(Updated 2023-05-18) Strata Charged $400+ for Aircon Installation Approval

Update at 2023-05-18:

I replied I'd like to wait until AGM and confirmed again if there's $165 required to add my aircon approval to next AGM discussion.

Here's the strata reply:

Thanks for your email, yes as per the management Agreement there is an admin charge of $165 to review the application, prepare the motion on the AGM agenda and finalise the paperwork and save on the building file.

Currently I raised a complaint on the strata's website. I texted our Committee chairman yesterday and there's no reply yet. Will wait and see.

Thanks for your all advices and encouraging words! Thanks for letting me know it's something out of ordinary and unfair. It gives me courage to action.

=======Update at 2023-05-17=======

The strata manager send the by-laws, claimed that there's legal requirement to hold a strata committee meeting for aircon installation.

I read the by-laws, and point out there's no word saying that the meeting is necessary.

Here's strata's reply:

Please seek your own independent legal advice, I have provided you the correct guidance, approval is required at a Stata Committee Meeting for your renovation or alternatively at an AGM.

A charge of $165 for Admin will be charged to add your Minor Renovation approval to the AGM.

I don't really mind to hold my application until AGM, however it seems out of reason to charge another $165 admin fees just for bring my topic to the meeting.

Is it legal for a strata to do so? I have already in touch with the committee and currently waiting for response. Is there other thing I can do?

====== Original post ======

So recently I want to install an aircon in my living room. I obtained license from aircon contractor, prepared illustration of installation, filled the approval documents, etc. I have done that before for my bedroom, and the last time my application was approved by 4 committee members without any additional meeting and charges.

This time, after I send my documents to the strata, it says I need to pay $132 for the meeting and $280.00 for the issuing of notices and minutes for the meeting approval.

Fllowed by my further enquiry, here's the strata's reply:

A Strata Committee meeting is required to approve your minor renovation. As the meeting is required by you only, the for the approval of your renovation the meeting is charged to your lot $132.00. The postage of notices and minutes on the meeting are also at your cost, normally these are $16.50 per lot as the meeting is to be by electronic voting, I can adjust this down to $2.50 per lot for the Agenda and Minutes $280.00.

At this time, I have not charged for any admin in processing your application and communication with you. This is normally charged at $165 per hour min 1 hour charge.

I'd like to understand, is it reasonable to hold a strata committee meeting just for an aircon installation? There's nothing special to my aircon installation (outdoor unit is on my balcony), and the last time the strata just send my application to the 4 committee members and then it was approved.

Also, is it reasonable to call for $165 per hour 'communication fees' just for my application emails?

I'm in Sydney and now kind of at a loss. Any tips and advice will be appreciated.

Comments

  • +41

    Sell apartment. Buy house.

    • +45

      Get job on strata $$

      • +4

        Please explain

      • +8

        Council doesn't charge for aircon installs though.

  • Are you a member of the strata committee?

    • +2

      No. I have asked one who is and he seems have no idea how these charges work…

      • +2

        Looks like the cost is to hold an extra ordinary meeting for the minor capital works. There should be a new bylaw to vote without the meeting.

      • +8

        It's normal. Extraordinary General Meeting is required to get the approval from other units' landlords. Not to mention if you can't get enough approve votes, you might need to repeat the whole process for another EGM.

        Happened to me before. I waited a while and put that as a motion in AGM. No charge. It's almost EOFY. AGM shouldn't be far if you can wait it out.

        • +2

          Why can't they offer to check for approval at their usual meeting time ?

          • +2

            @IgorPrev: The AGM is the usual meeting time.

            They have offered to put it on the AGM agenda, however at a cost of $165.

            Seems excessive, but there is admin work in typing up and placing items on the agenda.

            • +8

              @Extreme: What a load of crap. It's 5 mins work to close this out end to end.

              The strata company is a dishonest, fee gouging piece of crap. If you just blindly accept this crap, pretty soon dmore vultures flock to pick the bones.

              • @borrisz0r: Yep, awful strata company, OP should raise this with the owner's corporation at the earliest convenience and make sure the exec committee look into replacing them.

      • +2

        I'm on the strata committee for my building and we've never charged owners a fee to discuss an application for minor works at a strata meeting. If you can't wait for the next general meeting and would like an extraordinary meeting held with the works as the only non-standard agenda, then fair enough. But a fee to discuss at the AGM?

        I suppose a different strata might have such a fee but surely it would be in writing somewhere, maybe they would have made a by-law for it. If it's not written down anywhere, what's stopping people on the committee charging other owners but doing their own for free?

        I would continue to ask questions about this. Maybe check past meeting minutes to see if there's been any other applications for minor or major works, then check the corresponding account statements to see if any fees were paid for those to be discussed.

        As a committee member I would oppose any fees to add something to the meeting agenda. That sounds like a good way for an unscrupulous committee to abuse their power and suppress discussion of things they don't like by putting in a payment hurdle first.

  • +16

    Wait and join the next scheduled meeting and attend it with your request.

    • The next meeting is holding in Sep and I still will be charged for $165 admin fees.
      Not sure what that exactly the 'admin' means though.

      • +6

        Did you indicate a date or otherwise make it sound like the installation was urgent? The meeting fees should only be charged if a meeting must be held especially for approval of the installation. Clarify with the strata committee that you can wait until the next AGM for approval. You shouldn't be charged a fee then.

      • +3

        Strata management may charge for extra work they do outside their annual admin fee. Holding annual meetings with strata committee members is normally included in that. If at the meeting the board agrees with your proposal, then your strata manager should add that decision into the minutes of meetings. There is no extra work involved so should no be extra charge and you don't even need a hard copy of the minutes of meetings.

        NB Don't forget to give them a notice you are going to be attending the meeting.

      • You could propose a motion to remove the $165 fee after you pay a $165 admin fee to add the proposal to the AGM agenda. :P

        The admin time of billing you the $165 is probably as great as the admin time of putting it on the AGM agenda and minuting the vote, so it makes more sense to build these costs into the annual strata fees.
        However, if strata want to structure their fees this way I don't see any barrier to it.
        It probably reduces nuisance proposals.

      • +2

        If the meeting is in September, have they sent out the agenda yet? My strata manager usually send out an AGM notification a few months ahead, asking landlords if they have any requests they would like to put into next meeting's agenda, usually for free, before they finalize and send out next meeting's agenda. Has your strata manager done that?

        Either way, there will be a motion in AGM to change / continue using the strata manager. You can use that opportunity to motion a change of strata manager due to the unreasonable fees.

        • This^ :-) Your $165 is for an hours work they said. Don't put in just one motion, think hard of anything else you might want and get approval now, and then when you email them back to say you would like to pay their $165 fee to put your AC on the AGM agenda also say you would like to put a motion to change the strata manager and a third item to hold a review of charges on the agenda also. Get your moneys worth and p1ss them off!
          PS They aren't going to charge you $165 for AGM - unfortunately it will somehow end up being more as I'm sure they will want extra fees for something after the meeting…

  • +5

    This is the outworking of people in strata situations wanting to have control over what others are doing.

    There was a time (no that long ago) where these sorts of things didn't need approval of any description. Now, because busy bodies want to ensure they are not inconvenienced in any way or for any amount of time, all this "governance" gets overlaid.

    I'd like to understand, is it reasonable to hold a strata committee meeting just for an aircon installation?

    The above then means, unfortunately, that a "meeting" needs to be held on the matter. The "meeting" will likely be either entirely electronic, or even more likely conducted entirely via proxies. The outworking of it though, is that a strata manager is obligated to convene a meeting, prepare minutes, etc. and these charges come with that.

    Now, we all know this is effectively going to be rubber stamping, documents are all pre-prepared templates, etc. (so it's money for jam for the strata manager), but given the way the law has changed, this is the outworking of it all.

    • Tbh this sort of governance has a need.

      You don't want people willy Nilly drilling holes in the walls of apartments and doing whatever they want.

      Without any sort of control you'll get people installing their own air con, then their own gas pipes and then when it goes boom who's paying for it?

      • +13

        Yeah, it's a jump from

        I obtained license from aircon contractor, prepared illustration of installation, filled the approval documents, etc.

        to

        installing […] their own gas pipes

        • prepared illustration of installation,

          I wonder if he did this through MS Paint? It is the preferred method for most stratas. If you use something else they might charge you.

  • +1

    In hindsight probably something you could have asked to be reviewed at one of their regular meetings.

  • +17

    Forget about the strata and just get the thing installed. :)

    • Not sure if my aircon contractor will do the installation without strata permission… Will ask them if not work out with the strata.

      • +15

        They will do what you tell them to do. Strata approval is your own liability, they shouldnt care.

        Your strata laws to charge for approvals is nuts

        Ask them do they need to charge you to breathe the air in the common property?

      • +2

        This is going to bring a world of hurt upon you.
        If you don't like the expenses of getting pre-approval, how will you like having to get an unapproved modification removed or approved.

        • Who is going to know. Plead ignorance if you get caught… :)

          • +2

            @trapper: after being told the cost of doing it by the book? So amnesia is your recommended defence?

            • +1

              @SlickMick: I agree would have been better not to ask first.

  • -1

    Also, is it reasonable to call for $165 per hour 'communication fees' just for my application emails?

    Just tell them you'll pursue the application further, only without communication. (Make sure you do this without communicating with them).

    If they don't abide by this, say to them "I think that amount isn't reasonable" and then they'll say "alright" before they invoice you.

    Just don't let them stretch the "alright" out to a full 15 minutes or anything stupid, because that's like a $42 alright right there.

  • +11

    Our strata pass these types of minor requests by email - no meeting necessary.

    Given they're saying its "online voting", I would imagine that's exactly what they did in this case. Completely unsure why a meeting was necessary - that's something you can push to clarify, and request a copy of the minutes (given you're an owner)

  • +26

    What a crock of sh!t.

    I am on a strata COO and we have never needed a meeting for this. The strata manager just sends an email outlining the details and attachments and we respond in kind.

    Calling for an extraordinary general meeting is overkill.

    • +2

      Yep this - sounds like OP has terrible strata management in their building taking tenants for a ride. I would seriously start socialising with the committee members to raise agenda for replacing strata at the next AGM. Don't be emotive just be completely objective about your experiences and their unreasonable fees - chances are if they are pulling this crap with you they are doing the same with everyone else and everyone will only be too happy to switch.

      It's hard work but doable - we changed strata company at my last apartment building from Colliers who we just horrible to a small boutique one close by who were so much better. Strata company's assume that no one will challenge them because it's too hard and people don't organise, so they get lazy and greedy. That moment you see their reaction when they realise they've lost the business… that is an irreplaceable experience.

  • +14

    Classic example of how roles, such as Strata managers are ripe for replacement by AI like ChatGPT bots
    I for one welcome our future strata manager AI overlords.

    • The charges will remain, or increase to pay for the 'transformation'

      Everyone profits.

      No value added in the zero sum game where the only outcome is:

      Rentseekers & Robots: 1
      People & Society: 0

  • -3

    You do not need strata approval to install a windowed aircon.

    • +4

      Maybe not at your location, but they obviously do in OP's building

      • +1

        I think you have missed his point. He means a box one, not a back to back.

        • exactly. The strata is considering this as renovation which in fact it is not.

  • +14

    hey if you have to pay, make sure you let them know you want to attend the meeting and will expect the time and location to be provided. Hell, if they are going to screw you for a rubber stamp job, make sure the board members have to turn up and waste their time too. And if even one doesn't turn up ask for your money back since you paid for the board, not part of the board.

    • Make sure you don't have to pay for the Tea and Bikkies either.

      • +9

        Lol. Turn up and pocket as much stationery as you can.

  • +2

    bikies

  • +3

    Tell them to get farked,

    Is it in the terms of agreement or have they just picked it out of thin air.

  • +12

    I would ask them to:

    1) ask the committee to consider the issue and provide approval via email rather than at a meeting given that it is a standard type of alteration request to the premises.
    2) ask the strata manager to have the committee confirm that the proposed pricing is appropriate for this kind of request, including that this sets a precedent that the committee members will pay an equivalent amount if they wish to seek approval for a similar alteration request outside of a scheduled committee meeting.

    See how long the stratamanager keeps the contract when the fact that they're imposing these kinds of costs on residents comes out.

    • +2

      Thanks for the advice!

      I just replied the strata by your points and also text the strata committee member I know. Hope that will solve the thing.

      • +5

        Should have also asked when the strata contract is up for renewal!

  • +5

    not even my medical specialist charges that much for a consulation.

    • +1

      Maybe strata should bulk bill?

  • You need to join this committee and get involved with strata or who knows what they are going to come up with next, see where your strata fees are going.

    • +1

      Yeah thanks, do you have an extra few hundred k for everyone here living on strata to upgrade to a place that has no strata?

  • +5

    Remember, sometimes it is easier to ask for forgiveness rather than to ask for permission.

    • This!

      Get it installed first and hope no one finds out later.

  • Wait if the outdoor unit is on your balcony and the balcony is on your title, and all elements of the install are completely on your title, there is no need for strata to approve this request at all?

    • +2

      i think some have defined scope of owning up till the layer of paint but not the wall itself hence any penetration or even the tidiness of your balcony from public sighting are managed under strata rules. (laundry drying rack/rope, etc.)

      Approvals also required for any hardflooring (timber/tiles/vinyl planks) to achieve sound insulation from unit under.

      • +2

        We didn't even ask for approval to do out timber flooring. We knew it'd be a pain in the butt to get such permission as every committee member thinks he's an expert on what's right and wrong. So we studied the construction laws, chose an underlay that meets the strictest of the regulations and used it. It wasn't cheap at all but saved us a lot of time of going trough the negotiation process with the committee. At the end nobody objected our decision though even if they did the job was done with approved materials and the rest was not our problem.

      • I always thought the laundry dying thing was a crock. Most places don't offer an alternative. Plus I've lived in places where people ignore that rule and strata does nothing about it but give stern looks in the hallway.

      • Yeah every strata is different for sure. I think the newer ones with tens or hundreds of units are very different to those older ones with a dozen or fewer.

    • It isn't about who owns it. The body corp can also have rules like whether you can hand washing on balcony, and particularly what kind of aircon you can install and where.

      • Well, it partly is about who owns what. But every strata has their own rules. If you’re in a strata with no bylaws and just model rules, there’s not much they can say no to if you’re wholly in your title. That’s much more likely for older properties with fewer on a block too.

        • Yeah, I'm just talking about this scenario, where the strata does have rules.
          I'm not sure what you mean by "model rules", but rules aren't limited to bylaws. I gave an example elsewhere in this thread, where a new estate had requirements for a heap of things like allowable paint colours and fence requirements. We bought an existing home 20 years later and they were still in force - the real estate agent said we could not purchase without being subject to these rules.

  • +1

    OP, get a copy of your strata bylaws, find if anything re aircon and take it from there. The fees paid to the strata agency depend largely on their contract with your body corporate. It's not one size approach.

  • +1

    Sounds like the strata has a strata manager and the $$$$$$$ if from them milking the system w.r.t. the managing agent (outside company) wanting to get call the EGM meeting and then them sending out the results.

    As you are in OZ call you state department that looks after strata and ask then if this is legal and is there any legal way to reduce the cost.

  • Its sufficient to hold a strata committee meeting (which is just the 4 members) for a minor renovation, whereas if the strata committee doesn't approve the renovation or you are doing a major renovation, you would put it to a extra ordinary general meeting which would invite all owners.

  • they are all bullshit and grubs

    but to help others out in your complex, just vote in a blanket policy to allow aircon installation without vote that way next person that does one don't cop the fees

    • Yeah that's what I'm going to do if there's no other way to solve that. At least to specify that no meeting required for an aircon installation.

      • something similarly happen when NBN was introduced and a vote had to be in place for every time someone wanted to install NBN for the first time. of course everyone should be entitled for it to be installed so it was a no brainer for it to be a blanket policy

        ya next AGM you should vote in that body corp can't do any EGMs without 50% approval ha or small matters less than $x do not require meetings and emails are required from owners

      • while I agree this seems shite, especially when you aren't doing anything unreasonable. You probably need to think in terms of what other less reasonable people would do, e.g. large noisy external units or eyesores, self installed dodgy garbage etc. this is why a lot of these seemingly ridiculous rules came in and the fees to make people think about it rather than just constantly throwing requests at the strata and chewing time.

  • +2

    Please seek your own independent legal advice

    He told you to go (profanity) yourself. You've got an enemy which is probably a bigger problem for you than this fee.

  • +2

    This is bullshit

    How old is the apartment?

    Sounds like the strata company is trying to make money off you (times are tough these days)
    I would seek a strata lawyer for help on this, OR go it alone and seek fair trading mediation first then if fails go to the tribunal.

    Charging $400 for approval is out of this world! Do they charge for floor board or carpet change approvals as well? What about lighting fixture approvals?

    Tell them to go root their own arses

    My place doesnt have any of these so called approval costs, apart from asking for approval and filling in forms (pain in the arse) thats just about it.

    • It's an old building from 1999, with 50+ units and 6 committee members.
      Lawyer will be the final step, if all other attempts failed…

      My place doesnt have any of these so called approval costs, apart from asking for approval and filling in forms (pain in the arse) thats just about it.

      It used to be like this, about 1 year ago. The strata manager at that time just passing through my documents to the committee member and get approved. That's it.

      It's the first time I speak to the new strata manager and suddenly those fees coming… I raised the complaint and hopefully it's individual behavior rather than the company's.

  • +3

    Reading this made me so angry. People should be free to do whatever they want their their own property. Strata/HOAs/land covenants/building permits should all be illegal.

    • +2

      Then just avoid the neighbourhoods that go to hell I guess??

      I'm not allowed have a front fence. I'd like a front fence, but it would look weird no our street.
      I'm pretty sure I'm not allowed a box air conditioner either.

      I'm glad for the rules. I never have to worry about neighbours filling their front yard with car wrecks and devaluing my house.

      When you see an apartment building with box air conditioners scattered all over the front vs the one next door without, which is going to attract a buyer when it's time to sell?

    • +1

      'People should be free to do whatever they want their their own property'

      sure - the issue is common property - air-con drilled into common property walls as possible sources of noise - condensation drain pipes possibly dripping into common property

      and 'appearance in keeping' which is a standard strata by-law meaning you can't change the appearance to look different from other units in the same complex - without approval from the committee

      etc.

  • +6

    In the next AGM propose an agenda item to remove the current strata manager.

    • Was just about to post this. Sounds ridiculous. I’ve been told it’s a mere courtesy to let the body corp committee know I’m replacing my AC/flooring. They have no formal requirements in the by law other than noise so I just got one that’s quieter than my existing one.

    • This will be difficult if the strata manager has a majority support.

  • In Qld, the committee has an option called "Vote outside committee meeting". The results of the vote are circulated to lot owners via a "flying minute". You can read about it here: https://blog.hyneslegal.com.au/news/voting-outside-committee… I'm not sure if there is an equivalient in NSW, but it would be worth finding out, given the exhorbitent charges the Strata Manager is intending to impose.

  • -4

    OP signed a contract with the strata when they purchased the property. Said contract has a schedule of fees. Dunno why theyre complaining about the fees now.

    Reasonable? Subjective

    • +1

      Not an expert, but sale contract mentions adjustments and strata obligations, but NOT actual fees?
      Solicitors usually research strata plan/fund health before purchase, but that is just current balances and past fees.
      Future fees are all up to mgt. committee and their decisions (guided by strata manager) ???

  • Have read the update in the OP: install the air con without approval. Doubt the strata manager will notice. If you are on good terms with your neighbours, they won't dob/complain.

    • Aircon contractor will not start the work until strata approval happened…

  • +1

    And would they ever refuse you? Of course the answer is yes you may install the aircon. What a ridiculous thing to need permission for. If they see the outside unit and complain just tell them that is your personal belonging and will be taking it with you when you're done, it's just sitting there temporarily… and i bet you're not the first unit either!!!!

  • Sounds like you start reaching out to other owners, as well as standing up at the AGM, to let them know their strata is acting against them.

    Let the manager try to explain their extra fees directly to a bunch of people who already pay them to do the exact admin work you are asking for.

  • +2

    I hate this about apartments it's why I sold and will never buy another one.
    I eventually joined the committee of my previous apartment and we approved minor works ALL the time via email correspondence without charging owners. Sounds like you have a dog sh*t committee.

    FYI - All sorts of crooked stuff was going on prior to joining my committee… we had a dodgey strata manager outsourcing work to dodgey tradesmen draining our sinking fund with unnecessary works, and were hit up constantly with special levies. One of the committee members operated a cleaning company which he pretty much paid himself for at our expense and the cleaning work was garbage.

    It was pretty stressful to get it all straight. I invested a lot of my time to fix it. (door knocking literally all the owners who lived in the building to get signing a petition to push for strata manager change). In the end it was successful, we got a new strata manager and dodgey cleaner mate sold his apartment the next month since we ditched his crappy services. - felt good but nothing I want to do/experience again.

    Sold the apartment in good standing and now a Happy home owner thank goodness ;)
    tldr - try get on the committee if you're planning on staying long term.

    • +1

      'try get on the committee if you're planning on staying long term'

      exactly - you can complain and nobody cares

      or you can get on the committee - and get it fixed without delay.

  • +1

    We used to have a crappy strata manager. We got quotes from other companies and ditched them at the AGM.

    • This - comparing their pay with the actual job they do makes it look like a scam. Just shop around for other managers.

  • I don't really mind to hold my application until AGM, however it seems out of reason to charge another $165 admin fees just for bring my topic to the meeting.

    The poor man needs to be feed . Another $165 is peanuts vs getting legal representation. .

  • +1

    The only reason I would know of that installing a air conditioner require an AGM is if you have no balcony of you own and you need to put the outdoor half of the air conditioner on to common property like the roof or wall outside of your lot. They need to make bylaw to allow you to benefically use common property exculsively for your lot.

  • +1

    You giving strata too much power. Just install the damn aircon and ignore if they complain. Most bylaws are bs and not enforceable. I’d only ask for approval for major work like change plumbing, take down a wall.. etc or you’re sticking aircon on a common wall.

  • +1

    I can't believe the audacity in the sentence "Please seek your own independent legal advice". I would just go ahead and install the aircon OP. I am not sure what things they can enforce and charge you but it surely won't be $400+ as it was their decision (not by your request) to talk about allegedly unapproved aircon. If they do take any action against you, I'd then go a small tribunal.

  • What is name of Strata Management company?

    • +1

      STM - Strata Title Management

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