Understanding Your Obligations When Renovating a Strata Unit
Having an experienced Property Manager is critical when thinking about carrying out works to your strata property. Ascertaining the level of works and what class the works fall into is crucial and could save you a lot of money and headaches.
Under the current Strata legislation (The Strata Schemes Management Act 2015), renovations are classified under 3 different categories:-
COSMETIC WORK: Cosmetic work includes, but is not limited to:
installing or replacing hooks, nails or screws for hanging paintings and other things on walls
installing or replacing handrails
painting
filling minor holes and cracks in internal walls
laying carpet
installing or replacing built-in wardrobes
installing or replacing internal blinds and curtains
any other work prescribed by the regulations for the purposes of this subsection
any other work to the interior of the unit which is superficial in nature would also be classified as cosmetic work
MINOR RENOVATIONS: Minor renovations include, but are not limited to:
renovating a kitchen
changing recessed light fittings
installing or replacing wood or other hard floors
installing or replacing wiring or cabling or power or access points
work involving reconfiguring walls
removing carpet or other soft floor coverings to expose underlying wooden or other hard floors
installing a rainwater tank
installing a clothesline
installing a reverse cycle split system air conditioner
installing double or triple glazed windows
installing a heat pump
installing ceiling insulation
any other work prescribed by the regulations for the purposes of this subsection. These works would not be considered a minor renovation if it involves structural changes, changes to the external appearance of a lot or waterproofing.
MAJOR RENOVATIONS: Major renovations are not specifically defined and therefore works which do not fall within the categories of minor or cosmetic renovations are deemed major renovations. Some examples would include renovating a bathroom which affects waterproofing or changes to the external appearance of the lot such as awnings and window blinds.
TYPES OF APPROVALS REQUIRED:
COSMETIC WORK: No approval is required for works of this nature
MINOR RENOVATIONS: Approval is required from the Owners Corporation for works of this nature. A motion granting approval is typically passed at a General Meeting, however the motion can be passed at a Strata Committee meeting if the Owners Corporation have previously passed a by-law delegating authority to the Strata Committee to approve “Minor Works”
MAJOR RENOVATIONS: This is where it can become quite complex, time consuming and be the cause of much undue stress on an inexperienced property manager or owner. Section 108 of the Strata Schemes Management Act requires that a common property rights By-Law be registered before an owner can undertake major renovations. The principal reason for this is to ensure that responsibility for the future maintenance and repair of the works and the common property affected by the works passes to the lot owner. The By-Law comes at an expense to the owner also.
The By-Law also places conditions on the works being completed, such as obtaining consent from local Council, where applicable, use of suitably qualified tradespeople to undertake the works and for the works to be completed as per approvals.
A special resolution at a General Meeting is required for a by-law granting approval for major renovations. This means that no more than 25% of the lots entitled to vote, vote against the resolution.
If the motion is to go on the agenda for an upcoming meeting then no additional fee will be payable. However, if you require the motion to be approved before the next scheduled meeting then an EGM can be convened – note a fee is payable for additional meetings.
The Owners Corporation has the right to request rectification if an owner undertakes works without approval or not in accordance with the approved plans.
Don’t risk having your investment renovated by an inexperienced property manager. It could lead to delays and expenses that can be avoided.
As a dedicated property management team, we have a deep understanding of all aspects of managing your investment property.
We understand that being a landlord can be a challenging and time-consuming task, especially when you have other responsibilities and commitments. That's why we offer a Project Management service ensuring we are here to take the stress out of it for you.
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