This article discusses running a business from a strata lot in NSW, explaining in plain language that while home businesses are usually allowed, they must not interfere with other residents’ use of common property.
Question: Can an owner run a home business? The business occupants interfere with other residents’ use of common property.
I am on the strata committee of our owners corporation. We recently discovered that an owner is running a home office business from their lot. The company is listed as the tenant.
The business involves computer based work. The principal and their spouse attend the lot daily from about 10 am to 6 pm and leave each evening to sleep at their permanent residence. No staff, clients, or other visitors attend the lot.
The lot adjoins a common property area that residents and children frequently use as a shared backyard near the beach. The business occupants are abusive and obstructive towards residents and children using this area, claiming that normal use of the common property interferes with their peace and quiet enjoyment.
Although the owners corporation has not approved the running of the business, we do not have a by-law prohibiting running a business from a lot. Can a lot owner conduct a business from their lot where it results in interference with other residents’ reasonable use of common property? Can the owners corporation prevent or restrict their conduct?
Answer: If the owners are being rude, intimidating, or trying to stop others from reasonably using the backyard, the committee can step in.
The Short Answer
Living in strata means balancing your rights with those of your neighbours. Yes, people can usually work from home, but no, that doesn’t give them the right to control shared areas or make others feel uncomfortable using them. If the owners are being rude, intimidating, or trying to stop others from reasonably using the backyard, the committee can step in.
Home businesses are generally permitted in NSW without council approval, provided they meet certain conditions such as not involving staff, clients, or signage.
Many strata schemes adopt a standard by-law requiring owners to notify the owners corporation of any change in use, particularly if it may affect insurance premiums or shift the use from residential to commercial.
So, while running a home office may be allowed, behaving like you ‘own’ the common backyard isn’t.
What the Committee Can Do
- Record what’s happening: Encourage affected residents to take notes about incidents—what was said, when, and how it affected them. This helps build a clear pattern of behaviour.
- Issue a written warning: The committee can send a formal reminder about respectful conduct and appropriate use of shared spaces and raise any by law breaches. If the behaviour continues, further steps can be taken.
- Update your by-laws, if needed: If this becomes a recurring concern, consider adopting a by-law that clarifies acceptable use of lots during business hours, or requires committee approval for any business activity.
- Use free mediation: NSW Fair Trading offers a free mediation service if the situation escalates. This is often an effective and low-conflict way to resolve strata disputes.
Leanne Habib Premium Strata E: info@premiumstrata.com.au P: 02 9281 6440
This post appears in the March 2026 edition of The NSW Strata Magazine.
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