Strata Apartment Renovations: Guiding Principles

11 things to think about when considering apartment renovations …

When we own a strata apartment we want to renovate and improve it without limits. But, when we’re living elsewhere in the building or managing it, we often want to say no to those renovations. It’s a common strata dilemma that needs addressing with rational, objective and reasonable guiding principles …

[13:50 minutes estimated reading time, 2686 words]

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Introduction

Strata apartment renovations can be problematic for the strata owner, the strata building, other strata owners and residents, and, the strata and building managers. 

That’s because they usually involve a mix of building structure, appearance, amenity, disturbance, compliance, and, money issues for everyone concerned.  And, the interests of the strata owner who wants to renovate are not the same [and often diametrically opposed to] the interests of the other strata owners and residents as well as the trouble and issue free strata operations that strata and building managers prefer.

Plus, add a bit of apartment renovation envy into the mix and there’s plenty of scope for disagreements over renovations.

So, when a strata renovation is proposed, other strata owners, strata committees and managers should apply some rational, objective and reasonable principles when considering it.

The strata laws around Australia

Even though strata buildings are largely the same [physically] around Australia and they all separately title and differentiate common areas and lot property, the strata laws and rules governing strata renovations are very different in each state.

Those strata laws range from the 5-tiered and multi-layered system in New South Wales that applies depending on the kind of work involved and who’s doing it to the much more basic duality of by-laws prohibiting works and alterations with a single approval process in South Australia. 

So, it’s beyond the scope of this article to cover the nuances that apply to all states because of procedural rules, restrictions and authorities.

However, if there’s sufficient interest I can [and will] prepare specific state-based articles for paid subscribers about the detailed strata laws and rules that apply in individual states.  So, email me here to let me know your interest.

If you’re a New South Wales reader or otherwise interested, I’ve made submissions and written about the current NSW strata renovation for the current NSW strata law reforms in my article ‘Strata Reforms [NSW] Update 7: Building Structure Issues’.

Plus, there are also local council and planning controls and overlays that will usually apply to strata apartment renovations with their own twists and turns; including things like exempt, complying and prohibited developments; heritage, foreshore, conservation and other zones; development, construction and activity approvals; etc; etc; etc.

But, despite or in spite of those state and local differences, strata buildings and strata owners still need some guiding principles when to apply considering strata renovations.

Overall guiding principles for strata renovations

I’ve looked at, approved, refused, argued for [and against], removed, documented, etc thousands of strata renovations and alterations: small and large, cheap and expensive, residential and commercial. 

So, I have a good understanding and feel about what makes sense and what doesn’t.

So here are my 11 guiding principles to use as a filter for strata renovations and alterations by strata owners and tenants.

1.  Who’s asking 

Is the application by the strata owner or a tenant? 

Although it’s unusual for residential tenants to want to renovate, it can happen.  But, it’s far more likely with commercial or retail strata lot tenants.

And, the applicant’s identity can make a difference to the kind of approval that should be given [whether short term or permanent] and the kinds of conditions and security that may be required.  Longer or more permanent approvals being likely to extend beyond the end of the lease/s and since tenants aren’t owners they may prove more difficult to be made to comply with conditions in the future.

In some states, tenants also don’t have the ability to challenge strata building decisions like renovation approvals/refusals which can impact decision making.

Plus, you’d usually also want to get strata owner approval to the renovation and any approval conditions when being done by a tenant.

2.  Permanent or not

Too often strata buildings and applicant strata owners think renovation or works approvals are forever.  But, there’s no reason they have to or should be.

Obviously, the relocation of major building structures and building additions will be permanent.  But, many installations of equipment, finishes and structures are not, will deteriorate over time and/or can be easily removed or replaced.

Plus, the strata buildings circumstances, needs and preferences can change over time and make past approvals inappropriate or undesirable.

So, where they are permanent take more care with the approval conditions to cover the long term and structure the approval so it applies to future strata owners.

In other cases, think about how long the approval should last, what triggers the end of approval and mechanisms to renew the approval in the future.  Also include express recognition by the applicant owner or tenant that the current approval does not guarantee a future approval or renewal.

3.   Think about the planning issues

Whilst the strata building should not have to second guess the local council or planning approval issues and can usually leave that as a separate process for the applicant strata owner to pursue, it is still a preliminary consideration.

After all, if a renovation or works are never going to be approved or will adversely impact other things that are important to the strata building [like using up limited floor space ratios for built structures on the site or preventing future potential incompatible uses of common property] then, perhaps the strata building should refuse things upfront.

Obviously, any approval of a strata renovation or works should require the applicant to get all relevant planning approvals and to supply copies of the applications and final approvals for strata building checking and records.

Additionally, it is likely that the local council or other planning approval will need the strata building’s consent for applications that involve common property and sometimes also for works in lots before they are lodged and considered.  So, think about when and how to issue those consents so the applicant can proceed but the strata building doesn’t compromise its ability to later refuse or condition their approval.

4.      Are common property boundaries affected

Sometimes a strata renovation or works will affect a strata boundary between a lot and common property.

Those impacts can include things like:

• relocating a boundary wall or other structure like a floor, ceiling, fence, etc,

• replacing an existing boundary structure like a door or window,

• changing a floor, and/or

• changing or replacing a ceiling.

This is a very important consideration since boundary structures in strata buildings:

• define the strata title boundaries between the lot and common property; so, you need to be careful not to change that or also require a strata subdivision to formally move that boundary, and

• are usually common property and the strata building’s responsibility to maintain; so, you need to ensure the new or changed boundary structures are well built or to transfer future responsibilities to the strata owners [if appropriate]

The future consequences of ignoring this important consideration mean that there’ll be potential disputes about ownership and responsibility [and liability] for repairs and maintenance where the strata building usually comes out the loser.

5.    What structural impacts exist [actual or potential]

Some strata renovations or works have structural impacts and others don’t.

But, identifying actual or potential structural impacts from strata renovations or works is a very important preliminary consideration given the serious damage that could result.

Some typical situations with structural impacts include the following strata renovations or works:

• removing walls, floors and boundary structures,

• core drilling slabs and precast panels,

• adding new structures like balconies, walls and floors,

• adding structures that are heavy or carry water like spas, pools or water tanks, and

• changes to roof structures.

In those situations, strata buildings should require structural information, certification and agreement to allow and pay for independent structural advice about the strata renovation or works. 

Plus, that investigation may be required before the strata building even considers the proposal.

And, any approval for a strata renovation or works that have structural impacts should include a bond for potential future impacts and post-completion certification to the strata building by a structural engineer.

6.    Waterproofing

If there’s one thing that causes more damage, loss, anguish and problems in strata buildings than anything else, it’s water.  Water seems able to find its way anywhere and everywhere when not properly managed in strata buildings.

So, if the strata renovation or works involve any parts of the strata apartment where there’s water [like kitchens, laundries, bathrooms, toilets, balconies, planter boxes and other plumbing], then the strata building needs to consider the potential impacts on waterproofing to avoid or minimise potential water entry and damage to other strata lots and/or common property.

Where there are waterproofing issues, strata buildings should consider getting details of the waterproofing work before approval to be satisfied with those things.

And, any approval for a strata renovation or works that has waterproofing impacts should include a bond for potential future damage, specify that a qualified/licensed tradesperson undertake the waterproofing and require post-completion certification to the strata building.

7.      Size, scope, scale & types [including special work types]

The bigger the strata renovation or works in scale and cost, the more attention that should be given to the proposal by the strata building as it will be more complex, have higher stakes for the strata owner or tenant and have more [and more complex] potential impacts on the strata building, other strata lots and strata lot owners and residents.

That’s just common sense.

But, even on smaller strata renovations or works, there are few special kinds of works that need extra care and attention as follows.

• Air conditioning systems are a special problem in strata buildings as if they are the in-window type: they are unsightly and can drip water on the lots and people below them, and/or if they are split systems: there can be issues about the location of the condenser and piping to and from it and the condensers can be noisy and/or create a lot of vibration when operating.

• Hard floors [whether timber, tiled, stone or other material] create a higher potential for the transmission of impact and airborne noise to adjoining parts of the building so the details of the flooring materials, the locations of the hard flooring in the strata apartment, underfloor acoustic treatments and noise performance standards/ratings are important considerations. 

• Pergolas, awnings, etc are visible from outside the building and so give rise to appearance and aesthetic issues for the building as a whole that could trigger many objections from other strata owners.  Plus, if the strata building is a windy location [which many buildings are], the strata building should also consider how these structures are anchored and how they will withstand gusts of wind so that they don’t become dislodged or parts fly off.

8.      Aesthetics

Personal tastes aside, if the strata renovation is external or visible from outside the building the aesthetics matter.

Typically, strata buildings will want any changes to match or be compatible with the existing style and appearance of the building.  Conversely, many strata owners [and their architects and designers] undertaking renovations will want to modernise the appearance and style of their apartments. 

So, this sets up a subjective dispute to which there’s no easy solution although it’s more likely than not that sameness will trump different ultimately.

8.      Performing the works

Many strata buildings don’t adequately consider the impacts on the strata building and other strata owners whilst the strata renovations or works are being performed since the building remains occupied throughout.  But, it’s an important factor that shouldn’t be overlooked.

Some things to consider when approving strata renovations or works and when setting approval conditions include:

• how long will the renovation or works take?

• when will they start if not immediately,

• will there be concurrent works being undertaken in the common property or strata lots,

• how will materials, tools, equipment and debris be transported into and out of the building,

• when can work be performed [especially noisy works],

• where will tradespeople park,

• what about delivery vehicles,

• how will buildings security be preserved,

• can lifts be used, and

• what about daily clean up.

9.   The future

Although the evaluation and approval [or not] of the details of proposals for strata renovations and works are critical to the strata stakeholders at the time it is made, the strata building will continue to exist for a long time so longer-term issues also need to be considered.

The first [and probably most] important issue is the responsibility for future repair and maintenance: whether it will remain with or default to the strata building or whether it passes to the strata owner [including future owners].  In some states, this must be expressly covered and in other states, it will default to the strata building if not transferred. 

Secondly, it is important to clearly identify:

• what structures must be maintained with enough clarity for future strata committees, managers and owners,

• the degree or extent of required work if transferred to the strata owner, since they don’t have the same responsibilities as the strata building, and

• how future replacement and/or removal will occur.

Thirdly, some new structures and equipment may need to be separately insured for damage and public risk.

Fourthly, how will defects in the strata renovations or work be handled, including whether the strata building can access any rights against the contractors on the strata owner’s behalf.

Fifthly, where the strata renovation or works could cause damage or loss to the strata building or other strata owners and residents [structural work, waterproofing, or external weather-exposed structures], indemnities are needed for that potential damage and loss.

Finally, make sure that future owners are covered by the approval conditions if the strata renovation or works are permanent.

10.     Processes for approvals [and refusals] 

Since each state’s strata laws apply differently to strata renovations and works and they often have specific rules and processes, each application needs to be considered and approved according to them.

So, it’s important to understand those processes and follow them to ensure everyone’s rights are protected, that any approvals are valid and effective, and, that any approval conditions can be effectively enforced.

Plus, because strata laws also give applicants for strata renovations and works opportunities to challenge strata building refusals at Tribunals like NCAT, VCAT, QCAT, etc, a strata building should also consider how it approaches and the reasons given for refusals.

11.     Record keeping

Details of any strata renovations or works that are undertaken in a strata building should be kept and available in the strata building’s records.

That’s important to validate the approval and approval conditions for future strata owners and other stakeholders.  Plus, it helps to clarify what works was [and wasn’t] done and when so that any future strata building faults, maintenance, repair and replacement arise [as they inevitably will].

Those records include all materials relating to the strata renovations or works including:

• the proposal made to the strata building [and any changes to it] including all plans, specifications, etc,

• communications over the proposal,

• notices and minutes of meeting considering the proposal,

• formal approval documents like deeds, agreements, by-laws, rules, etc,

• applications made to the local council or other planning authorities,

• local council and planning approvals,

• certifications for the work by engineers and others,

• insurance policies provided for the strata renovations or works, and

• documents about any problems with the strata renovations or works.

Obviously, these records should be kept in an easily identifiable and accessible way so that they can be found whenever required [by strata searchers, strata owners, strata committees and managers].

Remember, that when problems arise with strata renovations or works and there aren’t good records, they can’t be found and no one remembers or was there at the time, it’s more difficult and expensive to resolve them and, usually, the strata building ends up responsible for what can’t be established.  

Conclusions

Strata renovations or works are increasingly common in strata buildings as they age and the home improvement phenomenon becomes more common.

But, since the strata building is a fundamental strata title feature that is mostly common property, strata buildings need to carefully consider applications by considering a range of legal, technical, practical, and, aesthetic issues over the current and longer-term.

August 19, 2021

Francesco ...