#35498
Jimmy-T
Keymaster

    This is a tricky (and interesting) one. As in most states, levies and fees are to be apportioned according to unit entitlements (or lot liability, in Vic). However, your neighbours who don’t lease their apartments to the hotel have decided that they don’t want to pay for the added wear and tear and damage to common property, as well as additional electrical charges etc, that hotel guests cause.
    So then we find Section 28 of the Act (below). Sub-section 3 says owners are liable to pay for “repairs, maintenance or other works … which are wholly or substantially for the benefit of some … but not all, of the lots.”
    If that’s the clause they are using to make levies more in line with usage, then they may have a case. And then we look at 28(1) which says owners are liable for outstanding “fees, charges or contributions”.

    You and your other holiday letting owners might want to get together and challenge the whole thing at VCAT. You personally might argue that since the debt wasn’t “outstanding” when you bought the unit, you can’t be charged for the portion owing before you bought it.

    But one thing does occur to me – if this charge stands up to a challenge at VCAT, apartment owners in Victoria might have found the magic bullet that will bring the wildfire spread of Airbnb-style rentals to a shuddering halt.

    28. Liability of lot owners
    (1) The owners for the time being and any purchaser in possession of, and any person entitled to receive the rents and profits from, a lot are liable to pay any outstanding fees, charge, contribution or amount owing to the owners corporation in respect of that lot.
    (2) A lot owner is not liable to pay or contribute to the funds of the owners corporation a proportion of any amount required to discharge a liability of the owners corporation exceeding the lot owner’s lot liability.
    (3) Sub-section (2) does not apply to an amount payable to an owners corporation for repairs, maintenance or other works that are undertaken by the owners corporation on common property or a lot and which are wholly or substantially for the
    benefit of some or one, but not all, of the lots affected by the owners corporation.

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.