Industry growth needs harmony to achieve success for all
The fact that 2014 has been one of the busiest years for the density living industry has been highlighted by the growth and vital review of administrative issues that provides controls throughout the industry.
The encouraging situation is that most sectors of the industry have reported sound growth and in many areas, records growth in the holiday and tourist sectors of the accommodation industry. Boom construction and major legislation reviews clearly indicate that the role of resident managers continues to be more important for all parties and stakeholders in the day-to-day operations. The return of tourists to the traditional holiday centres, destinations and venues, and the new opportunities emerging for the expansion of holiday and tourist industries growth are great news for all. So too, are the focuses on new opportunities to attract tourists through event promotion and the opening up of key areas for visitors in national parks and other special destinations.
The skylines of our major centres continues to demonstrate that the 21st century living and desire for members of all generations to take up residence in high rise buildings and community living complexes and destinations continues to expand in south east Queensland and regional centres in regional centres across the nation. As the Queensland population continues to increase above the national average with a continuing migration from other states and a steady birth rate – the desire for modern and convenient density living accommodation continues to attract new and existing investors and home owners and tenants.
This means that the opportunities exist for new entrants to come into the management rights industry.
It was interesting to note that during the recent parliamentary estimates debate, attorney-general Jarrod Bleijie expressed some concern about certain body corporate members adopting a selfish attitude within their complexes. The A-G highlighted the need for all parties, owners, investors, bodies’ corporate committees, body corporate managers and resident managers, to work harmoniously in complexes large and small. He pointed out that disputes should be resolved without costly litigation that have been the unfortunate situation in too many instances in the past
The desire to remove red tape where possible has been achieved in most instances with the breakup of the old PAMD Act and the special legislation creating the Property Occupations Act and the stand alone Agents Financial Administration Act. The QUT law group study will set the review agenda for the BCCM Act during next year on an updated and steady course The A-G has said the government recognises there are issues in community titles and it is planned to “look around the world about these issues.”
He has pointed out the QUT law school professors have provided issues papers on lot entitlements and seller’s disclosure and there will be others issued in the future about governance and getting on with each other. However some red tape revision is still needed and ARAMA has raised the issue of trust account management and the fact that some resident managers are being required to alter the way they complete transactions at point of sale. This change in the interpretation of the existing regulations is actually causing an increase in red tape, administrative process and therefore cost for no apparent benefit to the operator or the lot owner. ARAMA will continue to work with the regulators to seek sensible outcomes to these matters.
Resident letting agents are in a unique position in comparison to general real estate agents. Resident managers have day-to-day dealings with guests who apart from paying for accommodation, might acquire and pay for a number of related services such as tours, extra towels and linen, additional cleaning, room service and transportation
We contend that the situation needs to be addressed during the development of the regulations because it is likely to create more mistakes rather than provide the best management results, especially if there are a number of customers being dealt with-allocating items in trust accounts and operating accounts.
Ours is very much a “people” business at all levels and complexities which add to costs are not desirable.
“I know that is going to be a difficult process because in community titles you are all living sometimes under the one roof and personalities persist in committee,” Mr Bleijie told the parliament. “I heard recently that the NSW jurisdiction is very impressed with how Queensland is conducting itself in terms of our review and engaging with the law school.”
The management rights industry that was founded in Queensland has now established a strong national and international reputation and it is important that we are able to continue to ensure it functions well for all stakeholders.
