the future.

We are all in this together. It is Your Community.

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How do I contact Strata management?

Stratarama How do I contact Strata management?

In some instances, a Strata or Community titled group of units may actually be self-managed (being run by the Corporation Members, without any employed Body Corporate Manager. In these instances, the Members are managing the property themselves, so all contact would need to be made to the Corporations Presiding Officer, Secretary or Committee. Where a Strata Corporation or Community Title Corporation has engaged a Manager it would be expected that an Owner would contact that Manager directly through one of the various Strata Management Companies based here in Adelaide, South Australia.

If you know who the Managers are, reach out to them on whatever platforms they have available to you. These communication platforms may include, telephone, attending their office, email or even an online portal provided by several strata management SA companies. In the event that you do not know who your Manager is, you could also speak with the Corporation Secretary or Corporation Presiding Officer to get these details. If you do not know who the current Owners/ Presiding Officer or Committee Members are, you could give it an old fashioned door knock of some of the units in your group (of course several of these units may be tenanted, but even then, their Owners or Property Managers will likely have some contact information for the Strata Management.

When you purchase into a Strata or Community Corporation, the Conveyancers handling your settlement should pass on your basic new Owner information to the current Managers (who prior to sale, were hopefully asked to provide search documents with a raft of information about your property so that you can make an informed decision about the purchase). This information will allow the Managers to reach out and welcome you to the complex, providing you with all their contact information. If you did receive a set of search documents at purchase, flick through the documents provided, amongst them should be some minutes of the last two meetings, which will note the current Managers.

If you are still unsure who your Management Company is, after exhausting these avenues, you may simply need to start contacting the local SA Strata management companies to see if this unit group is a part of their portfolio. Not all Strata management Companies are members of the SCA (Strata Community Association) however many are paid Members who conform to the SCA Member requirements of ongoing training, industry support and code of conduct. As such starting your search for your current Managers details and obtaining their contact information, would be best commenced by searching for through the South Australian members of the SCA and hopefully, this Strata management directory assists your search.

If you find that the group does not have a Manager and that the legal responsibilities of the Corporation are not being met, then you may wish to consider obtaining a quote from Stratarama for management services, where we can discuss what we can provide for the group and where we specialise. Even if the group elects to continue self-managed, you will have commenced processes to highlight the requirements and responsibilities of the Strata or Community Members of your Corporation. Tony Johnson of Stratarama is always pleased to assist you with any queries on your rights and actions needed, even if you are not managed by us.

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What is the difference between a Strata Manager and a Property Manager?

Stratarama What is the difference between a Strata Manager and a Property Manager?

In what ways does a Strata Manager differ from a Property Manager?  In each State of Australia, the services provided or required by management differ in accordance with the individual legislation. We will concentrate on South Australia.

To begin with, a Strata Manager is appointed not by one Owner but rather is engaged by a Strata Corporation (a group of unit/ lot owners in a Strata complex). These combined Owners are responsible for common property and the collective of the complex. The common property needs will vary from property to property (Strata complexes may consist of units, apartments, townhouses, homettes and other forms of multi-property dwellings).

The collective of Owners is responsible for matters such as common lighting, common plumbing, common water, common maintenance to driveway, roofs, fences and other maintenance which is common to all Owners and not for the exclusive use of any one unit. The Owners may well consist of some investment Owners who could potentially employ a Property Manager directly, however, that Property Manager would be responsible only to that Owner and not the collective of Strata Owners.  Their role as a Property manager may include tasks such as rent control, property leasing, internal maintenance on items that belong and are used solely by the property individually, and much more.

Strata Manager in South Australia is engaged by the Strata Corporation (all Owners).

Vs

Property Manager in SA is engaged by an Individual Property Owner (i.e one unit or home)

The Strata Manager for the group not only makes sure that the group is running in accordance with the Corporation’s legal responsibilities such as Annual General meetings, collective insurance policies, maintenance and more but also are utilised as a mediator between residents, Owners and even Property Managers. You will find in our other articles many further details about a Strata Managers role.

A Property Manager is often called upon to ensure that the Tenant complies with their Tenancy agreement, and complies with the Residential Tenancy Act.

A Strata Manager is called upon by the group to ensure all Owners and members comply with the Strata Titles Act, Articles of the Corporation and any policies or house rules created (and/ or amended) by the Members.

Whilst it is easy for someone to say “Isn’t it your job?” or “what do I pay you for”, the reality is, it very well may not be their job. If you own a Strata unit (or even a Community Title unit), it is in your best interest to familiarise yourself with what Property Managers and Strata Managers responsibilities are and who they are working for. The differences are quite clear from our notes above and if you are an investment owner, you may well have a need/ or be part of engaging both types of Managers.

As an Owner, there is no requirement to have either a Strata or Property Manager. The group may or may not collectively engage a Strata Manager and if they don’t, the group will be responsible for all the requirements under the Strata Titles Act that we mentioned earlier.

There may be some overlap in the roles, and good Property Managers and Strata Managers who understand clearly their own roles and responsibilities will go a long way to ensuring all your needs are met.

It is easy to see why there can be some confusion by Owners with respect to the differences, but we hope we have gone some way to explaining some of the main points. If you are not sure, reach out to us for further information or guidance. At the end of the day, each Manager is a specialist in their own field and despite the similarities, the differences are also stark.

You wouldn’t hire a Lawn Contractor to cut your hair, even though they both use blades to trim growth.

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