8 minute read
chairperson puts the building fi rst
An eff ective body corporate
chairperson puts the building fi rst
By Mandy Clarke, Editor
Well known and wellregarded management rights authority Paul Cooper has worn many hats in this industry. He is a Founding Director of ABMA and an Independent Review Panel Member.
This month Resort News talked to Paul about his role as the Body Corporate Chairperson of Evolution Apartments in Brisbane, where he has lived since 2010 and where he owns three lots.
What att racted you to the management rights industry? I have no vested interest, but I saw a need for an independent voice of reason. Lynda Kypriadakis and I formed ABMA to be exactly that, and it was built to be the “argument stopper”. ABMA provides an objective standard for a divided industry? Yes. It brings all sides together from lawyers to bodies corporate to building managers and the ‘forgott en’ lot owners. Why did you become a body corporate chairperson? Whatever my role I have always asked myself, what is best for the building? And on that basis, it made sense to bring my experience and skills to the building where I am a lot owner. I have witnessed so much division in this industry over the years, between management rights professionals, lot owners, building managers, associations, bodies corporate, and so on... And once again, as a lot owner in this building, I saw division between the committ ee and building managers resulting in too many people arguing. Since stepping into the role of body corporate chairperson it has been my goal to resolve confl ict and create a harmonious working relationship because that is what is best for the building. Tell me about Evolution Apartments. It is a well-located management rights apartment building on the river in Brisbane City. There are 170 lots over 36 storeys with a mix of owner/ occupiers and investors. What is your relationship with the onsite manager? It is very solid. We have great formal and informal communication, and we share a goal - to do what is best for our building.
Paul Cooper
How much time do you spend actively carrying out the role of body corporate chairperson? I meet formally with our building manager fortnightly but spend approximately one hour per day on building related issues. What changes have you seen over the years? We now have more owner/ occupiers, and more multiple lot owners. We have virtually no confl ict, and a healthy sinking fund. In this role what have been your biggest challenges? Making sure everyone is focused on what is best for the building, and not just in their own self-interest.
What are your biggest achievements in this role?
It has been fi nding the right balance. That happens when everyone respects each other, taking time to listen to all opinions before acting. How do you manage confl ict within the body corporate? By aiming to resolve issues before they become confl ict! We do this through clear communication and healthy debate, respectful discussion, and we focus on what is best for the building. Should the position of body corporate chairperson be a paid position, considering responsibility and time commitment factors?
No. Everyone should be prepared to give something back to their community, whether that is a sporting group, a charity, or the building you live in. Should bodies corporate be able to appoint their own building manager/caretaker on fi xed-term contracts?
Anything can be achieved by mutual agreement once the scheme has been established.
What are the benefi ts of having an onsite manager? They can respond 24/7 which means they are more likely to control the behaviour of tenants and guests. Also, because they live in the building, they tend to be more selective of tenants and guests. Importantly, onsite managers are more cost-eff ective than using outside facility management. They are cheaper, or they get more things done for the same cost.
Have you identifi ed problems with onsite management? Yes. I’ve found that complacency causes poor onsite management.
Other common problems are caused by confusion around the ‘schedule of duties’ or stem from an onsite managers being unable or unwilling to do a very basic task, like emptying a pool filter or trimming a hedge. What sort of support and training do onsite managers need? Every good onsite manager should be a member of industry body, ARAMA and attend the regular face-to-face and webinar training provided. Of course, they should always complete ARAMA’s Management Rights Induction Training Program. I would also recommend a subscription to ABMA, following its guidelines outlined in the ABMA Code book. In addition, there are some excellent training programs offered by ABMA trainers and other independent professionals. And of course, subscribe to Resort News! Do body corporate managers need training? Yes. They should be trained to understand the business of Management and Letting Rights (MLR) so they can better support the scheme they manage. What about body corporate committee members?
Yes, the online training provided by the BCCM Commissioners office should be a minimum requirement for any lot owner who volunteers their time to be on the committee.
Who should provide the training? ARAMA is ideally positioned to deliver MLR training otherwise you are at risk of receiving a biased view. What can a body corporate chairperson do about an underperforming building manager? The first step is to have a meaningful discussion with the building manager about their poor performance and together work out how it can be addressed.
Treat their caretaking service agreement as the job description and hold them accountable if their performance is not in line with their agreement. Importantly you may need to vary the agreement to ensure that it suits the scheme and contains sufficient specificity. Take the resident manager with you if you wish to vary the agreement and bargain in good faith. Ultimately it is key to work cooperatively with the building manager to achieve the desired outcome.
Do you have advice for creating good working relationships in a building? The first step is to have regular, formal meetings between the chairman and building manager to ensure everyone is on the ‘same page’ to achieve what is best for the building. And to adopt a collaborative approach with good faith negotiations and mutual respect. ARAMA talks about the ‘triangle of management’ between a good resident manager, a good body corporate manager, and a good committee that treats each other with respect and works together to achieve outcomes that are in the best interest of the scheme.
Evolution Apartments in Brisbane
What are your thoughts on the length of MLR contracts?
Long-term agreements equal long-term thinking. Someone must think and act in the best long-term interests of the building, which should be well maintained for the long life of the building. The building will never be able to clean or maintain itself so I can’t see any benefit in a short-term agreement. Will any problems get solved by reducing MLR terms? No. On the contrary, I think problems will escalate and costs will soar if a scheme only focuses on the next few years and does not take a long-term approach. What problems can you foresee if terms are reduced?
Cheap building managers with no loyalty to the scheme will just dump and run if things do not suit them. Remember an onsite manager has a significant investment in the long-term capital value of the scheme, therefore is bound to the scheme, and faces a considerable loss if they move on when things get tough. A main bone of contention seems to be non-performing managers, do you have any thoughts on how to deal with them?
Often, the reasons why a person is underperforming is due to a lack of understanding of their duties, or because they are demotivated by poor treatment by the committee or individual lot owners. If a manager is treated with respect and provided with a motivating workplace you will get the best out of them. What are the most common complaints from owners or residents in a building? Laundry bins, visitor parking, pets, and not enough understanding of what levies are for.
What are your thoughts on short stays and Airbnb in residential buildings? It’s all about the impact on others. Personally, I don’t like it, but I also understand that in a building you have to expect a mix of owner/occupiers, renters, and short-term stays. Most importantly there must be a respectful code of conduct for ALL. And if anyone breaches the law it should become a police matter, not a building issue. It is all about the impact on others. I am not a smoker and don’t have a pet, but I do what is best for the building. Our building does have smokers and pets, but we have established rules that we all agree on and enforce.
What are your viewpoints on facility management for the building?
In my opinion, a resident manager specialising in a particular scheme will always outshine a big multinational facility management company. Many of these companies are also overstretched and based interstate or overseas.
What are your thoughts on MLR groups owning multiple management rights and residing off-site?
A resident or onsite manager is a person who manages a residential scheme and responds in a timely fashion to the needs of the scheme. If the resident manager is responsive 24/7, I do not feel it should make a difference whether they live on or off-site.
Following the COVID pandemic many people have continued to work from home, have you experienced this issue in your building and what are your thoughts?
I think it will be the future. I have seen a positive outcome with more people around our building, enjoying the facilities and even working around the pool area.
Multi-dwelling living is a growing trend in Australia, do you have any thoughts on the future of the industry?
It is only going to grow, and we all need to learn how to communicate better - to stop emailing and start talking to each other again!
Do you have anything else you would like to tell our readers?
Living in a community title scheme can be a great thing if everyone respects each other and focus on what is best for you, your neighbour, your building manager, and most importantly the building.
