Case Study : Strata management for run-down building

Primary service : Strata Management

People who have investment properties in multi-residential dwellings like apartment blocks have a vested interest in keeping the whole building well maintained – as the building’s condition contributes to the property price of each apartment.

For a block of apartments in Larkin St, Camperdown, maintenance was becoming a real issue thanks to an underperforming, ill-equipped strata manager. Insufficient cleaning and maintenance was adversely affecting the property price and living conditions for all residents.

The Executive Committee of the Larkin St building called in CPS, who has transformed the way the building is managed and saved the Committee $84,000 in annual cleaning bills.

Challenge

There was a long list of complaints about the previous strata manager at the Larkin St building, including:
  • Poor cleaning
  • No security on the car park or doors
  • Expensive tradespeople who were not managed properly
  • Overpriced building management and cleaning contracts
  • Major defects left unattended e.g. fire pump and fire doors.
Some of these were serious issues, voiding insurance policies and causing the building to contravene the Building Code of Australia.
Clearly, the Executive Committee had every right to be unhappy with their strata manager. They sought a new manager to bring the building up to a suitable standard, so that the “Home Owner’s Warranty” claim could be lodged for building defects; and to lower the costs of building management while improving the quality of cleaning throughout the building.

Solution

The decision to switch to CPS Strata Management quickly paid off for the Larkin St owners.

CPS is experienced in dealing with strata issues, and handled the needs of the building professionally and quickly. Major changes were made in the building’s management:

  • The cleaners were replaced
  • All contracts for building utilities were reviewed, with new contracts put out to tender
  • A professional building company was engaged to report for the Home Owner’s Warranty claim
  • Specialist strata solicitors were engaged to guide the building claim process
  • Security was reviewed with changes enacted.

Ongoing management includes a defects plan – whereby defects are noted and actioned to ensure repairs and improvement are taking place (eg waterproofing) in a proactive manner.

Result

Since CPS came on board, Larkin St’s owners are now more involved in managing their building and all residents feel safer.
Significant cost-savings have been made, with $84,000 saved on cleaning every year and the cost of strata management falling. Yet no corners have been cut – the level of security and cleanliness has vastly improved and residents state that they are much happier living in the complex.
The Executive Committee said: “We felt so much safer dealing with Margaret and Shaun, who saved us money and improved the overall condition of the property. We are no longer in the dark regarding our building, and the transparency of CPS’s service means we all understand our responsibilities as property investors in a strata scheme.”