Damp management process for sectional title schemes

Damp remains one of the most common and most misunderstood issues reported in sectional title schemes. While much of the existing guidance understandably focuses on whether damp-related damage may or may not result in an insurance claim, that is only part of the picture. From a managing agent’s perspective, the real challenge lies in understanding the true cause, establishing responsibility, managing expectations, and applying a fair and consistent process across all parties involved.

In this article, Candice Persson shares how she approaches damp in practice, drawing on her experience as both a portfolio manager and someone who has worked closely with insurers. This dual perspective allows her to balance legal responsibility, practical resolution, and clear communication and to guide trustees and owners through damp issues in a way that is structured, fair, and workable in the real world.

Damp management process for sectional title schemes

My approach to damp is practical, structured, and based on experience across multiple schemes. The objective is always to understand the issue properly, identify the true cause, and apply a fair and legally sound process.

1. Information gathering

The first step is always to obtain as much information as possible. I need to understand what the issue looks like, where it is presenting, how long it has been occurring, and whether there have been any previous repairs or similar complaints. This initial information helps determine the most appropriate next step and avoids unnecessary costs or assumptions.

2. Initial investigation by contractor

I arrange for an investigation before any assumptions are made. I generally use my regular contractor – the same contractor who would likely carry out the repair work – as they often investigate at little or no cost. This keeps expenses under control and allows for a quicker, more accurate diagnosis. The contractor must be experienced, trustworthy, and familiar with the site.

3. Request for a clear diagnostic report

I require a proper report that answers the following: – Is this genuinely damp, or something else? – Has the issue developed over a long period, or is it recent? – Is it damp or an active leak? – What is the actual root cause?

4. Determining responsibility

Once the cause is established, I assess responsibility in line with the Sectional Titles Schemes Management Act, the scheme rules, and relevant conduct rules: – Is the issue the responsibility of the body corporate? – Is it between two sections? – Is it an owner’s responsibility?

When responsibility is clear, I explain this to the relevant parties, including the reasoning and the legal basis, and outline what steps are required to resolve the issue.

5. Actioning repairs and insurance considerations

If the body corporate is responsible, I initiate the required repair process. At the same time, I assess whether the matter may give rise to an insurance claim. Where it is not claimable, I explain clearly why this is the case so that expectations are managed upfront.

6. Cause first, damage second

The cause of the problem is always addressed first. Only once the source has been resolved do we deal with internal or resultant damage. This approach protects the owner, prevents repeat issues, and ensures there is clear evidence that the underlying problem has been fixed.

7. Rules and scheme-specific application

I always check the scheme’s rules regarding external causes and internal damage. Not all schemes interpret or apply the legislation in the same way, and some have specific rule provisions. I apply the process that is both legally compliant and fair, taking the specific scheme context into account.

8. Communication

Throughout the process, I keep both trustees and owners informed. Clear, consistent communication is critical in managing expectations and reducing frustration.

Guiding principle

In short: fix the cause first, then deal with the resultant damage.

The overall goal is to understand what the issue is, why it is happening, and to clearly explain who is responsible.

In practice, many reported “damp” cases are not damp at all. Water damage is often incorrectly labelled as damp, and true damp is generally not an insurance matter. A significant part of the process therefore involves education, followed by addressing the real issue.

From experience, having a reliable and knowledgeable contractor is key. In most cases, an engineer is not required – a solid investigation by the right contractor resolves the issue efficiently.