Building Managers and Overcrowding in Strata Spaces

There’s no denying it; population density in Sydney is on the rise. The demand for affordable urban housing is constantly increasing, and individuals and families with all kinds of different lifestyles are moving into strata scheme buildings and facilities. With this population growth and in flux of new residents, a lot of strata spaces are experiencing overcrowding.

You may wonder how a strata scheme building can become overcrowded, as there are only so many lots available, with only so much space, but you might be surprised. Read on to learn about overcrowding, how it happens, its legality and effects on quality of life, and how building managers can combat it.

What Is Overcrowding?

By definition, overcrowding is that situation in which the number of people occupying a residential space exceeds the number of designated sleeping areas by a ratio of 2:1 or higher. An exception is made for children and infants, as they often share sleeping spaces.

For example, if a family of 4 – two adults and two children – is occupying a residential space with two bedrooms, this is not considered overcrowding. If, however, four or more adults share a space with only two bedrooms, it would be considered overcrowding for that space.

Is It Illegal?

At the moment, there isn’t specific legislation against overcrowding. However, Lord Mayor of Sydney, MP Clover Moore has stated that this is due to a lag in legislation, not forbearance for people crowding into small residential spaces.

How Does Overcrowding Negatively Affect Strata Spaces?

First and foremost, a lot that holds too many tenants is much more likely to have issues with cleanliness and misuse and abuse of utilities and appliances, but that’s not the only negative effect of overcrowding. Others include, but are not limited to:

• Decreased property values
• Increased utilities costs, including water, waste, electricity, and gas
• Strains on common property and amenities from overuse
• Increased operating expenses for the whole building
• Decreased lifecycle of the building’s elements and components
• Declining calibre of owners and tenants willing to purchase or reside in the property

In addition to these, there’s a safety factor. The building’s owners’ corporation is legally obliged to make sure that the building’s infrastructure and fire safety systems are in tact and working. Overcrowding can be detrimental to the building’s overall safety.

What happens if fire safety standards aren’t met? The owners’ corporation could, under the Environmental Planning and Assessment Regulation of 2000, be fined $500 per week, up to a total of $110,000, until the building comes into compliance.

How Can I Help Ensure Against Overcrowding?

You and other owners and residents can bring up overcrowding at your next owners corporation meeting. You can then discuss your building management provider’s strategy, whether it is effective, and how it might be improved.

Practical Steps the Building Manager Should Take to Eliminate Overcrowding

Your building manager should already be incorporating these steps into their strategy for preventing and/or eliminating overcrowding. If not, this needs to be addressed immediately.

1. Governance Review

Review the building’s by-laws, processes, and procedures to ensure that they provide strategic support and a clear objective concerning building population and overcrowding.

2. Information Collection 

By taking tenancy audits, your building manager can collect all relevant information on registered residents, owners, and managing agents. This information will tell them who is entitled to residency in and use of the building and property.

3. Access Management

The access control systems should be in line with audit information. This should ensure that access cards will expire when leases are terminated and that only named tenants are entitled to access cards.

4. Identify Units/Tenants in Breach

Through data collection and proper access management, it should be feasible to identify which tenants are abusing access privileges. Evidence of abuse may be captured by CCTV, as well as employee reports and photographic evidence. This documentation will support the next steps in dealing with the situation.

5. Written Warning of Breach

After collecting sufficient evidence, the building manager should write and provide a breach letter to the tenants, owner, and managing agent, as well as any other affected stakeholders. This letter should delineate a set period of time for the responsible parties handle and resolve the situation, usually 10 business days.

6. Continually Monitor and Manage Access

Maintain and manage a list of suspect units and keep vigilant monitoring practises over all units to ensure that access privileges are not being abused. This especially applies to units that have been served a breach letter. Monitoring is essential in the grace period between serving the letter and further action.

7. Notice to Comply

If the breach unit’s tenants, owner, and/or managing agent does not comply with the directions in the breach letter within the grace period, a letter is sent to the executive committee and strata manager, recommending immediate action. At which point, a consumer trade and tenancy tribunal is called to determine how to proceed.

8. Ongoing Communication

Regular communications should be sent via hardcopy or email to owners and managing agents of all properties in the building, clearly indicating the facility’s zero-tolerance policy on overcrowding.

These communications should delineate, as well, that managing agents who continue to engage tenants who breach overcrowding regulations and/or misuse and abuse access privileges will not be recommended to owners within the building, and that further action may be taken.

Proactively Implementing By-Laws Against Overcrowding

Here are some great examples of by-laws that allow properties to be proactive about overcrowding and handle it before it occurs.

• Limiting the number of tenants per lot
• Limiting access cards
• Requiring identity checks to obtain access cards
• Requiring all tenants to be registered and named on the lease
• Restriction or limitation of subletting by tenants
• Empowering management to conduct periodic inspections of any lot suspected of violating overcrowding by-laws

What Should I Do If I Suspect a Unit is Overcrowded?

Do not act on your own as an individual. Instead, bring your suspicions to the attention of your building manager immediately, and they should follow the proper steps in monitoring the suspect unit and determining if its tenants are acting against the building’s overcrowding by-laws or not.

Why Isn’t There Adequate Legislation for Overcrowding?

Current legislation lags the changing dynamic of urban and community living in Sydney. That does not mean that legislators are not in the process of putting forward new and amended legislation to set a legal precedent for handling overcrowding. Until legislation is put in place, though, you still have recourse within your organisation’s by-laws and with your owners’ corporation, executive committee, and building management provider.