Strata Renovations: Within an Individual Lot

Owners in a strata complex may believe that when a renovation is within their own lot, there is no impact on the strata scheme. As a result, they don’t consult the strata committee, or the owners corporation.

In reality, strata renovations in NSW must comply with the Strata Schemes Management Act 2015 (NSW) and the Strata Schemes Legislation Amendment Act 2025 (NSW).

The aim of the legislation is to protect both quality of life for residents and the value of owners investments in strata property. It provides a framework to minimise issues such as:

• Poor quality workmanship
• Damage to waterproofing which may affect more than one lot in the strata
• Removal of walls affecting structural integrity of the building
• Confusion about who is responsible for ongoing maintenance
• Damage to common property
• Disruption for residents, including an increase in ongoing noise levels

Understanding the legal framework is an essential first step in managing strata renovations successfully.

NSW legal requirements for strata renovations

This legislation divides renovations into three categories: cosmetic, minor and major.

Cosmetic renovations 

These are non-structural renovations which are completely within a private lot and do not affect common property. Examples are:

• Painting interior walls
• Laying or replacing carpet
• Hanging pictures and artwork
• Installing internal blinds or curtains
• Installing or updating built-ins, hand-rails etc

Any renovation which involves waterproofing, plumbing, common property or hard flooring is specifically excluded. So are works affecting external areas, common property, structural stability or safety, including fire safety.

Cosmetic renovations do not require strata approval, but if tradespeople damage common property, it is the owner’s responsibility to make good.

Minor renovations

Minor renovations are more involved that cosmetic ones, but they have no effect on external appearance, waterproofing or structural integrity. Examples are:

• Refreshing a kitchen, but without changing the plumbing or waterproofing
• Changing floors, including replacing carpet with tiles or timber flooring
• Electrical work such as adding power points or changing downlights
• Installing air conditioning (which does not affect external appearance of the lot)

Minor renovations require approval.

The standard approval process is an ordinary resolution at a general meeting. The resolution must gain over 50% of votes to pass.

Some owners corporations have by-laws which delegate approval for minor renovations to the strata committee. In this case, the strata committee has a three-month window to either approve the application, or reject it in writing, with reasons. If there is no response in that time, the application is approved. The aim is to make the process smoother and faster.

Major renovations

Major renovations are ones which could have major impact on not just one lot, but many lots in the strata. They include:

• Works which affect structural integrity – for example removing a load-bearing wall
• Removal or repositioning of walls which are part of a fire safety system
• Any rearrangement of plumbing – replacing taps in the same place is not major, but moving the shower or kitchen sink is!
• Anything which affects waterproofing. Note that this includes retiling a bathroom. A common mistake is to think of retiling wet areas as a minor renovation – it is not!
• Anything which has an impact on the external appearance of the strata. This includes everything from the external unit of a split-cycle air conditioner to balcony doors to repainting external walls.
• Renovations which require local council approval

Unsurprisingly, major renovations have the most stringent approval process.

They must be passed by a special resolution at a general meeting (AGM or EGM), with a 75% majority. The applicant must also provide 14 days written notice before starting any work.

Major renovations require a customer by-law to cover the works, including who is responsible for ongoing maintenance and repair.

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As you can see, the process and the timeline are different for each kind of renovation. If people don’t know, don’t understand or don’t follow the correct process, many issues arise.

Common issues with strata renovations

The strata committee, on behalf of the owners corporation, may have to deal with various issues relation to renovations.

• Unapproved renovations

Sometimes an owner does not realise there is a process to follow. They start renovations without any consultation or communication

• Confusion between cosmetic, minor and major renovations

Owners may not understand the different types of renovation. They may not allow the time required for the consideration and approval.

• Unlicensed and uninsured contractors

Poor quality work may cause problems at the time of renovations, or it may need additional maintenance later. If contractors are not licensed and insured, someone ends up with large bills to pay.

• Damage to common property during renovations

Contractors usually access a lot via common property. Gardens, floors, walls and lifts may be damaged, especially if they are transporting large or bulky materials.

• Poor administration or record-keeping

Sometimes, strata renovations are carried out with no problems, but the strata committee fails to enact a relevant bylaw around the time of renovation. Later, if maintenance is required, there may be disputes about whether costs belong to the owner or the strata corporation.

On other occasions, strata records are incomplete. Records of approval or compliance certificates may be missing. When different people serve on the strata committee, there is no record of what is approved or who is responsible for maintenance and repair.

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Strata renovations are a fact of life – there will always be some residents who want to alter or upgrade their individual properties. However, a well-organised strata committee can take to make renovations less stressful.

How to minimise issues related to strata renovations

Here are some practical tips covering what the Strata Committee can do on behalf of the owner's corporation.

Have strong bylaws which cover all aspects of renovation. This could include:

• Defining cosmetic, minor, or major renovations for your strata scheme specifically
• For each category of renovation, the correct application process and required documentation.
• Any requirements for a damage bond, in case contractors damage common property
• Contractor licensing and insurance requirements for contractors
• Any certification required on completion
• Rules for contractor access to common property – hours of access, specific areas of access, notification if services such as power will be unavailable etc

Some strata schemes have specific bylaws for the most frequent types of renovation.  For example, there could be a by-law covering split cycle air conditioning and the positioning and size of external units. If the bylaw is well written and complete, it reduces paperwork for multiple similar applications.

Other documents which can help include:

• A plain English summary of your strata bylaws, which explains cosmetic, minor and major renovations. It covers what renovations are in each category, the application process and likely timeline.
• Application forms and checklists. It’s far better to process a complete application once than to go backwards and forwards asking for more information.
• An up-to-date and complete renovations register. There is a legal requirement to keep a record of renovation for at least 10 years, but keeping it longer is recommended. Good records avoid dispute about maintenance costs. They can also be helpful when an owner wants to sell their property.

A professional and organised strata manager, with legal support where relevant, can assist the strata committee with everything from bylaws to forms to renovations registers.

How to handle unauthorised renovations

Strong processes and clear communication can reduce issues related to strata renovations, but they may not eliminate them entirely. The strata committee, representing the owners corporation, can take steps to resolve the situation.

1. Communication

The first step is always to communicate with the owner of the lot. If the strata committee (or strata manager on their behalf) explains clearly what is required, this often solves the problem.

2. Formal notice

Occasionally, the owner does not cooperate. At this time, you can issue a formal notice to comply with bylaws. This notice should be specific about:

• Which bylaws have been breached
• What action is required to resolve the situation

The action required depends on the situation. It could be as simple as pausing renovations until they are approved. It could involve obtaining certificates of compliance or approvals on completed renovations. The owner may have to pay for updated bylaws confirming that they are responsible for future maintenance and repair. In a small number of cases, for example when renovations make a building unsafe, the formal notice may require returning the property to it previous condition.

Formal notices are usually issued by the strata committee. If there is a very severe breach, there may be a resolution of the owner’s corporation.

3. Application to NCAT

If owners do not comply with a formal notice, the strata committee may apply to NCAT for orders to

• stop work
• reverse work
• impose penalties and fines
• organise retrospective approval, and
• recover the owners corporation's costs

Only a small number of cases reach this point.

The more proactive and organised your strata committee is, the less likely it is that you will experience this.

Your strata management company can assist the committee by ensuring that application processes for renovations are clear, comprehensive and well communicated. They can also oversee bylaws and the register of renovations to keep everything complete and up to date.

Avoiding disputes over strata renovations is far better than having to resolve them at a later stage.