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Adding Value Through Renovation in Strata Properties

Compass Strata_Adding value through renovation in strata properties

Are you dreaming of transforming your strata property? Renovations can breathe new life into your investment, enhancing its appeal and value. However, before you pick up a hammer, it's crucial to understand the rules and regulations governing renovations in strata properties, be it an apartment, duplex, retail shop, commercial lot to an industrial warehouse. From minor upgrades to major transformations, here's everything you need to know about adding value through renovation in a strata environment.


Is the Project Value Over $5,000?


Strata building work mandates adherence to stringent safety and building standards. This not only safeguards the builders involved but also ensures the well-being of occupants and minimises the likelihood of future property defects.


To uphold safety and quality standards, several key measures must be observed for projects valued over $5,000:


  • Regulated designs must be prepared by a registered design practitioner.

  • The execution of the work must be overseen by a registered building practitioner.


The Type of Renovation


In a strata property, certain renovations require approval from the owners' corporation to ensure compliance with building standards and maintain safety. There are three distinct categories of renovations within a strata environment, each with its own set of considerations and approval processes. Let's delve deeper into each type:


1. Cosmetic Work:


Cosmetic renovations focus on enhancing the aesthetics of your property without altering its structure or requiring waterproofing. While these changes may seem minor, they can significantly improve the overall look and feel of your home.


Examples of cosmetic work include:


  • Painting: Applying a fresh coat of paint to walls, ceilings, or trim can instantly refresh your living space and create a cohesive atmosphere.

  • Installing Fixtures: Adding or replacing fixtures like hooks, handrails, blinds, or built-in wardrobes can enhance functionality and organisation.

  • Minor Repairs: Filling holes or cracks in internal walls and repairing minor damages contribute to maintaining the property's appearance.


Approval Process:


Cosmetic renovations typically do not require formal approval from the owners' corporation. However, it's essential to review the strata scheme's by-laws to ensure compliance with any specific guidelines or restrictions on cosmetic changes.


2. Minor Renovations:


Minor renovations involve more significant alterations to your property, such as kitchen upgrades, changes to internal walls, or flooring installation, but are restricted from altering the exterior or structure of your lot and any work requiring waterproofing. These renovations require approval from the owners' corporation to ensure compliance with building standards and regulations.


Examples of minor renovations include:


  • Kitchen/Bathroom Upgrades: Renovating kitchens/bathrooms by replacing cabinetry/vanity can enhance functionality and modernise the space.

  • Changes to Internal Walls: Altering the layout of your unit by adding or removing non-structural walls can create a more open and flexible living environment.

  • Flooring Installation: Installing new flooring materials like hardwood, tile, or laminate can improve the aesthetic appeal and durability of your home. Typically speaking, if you are replacing carpet with carpet, approval is not required.


Approval Process:


Before undertaking minor renovations, you must submit detailed plans and specifications to the owners' corporation for approval. This may involve presenting your proposal at a strata committee meeting (if the by-law allows) or obtaining a majority vote in favour of the proposed changes at a General Meeting.


3. Major Renovations:


Major renovations represent a significant undertaking, involving alterations that affect the property's structure, exterior, or require waterproofing. These renovations demand formal approval through a special resolution vote at a general meeting of the owners' corporation. This means no more than 25% of votes cast are against the work.


Examples of major renovations include:


  • Structural Changes: Removing or adding walls, altering floor plans, or expanding living spaces necessitate careful consideration of building codes and engineering requirements.

  • Bathroom Renovations: Installing new fixtures, plumbing, or waterproofing systems in bathrooms can significantly enhance the value and functionality of your property.

  • Changes to Common Property: Renovations that impact shared areas such as building facades, common corridors, or amenities may require additional approvals and coordination with the owners' corporation.

Approval Process:


Major renovations require comprehensive planning and documentation, including consultation with registered design and building practitioners. You must provide detailed plans and descriptions of the proposed changes to the owners' corporation, obtain a special resolution vote approving the renovations, and comply with any additional regulatory requirements.


Crossing the T's and Dotting the I's


If your renovation plans involve alterations to common property or shared amenities, such as building facades, additional approvals may be required. Changes to common property often necessitate coordination with the owners' corporation and may involve amending existing by-laws.


It is imperative to understand the consequences of proceeding with renovations without obtaining proper permission. Failure to secure approval for significant alterations can result in financial ramifications, compelling you to revert the property to its pre-renovation state at your own expense.


Strata owners have the opportunity to unlock significant potential through renovation, but it's essential to follow the proper process. Engaging the assistance of professionals, such as Compass Strata, ensures that every detail is meticulously addressed and all necessary steps are taken to successfully navigate the renovation journey. With expert guidance, owners can confidently reap the benefits of a successful project.

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