Question: Our caretaker is also an onsite letting agent. An agreement exists for caretaking, however, there isn’t an agreement for the letting agency. Is the OC required to have an agreement with the letting agent?
Our caretaker is also an onsite letting agent who operates onsite and uses common property. An agreement exists between the caretaker and owners corporation for caretaking, however, there isn’t an agreement for the letting agency. Does this leave the owners corporation financially and legally vulnerable? Is there a legal requirement for an agreement between the owners corporation and the letting agent?
Answer: Though not a requirement, an agreement protects the onsite letting agent and the owners corporation.
There is no common law that requires an onsite agreement between the owners corporation and the letting agent. However, it is highly advisable to have an agreement in place setting out the rights and responsibilities of the owners corporation, letting agent and the use of common property. This protects both the onsite letting agent and the owners corporation. There are likely further issues that need to be considered, such as insurance issues, particularly public liability insurance.
Similarly, if the letting agent is using parts of the common property for their caretaking duties, it is advisable to have an agreement in place. If they own a lot in the strata scheme, it would be by way of by-law. If they do not own a lot, it could form part of the caretaker agreement or be in the form of a lease or licence.
Matthew Jenkins
Bannermans Lawyers
E: enquiries@bannermans.com.au
P: 02 9929 0226
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