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Hi,
I'm after information on any restrictions which may be imposed on lot owners who wish to rent out their unused car spaces to others who do not reside or work in the building by local government (City of Sydney Council) or the Strata Management Act.
We have a lot owner who is renting out a number of spaces to non-residents & we would like to know where we stand.
The building is a mix of mostly residential, some commercial units.
Thanks in advance!
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Replies
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Hi Tharra
Under s.49 of the Strata Schemes Management Act 1996, a by-law can not operate to prohibit or restrict the devolution of a lot or a transfer, lease, mortgage, or other dealing relating to a lot.
Therefore, no by-law is capable of operating to prohibit or restrict the leasing of a lot or part of a lot. An owner is legally able to lease his or her car space.
Kind regards,
Simone Balsara
Lawyer
TEYS Lawyers
The Strata Law Experts
02 9562 6500simone@teyslawyers.com.au
https://www.teyslawyers.com.auI hate to contradict a lawyer but think there's a bit more to it than that.
For instance, City of Sydney planning regulations appear to forbid the leasing of car spaces to non-residents. There's also the question of security of buildings which can be hugely compromised by allowing non residents to come and go into parking spaces.
The same section of the law has been used to try to allow short-term rentals in residential buildings and, as far as I know, has failed to do so when it has been challenged.
In my non-legal experience there are may other ways around Section 49 – otherwise we'd be saying that inner city apartment blocks can become parking stations for greedy owners.
For instance, a by-law that says owners may not operate their lot in contravention of the law – including planning law – would surely squash the parking scam.
On this interpretation, Section 49 would allow sub-letting, overcrowding, unrestricted pets, holiday rentals, brothels … whatever, because it allows free rein to the lot owner to ignore by-laws that they don't like.
Surely not? If this is the case then a lot of buildings in inner Sydney especially are going to have a lot of problems with opportunist parking space rentals.
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.
I just spoke to someone at City of Sydney and they said there is no universal law against this but any “recent” developments (say, newer than 8-10 years or so) would “probably” have had such a clause included. You need to look at the planning consent issued for your building to see if it was prohibited under that document. If it is, you have a very strong case.
Failing that, does anyone else have any cunning plans for dealing with rogue parkers? How about keys can only be issued to residents and their resident guests? Would that work?
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.
The terms of the planning consent of the building issued by the local authority can specify the activities that are prohibited within the scheme.
However, from the perspective of the Strata Schemes Management Act 1996 (the Act), such activities can not be restricted by the owners corporation.
Restricting short-term letting is invalid under the Act. If short-term letting is permitted under the terms of the development consent and any instrument under the Environment Planning and Assessment Act 1979, then any by-law seeking to restrict this right is invalid under s.43 (4) of the Act.
Kind regards,
Simone Balsara
Lawyer
———————————-
TEYS Lawyers
The Strata Law Experts
02 9562 6500simone@teyslawyers.com.au
https://www.teyslawyers.com.au
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