Why’s Water Such a Strata Issue?

Over the last 30 years 3 I’ve noticed that one of the most significant things that affect strata buildings (after people and money) is one of earth’s primary elements - water.

Funnily enough that simple composition of hydrogen and oxygen has and continues to be very important to strata corporations, committees, managers, owners, residents, neighbours and the community.

Let’s look at how (and why) that is.

To start with strata corporations spend a lot of time and money keeping water out of their buildings. Leaking roofs, windows, balcony doors, balconies, decks, planter boxes, showers, and every other conceivable locations cause damage, disturbance and anguish.  They take time and expertise to find and decide how to fix.  And, the cost plenty to fix.  Sometimes, water enters because of poor building design or construction, sometimes due to wear and tear and sometimes due to damage.  Either way for most of a strata building’s life there’ll be water leaks to fix.  As we all know one of the most common (and expensive) building defects is water penetration.

And of course, water leaks and entry causes many insurance claims and affects premiums and excess payments.  In more extreme weather conditions the damage from water entry can be the largest component of a strata building’s insurance claim.  Just look at the effects of Cyclone Yasi in far Noth Queensland last year.

If keeping water out is important, strata building must also make sure they can get it in to apartments as water supply and then remove it as grey and black water.  Getting water (hot and cold) to apartments at the right pressure and temperature (especially when it’s a high-rise) is not always easy.  And disposing of used water from apartments can also present some challenges. 

These days, strata buildings are also storing rainwater in detention tanks before releasing it into main water disposal systems or onsite tanks for re-use.   It’s obviously important to do so but also takes management of the water detention, storage and distribution systems. 

More recently there’s been some focus on water consumption in strata buildings.  It appears that it’s generally higher than comparable free standing housing and no-one’s sure why.  Some argue that the absence of separate metering in apartment buildings (so that water consumption is measured at the boundary and water use charge split between owner according to levy proportions rather than actual use) is to blame.  So, there’s pressure to install separate meters in new strata buildings and retro fit meters to existing strata buildings to raise water consumption awareness and make users pay.  Here’s a recent Sydney Morning Herald article on that issue which highlights more of the problems.

And, there’s a tax angle involving water in strata buildings too.  Although water is exempt from Goods & Services Taxes in Australia, because water charges to strata corporations are included in their annual budgets and strata levies are subject to GST, then most strata owners pay GST on water (when everyone else doesn't).  It’s an anomaly that everyone’s aware of but about which nothing has ever been done.

So, as you can see water plays an important part of strata life (as it does everywhere else).

Francesco …