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 schemes.

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 situation
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 amendment process.

Tenant representation
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 Secretary).

The Act defines an eligible tenant as a tenant who has been notified to the owners corporation by a Tenancy Notice.

Notice of the meeting for eligible tenants may be provided to tenants by either:

  1. a personal notice to each tenant, or
  2. 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 entitled to:

  1. vote on decisions, or put forth a motion to the committee; or
  2. 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 following:

  1. financials statements or reports of the scheme;
  2. levy contributions; or
  3. 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.