STRATA INSIGHTS 2023

Now that the year is coming to end, it’s time to reflect on how Covid, working from home, building defects, inflation, rising interest rates and heavy rain impacted us all in strata and other communities. Now that Covid is largely behind us, we can look forward to 2023?

1. Strata Meetings & Communications

Communication technologies are revolutionising the marketplace across a variety of industries and the strata industry is no exception. The pandemic shifted the way we usually conduct in-person meetings now being increasingly operated via video calls with Zoom and other service providers even though the peak of the pandemic is over. Some owners were reluctant to participate in these remote types of voting during lockdowns but have become so familiar with the technology that they now embrace it and find it easy to use.  

Zoom has become available and widespread substitute for physical meetings, and, indeed, the strata legislation and regulations permit such voting via Zoom and email without the requirement for a resolution adopting such means of voting. This trend is likely to continue as it provides convenience, comfort, safety and security to owners.

2. Strata Insurance Market

The Strata Insurance market has been experiencing considerable rate rises and obtaining cover for some schemes has become increasingly difficult.

Major losses across the insurance industry, in particular the strata space, have seen insurers forced to increase insurance premiums and tighten underwriting guidelines on properties that have experienced high loss ratios and frequent claims, as well as those with defects or maintenance issues.

These market conditions are likely to continue through 2023. For strata schemes that are deemed high risk special policy conditions are being applied in order to obtain cover. High risk categories include polystyrene sheets and aluminium panels. Further, if your building has defects or a large number of claims, your building can be placed in a high risk category.

Insurance markets are cyclical and there are practical solutions an Owners Corporation can follow to help move the building out of the high risk classification. Engaging ongoing and regular maintenance, reduce the number of claims, and attend to all outstanding defects. Speak with your Strata Manager to find practical solutions on achieving better outcomes for insurance cover.

3. Rise of Electric Vehicles

Strata Community Australia has just published the industry-first strata “state of play” report on electric vehicles which are rapidly increasing in popularity.

The article states interesting facts and statistics about EVs including:

Electric vehicles are projected to account for 49% of total vehicle sales in Australia by 2030 and 100% by 2040!

The electric vehicle market share in Australia grew by 65% in 2022

 Strata and community buildings need to consider how to ready themselves for the new demand for electric vehicle charging stations and how their building’s infrastructure will support energy consumption and how such consumption will be metered.

 Speak with your strata manager for assistance with energy audits and legal requirements to cater for this trend.

The full report may be accessed via the link www.strata.community/electric-vehicles-in-strata

4. Strata Communities – a growth sector

According to data contained in the Australasian Strata Insights report, from the time strata title property ownership was first introduced in Australia around 60 years ago, the number of people choosing to live in strata has continued to accelerate.

There are now over 84,000 strata schemes in New South Wales and it is estimated that over 50% of people living in Greater Sydney will be living in strata by 2040.

Strata data states that Australia is home to some 3 million strata title lots with an insured value of close to $1 trillion which underlines the economic value of the strata and community sector to the Australian economy. Property Council of Australia reported that the collective value of Australian strata properties is close to $995 billion.

5. Strata Hub Update

The 31st December 2022 deadline for reporting to Strata Hub is nearing and the payment $3 per lot for the 2022 calendar year is now due.  

It is important that all Owners Corporation’s meet their legal obligations and avoid penalties for non-compliance though penalties won’t be imposed until the end of June 2023.

From 30th June 2023, penalties may apply if strata schemes have not completed their reporting. 

NSW Fair Trading provides information and support to help strata schemes understand and complete their reporting – visit  nsw.gov.au/strata  to read more.

Premium Strata Office will be closed from Tuesday 20th of December 2022 to Wednesday 11th of January 2023. Our team will return to the office on Thursday 12th January 2023

Should there be an emergency during this period, please refer to the emergency trade list located on the notice board within your building or alternatively please contact our main line on 02 9281 6440 which will be diverting for assistance.

For schemes who have onsite management, please continue to contact your building manager for assistance in relation to repairs and maintenance.

Wishing you a festive season, and we look forward to servicing your strata requirements in the new year.

Top Tips Living in Strata

Top Tip 1: – Get Involved

Get involved in your Strata Scheme so you can be part of the vital decisions being made for your building.  Attend or give your proxy for all Owners Corporation’s meetings.  If you would like to be a part of but don’t know how to be considered for a role on the Strata Committee, contact your strata manager who would be pleased to assist you to understand the process.

Top Tip 2: – You Live in a Community

Understand you live in a community. The number of complaints lodged with NSW Fair Trading has been increasing each year. This typically includes disputes over parking, pets, noise and smoking. Be mindful that communal living requires tolerance and consideration of your neighbours

Top Tip 3: – Renovations or Alterations to your Lot

Before making any alterations or renovations to your lot, no matter how minor you may think they are, be sure to get approval first.

There are different legal levels of approval you are required to obtain depending on the nature of your renovations.  Contact your strata manager who will guide you as to what type of approval you need as this will help your renovations go as smoothly as possible.

Q & A – Airbnb

Question:  The holiday season is here, and many owners will be offering their apartments as Airbnb rentals. What are rules and regulations governing short term rentals in strata schemes?

Please note that Owners Corporations can adopt by-laws that limit short-term rental accommodation in their strata scheme, by banning it in lots that are not the host’s principal place of residence.

However, if you reside in your strata lot as your principal place of residence, you will still be able to rent out your strata home or bedrooms while you live there, or while you are on holidays yourself.

Following extensive consultation with the community and holiday-letting industry, the Short-Term Rental Accommodation (STRA) framework has been finalised. The new regulatory framework seeks to ensure local communities continue to enjoy the economic benefits of STRA, while managing potential adverse impacts.

A.  Suite 3, Level 2, 189 O’Riordan St Mascot NSW 2020 T. 02 9281 6440  info@premiumstrata.com.au

www.premiumstrata.com.au