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Strata reform: tenants and the Owners Corporation

One of the key governance changes introduced under the new strata reforms is that in some schemes, tenants can have a ‘role’ in the management of the Owners Corporation.

Under the new laws, tenants can be appointed to the Strata Committee if the following applies:

  • at least 50% of the lots are leased; and
  • notice of the tenancy has been provided to the Owners Corporation;
  • the OC must convene a tenants’ meeting to allow eligible tenants to elect a representative to the Strata Committee.

Despite a tenant’s appointment to the Strata Committee, a tenant will only have limited rights.  That is, they:

  • cannot put a motion on the meeting agenda;
  • cannot be the Treasurer, Secretary or Chairperson of the Owners Corporation;
  • are not counted when considering whether a quorum exists for Strata Committee meetings.

A tenant representative may also be asked to leave meetings when financial matters, levy contributions (including recovery of unpaid levies) and strata renewal matters are discussed.

In the case of General Meetings, whilst tenants can now attend those meetings, they have no voting rights.

We believe this development is consistent with the reality of modern day living and represents a significant shift in slowly giving tenants more rights in respect of the strata complex in which they live.

Lot owners (such as owner occupiers and investors) and tenants all will be affected by the upcoming strata changes.  If you have a strata issue you would like to discuss or a question around how the new strata laws and changes may affect you or your strata scheme, please get in touch with ClickLaw today.

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