Whether you’re moving overseas for six months or have just purchased an investment strata property, leasing out your unit can bring in welcome rental return and keep your property in effective use. Before you go ahead and approve a tenant, there are a few factors you will need to consider when leasing out your Sydney strata apartment.
You must notify your owners corporation
Under Section 258 of the Strata Schemes Management Act 2015, strata owners must notify their owners corporation about a new lease or sublease within 14 days of the agreement commencing. You will be expected to provide the name and address of the new tenant, the date that the lease commences and the name of your property managing agent if you’re using one. You’ll also need to provide the same notification within 14 days if that lease is assigned to another tenant. This information will enable your owners corporation to contact your property manager if any issues come up with your tenant.
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Your guests must adhere to the strata by-laws
Your tenants will be expected to adhere to the strata scheme’s by-laws just as other residents do, and to do so they’ll need to have access to these rules. Under Section 186 of the new Act you must provide a copy of the strata scheme’s by-laws to your tenant within 14 days of their lease coming into effect. You’ll also need to provide a new copy within 14 days of any changes to the by-laws.
Other than the requirements within the 2015 Act, you’ll have the usual rights and responsibilities as a landlord does with any other type of property. Further information can be found at Fair Trading NSW.
What about short-term letting?
The rise of Airbnb and other short-term leasing marketplaces has seen many apartment owners lease out their units to visitors and tourists to their local area, but this has also thrown up many questions about how and whether short term leasing should be allowed in strata properties. The state government is currently reviewing the details of short-term letting in strata, but as the legislation stands you could be liable for a fine of up to $550 if you fail to register the details of someone on a lease in your unit. Owners corporations can also decide to ban short-term letting via a special resolution at an Annual General Meeting.
Ultimately, your ability to lease out your strata unit short term will depend on your local legislation and the individual by-laws of your strata scheme. For specific information relating to your Sydney strata, you can contact your strata manager or strata committee secretary.