Renovating your unit in a strata scheme can add value and improve your living space. In New South Wales (NSW), renovating within a strata scheme is not as simple as renovating a standalone property. It’s important to follow the rules and seek approval to ensure your renovation is successful and compliant with the Strata Schemes Management Act 2015 and any relevant by-laws of your strata scheme. This guide will help you navigate the process and understand the key steps for a successful renovation application.

Understanding Renovation Categories

In strata schemes, renovations fall into three categories:

1. Cosmetic Work: Cosmetic work includes various tasks aimed at enhancing the interior of a unit without significant alterations. This work encompasses installing or replacing hooks, nails, or screws for hanging paintings and other items on walls; installing or replacing handrails; painting; filling minor holes and cracks in internal walls; laying carpet; and installing or replacing built-in wardrobes, internal blinds, and curtains. These types of renovations may not require any approval from the owners corporation.
   
2. Minor Renovations: Minor renovations involve various tasks that enhance a unit’s functionality and aesthetic appeal. This includes renovating a kitchen; changing recessed light fittings; installing or replacing wooden or other hard floors; installing or replacing wiring, cabling, or power access points; reconfiguring walls; removing carpet or other soft floor coverings to expose the underlying wooden or hard floors; installing a rainwater tank; installing a clothesline; installing a reverse cycle split system air conditioner; installing double or triple glazed windows; installing a heat pump; and installing ceiling insulation. Minor renovations require approval by ordinary resolution at a general meeting of the owners corporation, but your owners corporation may have a by-law that allows the strata committee to approve these types of renovations on the owners corporation’s behalf without the need for a general meeting.
   
3. Major Renovations: These are significant alterations that affect common property, structural elements, or waterproofing. Examples include removing load-bearing walls, changing the external appearance of the building, or extensive bathroom renovations. Major renovations require a special resolution passed at a general meeting of the owners corporation and may require the registration of a common property rights by-law.

Installing a reverse cycle split system air conditioner: Under the Strata Schemes Management Regulation 2016, the installation of a reverse cycle split system air conditioner is noted as a minor renovation. However, if the system is to be installed on the exterior of the property, connecting to common property, it may be necessary for the owner to obtain a common property rights by-law to designate who is responsible for the air conditioning unit placed on the common property.

Step-by-Step Guide to Applying for a Renovation

1. Review the By-Laws: Start by checking your strata scheme’s by-laws, as they outline what is allowed and the process for seeking approval. Some schemes may have specific requirements or restrictions regarding certain types of work.
   
2. Prepare a Detailed Renovation Plan: Prepare a clear and detailed renovation plan, including the scope of work, timeline, and any professional certifications (e.g., from licensed builders or engineers). The more information you provide, the smoother the approval process will be. Your strata managing agent may have a renovation application form that you can fill out and submit; please discuss this with them directly.
   
3. Seek Professional Advice: For significant renovations, it’s wise to get advice from a strata lawyer or your strata manager to ensure that your renovation complies with the Strata Schemes Management Act 2015, or any relevant by-laws associate with the strata scheme. They can help you understand what approvals are needed and assist in preparing your application, this can include drafting a common property right by-law that may be required, refer to your strata lawyer for clarification.
   
4. Submit Your Application: Submit your renovation application to the owners corporation, and or strata managing agent. Include all necessary details, such as plans, contractor information, and evidence of compliance with local council regulations if required.
   
5. Await Approval and Follow Conditions: If your renovation is approved, you may need to follow specific conditions set by the owners corporation, such as working hours, noise restrictions, and cleaning up common areas. Make sure you comply with these conditions to avoid any issues.
   
6. Notify Your Insurance Provider: After receiving approval, inform your insurance provider about the renovation. This ensures that your policy remains valid and covers any changes made to your unit.

Common Mistakes to Avoid

Starting Without Approval: Undertaking renovations without the proper approval may lead to fines, legal action, or an order from the NSW Civil and Administrative Tribunal (NCAT) to restore the property to its original state.

Not Checking By-Laws: Ignoring the strata scheme’s by-laws can cause delays and complications in the approval process.

Overlooking Common Property: Any changes that affect common property must be approved by the owners corporation, even if they seem minor.

Why Renovation Approval Matters

Following the correct approval process ensures that your renovations comply with legal requirements and do not negatively impact other residents or the building’s structure. It also protects your investment by ensuring that any changes are officially recognised.