NSW: Q&A Can tenants attend strata meetings and hold positions on the committee?

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This article discusses tenants rights in a strata building.

Table of Contents:

• QUESTION: An owners corporation is considering funding much needed repairs using an unsecured loans from a number of tenants. Are those same tenants able to vote on approving the loan at a committee meeting?
• QUESTION: Should tenants be advised of any changes that are made at committee meetings, especially if it is something like changes to the strata parking rules?
• QUESTION: We live in a small strata complex where half the residents are tenants. Can tenants attend strata meetings and hold positions on the committee?

Question: An owners corporation is considering funding much needed repairs using an unsecured loans from a number of tenants. Are those same tenants able to vote on approving the loan at a committee meeting?

If an owners corporation is considering funding much needed repairs using unsecured loans ($300k) from a number of tenants at 5% interest over 7 years, are those same tenants able to vote on approving the loans at a committee meeting (they are all on the committee)? Or, due to a conflict of interest, should they be prohibited from voting? 

Answer: Only one tenant representative is allowed on the strata committee and that tenant does not have voting rights.

This is not a lawful arrangement because there is only ever one tenant representative on the strata committee and that tenant does not have voting rights. Please see below. Further, any loan must be approved by resolution at a duly convened general meeting of the owners corporation not at a strata committee meeting. See Section 33 of the Act.

33 Tenant representatives

1. This section applies to a strata scheme if there are tenants (being tenants notified in a tenancy notice given in accordance with this Act) for at least half of the number of lots in the scheme.
2. The tenants of lots in a strata scheme (being tenants notified in a tenancy notice given in accordance with this Act) may nominate one tenant representative for the strata committee.
3. The tenant representative on a strata committee, in that capacity:

   1. is not entitled to vote on decisions of the committee or to put a motion or nominate a person for office, and
   2. is not entitled to act as an officer of the owners corporation for committee purposes, and
   3. cannot be counted in determining whether there is a quorum of the committee

Leanne Habib
Premium Strata
E: [email protected]
P: 02 9281 6440

This post appears in the April 2021 edition of The NSW Strata Magazine.

Question: Should tenants be advised of any changes that are made at committee meetings, especially if it is something like changes to the strata parking rules?

Should tenants be advised of any changes that are made at committee meetings attended and voted by strata residents?

I live in NSW and the reason I asked the question is apparently parking rules have changed but the tenants weren’t informed. Surely we can expect to be informed of changes?

Answer: Tenants should be advised of any changes to by-laws at a building, particularly when it concerns the behaviour of residents.

Tenants should be advised of any changes to by-laws at a building, particularly when it concerns the behaviour of residents. These changes must be made a general meeting.

The Act allows for tenant participation in a meeting if a building is over 50% tenanted and for a tenant to attend a meeting if they are on the strata roll.

The tenant should ask their managing agent to contact the strata manager about any changes. It would be normal for any such changes to be advertised in a distribution to residents.

Andrew Terrell
Bright & Duggan
E: [email protected]
P: 02 9902 7100

This post appears in Strata News #253.

Question: We live in a small strata complex where half the residents are tenants. Can tenants attend strata meetings and hold positions on the committee?

I am the secretary of a small self managed strata of 4 units in Sydney NSW. Some units are bigger than others and therefore pay higher strata fees, in case this is significant.

One owner has suggested that because 2 out of 4 units are being rented and it looks as though they will be for years to come, a tenant has the right to be put forward and be elected to a position on the Committee.

Is this correct? Can tenants attend strata meetings and be part of the committee?

If so, does it make any difference that renters form less than 50% of unit entitlements, ie the 2 smaller apartments are rented and the 2 bigger are owner occupied?

Does the Committee need to notify anyone other than all owners of meeting agendas and minutes?

Do tenants have the right to attend AGMs perhaps even speak at AGMs but not the right to vote on any issue?

Answer: They can elect a tenant representative if they wish.

Is this correct? Yes, they can elect a tenant representative if they wish.

No, it doesn’t make any difference that renters form less than 50% of unit entitlements.

If the tenants wish to appoint a tenant representative than the Committee does need to notify this representative of meeting agendas and minutes.

Tenants can attend meetings but they might be asked to leave for discussion on any matters of a financial nature.

This page from NSW Fair Trading also has some really helpful information about tenants attending strata meetings: Tenant participation.

Andrew Terrell
Bright & Duggan
E: [email protected]
P: 02 9902 7100

This post appears in Strata News #241.

Have a question about tenants in strata or something to add to the article? Leave a comment below.

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