SCA Inside Strata March 2017

MARCH 2017

THE 2017 SCA

National Convention

BETTER TOGETHER | 14 - 16 JUNE | HUNTER VALLEY, NSW PAGE 20

A glimpse of the future: electricity and gas utilities for strata communities Building an entrepreneurial enterprise: seven pillars of success The biggest challenges facing the strata industry in 2017

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PAGE 24

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President’s Report

2017 will see the implementation of many long planned changes Welcome to the first edition of Inside Strata for 2017. As we commence the start of a new year, we take the opportunity to plan our way forward. But before we look ahead, let’s look back at all we’ve accomplished together as an organisation.

Erik Adriaanse FCPA President Strata Community Association

After a Special General Meeting on 15 March, with the state and chapter Presidents; SCA has re-branded to ‘Strata Community Association’. Our new brand name encompasses both Australia and New Zealand, while highlighting our purpose of being a membership association.

In 2016, our members experienced a monumental change for Strata Community Association, as we transitioned to the new membership pricing structure. A common question we’ve been asked is ‘how does this change in membership structure benefit me?’ It’s a good question…

Previously, strata management companies paid one annual corporate membership, then additional individual memberships for its key contacts.

I’m pleased to report that corporate membership for strata management companies now encompasses all current employees. This has greatly improved our services, as all staff now have the opportunity to take advantage of our member services. These include: •• The recently-launched Cert IV in Strata Community Management •• Educational meetings •• Advocacy

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•• •• •• ••

Professional standards Networking events Accreditation Member resources

In 2016 our membership expanded across the Tasman Sea to New Zealand, when Strata Community Association (NZ) was born. Rome wasn’t built in a day, but due to the people behind the scenes and their strength, guidance and passion, our association was formed. We showcased the benefits of belonging to Strata Community Association (NZ) at its launch event on 16 February 2017.

We welcomed a diverse group from the property sector including Body Corporate Managers, strata owners, suppliers and professionals in the real estate industry. You can read more about it in Joanne Baretto’s SCA (NZ) President report on page 42. More recently the launch of the NZ 100 (A100 equivalent) attracted a lot of media attention, and was a major step forward for strata members in New Zealand.

This year, our National Conference will be held 14–16 June at the Crowne Plaza, Hunter Valley. The theme is ‘better together’, because this presents a great opportunity for our community to come together – to learn and share stories,

successes and failures, challenges and triumphs. I encourage you all to come.

Within our unique workplaces, we share the same problems. Our conference aims to provide you with the tools in education, and the opportunity for you to reach out for support from talented peers and knowledgeable experts… perhaps over a glass or two of famous Hunter Valley Semillon and Shiraz. We have a sensational line-up of speakers and a social program you won’t want to miss.

Recently, the National Board resolved to defer the work to convert the four states to chapters and thereby unify our national brand. The view from the Board was that we concentrate on centralising some of the state functions first, and then refocus on unification.

Last week our National Council looked at our strategic direction. The group, comprising State Presidents and Vice Presidents, the National Board and the State General Managers, decided on a number of key priorities to be actioned over the next year.

NSW will be the next state to convert to the IVT system under the guidance of Greg Haywood, after a successful conversion in WA.

The group also resolved to standardise our branding to Strata Community Association, to enable the introduction of non-Australian chapters. This also meant dropping the state abbreviations and revising our branding standards.

We have also resolved to standardise sponsorships and bring about a minimum set of conditions.

In addition, we have decided to: •• Add a National Principals’ forum to the 2018 National Conference •• Introduce company accreditation •• A scheme to engage and entice young people into Stata Careers •• Vamp up our National Policy and Legislation Committee, and •• Review the Head Office structure to create functional lines, and clearly define communication pathways.

Every member of the group gave us valuable feedback on communication and our performance generally, and I extend my gratitude to them.

I look forward to reconnecting with many of you this year and to making some new acquaintances.

All the best for a wonderful 2017.

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Contents Reports

Chief Executive Officer Kim Henshaw P: 02 9492 8252 E: kim.henshaw@stratacommunity.org.au W: www.stratacommunity.org.au

16 ABN: 57 074 729 007 Contact: PO Box 824 Surfers Paradise QLD 4217 P: 1800 222 757 F: 1800 063 151 E: publications@crowtherblayne.com.au W: www.crowtherblayne.com.au

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A glimpse of the future: electricity and gas utilities for strata communities

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Your specialist strata insurance broker

14

Do we really have to share?

Or are we leaving the door open…

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Specialised services that your professional painters should offer

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2017 SCA National Convention: Hunter Valley

20

Building an entrepreneurial enterprise: seven pillars of success

22

The biggest challenges facing the strata industry in 2017

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Strata finance

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State Pages

Managing Editor: Trish Riley

Sales: Peter Bunn, Vivianne Reiss, Daniel Rutland

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CEO’s Report

Features

SCA National Office Level 1, Suites 101 & 102 845 Pacific Highway Chatswood, NSW 2067

Production Manager: Lynda Keys Advertising Coordinator: Yvonne Okseniuk

President’s Report

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New South Wales

29

Victoria

32

Queensland

34

Western Australia

36

South Australia

38

Australian Capital Territory

40

New Zealand

42

Membership SCA Committee Workshop

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SCA in the media

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Design Team: Andrew Crabb, Judith Terrill, Michelle Triana

Traineeships for the Certificate IV in Strata Community Management

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Social Pages

55

Printed By: Newstyle Printing

Events Calendar

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General Features

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Older building maintenance and safety requirements

44

How to develop your unique selling package

50

How co-housing could make homes cheaper and greener

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Fixit: resolving issue communication break downs

66

A provision guide to small and large strata schemes

67

National partners

Education

Business supporters

MARCH 2017

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Window Safety Compliance for Strata Communities • Risk Management Reporting • Tailored Compliance Solutions • Supply & Installation of Safety Devices • Certification & Record Management • Annual Compliance Re-Inspections • Education & Awareness

02 9785 7893 strata@asqbwindowsafety.com.au

www.asqb.com.au

CEO’s Report

Strata managers and their committees

Kim Henshaw Chief Executive Officer Strata Community Association

No matter what they’re called in different parts of Australia or the world for that matter, Strata Communities have a range of common issues to deal with.

There are the three “P’s” – pets, parking and parties. And of course there’s the ever-present problem of waste disposal.

But there’s one seemingly universal issue that doesn’t get the airing it deserves, and that’s the often fractious relationship between strata managers, lot owners and their committees. At SCA we see this all too often end up as a Code of Conduct complaint against a manager member and in many instances the cause of the problem is a misunderstanding of either strata legislation or each party’s role, or both.

SCA is committed to supporting people who live in, and work with, “communities of common interest.” One of the ways we believe we can do that is through education and training. We have already rolled out the SCA A100 “Introduction to Strata” course and, in conjunction with RMIT, the new Certificate IV in Strata Community Management. Both of those training packages are targeted at strata managers, although the A100 is also finding favour with service suppliers to the industry.

But what about owners and owners’ committees? Is it fair to expect them to understand a complex environment such as the strata world without some help?

SCA thinks not, and to address this we will be releasing an online course shortly that has been specifically developed to help owners and their committees navigate what sometimes seems like the tangled web of community living.

The “Committee Workshop” is an online workshop that committees and owners can complete in their own time and will equip them with a greater knowledge of the communities in which they live.

Keep your eyes open for the release of the Committee Workshop in the coming month or so – we’re sure it’ll be of great help to everyone who lives in, or works with, strata communities.

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Savant Capital

A glimpse of the future: electricity and gas utilities for strata communities Up until recent times, utility such as electricity and gas in strata buildings has not been a major area of attention for owners corporations or managers. Over the last five years, we have seen an explosion in the cost of providing these utilities. This trend is set to continue into the future, with residential electricity prices expected to jump by another 10 per cent in July this year. There is now a clear demand from owners and tenants in strata communities to minimise these costs as much as possible, and the management of these key utilities are now viewed as a key role of the strata manager.

Richard Mintz, Director, Savant Capital

Historically energy (gas and hot water in particular) costs in strata buildings have been relatively small, and have simply been included in the overall Strata fees paid by owners.

With ongoing pressure on strata fees, as well as these price increases, strata managers must implement best practice solutions to reduce these fees. One clear way of reducing these fees is to implement a User Pays System for these utility services.

This is particularly attractive for those apartments that are rented out by the owner, as a User Pays System defers liability for certain costs to the tenant. By reducing the strata fees, return for investors are increased. It also reduces disputes that occur when utility costs are included in strata fees on an allocation basis rather than on actual consumption.

Renewable energy and storage A common question asked by owners and managers in strata corporations is “what role can renewable energy and storage play in reducing overall cost.� The greatest challenge that is faced by multitenant facilities in order to utilise these new technologies is available space. As a general rule, strata communities are faced with limited space for solar panels to be installed on building roofs. Although in almost all instances we would advocate that owner’s corporation should install a solar power system in order to offset common area electricity costs, our experience is that given the limited amount of space available, the impact that the installation of solar power has been minimal.

Battery storage is currently very topical and we are often asked about its applicability for energy cost reduction. At current pricing for battery storage, the installation of batteries in order to reduce electricity costs is unviable. We expect to see significant reductions in the cost of battery storage over the next five years, which will hopefully follow the path of solar power. Solar PV has reduced in cost by almost 80 per cent over the last seven years and the economic argument for the installation of solar panels is very strong in almost all instances. Again however, battery storage requires a significant amount of space.

In a recent discussion with Richard Turner, founder of Zen Energy Systems (a specialist in large scale energy storage) we spoke about the economics of battery storage. For an apartment

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building of 100 apartments and common areas, installing batteries that can store 1000kwh of electricity would give the building 2 to 3 hours of backup electricity. The cost of installing these batteries is in the order of $800,000 to $1,000,000.

Therefore storage costs between $800 and $1,000 per kWh of storage. When you understand that to purchase one kWh of electricity through the grid may cost you 30 cents, you quickly understand that there is a long way to go until battery storage becomes economically viable. Turner expects that batteries prices will reduce by about 20 per cent year-on-year for the next five years.

Energy efficient building designing construction Although there has been a significant improvement in this area with the advent of the NABERS energy rating system, we have not seen a significant shift by developers to integrate renewable energy and onsite generation. The concept of buildingintegrated photovoltaics power (BIPV) has been around for almost 10 years, however, we are yet to see a significant project in Australia that utilises this technology. An example of this may be using windows on buildings that are also solar PV modules. There is general reluctance of developers, as well as organisations that provide replacement hot water services through an Embedded Hot Water Network in apartment buildings to utilise this technology.

So what can be done to provide these utility services to the strata buildings of the future at the lowest cost possible?

Cost minimisation Although this sounds very simple, we find that in most instances owner corporations are paying too much for the common area power. This is a combination of two main factors: 1. A lack of understanding of the complex areas of network tariffs.

2. Strata managers not placing enough emphasis upon smart energy buying.

Energy has become a very complex area, and it is generally beyond the technical knowledge and capabilities of strata managers. Numerous opportunities exist to minimise energy costs, the simplest being that the supply charges (the cost of the electricity consumed) is minimised.

User pays system It is self evident that a system that allows for tenants in apartment buildings to only be billed for the utility services they use is the best practice model. This is particularly applicable for buildings where there is centralised hot water plant. These plants are generally gas-fired, and with the price of gas almost doubling in the Australia in the last three years, these costs are now becoming significant.

Experience in energy management Unless you have not read a paper in Australia in the last twelve months, you would be aware that energy costs and the regulation of energy are major areas of political focus.

As a result of this, government regulation and compliance obligations for embedded network operators in apartment building are increasing. For example, from 1 December 2017, the ability of customers who purchase their electricity within an Embedded Power Network to purchase their power from another retailer will be significantly simplified and it will be almost as easy for an apartment building tenant to change the retailer as it is for any normal suburban home. In addition, the Australian energy regulator is now strongly enforcing the

compliance obligations upon embedded network operators with fines of up to $25,000 being issued by the regulator for breaches of the energy law. It is for this reason that we believe strata corporations that are managing their own embedded networks are exposing themselves to a significant risk, not only in terms of compliance obligations, but also in terms of the ability of customers to access other retail offerings as well as the credit risk association with defaults by people that are buying their power through the network.

From 1 December 2017, any building that does operate an Embedded Power Network will be required by the regulator to appoint an embedded network manager whose role will be to facilitate the transfer of electricity supply agreements to providers other than the operator of the Embedded Network.

It is our view that these regulations will make it extremely difficult for body corporate to manage their own electricity requirements. The purpose of this regulatory change is to ensure that people that are purchasing their electricity through an Embedded Power Network at the same freedom of choice of retailer as anyone who has a direct connection to the electricity distribution network.

It is clear that this is a complex area that must be competently managed. Embedded Networks are an excellent opportunity to reduce overall energy costs, however this does come with risks that need to be understood.

Continuity of supply There is no doubt that the national electricity market is failing and that the haphazard implementation of renewable energy projects in Australia has significantly destabilised the grid and reduced the reliability of supply. It is often said that South Australia was “the canary in the coal mine,� and given the experiences in the South Australian electricity market over the last six months, the rest of the country should be very concerned about the ongoing reliability of electricity supply.

Given our position as a licensed electricity retailer, as well as the experience gained through our energy advisory arm, Savant Energy Advisory, we are firmly of the opinion that the problem with respect to reliability will continue to escalate and that blackouts during periods of high electricity demand (i.e. extremely hot weather) will reduce.

The risk for strata buildings, especially high-rise buildings is that these regular power outages can present health and safety issues such as the use of elevators, lights, security and fire systems. As I previously discussed, I do not believe that battery storage of electricity is an economically viable option for strata buildings, which leaves the only option available as being a gas or diesel powered generator on site that will take over when the electricity supply fails. This will of course, have significantly cost implications for body corporates, and it will be up to them to determine whether this is an expense that they are willing to incur in order to increase the reliability of their electricity supply.

The cost and reliability of energy will remain a significant issue for strata corporations for the medium term, with the easiest and quickest options being to ensure that costs are minimised and the implementation of user pays billing systems.

Renewable energy and storage have limited application at this stage, however in five years time the landscape is expected to be vastly different. The issues around continuity of supply will get worse before they get better, and it will be up to each strata corporation to determine if they are willing to invest in this area.

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• BCB is a licensed General Insurance broker with a strict fiduciary obligation to act in the best interests of policy holders. We have access to a wide range major specialist strata insurers and general insurers in Australia • BCB is owned by the Steadfast Group, the largest Broker network and the largest Underwriting Agency group in Australasia. Steadfast members place over 2 million insurance policies generating $5bn+ in premiums for insurers and consequently, BCB is able to access market leading products and services at the most competitive premiums for their clients.

• BCB offers a full and personal service of the highest level for strata schemes and their managing agents. BCB’s client portfolio includes some of the largest and most complex schemes in Australia (including BMC’s), smaller and less complex schemes, Community Associations and Company Title properties.

• BCB have successfully partnered with Strata Managers for over 20 years. We understand Strata and the role your Strata Manager plays in protecting your investment. We work closely with them to ensure the property is adequately Insured by recommending property valuations, obtaining commercial tenant occupation details etc. advising the Insurer of any proposed major capital works and advising on any unique features at the property that require special coverage such as machinery, heritage considerations, cover for jetties and the like. BCB provide ongoing training to strata managers to ensure they comply with ASIC guidelines with regard to operating as our Authorised Representatives to fulfill these duties

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Subdivided Property

Do we really have to share?

Or are we leaving the door open…

Large strata developments are cropping up everywhere and whilst strata is the flavour of the month we need to understand who owns what, what we can and can’t do in managing our buildings and how we all interact with each other. A recent Supreme Court case that we were successful in highlights the complexity in these developments.

The dispute involved a large high-rise building subdivided into what is known as a “stratum development” (BMC’s to the industry in NSW). These are basically large complexes divided into different strata plans and single stratum lots sitting on the land all intertwined together with a set of management documents governing how they are managed (so they are complex to understand and to manage). The complex is made up of residential, commercial and retail properties in a number of towers that take up a complete city block bounded by four streets.

One of the towers was divided into three distinct strata plans.

Two were residential and one commercial (still keeping up!!).

On one level of the building (owned by one strata plan) there were rights for occupiers and their guests to access the lifts by walking through the common property foyer of the strata plan.

Seems easy… well away we go…

The strata plan decided to do some work on its building manager’s office and surrounds (in this area). The owners in the other strata plan didn’t like these works and complained.

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They couldn’t agree and went to Court. The other strata plan wanted the works taken down and claimed the entire common property foyer was a ‘shared facility’ (something everyone in the building had a say in and not just the one strata plan).

Because it was a shared facility the works had to be approved by them and as they didn’t approve the work had to go…

The fight came down to who owned what and who had the rights over it and what were those rights.

Everyone agreed the common property belonged to our strata plan and that people could get to the lifts but the issue was, how far did the right of access extend. Did it extend over the entire floor space? Or did it just extend enough so the people could access the lifts.

The decision – This matter came down to a reading of all the management documents (folders!). The judge adopted a sensible reading of the management documents and found that the area was not a shared facility, and that the intent of the management documents was to prevent our strata from

interfering with the facilities that are actually used, such as that part designated as “foyer”, to gain access to the lifts, concierge desks, mail room facilities and other communal facilities. The court found that the construction of the works did not interfere in any way with access to the lobby and the mailroom.

Why is this important? This is a very important example of why in large developments managers, executives and owners need to be very careful in reading all of the documents that relate to your development and understanding them. Whilst living in strata can be pleasurable you must always be careful to understand what you can and can’t do, what you own and what you don’t otherwise it can be an expensive exercise to find out that a foyer is not a foyer … and you don’t have to share…

This article was kindly supplied by Colin Grace, Grace Lawyers

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Painting

Specialised services that your professional painters should offer As a strata manager, one of your primary roles is to find the best possible service providers for any property related projects. While this seems like a relatively simple task, the reality could potentially include hours of research to separate the wheat from the chaff. It’s pivotal to uncover the best possible option when it comes to contractors; such as professional painters, as the quality of their offerings can vary widely. While painting contractors that offer standard painting services are a great starting point if budget allows, it’s advisable to opt for those who offer specialised services.

Adrian Butcher, Business Relationship Manager, Higgins Coatings

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So which services should you look for?

You may think that the ideal painting service for you would be one that simply covers the requirement you are looking for.

However, establishing a working relationship with professional painters that cover a wide spectrum of services is only going to lead to a strong (and reliable) partnership down the line. Below are five specialised services to look out for: •• Painting maintenance solutions Apart from general painting solutions, arguably, the next most important service to look for in professional painters are painting maintenance solutions. Service providers that offer these solutions, often do so to ensure maximum protection of structures, leading to greater longevity. The customer benefit of this is that it allows you to save money that would otherwise be spent on frequent repainting.

•• In-depth colour consultations The effect a change of paint colour can have on a property is hugely underrated. Look for painting professionals who not only offer the standard services but aim to offer those that go above and beyond. There are some painting professionals that offer in-depth colour consultations based not only on the structure of the property, but its use too.

•• Consistent quality over different properties A sure sign of an exceptional professional painter is the delivery of consistent quality work, as well as competitive pricing. This should apply across other services conducted on the same property, along with all services rendered over multiple properties.

•• The added bonus of building services Professional painters that have a team of licensed builders on hand to carry out other tasks prior to repainting, such as minor structural repairs, will ensure that the finished product not only looks great, but the coating is applied to a sound surface.

•• The right access equipment for your properties Choosing professional painters with the right kind of access to your properties is essential. Especially if your property requires the use of an EWP (Elevated Work Platform), scaffolding, operated equipment or in some cases even abseilers. This will ensure that the job gets done, on time and up to standard.

Finding a painting maintenance contractor who ticks all these boxes (and more) can be challenging. Higgins Coatings is a preferred painting contractor for the SCA that has all the specialised services you could hope for.

For more information: call: 1300 HIGGINS visit: www.higgins.com.au

This article was kindly supplied by Higgins Coatings

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2017 SCA National Conference

JAMES MATHISON

FIONA MICHEL

Better Together

The 2017 SCA National Conference On 14-16 June over 400 thought leaders, academics, renowned speakers, frontline practice leaders, innovators and committed strata professionals will come together to share ideas, challenge each other and consider how to deliver new solutions to strata problems.

SAROO BRIERLEY

RACHAEL ROBERTSON

Attend the 2017 SCA National Conference to meet our community of leaders, pioneers and innovators. Access the educational tools of success and meet the right people to improve your organisation, so you can learn how you can connect with your clients in a whole new way.

James Mathison, former host of Channel Ten’s Australian Idol and three times ARIA Awards host, will keep you laughing as our extremely entertaining conference host. James is best known for his mix of pop culture knowledge, razor wit and laid back style.

Back to 2017 is the SCA Women in Strata panel. Join SCA National Board Director, Fiona Michel as she hosts an invigorating discussion between Australia’s top female leaders to explore their unique experiences and what’s top of mind for Australian businesses. Specialising in training and change management, Fiona is currently Chief of People and Capability at the Auckland District Health Board. You’ll discover some pearls of wisdom from her, a Harvard Business School alumni who was named the AHRI Dave Ulrich HR Leader in the 2013 AHRI awards.

In 1986, aged only 5, Saroo Brierley (Keynote) lost all contact with his family when he was waiting for his brother at a train station. After living on the streets of Calcutta for 3 weeks by himself, Saroo was placed in a local orphanage and went on to be adopted by an Australian family. Determined to rediscover his past, he embarked on a virtual odyssey of his homeland and, after many hours poring over Google Earth, he managed to recognise his home town – and track down his mother. His miraculous story became an international best-selling book and a Nicole Kidman film, Lion.

Rachael Robertson (CSP, MBA) is a former Antarctic expedition leader, Chief Ranger and leader with 20 years of ‘extreme’ leadership experience. As the second female to lead a team to Davis Station in Antarctica she managed a diverse group of 120 people, through total isolation, months of darkness, with no way in and no way out. It was a leadership laboratory in the

JUNE SCA NATIONAL CONFERENCE 14-16 June 2017 Hunter Valley MICHAEL MATUSIK

DR CATHY SHERRY

most extreme and hostile environment on Earth, where most of the theory doesn’t apply. You’ll feel challenged and equipped to take the next step in your leadership journey.

Michael Matusik (Keynote) is a leader in residential market analysis and urban investigations in Australia. He is one of Australia’s foremost property experts and is considered a thought leader in the Australian housing industry. A 30 year industry veteran, Michael provides a voice of reason as he bridges the gap between property spruik and reality.

Dr Cathy Sherry will discuss ‘does discrimination law apply to strata schemes?’ in her thought-provoking legal session.

Dr Sherry is an Associate Professor at the University of New South Wales’ Faculty of Law, and a leading Australian expert on strata and community title law. As a General Editor of the international property journal, Property Law Review, Cathy is the perfect strata expert to explore this session with you.

Social Snapshot 14 June

The SCA Charity Golf Day & The Welcome Cocktail Party Crowne Plaza Hunter Valley

15 June

The Gala Dinner Hope Estate

16 June

The Closing Cocktail Party Cypress Lakes

These are just a few of our sensational speakers, who are bound to entertain, educate and inspire you over the course of our conference held at the Crowne Plaza Hunter Valley.

Our social program will ensure you make the most of the Hunter Valley, while networking with your peers from Australia, New Zealand, USA and beyond.

Our gala dinner at the barrel-lined room of Hope Estate is an event not to be missed. Featuring a special rock performance

by Steve Balbi from Noiseworks, Paul Gray from Wa Wa Nee, Paul Christie from Mondo Rock, John Waller from Avion and Joel McDonald from Rose Tattoo – you’ll be sure to put your dancing shoes to use, as you enjoy fine wine, craft beer and a delicious feast.

If you want to break through the boundaries of what’s always been done, you can’t miss this event! We are better together, so bring your peers along.

Register today and save! w: www. stratacommunity.org.au e: convention@stratacommunity.org.au

2017 SCA NATIONAL CONFERENCE l 14 - 16 JUNE l CROWNE PLAZA HUNTER VALLEY

Business Development

Building an entrepreneurial enterprise: seven pillars of success Many small businesses start with a great idea and nothing to lose, but as they find success and grow, scale can be both an opportunity, and a hindrance.

As Macquarie’s Head of Business Banking, Dean Firth notes, “when you reach a point where you have something to lose, you often become a bit safe. You may become complacent about the way your market operates, and you may be encumbered by the environment you’re operating in.”

Adopting an entrepreneurial mindset is crucial in a fast paced economy, but it can be challenging to balance that mindset with the needs of a growing enterprise. Where we’ve seen our own clients succeed, it’s because they have managed to achieve that balance, and therefore are able to create an ‘entrepreneurial enterprise.'

Firth defines an entrepreneur as someone who 'puts their own capital at risk with the hope of a future return.' This is a mindset Macquarie understands instinctively. Having opened its doors, as a business comprised of just three people 45 years ago, today Macquarie has grown as a global business operating in 28 countries around the world.

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A delicate balance between agility and rigour Firth believes small business embodies the entrepreneurial mindset of Australia and the spirit of innovation. “To grow sustainably, you need to balance the things you’d like to be able to do as a larger business, with the things you already do very well,” he says.

Small businesses are agile and can achieve speed to market, but as you grow, the potential risk of those quick decisions can be greater – and this causes tension. It’s the pull between ownership and accountability and also operational efficiency. Between bold innovation and robust risk management, agility and scalability, an entrepreneurial enterprise needs to find an even keel.

Here are seven ways you can apply this thinking into your business.

1. BE PATIENT You need the foresight to persevere through short-term challenges for long-term gains. Keep an eye on the bigger picture, and stay true to your strategy. That may mean starting small and slowing down the pace.

2. GROW EXPERTISE BY BUILDING YOUR BUSINESS ORGANICALLY “When Macquarie provides small business owners with equity investment to grow into an adjacent market, we ensure they have expertise in that area first,” explains Firth. So if you’re considering growth in a new area, you may need to invest in specific expertise to avoid costly errors of judgment.

It’s worth spending time on careful, strategic, organic growth as it could have a lasting impact. “A simple idea that focuses on client needs may eventually become a much larger part of your business,” he adds.

What characterises a ‘high impact’ entrepreneur?

•• Market leading – look for growth through innovation •• Growth aspiration – interested in scale •• Flexible – can respond and evolve to changes in markets, and as their life-cycle changes •• Opportunistic – ready to seize new opportunities, stay on top of new technology and innovations •• Never stand alone – seek the right partnerships and advice. Hire industry experts and empower people.

World Economic Forum

3. BE DISCIPLINED WITH COST MANAGEMENT It’s essential to be rigorous with the financial details, especially in the early phase of any new business.

By keeping unnecessary costs to a minimum and always looking for the return on investment on any new outlay, you establish a framework for efficient, focused growth.

5. EMPOWER YOUR PEOPLE Research has found human capital is more valuable than physical capital, and it’s essential to invest in your people, empowering them to become more productive and engaged.

“At Macquarie, our leaders don’t try to pick the next big opportunity,” notes Firth. “We ask our staff to, because they’re closest to their clients.”

He says relationship knowledge is just as important as sector knowledge.

“Clients want to work with people who were there for the last transaction. So when you invest in your staff you’re investing in those relationships.”

4. HIRE INDUSTRY EXPERTS WHERE NEEDED

6. KEEP THE ESSENCE OF YOUR BUSINESS ALIVE

Firth says successful entrepreneurs are distinguished by their ability to actively seek out opinions that may contradict their own. “They understand they don’t have all the answers.” Be sure to partner with the best expertise you can find, or bring it in-house.

Don’t lose sight of the things that have made your business a success. What are the principles you live and work by? “Remember why you first backed yourself,” says Firth. “That’s how you can keep the entrepreneurial spark alive.”

7. STAY ON TOP OF NEW TECHNOLOGIES AND INNOVATIONS As we discussed previously, digital disruption is changing the game in just about every sector of the economy. It’s human nature to fear the unknown, but approaching this with a positive mindset can make all the difference.

Consider how technology makes new things possible – what could your business become? Firth suggests taking a step back and thinking about how you would do things differently if you were to start your business again today.

This article was kindly supplied by Macquarie Bank

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Industry Update

The biggest challenges facing the strata industry in 2017 To understand the burning issues facing the strata industry in 2017, Strata Community Insurance canvassed the opinions of strata managers across the country. Here, Paul Keating, Managing Director, Strata Community Insurance, offers his opinion on the top issues and concludes with an update and recommendations on managing the cost of insurance.

Paul Keating, Managing Director, Strata Community Insurance

Defects – not surprisingly, the top issue, as recent media have described the level of building defects is epidemic. This was a key topic at the educational forums that were held around the country last year and attended by over 300 strata managers.

Feedback indicated that defects are clearly the hottest topic that strata management is dealing with currently.

It’s a difficult, stressful and expensive path for owners to follow, and industry resources appear to be struggling to effectively deal with the volume of defects in buildings constructed over the last decade. Sadly, little effort has been directed to mitigate the problem of improving the certification process, both during and after a buildings development.

On a positive note, following a review on the Building Professionals Act in 2016, the NSW government is currently reviewing the existing regulations around the certification process. In addition, NSW will introduce a ‘2 per cent defects bond’ for developers, which is planned to start from 1 July 2017. Developers will be required to lodge a bond with NSW Fair Trading equal to two per cent of the contract price for residential and mixed use high rise strata buildings. The bond will provide funds to fix any defective work that has not been fixed within required timeframes.

In Victoria, the Victorian Building Authority (VBA) is investigating a growing number of complaints about leaky apartment buildings. The enquiry is to be completed in August 2017, and will determine whether there are systemic problems with building and plumbing work in existing buildings and buildings under construction. This is likely to lead to a review of certification regulations in New South Wales, and it's likely that all other states will consider a similar approach for their own jurisdiction.

Professionalism – there are so many factors that determine how the strata management industry is perceived, and now it has the attention of media, academics, government and its regulators. Being in the spotlight means there is a terrific opportunity to showcase the ‘unrecognised’ value that professional strata management brings.

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Though the strata sector is young and immature (compared to others), we can and should define ourselves by our professionalism. It’s an accurate term to use and at its best, the level of expertise, skill, regulation and industry codes are, in many ways, world-class. What holds us back is how we perceive ourselves and our self-deprecating opinions based on the poor practices of a few.

If the strata management sector does not see itself as professional, then there is little chance consumers and governments will see it that way either. Recent advancements in education and professional pathways are a step further in building how we are perceived, and making professionalism part of the industry’s DNA. Whilst some may argue that it's simply about introducing compulsory licensing to prevent the under-skilled from setting up a business overnight, I don’t share that view. Licensing is not a silver bullet or a panacea to solve the issues, essentially the under-skilled can still obtain a licence relatively easily. To build barriers to entry and promote consolidation, the industry must consider minimum capital requirements, initiate a financial hurdle to ensure start-up ventures have the funds in place to hire skilled workers, support their ongoing education and training, and build robust and compliant businesses.

Education – I believe that the industry will continue to build on its educational journey. Of importance, over the next decade is education for owners. Not just existing owners, but targeting future owners and tenants during their school education.

Ultimately, every individual will own or rent a dwelling, and in the future this is more likely to be within a strata or community title scheme. However, our children can generally complete their schooling without a basic understanding of property law, or strata law specifically.

Can you imagine a day when your owners know exactly what they own and what their neighbours own? (Or don’t as the case may be). What the legal entity is? How they are governed?

What your rights are as tenants or owners? Yes, this is a bold vision and we may not be able to reeducate existing owners, but we can help change the mindset of future owners by tackling it within the schooling system.

Cost of insurance – as insurers scramble to cost the inflationary factors associated with property claims, 2017 will see both premium rates and the level of deductibles increasing. So to stay in line with the cost of claims inflation, the asset values and premium rates charged (per million of sum insured) collectively need to be around 12 per cent. Asset inflation was running at an average of 3.5 per cent in 2016, so all things being equal premiums need to increase by 8.5 per cent to keep in line with claim costs. As such, we recommend you budget for a minimum of a 10 per cent increase, however, the range maybe a lot higher, particularly for those accounts with poor claim or defect histories.

Importantly, as insurance costs increase, so will the expectation for greater transparency from owners. Therefore, do ensure the total costs of insurance are split up and presented to owners. Show the split between premiums (to insurer), taxes (to government), commissions (to strata managers and/ or insurance brokers), and fees (to brokers). There are many stakeholders that have pecuniary interest in the total cost of insurance. Presenting one rolled up number at a committee meeting or AGM won’t pass the transparency test in the future.

I wish you a successful 2017.

This article was kindly supplied by Strata Community Insurance

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Emergency Funds

Strata finance

What is it?

When an owners corporation or body corporate needs money for renovation or rectification works, emergency repairs, green initiatives, insurance premiums, litigation or other capital requirements, there are essentially three options to choose from: •• use money from a sinking fund.

•• raise a special levy.

•• take out a loan to cover the costs.

All options are viable and should be considered depending on the circumstances, but what if there is no money available in a sinking fund? Special levies are not often the favourite choice for owners, as they are required to find the money to pay for this unplanned expense. By choosing strata finance however, funds are provided directly to the owners corporation or body corporate, and the expense is paid through levies over time, thereby taking away the burden of a lump sum. Strata financing provides the ability to commence work immediately without the need to raise unpopular special levies or wait for enough money to accumulate in a sinking fund.

There are many benefits of using strata finance including the following: 1. Peace of mind •• The loans are unsecured, and offered directly to owners corporations or bodies corporate.

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•• By taking out a loan, a strata community is reducing the immediate cost burden for works.

•• Funds can be accessed quickly once approved, and projects can be carried out with minimal delay.

•• Cash flow is freed up.

•• Loans can be used for funding of mechanical, aesthetic and structural repairs/improvements to buildings.

2. Improved lifestyle •• Strata financing can save time and expense, plus it can provide complete certainty of funding.

•• It allows repairs and maintenance to be completed immediately without further deterioration.

•• Finance may offer greater flexibility and peace of mind that capital values and building standards are being improved.

•• Instead of doing small jobs as money becomes available, multiple repairs, maintenance or refurbishments can be bundled into one project, saving time and money whilst minimising disruption to owners.

4. Increase the value of an owner’s asset •• Repairs and improvements will help maintain and improve the value of an asset.

•• For investors, rental and tenancy stability are enhanced.

5. Who will benefit from strata financing?

•• The owners corporation or body corporate will benefit as they will be able to make decisions quickly and not need to delay the process to raise funds for essential works.

•• The owners will benefit, as they will not be lumbered with the burden of having to pay a hefty special levy. They will also see that the value of their asset is maintained and often improved.

•• The building will benefit from having works completed quickly and not experiencing further deterioration or inconvenience to owners.

•• The decision of which funding option your strata title uses will depend on the circumstances, but you do have choices and should consider them all.

3. No large financial burdens •• Loan repayments are incorporated into quarterly levies/fees.

•• There is no mortgage or personal guarantee required to secure a loan.

This article was kindly supplied by Janette Comish

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State News

New South Wales

Industry updates and member support 2017 is already making its mark in history as a year of change, and it’s not even four months old.

Currently we have international change and potential global instability on the rise, but here in NSW, the fireworks had barely cleared from New Year when we had a change of Premier.

This brought with it a change of Minister representing Fair Trading.

At the time of writing we had not yet met with the new Minister for Better Regulation and Innovation, Matt Kean, MP, but we are hoping to do so soon to continue SCA (NSW)’s positive collaboration with the NSW Government.

In the meantime, there is plenty we are doing to support our members in getting through the first six months, since the implementation of the new strata laws. We have developed a number of tools such as new factsheets and seminars, new templates, and the introduction of a new strata management agency agreement, which satisfies the new Act requirements.

SCA (NSW) continues to lobby government on critical issues to members. We are pleased to update that we have recently received clarification on the impact and application of the new provision relating to “gifts,” providing the necessary clarity for our members as to the application and relevance of this section of the new legislation.

Our events program for 2017 is full once again, including old favourites and some new opportunities. By now we will have all enjoyed the annual sailing day, which promotes healthy competition and some great networking after the main event.

This year we are introducing the Young Strata Network, which is a group for under 35’s in the strata industry, providing networking with peers and the opportunity to learn from industry experts. The first event will be on 30 March and is looking very promising, attendee wise. For this first event we have a very interesting and topical guest speaker, Brent Thomas, Airbnb, Head of Public Policy (Aus/NZ).

Strata Owners’ Day is also back this year and will be held on 25 March. This event is gaining in popularity each year as word spreads about the quality of information, discussions and exhibitions of this day. We are committed to ensuring our owner members receive first-class information that enhances their strata living experience.

Education for members is also full steam ahead, with our usual CPD roadshows, which are focussing on the new strata legislation this year. Check our events listing for a roadshow near you.

Chris Duggan President, SCA (NSW)

MARCH 2017

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State News

Victoria

Media influence and government reform Do SCA (Vic) members get value? It is reassuring that on a scale of 1-5 [five being the best], members’ rate perceived value at an average of four.

Many members already incorporate the SCA (Vic) member logo into the plaques displayed at each property.

We encourage all members to do this, and these member logos can easily be found in the members section of the website. SCA (Vic) branding placed on the plaques onsite, at each property, will continue to drive brand recognition amongst the general public.

Previously there have been a number of articles in The Age newspaper with our comments, including a front page article about defects.

In its own editorial, The Age has called for a Parliamentary enquiry into building construction standards in Victoria. This is in part as a result of our media campaign, and the articles with SCA (Vic) comments, and those documented by journalist Aisha Dow.

The government has made changes in order to have “better apartments.” A good outcome in line with the SCA (Vic) submission to prioritise “design: not size,” where there will be no minimum dwelling size; but will offer improved design, amenity and functionality. Beginning in March 2017, the design standards offer a raft of changes, four especially notable ones are: • Storage – the standard ensures apartments have adequate internal and external storage space that is functional and accessible.

• Noise impacts – the standard ensures the design of apartments protects the health, amenity and comfort of residents from any adverse internal and external noise impacts.

• Private open space – the standard ensures usable, private outdoor space is provided for the recreation and service needs of residents.

• Communal open space – the standard ensures the provision of communal open space that is designed to accommodate a range of communal activities for the benefit of residents.

The Building Amendment (enforcement and other measures) Bill 2016 provides that notices given under the Building Act 1993 are served on the OC, instead of the owners individually (and that the OC can recover costs).

The Owners Corporations Amendment (Short-stay Accommodation) Bill 2016, has now been referred to the Environment and Planning Committee for it to report back to Parliament.

In the 2015/16 year, there were 3,156 VCAT strata dispute applications, a 3 per cent increase from [2014/15 – 3,068].

Almost all applications are for fee recovery and 87 per cent of all applications are for small claims less than $10,000. The OC list is wholly funded by a trust, the Victorian Property Fund, and was $1.7 million in 2015/16.

A full review of Victorian strata laws is underway, and the Options Paper on the review of the OC Act 2006 was published.

It proposed sweeping reforms, and SCA (Vic) is extremely pleased that the government has listened to all of our policy positions on the Options Paper. SCA (Vic) has made a submission, because of this.

More than 2,000 people attended SCA (Vic) seminar events in the 2016 calendar year. Make sure you save these major event dates for 2017: 18 Aug 2017 – CHU SCA (Vic) Symposium; 12-15 Oct 2017 – CHU SCA (Vic) Principals Retreat.

Rob Beck General Manager, SCA (Vic)

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State News

Queensland

Membership growth on a national scale 2017 is going to be a year of focus for the board, in which we will work on succession planning for both the board and the committees. Finding time to serve on volunteer boards or committees is a challenge for many, and as a board it is our responsibility to seek new talent and encourage them to stand for election. We are hopeful that a proactive approach will make a difference in ensuring continuity in our service delivery.

We are now heading towards our 2017 conference with more than 250 delegates registered. Excitingly, we’ve had a great response to our Strata Community Awards and will present the winners on the 77th floor of Q1 at Surfers Paradise on 16 March 2017. Our panel consists of four independent academics from QUT and Griffith University and a former adjunct professor from the University of Sydney. Thanks to Macquarie Bank who sponsors our dinner, we are set to have a beautiful night “sparkling on the glitter strip.”

I must tell national members that 2016 was a year of major wins for SCA (Qld) who celebrated the end of the year with over 200 members in all five regions. Our membership has grown over time and we now find ourselves with more than 400 strata management members and another 200 strata services members. The milestone of 600 individual members is one to celebrate as we are also reaching 450,000 strata title lots in Queensland and probably a bit of a peak.

Internal achievements in 2016 include the recognition of members’ professionalism via the Strata Community Awards

making mainstream print and television news on common issues such as building defects and government policy. The implementation of webinars in 2016 changed the way our education is received in the regions. It’s bringing our offers into the 21st century, which is what we have been asking government through the past three years of Property Law Review to date.

We have gone the extra mile engaging with local politicians to push along the law review, and in December we took home the biggest advocacy achievement we’ve received to date.

Within a very short timeframe of five weeks, the unfair insurance premiums raised for strata title works have been amended, thanks to a collaborative Department of Housing and Public Works, in particular Minister Mick de Brenni.

Amendments to the Home Warranty Scheme (HWS) resulted in a higher premium calculated for strata titles for expensive improvement works like painting. Upon SCA (Qld) instigating an urgent meeting with the Minister to discuss the unfair additional cost imposed on owners of strata properties, the notional pricing, or as we liked to call it “the multiplier,” was reversed for such items as painting, solid plastering, rendering, fire protection work, and physical termite management work.

The Queensland Board sees this as the starting point for finishing the other 12 issues papers that have been out and are awaiting the recommendations. The Queensland AttorneyGeneral Yvette D’Ath is opening the conference on day two, and it is expected that by then we will see the release of a final recommendation on at least one of the two Law Review papers that concerned bylaws and administrative costs to lot owners.

Simon Barnard President, SCA (Qld)

Housing Minister Mick de Brenni and SCA (Qld) President Simon Barnard, December 2016

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State News

Western Australia

Education and sponsorship emphasis leads to better recognition We have certainly hit the ground running this year with the state election close on the horizon and several key areas requiring our prompt attention.

Our focus has been on sponsorship, proposed reforms to the Strata Titles Act, the preparation of an SCA (WA) position paper and improving local training opportunities.

We’ve also experienced significant change to our team, welcoming Kara Grant as our new General Manager.

Sponsorship We have moved sponsorship from running on a calendar year to run in line with the financial year. This involved working with our sponsors to provide a six-month sponsorship package that will take us through to 30 June. We are very lucky to have council member, Emma Watton, to head up the new sponsorship committee, with the aim of releasing a new twelve-month sponsorship package in April.

Reforms of the Strata Titles Act Over the last three months I have been in regular communication with Sean McFarlane from Landgate, to discuss the review of the Strata Titles Act. These meetings have proved productive and some requested changes have been implemented. However, I feel we still have a few important items to address, and look forward to working with Landgate to achieve a better outcome for the strata industry as a whole.

On 24 January we received a copy of the Draft Bill and an SCA (WA) consultation group was formed to ensure a detailed response could be provided by the closing date of 24 February. Several productive meetings were held to review and discuss the draft, and some valuable feedback was provided to Landgate as a result. A further installment to the Draft Bill will hopefully follow within the first quarter of 2017.

SCA (WA) position paper With the State Election upon us, it is essential that SCA (WA) take a more proactive approach in getting our voice heard. To achieve this, we are working with Market Place Communications to prepare a position paper, which we will send to the political parties and key members. A top priority for SCA (WA) has always been to push for licensing of the industry.

The introduction of licensing would set a minimum benchmark for education, and would be a major stride towards improving the professionalism of strata management in WA. The other key areas of the position paper surround building standards and protection for owners of new developments.

Also, the need to introduce community title schemes to

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enhance the future development of WA, and compulsory reserve funds backed by regular building maintenance forecast reports. The property industry will be one of the biggest contributors to the state economy in the coming years with strata titled property to form an increasing part of this. It is therefore vital that these reforms are successful.

With the nationally recognised accreditation pathway now adopted, the A100 Course being presented by SCA, and RMIT delivering the Certificate IV and Diploma in Strata Community Management, we have never been in a stronger position to implement licensing.

Education and training Along with the Certificate IV and Diploma delivery, SCA (WA) has been working to have a traineeship approved for the Certificate IV to be delivered locally through North Metropolitan TAFE. This would support businesses in WA to employ entry-level staff, offer workplace training and receive financial assistance.

It will also set strata management up as a recognised profession in WA, with a nationally accredited qualification. This will go a long way in attracting new people to enter what is currently a severely under resourced industry.

In addition to this, our Professional Development Committee has been working hard to plan our training and development calendar for 2017. We have some fantastic events planned this year, which kicked off with a South West seminar for our regional members and our annual Outlook Breakfast in February.

Lastly, I’d like to thank past President, Rachel Cosentino, for her hard work and achievements during her term. We look forward to an exciting year ahead, which will hopefully see several positive and important developments.

Scott Bellerby President, SCA (WA)

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State News

South Australia

Achieving excellence over the past year On behalf of the SCA (SA) Chapter executive and staff, I would like to welcome you all to a new year and wish you the best for 2017.

We have achieved a lot over the past year as an organisation and as an industry. This is largely due to your support and commitment as a member of SCA (SA), so I would like to thank you for your ongoing support.

Achievements There are many areas that we have either made significant progress in, or have plans to target for 2017.

Some examples of new or improved activities include: • The recent inaugural awards night: the SCA (SA) 2016 CHU Strata Community Awards, • Opening our doors to sponsors, to create a win-win partnership, • Our new membership structure, • Encouraging supplier members to be active in SA, and • The new management agreement, a resource for all SA members.

Improved financial position I am also pleased to report that our ongoing financial position has greatly improved. On behalf of our members, I’d like to thank our annual sponsors for improving our financial future.

As a result of their ongoing support and commitment to is on a positive footing and we can now look to invest in greater benefits and services to our members and our sponsors.

Education: The SCA A100 The SCA A100 Introduction to Strata and Community Management course will be held in Adelaide 16-18 May. The course has received praise from newcomers to the industry as a great foundation, as well as from experienced Strata Managers as a refresher course. Further details can be found on the A100 website. Please contact us if you’d like more information.

Goals for 2017 Whilst we have achieved much in the past year, and it is good to celebrate the successes we have had, it is always with an eye to the future and the greater tasks ahead. Some of the areas that I would like us to focus on the year ahead include: • Improving our cut-through in the media of the messages we want to communicate, • Building better relationships with the government, the opposition and the AGs department, • Achieving clarity on our important policy positions, • Continue to build on and improve our educational sessions, • Continue to expand our membership, in particular with suppliers,

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• Look at providing increased benefits to our sponsors such as a Principals lunch or dinner, and • Giving back to the community.

The SCA (SA) Chapter Executive These activities and more are being driven from our executive committee, and I would like to thank each of them for the extra time, energy and effort they have contributed in order to make it possible to take on extra initiatives that will improve the experience for our members, sponsors and our clients. The current members of the SA executive apart from myself are Bryan Sutcliffe, Carrie Mclnerney, Deb Sullivan, Joshua Baldwin, Mark Tonellato, Peter Affleck, Rino Parrella, Adrian Roach and Tyson D’Sylva. I would like to once again acknowledge and thank Matt Amber for his many years on the board of SCA (SA) and (National). Furthermore, I would also like to thank Bruce Jamieson for his work with the SCA (SA) Chapter Executive.

I am very positive about the future for SCA (SA). I look forward to working with the SA Executive, our national body and our sponsors with the goal of providing the highest level of service to strata owners throughout South Australia. I hope to see you at an upcoming event soon. Should you have any suggestions on the direction of the chapter and its events, please don’t hesitate to contact me.

Kind regards, Marc Steen President, SCA (SA)

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State News

Australian Capital Territory

The next step The Chinese Philosopher Lao Tzu, said ‘a journey of a thousand miles begins with a single step’.

While the ACT chapter is in its relative infancy, we have taken some huge steps in the recent past. Our awards night is going from strength to strength, and is highly regarded by all attendees as being one of the best events on the strata community calendar. We also have a growing membership base, welltrained strata managers, and an outstanding support from our fantastic sponsors.

In 2017, SCA (ACT) will take the next step. We have a new, extended, and energised executive council, comprising of eight members with a great mix of experience and youth.

We are planning more educational and social events for our membership and we plan to extend our membership with the introduction of a formalised unit owner’s membership category. This year SCA (ACT) intends to hold at least two executive committee training forums, arising from unit owner feedback that there is not enough information out there on the roles and responsibilities of executive committees. If there are other state chapters that have successfully held such executive committee training sessions, we would certainly welcome any insight into what worked well in that format.

In terms of lobbying and advocacy, our main issue relates to equity issues in mixed use developments. There is currently no legislative flexibility in the ACT, to separate the interests and expenses of commercial and residential unit owners, which can be polar opposites in some developments, unless an unopposed resolution of the Owners Corporation is carried.

This presents a genuine source of conflict in mixed-use

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developments, and something SCA (ACT) is discussing with unit owners, developers, and most importantly, the ACT government, to try to find a way forward.

I would like to thank the members and the SCA (ACT) council for placing their trust in me as President for a second term. I would also like to acknowledge and thank Chris Miller for his efforts as our outgoing President. In particular, for the role he played in strengthening SCA (ACT)’s relationship with the ACT government and associated industry groups.

I want to pay tribute to three long serving members of the strata community in the ACT who are leaving posts in their respective companies that they have held for a very long time.

Geoff King has held various roles at McNamee Strata for the last 17 years, and has been a well-regarded member of the strata community in both NSW and the ACT, he always stood out, and not just because he is ridiculously tall! We wish Geoff well in his retirement. Erik Adriaanse has retired from his position at Independent but will still be involved in the strata industry through his Presidency of SCA and other business activities.

Jan Browne, has been at the helm of McNamee Strata for over 28 years! That is amazing. We are glad to say that Jan will continue to be involved as a member of the SCA (ACT) Council. We wish Geoff, Erik and Jan all the best in their future endeavours, and we thank them for their huge contribution to the strata community in Canberra (and Queanbeyan).

Finally, I want to again thank our loyal and generous sponsors, who without them, we could do what we do. It is with their support that we are able to put on so many great events and professional development sessions for our members. Thank you so very much.

Best wishes to everyone, for a great 2017.

Tim Maly President, SCA (ACT)

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State News

New Zealand

Summer, sport and SCA (NZ) – the Kiwis first anniversary festivities!

I have just returned from Sydney and continue to learn and develop with the backing of a fantastic international team.

In February we celebrated our first anniversary with the launch of the NZ100 and education pathway, our ‘Introducing Strata’ eBook, and our committee and chair workshops.

The first International chapter of SCA has gone from strength to strength, and we now have over 50 members and five platinum sponsors throughout NZ. After recovering from a fantastic inaugural SCA (NZ) Christmas party (see event photos), the summer holidays were a chance to reflect on both our amazing sporting teams and what we have achieved in our first year.

Our executive board and subcommittees have been instrumental in the success of the chapter, and we are excited about the year ahead.

I am very proud of the ‘Introducing Strata’ eBook the team have created, which can be viewed at: www.stratacommunity.co.nz. This is the first in a series of educational tools for those who are looking to be involved in the sector either as buyers, owners or professionals. A big thank you to Tim Jones, Scott Cracknell and Gillian Blakely for all their efforts to put the relevant act and regulations into a user friendly page turner - yet another step towards our mandate of increasing awareness and information sharing.

A big part of this is the timely review of the legislation surrounding the industry. I was delighted to attend a cocktail function with Ministers Smith and Kaye in December 2016, along with six colleagues who have been involved in the select committee review. The UTA is being reviewed to ensure that the law regulating unit titles is functioning well and fit for a growing market. I am delighted to report they have taken on many of the suggestions from our working group report and have included the promotion and government support of SCA (NZ).

The consultation process is targeted at proposed reforms that relate to: •• improving the disclosure regime, •• strengthening body corporate governance provisions, •• promoting professionalism in body corporate management, •• ensuring adequate long term maintenance plans and funding, and •• accessibility of dispute resolution processes.

There is also discussion on a proposal to introduce unit title complex size thresholds, which would trigger different levels of legislative requirements. You can read the full discussion document on proposed changes to the UTA on MBIE’s website.

The resources and opportunities SCA (NZ) are providing are the first of it’s kind in NZ, and we continue to work with industry leaders to tailor these to our sector. A year in, I can’t thank those who have been involved enough, for all their continued support and advice. We continue to work with the media and government to ensure our voice is heard. This year we are looking to hold a symposium and further educational events, as well as social and networking functions to bring a historically fragmented industry together for the greater good.

Joanne Barreto President, SCA (NZ)

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Feature

SCA Committee Workshop On Monday 6, February a group of committee members for various Owners Corporations joined Julie Mclean, Sharon Lameris and myself to workshop the new SCA National Committee Training document that has recently been developed.

The Committee members involved included some people who were relatively new to their roles, experienced committee members, a board director, a strata manager who is also a committee member and a representative from the Owners Corporation lot owner group. In bringing these people together we had a broad representation from the executive section of the Strata Community. A draft of the document had been sent to these members so that they had the opportunity to preview the contents prior to the workshop.

In general terms, the workshop was to establish what this section of the Strata Community is looking for in the form of education and training. To see if the product that has been developed met their needs, if not where could Strata Community Association assist them with ongoing training and education.

What was established was that this section of the community are looking for a program that will assist volunteers transition from being an ordinary lot owner to a knowledgeable productive member of the Strata Community Committee.

In other word how could Strata Community Association assist them to make their job as volunteers in a Committee or Management role easier and more practical?

Many ideas and detailed information was shared in the two hours of the workshop. The working group will now take that information away and work, revise, review the product so that it best meets the needs of the market place.

I have included some feedback received after the workshop: “I wish to commend the brilliant team at SCA for leading this new – and highly significant – way forward. With the potential twofold effect, of course, of: Assisting many more OCs and communities to control their own destiny through improved governance, strategic planning and community and stakeholder engagement. Notwithstanding the obvious challenges, including how best to communicate with, inform, support and empower the extraordinarily diverse audiences, OCs and stakeholders.”

We would sincerely like to thank the participants for sharing their time and insightful ideas with us and we look forward to the next session with you.

Author Carole Anderson, Education Officer, SCA National

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General Feature

Older Building Maintenance and Safety Requirements Wondering whether new units have certain requirements that older smaller block units may be exempt from? Needing advice on safety requirements for windows, glass, balcony railings and (fire) doors, and not wanting to upgrade these items unless it is essential?

There are no differential standards for buildings on the basis of when they were constructed, or how many units they contain.

However, compliance with the Building Code of Australia is not retrospective. Under the Environmental Planning and Assessment Act 1979, a building only has to comply with the BCA at the time of construction. As a result, the BCA does not require you to continually update your windows, balcony railings and fire doors etc.

That said, part of your duty of care to residents and visitors includes ensuring that they are safe on the property. If a balcony railing (for example) is unstable and unsafe, there can be substantial consequences for not upgrading or repairing the balustrade. Even if the railing is structurally sound, we recommend that balustrades are updated as a matter of safety. Forty years ago the height requirements for balustrades were very lax. These are simply not safe by modern standards.

When considering the safety aspects on your scheme, common‐sense should prevail.

Conduct a Walk Around Start with a walk around the property, looking at things logically and from that of a visitor to your strata scheme. If a potential trip hazard is pointed out, consider the likelihood of someone “unfamiliar” with your property tripping over it. Think about an elderly person or a child.

Once you have completed your inspection, consider the variety of items you’ve noticed and then consider getting a professional company to quote on conducting an expert inspection. Most common property claims are based on trips/ slips/and falls. For around about $348, the cost verse a potential law suit represents good value.

Fire Safety Doors Items that you may have come across, depending on design and the type of construction, could also include Fire Safety Doors. Asbestos (being a good fire retardant) was used in Fire Doors up until 1987. There should be a tag on the inside spine of the door (hopefully it hasn’t been painted over) that may tell you the year it was made and if it (not all tags will) contains Asbestos Material. Doors manufactured after 1988 generally are Asbestos free. If the Fire Door hardware has failed e.g. the handles, closers, latches, pivot points you should have the

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doors replaced. However, if the doors have been kept in good condition then there is no need to do anything other than keep up the good maintenance work!

Asbestos When I’m conducting Sinking Fund Plan seminars I always recommend to unit owners that if you have Asbestos (anywhere in the strata), have the inspector put an allowance in the SFP to have it removed by a professional, licensed Asbestos contractor.

Common Property Glass The same concept can apply for common property glass.

We’ve all seen the amber coloured glass that looks like beer bottle glass but is a lighter shade. This glass is dangerous. If someone was to fall through or into this glass, it will shatter and the shards can be lethal. Once again, older buildings don’t have to replace amber coloured glass, but it is highly recommended. Use your SFP as it was intended. Put funds away to have the dangerous glass replaced when the Owners Corporation can afford to.

Balcony Rails/Balustrades With regards to balcony rails/balustrades, from 1997 to now the current BCA requirements apply. Height not less than 1-metre for balustrades, handrails/stairwell balustrades to be not less than 865mm. However older buildings have a much greater range of installed heights and configurations. This is because they were approved by local Council or other governing bodies at the time of construction.

Therefore the correct heights can be almost impossible to determine. Older balustrades are often much lower than the later structures. These balustrades pose safety risks that were not considered at the time of construction. It’s not uncommon to see balustrades above 3 stories less than 700mm in height and constructed of horizontal rails. However, the codes used to meet compliance at the time of construction are not retrospective.

Let Common Sense Prevail In keeping with the tone of this article, let common sense prevail. Look at it subjectively. Would you feel safe allowing your child on the balcony of an older building? What about an elderly person that looks for items to support them when sitting down or attempting to stand? Keep in mind, if any alterations or major reports to existing balustrade occurs or you’re about to do this type of work, the BCA requires that the balustrade MUST meet the current requirements.

This article was kindly supplied by Peter Berney, Solutions in Engineering.

This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.

Media

SCA IN THE MEDIA Another year has come around, but the goals stay the same for SCA on a media and communications level; grow the strata stakeholder base.

Nationally, we have endeavoured to start the year by announcing the exciting progress made at an education level, with the unveiling of the A100 course.

Last year was an exceptionally active year for the brand in the public domain, with coverage right around the country for our biggest priorities.

Pushing forward a focus of ours is to ensure that the industry can be future proofed at both a regulatory and living level, and that will see us tackle reform in almost every state and territory, alongside issues like the current pricing of general insurance and the ability of developers to make ‘heat smart’ buildings as the mercury rises.

The media is a sprawling market, nowadays with print, broadcast and digital, so we cannot always see where our coverage goes but we observed in excess of 50 media articles last year quoting SCA in state and nationally distributed publications.

This roughly translates to a media mention a week for the brand, and that it is a standard we aim to keep to in 2017.

It continues to be the organisation’s driving motivation to see owners and industry professionals benefit from a media market, fully aware of the issues that matter most to them and we feel that has progressed to a point where we can tackle some issues that wouldn’t have been given a second look a short time ago.

Some of these issues include the introduction of new education pathways in the sector, our priorities for upcoming property reform, and sustainable property.

The media understands that if no one cares about the story, there’s no point putting it out – so it is excellent to see issues like these being recognised as important to the public.

As with anything, a key deliverable has been forging relationships with valuable outlets and individuals and we have started this year, by receiving multiple invitations to regularly join podcasts, run Q&A pieces in industry publications and comment on some of the mainstream media’s on-the-go issues.

A renewed focus will be on establishing these regular commentary opportunities so as to become not only a heard voice, but a trusted voice seen regularly within the sector on all strata property matters.

Around the country, specific issues have also seen some attention be given to the state chapters in their roles as industry advocates.

Issues like legionella outbreaks in Melbourne’s newest apartment blocks, the need for home warranty scheme changes in Queensland and Western Australia’s need for licensing for strata professionals.

Positively, the same attention has been given to issues in New Zealand, as Strata Community Association (NZ) looks to set down some roots in the local industry.

As we look to establish and grow relationships with a new media market in New Zealand, it has been very positive to see multiple mentions for the organisation in the New Zealand Herald, some of the biggest regional papers including the Dominion Post and the National Business Review.

But perhaps most significant on an organisational awareness level recently has been the appearance of some articles, in which SCA put zero material out for.

Industry publications are now so aware of what SCA is doing at an advocacy level, that stories are being written without our prodding or material submission.

Being talked about without having to talk is one of the trademarks of organisational awareness and it’s something we will look to consolidate in the year ahead.

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EDUCATION

RMIT partners with

Strata Community Association

RMIT University and Strata Community Association (SCA) have collaborated to create a new online course for strata management professionals.

The learning modules are conducted entirely online, allowing members across Australia to receive a national qualification in their own time while they work.

The Certificate IV in Strata Community Management qualification enhances and supports the role of those involved in providing management services for strata communities.

Sample study areas include foundations of working in the strata industry, communication and conflict resolution, legislation and compliance and financial reports and budgets.

As the peak industry body for Body Corporate and Community Title Management in Australia, SCA approached RMIT looking for a partner to increase professional training options for their members.

Industry Program Manager Kate Coady says RMIT is well equipped to deliver this program.

Carole Anderson, National Education Officer at SCA said a number of changes were happening in the industry and RMIT’s reputation and ability to deliver quality training online were key considerations in the decision process.

“Clients are expecting more from their body corporates,” Anderson said.

Buildings are also becoming more technical and complex in their management requirements.

“The development of this national qualification is one of the ways SCA is striving to meet these new challenges with the help of RMIT.”

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“We have a long history of working with industry to provide training to suit the needs of the market,” said Coady.

SCA has more than 3,300 members who oversee, advise or manage a combined property portfolio with an estimated value of over $1.2 trillion.

Members include body corporate managers, support staff, committee members and suppliers of products and services to the industry.

The industry-based program is open to anyone working in strata management or real estate wishing to increase their skill set or move into strata management.

RMIT is proud to offer the Certificate IV in Strata Community Management 03 9925 4119 | www.rmit.edu.au/programs/c4394

Strata Cert IV letter

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Strata Cert IV letter

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General Feature

How to develop your unique selling package How do you answer when asked… “Why, out of all the vendors available to me right now, should I buy from you and your company?”

It’s a good question isn’t it?

I was asked this last year by a Sales Manager in charge of 12 sales people and being caught off guard, I fumbled my way through it.

Now I have crafted a message that I can recite in my sleep, while in the shower, driving to work or anywhere else and when I work with any client this is the first thing we go to work on. It’s a muddy marketplace out there with plenty of alternatives, and people are not sitting there patiently waiting for you to come into their lives.

We have to give our buyers a reason to buy from us and for them to be able to position us in a heartbeat.

So how do we build an answer to that question?

The first part of Strategic selling involves starting each call with a strong strategic uniqueness or philosophy statement about you and your company that takes less than two minutes to present.

It also involves you developing a more strategic or ‘big picture’ focus to your selling messaging, selling language, and overall philosophy or approach to a customer’s business.

The ‘Five strategic buying questions’ How effective are you at explaining the complete story of your product or services? A strong opening strategic message of competitive uniqueness is an effective way to start a sales call.

Explaining your statement of uniqueness, or ‘Elevator speech’ begins to position your customer as to why they want to select you over all of your competitors. However, success in selling involves more than just delivering a strong opening selling statement.

You also need to provide your potential buyer with a simple, yet complete explanation of what you have to offer and why it will be of such value to your prospect.

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The ‘Five strategic buying questions’ cover all of the major questions a prospect will ask as they evaluate and consider your selling offer.

These five strategic buying questions are: 1. Where can this take us? Explaining how your product or service can change or redirect their business, efficiency, or profitability.

2. Who can this help? Explaining whom in the customer’s organisation will find the most value from your offering.

3. Why is it better? Explaining why your approach is better, provides more value, is a lower risk or a lower total cost than any of your competitors.

4. What does it do? Explaining what kinds of results or outcomes you will be able to receive.

5. How does it work? Explaining the mechanics and details of how it functions.

Small Business Owners have been answering these simple buying questions in sales calls for decades. However, the majority of salespeople answer these questions in the wrong order!

I wish I had a dollar for every time I worked on a client’s business where all the communication to the market was all about what the product does, the technical side of things rather than what the product will do for their client.

Are you product or customer focused?

Cognitive business owners present their idea or product with far too much detail rather than the emotion around the purchase.

The buyer gets overloaded and bogged down trying to find the reason for buying. As my father used to say (he was a great sales person), “a confused mind says no.”

Most buyers find it difficult to absorb new information in this manner, or at least this order. The technical approach of providing all of the details so you then can understand the big picture normally just does not work. In most cases, it is just

too complex for your customer to collect all of the detailed information provided and then assemble it in their minds to understand the ‘big picture’ of what is being explained and proposed.

But the more persuasive way or strategic way is to reverse the order and begin your product or service presentation by starting off with explaining where your product or service can take your customer and then discussing who in their organisation will receive the most value.

How are you presenting your information? Is it from the more persuasive big picture down to the details, or are you a detailed and technically biased salesperson who still expects customers to be able to assemble all of your detailed explanations into one overall understanding of what you’re selling and why it’ll provide such value to your customer?

Your strategic message of uniqueness Do you want to improve your strategic selling skills?

The first and most important effort is to work on your two-minute strategic message of uniqueness that explains why someone should buy from you.

Step #1 – Your umbrella statement In a one line statement – what do you do, to whom and for what benefit? For Example …“I show… how to… which increases…”

Step #2 – Your 3 point support statements 3 key support streams to back that up. ie. Let’s assume you were an accountant, your strategic message of uniqueness might go something like this:“I work with small business owners to increase their return on their business and create a great lifestyle“ • Point 1 – “I work with my clients to take the headache out of compliance issues.”

• Point 2 – “I help clients to build wealth through creating their own self managed super fund.”

• Point 3 – “We increase returns in your business by giving you the very latest advice on tax laws.”

Now you have something that gets the buyers attention, and it positions you in a minute or so.

Two last points – to make it really hum along you need to make it third party, in other words ‘what others say about you.’

It must also pass ‘the so what’ factor! Why is that important to the buyer.

Try planning your next sales presentation so you can answer these five questions in the proper and strategic order of explaining your philosophy and big picture first, and then getting into the details.

You might already be good at selling, but are you good enough to get better?

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General Feature

How co-housing could make homes cheaper and greener Housing affordability is at crisis levels in many Australian cities, fuelled by an inadequate supply of housing in areas close to jobs and a taxation system that favours investors over first home buyers.

The Reserve Bank has suggested that “the answer… lies in more innovative and flexible use of the land that we have so that the marginal cost of adding more stock of dwellings is lower.”

Co-housing – where a group of friends, extended family members or downsizers band together to buy into small blocks with some common space – may well be one of those innovations.

What is co-housing?

Forget your preconceived ideas about communes and share houses.

This version of co-housing is a mainstream concept wherein suitable single-dwelling suburban blocks are adapted to accommodate two or three smaller dwellings with some shared spaces, reducing the overall physical and environmental footprint per household.

Co-housers could be friends struggling to afford a first home, intergenerational families or downsizers wanting to unlock equity for their retirement and live close to friends or family.

Co-housers typically enjoy more privacy and independence than flatmates and each household in the group owns or rents a defined space. Co-housing differs from duplex or multi-unit housing in that more of the space is shared, enabling more efficient use of land. It is similar in principle to granny flat

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development but less restrictive, allowing for more varied and flexible household groupings.

Consider, for example, two single storey workers cottages in Balmain adapted for sharing between one of the authors of this article (Suzanne Benn) and her adult son, architect Andrew Benn, along with his young family.

Winner of a NSW Architecture Award in 2014, the cottages (depicted in the lead image for this article) have been renovated as a flexible family complex, designed to enable interaction in some shared areas while maintaining the houses as individual units. Incorporated into the design is a self-contained unit that can be used by other members of the family or perhaps by a “carer” in years to come.

The cottages illustrate how co-housing can reduce costs and create an improved sense of community. At the macro scale, such arrangements could improve economic resilience and contribute to more compact, sustainable cities.

Trends The composition of Australian households is changing: our population is ageing and just over 30 per cent of households will be single person households by 2026. Social isolation is a serious emerging issue. Lifestyles are changing and there are signs, such as the sharing economy, of new, more collaborative paradigms for urban living.

Co-housing has the potential to make buying or renting a home cheaper but also enables sharing of bills, cars and household goods, as well as trading of services like babysitting and care for the elderly. This is significant: as households collaborate to share resources (including skills and capabilities) an informal sharing economy grows, leaving many financially better off.

There’s a city planning benefit too. To remain liveable, resilient and economically competitive, growing Australian cities must limit urban sprawl. Yet increasing densities is a fraught issue that often sees planners, developers and local communities in conflict. Whilst multi-unit housing remains a significant part of the solution, co-housing adds another option to the mix – one that increases suburban densities in a way that is modest, incremental and distributed.

Problems So if co-housing is such a good idea, why isn’t it widespread already?

Fixes So what would it take to enable co-housing as an option for Australians? A good start would be a conversation between influential stakeholders – such as planning authorities, banks, planners, architects and property experts – to explore pros and cons and the best way forward.

Questions include what makes a location suitable for cohousing, and how to fine-tune planning controls to avoid unwanted outcomes (such as development that’s out of character with the neighbourhood or doesn’t result in affordability gains or more efficient use of land). Implications for buying, lending and selling (including taxation) also need to be further explored.

With more precedents – good examples of urban co-housing – and better information and resources for the public about how to make it work, we could see a significant improvement in the diversity and affordability of housing options in Australian cities.

Co-housing won’t be for everybody, but even if it has traction with 10 per cent of the urban population, that represents a significant force for change in our cities. It could offer a way to live more affordably, leverage the benefits of the informal sharing economy and reinvigorate a sense of community. Plus it could help to keep cities compact, liveable and resilient into the future. There are a number of issues to be teased out, but surely it is worth the conversation.

Firstly, there’s the perception that it’s for alternative types only, and there are not many urban precedents. But co-housing principles are starting to be applied in more mainstream ways and at different scales – from large urban co-housing projects overseas to plans for a crowd-sourced apartment community in Melbourne to an innovative Gen Y house in Perth. Renovation costs may also be a factor.

Secondly, and more significantly, there are complexities and uncertainties. It’s not clear to the average person how to navigate planning approvals and understand the financial and legal implications.

Though many metropolitan strategies recognise the importance of a compact city, small-scale co-housing is not specifically enabled via the planning system (though the “granny flat” legislation that exists in some States is a start).

The very creativity and flexibility that gives co-housing appeal makes it challenging to regulate. Regulators would need to manage perverse outcomes such as the impact on investment value and choosy households making some housing spaces difficult to fill down the track.

One possible route is via subdivision and strata titling. The downside is that subdivision can inflate property prices, potentially cancelling out the desired affordability gains, and would require an overhaul of planning legislation.

Company title, considered outdated since the introduction of strata title in the 1960s, is an interesting alternative. One of its perceived flaws – that it can be geared so approval from all owners is required to sell or lease an apartment – could actually be appropriate in this context. It is generally much simpler from a planning approvals perspective and in some cases may be doable within existing development controls.

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Costin Roe Consulting Diagnostech Duratec Australia GHD Infracorr Consulting Integrated Consultancy Group

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Our team of Building Consultants and Engineers specialise in the Diagnosis, Specification and Project Management of all types of remedial works for the Strata Community, including: • Structural Engineering • Concrete Spalling • Waterproofing • Structural Defects • Façade Engineering • Building Defect Reports • Rope Access Surveys

We are an ISO 9001and AS/NZS 4801 accredited company.

www.acrassoc.com.au

Visit us at www.diagnostech.com.au or call us on 02 9906 3115

email: info@acrassoc.com.au

Level 5, 55 Chandos Street St Leonards NSW 2065 Email: office@diagnostech.com.au

for searchable list of Consultants, Contractors, Material Suppliers and Asset Owners in Australia and New Zealand

SOCIAL PAGES

2017 SCA (NZ) Launch Event

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SOCIAL PAGES

2017 SCA (NSW) Sailing networking

2017 Sailing Day at CYCA, Sydney Harbour

2017 Sailing Day Winners, Core Project Consulting

Networking event sponsored by 3 Colours Painting and The Shower Repair Centre

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Daniel Linders, SCA (NSW) Vice President

2016 CHU SCA (Vic) Principals Retreat

43 strata industry thought leaders attended the exclusive 2016 CHU SCA (Vic) Principals Retreat in October 2016 in Fiji for facilitated discussions regarding ‘building resilient relationships’.

SCA (NZ) Christmas Function 2016 – Coopers Creek cellar door and tasting shed, Kumeu

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SOCIAL PAGES

2016 SCA (Qld) End of year networking 234 members across Queensland enjoyed the end of year celebrations in Brisbane, Cairns, Townsville and the Gold and Sunshine Coast. Special guest at the Brisbane event that attracted 85 members was Housing and Public Works Minister Mick de Brenni who complimented SCA (Qld) on their ability to provide professional industry specific insight.

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SCA (WA)

Symposium – One of the many great sessions of the day

Symposium – Facilitator Matt Church

Symposium – Break for morning tea

Awards – Strata Management Business of the Year Winner Prestige Strata Management

Awards – Young Strata Manager of the Year Sofia Swensen

Awards – Strata Manager of the Year Karen Richardson

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EVENTS CALENDAR

6 6 6 6

Retaining Walls, Brisbane Boundaries and Fences, Brisbane Borrowing, Brisbane Meeting Procedures: Committee Meetings, Brisbane 28 Case and Legislative Updates 2016 Forecast for 2017 28 Sundowner

7 7 11 11 11 14 20 21 25

April

May

June

Round Table Discussion: East 4 Hour Workshop Contravention Notices, Brisbane BMS for Beginners Part 1, Brisbane BMS for Beginners Part 2, Brisbane Contract of Appt: Appt Termination Handover Sales-Purchase Lego-Land of Strata 2017 CHU Strata Community Awards, Doltone House, Hyde Park Principals of Strata Mgmt. Companies

July

2 Support Roles in Strata 9 Accounting 9 BC Tax 9 Hot Water Plants in Strata 9 Bulk Electricity and Embedded 11 12 12 18 23 25 26 26

Networks Regulations Moral Dilemma Express Glass Strata Community Golf Day, Mooorepark Golf Course Round Table Discussion: CBD Law Week SCA A100 Round Table Discussion, Cairns Round Table Discussion, Townsville Strata 101

NEW SOUTH WALES QUEENSLAND VICTORIA WESTERN AUSTRALIA NATIONAL

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2 6

4 hour Workshop Round Table Discussion, Sunshine Coast 6 Young Professionals 14-16 2017 SCA National Convention: Better Together Repairs and Maintenance 23 and Insurance Implications 27 Strata Starter, Brisbane 27 Role of the Council

August

4 18

Golf Day Symposium and Awards for Excellence, Melbourne Park Function Centre, Melbourne 23-25 Leadership Forum - Fiji 23 How to read a strata plan & what does it comprise?

29 Getting to know your Strata Better

3 12-15

Role of the Council Principals Retreat, Shangria-La Hotel, The Marina, Cairns 17 AGM and Networking, Brisbane 19-20 SCA (NSW) Annual Convention, Hilton Hotel Sydney 24 Conflict Resolution, Brisbane 24 Anger Management, Brisbane 27 Voting

5 6 7 12

September

14 15 19 21 21 21

October

The Under Belly of Strata Governance and Community Development Getting to know your Strata Better Transfer of Records, Brisbane PCBU & Site Inductions, Brisbane Boundaries, reading plans, survey plans and easement documents, Brisbane

The ABC of Reading Plans Cairns Networking Townsville Networking Brisbane Networking Role of the Council

November

17 17 23 23 23 23 30 30

December

Achieving Results by Connecting with your Local Councils and Authorities SCA Symposium 2017 WA Disaster Management Insurance, Brisbane Disaster Management – Maintenance, Brisbane Disaster Management Planning, Brisbane Sunshine Coast Networking SCA (NSW) Annual Christmas Party Gold Coast Networking

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ADVERTORIAL

RELIABLE PEST CONTROL IN 3 SIMPLE STEPS! Here at Flick Anticimex, we understand how busy strata managers can be, having to manage numerous properties and juggle clients.

We know that they’re just looking for reliable and drama free pest control companies. Flick Anticimex does all the work for you, conducting thorough pest control treatments and alleviating issues with your clients. We service all kind of pest needs; from common pests like ants, cockroaches, Rodents, termites, flies and bed bugs; to pests not commonly dealt with by other pest control companies like possums, pest birds, snakes and more.

Alongside our traditional pest control solutions, Flick Anticimex utilises digital technology in rodent control. We have introduced an intelligent and efficient solution, called SMART which incorporates digital traps, cameras, and sensors for 24/7 real time assessment of your rodent problem. This means you can act quickly, preventing the problem from becoming too costly or too overwhelming. We pride ourselves on offering environmentally friendly, non-toxic solutions to treat pest infestations, as we utilise advanced equipment to ensure the target pest is safely removed and remain off the premises.

Read more about SMART at: www.flick-anticimex.com.au/commercial/smart Accessibility and transparency is of paramount importance in our offering. Reports are professionally prepared by qualified pest technicians and are generally available within hours of the inspection or treatment. We’re proud to say our reports have become best practice and are constantly being improved to exceed industry standards. Every strata manager will have 24/7 personalised access to their Flick web portal to easily access account details and reports for all properties that they manage with Flick.

It is a Simple 3 Step Process from Start-to-finish

1

Contact your local Flick Branch to arrange a comprehensive assessment of the property. Our large team of technicians allows us to service all your properties in all areas across the country.

2

Your account manager will then prepare an Integrated Pest Management programme tailored to addressing the specific issues of the problem at hand.

3

Your experience with us does not end at your treatment. Your account manager is with you until the end, so you can rest assured that your properties are well looked after. All pest treatments are accompanied by warranty to ensure everything runs smoothly, post treatment.*

Working with Flick is more than just solving your pest problem.

Trusting us with the maintenance of your properties means that you receive full pest-related service, discretion and flexibility, peace of mind, top class solutions, and above all protection for your clients. To get in touch with a Flick account manager today, visit www.flick-anticimex.com.au or contact us on 13 14 40! Chat with us today and receive guaranteed hassle-free pest control for you and your clients.

Get your pest control requirements managed by the best in the industry.

Flick Anticimex offers a warranty for all treatments* with 24/7 access to reports and more!

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Hassle-free pest control for you & your clients

ALoLntrol

pest c lude c n i s t n treatme y period* nt a warra

Call us at 13 14 40 Visit us at www.flick-anticimex.com.au Terms and Conditions apply. See website for more information.

*

ADVERTORIAL

Costs and problems with Indoor Pools

Indoor pools are one of the most energy intensive building spaces with inherent health and safety risks, challenging architects, developers, builders and building managers with questions of design, installation, operation and maintenance in which owners must ultimately fund. In addition to the high operating costs of any heated pool environment, there is the hidden costs of building fabric degradation if the moisture in the air is allowed to condense.

To achieve the ideal balance between a safe and healthy indoor environment and operating costs, presents owners with a complex set of interrelated control and management issues. The ideal indoor environment requires good temperature and humidity control but this comes at an increased cost of operation.

Most people associate the interior of indoor pools with high humidity, stuffy chlorine smelling air and steamy windows, floors and walls. Water condensation is not only a safety, comfort and health problem but will in the long term cause serious, expensive structural damage to the building. Without effective dehumidification and ventilation control, there is a risk of mould, corrosion, structural damage and an uncomfortable pool environment.

This does not have to be the case and in a correctly designed pool heating system, a good controlled environment can be had at the same cost as heating the pool water.

Some typical Swimming Pool problems • Uncomfortable humidity around the pool • Condensation on vents/ glass panels/ AC grills / floors etc.

• Strong and persistent smell of chlorine (chloramines).

• Building degradation and corrosion.

• Mould and mildew growth.

• Frequent accidents (slipping/ falling) caused by wet floors.

• All of these problems have a cost and amenity impact for the building owner’s corporation.

Avanti Apartments Avanti apartments, built over a decade ago, located in Hornsby 25km Norwest of Sydney’s CBD includes two towers with 198 residential apartments, 45 commercial spaces, 8 shops, a childcare centre, heated pool, spa and fully equipped gym. Since the original construction, Avanti have been struggling with mould, mildew and corrosion in a pool space that had inferior ventilation installed during the original build. This poor indoor air quality led to the eventual deterioration of the ceiling panels within the pool area, and the corrosion of many surfaces in the space.

Air Change, with its local engineering and manufacturing team were able to tailor a customised ‘turn-key’ solution for Avanti from design, through to installation and maintenance. The original brief from Avanti was simple: 1. Provide energy efficient heating for the pool, both air and water.

2. Eliminate condensation and corrosion issues.

3. Improve indoor air quality within the pool environment.

Avanti also had the added challenge of space restrictions due to the limited available plant space.

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Air Change’s solution was to supply a split DX heat pump system. A fully ducted fan coil incorporating an air to air heat exchanger was installed in the ceiling space to manage the quality and temperature of the air.

To heat the pool water, Air Change installed a heat pump in the lower car park. The most innovative aspect of this design is that the two units are linked, to ensure the energy from the exhaust air in the pool room released during water evaporation is recycled back into the pool air and water. This system dramatically reduces the heating costs compared with conventional pool water heating systems. The air to air heat recovery further reduces the overall running cost by improving the overall system efficiency.

The installed equipment has an energy metering and logging device that tracks energy consumption. Current indications show an annual energy cost reduction of 51%. More importantly, the pool air environment is healthier and more comfortable whilst preserving the building fabric and this all occurs at a lower heating cost than before the system upgrade.

As the cost of gas increases on the Australian East Coast, the Air Change PoolPac Plus system offers an ideal solution to reduce energy running costs, minimise condensation and improve air quality in new pools and refurbishments.

Take a dive toward indoor pool efficiency with the Air Change PoolPac™ Plus

PoolPac™ Plus 100% Outdoor Air Reverse Cycle PoolPac™ Plus Unit

Air Change is an Australian manufacturer delivering customised solutions in pool heating, ventilation and air conditioning for aquatic centres and residential pools. Our internationally patented heat recovery technology minimises energy consumption and can supply up to 100% fresh air, solving condensation and corrosion issues whilst reducing overall running costs.

Phone 1300 766 704 or visit airchange.com.au Multi Award Winning Technology AIRAH “Excellence in Innovation” Winner 2013 AIRAH “Excellence in Innovation” Winner 2012 ARBS Industry Awards “ESD Product” Winner 2010 Air Change Pty Ltd products internationally patent protected I Refrigerant Trading Authorisation No: AU23586

General Feature

FIXIT: resolving issue communication break downs As the ways in which we communicate become more constant and immediate there remains a digital-disconnect between occupants of multitenant buildings and the strata managers whose job it is to serve them. This disconnect results in problems being noticed but not reported due to the perceived or actual inconvenience of doing so.

This inconvenience ranges from not knowing who or how to tell the right people and for 34 per cent of people who report problems, there’s a belief that the person who is responsible wont appreciate being told.

Some band aid solutions opted for by proactive residents and strata managers can be found in online forums or chat groups however these don’t completely close the loop- resulting in communication breakdown. There is of course email- which results in a long confusing thread with people being added and forgotten as each reply is sent.

It’s because of these issues that two Sydney residents built Fixit. It’s an Apple and Android free-to-download and use app which is powered by a very versatile website that can be accessed at www.fixit.do.

Fixit is an end-to-end solution for capturing the information about the issue, then submitting it to the right person or people where it can be collaborated on in a user-friendly environment with access to instant messaging, sharing images and ultimately finding a resolution.

The figures speak for themselves, 70 per cent of people who had an unpleasant strata repair experience indicated the weakest link was the fragmented communication systems used by the various strata committee members who are charged with managing the first step so that the next steps are in the right direction. “It’s a bit like a bullet being fired in the general vicinity but being only one degree off, resulting in the target being missed.” Fixit’s co-founder Matthew Waugh explains.

Fixit captures very specific data through the creation of an intelligent system that they call the “reporting structure.” This is a branch based, way-finding tool that the resident can use to drill down and identify the problem, if a solution has been added the resident can provide feedback and submit the report.

Individuals or groups of recipients can be added to each step and if the reporting resident taps through the step then the recipient is included when it’s submitted.

For proactive strata managers, the suppliers of things like pool pumps or security doors can be pre-added so when the report is submitted the trades person can be across it from the first instance.

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Each building can restrict access to the reporting structure, this was done to prevent mischievous or vexatious reports, Matthew explains “we started with a verified email system however discovered that this isn’t ideal for a multitenant building where the occupants aren’t known to each other, so we now allow strata managers to grant access based on a code-word, which only needs to be entered once.” These code-words are displayed on the building’s notice board.

With the current trend of innovative tech, Fixit allows the occupant to on-board their building from the app. This is done by answering a few questions like: is there a pool, spa or sauna etc. Once submitted, Fixit will inform the strata manager that the property is listed. “We don’t want to blind-side strata managers with this feature, it’s just to show them how easy the system is to use, they have the final say as they’re added as admins to the newly created account,” Sebastian explains.

Knowing that duplicity of information is a problem when there’s a system so good at reporting issues, the team have just launched “Crowdfix.” This feature displays all the existing reports of the same type in the same building, and if the resident is reporting the same problem they can instead follow the existing report.

Crowdfixing connects all the concerned residents to those whose job it is to resolve it. Then when the problem is fixed all the followers are informed at the same time. Matthew believes “this effectively turns a problem into good-news story once it’s solved.”

Fixit’s revenue is generated from both a software subscription as well as the option to add a customer service package.

Matthew explains “We know that resident sentiment is very important, so we can sit between the initial report and the Strata manager. We receive and acknowledge the report then request any clarity if required.”

Australia’s youngest real estate tycoon Stephanie Brennan said the app will change the face of property management.

“It will also provide a greater level of transparency to investors in managing their maintenance expenses and further validate the relationship between the owner and agent by providing educated advice on the cost verse benefit of repairing and replacing items, right through to capital improvements that will in turn increase rental yields while minimising a property’s vacancy rate,” Miss Brennan said.

Fixit’s promise is to answer every submission and only escalate actionable reports to the recipients. The combination of these synergize to free up the strata manager’s time, and manage the sentiment of residents.

General Feature

A provision guide to small and large strata schemes Strata scheme, formerly known as “building strata” is a building or collection of buildings where owners have a small portion, which is called a lot. Strata schemes are small communities where the actions and approach of people can have a major impact on the happiness and satisfaction of others. It is important for people to be aware of the responsibilities; rules and regulations when owning a property in this scheme. Many owner corporations hire strata management companies to assist them to run their strata schemes. Some small schemes usually hire a professional strata manager full-time.

There are three types of strata schemes: •• Small strata schemes which consist of two lots, •• Large strata schemes which consist of 101 lots or more, •• Other strata schemes which consist of between three and 100 lots.

Provisions for small schemes •• An Executive Committee is when an agent of the owner corporation can be formed automatically by two owners.

There is no need for an election of an Executive Committee.

•• In small schemes a quorum occurs in meetings only when both the lot owners are there.

•• The two buildings are separated from each other so there is no need for insurance, both owners can decide to relinquish insurance cover by a mutual decision at a meeting.

•• Each owner may insure their building individually.

•• The owners can decide not to have a sinking fund since there is no common property. No buildings are situated outside the lots in this scheme.

•• There is no need for an audit of financial accounts and statements. Should owners of two lots want to audit their account, then it’s not necessary to meet the Australian auditing standard.

Provisions for large schemes •• Financial accounts must be audited each year.

•• An audit of financial accounts must be done each year.

•• An amount which is expected to be used up on specific things must be listed for annual budgets.

•• The owner corporation must obtain at least two quotations for items of expenditure over the official amount $30,000.

•• The Executive Committee of these schemes is not allowed to spend more than 10 per cent over the budget amount except in emergencies.

•• A detailed notice of all upcoming “Executive Committee meetings” must be provided to all lot owners. Notice via the scheme’s notice board is not acceptable.

When the need for special provision is required It’s necessary to have a special provision for different types of schemes, as many are not comprised of the same structure and size. There are many things such as Owner Corporations, Executive Committee, sinking funds, insurance levies, disputes etc. involved with the strata scheme, that cannot be considered when there are only two owners involved.

A large scheme containing more lots will require the management of all of the above things quite differently. If there are more owners in one place there is a chance of conflict between them and so there should be some special terms and policy outlined upfront.

Author Christopher Whelan, Licensed strata manager at Whelan Property Group Pvt. Ltd – focused on providing prompt and proactive professional strata management service throughout Sydney.

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Directory

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For more information Call: 1300 658 007 Visit: www.megasealed.com.au

WITH OVER 30 YEARS’ EXPERIENCE IN SAFELY RECTIFYING MAINTENANCE ISSUES, OUR PERSONNEL SPECIALISE IN ENHANCING THE DURABILITY AND APPEARANCE OF VALUABLE BUILDING ASSETS ACROSS AUSTRALIA OUR REMEDIATION SERVICES INCLUDE • Structural condition assessments • Specialist access systems • Concrete and steel repairs • Joint sealing • Water ingress remediation • Balcony, balustrade and window repairs • Durable non-slip flooring systems • Car park remediation

CONDITION ASSESSMENT SURVEYS

• Complete facade remediation

In many cases the source of a building’s defects can’t be established without intrusive investigation coupled with challenging access issues - a potentially expensive and time-consuming exercise. With many years’ experience of using drones and rope access specialists, we provide an efficient and costeffective means of meeting this challenge.

• Specialist coating systems • Structural strengthening • General building maintenance • Storm and emergency repairs

DETAILED TECHNICAL REPORTS Once we’ve completed a survey, we provide our client with a plain language report identifying the root causes of deterioration, providing innovative fit-for-purpose solutions and realistic budget estimates for the cost of a range of remediation options.

CONTACT US ON 1300 402 401 OR STRATA@DURATECAUSTRALIA.COM.AU

MORE THAN INSURANCE

GIVING CUSTOMERS EVEN MORE Our people are solely focused on, and passionate about, protecting the Australian strata community and have been delivering superior customer experiences and products since 1999.

With the security of being backed by Australia’s largest general insurer, IAG, you know we’ll be there when you need us most.

Our national team of strata experts has a proven track record of delivering specialised Residential and Commercial strata insurance solutions.

We are proud to be recognised as Australia’s preferred provider of strata insurance.

INFO@SUU.COM.AU | 1300 668 066 | WWW.SUU.COM.AU