Bear – I’m not surprised by Fair Trading’s reported response as they’re typically uninformed with regard to such matters, but I am surprised by Sydney City Council’s reported response, because they’ve been outspoken on such matters and typically their consents for the construction of multi-unit complexes include conditions stating that the building provide may only be used as a residential complex and not accommodate “more than two or three adult persons per bedroom”.
In any case, there’s no “superior law” of relevance that I’m aware of in NSW, although I’m sure that NSW Fire & Rescue quoted similar occupation rates as being desirable for the bedrooms of apartment buildings after a disastrous fire in an overcrowded building in Liverpool.
So your Owners Corporation (O/C) can legitimately make a Special By-Law to prevent “hot-bedding” (which is what you’re doing) based on the floor space and the numbers of bedrooms, furthermore members of the Executive Committee are entitled to inspect your Unit to check compliance, and as you’ll read in Austman’s post new NSW Strata Laws will further substantiate your O/C’s decision.
Anyway, you’ve got your response – and although I’m sure it’s not the one that you wanted, aren’t a couple of additional people enough to supplement your income?