Renovations in strata buildings can add value, but they sometimes come at a cost to neighbours.
If another owner’s works has damaged your unit, or even common property, you may be left wondering: who pays for the repairs?
The Strata Schemes Management Act 2015 (NSW) sets out rules about responsibility when renovations cause damage.
This guide explains your rights as a strata lot owner, what steps to take, and how to resolve disputes if your property has been affected.
Who is responsible for damage caused by renovations?
If renovations in a strata building cause damage, the owner who carried out the works is usually responsible for fixing it. This can include damage inside another unit or to shared areas such as walls, slabs, plumbing or services.
Renovating owners are expected to repair or cover the cost of repairs, rather than leaving their neighbours or the Owners Corporation out of pocket.
Under the Strata Schemes Management Act 2015 (NSW), the Owners Corporation also has a duty to keep common property in good repair. If common property is damaged, it must ensure repairs are carried out, but it can seek to recover those costs from the renovating owner.
If the Owners Corporation fails to act and you suffer loss, you may be able to claim compensation directly against it. Responsibility can therefore sit with both the renovating owner and the Owners Corporation, depending on the circumstances.
Example
If your neighbour renovates their bathroom and the waterproofing fails, water may leak into your ceiling or walls. In this situation, the renovating owner is responsible for fixing the damage to your unit.
However, if the leak also damages common plumbing or shared walls, the Owners Corporation must ensure those areas are repaired, and it can recover the cost from the renovating owner.
For context on the approval process your neighbour should have followed before carrying out their works, see our related article on strata renovation work approval.
What steps should you take if your unit is damaged?
If your lot has been affected by renovation works, the following steps can help you protect your position and secure timely repairs.
- Document the issue – Take clear photos and keep detailed notes of when you first noticed the problem.
- Notify in writing – Inform both the renovating owner and the Owners Corporation to create a clear paper trail.
- Get expert advice – Engage a building consultant or engineer to identify the cause and required repairs.
- Request rectification – Ask the renovating owner to fix the problem or request that the Owners Corporation pursue them.
- Escalate if needed – If the dispute remains unresolved, you can make an application to NCAT (the NSW Civil and Administrative Tribunal).
Common issues in strata renovation disputes
In practice, renovation-related damage disputes often involve recurring issues that delay resolution or increase costs, including the following.
- Pre-existing defects – Renovating owners may claim the damage existed before their works. Independent dilapidation reports (before-and-after surveys) often help resolve this.
- Repair quality – Renovating owners may argue for cheaper or temporary fixes (such as patching), while affected owners expect full and proper rectification. This can lead to disputes over the standard and method of repair.
- Cost recovery – If the Owners Corporation raises a levy to pay for rectification, disputes can occur over whether the renovating owner should reimburse affected owners.
- Delay – Disputes often escalate because inspections or repairs are delayed, leaving damage unresolved.
What outcomes can you expect?
If a dispute about renovation damage escalates, several outcomes are possible.
The renovating owner may agree to repair the damage at their own cost, or reimburse you for repairs you have arranged.
If common property is affected, the Owners Corporation may carry out the works and recover the expense from the owner who caused the damage.
Where agreement cannot be reached, NCAT can make binding orders requiring the renovating owner to fix the damage or pay compensation. In some cases, you may also be entitled to damages if the Owners Corporation fails in its duty to maintain common property.
Our property lawyers can explain how renovation-related responsibilities are determined under strata law and help you recover repair costs or compensation when another owner’s works cause damage.