re: Leet managers refusing to reimburse

Hm, do I have any reasonable hope of going to the Dept Of Fair Trading with this?

-----------------
Summary of post:
Real estate agent organized emergency repairs to the garage door
without realizing it was common property. Strata manager refuses
to compensate me because they insist their own tradesmen should
have been used rather than the real estate's.

I own a unit in a block of flats, and rent it out. My real estate
agent pretty much handles all communication with the tenant, including
organizing all repairs.

The tenant has had the garage broken into a couple of times, and
the real estate agent contacted his locksmith in an emergency each
time to secure it again. I'm told the police were involved as well,
so it wasn't a minor incident.

Normally a strata manager claims insurance and pays
for any damage to common property,
But the strata manager refuses to do it for this one because the
real estate agent called his own locksmith to perform the fixes and
the strata manager claims the cost was too "expensive"
($110! They reckon $50 is a more reasonable amount) and that
real estate agent should have contacted them first for their approval.

Basically the strata manager said that that for damage to the common
property, one of their own tradesmen should be used, not the
real estate agent's .

After hours the strata managers are not contactable in any way,
but they did previously mail out to all owners a list of tradesmen
that they say should be used for emergency after-hour repairs
(whether to the common property or not). In that mail they did
also mention that if repairs to the common property are done without
their approval, I might not get reimbursed .

Is this reasonable and enforceable? I certainly don't think it's
reasonable for the real estate agent to have to carry around lists
of tradesmen after-hours for each strata manager that they have
to deal with.

The only thing that I can think of that may work, is for the *tenant*
to keep this list handy, and in an after-hour emergency
the tenant MUST either call only a tradesmen on that list, or advise
the real estate agent that he MUST do so.

The real estate agent has said that he often handles repairs to
the properties that he looks after, and the appropriate strata manager
then simply approves it. But he was quite taken aback with this
particular strata manager, saying that they're very difficult to deal
with (from my experience, I second that opinion).

The problem here was that the real estate agent mistakingly didn't
realize that the garage door constitutes common property. He said
so to me initially, before we found out that in fact it is. Had
he realized that, he said, he would have at least tried to contact
the strata manager before organizing repairs.

When the agent subsequently spoke to the owner of the strata managing
company, he said that he was told that I should sent the invoice to
them and that it "would" be approved. This must mean they "would" only
consider it, because the actual strata manager employee that
we've dealt with obviously did not approve it.

The strata managers did not even have the decency to contact me to say
that the reimbursement was refused. I waited for weeks until I
called them about it. It's not just the $110 -
unfortunately during that time, the garage door was broken into
a second time and this time the cost will be much higher because the
locksmith also applied some strong bolts into the ground to
prevent further break-ins. Since the real estate agent had no reason
at that time to believe that the initial $110 would be refused, he went
ahead with these repairs as well.

What choices do I have here?

a) Since the real estate agent didn't realize the garage door was
common property, he's somewhat responsible I guess. If I can't
get anywhere with the strata manager, should I try to get
at least some of the cost reimbursed from the real estate agent?

This is the only problem I've had with this agency - they're
quite good otherwise and I've had them for years.



b) The strata managers, on the other hand, are consistently bad.
I think they enjoy being this arrogant and inflexible.
The strata manager said that $110 for a garage door lock repair
was "extortion" , but the problem is that they are far from
any good themselves:

They're totally hand-in-hand with the owner of one of the other
units . Naturally, that unit has endless alleged problems
with leaking showers and busted pipes and they always
get compensated for them. The last time I made a
claim before this was about 9 years ago, and because
of an honest mistake by my real estate agent I can't even
get this current one approved now.

One year they had lawn & gardens cost at $2000, and that for a
year when the grass hardly grew. Now that's extortion!
We told them at the AGM to get this reduced and the figure
magically fell the next year to about $800.

After resolving at an AGM to NOT increase the general
administrative fund and sinking fund fees for the next year,
they sent out bills for two consecutive quarters with
charges higher than the previous year, as if we DID approve
fee increases in the meeting. When I pointed out that they
were overcharging, they sent out a letter to everyone
acknowledging this and stating that people would charged
a reduced fee for the next quarter - there was of course
no talk of them actually refunding the money or of
paying "interest" for their mistakes.

I could rant for a long while with other examples.
Can they enforce that we only use their tradesmen for common
property repairs? Does the Department of Fair Trading provide
any 'free' advice on such matters or will they immediately
refer me to the mediation process for which a fee must be paid?
(I believe the fee is quite small?)



c) Perhaps I could ask the strata manager what their own tradesmen would
have charged for these services (they reckon $50 for the first
fix, and I don't know how much they'd pretend the second fix
would cost), and try to get only that amount reimbursed?


One thing about the real estate agent - he never calls me to
approve any repairs, even ordinary non-emergency ones. Up to recently
I've had a family friend look after my flat and deal with the
real estate agent, so I'm not currently sure of the details of the
contract between myself and the real estate agent. "Should" the
real estate agent inform me before going ahead with any non-emergency
repairs? Can he refuse if I ask him to do this in the future?
 
Hi Kylieshines

The problem here might be that repairs to a garage door are not normally seen as an emergency. Why was it so urgent?

http://www.legislation.nsw.gov.au/fullhtml/inforce/act+138+1996+FIRST+0+N#ch.3-pt.2-sec.62

80C Exceptions in relation to emergencies

Sections 80A (1) and 80B do not apply to expenditure undertaken for emergency purposes, including, for example, expenditure to remedy any of the following:
(a) burst or blocked water or sewerage pipes,
(b) serious damage caused by fire or by storm or any other natural disaster,
(c) unexpected electrical or security system failure,
(d) glass breakages that affect the security of any building in the strata scheme or could result in damage to the inside of any such building.

Here is a link to the Dept of Fair Trading site that explains strata schemes

http://www.fairtrading.nsw.gov.au/realestaterenting/strata.html

You should also ask your property manager for a copy of your management agreement with them. The amount they can spend without authorisation from you is set out in the agreement. And note, that you can set this amount. I give mine $0 as I want to know what they are spending.

ani
 
Why do they keep breaking into this garage ?

Is it in a secluded area? Does it have valuables stored in it?

To me it seems odd to have so many problems with one garage. If it is in a dark corner or such, then to have extra security added could be seen as fair, I would think. If it used to store valuables (apart from a car) then maybe the tenant should chip in. The tenant doesn't park a Harley or a WRX in there does he?

The fact that it is not regarded as an emergency does make it difficult doesn't it.

Maybe you could negotiate to split the difference at $80

I have had some experience with "those" type of strata managers, the only answer in my opionion is to go elsewhere.
 
Hi Kylieshines
Firstly, you should have advised your PM to follow the list of approved tradespersons provided by the Strata Managers, but mistakes by owners who are not considered trained property managers should be handled with some reasonable understanding by the Strata Managers if they want to continue being the SM's. Get yourself on the Body Corporate and have a say in who acts as SM's for you.

You said it was an emergency, so the job had to be done by someone. You might get a locksmith to turn up for $50 on his own schedule, but I very much doubt you'll get that price if you ask one to drop tools and come immediately as an emergency. So, send a detailed invoice from the locksmith that even scroogy SM can read and understand, including mention of the request to come immediately. Add an apology for breaching the rules and your assurance that you will follow procedures in the future, and request payment because it is a Body Corp cost. If they refuse your reasonable request, then ask guidance from Dept Fair Trading, and take no prisoners.

Sounds like you need a different SM, one that serves it's master with more respect and understanding. If the BC is the master, make sure you are part of it.

good luck cheers
crest133
 
On site managers are often a thorn in everyone's side. I think they have acted disgracefully in this matter from your information. Unfortunately most of them have no understanding of providing customer service and are just grumpy and hard to deal with. Most locksmiths I know have a call out fee of $30-50 so I can't imaging having any work done for just $50. (I just checked with my PM and she said $50 is normal callout fee).

You described your agents as having been good over a 9 year period and the managers consistently bad, I know who I'd be attacking. Arrange with your agent what you would prefer as notification of maintenance issues. Some owners want to know everything and others only want to be contacted if necessary, it's a personal thing really.

I hope it works out for you.

Kev

www.kevinhockey.com.au
 
Thanks very much to everyone who replied - it is much appreciated
and turned out to be very helpful.

After some negotiation, the strata manager has decided to reimburse
the $110 for the first garage break-in, but not the $330 for the second
break-in. The latter fee included a garage door and lock fix like before,
but also the installation of two strong bolts to try to prevent further
break-ins. There haven't been any since then.

The reason they won't reimburse the $330 is because they see it as
an security improvement, and not just a repair. The invoice wasn't
itemized - it just said $330. I'd have to find the exact break-down but
as a guess the repair might be $110 as before, and then $110 apiece for
the two strong bolts.

Hm, if I can get an itemized invoice, shouldn't the strata manager
reimburse at least the garage door/lock portion of the cost again?

I suppose it sounds right that they won't reimburse the cost of
the two bolts though? Or would you disagree and say that they
should reimburse this as well?

And to answer some of the questions from various people:

> (From crest133)
> Get yourself on the Body Corporate and have a say in who acts as
> SM's for you.

I thought the term Body Corporate just refers to the group of
owners of the flats? If so, then obviously I'm already part of that
group by default.

Did you mean the Executive Committee? I'm already on that, but
unfortunately it consists of just myself and another owner, and
the other owner is buddies with the strata manager. I don't know the
other flat owners, and they never turn up at the annual general meetings.
I've raised this issue in another thread in this forum and have
received some useful replies about how to go about trying
to contact the other owners.

> (From ani)
> The problem here might be that repairs to a garage door are not
> normally seen as an emergency. Why was it so urgent?

I'd consider it a security emergency - no one would want
to risk having their car stolen or vandalized.

I don't think the SM disagrees with it being an emergency.
They're just being difficult because the real estate manager used
his own locksmith (not realizing a garage door was common property)
instead of the SM's.

> (From Macca)
> Why do they keep breaking into this garage ?
> Is it in a secluded area? Does it have valuables stored in it?
> To me it seems odd to have so many problems with one garage.

I can't speak for the criminal mindset. Someone broke into it twice
which is obviously one more time than anyone would expect, but
presumably the car is more than enough motivation.

Perhaps they found the locks easy to break, I don't know. I know
that some of the other tenants have also had their garage broken into
a few times some years back.
 
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