Netstrata continues to abuse power with owners

A NSW strata management company currently facing prosecution by Fair Trading has once again demonstrated its disregard for the rights of Owners Corporations (OCs).

Featured on the 7.30 Report in 2024, Netstrata was accused of charging insurance commissions as high as 147%. Although the company claims to have changed its practices, a recent Annual General Meeting (AGM) suggests otherwise.

With the developer owning 48 units in the apartment complex and holding the majority of voting power, Netstrata orchestrated the AGM to reduce the committee to just five owners, three of whom were representatives of the developer.

Additionally, it has been reported that Netstrata has a history of failing to circulate meeting agendas to all owners or post notices in common areas, which is a violation of the Strata Schemes Management Act.

Ms. Reece, CEO of AAA, expressed her dismay at Netstrata's blatant disregard for owners, especially while under scrutiny. She stated, “Owners reported being abused and yelled at by the developer, and they faced intimidation tactics from the strata manager throughout the meeting.

One owner even said, "I’m living in fear in my own home."

Furthermore, Ms. Reece pointed out that Netstrata has not provided the OC with the current insurance renewal certificate and invoice, raising concerns about transparency and potential financial benefits for the company.

“The developer is also refusing to hold committee meetings, as they are barred from voting on matters where there is a conflict of interest, particularly related to defects. They are effectively stonewalling the owners' rights,” she added.

Moreover, the developer has its own plumbing company and several related suppliers and tradespeople working on the scheme. “Surely this is a conflict of interest. They railroad all the decisions at the scheme, and our defects liability period has now lapsed,” one owner remarked.

“In essence, Netstrata is colluding with the developer to undermine the owners, which will only negatively impact consumer confidence,” the owner concluded.

Netstrata's prosecution commenced on 24 August.