Rebuilding a Broke and Broken Scheme
Compulsory Strata Management: Case Study
From $952 in Net Assets to a Fully Repaired Building
The Situation
The management of this strata scheme was not functioning satisfactorily. A long history of conflicted relations among the owners had stymied routine maintenance and repairs, and financial mismanagement had left the owners corporation with net assets of just $952.67 — insufficient to cover essential outgoings, including pending insurance. With the scheme unable to govern itself, the Tribunal appointed Compass Strata as compulsory strata managing agent, exercising the full functions of the owners corporation, its committee and its office holders.
What Compass Strata Did
Compass Strata moved quickly to stabilise the scheme and address the backlog of neglected works. A qualified contractor was engaged to inspect the building and prioritise all outstanding repairs and maintenance, from critical through to recommended, giving owners a clear, independent picture of what the building actually needed and in what order.
Funding the works required care in a scheme with almost no reserves. The program was funded through a combination of a special levy and a strata loan — but only after consultation with the owners. Although the compulsory appointment gave Compass Strata full authority to simply act, we chose to consult owners first to understand what funding approach could work for them. That consultation shaped the final mix, spreading the cost in a way owners could manage while still getting urgent works underway without delay.
The Result
Within the 12-month term, all critical repairs were actioned, the scheme's finances were rebuilt from a standing start, and essential outgoings, including insurance, were brought back under control. The scheme was returned to owners in a safe, insurable and financially workable condition.
No two strata communities are the same, and no two get into difficulty the same way. Whether it's a managing agent who has let you down, finances that no longer add up, repairs that never seem to happen, or a committee at a standstill, your circumstances are unique and deserve more than a one-size-fits-all answer. With in-depth experience across the full spectrum of strata management, Compass Strata may be able to help you find a way forward. Speak to Compass Strata today. The conversation costs nothing, staying stuck could cost a lot more.
