Car Stackers in Apartment Buildings: What Owners Corporations in Victoria Should Know

Car stackers are increasingly common in apartment developments across Victoria. Developers often use them to meet council parking requirements without building extra basement levels, which can reduce upfront construction costs.

However, once the building registers and the owners corporation assumes responsibility, Committees often begin to ask a more practical question:

Are car stackers a good long-term solution for our building?

While car stackers save space and reduce upfront development costs, they introduce ongoing financial, operational, and governance obligations that many owners corporations don’t plan for early enough.

If your building includes a car stacker system or you’re considering buying into a building that uses one, here is what every Victorian owners corporation should assess.

Key Takeaways:

  • Car stackers can save space, but servicing, inspections, and call-outs can cost thousands each year, plus major repairs over time.
  • Sharing servicing costs often causes disputes, especially when some residents don’t use the stackers. Committees may need expert help to resolve this fairly.
  • Breakdowns, power outages, and user mistakes can leave cars stuck or cause damage. Limited local support makes these issues harder to manage.

1. The true cost of car stackers for owners corporations

Car stackers function as mechanical plant and equipment. Like lifts, they require scheduled servicing, safety inspections, and occasional major repairs.

Depending on the system size and complexity, annual servicing costs can range from several thousand to tens of thousands of dollars per year (and that’s before major component failures or one-off call-outs).

Owners corporations should plan to:

  • include servicing and inspections in the annual budget
  • allow for emergency callouts and downtime
  • plan for long-term replacement of key components
  • treat the stacker as a capital asset in maintenance planning (where applicable)

Many Committees inherit these obligations without fully understanding the long-term cost profile.

When managers fail to forecast properly, levies increase, placing pressure on lot owners and often leading to internal disputes.

2. Who pays for car stacker servicing? Cost allocation issues in Victoria

Cost allocation is one of the most common flashpoints with car stackers.

In new developments, the plan of subdivision and lot liability schedule is set during the subdivision process. In practice, some Owners Corporations later discover that servicing costs are being charged across all lots, even where:

  • some owners do not have a car space, or
  • some owners have parking that does not rely on the stacker, or
  • access to the stacker is effectively limited to certain lots

We had a client in Brunswick where all the lot owners (i.e., the owners corporation) were responsible for the servicing costs of the car stacker, even though not all owners used it or had access to it.

This became an issue for the owners who didn’t have a car space or had a car space not in the car stacker unit. Their owners corporation manager (appointed by the developer) was out of their depth on this issue as they were predominantly a residential real estate agency.

The Committee, after going through our strata consulting services and changing owners corporation management companies, we were able to derive a suitable solution in conjunction with their new manager to remedy the issue. If your Committee faces similar allocation concerns, it may be worth reviewing whether your current management structure genuinely supports your building’s needs.

3. Training and induction: reducing human-caused damage

Car stackers require proper induction. New residents, tenants, and short-stay guests often misuse systems because no one provides structured training. Misuse frequently results in:

  • vehicle damage
  • mechanical damage
  • emergency call-outs
  • insurance complications

Owners corporations should implement:

  • a formal induction process (even a short one)
  • clear signage at the point of use
  • written user guidelines (simple, building-specific)
  • access controls where appropriate (so only inducted users can operate the system)

Without structured oversight, avoidable mistakes tend to increase maintenance costs for everyone.

4. Breakdown, parts, and manufacturer limitations

Like any piece of machinery, car stackers can break down, and sometimes, given they’re still not a ‘mass market’ item in Australia, parts can take a long time to obtain.

The other issue that has been common is that a lot of the manufacturers are overseas companies that don’t yet have a strong local presence.

5. What happens when the power is out?

Power outages present a practical problem. Unless the building has backup power or a manual override system, owners may need to engage an electrician to retrieve vehicles, often at their own expense.

This scenario can create frustration and expose governance weaknesses if the owners corporation has not planned appropriately.

A Committee should know:

  • whether the system can be manually lowered or released
  • who is authorised to do it (and whether a contractor is required)
  • what the building’s emergency plan says
  • what the likely cost and response time is

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Are car stackers a good idea for owners corporations?

Car stackers are not inherently problematic. They solve a spatial constraint and reduce development costs. However, from an owners corporation perspective, they introduce:

Advantages

  • efficient use of limited space
  • compliance with council parking requirements
  • lower initial construction cost

Risks

  • ongoing servicing expenses
  • allocation disputes
  • operational disruption
  • long-term maintenance uncertainty
  • increased reliance on competent management

For many Victorian buildings, the real issue is not the machinery itself, but whether the owners corporation has structured governance, budgeting, and management correctly from the outset.

Why management quality matters in buildings with car stackers

Car stackers reduce construction costs, but they introduce ongoing servicing obligations, cost allocation risks, and operational complexity for owners corporations in Victoria.

In most cases, the real issue is not the machinery, it is whether the building has the right management oversight in place. Complex assets require clear budgeting, proper governance, and experienced strata management.

If your owners corporation is facing recurring disputes or reactive management around a car stacker system, it may be time to review whether your current manager is meeting your building’s needs.

At Strata Management Consultants, we help Victorian Committees assess their current management and transition to vetted, OCM-qualified managers who prioritise structure, transparency, and long-term planning.

If your Committee is considering changing your strata manager, you can contact our Consultants at 03 9007 2618.

Frequently Asked Questions About Car Stackers and Owners Corporations in Victoria

The contents of this article or website are only intended to provide a general overview of the topics discussed. The author of this article makes no representations as to the accuracy or completeness of any information and the information is not intended to constitute investment, legal or professional advice. You should seek professional advice before acting or relying on any of the content. This article does not contain references to any specific company, organisation or individual, unless expressly specified.
Posted
April 28, 2023
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