By-laws in NSW may limit the number of adult residents in a lot. The limit however cannot be fewer than two adults per bedroom and cannot contravene any planning approval or other applicable law.

The Strata Schemes Management Act 2015 (which commenced on 30 November 2016) provides tenants (whose landlords have provided a Tenancy Notice to the Owners Corporation as required) with the right to attend meetings of the Owners Corporation but not speak without the permission of owners.

Short-Term Letting 

In relation to short-term letting, the owner/occupier of a lot must ensure that the lot it is not used for any purpose that is prohibited by Council planning regulations and other laws. They must also ensure that the lot is not occupied by more people than allowed and that the use of the lot does not create a nuisance or hazard to others in the strata scheme.

The Strata Schemes Management Act 2015 prevents an Owners Corporation from restricting an owner from letting their lot, including short-term letting. The only way short-term letting can be restricted is by Council planning regulations.

Sometimes short-term stays may result in disruption to long-term residents. The model by-laws require people in a strata scheme to not make excess noise or behave in a way that disrupts other occupants’ “quiet enjoyment” of the strata scheme. If Owners Corporations adopt these by-laws (or similar by-laws) they are able to enforce them and apply to the NSW Civil and Administrative Tribunal (NCAT) to impose penalties.

If adopted, there is a model by-law that requires lot owners and occupants to notify the Owners Corporation at least 21 days before changing the use of their lot. This by law would capture a change from permanent letting to short-term letting. This then allows the Owners Corporation to make security, insurance and other necessary arrangements.

The law also allows lot owners or the Owners Corporation to apply to the NCAT to vary the contributions paid by a lot owner where their activities may affect the amount of the premium paid by the Owners Corporation for the scheme’s insurance.

Tenants Representatives

The Strata Schemes Management Act 2015 (which commenced on 30 November 2016) provides tenants (whose landlords have provided a Tenancy Notice to the Owners Corporation as required) with the right to attend meetings of the Owners Corporation but not speak without the permission of owners.

Tenants cannot vote on matters at the meeting unless they hold a proxy and they may be excluded from the meeting where certain matters are discussed (eg financial matters or a proposal for the collective sale of the strata scheme).

In buildings where tenants (whose landlords have provided a Tenancy Notice to the Owners Corporation as required) live in at least half the number of lots in the scheme, the tenants have the right to nominate a tenant representative as a member of the Strata Committee. The Strata Committee is the committee that looks after the day-to-day running of the strata scheme.

In such a circumstance, the Owners Corporation is then responsible for calling a meeting of the eligible tenants at least 14 days before the next AGM. The meeting can either be chaired by the Chairperson or someone nominated, including a tenant. The tenants then nominate one tenant to be their representative on the Strata Committee. The tenant representative is introduced at the AGM and holds office until the next AGM concludes.

While the tenant representative can attend and speak at Strata Committee meetings, they do not have a vote and cannot make up the quorum of a meeting. The representative can also be asked to leave the meeting if certain financial issues are to be discussed. The tenant representative, as a member of the Strata Committee, is entitled to a copy of the agenda and any minutes of meetings held.

Liability limited by a scheme approved under Professional Standards Legislation
Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.


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The MBA Partnership is one of the most experienced firms of management rights accountants in Australia. Many of their clients are new to the management rights industry, and with over 30 years experience in management rights they have the expertise to help you set up correctly from the beginning. From due diligence, accounting, taxation and auditing Paul and his team can guide you through the entire process.

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Mark Ryall


Management Rights and Motel Finance Pty Ltd is an industry leader in providing specialist finance needs to companies and individuals embarking on the purchase of a Management Rights business. Mark and his team is dedicated to helping you with all your management rights and motel finance needs! We work around the clock to make sure you receive the best deals.

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Management Rights Articles


    It’s on! The state’s much-anticipated and long-overdue strata reforms have a definite start date. November 30 is the big day so it’s an early Christmas present for some apartment residents – although some of the “gifts” may be less than gratefully received.



SMH Lawyers handles all aspects of a Management Rights transaction from establishing, purchasing and selling Management Rights to advising bodies corporate on strata related issues and disputes. Col Myers and his team of experts is constantly exposed to all aspects of the management rights industry which means they can proactively advise when and how to best handle management rights to work effectively for individual scenarios.

Phone: +61 7 5552 6604 | Mobile: +61 417 620 516

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Years of consistent sales have resulted in a highly recognised team. The MR Sales team have the knowledge and ability to liaise with industry professionals from bankers and accountants to lawyers and valuers. This gives MR Sales the knowledge and know-how to assist in determining what sells and why. With over 21 years’ experience in the industry, this team has a great deal of knowledge and experience to bring to the Management Rights seminars.


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