Huang & Giang The Owners Strata Plan No.65865

Huang & Giang, the owners of Strata Plan No. 65865, brought an action against another body corporate in the Civil and Administrative Tribunal of New South Wales, seeking compensation for loss of rent resulting from the failure to repair common property. The dispute arose from the appellant's inability to maintain the strata property, leading to a loss of rental income for the applicant. The central issue before the tribunal was whether the respondent was liable for damages under section 106(5) of the Strata Schemes Management Act 2015 for the loss of rent attributable to their failure to repair the common property.

The tribunal assessed the evidence presented, considering the extent of the disrepair and its impact on the applicant's rental income. It was established that the respondent's failure to repair the common property resulted in a foreseeable loss of rent. The tribunal found that the respondent's actions constituted a breach of their obligations under the Strata Schemes Management Act 2015, warranting compensation. The tribunal awarded the applicant $7,730.00 as compensation for the loss of rent, finding that this sum was a fair reflection of the losses incurred due to the respondent's failure to repair the common property.

The tribunal's decision was grounded in the principle that body corporates have a duty to maintain common property to ensure it remains in a fit and habitable condition. The failure to do so can result in a loss of rental income for lot owners. In this case, the tribunal held that the respondent's failure to repair the common property was a breach of this duty, and thus, they were liable for the loss of rent. The tribunal's order that the respondent pay the applicant $7,730.00 for the loss of rent underscores the importance of adhering to the statutory obligations placed on body corporates under the Strata Schemes Management Act 2015.