In most NSW strata schemes, no. A laundry or dry cleaning service that collects from an existing concierge desk installs nothing and takes no exclusive use of common property, so it does not require a by-law or a special resolution. It is usually handled as an operational decision by the building manager, or approved as a no-cost trial by the strata committee.
The confusion is understandable, because a different kind of laundry proposal — a locker bank — does require all of that. This guide sets out where the line sits, what your committee actually has to decide, and what belongs in the papers. It is general information rather than legal advice, so confirm the position for your scheme with your strata manager.
The three levels of approval, and which one applies
| What is proposed | What it engages | Approval needed |
|---|---|---|
| Courier-style collection from an existing concierge desk. No equipment, no floor space, no alteration, no exclusive right. | Neither section 108 nor section 112 | Usually none. An operational decision, or a committee-approved trial |
| A service given a defined area of the lobby, or storing goods in a dedicated spot | Licence to use common property (s112) | Special resolution at a general meeting |
| A locker bank or any fixed installation, powered or bolted down | Alteration or addition to common property (s108), plus exclusive use | Special resolution and generally an exclusive-use by-law, with the written consent of any owner affected |
Why a locker triggers a by-law and a desk collection does not
Under the Strata Schemes Management Act 2015 (NSW), the approvals that create work for a committee are triggered by two things: changing common property, and giving someone exclusive rights over it.
- Section 108 covers adding to, altering, or erecting a structure on common property. A locker bank is a structure. It is fixed in place, it usually needs power, and installing it is an alteration.
- Section 112 covers granting a licence to use common property. Handing a supplier a defined patch of the lobby is a licence.
- An exclusive-use or special-privilege by-law requires a special resolution at a general meeting, plus the written consent of any owner whose rights are affected.
A collection service engages none of this. A resident leaves a bag at a desk that already receives parcels, and a driver collects it the way any courier does. Nothing is fixed, nothing is stored in a dedicated space, and no part of the common property is set aside for one supplier’s use. That is the entire distinction, and it is why a desk-based service can start in a fortnight while a locker proposal often takes two general meetings and a solicitor.
What a strata committee can decide on its own
Section 36 provides that a decision of the strata committee is a decision of the owners corporation, with exceptions. The committee cannot make or amend by-laws, cannot set levies, and cannot approve improvements to common property. Those are matters for a general meeting.
A no-cost service arrangement that alters nothing sits outside that list. In practice most committees either note it as an operational matter for the building manager, or resolve to run a trial and review it at the next meeting. Both are ordinary committee business.
The disclosure question your committee should ask
NSW tightened disclosure obligations through 2025. Strata managers must disclose commissions and connected service providers. Building managers must disclose benefits they may receive from entering a contract, and any pre-existing relationship with a contractor.
So the question to put to any supplier is simple: is any commission, referral fee or revenue share flowing to our building manager, our concierge company or our strata manager, and will you put it in writing so it can be minuted? A legitimate arrangement survives that question comfortably. One that does not is telling you something.
What belongs in the committee papers
A one-page summary is usually enough. Cover:
- Cost to the owners corporation. If the answer is not “nil”, say what it is and where it lands in the budget.
- Common property. Whether anything is installed, whether any area is set aside, and whether any exclusive right is sought. If all three are no, say so plainly — it is the fact that decides the approval path.
- Insurance. Certificates of currency for public liability, product liability and workers compensation, plus cover for goods in the supplier’s care, custody and control. That last one is the item committees most often forget to ask for, and it is the one that matters when a resident’s suit is ruined.
- Liability. Where custody passes at each handover, in writing.
- Concierge workload. Your desk is contracted for defined duties. Quantify the addition rather than waving at it.
- Disclosure. Any commission or revenue share, stated plainly.
- Exit. How the scheme ends it, what notice applies, and what has to be unwound.
Run a trial instead of making a decision
Where a service costs nothing and installs nothing, a trial is almost always the better motion. There is no capital outlay to justify, no asset to dispose of, and no residual obligation if it does not suit the building. A quarter is long enough to see real uptake, and the committee then decides on evidence from its own building rather than on a supplier’s marketing.
Frequently asked questions
Does a strata committee need to approve a laundry service in NSW?
Usually not, where the service collects from an existing concierge desk and installs nothing. Approvals under the Strata Schemes Management Act 2015 are generally triggered by altering common property (s108) or granting exclusive use or a licence over it (s112), and a courier-style collection engages neither. A locker installation is different and generally needs a special resolution and an exclusive-use by-law.
Do we need a by-law for a third-party service provider?
A by-law is generally required where the provider is granted exclusive use of, or a special privilege over, common property. It is passed by special resolution at a general meeting and requires the written consent of any owner whose rights are affected. A provider who occupies no space and installs nothing is not normally in that category.
Can the building manager just say yes?
For a no-cost arrangement that alters nothing, many schemes treat it as within the building manager’s operational authority, in the same way parcel deliveries are handled. Where the building manager stands to receive any benefit, that must be disclosed. If in doubt, a committee resolution approving a trial removes the ambiguity at no cost.
Does it affect our strata insurance?
Confirm with your broker, as policies differ. Where nothing is installed and no common property is altered or exclusively used, most schemes find there is nothing to notify beyond their usual contractor arrangements.
Who is liable if a resident’s garment is lost or damaged?
That depends on where custody sits and what the supplier’s insurance covers. Ask for it in writing: the moment custody passes from resident to desk, and from desk to supplier, and a certificate of currency showing cover for goods in care, custody and control.
What if we want to end it?
Where there is no contract, no cost and no equipment, ending it means telling the supplier to stop attending. Confirm that before you start, because it is the difference between a trial and a commitment.
In short
Ask one question first: does this supplier install anything, or take exclusive use of any part of our common property? If the answer is no to both, the approval path is short and the committee’s job is to check insurance, liability and disclosure rather than to draft a by-law. If the answer is yes to either, expect a general meeting and a special resolution.
Concierge Dry Cleaners operates through the concierge desks of Sydney apartment buildings. Nothing is installed and no common property is used exclusively. If your committee wants the one-page summary described above, email info@conciergedrycleaners.com.au. See also our pages for strata committees and building managers.
This article is general information about NSW strata law and is not legal advice. Every scheme differs; confirm the position for your building with your strata manager or a strata lawyer.