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ARAMA REPORT
Nobody
does it better than a resident manager
A large slice of Queensland’s strata accommodation industry has been built on the back of Management and Letting Rights (MLR), and it is a proven model for success. If it wasn't for developers embracing the MLR concept, the Sunshine State simply wouldn't have the tourism industry it has. Instead, we would be like Victoria and NSW, with an emphasis on five-star hotels, motels, caravan parks and dodgy party houses. What started out decades ago as an improved service delivery model for holiday makers on the Gold Coast has now blossomed to include other states and long-term residential tenancy accommodation in schemes right across Australia and in many other parts of the world. A few years ago, ARAMA commissioned a report from Deloitte which showed that a resident manager gives more bang for a property’s buck then alternate business models. The report also showed that a resident manager, acting
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of the resident manager who has already invested heavily in the entire scheme. You might remember that once upon a time newsagents were the only places that you could buy a newspaper?
Trevor Rawnsley, CEO, ARAMA
as an onsite letting agent, delivers a better and higher return than an offsite letting agent might otherwise do. Yet, MLR operators are under increasing attack, whether it’s from committee members who don’t understand the amount of work they do, or the commercially jealous looking to move in on their territory or grab a few bucks from creating disputes. That includes outside real estate agents who get outperformed and deliberately besmirch the reputation of the on-site letting agent, especially if they own a lot in the scheme, or if they get on a committee and start marketing their own services over those
The law changed, and those businesses were severely impacted as newspapers went on sale in supermarkets, petrol stations and almost everywhere else. Newsagents now resemble Lotto offices and they are now trying to flog anything to stay in business. The resale value of a newsagency plummeted as a result of that change in legislation. Then the taxi industry got careless and complacent, allowed its service to suffer, and sat by stunned as Uber rode roughshod over it to fill the void and give customers what they really wanted. Excellent service. The value of a taxi license plummeted. Poor service and lack of customer focus provided a clear pathway for Uber, and soon there were other ride-share providers taking work from the taxis that were left in Uber’s wake.
INDUSTRY
Who are your disruptors? And who will protect your business from sudden changes in legislation? As ARAMA celebrates its 30th birthday this year, it’s a timely reminder that it is the industry’s insurance policy, the association that thwarted legislation that would have devastated the MLR landscape three decades ago. Our industry’s detractors are often body corporate committee members looking at a balance sheet, seeing “caretaking services” and then a very large number. They start to think the manager is overpaid and the committee is being ripped off. That is the general viewpoint of a person who doesn't understand what a resident manager does. As the Deloitte report for ARAMA showed, a resident manager actually saves a scheme money. In any scheme, a manager could call VIP Lawn Mowing, get a quote for doing the lawns and trimming the hedges, and say to the committee “look I (or my business) do this for the same price that VIP does, plus I also clean the foyers, carparks, driveways and I ResortNews | March 2022
