The official newsletter of Unit Owners Association QLD
Management and Letting Rights: Another Way There is a continuing debate about the sale of management and letting rights in residential apartment buildings. We often hear horror stories of conflicts between building managers and property owners who usually have conflicting or at least diverging objectives in managing a Written by UOAQ 2010 main account building. Some building managers are professional companies, whilst others are individuals who may have purchased rights with retirement savings, hoping to generate a nice easy income stream for their transition to retirement. In both cases the objectives are probably to maximise income (generally from letting) The enforcement of new pool by safety laws will and minimising their costs restricting be delayed for six months and Queensland’s the services provided under their rights statutory land valuations will be postponed agreements.
building residents the opportunity to purchase the rights, which after some hard work and effort, we were able to achieve. The BCCM Act does not permit a Body Corporate to engage in a business. Therefore it was necessary to float a company to Brisbane purchaseSkyline the management and letting rights along with the manager’s apartment.
Premier announces Key elements of our company common sense measures in constitution are that: • Shareholders can only be owners in aftermath of natural disasters the building who must dispose of for three months in the aftermath of the floods and Cyclone Yasi.
Resident owners on the other hand seek to enhance thebeen value and liveability of “The State has through a terrible time their property, whilst owners and now is not the timeinvestor to stick rigidly to the seek rules.”to secure good reliable tenants who look after their property and pay “This is about giving themovement breathing on time. There is a people growing space they need to concentrate putting embraced by some apartmentonbuildings their lives back together.” not to renew these rights agreements and to tender the management Under legislation introduced on 1 December and letting service provision at the 2010, all dwellings with a non shared pool conclusion of the existing agreements. must have a valid pool safety certificate before a rental agreement can be entered into.
There is an alternative option that It has also been confirmed by Pool Safety has worked that wellthe fordelay us atalso Stradbroke Queensland applies to Tower Villas. Some years ago our Sharedand Pools provided there are units within the complex that are rented out (whether management rights were available for permanent or holiday let). There areour fears sale. The existing owners gave
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their shares if they sell their measures could cause delays as the the new apartment. demand for rental properties increases in the • No one owner can hold more than aftermath of the current crisis. 20% of shares • are sufficient shares The There enforcement of new pool safetysuch laws that will be delayed every apartment owner could for six months and Queensland’s statutory acquire least one landat valuations willshare. be postponed for • the market for floods resale threeGiven months in limited the aftermath of the and of theseYasi. shares there are special Cyclone provisions to assist departing State has through a terrible time “Theowners to been dispose of their shares to and now is not the time to stick rigidly to new owners. the rules. This is about giving people the breathing space they need to concentrate Key benefits of the arrangement on putting their lives back together.”
are that: • The company (with input from the Under legislation introduced on 1 December 2010, body corporate) a building all dwellings withemploys a non shared pool mustmanager andpool oversees their have a valid safety certificate be fore performance. a rental agreement can be entered into. • Owners who are shareholders can It has also been confirmed by Pool Safety alsois applies to Queensland ensure that the ourdelay building managed Pools provided thereofare units. to Shared to achieve outcomes benefit
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JUNE 2011 MARCH 2011
the owners. Profits from the management and letting business are returned to owners who are shareholders.
Premier announces common sense measures in Issues with the arrangement aftermath of • natural Only around disasters 39% of owners have
taken up shares against our Written preference for 100% participation. by UOAQ 2010 main account • Return on investment is low by Theequity standards - pool safety enforcement of new laws however the lower will be delayed for financial six monthsreturn and is statutory valuations Queensland’s offset by the lack ofland potential conflict be postponed for three months in the willwith a commercially incentivised of the floods and Cyclone Yasi. aftermath rights manager. • Issues with the sale of shares upon State hasapartment, been through a terrible “The sale of an needs careful time and now is not the time to stick rig management and promotion idly to the rules.” to new owners. • “This Additional roles for community is about giving people the breathing space members in taking on the role as they need to concentrate on putting their directors in the company owning the lives back together.” management rights. Under legislation introduced on 1 Decem-
ber 2010,the all dwellings with noncompany, shared However members of athe poolwe must have amost valid of pool cer- in and believe thesafety owners tificate before are a rental agreement the complex, delighted withcan thebeway entered into.isIt has also been confirmed by our building managed and the control Pool Safety Queensland that the delay also we can exercise over the management applies to Shared Pools provided there are standards. So in conclusion we believe units within the complex that are rented out this is an effective and beneficial (whether permanent or holiday let).model. Tony Drake, Chairman Body Corporate Committee, Stradbroke Tower and Villas. Vince Kelly, Chairman Stradbroke. Tower Realty Pty Ltd.
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