Splitting expenses to render building

Discussion in 'Legal Issues' started by Beach, 12th May, 2015.

  1. Beach

    Beach Member

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    Hi,

    Our building body corporate/committe is proposing we render our red brick building. This is required due to state of the bricks and has been recommended by 3 inspections/quotations. This is a block of 27 units with a combination of 1 bed, 2 bed and 3 bed units. Therefore, is not an insignificant cost.

    in principle, I'm in favour of the rendering - however I've been told each unit will pay an equal share of approx 28k as opposed to pay based on allocation of stata units. I.e the 1 bed has less stata unit allocations than the 3 bed.

    Should the expense be based on strata unit allocation or be an equal share of the expense? Can the body corporate legally force the 1bed units to pay the same the 3 bed/all equal share?

    Thanks for any assistance,
    Jay
     
  2. baby blue eyes

    baby blue eyes Vicki

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    I would have thought it is split via allocation of lot size, the three beds own more than the 1 bed and should pay more to the cost. Not to mention they bring potentially more wear and tear on common property with more people able to live in a larger unit
     
  3. jrc

    jrc Member

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    S.T likes this.
  4. Scott No Mates

    Scott No Mates ...and people wonder why?

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    Definitely a contentious issue. Do you split via unit entitlement (which may seem fair to some) others may want proportional representation based on proportion of wall that each unit has (ie windows/balconies etc add to the unit's liability) as a % of all wall including common areas. Equal liability doesn't cut the mustard.

    For ease unit entitlement is the easiest to justify and can be held up as the fairest way to apportion costs (geez everyone is up for around $1k)
     
  5. Beach

    Beach Member

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    Just to clarify it is 28k per unit if shared equally

    Hi Scott,

    Just to clarify, it is 28k per unit if shared equally. I'd be interested if anyone else has been down this road. I would have thought unit entitlement was the only fair method to proportion costs... But it is being pushed by many (who have 2/3 bed unit) to proportion equally. Be good to know where I stand on this one based on other peoples experience.
     
  6. S.T

    S.T Member

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    jrc has hit it on the head. Just show them that link and if I was a 1 bedroom unit owner I'd be fighting tooth and nail to NOT pay more than the lot entitlement.
     
  7. HD_ACE

    HD_ACE Game-Changer

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    756k to render a building :eek:

    Im in the wrong bussiness. Or get more quotes.
     
  8. S.T

    S.T Member

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    We just had a 4 unit block done for 9k, 2 stories.
     
  9. jkat

    jkat Member

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    Yes -- i would be getting more quotes because $28k each seems VERY excessive.
     
  10. Ace in the Hole

    Ace in the Hole Don't compete, Dominate !

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    Must be pretty bad to have to render.
    How's the state of the timber windows?
    And any balconies with possible ballustrades.
    It's all connected in some way.
     
  11. Scott No Mates

    Scott No Mates ...and people wonder why?

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    Geez. I'd seriously be shopping around for other prices. Even when you take into account the use of scaffolding and application of granosite etc that's a horrific price.

    You really need to get a proper consultant on board to review the scope and the extent of the remedial works.

    Payment by unit entitlement would be the only just methodology to apply.
     
  12. Paul@PFI

    Paul@PFI Tax, SMSF & Planning

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    Gold plating the exterior may be cheaper.
     
  13. lizzie

    lizzie when i grow up ...

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    I read it as total cost $28k ... so approximately $1,000 per unit ... perhaps Beach would clarify.

    A tricky one as, what if a one bedder was on a corner and had two walls rendered whilst a 3 bedder was in the middle of the block and only had one wall ...

    ... even as a unit owner, I agree if should be allocation basis