Published: 21 Aug 2026
Working from Home vs Running a Business in a Sectional Title Scheme
With remote working becoming the norm, many owners wonder whether they can simply run a business from their Sectional Title unit. The answer depends on the nature of the activity, the effect on the scheme and on other residents.
While working from home is often permissible, operating a business from a residential unit is subject to important requirements.
While working from home is often permissible, operating a business from a residential unit is subject to important requirements.
​General Principle
Residential sections are intended to be used for residential purposes. An owner or occupier may not use a section or exclusive use area for a purpose other than its intended use.
The intended use is determined from the registered sectional plan, the approved building plans, the applicable town planning zoning by-laws, the schemes rules and the construction and layout of the unit.
The intended use is determined from the registered sectional plan, the approved building plans, the applicable town planning zoning by-laws, the schemes rules and the construction and layout of the unit.
​Working from Home is Not the Same as Running a Business
Someone sitting at home working for their employer, attending Teams meetings or running a quiet professional service online is very different from a business that brings customers, employees, deliveries and activity into the scheme.
A hairdresser, therapist, tutor, dog groomer or repair business is different because it may affect security, parking, noise and the peaceful enjoyment of neighbouring sections.
Working from home generally means the following:
A hairdresser, therapist, tutor, dog groomer or repair business is different because it may affect security, parking, noise and the peaceful enjoyment of neighbouring sections.
Working from home generally means the following:
- The unit remains primarily residential
- Providing professional services online
- No client visits the property
- No employees work from the section
- No noise or nuisance
- No excessive deliveries or collections
- No signage is displayed
- Neighbours are not inconvenienced
Are You Considering Running a Business from Home?
Before starting a business from your sectional title unit, it is important to consider how the proposed activity may affect the scheme and whether any approvals or consent may be required. Asking yourself the following questions can help identify potential issues before you get started and determine whether you need to approach the Body Corporate and other owners.
​Five Questions to Ask Before You Start a Business from Home
- Does it change the residential use of my unit?
- Will clients visit my unit?
- Will my business create additional traffic or parking demands?
- Will it create noise or disturb my neighbours?
- Have I obtained the necessary approvals that may be required?
What Consent Is Required?
Running a home-based business, particularly where the proposed activity changes the residential use of the section or exclusive use area, will require the written consent of all owners.
Trustees may not give consent on behalf of the owners where the Act requires the written consent of all owners.
Trustees may not give consent on behalf of the owners where the Act requires the written consent of all owners.
What Does the Sectional Title Schemes Management Act (STSMA) Say?
Section 13(1)(g) & PMR 30(f) stipulates that an owner may not use or permit his/her section or exclusive use area to be used for any purpose other than as shown or implied on the registered sectional plans and section 13(1)(e) goes on to state that owners/occupiers may not use their section or exclusive use area in a manner or for a purpose that would cause a nuisance or unreasonably interfere with the rights of other residents.
What Should the Trustees Consider?
Trustees may be concerned, that running a business from a residential unit may result in increased security risks, high volumes of visitors or deliveries, parking shortages, noise and disturbance, wear and tear on the common property, the scheme starting to look like a commercial premises and possible contravention of municipal zoning requirements.
Trustees should consider each application on its own merits and determine the following:
These concerns don't give the Trustees the power to approve or reject a change of use on their own. Where the proposed business changes the intended use of the section, the STSMA requires the written consent of all owners.
Trustees should consider each application on its own merits and determine the following:
- The nature of the business
- Are clients visiting the scheme
- The frequency of client visits
- Parking requirements
- Noise levels
- Deliveries
- Security risks
- Effect on neighbouring owners
These concerns don't give the Trustees the power to approve or reject a change of use on their own. Where the proposed business changes the intended use of the section, the STSMA requires the written consent of all owners.
If the Business Is Permitted, What Can the Scheme Regulate?
Once a business activity has been appropriately authorised, the Body Corporate may have reasonable rules dealing with the practical impact of the activity on the scheme. These could include security and visitor access, parking, deliveries, signage, operating hours and noise.
The purpose of these rules is not to give the Body Corporate the power to approve or prohibit the business, but to manage its impact on the scheme and protect the rights and peaceful enjoyment of other owners.
The purpose of these rules is not to give the Body Corporate the power to approve or prohibit the business, but to manage its impact on the scheme and protect the rights and peaceful enjoyment of other owners.
In Conclusion
The law does not prevent owners from working from home, nor does it automatically prohibit every home-based business. However, where an activity changes the residential use of a section or causes a nuisance or unreasonably interferes with the rights of other residents, the requirements of the STSMA, municipal by-laws and the scheme's rules must be carefully considered. Trustees should assess each application on its own merits to balance an owner's rights with the interests of the community.
Related Articles
You may also be interested in:
- Defining Roles in Your Scheme – Understanding the responsibilities of owners, trustees and the Body Corporate.
- Exclusive Use Areas in Sectional Title Schemes – What Every Owner and Trustee Should Know – Understanding the rights and responsibilities associated with exclusive use areas.
- Alterations & Improvements to Common Property in Sectional Title Schemes – What approvals are required when making changes within a sectional title scheme.
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