There are concerns Victorian apartment and unit complex property owners have faced poorer outcomes as a result of self-interested strata-management firms.
The Victorian Government’s is facing calls to appoint a dedicated Strata Commissioner amid claims dodgy owners corporation operators are dudding significant numbers of their residents.
The rebuke from Australian Apartment Advocacy comes as the state has commenced a review into strata management calling for public submissions on owners corporation laws.
The advocacy group has taken out their own advertising to promote it as they warn “the government doesn’t actually realise how treacherous this is”.
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AAA boss Sam Reece welcomed the establishment of the review, but has lamented its short time frame after it launched this week and gives the public and industry groups until just September 2 to respond.
The state government has acknowledged a quarter of all Victorians live in homes subject to an owners corporation, and as part of the review is seeking feedback on issues relating to hardship payment arrangements, dispute resolution and breaches of owners corporation laws.
It will also review 2019 changes to the short stay accommodation act around dodgy operators in that space, and if they are proving effective.
This has sparked calls for a statewide register of short-stay accommodation landlords, which has previously been backed by major operators including Airbnb.
Sam Reece is campaigning for greater rights for apartment owners.
In a submission they will make to the review, Ms Reece said they would be calling for a Strata Commissioner to tackle the trouble-plagued sector.
“It needs a dedicated resource with a bit of clout and power,” she said.
The apartment advocate warned there had been instances of owners corporation managers “colluding with developers” and others dudding owners by thousands of dollars choosing insurers who provided the biggest commissions or “kickbacks”, while more affordable insurance options were ignored.
Ms Reece said anyone who had encountered similar, or other significantly poor behaviour from owners corporations needed to respond to the review as “the government doesn’t actually realise how treacherous this is”.
“There are good operators out there, but at the moment we need to get rid of the bad apples,” she said.
Apartment and unit complexes are usually subject to owners corporation management, with a government review seeking public feedback around whether they are acting appropriately.
With concerns around owners corporations driving many who buy an apartment to instead choose a house for their next purchase, and also impacting people’s willingness to purchase apartments off-the-plan, she warned a lack of reforms off the back of this review had the potential to directly impact government plans to boost housing supply.
“It will have a long-lasting legacy, especially if you don’t get it right and provide the right protections now,” Ms Reece said.
The review is headed by former consumer affairs minister Marsha Thomson, with the panel also featuring economist Karen Chester and owners corporation law expert David McKenzie.
Current Consumer Affairs minister Nick Staikos said the panel would aim to respond to the needs of those living in strata housing.
“One in four Victorians live in a strata-managed property and this public consultation will provide valuable insights into the experience, issues and concerns of Victorians who are involved with owners corporations,” Mr Staikos said.
Victorian consumer affairs minister Nick Staikos (right) is hoping the public consultation will expose community concerns about strata-managed properties in the state.
Other considerations of the review include the share of owners who need to agree before the sale of common property, unfair contracts and conflicts of interest.
Public consultation continues until September 2.
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