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Owners Corporations may lease or licence common property to lot owners (or other third parties) in accordance with Section 14 of the Owners Corporations Act 2006.

Owners Corporations can only agree to lease or licence common property spaces through passing a special resolution which means that a committee does not have the power to grant a lease or licence.

Whilst telecommunication providers usually have proforma or standard lease terms, generally these can be negotiated and it is important that Owners Corporations obtain expert legal advice to ensure that their rights are protected. Some of the issues that we find in leases provided include:

• Not properly setting out height limitations of the area to be leased or properly defining the area to be leased;
• Not regulating how upgrades and new equipment can be installed;
• Not dealing with competing leases to other telecommunication providers. It may be that there are multiple mobile phone towers and some leases can require the Owners Corporation to pay compensation if another tenant interferes with the other tower’s performance;
• Tenants being able to sublease to other parties. In some cases where leases have been entered into before we have been instructed, we have seen one lease to one provider being sublet to 2 other providers without the Owners Corporation being entitled to any further rent so that there are three towers in the one space with the original tenant being paid more than they are paying the Owners Corporation in rent.
• The ability for the tenant to terminate on short notice but requiring the Owners Corporation to be bound for a term of up to 20 years.

Leasing to telecommunication providers can provide Owners Corporations with a steady additional income to help reduce Owners Corporations levies, but it is important that the Owners Corporation (and lot owners) are protected with a fair lease that preserves the rights needed for repair and maintenance and that appropriate safeguards are in place to protect the common property.

We can ensure that the parties rights are properly documented and the Owners Corporation interests are protected.

Need Advice or assistance?

Phillip Leaman, principal of the Owners Corporations practice group of Tisher Liner FC Law and his very experienced team can provide assistance to owners corporations, committees, lot owners and managers in a range of owners corporations legal matters. We have substantial experience advising Owners Corporations on dealing with drafting, reviewing and enforcing leases with telecommunication providers.

We believe Owners Corporations want to maintain peaceful, functional living environments for owners. Our mission is to provide a fresh perspective on resolving legal disputes and to inspire Owners Corporations to achieve outcomes that preserves the value of assets and restores harmony. We are expert Owners Corporations lawyers.

For advice or assistance, please contact owners corporations lawyer Phillip Leaman on 03 8600 9314 or by email [email protected].