The amendments to the Strata Schemes Management Act
(Act) relating to Tenant Representation are aimed at encouraging
greater tenant participation in the management of strata
The Strata Schemes Management Act amendments will take effect 30
November 2016. These amendments will affect the many residents of
New South Wales, currently living in a strata dwelling, all Owners
Corporations and Strata Committees as well as developers and
builders who plan on erecting a strata building.
Current legislation only permits owners of lots to be involved in
the meetings of the owners corporation. The only way for tenants to
be involved in the management of their building is to become a
proxy vote for the owner of the lot in which they live (or a proxy
vote for another owner).
This has been a matter of concern for tenants, with many tenants
voicing their concerns at the public commentary stage during the
Under the Act, landlords who lease a unit within a strata scheme
must notify the owners corporation that the unit has been leased.
Notice must take place within 14 days of the lease being entered
into. This is defined as a Tenancy Notice.
From 30 November 2016, for all schemes where 50% (or more) of
the lots are occupied by a tenant, a meeting for all
eligible tenants is to be convened at least 14
days prior to the Annual General Meeting (AGM) of the owners
corporation. This meeting is to be convened by the same person
appointed to convene the AGM for the owners corporation (usually
The Act defines an eligible tenant as a tenant
who has been notified to the owners corporation by a Tenancy
Notice of the meeting for eligible tenants may be provided to
tenants by either:
a personal notice to each tenant, or
a general notice being placed on the strata notice board, or
another common property area.
At the meeting held for eligible tenants, a representative,
called the Tenant Representative, must be elected
to represent the eligible tenants at all future meetings held by
the owners corporation.
Tenant representative powers
Once a Tenant Representative is nominated they are to attend and
participate in meetings. However, the Tenant Representative is not
vote on decisions, or put forth a motion to the committee;
nominate a person for office, to be counted in determining
whether the quorum (the minimum number of members required for a
meeting to proceed) is met.
Additionally, committee members of the owners corporation may
remove a Tenant Representative from a meeting of the owners
corporation (or a portion of the meeting) which deals with the
financials statements or reports of the scheme;
levy contributions; or
the strata renewal proposals.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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A lessee will need to demonstrate that the genuine interests of the lessor will be protected if relief is granted.
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