• Credit:  The Sydney Morning Herald (Anna Patty – Senior Writer)

    Today the Sydney Morning Herald carried an article (see Documents – Unilodge Sydney) concerning a sudden increase in levies for Owners of Unilodge Sydney student apartments.

    The crux of the matter is that critical maintenance and possibly remedial works had not been undertaken by the Owners Corporation.  It is highly probable that Owners (in the majority) chose not to put aside adequate funds for critical works and ultimately in-fighting led to the NSW Government appointing and administrator to basically get things done.  Coupled with the administrator’s appointment the Owners were faced with a significant drop off in revenue as COVID-19 hit and student numbers dwindled.

    Essentially when an Owners Corporation become dysfunctional the Government can step in, appoint an administrator and take all decision making out of the hands of Owners.  This is the worst case scenario for an Owners Corporation (similar provisions exists throughout Australia).

    As much as special levies hurt Owners, it is far better to have a plan of action in place and a strategy to progressively fund required works.

    The article is a good read for these interested.