Did you know that approximately three million Australians own apartments that fall under a strata scheme? This is according to data from the ABC, which in 2024, estimated that roughly 350,000 strata schemes are operating across the country. Within each of these shared property arrangements, a set of rules and legislation cover various different aspects, including building renovations.
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Any renovations carried out for common property in an owners corporation must be approved and meet a strict set of criteria. As a result, the process of actually getting a renovation in motion for a strata property isn’t always a walk in the park.
If you’ve been wondering how to navigate the complex world of strata renovations, we’re here to lend a helping hand.
How are strata developments different to standalone properties?
With Australia’s housing market booming and demand growing for affordable, family-friendly properties, strata schemes like apartment complexes and townhouse estates are becoming increasingly popular. Offering all the benefits of private living alongside lower maintenance garden spaces, strata properties also provide an easier access point into the property market for young families and first home buyers.
There are pros and cons to strata living, as there are with all property types. Whilst strata properties provide easier access to buyers on a budget, these assets generally also appreciate at a lower rate comparative to standalone properties, meaning reduced capacity to build equity for strata investors.
Even though there may not be a major opportunity to build equity, strata titles can provide lower mortgages, meaning comfier monthly repayments, and reduced home insurance costs, as title owners only need contents insurance independently and typically secure building insurance through their body corporate.
If your strata property is being renovated, however, you will need to update your building insurance through your body corporate, with new insurance rates impacting not only you but all your fellow title holders. Given insurance costs and even construction and renovation activities directly impact other title holders, it begins to make sense why strata renovations are tricky to get approved.
What is the process of approvals for strata renovations?
Securing approval for a renovation requires the preparation of a formal renovation proposal submitted both to your strata manager and to your strata committee at a general meeting. Renovation proposals will need to align your body corporate rules and be considerate of the health and wellbeing of other title holders, as well as any potential economic or environmental impact to the wider entire strata complex.
Pushbacks for renovation proposals can come from a wide variety of sources. For example, fellow title holders may not be supportive of a renovation proposal simply because the new structure might block their view, or infringe on the privacy of their living spaces (i.e. backyards, courtyards, balconies, etc.).
If the new structure or new works also don’t provide any added financial benefit whilst adding to annual costs (i.e. maintenance, insurance, council rates etc.), there may be pushback on those renovation works on the basis of the works being more of a liability rather than an asset.
Defining the scope of the renovation proposal is also essential for facilitating prompt reviews and approvals.
Major works vs. minor works
Renovation proposals generally fall under one of two different scopes, these being major works or minor works.
Major works (i.e. waterproofing, new structures, structural repairs, boundary fencing, etc.) are tasks that tend to require more funding, making them generally more difficult and expensive to arrange. In some cases, your existing strata levies or sinking costs fund may end up covering major works, however, more often than not, far-reaching major renovations will typically require additional levies to ensure adequate capital.
Minor works are typically smaller in scale and may only relate to a single property rather than the entire strata block. This could be something as simple as getting an awning installed or approval for architectural improvements (i.e. facade improvements, driveway extensions, landscaping in common areas, etc.).
What strata renovation projects are most likely to be approved?
In Australia, it’s typically easier to secure approvals on strata renovation projects that can provide direct financial and lifestyle benefits to all title holders. Here are just a few renovation project types that are most likely to be readily approved by your body corporate manager and wider owners committee.
Security upgrades
Security investments are always guaranteed to provide both financial and lifestyle benefits, including improved safety and peace of mind for residents, and potentially even cost savings on strata insurance, due to reduced risk factors for your insurance provider.
For strata complexes like apartments and gated estates, some examples of security upgrades can include electronic gates and doorways, CCTV in parking areas, and intercom systems for each strata lot.
Even simple upgrades like new locks, sensors, floodlights, or updated intercom systems can impact your fellow title owners in unexpected ways (i.e. privacy, light pollution, noise pollution, etc.), so it’s best to provide as much information as possible in security-oriented renovation proposals to ensure any accommodations that need to be made can be planned with confidence.
Fencing and exteriors
Walls and fencing can be a major headache for strata real estate, particularly in older blocks that haven’t been renovated for decades. Cracks, leaning sections, and damage caused by tree roots or uneven ground are fairly common. Once this starts to happen, repairs usually become less about appearance and more about preventing further movement or damage.
Gardening and landscaping play into this as well. Overgrown areas, or invasive trees (especially any that are sloping) can push against fencing or block drainage paths. Keeping these outdoor spaces under control, however, tends to reduce any flow-on effects, including accident or incident risks on-site that could go on to impact your insurance costs.
Lighting and windows
There’s no doubting the value of quality outdoor lighting, especially around any of the block’s entrances, walkways, and parking areas. Sensor lighting and dedicated security lighting are common upgrades because they activate only when needed and reduce dark spots around shared areas for easier navigation and improved safety and security.
Window upgrades sit in a different category again. Double glazing is a common example, mainly because it helps with insulation and reduces outside noise alongside building property value. However, double glazing can still significantly alter the appearance or facade of strata buildings, and as such, it needs to be approved as a renovation project by your body corporate manager and strata committee.
Ready to Adjust to Strata Living?
Due to a range of factors (from housing affordability to population growth), strata developments are becoming more commonplace not only across metropolitan fringe regions, but also across Australia’s regional city centres, including right here in Benalla.
As a part of its ‘ Opening Doors’ initiative, the Victorian State Government has developed a plan to address housing shortages in both urban and regional areas. One of the 22 key actions in Plan for Victoria is a commitment to “carefully manage the outward sprawl of regional cities and towns”, and this includes the development of more shared blocks.
For Benalla residents looking to downsize or even young families wanting to get their foot in the property ladder, strata investments provide plenty of financial and lifestyle benefits. But it’s important to know what to expect when transitioning to strata living, especially when it comes to annual maintenance and upgrades. With this knowledge on renovation processes for strata properties, you can better determine whether strata living and its unique responsibilities provide the right fit for you and your family.