Op-Ed – Unfair: NSW Fair-Trading Short-Term Management Right Licence Requirements

• Three hours of compulsory CPD topics (these are set by Fair Trading and change every year); • three hours of elective CPD topics; and • three hours of business skill topics.

Eligibility to apply for a licence

To obtain a licence, you must meet the following criteria: • You are at least 18 years old; • you are a fit and proper person to hold a licence; • you have the qualifications required for the licence class you are applying for; • you have completed the required work experience tasks; • your previous licence (or certificate of registration) has not been disqualified; • your principal place of business is either in NSW or within 50km of the NSW border;

• you hold a Diploma of Property (Agency Management CPP51119) or Diploma of Property Services (Agency Management CPP50307); and

• you hold a Certificate IV in Real Estate Practice.

Mutual recognition of interstate licences

If you hold a current and equivalent licence in another state or territory (or New Zealand) you can lodge a form to apply to work in NSW under an equivalent licence. The key issue here is that you must hold a current licence in the other state, and not just have done the course to qualify to hold that licence. The management rights industry favours the onsite residential property managers licence The Australian Residents Accommodation Managers Association (ARAMA) pushed hard for this licence category. An On-Site Residential Property Managers licence allows you to act as an agent: • For giving possession of residential premises under a lease, licence or other contract;

• for collecting bonds, deposits, rents, fees or other charges in connection with any such lease, licence or other contract.

Note: This licence does not allow you to act as an agent for the purposes of selling real estate. The NSW government recognised that On-site Residential Property Managers work or live in the unit or apartment complex they are responsible for. Given their unique working arrangements, this form of licence is treated as a Class 1 real estate agent licence in NSW, allowing the manager to let units and operate a trust account. Most importantly, this form of licence means that you don’t have to first hold a Certificate of Registration or Class 2 licence, thereby cutting out effectively three years of having to work in the real estate industry, before becoming eligible to let and operate a trust account. However, you must have completed the Certificate IV in Real Estate Practice and continuing professional development (CPD) requirements apply.

Refining the Educational Requirements for the On-site Residential Property Managers Licence

ARAMA has pointed out to the NSW government that the current educational requirements of a Certificate IV in Real Estate Practice is a gross overkill for obtaining an On Site Residential Managers Licence. This course includes educating licensees on duties that they are not allowed to perform under the On Site Residential Managers Licence, such as selling real estate selling! Hopefully, common sense will soon apply and the education requirement for this form of licence will be limited to all the licensee is allowed to do - let units and operate a trust account!

Unfair:

NSW Fair-Trading ShortTerm Management Right Licence Requirements

By Rob White, Tathra Beach House Apartments

I have operated a short-term holiday property on the NSW South Coast for around 30 years.

I seamlessly migrated into management rights from a hospitality and tourism background when there were no licencing requirements. Our property is successful we have won regional tourism awards on many occasions and been a finalist in the NSW Tourism awards. We have retained 100 percent of owner properties under our management for the entire 30 years. I see myself as an accommodation industry professional however NSW Fair Trading mandate that I am a Real Estate Agent! We greet our clients as guests not tenants. I have no expertise in selling property, running auctions, presenting to tribunals, appraising property, or a host of other skill Fair Trading maintain that I must have to have to run my business. I have skills in guest relations, PMS operations, revenue management. OTA management, tourism marketing, managing room servicing staff, managing guest OH&S issues, managing swimming pool operations, and managing gardeners and outdoor staff. There are a huge mismatch of skill sets between what we need and what NSW Fair Trading mandate we have. Unfortunately, NSW Fair Trading appear to have very little insight or understanding of what is involved in the operation of a short-term management right tourism business, they need to consult with us.

Now, if a new entrant wants to enter our industry, either as an employed operations manager or as a business owner, NSW Fair Trading mandate that they must complete a Cert IV in Realestate Management, the NSW TAFE Web site states that this is a 17-week full time course or 36-week part time. They must study a range of subjects with no relevance to our industry.

For our industry to survive and thrive in NSW we need to attract young accommodation industry and tourism professionals with relevant accommodation industry skill sets, the current mismatch of skills between what is mandated by Fair Trading and what is necessary must be addressed.

If we continue as we are few will be attracted to our industry, they will choose to work in or buy hotels, motels, and caravan parks instead. Leaving many existing management right business owners unable to sell their businesses or attract suitably qualified management. The property owners will also suffer having no on-site management for their letting and caretaking, the holiday makers will also suffer with diminished amenity and facilities.