Question: We’ve used a storage room on our floor for over 20 years. The committee has decided to charge rent for the room. Can they request we pay $600 a month to rent the room prior to a decision being reached at the AGM?
Our owners corporation has a by-law providing that fobs can only access respective floors in our building. Various residents on our level (8) have shared a storeroom located on this floor for the past 20 years. The room is not classified as a storage area on the strata plan like other storage areas in the complex. The residents were advised maintenance of the room was the shared responsibility of the lot owners on level 8, not the owners corporation.
The strata committee would now like to rent the storeroom. We’ve been told to either remove our items or start paying rent at an amount of $600 per month.
If the storeroom is offered to others in the building, we feel the security and privacy of the residents on our floor would be compromised.
Do we have any rights? Can the committee impose a rent prior a decision being made at the AGM?
Answer: Attend the general meeting and voice any concerns prior to the owners voting on the resolution.
Based upon the information provided, it appears the room you are referring to is common property.
I also assume there are no by-laws in place in relation to the room.
Section 112 of the Strata Schemes Management Act 2015 provides the owners corporation with the right to licence the room, subject to the licence being approved by the passing of a special resolution:
112 Owners corporation may grant licence to use common property
- An owners corporation may grant a licence to an owner or occupier of a lot in the strata scheme or another person to use common property in a particular manner or for particular purposes if the owners corporation has approved the granting of the licence by a special resolution.
- A licence may be granted subject to terms and conditions.
- Without limiting this section, a licence may be granted under an agreement with the local council for a strata parking area under section 650A of the Local Government Act 1993.
The owners corporation will usually have a solicitor draft a licence agreement.
The licence agreement will then be annexed to the notice of the general meeting pursuant to which the special resolution is to be made.
You may wish to make enquires with the strata manager to obtain a copy of the licence agreement before the notice of the general meeting is issued. You should inform the strata manager that you have concerns in relation to people having free access to level 8, that the licence agreement should have terms and conditions to maintain security on level 8, and you would like to review the licence agreement to ensure it does not impact upon your security or privacy.
For example, you may consider if the licence agreement should limit the number of people who may at any time hold a licence to use the room, limit the number of access cards issued for use in relation to the room, place restrictions on items which may be stored in the room (no flammable goods, no perishable foods, etc.).
It would be better for you if your concerns are incorporated into the terms and conditions of the licence agreement before the agreement is annexed to the notice of the general meeting.
You should attend the general meeting and voice any concerns prior to the owners voting on the resolution. If you wish to propose changes to the wording of the agreement, or restrictions on who may licence the room, you should be prepared to discuss such matters at the general meeting.
In relation to your concerns regarding security and privacy, a properly considered licence agreement should be able to cater for these concerns. I provided a few examples of how your concerns could be addressed above. If you consider your security and privacy is compromised by anyone else accessing level 8 to use the room, and no one else should have access to level 8, you should be prepared to substantiate these concerns at the general meeting.
It is not clear why the owners corporation would advise you have the responsibility to maintain the room. This implies the owners corporation knew you were using the room. You should obtain legal advice in relation to whether any legal rights for you to use the room arise from this.
In relation to whether the owners corporation may impose a charge of $600 on you to use the room. Based upon the information provided, it appears the owners corporation does not have the right to impose this charge at this time. However it may also be the case that you do not have authority to use the room. The owners corporation may have the right to ask you to remove your property from the room and stop accessing the room. You should double check the registered by-laws and check whether there is anything in writing (for example minutes of meetings) authorising you to use the room. You should obtain legal advice in relation to this before any licence is put to a general meeting for resolution.
If you consider you should have the right to continue to use the room because you have used it for the last 20 years, you should obtain legal advice before any licence is put to a general meeting.
This post appears in the June 2023 edition of The NSW Strata Magazine.
Shane Williamson Williamson Lawyers Pty Ltd E: shane@williamsonlawyers.com.au P: 0404 045 605