tenants-in-strata

Tenants in Strata

What role can tenants play in strata?

One new area of focus of the 2015 legislation relates to tenants. A tenant is a lessee or a sublessee of a strata lot. Obligations relating to tenants exist on investor owners and owners corporations.

The following information is contained in Sections 33, 186 & 258 and Schedule 1 of the Strata Schemes Management Act 2015 (NSW), and Clause 7 of the Strata Schemes Management Regulation 2016 (NSW).

INVESTOR OWNERS & THEIR TENANTS

An owner must:

  • give their tenant a copy of the by-laws for the scheme
  • provide a written tenancy notice within 14 days of commencement of lease which includes:

(a) the name of the tenant and an address for service (postal or email), and

(b) the date of commencement or assignment of the lease or sublease, and

(c) the name of any agent acting for the owner in respect of the lease or sublease.

Note: the person has deemed an eligible tenant if they can be identified via a valid “tenancy notice”.

TENANTS & GENERAL MEETINGS

Eligible tenants:

  • have the right to attend meetings
  • are to be sent the agenda of the meetings (If there is a noticeboard by-law then the agenda on the noticeboard will suffice).
  • cannot address the meeting unless there is a resolution to enable them to do so. This means that the agenda must include a motion to given the tenant the right and then this motion would be approved by a majority vote.

The owners corporation can determine at the meeting that they wish for tenants to leave when considering financial matters of the scheme.

Note: a tenant can still represent an owner at a general meeting via a valid proxy.

TENANT REPRESENTATIVE ON THE STRATA COMMITTEE

If at least 50% of the lots are tenanted then the scheme must convene a meeting of eligible tenants for nominating a tenant representative on the strata committee.

HOW THEY ARE SELECTED

  • The meeting should occur at least 14 days before AGM for a meeting not earlier than 7 days after the notice.
  • The notice for this meeting can be either displayed on the noticeboard or given to every tenant.
  • The convenor or eligible tenant is to chair.
  • The quorum is 1.
  • The tenant representative is determined by the majority vote of those present at the meeting.

THE ROLE

The term starts at end of AGM at which nomination is received and ends at the end of the next meeting where a new committee is elected.

Then tenant representative cannot:

  • put a motion to the committee
  • nominate an officer
  • be an officer
  • be included in the quorum count, or
  • vote,

If you have any questions, simply contact your Strata Plus strata manager.

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