MEDIA RELEASE 8 February 2002
Issued by Queensland Resident Accommodation Managers Association Inc
New Legislation Must Consider Resident Managers
by Kim Cox

                       

The decision by the State Government to allow for the broadening of submissions to the Body Corporate and Community Management Act review presents a challenge to the whole industry to respond proactively to this opportunity.

QRAMA believes that this legislative review is pivotal to the future development and growth of the Australian domestic tourism and holiday industry, and the nation’s economy.

The impact of this review on the holiday accommodation industry spreads across the whole of Government, because the Government has the chance to better categorise the industry into its various components and develop licensing, education and accountability systems which satisfy the needs of the various sectors.

QRAMA has put before the Minister the case that existing legislation centres its focus on the protection and security of owners, and assumes that most owners are also occupiers.

The reality is that now more than a third of modern community titled units and townhouses in building complexes are owned by investors and absentee owners.

These assets are put to work to earn income, which they do, in the main, by catering for holidaying or short-term accommodation seekers.

Whilst resident managers are already licensed under the Property Agents and Motor Dealers legislation, the decision by the Government to seek a model to license body corporate managers further strengthens the accountability and consumer protection aspects of industry management.

The review of the legislation must recognise that as the strata and community titled property industry continues to grow and deliver more diverse and sophisticated products, there are more stakeholders whose needs are required to be considered and addressed by the legislation.

The introduction of different modules in the BCCM Act foreshadowed the different needs of owner occupiers and absentee owners.   It is clear to all of us in the industry that buildings with on-site managers tend to have a majority of absentee or investor type owners and the rules regulating the functions of the manager are quite different to those in a building where the units are predominately owner occupiers.

In simple terms, a building which has a majority of owner occupiers and an on-site manager really only needs that manager to carry out duties such as vacuuming the pool, cleaning the barbeques and mopping the floors. Buildings where the majority of owners are absent clearly require the on-site manager to function at a much higher level. They must perform duties such as marketing the product, advertising the complex, satisfying guests needs, and keeping the common areas and facilities at a high standard.

In addition, buildings with primarily absentee owners need the rules to be considerably more flexible. For example, unlike the owner-occupier buildings, it is difficult for absentee owners to attend committee meetings and so alternative arrangements need to be available such as proxies.

The BCCM review appears to have forgotten the reasons why different modules were introduced.

The statistics now coming out of the tourism industry following the September 11 terrorist attacks and the Ansett collapse indicate that domestic tourism and the motoring holiday industry thrived in the south east of the state which is accessible to the drive market.  Until there is more certainty with security issues, flying will be delayed by some potential holiday guests.

Safe destination tourism is expanding in Australia and will continue to attract international visitation if new and modern product is delivered.

Professional on site management is an essential element in the chain of this growth and there is ample evidence overseas that companies are likely to move into this role in certain circumstances.

At the present time, resident accommodation  management is a small business investment in Queensland, with individuals and families investing in the business and living on the job.

The dedication of these business people have seen the industry grow and now there are more than 55,000 holiday units in Queensland under on-site accommodation management providing millions of tourist bed nights and stimulating local economies.

The boutique sector of the industry has seen a growth of bed and breakfast type facilities all over the countryside, bringing tourism to small communities.

The new legislation needs to consider the new changes and trends in the industry, certainly protect the owner-occupiers, but also provide protection and security for the investing owners, including resident accommodation managers and other stakeholders.

QRAMA will continue to present this case during the development of the legislation.

ENDS
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