Tenants in a strata property
According to the NSW Government, there are more than 1.2 million people in NSW living in buildings with strata schemes – this equates to approximately 1 in 7 people.
Each strata scheme will have additional by-laws that all residents, including tenants, living in the strata scheme must follow. These are in place to make communal living easier.
For example, Strata by-laws can include the ruling of noise regulations, parking arrangements, any changes to the common property, where you can hang washing and the allowance of pets.
When it comes letting an investment property in a strata scheme, under Section 26(2A)(a) of the Residential Tenancies Act 2010 (NSW), the landlord must give the tenant a copy of the current by-laws.
In addition, Section 26(2A)(b) requires that, where there is a strata renewal committee and the property manager is aware of that fact, it must be disclosed to the tenant.
Both of these disclosures must occur before the tenant enters into the residential tenancy agreement.
Failure to disclose these facts your tenant can result in a hefty fine.
By outlining rules that every contributor can agree on, living on shared property becomes easier and can save you the trouble of any disputes between tenants.
What happens if my tenant is in breach of the strata by-law?
One of the biggest, and most frequent issues those living within strata communities face, is disruptive behaviour. The most common disputes include unauthorised parking of vehicles in another resident’s car bay, nuisance pets, and excessive noise complaints.
If your tenant is continuously in breach of a by-law, the owners corporation may take these steps:
- Talk to you and the tenant
The owner’s corporation or strata committee may first choose to talk to you the owner, and the tenant about the by-law and ask for the behaviour to stop.
- Write to you and the tenant
If someone continues to breach a by-law, the corporation may advise the person in writing that the particular behaviour or action must cease or that they must do something. This makes it clear to the person of the specific by-law that they are in breach of, and also provides a written record of the Owners Corporations efforts to address the matter with the person.
- Issue a ‘Notice to Comply’
Under the Act if a person continues to breach a by-law a formal ‘Notice to Comply’ may be served on them. This is a formal document notifying the owner or occupier of the breach and setting out what is required by them to ensure compliance with the by-law.
Following this, the corporation may go into Mediation and/or to Tribunal. Visit the NSW Government webpage Understanding by-laws for more information.
What can I do as a landlord?
At Newcastle Property Management, we would advise you of the legal steps you as a landlord can take should your tenant continue to be in breach of your strata by-laws.
However, the best way to avoid all of this is to ensure you get good tenants who recognise the by-laws of living in a strata scheme, and are happy to comply with them in the first place!
This is why we have a high-level screening process for prospective tenants, and ensure they fully understand the terms of their lease agreement, which includes all the by-laws in a strata community, before signing on the dotted line.
Ensuring you adhere to all legislation, including ensuring your tenant understands strata bylaws, is just some of the many responsibilities we undertake when managing your property. And many of our clients say our service is above and beyond expectations.
If you want to know more about our services, give us a call on 02 4956 9777 or pop into our Cardiff office for a chat. Or send us an email to: mail@newcastlepropertymanagement.com.au – we’d love to hear from you.