Townhouse block improvements through BC?

[FrankGrimes]

Hi all

I own a townhouse in a block of 4. The townhouses were built in 1985 and look somewhat dated. My question is, how do you go about organising improvments for a whole block?

My thoughts were getting the whole lot rendered, driveway re-surfaced and roofs resprayed. I was hoping to increase the amount of body corporate paid per year by all owners and over say 5 years get enough money to make the improvements.

Has anyone undertaken something like this? where do you start?

Regards

Grimey

 

[Dis]

A friend just went through a similar process. One of the other people in his block was keen to get everything rendered and repainted. They got a few qotes for the job, and then brought it up at the body corp. An estimate in how much you would value and / increase rent would probably help your case. All members in his block paid their part of the work rather than going via the sinking fund.

 

[chrispy]

I own a townhouse in a block of 10, they desperately need external painting so put this up as a resolution at the AGM, the Management obtained quotes of $2800 per townhouse and I was the only one to vote for it, 4 voted No and the remainder of the 10 did not even bother to vote.

So now I am considering applying to the Management for permission to just paint mine, they are built as 5 duplexes around a court. I am good friends with the neighbouring townhouse and they would agree to painting at the same time. I think its worth trying to at least lift our two

Chris

 

[Jacque]

If you're really keen, Frank, I'd be approaching the owners individually first with your quotes and ideas. Naturally, a formal meeting will be necessary to nut everything out, however if you can demonstrate that such improvements would add value to the site and all owners are financially able to fund the project, then you may be onto a winner. Good luck!

 

[handyandy]

I own a townhouse in a block of 10, they desperately need external painting so put this up as a resolution at the AGM, the Management obtained quotes of $2800 per townhouse and I was the only one to vote for it, 4 voted No and the remainder of the 10 did not even bother to vote.

So now I am considering applying to the Management for permission to just paint mine, they are built as 5 duplexes around a court. I am good friends with the neighbouring townhouse and they would agree to painting at the same time. I think its worth trying to at least lift our two

Chris

The reticents of fellow strata owners in not unusual, particularly if they are investors who never see the property. I have tackled this problem by approaching those investors who don't attend and getting their proxies. You would only needed 4 proxies to win the motion.

One problem with painting your own property is that you will still be liable up to your unit holding for any future levy when they finally decide to pain the properties.


Cheers

 

[sailor]

I used to own one unit in a block of 6 self-managed BC units. I regularly had "difficult conversations" with 2 of the other resident-owners who refused to do things like replace leaking carport roofs, replace the illegal pool-fence, and repair the disintegrating rusted rear stairs,gardening, etc. A 3rd owner lived out of town and never voted. No-one would agree to increasing the levies from $200 p/quarter/unit.

So in sheer desparation I bought 2 other units in the block. This gave me 3 votes at the AGM. I went gangbusters at the AGM with quotes I had obtained for repairs to get them on the minutes. They couldn't stop me putting up agenda items.

Finally the 2 difficult owners sold and moved away. Then I had a new owner who would not agree to the improvements. He finally sold. The new owner was more agreeable, but only interested in Flipping. So I made him an offer and bought a 4th unit in the block.

So, in the past 2 years we have had a garden makeover, new pool fence, new carports, and had the old stairs repaired and refurbished. We did this by:
a. raising the quarterly levies.
b. getting a professional body corp manager in place.
c. instigating a once off special levy (which we paid over 3 months).

The new non-resident owners are very pleased with their rental increases, and the improved state and value of their IP's. I should note that since the 2 difficult owners sold, their units have doubled in value over the 4 year period since they sold.

 

[FrankGrimes]

Thanks for all the advice so far. Sailer, I love your approach, if they won't agree - buy them out! One of the other townhouses actually came up for sale in 2004 but I was not in a position to buy. But I couldn't help thinking, what if I owned 1/2 or better yet 3/4!

Currently only my property is a rental property, the rest are owner occupied. I would also guess that all owners are pensioners (its in Redcliffe, QLD) and probably couldn't afford the capital outright, hence using the sinking fund is probably a better idea. I will have to raise it at the next body corporate meeting, I've never actually been to one because its in Brisbane.

 

[sailor]

Beware of body corp pitfalls!

Frank, if you couldn't get to the AGM, couldn't they do it via phone, so at least you could hear what was happening? Also, it helps to know a wee bit about bodies corporate and how they operate, in terms of how funds can be raised, and how votes happen.

For example: I got caught out this year at my commerical unit site. I own 2 of the 4 units. Owner B owns 2 units, and owner C owns 4 units. (Owner C never comes to the AGM's and never votes.)

This year our body corp formed a committee. Owner B gave his secretary voting proxy over one of his units. So that meant me, owner B and his sec were on the committee. That gave me one vote and him two (one for him and one for his sec)! As he was literally in control of his sec (her job depends on him), that gave him 2 votes. They used their power to hold a committee meeting on a day where I was booked solid with clients and couldn't attend. I had mail voting rights, but they still out numbered me, and pushed through a couple of things I wasn't happy about.

So wiser now...next year I will get my secretary onto the committee, and hold a bit more power.

It pays to know how these little tykes operate.

 

[geoffw]

I own 2 of the 4 units. Owner B owns 2 units, and owner C owns 4 units.

Sorry Sailor- do you mean you own 2 of the 8 units?

 

[dave99]

Hi Sailor - I believe you can propose a vote based on lot entitlement instead of 1 per person. This may help you block Owner B if necessary. After all it is not very fair that he can outvote you when you both own the same number of units!

- Dave99

 

[sailor]

Sorry Sailor- do you mean you own 2 of the 8 units?

Sorry...my typo...yes I own 2 of the 8 units.

 

[sailor]

Hi Sailor - I believe you can propose a vote based on lot entitlement instead of 1 per person. This may help you block Owner B if necessary. After all it is not very fair that he can outvote you when you both own the same number of units!
- Dave99

When voting at the AGM, each owner has one vote per unit.
However, when a committee is elected, each member of the committee has one vote only...regardless of the number of units they own.

The problem now is that the committee voted to remove some lattice work that goes around the entire building (under the facia), and this has now exposed all the aircon units (ones that sit in the wall) to both view and the elements. It looks terrible.