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For those of you who haven't read my numerous other posts, I'm the Secretary of a 27 Lot Self-Managed Plan.
Around 30% of the Units in our Plan are rented to holiday makers, and as a consequence damage to Common Property items within these Units is higher than for Owner-Occupied or even Permanently Rented Units.
I'm talking about insect screens, windows, sliding balcony doors, and locksets where many short-term occupants increase the frequency of Common Property repairs and in some cases replacements to these types of items.
Our AGM is coming up and a few Proprietors have again asked if there is anything that the O/C can do to make the Proprietors of Holiday Rental Units contribute in some way to these higher maintenance and repair costs.
In the past, I've told these Proprietors that Unit Entitlements form the basis of Levy Contributions, and that any other form of differential calculation is not possible; am I correct?
If so, is there any other means by which the Proprietors of Holiday Rental Units can be made to in some way make a contribution to the O/C's costs of attending to Common Property repairs / replacements within these Units?
Thanks in advance.
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The obvious answer (which you have probably though of) is to charge the owners for damage done top common property by their tenants. This is above and beyond repairs and maintenance and is covered in the Act.
The other option might (and I stress might) be to pass a by-law that every owner has to pay a tenant registration fee for every change of tenancy, regardless of how often this occurs.
I'm not sure of the legality of this but if it applies to all owners and is passed by 75 percent at a general meeting, it could even things out neatly. You could justify it by security requirements and administration charges and again, I think it's a requirement under the act that every change of tenancy has to be notified to the OC.
This is what Section 119 says:
119 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 within 14 days after the commencement of the lease.
Maximum penalty: 5 penalty units.
(2) If a lot is subleased, the sublessor must give notice of the sublease, in accordance with this section, to the owners corporation within 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 within 14 days after the execution of the assignment.
Maximum penalty: 5 penalty units.
(4) The notice must specify:
(a) the name of the lessee, sublessee or assignee, 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.
It obviously doesn't cover your question but it may be the key to an answer in a roundabout way. Anyone else with any practical suggestions?
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.
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