The Knight Alliance

  With more and more Developers turning their minds to the build-to-rent (BTR) model, the question we keep getting asked is, ‘how can you help? It might seem obvious that the need to appoint an Owners Corporation Manager (OCM) is removed, given there will either be no Owners Corporation, or an Owners Corporation owned entirely by one party, at the end of the project. However, bringing on the specialised expertise of an OCM can help set your BTR project up for success, and ensure it continues to run optimally, long after tenants have settled in. Generally, an Owners Corporation Manager, or ‘Build to Rent Manager’ in these projects, would act as the representative of the Owner, working alongside the appointed leasing agent, property manager and/or building manager to ensure the building runs smoothly. So, what are the key areas an OCM can provide support in? And why does it pay to appoint an OCM to your Build to rent project? Establishing a realistic budget Setting a budge...

  The Knight is proud to share news of the appointment of Alex Smale to the role of Training & Sustainability Manager. This newly created role will provide support and training to our team and ensure we remain at the forefront of the industry in both service levels and knowledge. Importantly, Alex will be focused on training our team so that they can better support our Owners Corporations and streamline the process of undertaking sustainability works at their buildings. In addition, Alex will focus on The Knight’s internal sustainability initiatives. This involves chairing our Sustainability Subcommittee, implementing internal cultural changes, and overseeing our journey to becoming a carbon neutral company. The Knight’s commitment to sustainability In 2021, The Knight are taking big steps to become a more sustainable business. We have formed our Sustainability Subcommittee to effect cultural change throughout the business and encourage small but impactful behaviour...

The Owners Corporations and Other Acts (OC Act) Amendment Act 2021 will take effect from 1 December 2021. Much focus has been given to changes which affect the duties of Owners Corporation Managers and the obligations of Developers. But beyond this, a range of provisions are set to come in which relate to the operation of an Owners Corporation and the Committee. We have outlined some of the key OC Act changes here.   A new tiered system: As part of the changes, a new tiered system has been introduced which places more stringent regulations upon high density strata plans. The tiered system is as below: Tier 1: >100 occupiable lots Tier 2: 51-100 occupiable lots Tier 3: 10-50 occupiable lots Tier 4: 3 – 9 occupiable lots Tier 5: 2 occupiable lots or a services only owners corporation Preparation of a Maintenance Plan: As well as changes to obligations regarding financial statements and auditing, under the new amendments Tiers 1 and 2 must prep...

There’s some truth in the saying, “a developer is only as good as their most recent project”. And when a project is handed over to an Owners Corporation on completion, a developer’s hard work can easily be undone by a committee unwilling to spend money on maintenance, or an inexperienced manager who doesn’t provide good advice or fails to keep records in order. Purchasers of an apartment or townhouse have likely been sold a lifestyle of low maintenance and convenience—a dream the developer has worked hard to bring to life, from choosing the location and design of the property through to including state of the art facilities and the finishes within the apartments. But once the work is done and the apartments have settled, the last thing a developer needs is to have their reputation damaged by disappointed owners because the dream has not lived up to the reality. This is where appointing a professional, reputable and reliable Owners Corporation Manager (OCM) comes in. Why it pay...

I was sitting in the SCA A100 seminar when the instructor introduced an idea that initially seemed problematic. They suggested strata is the fourth level of government, envisioning government consisted of federal, state, local, and then… strata? Governing involves both the administration and control of a community. There is no doubt strata management involves administration. We prepare budgets, hold elections, and more. Instead, I realized the reason I instinctively had a problem with the idea of strata as government is because we are so limited in how we can exert authority. We have minimal access to forms of coercive power. We do have some ability to take offenders to VCAT, but this only happens in a minority of cases. Despite our lack of coercive power, we manage many societal issues. This includes waste management, vandalism, and more. Owners Corporations therefore need to find other ways to discourage bad behaviour. This essay explains how Owners Corporations can influence behavi...

A Victorian Lot Owner wonders what to do about a neighbour who has taken over the common property garden without approval. Alex Smale, Owners Corporation Manager at The Knight suggests the best solution would be to using a key safe. Question: The minority lot owner in a three lot scheme has progressively taken over the common property garden with pots and garden furniture. No approval was sought. We own 2 units and 74% of a small (3 unit) Owners Corporation Plan in Victoria. The 26% lot owner has progressively taken over half of the common area courtyard with over 40 pots in various stages of neglect, a market umbrella and garden furniture.   We have the standard Model Rule that states: “An owner or occupier of a lot must not, without the written approval of the OC, use for his or her own purposes as a garden any portion of the common property.” No approval has been sought or given. What are the majority owners’ rights? Answer: The minority lot ow...

“Do we really need to pay to get the anchor points certified every year?” … “Do you want someone to fall off the roof?” This kind of conversation is all too common at the annual general meetings of strata properties . All buildings have machinery and systems which owners need to pay to maintain. This machinery is often behind closed doors and not visible to residents. This is particularly true of larger buildings which will have complex fire systems, HVAC systems, large booster pumps for pumping water up many stories and more. While owners understandably want to find ways to cut costs, the consequences of not correctly maintaining this equipment can be enormous. This maintenance is so much more than items on the financial report, it guarantees the peaceful enjoyment of the building for residents as well as maintaining the safety and the security of your investment. One example is back flow prevention valves which need to be tested. These valves prevent contaminants from g...