Owners Corporation Network Making It Happen Seminar 9 November 2013 Kirribilli Club, North Sydney Presentation Adding Value through Common Property Upgrades Gordon Streight Chairman Executive Committee Bauhaus Apartments 209 Harris S treet Pyrmont NSW 2009 0430-311-311 gordon.streight@ whynot.net.au
Unique Selling Proposition 1
Responsibilities of an Owners Corporation STRATA SCHEMES MANAGEMENT ACT 1996 - SECT 62 62 What are the duties of an owners corporation to maintain and repair property? (1) An owners corporation must properly maintain and keep in a state of good and serviceable repair the common property and any personal property vested in the owners corporation. (2) An owners corporation must renew or replace any fixtures or fittings comprised in the common property and any personal property vested in the owners corporation. (3) This clause does not apply to a particular item of property if the owners corporation determines by special resolution that: (a) it is inappropriate to maintain, renew, replace or repair the property, and (b) its decision will not affect the safety of any building, structure or common property in the strata scheme or detract from the appearance of any property in the strata scheme. Adding Value through Common Property Upgrades The “little” things create a picture of your building Look at your building as if you are a prospective buyer/ tenant • check for marks on wall, carpets • light fittings not working, bulbs burnt out • cobwebs • weeds in the garden • broken glass • squeaky door hinges, loose door handles • consistent smells • rubbish in the car park or fire stairs or around the building • garbage bins full • unwanted junk mail near the mailboxes 2
Adding Value through Common Property Upgrades The “bigger” things start to add real value A short list of possibilities • add special lighting in key areas • improve the gardens – make a statement • use colour in areas that are normally bland – the carpark, lift doors • upgrade internal signage • add additional signage if appropriate • improve existing security facilities • add new security measures • upgrade intercoms to include video • Identify energy savings opportunities – the “low hanging fruit” Multi-lingual Signage Upgrade Mailboxes With Secure Keys 3
Build an Art Collection Upgrade Building Signage Upgrade Foyer 4
Add Great Gym Equipment Office Equipment Upgrade Building Management System 5
Interesting Value-Add Opportunity Management Office expansion Process • Research with Sydney Council • EC developed initial concept • Quotes obtained for concept • Plans drawn by Architect • Obtain fully developed quotes • Presented to AGM for approval and funding • DA submitted to Council Key Stats • $40,000 for car space • $22,000 for works • $1,800 for Architect • DA approval 8 weeks • Air conditioned, carpeted • Custom built furniture • IP networked • 2 sides glass with visibility to car park Interesting Value-Add Opportunity Buy back the roof-top Process • Identify opportunity when Telstra asked the EC to sign a lease for roof-top comms towers in 2003 • Developer insisted on exclusive use bylaw for rooftop • Read & understand the lease • Read & understand SSMA in relation to exclusive use • Read & understand the Corporations Act • Meet with lawyers to discuss options • Negotiate lease in OC’s name only, rent split 50:50 with developer • In 2007, developer company when into liquidation • Started negotiations with liquidator in 2010 • Settlement terms agreed June 2013 Key Stats • 20 year lease with options • $21,500 in legal fees • $66,000 final payment to liquidator • 100% of rent to OC • $60,000/yr rental income increasing at 5%/yr Adding Value through Common Property Upgrades Gordon Streight Chairman Bauhaus Executive Committee 209 Harris Street, Pyrmont 6
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