Air conditioning is one of the most disputed items in NSW strata โ€” 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 need approval before you start. Townhouse schemes often have more room for outdoor units than apartments, but the approval requirement is the same.

What we're talking about

Air conditioning in a townhouse scheme usually means:

Typical position

Usually owner

  • The air conditioner itself (indoor and outdoor units)
  • Refrigerant lines and electrical connections
  • Servicing, filter cleaning, gas top-ups
  • Damage caused by your unit (leak, water staining)
  • Replacement when it fails
  • Noise mitigation if required

Usually OC

  • The common-property wall, roof or surface the unit is fixed to
  • Damage to common property caused by poor installation

Often grey

  • Units installed by previous owners without approval
  • Older window units that pre-date current rules
  • Noise complaints โ€” assessment and remediation
  • Condensate drainage discharge points
  • Approved installations now needing replacement

โš  Townhouse vs apartment air conditioning

In apartments, air conditioning is one of the most contested issues โ€” limited locations for outdoor units, noise concerns between units, the appearance of compressors on balconies and facades. Strict by-laws are the norm.

Townhouses have more flexibility โ€” ground-level courtyards, dedicated wall space, more separation between units. But the rule is the same: if your installation touches common property (mounting on a wall, refrigerant lines through a wall, attachment to a roof), you need approval before you start. An owner must not carry out work on common property without authority (s111).

Grey areas and common disputes

Why approval matters

Most air conditioning installations involve:

Each of these is work on common property, so it needs approval first. If the work is a minor renovation, approval is by ordinary resolution at a general meeting โ€” or by the committee, if a by-law delegates that power (s110). Otherwise it needs a special resolution under s108, which must say who maintains the work. A clear approval sets out the owner's ongoing maintenance responsibility and what happens at end of life, and protects everyone if the unit causes problems later.

What if the OC says no?

Ask for the decision, and the reasons, in writing. Where a by-law delegates minor renovation approvals to the committee, the committee must give written reasons if it refuses โ€” and if it doesn't respond within 3 months, approval is deemed to be given (s110(6A)โ€“(6B)). If you believe a refusal is unreasonable, NCAT can be asked to approve the work (s126). Talk to us before going down that path โ€” most installations are approved with sensible conditions.

Common conditions on an approval include:

Noise

Outdoor compressors hum. In a townhouse scheme with units close together, that hum can become someone else's problem โ€” particularly outside a bedroom window at 5am. Approval conditions often deal with:

If a neighbour complains about your unit's noise, take it seriously and talk to us early โ€” most noise problems are fixed by relocating or screening the unit.

Condensate water

Air conditioners produce condensate โ€” 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 approval

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: if it was never approved, it's a loose end. In practice, OCs usually deal with this by either:

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

Approval routes at a glance

Cosmetic work (s109) โ€” no approval and no notice. Minor renovations (s110) โ€” ordinary resolution at a general meeting, or the committee if a by-law delegates it. Other work on common property (s108) โ€” special resolution at a general meeting, which must say who maintains the work.

Whether your installation counts as minor depends on what's involved โ€” ask us before you book the installer.

Practical next steps

  1. Before installing, talk to your strata manager about approval. We'll tell you which route applies and what the application needs.
  2. Get a licensed installer โ€” air conditioning involves refrigerant, electrical work, and structural attachment. All licensed.
  3. Plan the location carefully โ€” outdoor unit should be away from neighbours' bedrooms and not facing common areas of use.
  4. Address condensate โ€” get the installer to plan where the water goes.
  5. Keep records โ€” installation, approval, maintenance. Pass them to the next owner.
  6. If you've inherited an undocumented unit, raise it with the strata manager and consider getting the installation approved before there's a dispute.
  7. If a neighbour's unit is causing noise, raise it with the strata manager first. Most issues can be resolved before NCAT.

Sources

Strata Schemes Development Act 2015 (NSW), s4 (definition of common property) and s6 (lot boundaries).

Strata Schemes Management Act 2015 (NSW), s108 (alterations to common property โ€” special resolution, which must say who maintains the work), s110 (minor renovations), s111 (no work on common property without authority), s126 (NCAT approval of work).

NSW Fair Trading โ€” Strata living and dispute resolution guidance.

This isn't legal advice. Air conditioning installations almost always involve common property, so they need approval first. Disputes around noise, location and approval are common. Get the approval sorted before installing โ€” it protects you and the scheme.
AH
Alan Hunter
Licensee in Charge, Townhouse Strata ยท Class 1 Strata Manager