Jimmy T’s suggested by-law above is the best I’ve seen – of particular note and persuasion is/are Point 4, c), d) and e).
There is the real concern that any/every such by-law could (currently) very well be challenged in the NCAT and deemed inappropriate under section 49 (1) of the NSW Strata Schemes Management Act (SSMA), which says:
STRATA SCHEMES MANAGEMENT ACT 1996 – SECT 49
Restrictions on by-laws
49 Restrictions on by-laws
(1) By-law cannot prevent dealing relating to lot No by-law is capable of operating to prohibit or restrict the devolution of a lot or a transfer, lease, mortgage, or other dealing relating to a lot.
At the recent Parliamentary Hearing in Sydney into legislation covering short-term letting, a recommendation by a senior strata lawyer was put to MPs that section 49(1) be amended so that Owners could take a vote at a General Meeting and, with 75% voting in favour of a by-law on short-term letting, the Owners Corporation would have control over how their Lots are to be used. However, the way this was proposed, it would also mean that 75% of Owners could vote to allow short-term letting, contrary to the Development Consent granted on the building – your strata could be turned into a quasi-hotel overnight if enough Owners wanted this.
Since then there has been another proposal put to the Parliamentary Members and senior staff at Fair Trading (by a ‘common person’ – not a strata lawyer) suggesting that Section 49(1) of the SSMA be amended so that Owners Corporations be allowed to pass such a by-law, however it was stressed that any such by-law must be in line with the original Development Consent/Approval granted on the Strata.
Time will tell which way the NSW Parliament ‘jumps’ on this issue.
I fear profoundly that the building in which I live could, overnight, be advertised globally again as a “cheap/budget 3-star hotel/motel/serviced apartments/backpackers lodge”. A return to chaos would be guaranteed.
A report by the NSW Parliament into legislation covering short-term letting is now due around July, so the word goes.