Pets in strata schemes and why the new laws can benefit investors

Pets in strata schemes and why the new laws can benefit investors

The announcement of new laws about keeping animals in strata schemes in NSW will have been welcome news to pet owners all over the state; as of 25 August 2021, the blanket bans on animals in strata schemes has been lifted, and existing by-laws which unreasonably prohibit the keeping of an animal in an apartment will have no force or effect in strata blocks.

The changes follow a review of the Strata Schemes Management Act 2015 and have been made in recognition of the changing nature of strata living and the increasing shift towards pet ownership.

However, also recognising other owner’s rights, there are some caveats which come with this legislation. Under the new laws, owners’ corporations:

  • can only refuse to allow an animal into the scheme if it unreasonably interferes with another resident’s use and enjoyment of their lot or the common property.
  • can still require residents to apply for approval to keep an animal on their lot.
  • can still set reasonable conditions in their by-laws to manage keeping animals in the scheme. However, by-laws that set a blanket ban on the keeping of any animals within a scheme are not valid.

How does it affect landlords?

While there are plenty of arguments for not allowing pets into a property, there are some very compelling reasons why you should allow pets:

  • Widen your property’s rental appeal

A pet-friendly property will obviously attract more interest from pet owners looking for a rental. Furthermore, allowing pets could give you the competitive edge over similar properties which do not allow pets.

  • Reduce vacancy time

With many properties not allowing pets, once a pet-owner has found a place to rent, we’ve found they tend to renew their tenancy and stay longer. This is good news for your back pocket; as well as not having to pay costs associated with looking for new tenants, your property isn’t losing money sitting empty while you’re waiting for new tenants to move in.

  • Potential to increase rent

Many pet owners are reasonable people and appreciate there may be an increase in wear and tear on the property associated with their furry friend. For this reason, some landlords ask for bit more in rent, or for the tenant to pay a larger deposit to cover any increase in wear and tear.

Communicate with tenants

If you do want to allow pets in your property, we suggest being straight and honest from the start; clearly state the types of pets acceptable at the property (for instance, you don’t want a big dog in a small, second floor apartment) and what additional rent, fees, or deposits will be associated your pet-friendly rental.

When it comes to the new Strata Schemes Management Amendment (Pets) Regulation 2021, the NSW Department of Customer Service has produced a report that outlines the public feedback received on these issues as part of the strata laws statutory review, and explains how the ‘unreasonable interference’ circumstances included in the new regulation were developed. You can take a look at the new regulations here.

However, while pets are now allowed in strata, there may still be other strata by-laws your tenants will need to adhere to; for instance, some strata apartment corporations don’t allow washing to be hung over the balcony.

To find out more about these latest changes, and other strata by-laws visit the dedicated ‘strata by-law’ page on the NSW Fair Trading website.

Any restrictions for a strata property should be highlighted to tenants, so they are fully aware of them all before signing on the dotted line.

Our team is always keen to share its knowledge and help you get the best out of your property. We’re always here for an informal chat to answer questions, so give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office.

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