As more Australians choose apartments and units as their homes, strata living has become increasingly common. With over 350,000 strata schemes housing around four million people, this lifestyle is growing rapidly, particularly as the country aims to build 1.2 million new homes in the next five years. However, misunderstandings about strata schemes abound, sometimes leading to costly mistakes. Let’s clarify some of the biggest myths about strata living.
1. You don’t need permission to renovate in your strata community
Renovating in a strata community differs significantly from owning a house. If your renovations impact shared property—such as walls, waterproofing, or external appearances—you’ll need formal approval. This may involve proposing changes at a general meeting and adhering to notice periods. It’s essential to plan ahead and understand the process. It is important that you check your Rules/By Laws before undertaking any lot improvements.
2. Strata residents constantly fight
The stereotype of constant disputes in strata communities is largely overstated. Most schemes operate smoothly, with conflicts being the exception rather than the rule. By educating yourself about how strata works and researching prospective buildings, you can avoid unnecessary challenges.
3. Strata rules can’t be changed once agreed upon
Strata rules/by-laws set out expectations for living in the community, covering everything from pets to property use. These rules are not permanent; Owners can propose changes, and with majority approval, can be amended to better suit the community’s needs.
4. Voting at meetings can only be done in person
Gone are the days when attending general meetings was the only way to vote. Electronic voting systems and proxy arrangements allow owners to have their say without being physically present, offering more flexibility for busy or distant owners. SSKB Lot Owners in QLD can also vote via the SSKB strata app.
5. “Strata” covers everything related to a strata scheme
Many people use the term “strata” to describe everything related to this type of property. In reality, strata involves multiple components:
- The owners corporation or body corporate is the legal entity comprising all property owners.
- The strata committee is a small group of elected owners managing day-to-day decisions.
- Strata managers are professionals hired to handle operations and administration.
Recognising these roles ensures you understand how decisions are made and who is responsible for what.
6. Tenants have no role to play
Tenants in strata communities aren’t completely excluded from decision-making. In some cases, such as in NSW, tenants can appoint representatives to attend committee meetings or participate in specific projects. Their involvement can foster a more inclusive community.
7. Levies come at a ‘standard’ cost
Strata levies, the regular payments for building maintenance and amenities, vary depending on the property. Complexes with pools or gyms naturally have higher levies, while smaller, simpler buildings often cost less. Unexpected expenses, like storm damage, can also lead to special levies, so it’s crucial to budget accordingly.
8. Strata levies go straight to the strata manager
A common myth is that strata levies go directly to the strata manager. This is incorrect. Strata levies are paid into either a trust account or bank account (depending on the State) of the owners corporation or body corporate, which is used to cover shared expenses such as maintenance, insurance, and utilities. The strata manager is simply appointed to administer these funds on behalf of the owners corporation/body corporate and ensure financial transparency. The levies are not a payment to the manager but are allocated for the benefit of the property and its residents.
9. Strata covers only apartments and units
While strata is often associated with high-rise living, it also applies to townhouses, duplexes, and properties with shared facilities like driveways. Some small-scale developments operate under strata rules, where collaboration between fewer owners can sometimes present unique challenges.
10. Cheap levies always benefit the community
While low levies can seem appealing, they might indicate that a building isn’t putting aside enough for future repairs or maintenance. Well-maintained buildings typically have levies that reflect their needs, ensuring a solid financial footing for unexpected costs.
Strata living offers diverse housing options for Australians, but understanding its intricacies is essential. By debunking common myths and approaching strata with the right knowledge, you can enjoy the benefits of this increasingly popular lifestyle while avoiding potential pitfalls.
11. Strata managers make decisions on how the property is run
Strata managers often face the misconception that they have decision-making authority over how a strata property is managed. In reality, strata managers act as professional administrators who assist the owners corporation or body corporate in implementing decisions made collectively by its members. The ultimate authority lies with the owners corporation, comprising all lot owners, or the elected strata committee, which represents the collective interests of the owners.
Key responsibilities of strata managers include ensuring compliance, managing financial records, maintaining insurance, and coordinating meetings. However, decisions regarding budgets, rules/by-laws, and major projects are made democratically by the owners, often through voting at meetings. This system ensures that the collective interests of the lot owners govern the property, not the strata manager’s personal preferences. In cases where disputes arise, members have the option to escalate concerns through appropriate legal or regulatory channels.well-prepared community for the year ahead. balance their private property interests with community obligations, contributing to the shared upkeep of the property while managing their investment.