Some lot owners elect to use their property as an investment and lease it to tenants. That’s great but it’s important that you give the contact details of the tenants to the Owners Corporation.
Prompt notification not only makes management more convenient but it’s also a statutory requirement.
Section 119 of the Strata Schemes Management Act 1996 has the relevant clause.
The law requires the lessor to notify the Owners Corporation within 14 days after the lease begins.
The notice must state:
- The name of the lessee, sublessee or assignee
- The date the lease begins
- The name of any agent acting for the owner
If the property is subleased, it’s the sublessor that must tell the Owners Corporation the new tenant’s name, not the owner of the lot. A tenant might think they only need to inform the property’s owner of the sub-lease, but they are in breach of the law if they don’t also inform the Owners Corporation.
This legal requirement has practical implications. For example, if repairs or maintenance are needed, it’s much easier for the onsite manager to arrange access to the apartments if they have the names of the residents as well as the owner’s details. It also means that information can be shared more efficiently.
Some strata agents may also require owners who lease their property, to keep the managing agent informed of the real estate agent and the details of the tenants.
If you have any further questions regarding the notification of tenants, contact your Strata Manager at Netstrata.