Resort News, June 2022

Page 6

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SPECIAL REPORT

Calls to licence body corporate managers

By Grantlee Kieza, Industry Reporter

Industry leaders in strata management are calling for stricter requirements for body corporate managers in Queensland. Unlike other states, body corporate managers do not require licensing or qualifications in Queensland, even though they may be in charge of a scheme’s funds totalling millions of dollars. Strata Community Association (SCA) Queensland President Kristi Kinast told Resort News that it was “clearly unacceptable” that “you can be a builder or baker on Friday and a body corporate manager on Monday.” “It is well past time for body corporate managers to have compulsory ethical and professional standards to protect consumers from inappropriate conduct,” Ms Kinast said. “Billions of dollars are under management in an industry that is totally unregulated.

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“SCA (Qld) offers high educational standards and has a professional standards process, but we do not have total coverage of the industry and membership with us is voluntary. We have no recourse against non-members. “A regulatory barrier to being a body corporate manager must be created – this is essential to consumer protection.” Ms Kinast said anyone could get a free ABN online and call themselves a body corporate manager with no regard for professionalism or ethics.

typically includes meeting management, managing the financial affairs of a body corporate, negotiating and renewing contracts and agreements and arranging regular maintenance. In Queensland there is no government-controlled licensing or registration requirement for body corporate managers. However, SCA (Qld) members are required to fulfil eligibility criteria to join and have ongoing requirements to maintain their membership. Despite this, body corporate managers can still enter the industry with no specific qualifications.

“This is frightening,” she said, “considering body corporate managers manage billions of dollars of other people’s money across the state.”

Todd Garsden, a partner at Mahoneys lawyers, told Resort News: “There is plenty of training out there but no requirement to take that training, and they are not necessary qualifications or minimum standards.

The SCA describes body corporate or strata managers as professionals “who assist a body corporate in administering their scheme.” The body corporate committee engages a manager on a contract basis, defining the services included in the Standard Administration. Their work

“So effectively the position of body corporate manager is completely unregulated. “The SCA is pushing quite hard to actually require licensing

INDUSTRY

Todd Garsden, partner, Mahoneys lawyers

to a minimum standard and that would require training to receive those qualifications. The intent is to make licensing a requirement for body corporate managers in Queensland rather than an option. “Obviously there have been some issues in the past with managers who have run off with body corporate funds. And we are talking about huge amounts of money. “Some managers out there have very little experience in body corporate management and just see it as an add-on to an existing business.” ResortNews | June 2022


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