Josh is a seasoned strata and property specialist with a keen understanding of the industry’s dynamics and the issues that Owner Corporations are currently facing in Victoria. Josh offers his insights on some of the main challenges currently affecting the Strata space.
Insurance Premium Increases:
One of the significant considerations for Owner Corporations is the increasing costs and stricter conditions imposed by insurance providers. Josh highlights the two common scenarios he is observing:
Unforeseen Cost Surges: “There are a lot of cases where levies and budgets were set prior to the unexpected cost spike. The higher premiums are now straining the Owners Corporation’s budget to the point they cannot pay the premiums as an annual lump sum.”
Defects and Policy Renewal: “The other cases are Owner Corporations that are aware of defects but haven’t yet progressed with remediation works. These Owner Corporations are now facing stricter conditions for policy renewal. Without funding in place, they cannot progress the remediation works at a rate that meets the insurance provider’s conditions.”
In the above cases, Josh explains how his clients have benefited from Lannock’s Insurance Premium Funding product.
“Traditional insurers may cancel policies for late payments, but the Insurance Premium Funding product will always pay the insurance premium upfront. Thereby removing the risk of policy cancellation. The product was designed to provide Owners Corporations the flexibility and reliability required to gain or maintain coverage without delay’’.
Water Ingress: A Silent Intruder
Josh has seen a recent spike in buildings facing remediation work due to water ingress problems. “Water ingress doesn’t discriminate; it can wreak havoc in new developments or older buildings. Owner Corporations tend to come to me for funding advice in these two scenarios’’:
Emergency Water Ingress Works: “When disaster strikes, fast action is essential to limit damage.” Josh emphasises. “Fast action involves organising funding, finding the root cause and getting experts involved to fix the issue to limit the damage and therefore the cost.”
Water ingress issues that are identified early: In these situations, Josh prefers to be involved as early as possible. “We work with the Owners Corporation as they assess the issue and find a solution. This way, a funding solution is ready to go quickly and is tailored to the Owner Corporation’s specific requirements. ”He notes, identifying the source of water ingress is paramount. “Is it due to a leaking roof, plumbing issues, structural cracks, or external factors like heavy rain?” Josh advises. “This knowledge is critical for effective remediation and tailoring a suitable facility.”
Josh added, “In new developments, understanding where liability and responsibility lies is important.”
Elevating Strata Communities through Capital Projects
‘‘Capital projects play a part in the enhancement of strata communities.’’ Josh Klemm highlights, ‘‘Working closely with a passionate strata community on their uplift project is exceptionally fulfilling.”
“While capital projects can be expensive, the potential to enhance property values often justifies the investment. When managed effectively, these projects can offer long-term financial gains while improving the building’s aesthetics for the enjoyment of the residents.”
“Effective project management is essential for delivering projects on time and within budget.” says Josh Klemm, an experienced authority in strata and construction. “And clear communication and discussion bring the best outcomes.”
“To that end, I spend a lot of my time consulting with strata managers, committees and attending meetings,” he said emphasising the value of early engagement. “I really enjoy the collaboration required to understand the needs of the Owners Corporation to provide the necessary information for owners to make an informed funding decision. His approach is clear: “I want to be considered a trusted partner on the ground, here to help.” In the best-case scenario, he becomes an extension of the teams he works with. “A funding facility is rarely the only solution. I work closely with my clients to provide funding as a solution, not the only solution, or as a mix of funding options.”
Josh firmly believes that no Owner Corporation in Victoria should face undue administrative strain from their funding decisions. “Ongoing complexity in some funding options only hinders the effective strata project delivery. There are simplified and flexible funding options in the market that support Owners Corporations.”
“Innovative solutions should simplify their path,” he stresses. In this customer-centric approach, Josh Klemm embodies the valuable partnership offered by Lannock Strata Finance to the strata community.
Josh Klemm
Business Development Manager Victoria
P 0400006 988
E joshua@lannock.com.au
