Key Takeaways:
- A Community Management Statement, or CMS, is not a formal legal term in Victoria. The closest equivalent is owners corporation rules.
- Owners corporation rules explain how common property is used, how disputes are handled, and what residents must follow.
- Clear rules help Committees manage disputes, maintenance, costs, and resident expectations more fairly.
At Strata Management Consultants, we often hear owners and Committees refer to a “community management statement” or CMS.
In Victoria, this is not a formal legal document. Instead, the equivalent is the owners corporation rules, which define how your building is managed, how decisions are made, and how disputes are handled.
Note: You may see the term Community Management Statement used in other Australian states, but in Victoria, the document most people are looking for is the owners corporation rules. These rules work alongside the plan of subdivision, lot entitlement, lot liability, and other owners corporation records.
What is a community management statement in Victoria?
In Victoria, what many people call a community management statement is usually a set of owners corporation rules and registered documents.
These rules act as the governing framework for how a strata property operates. They explain how residents use common property, how decisions are made, and what steps apply when issues arise.
Under the Owners Corporations Act 2006, an owners corporation may make rules, but those rules have no effect if they are inconsistent with the law.
What is the difference between a CMS and owners corporation rules?
The term CMS is more commonly used in other Australian states, particularly Queensland. In Victoria, the legally recognised term is owners corporation rules.
For Victorian properties, owners should refer to the plan of subdivision, owners corporation rules, lot entitlement, lot liability, and other registered records.
What do owners corporation rules typically cover?
While Victoria does not formally use the term CMS, owners corporation rules often cover the same practical issues people expect a CMS to address. These rules usually explain how common property can be used, what residents can and cannot do, how costs and responsibilities are shared, and what process applies when disputes arise. For Committees, these components provide a clearer basis for managing the building fairly and consistently.
What rules govern the use of common property and lots?
Rules guide how residents use shared spaces and individual lots. They may cover noise, pets, parking, renovations, waste disposal, smoking, security, and the use of shared facilities.
These rules help residents understand what is allowed and give the Committee a clearer basis for responding to complaints.
For example, in one Melbourne apartment building, unclear noise rules led to repeated complaints between neighbours about late-night music and gatherings. Because the rules were vague, the Committee struggled to enforce them consistently. After updating the rules to clearly define quiet hours and acceptable behaviour, complaints reduced significantly and the Committee had a clearer basis for action.
How do lot entitlement and lot liability affect owners corporation fees?
Lot entitlement reflects a lot owner’s interest in the common property. Lot liability reflects the proportion of owners corporation expenses that the lot owner must pay. These are set out in the plan of subdivision.
For example, a larger apartment may have a higher lot liability, which means that owner may contribute more to owners corporation fees.
How are disputes resolved under owners corporation rules?
Disputes can happen in any strata community. Common issues include noise, parking, pets, renovations, short stay accommodation, and use of common property.
A clear process helps residents and Committees respond consistently. If a dispute cannot be resolved internally, it may be referred to Consumer Affairs Victoria or VCAT. The Owners Corporations Act 2006 gives VCAT power to hear owners corporation disputes.
For instance, if a resident repeatedly parks in a visitor space without approval, the Committee can follow the dispute process outlined in the rules. This may start with a warning and escalate to formal action if the behaviour continues.
Ongoing disputes are often a sign of unclear rules or poor management support. If your Committee is dealing with repeated issues around noise, parking, or resident behaviour, it may be time to review your current approach. Speaking with a Consultant can help you identify practical next steps.
Why do clear owners corporation rules matter for strata communities?
Melbourne strata communities rely on shared spaces, shared costs, and shared decision making. Without clear rules, simple issues can turn into long disputes.
Tailored to comply with Victoria’s Owners Corporation Act 2006, a CMS safeguards fairness, safety, and transparency. Here’s how it protects your community:
How do clear rules help maintain common property?
An owners corporation is responsible for managing, repairing, and maintaining common property. Clear rules help explain how residents should use those areas and how maintenance responsibilities are managed.
How do owners corporation rules improve financial clarity for lot owners?
Owners corporation fees must be based on lot liability, unless specific legal exceptions apply. Clear records help owners understand how costs are shared and why certain fees are raised.
How do owners corporation rules support fair decision making?
Rules, meeting procedures, voting rights, and resolutions help prevent decisions from being dominated by a small group of owners.
How do clear rules reduce disputes in strata communities?
When residents understand the rules from the start, Committees are less likely to deal with repeated confusion about noise, parking, pets, renovations, or shared facilities.
What do owners corporation rules look like in practice?
Below is a simplified example of how owners corporation rules may be structured.
Parking
- Each lot may be allocated one parking space.
- Visitor parking may be limited to short term use.
- Residents may need written approval for additional vehicles.
Clear parking rules help reduce disputes over allocated spaces, visitor parking, and unauthorised vehicles.
Renovations
- Structural changes may require approval before work begins.
- Residents may need to give written notice before flooring, plumbing, or other work.
- Work hours may be limited to reduce disturbance.
Clear renovation rules help prevent disputes by setting expectations around approvals, timing, and potential disruption to other residents.
Smoking and vaping
- Smoking may be restricted in indoor common areas.
- Smoke drifting into neighbouring lots may be treated as a nuisance issue.
- Repeated complaints may lead to internal dispute resolution.
Clear smoking and vaping rules help manage health, comfort, and nuisance concerns across shared areas and neighbouring lots.
Common areas
- Shared facilities may require bookings.
- Residents may be responsible for leaving spaces clean.
- Damage may be recovered from the responsible lot owner where permitted.
Clear rules for common areas help ensure fair access, proper use, and accountability for shared facilities.
Waste disposal
- Residents must follow the local council waste rules.
- Items must not be left on common property without approval.
- Incorrect disposal may lead to complaints or enforcement action.
Clear waste disposal rules help maintain cleanliness, prevent hazards, and ensure compliance with local council requirements.
Lot entitlement example
This example shows how a lot of liability may affect contributions.
| Lot | Unit Type | Lot Liability Example | Contribution to a $1,000 levy |
|---|---|---|---|
| Lot 1 | 3-Bedroom Apartment | 40 % | $400 |
| Lot 2 | 2-Bedroom Apartment | 35% | $350 |
| Lot 3 | 1-Bedroom Apartment | 25% | $250 |
This example shows how lot liability directly affects how much each owner contributes to shared costs, with higher liability resulting in a larger share of the owners corporation fees.
How can you access owners corporation rules?
Lot owners can usually request a copy of the rules and records from the owners corporation manager or the owners corporation itself.
The Owners Corporations Act 2006 requires an owners corporation to keep records and make records available in certain circumstances.
How do you update owners corporation rules?
Updating rules should be handled carefully. Rules must be reasonable, properly approved, and consistent with Victorian law.
- Review the current rules.
- Identify unclear, outdated, or unenforceable clauses.
- Get legal or strata management advice.
- Put the proposed changes to the owners corporation.
- Record and register the approved changes where required.
Is unclear OC management a sign that you need a better strata manager?
If your current manager is not helping your Committee manage rules, disputes, meetings, or compliance, it may be time to consider a change.
Strata Management Consultants helps Victorian Committees review their management arrangements, understand their options, and transition to better owners corporation management.
Speak with a Consultant if your Committee is considering changing your owners corporation manager.
