Top 5 Disputes in Townhouse Owners Corporations (And How to Avoid Them)

Living in a townhouse community has many advantages—shared costs, low maintenance, and a tight-knit environment. But when multiple owners share space, disagreements can and do happen, especially in Owners Corporations (OCs).

Whether you’re self-managed or professionally managed, knowing the most common disputes and how to prevent them can save time, stress, and even legal costs.

Here are the top 5 disputes we see in Victorian townhouse OCs, and our expert advice on how to handle or avoid them altogether.

1. Parking Problems

Unauthorized parking in visitor spaces, blocking garages, or disputes over who can park where.

Why it happens:Townhouse developments often have limited on-site parking and unclear rules about visitor bays or shared driveways.

How to avoid it:

• Create clear rules for parking and visitor spots (ideally registered with Land Use Victoria).

• Install signage and line-marking if necessary.

• Engage a strata manager to enforce rules fairly and consistently.

• Consider motion-activated cameras for repeat offenders (where legal and agreed upon).
  

2. Pets in the Property

Disputes over barking dogs, aggressive pets, or whether animals should be allowed at all.

Why it happens: Not all townhouse communities have clear pet policies, and personal views can clash.

How to avoid it:

• Establish a clear pet policy in your OC rules: what’s allowed, what’s not, and any approval process.

• Refer to Model Rules and VCAT case law, which generally support pet ownership unless there's real nuisance or risk.

• Encourage responsible pet ownership and neighbourly communication.
  

3. Noise & Nuisance

Complaints about loud parties, renovation work, or general noise coming from neighbouring townhouses.

Why it happens:Townhouses are close together, and without soundproofing, even everyday noise can become disruptive.

How to avoid it:

• Use OC rules to set reasonable hours for construction or loud activity.

• Educate owners on acceptable noise levels (especially for renters or short-stays).

• Address complaints early and calmly—before they escalate into formal disputes.
  

4. Garden & Common Area Maintenance

Arguments over who is responsible for maintaining shared garden beds, front lawns, or communal pathways.

Why it happens:In smaller developments, the lines between private and common property aren’t always clear.

How to avoid it:

• Review the plan of subdivision to determine what’s common property.

• Clearly define owner responsibilities in custom OC rules.

• Consider hiring a gardener or cleaning service if disputes arise about fairness.
  

5. External Alterations & Renovations

Owners make changes to their property—installing air conditioners, painting exteriors, or building pergolas—without OC approval.

Why it happens:Owners often assume that because they “own it,” they can change it. But alterations affecting common property or the overall appearance usually require OC consent.

How to avoid it:

• Remind owners that OC approval is often required for external changes under the Owners Corporations Act.

• Develop a clear approval process and communicate it regularly.

• Include examples of permitted and non-permitted alterations in your welcome pack for new owners.
  

Bonus Tip: Create a Clear Set of OC Rules

Most disputes arise due to unclear or non-existent rules. While every OC in Victoria is automatically governed by the Model Rules, they’re often too generic for townhouse communities.

A good set of custom rules can cover:

• Parking

• Noise

• Pets

• Renovations

• Use of common property
  

📌 Make sure your rules are properly registered with Land Use Victoria to make them enforceable. If your unsure check your POS (Plan Of Subdivision)

Final Word: Prevention is Always Cheaper Than a Dispute

Disagreements in townhouse OCs are common—but they don’t have to escalate into costly, time-consuming conflicts. With clear communication, registered rules, and a fair process for resolving issues, most disputes can be handled quickly and respectfully.

And when in doubt? A professional Owners Corporation Manager can act as a neutral party to guide your community through challenges before they reach the VCAT stage.

Need Help Managing Disputes or Updating Your OC Rules?

We help townhouse communities across Victoria resolve conflicts, set enforceable rules, and stay compliant. Whether you’re self-managed or looking to bring in a professional, we’re here to help.

Contact us today for an obligation-free chat about how we can support your Owners Corporation.