Question: Can our strata managers charge lot owners an administration fee for serving a bylaw breach notice?
I’ve received a by-law breach notice from the strata manager along with an invoice for an admin fee for the investigation of the by-law breach. The breach was for a noise complaint from our downstairs neighbours.
There are signs in our common areas stating that a breach of a bylaw will result in a breach notice accompanied by an admin fee of between $110 and $220 for breaches like:
- parking in visitors parking for more than 8 hours
- disposing of unwanted household goods in the garbage room.
- taking glass containers into the pool area
Can our strata managers charge us an administration fee for serving a bylaw breach notice?
Answer: No, the Owners Corporation or a Strata Managing Agent do not have the authority to issue a fine for breaches of by-laws.
After working in strata for so many years I can certainly understand the inclination of Owners Corporations to issue a fine for breaches of by-laws, but no, the Owners Corporation or a Strata Managing Agent do not have the authority to do so.
The Strata Schemes Management Act 2015 specifies how by-laws are to be enforced and the process that the Owners Corporation can take.
Under the Strata Schemes Management Act 2015, NSW Civil and Administrative Tribunal (NCAT) is the only body that has the authority to issue fines and that can only take place when due process is followed by the Owners Corporation.
In your circumstances, the Owners Corporation have issued a fine under the name of an admin fee rather than following due process or undertaking the requirement to actually prove that you are in breach of by-laws.
A lot owner can be asked to reimburse the Owners Corporation for expenses incurred (e.g. false alarm fees from NSW Fire & Rescue) but that is very different position from issuing a fine.
Robert Fothergill
Strata Life
E: Robert@thestratalife.com.au
P: 02 9456 9917
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