What you need to know about an Owners Corporation

An owner’s corporation is a legal group made up of all lot owners in a strata development. It comes into existence automatically whenever a subdivision plan includes shared spaces. Its purpose is to manage and maintain communal areas such as stairwells, garages, gardens, shared walls, driveways, lobbies, rooftops, and the building’s exterior.

Similar to a business, the owner's corporation can set rules for how shared spaces are used, provided they align with legal requirements.

If you own an apartment, you’re automatically part of the owner’s corporation.

Its success largely depends on the involvement of its members. The more active and engaged the owners are, the better the building will be managed.

So, to keep your property in great shape, it’s important to attend meetings, connect with other residents, and get involved when needed.

Member Responsibilities

As an owner, you’ll be invited to attend an Annual General Meeting (AGM), which gives you the chance to:

• Vote on property-related decisions

• Raise concerns about upkeep and maintenance

• Stay informed about any property sales or purchases

• Discuss new fees or charges

• Bring up other matters, like noise complaints or shared responsibilities (e.g., taking out the bins)

If you’re unable to attend, you can have someone else represent you by appointing them as your proxy.

Fees You Might Encounter

Fees are typically set and charged on a quarterly basis. These cover the ongoing costs associated with the day-to-day management and maintenance of the building and its common areas.

What’s Usually Included in Quarterly Owners Corp Fees:

1. Building Insurance

Covers the structure and common areas of the property (not contents inside individual homes).

2. Common Area Maintenance

Regular upkeep of shared spaces such as lobbies, hallways, lifts, gardens, garages, and recreation areas.

3. Utilities for Common Areas

Power, water, and sometimes gas used in common areas (eg. lighting, irrigation systems, lifts).

4. Cleaning Services

For shared areas including foyers, corridors, and communal facilities.

5. Gardening & Landscaping

Maintenance of shared outdoor spaces.

6. Management Fees

Fees paid to the strata or OC manager for administering the building (eg. meetings, budgeting, communication).

7. Sinking Fund Contributions (also called a Maintenance Fund)

Regular contributions toward long-term capital works like roof repairs, repainting, or replacing lifts.

What’s Typically Not Included (Additional Costs):

1. Private Utilities

Your own electricity, gas, internet, and water usage (unless sub-metering isn’t in place).

2. Contents Insurance

Cover for personal belongings and interior fixtures inside your unit or townhouse.

3. Repairs Inside Your Home

Things like a leaking tap, appliance repairs, or internal wall damage are usually the owner’s responsibility.

4. Special Levies

One-off charges are issued when unexpected or major works are required and the sinking fund doesn’t cover it (eg. facade replacement, major structural repairs).

5. Upgrades or Additions

Costs for non-essential improvements requested by owners (eg. new gym equipment or security systems) may require extra contributions.

Be sure to review the Owners Corporation Certificate that comes with the vendor’s statement to understand any extra costs.

Call Susan on 0448 478 892 to discuss potential fees for the Merchant apartments at Waterline Place, Williamstown.