Key Takeaways:
- An owners corporation manages shared areas like pools, lifts, and gardens, with only property owners as members. Renters aren’t part of it, but they’re still affected by its decisions.
- Rules cover waste, smoking, use of common spaces, and resident behavior. These ensure safe, clean, and respectful community living.
- Enforcement happens through notices and strata management, with serious cases escalated to Consumer Affairs Victoria or court.
An owners corporation is a term that most people have heard, but fewer may fully understand how it operates in practice.
If you are renting within a complex that belongs to an owner’s corporation, or you are a homeowner or prospective buyer looking for homes belonging to an owner’s corporation – then this guide is for you. If you’re unsure whether your property is required to have an owners corporation, read our guide on whether an owners corporation is compulsory in Victoria.
In this blog, we will be discussing:
- What is an owner’s corporation?
- What does an owner’s corporation do?
- What are the common owners corporation rules in Victoria?
- How are owners corporation rules enforced?
What is an owners corporation and how does it work in Victoria?
Before discussing OC rules, it is helpful to understand the role of the governing entity responsible for managing common property within a strata development.
Many Australians may know this system to be called a body corporate as it was formerly known, so in scenarios where it is referred to as a body corporate, it is now called an owner’s corporation. If you want a clearer breakdown of these terms, see our guide on the difference between owners corporation, body corporate and strata management
The owner’s corporation is tasked with managing the common property spaces in a residential, commercial, retail or industrial area.
Members of an OC management will be owners of a flat, apartment, unit or townhouse that belongs to that precinct. Renters, even long-term renters, will not be members of the owner’s corporation and so information that relates to their residence will be decided by and communicated to through the owner’s corporation.
Areas that fall under OC rules or the required responsibility of an owners corporation are pools, stairs, lifts, gardens, gates and other public-use areas. If one of these services is damaged or requires an upgrade, then this matter will be brought to the entire owner’s corporation to decide on the course of action. If it is decided that the public-use area or service is to be fixed, then the owners will pay for this. It is typical that owners will put money into a fund to cater to upgrades and other spends if and when they arise, although if the money is not replenished before an upgrade or maintenance is required, owners may need to put additional funds in.
What does an owners corporation do?
An owner’s corporation management is supported by a chosen strata management company. The strata management company has a significant role in the owner’s corporation, as they essentially bring the owner’s corporation committee together and facilitate the actions decided. A strata management group will coordinate general committee meetings either in-person or remotely, and will take the minutes during the meeting and address existing issues for the committee to discuss, whether it is strata rules or pending strata consultation.
When there are maintenance works planned, the strata management group will go out and collect quotes for the works and lock in the tradespeople, managing the works. If lights break and there are immediate issues that require attention, the strata will either action these works or have a vetted list of service professionals to complete the works.
When a property is sold and an owner leaves the owner’s corporation committee, the strata management group will seamlessly ensure the member leaves the group without any lingering responsibilities and will induct new members. In some parts of the world, the owner’s corporation will have the final say in who is allowed to buy into the precinct, but this is not so in Australia.
When strata management is working well, these processes tend to run quietly in the background. Meetings are organised, works are handled properly and owners aren’t left chasing answers.
Where that isn’t the experience, it can be a sign that the current management arrangement isn’t the right fit.
In those situations, you can speak to our strata specialists who can help review your setup and guide a change to management that better supports the Committee and the building.
What are the common owners corporation rules in Victoria?
Owners’ corporations will take different shapes depending on the state they are operating from, so do not assume that OC rules will be the same throughout Australia. Consumer Affairs Victoria is the entity that sets out the OC rules, and while these rules are firmly entrenched in strata management groups around the state, there are often changes and reforms. Here are some of the most common strata rules in Victoria.
- Waste disposal: An owner or occupier must ensure that the disposal of garbage or waste does not adversely affect the health, hygiene or comfort of the occupiers or users of other lots.
- Smoking: A lot owner or occupier in a multi-level development must ensure that smoke caused by the smoking of tobacco or any other substance by the owner or occupier, or any invitee of the owner or occupier, on the lot does not penetrate the common property or any other lot.
- Use of common property: An owner or occupier of a lot must not obstruct the lawful use and enjoyment of the common property by any other person entitled to use the common property.
- Change of use of lots: An owner or occupier of a lot must give written notification according to owners corporations rules if the owner or occupier changes the existing use of the lot in a way that will affect the insurance premiums for the owner’s corporation.
- The behaviour of owners: An owner or occupier of a lot must take all reasonable steps to ensure that guests of the owner or occupier do not behave in a manner likely to unreasonably interfere with the peaceful enjoyment of any other person entitled to use the common property.
How are owners corporation rules enforced?
Communicating the OC rules to owners and renters is very important, as they can only be enforced and have action taken if these rules are known. If there is a breach or an issue that could lead to a rule breach, an owner’s corporation will discuss and the strata management company will send our communications on their behalf. Breaches can be documented through written detail and even through a photograph so that action can be taken within the committee.
Occupiers may choose to make a complaint against the owner’s corporation, and they can do so through written correspondence. Depending on the nature of the complaint, the owner’s corporation may choose to engage in resolution or not respond. Where possible, have your strata management group be the face of this communication rather than an owner or owners as this may create friction.
In the event that the issue is more severe, then it may be taken to a Magistrates Court, although there should be clear rule dictation, warnings and documentation before this step. Consumers Affairs Victoria has resources available for complaint handling and conflict resolution in your owner’s corporation.
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If you want to know more about OC rules and how to navigate them, contact Strata Consultants. As one of Victoria’s most trusted body corporate management companies in Victoria, our friendly and experienced staff are on hand to answer any questions you may have. Contact us today at our website, or call us on 03 9007 2618.
