A number of times recently I have been confronted with Landlords being refused tenants. In other words, the Owners Corporation is standing in the way of the Lot owners chosen tenant.
Section 139 of the Strata Schemes Management Act 2015 prohibits Owners Corporation interfering with a Lot owner dealing on their property. This means in simple terms the Owners Corporation cannot prevent a Lot owner from entering into a lease or granting a mortgage over their property.
The question therefore arises whether the Owners Corporation can refuse to sign development approvals or refuse by laws. I think the true position is that, although the Owners Corporation can choose to vote against the by law, they can only do it on reasonable grounds. Owners Corporations have to have good reason to not sign a development approval and be careful in voting down proposed by laws.
We buy properties to either live in or rent to others. The legislation clearly gives priority to those who want to rent.