Strata By-Laws and How to Change Them

Changing strata bylaws feature

Anyone living in or owning property in a strata complex in NSW in NSW has to comply with the strata by-laws. The by-laws are designed to set a guideline for behaviour, and to protect owners’ investment in the strata. Most of the time, there’s no issue, but sometimes, you may wish to change a by-law.

Let’s look at why that might happen, and how you do it.

What do strata by-laws cover?

Strata by-laws in NSW usually cover issues such as:

Noise.
Your strata may have quiet hours which are longer than NSW legislation requires.
Parking.
While your lot may come with one or more parking spots, by-laws govern the use of visitor parking. For example, residents cannot park in visitor spot, and there may be limits on the length of time a visitor can stay.
A newer issue covered is the use of shared EV charging stations.
Common property.
This could include opening hours or usage guidelines for a pool, gym or tennis court.
Renovations.
Changes to your own property may affect your neighbours, so there is usually an approval process required. This may vary for major, minor or cosmetic work.
Renovations may also involve common property – for example, shade screens on the external walls of your property, or running additional power to a parking or storage area.
Pets.
You are legally allowed to keep pets in a strata property, unless they cause ‘unreasonable interference’ to other residents, but there may be application and registration processes.
Use of your balcony.
There may be restrictions around drying laundry, smoking, or other activities which could affect others in the strata.
Rubbish and waste disposal.
Short term rentals such as AirBNB.
Use of security cameras, including storage of and access to footage.
Whether you can run a business from your residential unit.
By-laws are individual to each strata scheme. You should have a copy of the by-laws for your strata. If not, you can request them from the owners corporation, your strata manager or (if you are renting) your landlord or property manager.

Strata by-laws so not replace federal and state legislation. They may place extra requirements on you, but they cannot remove your legal rights.

Which by-laws cause the most issues?

Some by-laws are more problematic than others – because people have very different ideas what is reasonable in a shared community.

For example,

Owner occupiers may not want short term lets via AirBNB or Stayz because of concerns about security, but investors are more interested in maximising their return on investment.
An owner may want to install hardwood floors for their own residence, but downstairs neighbours may object to the potential noise.
Other by-laws are frequently broken by residents. Classic issues include
Noise early in the morning or late at night.
Using visitor parking for resident cars, or semi-permanently for long-term or regular visitors.
Unauthorised renovations.

Why might you need to update or change strata by-laws?

There is usually some kind of trigger to change strata by-laws. This could be:

A specific incident or series of incidents. Sometimes a dispute arises (eg about the noise from hardwood floors) and it becomes clear that the current by-law is too vague. Or there might be break-ins in the car park, requiring installation of security cameras – plus a by-law to cover data storage and access.
If an issue comes up repeatedly, it suggests that the current by-law is ineffective.
Changes in state or federal legislation. One change in the Strata Schemes Management Amendment (Sustainability Infrastructure) Act 2021 made blanket bans on pets illegal. Many strata schemes had to revise by-laws to remain legally compliant.
Social changes. A good current example is the growing popularity of electronic vehicles and questions about how to handle charging stations.
Changes in ownership. Sometimes, one new owner questions current by-laws. Sometimes the overall ownership shifts from owner-occupied to tenants, or vice versa. In either case, there’s a call to review by-laws.

What’s the process to change strata by-laws?

Most changes to by-laws begin with the Strata Committee. However, the Committee does not have authority to change by-laws itself. Proposed changes must be approved by the full owners corporation at a general meeting.

The process follows these general steps:

There is recognition of the need for change – usually in response to one of the triggers above.
New or amended by-laws are drafted. We recommend using a specialist strata lawyer to ensure that the draft is legally compliant, specific and compatible with existing by-laws.
The Committee adds a motion to the agenda of the Annual General Meeting (or Special General Meeting if the matter is urgent). All owners receive the motion and a brief explanatory note in advance of the meeting.
At the meeting, owners discuss and vote.
Assuming the new by-law is approved, the Owners Corporation (or the Strata Committee or the strata manager, on their behalf) lodge updated by-laws with Land Registry Services.
The updated by-laws must be lodged within 6 months, or they do not apply.

Voting processes to change strata by-laws

Usually, changing by-laws requires a special resolution. In most cases, a minimum of 75% of votes must be in favour for the resolution to pass. If the by-law relates to sustainability infrastructure, a simple majority of over 51% is sufficient.

‘Sustainability infrastructure’ covers anything which

helps reduce energy or water use (solar panels, LED lighting, rainwater harvesting, greywater systems)
reduces pollution (recycling and e-waste collection points)
minimises waste (centralised composting)
facilitates sustainable transport (EV charging stations, bike racks)

It is also worth noting that owners do not have one vote each. Votes are proportional to each owner’s unit entitlement – so the owner of a larger lot (who also pays higher levies) will have more voting power.

When an individual owner wants to change strata by-laws

Anyone who owns a lot in the strata can propose a change to strata by-laws. However, there is no point in doing so unless you think you will be successful.

Your first step should be to consult with other owners and assess the level of support for your proposed changes.

If there is strong support, you (or a lawyer you hire) take responsibility for drafting the proposed new by-law. You also need to draft the motion and explanatory note.

Submit the by-law, motion and explanatory note to the secretary of the owners corporation. The secretary will include these in the papers for the next general meeting.

The voting and registration process remains the same, whether it’s the Strata Committee or an individual who is proposing a change to by-laws.

Summing Up

Strata by-laws are designed to set clear rules for owners and residents, so that everyone can live comfortably in the strata without dispute. There is no one ‘standard’ or ‘correct’ set of by-laws – instead, they represent the consensus opinion of the owners.

There are plenty of scenarios where you may want to review or change strata by-laws, and there’s a clear process to follow. For positive outcomes, it’s always best to follow the process and consult with experts where necessary. As strata managers, we have experience in the by-law process, and can also recommend expert lawyers where necessary.