Air Conditioning — Who's Responsible?

Air conditioning is one of the most disputed items in NSW strata — and one of the most regulated. The short version: the unit itself is the owner's, but installing one almost always affects common property, which means you usually need a registered by-law before you start. Townhouse schemes have more flexibility than apartments here, but the by-law requirement is the same.

What we're talking about

Air conditioning in a townhouse scheme usually means:

• Split systems — an indoor head unit and an outdoor compressor
• Ducted systems — outdoor unit, indoor unit, ducting through the roof or floor
• Window-mounted box units (older installations)
• Evaporative coolers (less common but similar issues)

Typical position

Grey areas and common disputes

Why a by-law matters

Most air conditioning installations involve:

• Drilling through an external wall (common property) for refrigerant lines
• Bolting the compressor to a wall, the ground or a slab (often common property)
• Running electrical cabling along or through common property
• Discharging condensate water somewhere

Each of these triggers Section 108 of the Strata Schemes Management Act 2015 — works affecting common property need OC approval, and significant work needs a registered by-law. A properly drafted by-law sets out the owner's ongoing maintenance responsibility, what happens at end-of-life, and protects everyone if the unit causes problems later.

Can the OC just say "no"?

Not really. The Court of Appeal made it clear in Cooper v The Owners — Strata Plan No 58068 [2020] NSWCA 250 that by-laws which are "harsh, unconscionable or oppressive" are invalid under Section 139 of the Act. While Cooper was specifically about pets, the principle applies more broadly: an OC can't impose blanket bans without legitimate reasons.

For air conditioning, an OC can reasonably:

• Require a licensed installer
• Require compliance with EPA noise rules
• Specify location for the outdoor unit (so it doesn't disturb a neighbour)
• Require make-good of any common property at end-of-life
• Require the owner to take out and maintain appropriate insurance

An OC cannot reasonably refuse air conditioning altogether in a modern climate, particularly in a townhouse scheme where space and impact on neighbours are manageable.

Noise

Outdoor compressors hum. In a townhouse scheme with units close together, that hum can become someone else's problem — particularly outside a bedroom window at 5am. The NSW EPA publishes noise guidelines, and councils enforce them. A properly drafted by-law usually requires:

• Compliance with the Industrial Noise Policy or EPA residential limits
• Specific quiet hours (e.g. no operation 10pm-7am unless internal head running on quiet mode)
• Acoustic screening if needed

If a neighbour complains about your unit's noise, take it seriously. NCAT can order changes or even removal.

Condensate water

Air conditioners produce condensate — water that drips from the unit when it's running. Where does it go? It can't just drip onto common property. Acceptable options usually include connection to a sewer (subject to council rules), to a stormwater drain, or to a contained drainage point inside your own lot.

Units installed by previous owners without a by-law

You buy a townhouse with an AC unit already installed. It's been there 10 years. Nobody has paperwork. Is it OK?

The simple answer: probably not, strictly. The OC could theoretically require the unit be removed and the common property restored. In practice, OCs usually deal with this by either:

• Registering a retrospective by-law (subject to a special resolution at a general meeting)
• Letting it stand on the basis that requiring removal would be harsh
• Requiring action only when the unit is replaced

If you're buying a townhouse with existing AC, ask for the by-law. If there isn't one, factor it into your decision.