The owner or occupier of a lot must ensure that 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 are allowed, and that the use of the lot does not create a nuisance or hazard to others in the strata scheme.
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. Owners corporations are able to enforce these by-laws and apply to the Tribunal 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, such as short-term letting to holiday makers. This 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 Tribunal to vary the contribution 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. Owners corporations may wish to seek expert advice on this issue if they have been informed that their insurance premiums have been affected by short-term letting.
© State of New South Wales (NSW Fair Trading). For current information go to fairtrading.gov.au
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