NSW Property Law - Passing Strata By-Law to Restrict Owners from Property Use?

[Sabrina]

Is it possible to pass a Strata By-Law restricting an owner from leasing their unit to Public Housing NSW under Property Law? We have recently had this experience and the Housing Commission tenant was a nightmare, partying all night, leaving rubbish to rot on the landing, abusing neighbours. The police were called several times. They had their power cut off for unpaid bills and have recently been evicted.

As owners we are trying to find out if there is anything that we can do to prevent the owner of the unit in question from leasing his unit to Public Housing NSW, and thereby not repeating this experience. Apart from the reasons described above we are also aware that having Public Housing NSW tenants will likely have a negative impact on the value of the rest of the apartments in the block. We have raised this with our Strata Manager who has advised that it is not possible to pass a By-Law of this nature as it is discriminatory. Is that true?

I look forward to some information. Cheers.

 

[Sophea]

Hi Sabrina,

There is nothing I know of that would prevent the owners making a new strata bylaw preventing any owners from leasing to Public Housing NSW

You can usually create a new by law by a special resolution passed at a duly convened general meeting of the Owners Corporation. You must notify any new or changed by-law to the Registrar General's Office by lodging a 'Change of By-Laws' dealing form.

 

[GC.]

The NSW Strata Schemes Management Act, Section 49-1 says
"No by-law is capable of operating to prohibit or restrict the devolution of a lot or a transfer, lease, mortgage, or other dealing relating to a lot."

I am not a lawyer, but my interpretation of this is that by-laws cannot restrict who lots are leased to.

FYI, I rent to FACS (Family And Community Services) and have had nothing but good experiences so far. There is a sticker in the fuse box indicating that they had their power cut off at one time, but I don't know why that would bother anyone other than the power company. If you have continuing issues, then I would suggest promptly issuing NTCs (Notice to Comply) to both the tenant and the lot owner, discussion of this sort of thing can be found on flat-chat.com.au