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This is a massive area of non-compliance in strata – especially considering its implications for management and representation in strata blocks.
My contacts in the strata management industry tell me that about 60-70 percent of rental agents notify the Owners Corp of a new tenant when they first let a property and about 30 percent of private landlords.
These figures soon drop to 30 percent and less than 10 percent respectively as they neglect to keep the committee informed of changes to tenancies. I’d take those figures as anecdotal and they vary from building to building but they do indicate the existence of a culture of non-compliance.
The irony is that it is one of the very few areas of strata law that actually carries a penalty ($550 max – see Section 258 below).
It is also one of the reasons that there are very few if any apartment block strata committees that have tenant representatives. Given that more than 50 percent of apartment residents are renters, and in some buildings that’s as high as 80 or 90 percent, they should easily pass the 50 percent threshhold that triggers the election of a tenants rep.
But that would require all the tenants to be registered with the Owners Corp and they’re not. Section 258 presents an opportunity for strata committees to get a grip on who is living in their building, make some money (the fines would be paid to the Owners Corp) and even use it to curb illegal short-term rentals.
But in one of those “be careful what you wish for” scenarios so common in strata, they might find themselves with a tenant rep on their committee which, as we all agree, would mean the end of civilisation as we know it.
258 Tenancy notice to be given to owners corporation of leases or subleases
(1) If a lot is leased, the lessor must give notice of the lease, in accordance with this section, to the owners corporation not later than 14 days after the commencement of the lease.
Maximum penalty: 5 penalty units.
(2) If a lot is subleased, the sub-lessor must give notice of the sublease, in accordance with this section, to the owners corporation not later than 14 days after the commencement of the sublease.
Maximum penalty: 5 penalty units.
(3) If a lease or sublease of a lot is assigned, the assignor must give notice of the assignment, in accordance with this section, to the owners corporation not later than 14 days after the execution of the assignment.
Maximum penalty: 5 penalty units.
(4) The notice must be in writing and specify:
(a) the name of the tenant and an address for service of the tenant, and
(b) the date of commencement or assignment of the lease or sublease, as the case requires, and
(c) the name of any agent acting for the owner in respect of the lease or sublease.
Note : An address for service of notices may be an Australian postal address or other electronic address, including an email address (see section 261).
(5) This section does not apply to the lease of a lot by the lessor of a strata leasehold scheme to a lessee who is the owner of a lot.
(6) A notice under this section is to be given to the original owner if it is given during the initial period of the owners corporation for a strata scheme.