Questions and Answers
Question: Can my tenant put the spare bedroom on Airbnb?
Landlord I have a tenant who is renting a 2
bedroom apartment. He has decided to rent the spare bedroom
out on Airbnb. His lease is for one person.
What are the owner’s legal rights?
What are the tenant’s legal rights?
Cordato This situation came up in the Supreme
Court of Victoria last year. The court decided that the
tenant was sub-leasing the bedroom, as opposed to giving a
licence to occupy.
The tenant needed the landlord’s consent to sub-lease.
The landlord did not consent, and so was justified in
terminating the lease.
Landlord Much appreciated. Matter sorted. No more
Question: Water Leak – Strata
An investment property that I purchased at Botany in ~May
2015 has incurred internal water damages due to inadequate
flashing being installed when the building was constructed
in 2001 - certified Engineer report supports this.
I have been advised by the strata committee that
apparently the builder conveniently filed for bankruptcy
following completion of construction so it seems we don't
have any channel of recourse there... Though I do not know
who built the property and I do not know whether this is
After reading the PDS of both the strata insurance and my
landlord insurance it seems we are not covered for either
the internal damages or the external structural remedial
works required under either of these policies.
Leaky buildings are probably the number one source of
complaints in a strata scheme - so you are in good company.
It is the responsibility of the owners corporation to
keep the building watertight under its general obligation to
keep the building in good repair under section 106 of the
Strata Schemes Management Act 2015 -
Duty of owners corporation to maintain and repair
An owners corporation for a strata scheme must
properly maintain and keep in a state of good and
serviceable repair the common property and any personal
property vested in the owners corporation.
It is not your concern as to whether or not the owners
corporation has a claim upon the builder or anyone else - in
your case it has no claim (a) because the builder is
bankrupt; and in any case, (b) because after 10 years from
the date the building was completed, claims are excluded by
Your reading of the insurance policies is correct - their
coverage is restricted to water leaks which occur because of
an event, such as storm and tempest has removed roofing
material. They exclude cover for water entry such as seeping
through a wall or floor.
Strata insurance and landlords insurance exclude damage
arising out of maintenance and repair issues.
The strata sinking fund is there to cover maintenance,
repair and replacements in the building.
Therefore, the owners corporation not only has the
responsibility to repair the leak, but also the funds
available to pay for the repair.
My recommendation is to request the owners corporation to
acknowledge its responsibility and to issue a work order to
a roofer / builder to repair the leak.
Failing that, you have the right to obtain an order
requiring the owners corporation to do so from the Tribunal.