Managing a Small Strata Scheme in Narooma or Bermagui: Levies, Meetings and Repairs for Three to Six Lots

Why a small scheme still needs a workable system

A four-villa scheme can feel informal. The owners know each other, the driveway is short and a conversation over the fence may settle a small gardening issue. Yet one roof repair, insurance renewal or unpaid levy can quickly change the amount each household must contribute. With only three to six lots sharing the cost, even an ordinary maintenance decision deserves a clear budget, proper meeting record and realistic plan for when the bill arrives.

This guide is for owners and committees of three, four, five or six lot strata schemes in Narooma and Bermagui. It explains how to set levies that cover current costs and future repairs, hold useful meetings, and move common-property work from a report to a decision. It does not assume every small scheme has identical boundaries or equal contributions. The registered strata plan, unit entitlements, by-laws and building condition determine what your particular owners corporation needs to do.

Why a small scheme still needs a workable system

Most decisions in a small scheme are straightforward until an unexpected invoice arrives. A recurring insurance premium, garden service and shared electricity bill may seem manageable. Then a roof gutter fails, a driveway develops a dangerous step or an insurer asks for a repair. If the scheme has no reserve, the owners must find money quickly. In a four-lot scheme, a $12,000 unfunded common-property repair would represent $3,000 per lot if unit entitlements were equal. With different entitlements, the allocation would differ.

The point is not that a small scheme must build a large bureaucracy. It needs enough structure to answer five questions: what belongs to the owners corporation, what work needs doing, how much cash is available, who can authorise the next step, and how each owner will be informed. A current strata plan, accurate accounts, meeting minutes and a simple maintenance list are often more useful than a long email thread in which nobody can find the original decision.

Local setting changes the maintenance conversation. A group of villas near Narooma's Wagonga Inlet may face a different mix of exposure and access constraints from a townhouse scheme in Bermagui. Some buildings have holiday-owned lots whose owners live interstate; others are mostly permanent homes. Treat coastal weather, older construction, garden drainage and visitor use as issues to inspect at the address, not assumptions about every property in either town.

Know what the scheme is paying for

Begin with the registered strata plan and the owners corporation's records. Identify the common property: it might include a shared driveway, roofs or external walls, paths, drainage, fencing, gardens or a common water service, depending on the plan and any relevant by-laws. Do not assume the wall beside one villa or the pipe beneath its garden is private because only one owner sees it. Equally, do not assume every visible component is common property. The NSW strata search explains how the registered plan can clarify lot boundaries.

The owners corporation must maintain and repair common property. Individual owners ordinarily maintain what is within their lots, subject to the plan, by-laws and the cause of the problem. NSW Government repair guidance sets out the general distinction. When a leak crosses a boundary or a driveway edge supports another area, have the facts checked before telling an owner to arrange or pay for work.

For a small committee, a one-page asset list can anchor the budget: roof and gutters, shared paving, fences, stormwater pits, external painting, lighting and any common services. Beside each item, note the latest inspection or repair, any warning sign and the next action. This is a working management tool, not a substitute for the required capital works fund plan or technical advice on a complex defect.

Set levies from the budget rather than last year's amount

The NSW Government's levy guidance says owners approve the scheme budget at the annual general meeting. Levies fund the approved expenses and are allocated according to each lot's unit entitlement. A small scheme should therefore estimate what it actually needs for the coming year before deciding whether last year's quarterly contributions still make sense.

Separate the administrative fund from the capital works fund. The first covers ordinary running costs such as insurance, regular common-property services and administration. The second is for longer-term capital items such as major roof, painting or driveway work. Keep an eye on timing as well as totals. A scheme with a $6,000 annual insurance premium due in October cannot pay it with money it expects to collect late the following summer.

Imagine a four-lot villa scheme with equal unit entitlements. Its proposed annual administrative costs are $7,200 and its planned capital works contribution is $4,800. That is $12,000 in total, or $3,000 per lot for the year: $750 per lot each quarter if paid evenly. The figures are an illustration, not a recommended levy. If one lot has a larger unit entitlement, its share will be larger; if the insurance invoice falls early, the scheme may need a different cash collection timetable.

Ask the treasurer or strata manager to show the opening balance, expected income, insurance renewal date, contracted expenses, known repairs and a reasonable allowance for small unforeseen work. Show the capital works contribution separately. Owners can then see whether a proposed increase pays for an actual service, replenishes a depleted fund or starts to prepare for a known asset replacement.

Make the capital works plan useful for three to six lots

Small schemes still need to plan for major common-property costs. The NSW Government's Capital works fund planner is specifically described as useful for schemes of up to six lots. All new and updated 10-year plans must use the standard form; plans must be reviewed at least every five years, and a yearly review helps with levy setting. A simple scheme can use the planner, while an older or technically complex property may need a building consultant or quantity surveyor.

Do not simply divide a distant repair cost by ten and call the result adequate. Estimate when each significant item may be needed and what condition it is in now. If the common driveway will probably need work soon, a plan that assumes ten years of saving may be too slow. If the roof was recently replaced and the records include a warranty, the priorities may shift to painting, drainage or fencing. Record the basis for the estimates and update them when quotes or inspection findings become available.

Consider the difference between a three-lot and a six-lot scheme. If a future shared repair costs $18,000 and entitlements happen to be equal, the gross share is $6,000 per lot across three lots and $3,000 per lot across six. Reserves, insurance outcomes and entitlements may change the actual amount, but the comparison shows why a small owners corporation should discuss major works before a contractor is ready to begin.

Keep levy notices and arrears orderly

Many schemes collect levies quarterly, but the AGM should choose a timing that works with the approved budget and upcoming bills. NSW guidance says standard and special levy notices generally require at least 30 days' notice to pay. A shorter, specific rule can apply to a levy for qualifying emergency repairs that address a serious and imminent threat to health or safety. Check the current requirements before issuing notices. NSW levy guidance also explains the hardship information that must accompany levy notices.

In a small scheme, one late payer may represent a quarter or a third of expected contributions. Track arrears promptly and communicate respectfully. An owner may have missed a notice, misunderstood the amount or need a payment plan. Current NSW guidance provides a formal process for payment-plan requests and requires notice before debt recovery. A committee should follow it rather than rely on personal pressure or public discussion of an owner's finances. The NSW guidance on unpaid levies sets out the steps.

Do not let an arrears issue disappear from the cash-flow forecast. If insurance or a safety repair is due, the owners corporation still needs to meet its obligations while handling the debt properly. Report the total amount outstanding in the financial papers, protect the owner's privacy in wider communications and obtain advice before moving to formal recovery.

Run an AGM that makes decisions owners can use

An AGM need not be long, but it must give owners the information needed to decide. Send the agenda and supporting papers in time. The NSW Government meeting guide says written notice of an AGM is required at least 14 days beforehand, while another general meeting normally requires at least seven days' written notice. The agenda should state the motions and the records owners need to consider them.

For a three to six lot scheme, the useful annual pack contains the income and expense position, proposed administrative and capital works budgets, levy amounts and dates, insurance information, maintenance priorities and any quotes requiring a vote. Put important works in a separate motion that names the project, amount or spending limit and funding source. A vague item marked "discuss roof" rarely gives the committee a clear instruction to contract a particular scope of work.

Check the strata roll before notices go out. Owners who do not live in Narooma or Bermagui need the same opportunity to review papers and vote. The meeting can allow lawful electronic participation or voting where the rules and notices permit. Make arrangements clear in advance, especially if a long-distance owner needs to inspect a quote or ask a question. Do not assume that an informal group chat can replace a correctly convened meeting or valid voting process.

Record the outcome accurately and send minutes to owners within the required time. NSW guidance states that general meeting minutes must be given to all owners within seven days. Assign a person and a due date to each approved action: obtain a second quote, ask an engineer to inspect, instruct a contractor, notify the insurer or update the capital works plan. A decision is more useful when someone knows what happens next.

Know when a committee decision is enough

The strata committee can manage many day-to-day matters, subject to the Act, by-laws, spending limits and any restriction set by the owners corporation. A manager may have delegated authority under the agency agreement, but that authority should be checked for the particular expense. For a routine blocked common-property drain, an authorised repair may be straightforward. Replacing a whole driveway, changing common property or raising a new levy may require additional motions or owner approval.

Keep a short decision trail even when all owners agree in conversation. Record the fault, the options, the quote approved, the decision maker and the amount. For urgent work, describe the safety issue, immediate action and follow-up report. The documentation protects the scheme when a lot sells, a committee member changes or a contractor asks who authorised a variation.

Where the project is expensive or disputed, get the relevant professional advice before asking owners to vote on an incomplete scope. The NSW repairs guide explains the need to obtain at least two independent quotes for work at the current statutory threshold and to check contractor qualifications, insurance and contracts. The committee should compare like with like, not just the price at the bottom of two different descriptions.

Treat a repair report as the beginning of a process

An owner says the roof leaks after wind-driven rain. The first step is to record where and when water appeared, check for immediate danger and arrange a suitable inspection. A contractor can identify a simple broken fitting; recurrent water entry may call for an independent building consultant before anyone quotes to replace a whole roof. The committee needs a written finding that separates the cause from the visible damage and identifies any temporary protection required.

Next check the strata plan and past records. Was the roof or flashing altered by a lot owner? Have other lots reported similar damage? Is the repair to common property, an owner's fixture or a combination? Ask the appropriate professional to write a scope, then obtain comparable prices. Provide affected residents with access dates and a practical contact for questions. At completion, keep photographs, invoices, warranties and any consultant sign-off with the scheme records.

The same sequence applies to a lifted shared path, leaning fence or recurring driveway flooding. It prevents a small committee from accepting the first quick patch simply because it can be paid for immediately. A specialist may confirm that a modest repair is enough; equally, early investigation can reveal a larger problem that owners need to fund transparently. Our separate guide to managing South Coast strata repairs covers the wider repair process in more detail.

Plan for a repair that exceeds the available balance

If a repair cannot wait until ordinary levies accumulate, show the options in plain dollars. What is the essential scope? What can be staged safely? What is in the capital works fund? Is any part potentially insured? What contingency is reasonable? If additional contributions are needed, what amount would each lot pay according to its unit entitlement and when would the notice fall due?

For example, a five-lot scheme considering a $15,000 common-property driveway repair might have $5,000 available for that project. The remaining $10,000 would be an average $2,000 per lot only if all five entitlements were equal and the owners corporation chose to raise exactly that balance. The committee should show the actual entitlement calculation, quote inclusions and whether other upcoming capital items still need reserves. Never promise that an insurance claim will remove a shortfall before the insurer has accepted it.

Owners may prefer steady contributions where the timing permits. Yet delaying a safety repair merely to avoid an uncomfortable levy can increase both risk and cost. Present the evidence and explain the consequences of each option so owners can make an informed decision under the correct meeting process. After approval, monitor variations against the authorised amount and report any material change before committing further funds.

Use the right local information for the address

Narooma lies in Eurobodalla Shire, while Bermagui is in Bega Valley Shire. This matters if the owners corporation needs information about a driveway crossover, tree work, drainage, flooding or proposed changes to the land. Do not send a Bermagui approval question to Eurobodalla Council or assume a Narooma site is governed by Bega Valley's planning controls.

For a Narooma scheme, Eurobodalla Council's land mapping tool can help identify planning and environmental layers for the actual parcel. Its development guidance helps owners ask whether proposed building or drainage works require approval. For Bermagui, Bega Valley Shire Council provides flood and land-use planning information. These are research starting points, not a finding that a particular villa is flood affected or that a given repair requires consent.

Locality is also practical. A scheme with holiday owners may need early notice so someone can give a tradesperson access. If a common service is shut off, permanent residents and short-stay occupiers may be affected differently. Record keys, access permissions, emergency contacts and the location of any shared meter or pit. That small amount of preparation can save a wasted contractor visit and the cost of arranging the same work twice.

Give each owner a clear role without making it personal

In a small owners corporation, it is easy for one energetic owner to become the unpaid administrator, emergency contact and unofficial treasurer. That arrangement often works until the person sells, becomes unavailable or a neighbour disagrees with a decision. Choose committee office holders, maintain the strata roll and decide who receives repair reports, checks invoices and updates the action list. Keep scheme money and records under the owners corporation's proper controls.

Use a neutral reporting process. An owner who finds a defect sends the location, photograph and date to the agreed contact. The contact acknowledges it, checks urgency and assigns a follow-up. Comments about who is "at fault" can wait until the plan and facts are known. This protects relationships in a block where owners may see each other every day and still gives a distant owner the same information.

A strata manager can coordinate notices, minutes, levy collection, records, insurance information, quotes and contractor instructions within their authority. The committee still makes the decisions reserved to it and the owners corporation. If a scheme uses a manager, read the agency agreement and fee schedule so everyone knows what routine administration covers and when additional work is charged. A small scheme benefits most when the service level matches its actual workload and building condition.

Keep annual reporting on the calendar

Three to six lot schemes remain within NSW's Strata Hub annual reporting requirements. The report is normally due within three months of the AGM. Decide who will lodge it, gather the meeting date, insurance and capital works information, and update the scheme's contacts when they change. It is easier to complete while the AGM papers are current than to search for them months later.

Add three practical dates to a shared calendar: the AGM preparation date, the insurance renewal date and the capital works plan review date. Put levy due dates and known inspection dates there as well. The calendar does not create any new legal rule. It simply helps a small group avoid the common problem of knowing a task matters while nobody owns the deadline.

A workable year for a four-villa scheme

Picture four villas in Bermagui with a shared drive, common roof elements and a planted frontage. Before the AGM, the committee gathers the insurance renewal estimate, last year's accounts, a contractor note on the drive and the current capital works plan. The AGM approves the coming budgets and levy dates, then authorises an engineer's investigation of a section that has settled. The minutes name the person who will arrange the inspection and report the findings.

After the inspection, the committee receives a written scope and comparable quotes. If the work fits within delegated powers and approved funds, it records the decision and arranges access. If the scope or funding needs owner approval, it convenes a properly noticed general meeting with the report, quotes, funding options and draft motion. After the repair, it files the completion records and updates next year's forecast.

The example is deliberately modest. There is no assumption that every Bermagui property has the same roof ownership, engineering problem or insurance cover. The lesson is the sequence: accurate records, a budget, an informed decision, a documented instruction and a review once the job is done.

Frequently asked questions

Can three to six owners agree to skip formal meetings because they all know each other?

No informal understanding replaces the required strata meeting and record processes. It is possible to make meetings efficient and proportionate, but owners should receive the proper notice, agenda and minutes. A written record also protects an owner who could not attend or buys into the scheme later. NSW meeting guidance explains the basic requirements.

Should every lot pay the same levy in a small scheme?

Not necessarily. Contributions are calculated from unit entitlements, which may differ even in a scheme with very similar villas. Check the registered plan and show the calculation alongside the approved budget. Do not divide the total bill equally by headcount unless that produces the correct legal contribution for the actual scheme.

Is a 10-year capital works fund plan necessary for a five-lot scheme?

Yes, the ordinary NSW planning requirement applies to a five-lot strata scheme. The NSW Government provides a standard-form digital planner that it says is particularly useful for schemes up to six lots. The plan is a forecast to review and use when setting levies; it is not a guarantee that future quotes will match the original estimate.

What happens if one owner cannot afford an unexpected levy?

The scheme should follow the current notice and payment-plan rules, communicate privately and keep the owners corporation's own bills in view. It cannot simply ignore a necessary common-property repair. Check the official levy and payment-plan guidance before choosing a recovery step.

Can Essential Strata help a small Narooma or Bermagui scheme?

Yes. We can discuss the scheme's building, documents, budget and the support the committee wants. Our Narooma office services the surrounding coast, including Bermagui. A proposal should reflect the actual number of lots, building condition, meeting needs and work likely to be required rather than assume that every small scheme is simple.

Speak with Essential Strata about your scheme

If your three to six lot owners corporation in Narooma or Bermagui wants more orderly levies, meetings and repairs, Essential Strata Management can visit the property and review what support is appropriate. Bring the current AGM agenda or minutes, financial statements, strata plan and any known repair issues. Contact our Narooma office through Essential Strata Management to arrange a conversation.

This guide provides general NSW strata information as at September 2026. Decisions for a particular scheme depend on its registered documents, condition, motions and current law. Numerical examples are illustrative and assume equal unit entitlements only where expressly stated.