2015 arama special supplement

ARAMA | industry profi le

Management rights – how the industry developed

The development of the management rights industry is closely linked with the growth and prosperity that has placed Queensland as the leading tourist centre in Australia and continues to work on new opportunities to expand the industry

The history of the development of the management rights industry goes back almost fi ve decades and identifi es the commitment of its Gold Coast pioneers to structure an orderly industry, which has such a diversity and complexity of stakeholders to help in its growth and successes. The history also reveals that the practical nature of the work undertaken by resident managers and sees that the success of the industry requires understanding and cooperation by a range of service providers and industry

operators, to attract not just visitors, but investors to ensure that the facilities and services that make an Australian holiday are readily available on site.

The history of management rights is divided into three distinct sectors, the original Accommodation Owners Association formed in 1969 and then the development of the Queensland Resident Accommodation Managers Association in 1992 and now in the 21st century the Australian Resident Accommodation Managers Association.

QRAMA, now ARAMA was activated in 1992 in response by the management rights industry on the Gold Coast and Sunshine Coast to have representation in the review of the legislation to ensure that restricted letting agents were able to sustain their commercial position within the old Building Units and Group Titles legislation.

As the legislation was reviewed and updated to meet the rapid growth in density living, the new Body Corporate and Community Management Act initiated major industry

reforms in 1994 and 1997 that saw the creation of a range of accommodation modules. The process of review and update continues and this year the BCCM Act is again under active review with the Offi ce of Fair Trading conducting surveys prior to a program of industry and community consultation

Back in 2007, ARAMA was founded to ensure that the association was involved in the national agenda as Australians further embraced density living and the industry continued to grow rapidly in major centres of population in Australia. The foresight of ARAMA pioneers is linked to the growth of the tourist industry, which in turn attracted more Australians to embrace the lifestyle benefi ts of full time density living and its benefi ts and opportunities. ■

01resortnews | february 2015

"...To attract not just visitors, but investors to ensure that the facilities and services that make an Australian holiday are readily available on site..."

industry profi le | ARAMA

Evolution of a force

Originally called the Australian Accommodation Owners Association but changed its name in 1970 to Accommodation Owners Association, was founded on the Gold Coast when there were no management rights as such and the “fl ats” were all owned by the building owner, mostly small complexes of fl ats and quite a few motels.

Veteran operator David Ruxton joined the AOA in 1968 and was elected secretary in l969 with Vic Green as president who owned and operated the Bel Air Motel in Cavill Ave, Surfers Paradise.

Vic Green had approximately 10 units and David Ruxton had just fi nished the fi rst fl oor on a three-storey block of fl ats and had four to let.

Flats rented by the unit per day or night, plus linen and TV if required. They had no cooking facilities at all except for a kettle or a jug to boil water but both fl ats and motels had a shared laundry.

Still pursuing the elusive “groups”, Dave Ruxton went down to Melbourne on behalf of the AOA, seeking support from the airlines. AOA continued to let fl ats off the street or by phone then moved to print a magazine annually called the Accommodation Owner’s Guide at a cost of $40,000 in 1970 and distributed this to travel agents and proposed guests. They also created a booking service to

help the association and then TAA Airlines advised that they would be interested in this new concept of fully self-contained accommodation.

AOA approached 30 properties and eventually had 10 to agree to pay 10 per cent commission, a new concept for the time and eventually the 10 operators submitted the quotes to the airlines.

David had three categories which were $21, $28 and $35 per week for accommodation (self-contained) which provided linen and TV. This was the start of making self-contained accommodation more professional. Eventually TAA launched the new program and AOA members waited, hoping for a good result.

Ansett got to hear of the success of the package and asked if they could participate and also joined the properties and the tariffs arrangement.

Towards the end of the AOA they had about 96 properties on the package and after many years it included all the bigger properties of the time such as Golden Gate, Focus and the Quality Inn Group

with Iluka, Chateau, Apollo and Surfers Century.

The airline package was great for the AOA because it was a producer and the results were that it brought good revenue to AOA houses. The very early package was weekly Saturday – Saturday. It required AOA to rate properties, not a star rating as such, but a property was or was not good enough to be included in this package.

In the very early days of the package, the properties were very small as a property of 10 units was considered a fairly large property. Flats were often a house divided into three fl ats or a high built house would be fi lled in underneath to form a couple of units and members with a desire to be in the AOA scheme were prepared to update whatever was suggested.

The AOA owner was generally also the offi ce manager and was also the maintenance man and cleaner.

Later on as tourism blossomed with the packages and in the 1980s and 90s as management rights came into being, the name was not really

related to the general type of business and slowly, the smaller owners disappeared. In the meantime, AOA central reservations letting pool for the owners was improving immensely and this partnered with the air package, made the AOA the organisation a pioneer. As management rights became more popular and these could supply more beds, the air package became stronger and right up until the end of the existence of the AOA, both airlines would come to AOA each year to get the pricing for their following year’s package.

The properties now represented nearly every major building on the Gold Coast with membership of 120.

But change was in the air and the smaller “fl at owners” were gone and management rights became the new way of life and business. ■

02 resortnews | february 2015

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ARAMA | industry profile

ARAMA going forward in the 21st century

Management rights have been operating for 40 years and have grown rapidly along with the community and strata title industry and the management rights sector as a result developed a significant operating track record.

As a regulated industry, management rights in the 21st century operate in a diversity of residential and holiday complexes in strata and community title properties. Management rights provide an effective way for a strata title property to operate when a significant number of units are owned by investors who want to maintain an active role in the operation of their investment.

Management rights are operated by a resident manager who:

• has a caretaking service contract with the body corporate

• has a letting authorisation with the body corporate to conduct a letting business

• owns a unit in the building (or leases a suitable unit)

• is a member of the body corporate (if they own a unit)

• has a significant financial investment in the scheme and therefore has an incentive to ensure the scheme operates well

• maintains an office on site, either on title or with exclusive use on common property

• operates a letting business and acts as letting agent for those investor owners who choose to use the service.

The letting business operates under the Property Occupations Act 2014 in Queensland or in NSW under the Property, Stock and Business Agents Act 2002.Letting matters are not body corporate business, as they are not covered by the relevant body corporate acts and are not business items for body corporate meetings.

Queensland has 43,242 schemes with 405,102 lots (up 2.9 per cent since June 2013), that are subject to the Body Corporate & Community Management Act 1997 with 7.5 per cent of these in the accommodation module and 4 per cent in the commercial module with more than 2000 schemes having a management rights contract with a resident manager. These schemes include approximately 90,000 units and have a significant proportion of investor owners.

Management rights operationsIn specifying the characteristics of the scheme, the developer – as the initial investor - decides the type of development that will suit the demands in the market such as is the scheme likely to attract owner occupiers, holiday guests, corporate clients requiring work-related short-term stays, investors interested in long term rentals, student accommodation or mixed use options.

When the concept is determined, the developer decides how the scheme will operate and should the scheme be directed at the investor market rather than owner occupiers, the developer may decide that management rights will be part of the scheme.

That decision is made before any lots are sold, thus, each potential purchaser knows that the expense and benefits of a resident manager will be part of the levies.

The purchaser also knows that someone on site will attend to caretaking and security matters and will have an interest in the process for selecting tenants

in a complex with long term letting or in attracting guests in a holiday scheme or corporate clients needing short term accommodation. The dynamics of development over the years have resulted in a diversity of projects, including billion dollar mixed use high rises and whole communities.

The early decision by the developer to address disclosure requirements is one component for the contract being set in place before units are sold. The incoming resident manager needs time to set up the scheme and work with the developer to ensure facilities are appropriate and their care and maintenance are understood. Like the developer, he must assess the risk associated with what is essentially a greenfields project.

The term of the contract must reflect the financial requirements that include not only the purchase of the business and property by the resident manager but also resources including the office fit-out, computer systems for trust account and guest bookings,

staffing requirements and training and a marketing program so that potential guests know of the property when the property is ready to trade. Those owners who suggest that the resident manager should not be appointed until after the complex has been completed have not had regard for the objectives of investors. Investors cannot wait for a manager to be appointed after the building is completed before any planning commences on the operation of the building as these investors would have no income during this phase and a much slower increase in their income.

Where the scheme attracts owner occupiers and not investors, the position is quite different and a caretaking contractor appointed after the complex is completed may be a more appropriate choice than a resident manager. Potential owners must review these issues before they purchase to ensure that the contracts that have been put in place by the developer will meet their objectives.

At times we hear of owners who have purchased a lot in a building that does not satisfy their objectives. Unfortunately these owners have been known to cause disruption and try to destroy the contracts that are in place for the majority of owners rather than recognise that the owner should sell, move on and select their next purchase with greater care. ■


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As a proud life member and a longstanding supporter of ARAMA, John Mahoney congratulates ARAMA on its outstanding contribution to the management rights industry over many years and encourages all managers to become members of ARAMA.

"...Where the scheme attracts owner occupiers and not investors, the position is quite different and a caretaking contractor appointed after the complex is completed may be a more appropriate choice than a resident manager..."

industry profile | ARAMA

The key role of today’s resident manager – a people businessThe two main functions of the resident manager are caretaking, which includes managing the physical asset of the owners and the letting responsibilities.

The caretaking function may be a “do it all” contract or, it may involve supervising employees or contractors appointed by the body corporate. After the scheme has been operating and the caretaking work required has been better understood, it is often a great benefit to all parties if the duties can be reviewed and defined.

The BCCM Act provides for a review of the functions and powers as well as the remuneration provided in the contract and sets criteria for the review. The purpose of the review is defined as helping the parties decide if the terms are currently fair and reasonable and to address the issues if necessary and is carried out three years after the commencement of the scheme.

A successful and harmonious building will have clear objectives of the standard and extent of the work to be done as part of the caretaking contract.

Management rights are about people – it is a people business.

At times the role has been described as “unit manager” or “building manager” but these terms fail to embrace the work involved and the benefits that the resident manager can bring to the scheme and to all stakeholders. The role of the resident manager goes further than the caretaking and attending to building matters. It involves good communications with all stakeholders.

Commonly the resident manager monitors by-law breaches on behalf of the committee but the BCCM Act requires that the committee cannot delegate the responsibility and the resident manager has no authority to issue a breach notice. He can only act as instructed by

and on behalf of the committee.

The resident manager is licensed to act as agent for investor owners who choose to appoint him as agent. The letting activity is quite separate from the body corporate activities and is administered by a different Act. The resident manager does not have a letting contract with the body corporate but an authorisation to operate a letting business.

There is no provision in the legislation for any issues concerned with the letting activities to be discussed at a body corporate meeting except for the transfer of the authorisation or matters related to the Code of Conduct under the BCCM Act.

The resident manager is responsible for setting the tariffs that are based on tariffs being achieved in the area. The RM will promote the property as an entity, thus guests and tenants have many choices and have many and varied requirements.

The presentation and facilities at the property and the location in relation to other activities and attractions are all part of the decision processes used by potential guests and tenants. Holiday guests frequently want to inspect several units before making a decision. All want “value for money” irrespective of the part of the market that the property addresses. Particularly in holiday schemes, the marketing of the complex is a key component to the success of the investment.

Each owner and the resident manager have made

an investment in the scheme and much of the success of the investment for both depends on the marketing and the commitment to foster repeat business and word of mouth recommendations.

Clearly the industry continues to provide a very important commercial role in the diversity of managing the day to day growth and issues of density living and will continue to be an integral and driving force in ensuring that the growth of community living in Australia is responsibly managed by a group of experienced people with a distinguished history of industry growth and commitment, focussed on delivering outcomes for the benefit of all stakeholders.

Management rights will continue to be a growth industry as part of the lifestyle trend of modern Australia as empty nesters move to modern community living environments and we address the insatiable desire of Australian tourists to travel and have holidays. Today’s independent resident managers are increasingly committed professionals, with a strong commercial commitment to their owners and to the business operations as managers and advisors. They are accountable through strict legislative requirements and report regularly to their clients on performance and opportunities.

Griffith University research into satisfaction levels with various management models shows clearly that complexes with an independent resident manager provided the highest satisfaction level among investors

who want some participation in their investment and some control over the major decisions while leaving the operating details to a resident manager who will look after their interests.

While the legislation must address the continually changing challenges of the industry, the skills of the resident managers must address these changing demands. The survey results provide strong support for the concept of an independent resident manager.

The industry still has a significant role in the overall education program of the industry as a whole.

Currently too many investors are unaware of the complexities of the strata and community title legislation and we share the Queensland government’s recognition that there is a need for continuing education so that all parties understand and feel comfortable with the laws and regulations controlling their properties, their living conditions and their investments.

Ownership of strata and community property brings with it responsibilities that are more extensive than living in a house. These requirements do not suit everyone as there is a need to work with others who share a role in the complex – a need to respect those other investors and stakeholders.

The management rights industry will continue to grow as more and more Australians embrace the lifestyle and understand the benefits of living in high standard accommodation, with somebody else responsible for mowing the lawns, raking up the leaves and ensuring that good maintenance means their asset is well protected.

Interestingly, the model that has been developed in Queensland during the past 40 years is being adopted internationally in new schemes in Asia and the Pacific. ■


"...Management rights are about people – it is a people business..."


Taking on the national presidency

State, national and Sunshine Coast president of ARAMA, Eric Van Meurs is enthusiastic about finding ways to support the management rights industry.

On behalf of ARAMA he networks with managers, educating and training industry professionals to provide them with the “best insurance” they can have. He is an invaluable asset to any team.

“Providing education is exciting and offers a chance to network with other managers and to challenge and support each other.”

Someone who likes to take on challenges, Mr Van Meurs became president of ARAMA just 12 months after joining the Sunshine Coast committee. He also purchased the management rights to Atlantis Marcoola on the Sunshine Coast just five months

after emigrating from Canada. Mr Van Meurs explains that he moved to Australia in 2010 after becoming fascinated with management rights. Prior to this transition, he had worked with the YMCA as vice president of asset management.

At ARAMA, Mr Van Meurs enjoys the fast-paced routine as he works tirelessly with guests, owners and other professionals.

“Working with ARAMA takes it to another level,” he added.

The association is particularly intent on networking and operating collaboratively with other professionals within the industry. Mr Van Meurs suggested a vital reason for this. “We have all invested in management rights and so have a significant interest in seeing how the industry will grow.”

The ARAMA volunteer team is one of the things about his work at ARAMA that Mr Van Meurs loves the most. He told Resort News that watching how hard they work and how dedicated they are to the industry is something he most admires.

He also enjoys addressing the industry on behalf of ARAMA, describing it as a “tremendous challenge” that he relishes. In the five years since joining ARAMA,

Mr Van Meurs said he has seen it evolve within a growing industry to steadily become more and more influential as an advisor within the management rights world.

Early on in 2015, ARAMA will be adopting a new corporate governance model to become a national entity. This is something close to Mr Van Meurs’ heart as “taking that initiative forward is vitally important”.

Looking forward to the year ahead, he added, “A forum has been set up for members and non-members to shape the governance model. It will then be presented to the membership for ratification.

“The aim is to grow our membership and our corporate partners as this will allow ARAMA to grow and become more financially sustainable.” ■


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The front desk of ARAMAMembership services officer Tina Turner is the first person members reach when they call, email, submit a help-desk ticket or come to an ARAMA Accommodation Group function or event. She is an invaluable contact within the management rights industry.

Ms Turner joined ARAMA in August 2013 after completing a justice degree at QUT. She has experience working for non-profit organisations and nurtured a hospitality background. As well as working for the Student Guild at QUT, Ms Turner also enjoyed her seven years spent with the Aspley Rugby League Football Club, employed at the Aspley Leagues Club.

Tasked with providing a gateway to the industry for members over the phone, via email and via snail mail, Ms Turner recruits and retains a solid membership base for ARAMA, working to ensure the organisation’s longevity. Making a concerted effort to greet everyone who comes through the office door, Ms Turner uses her knowledge to point members in the right direction.

She said, “Not that my knowledge of management rights runs too deep but I am able to point them in the direction of someone that can help or if they are new, someone that can welcome them into the branch and introduce them around.”

Ms Turner was also a key decision-maker in the process of creating the new website ARAMA built for its members, which she also maintains. “I edit, create new content and take on suggestions to improve use of the website by making it more user-friendly.”

Rather than stay cooped-up in an office all week, Ms Turner enjoys dealing and communicating with people. She believes this is because she comes from a hospitality background, “My favourite part is getting out and about and meeting members at the functions and I’m starting to get familiar with a great deal of the members.”

More recently, Ms Turner became involved as MC for events. “I was nervous to start but I am getting better,” she said. As part of the ARAMA team, Ms Turner has been able to enjoy many aspects of the industry she may not have otherwise known about.

“I have been able to get about and see some lovely parts of our Sunshine State that I probably wouldn’t have got around to otherwise. It’s also good to get to know the different attitudes and personalities of the different branches.”

In this busy but laid-back industry, Ms Turner feels she has learned a lot since arriving at ARAMA. Her perception has evolved over the last eighteen

months. “I didn’t realise before but most of the accommodation that I have ever previously stayed in was probably part of a management rights building.”

More than anything, Ms Turner is looking forward to seeing ARAMA expand around the state and country as it grows with the housing boom. “We are

looking at expanding as people are contacting us and letting us know that we are needed in new areas.”

She is also excited about finding new corporate sponsors to build relationships with, and to help create bigger and better events for her ARAMA members in 2015. ■


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industry profi le | ARAMA

ARAMA web site services members’ needs

One of the major projects recently completed by ARAMA has been the development of a new web site to meet the increased information demands for members and their staff.

The redeveloped web site provides a range of new additions to the key services provided by the exclusive member’s library and the members’ discussion forum.

The members’ only library is now an information portal to management rights specifi c legislation, regulations, updated forms, tools and industry updates to provide an essential resource to the daily running of a management rights business.

“Members are able to log in via their individual passwords to access the gateway to the various industry specifi c information including the downloading of editable documents required under the new POA legislation,” ARAMA CEO Trevor Rawnsley said.

“The comprehensive members’ library has been updated and continues to be expanded to ensure members have all operational information and down loads necessary to manage their operations. Members now have direct access to relevant industry requirements from the Offi ce of Fair Trading, the Commission of Body Corporate Management

and the Residential Tenancies Authority via the web. Other key industry contacts are also provided on the comprehensive data base as well as general industry updates.

“Members are aware of the support given to ARAMA by our lawyers panel and these professionals provide updated matters of industry interest to

the library resources,” he said.

The new web site also provides a full guide to events delivered by ARAMA with an annual calendar listing the current event schedule throughout Queensland but this is subject to addition as events unfold. There are also links to all the ARAMA preferred suppliers who continue to support the

association and its members with comprehensive services.

The ARAMA shop on line facility allows members to purchase our range of registration cards and trust account receipt books.

The web site also provides for on line membership application and renewals- with full details on requirements for easy service.

“The members’ forum continues to play an active role within the industry as members regularly exchange advice and raise issues seeking advice from colleagues on their real life experiences, “Trevor Rawnsley said. “Each year some 1500 industry and housekeeping issues are raised and debated on the member’s forum and I urge all members to visit the site regularly to ensure that they are across emerging trends, problems and issues that affect resident managers on the ground.

“It is one of the most valuable resources for those in the industry and many a problem has been solved through the forum online debates and conversations,” he said.

Mr Rawnsley said that the website is regularly updated with industry news and issues placed on the site under the “media” tab that includes news, media releases and ARAMA annual reports. ■


Stephen ShirleyB Comm, FCA

Due Diligence, Audit, Projections

T 07 5456 2991F 07 5456 1992 M 0400 644 473

E [email protected]

"...The members’ forum continues to play an active role within the industry as members regularly exchange advice and raise issues seeking advice from colleagues on their real life experiences..." – Trevor Rawnsley


Legislative review of BCCM this year

The Body Corporate and Community Management Act will be under review by Queensland’s new state parliament this year and ARAMA will be preparing submissions to the legislative review process.

The review process has commenced at the first of three consultation papers has been prepared and released for comment as the Queensland University of Technology review team has released its Property Law Study issues. These include issues relating to by-laws, recovery of body corporate debts and termination and redevelopment of community titles schemes.

Two further papers are to be released-the next document will examine the administrative and procedural issues under the new act relating to a range of matters including general meetings, the body corporate committee and dispute resolution.

The third paper to be released in a further stage of the review will consider the possibility of a transition to the Body Corporate and Community Act 1997 for community titles schemes regulated under the Building Units and Group Titles Act 1980.

ARAMA is preparing a submission to address the first paper review that includes major operational issues of concerns for resident managers. These issues include recommendations in regards to onsite parking and its ramifications, the position of pets in density living complexes, the issue of smoking in all areas of the complex and questions concerning parties and overcrowding.

All these issues have attracted some significant community debate over many years.

The other property law study will review the whole question of by-laws and their enforcement in terms of practical administration and debt recovery

within the complexes. Already, the QUT study group have published review papers on the seller disclosure regimes in Queensland and the contentious issue of setting and adjusting lot entitlements for Queensland community title schemes.

“ARAMA and its legal panel are reviewing the issues in detail and will be providing submissions to the study group, which will then present its recommendations to the Queensland Government who will then finalise the preparation of new amending legislation. It will then go before the State Parliament and its process of assessment of legislation which will afford further opportunity for submissions from interested groups and individuals,” CEO Trevor Rawnsley said.

“In the past ARAMA members have been very involved in the legislative review process and we will continue to ensure that members have access to the published material and be involved in the preparation of the ARAMA submissions to the various aspects of this significant landmark review of our legislation. We will continue to keep members, and through them the owners of properties, informed on the progress of the legislative program.

“Last year we were able to realise important outcomes for the industry through the passage of the new Property Owners Act which was part of the red tape

reduction review program which saw the repeal of the old Property Agents and Motor Dealers Act.

“The continuing growth and diversity of the density living property industry requires ongoing review and the involvement of ARAMA members and their

practical understanding of the operational process is a vital element to the development of good workable legislation.

It is another busy time for ARAMA to ensure that we remain active in all stages of the review, “he said. ■


Continuing our 24 year commitment to the founding and continued success of ARAMA

"...We will continue to keep members, and through them the owners of properties, informed on the progress of the legislative program..."


A tribute to ARAMA

An ode to ARAMA

I wrote in an article in 2009 that it would be difficult to imagine where the management rights industry would be today had it not been for the involvement of ARAMA and its precursor, QRAMA.

Those comments are even more pertinent today and as I again look back at some of the issues they have had to battle over the past five years, it is even more apparent how fortunate the industry is to have had such great advocates.

It is a source of frustration to me, and I am sure even more so to ARAMA, to hear resident managers make comments like “I was thinking of joining ARAMA but could not see that it would be of any advantage to me”! As many managers will attest, that is far from the reality. Let me say that without the involvement of ARAMA, your business would be nothing like it is today.

Regrettably many resident managers do not see or do not want to see just how much ARAMA does behind the scenes for not just its members but for all resident managers. The following are just some examples of the achievements of ARAMA in recent years:

• Extensive lobbying for the changes introduced in the Property Occupations Act to the requirements for resident letting agents licensees including the removal of the requirement to live onsite and the capacity to have a licence for multiple buildings wherever they might be located;

• Input into the new PO form 6 and liaising with the OFT in relation to ARAMA’s addendum to the form 6;

• Substantial input into a recent OFT release clarifying the obligations of resident managers when receipting

payments where there is uncertainty if the funds need be deposited to the trust account or general account;

• Submission of a comp-rehensive response to changes to the management rights provisions of the body corporate and community management legislation proposed by opponents of our industry; and

• Providing financial support for the Victorian Court of Appeal action against a manager over the use of a class 2 building for short term letting, probably one of the most important victories for our industry in the past decade.

There are many more examples, not to mention the many times that ARAMA has funded the litigation costs of members to fight a battle that affects the industry generally.

Every indication is that

ARAMA will be busy going into battle for the management rights industry well into the future. Unfortunately there are a group of unit owners out there who are determined to see the management rights industry as we know it destroyed. While they represent a tiny minority of unit owners, they do make a lot of political noise and will not abort their crusade despite the successes that the industry has had, due almost entirely to the role played by ARAMA.

It is on the credibility front that ARAMA is to be applauded.

As an example of that credibility, ARAMA is regularly consulted for its view on proposed legislative changes being considered by the state government well before they are made public. The credibility that ARAMA has built with the state government has not come about overnight. It has been achieved over many years of well planned

I am still astonished as I bounce around the management rights community to find people that have invested heavily in management rights, or make their living from it (as I do), who are not members of ARAMA.

Some of those people can be quite vocal as to why they are not members.

Any organisation comes with its issues. Schisms, splits, laziness, indulgence, skullduggery. Sort of like what happens with body corporate committees. Or large law firms. Those things happen. They will always happen.

Irrespective of that, ARAMA is the only body standing between the management rights industry and the opponents of the management rights industry.

And there are some quite vocal opponents at times.

You might have a sour taste in your mouth with ARAMA for some reason. Perhaps you had a bad experience a few years ago with an ARAMA committee member. Maybe you didn’t get the returned phone call you wanted. Maybe an ARAMA staffer couldn’t give you the advice you wanted.

That doesn’t mean to me that you should not contribute by being a member of the only organisation that will actively seek to prevent the anti-management rights brigade from hurting the management rights industry.

We had an ARAMA group meeting a few weeks ago to help collate ARAMA’s response to the latest BCCM review paper.

Six lawyers (notionally in competition with each other) all in the one room with a common cause, which is supporting the management rights industry.

Only ARAMA could facilitate that. It wouldn’t happen without it.

I personally think that any person who owns a management rights business should be an ARAMA member.

That comment applies equally to service providers who make their living (or a substantial part of it) from the management rights industry. Those that don’t support ARAMA leave the burden of protecting the management rights industry only to the paid up members.

Strength is in numbers. The government listens to numbers.

Our firm is a fully paid up member. We are quite proud of that. The services we provide to ARAMA are free.

That is a little way for us to give back to the industry which is obviously a fairly large part of our legal practice. We are not Robinson Crusoe in terms of our contribution to ARAMA. All of the lawyers on the lawyer’s panel do their bit.

The benefit of ARAMA as an organisation was quite clearly seen in the recent Property Occupations Act amendments which is something that, but for the involvement of ARAMA over many years, simply would not have happened the way it did.

The legislation and forms were changed through ARAMA’s intervention to help management rights owners.




John Mahoney, Senior Partner at Mahoneys and Life Member

of ARAMA

Stabilising the legal and practical basisWhen our fi rm fi rst assisted a group of building managers to form ARAMA (then called QRAMA) back in 1990, the main reasons for its existence were twofold.

First, there had been a progression of legal attacks in the courts against management rights where a particular solicitor was testing the uncertainty of laws and there needed to be a united front of building managers to raise funds to cover the legalities. Secondly, there was a need for an industry voice to present the strengths and needs of the industry to the government to stabilise the legal and practical basis for the industry to develop.

Our fi rm stepped in to assist John Gardner, Dave Ruxton and many others in the industry to form the organisation and assist it to raise money to fund the litigation in the Surfers Palms North case that went on to become a High Court battle concerning the powers of a body corporate to enter into contracts for caretaking and letting arrangements.

It is very pleasing to see how the industry organisation has built upon that early formation activity to produce a national group that is so well respected and received in areas of government and commerce. It effectively grew out of a nucleus of strongly committed operators on the Gold Coast and quickly established its credentials, taking over from the previous Accommodation Owners Association. It also achieved a separate voice to the REIQ Management Rights Chapter, which Dave Allen had pioneered when he was its president.

There have been many issues where ARAMA has been able to properly present to the Queensland government and the federal government logical argument and practical arrangements which have ensured continuance of the commercial and legal principles needed for management rights as an industry. The two main areas that come to mind are the

responses to the Queensland Government Green Paper with the subsequent departmental committee work to produce the Body Corporate and Community Management Act from 1993 to 1997 and then the activity with the federal government and ASIC to make the Managed Investments Act provisions workable for management rights in 2000.

There have certainly been interesting times which leads me to recall many trips to Brisbane, many meetings with politicians and department heads as well as even a trip to Canberra to explain the industry to Joe Hockey as minister for fi nancial regulation under the Howard government. My legal fi rm never hesitates to provide an involvement to ARAMA to benefi t its members and the industry because we know the importance of the work it performs.

There are always activities for our involvement from considering legal needs of onsite management through to providing information sessions to members or expanding branch involvement. Bigger picture issues involve attempts to have a national presence whilst fostering branch activity and membership.

Members today see a well organised, well-funded and well respected organisation and I am very proud to have been part of the organisation to achieve what it is today. ■

John Punch, Partner, Short Punch & Greatorix

Life Member & Gold Coast Branch Committee Member

and well presented submissions to various government departments and ministers. ARAMA has demonstrated a solid understanding of the issues and a willingness to negotiate a fair and balanced outcome, unlike our opponents who peddle extremist propaganda and have no concept of a balanced outcome.

Our industry will continue to come under attack. There will be new governments, new ministers and new bureaucrats, not involved previously, who are hounded by these extreme interest groups to curtail management rights. We will face fresh arguments and debates that we will have to defuse. Only a strong and credible ARAMA can do that.

I congratulate ARAMA’s CEO Trevor Rawnsley and all of the active offi ce bearers on the way in which they have continued ARAMA’s long history of representing, protecting and promoting our industry. I have no doubt that you will continue to do

so but I recognise that you need sound fi nancial resources to be able to do that.

I urge every resident manager to join your local ARAMA branch and wherever possible to take an active role in that branch. ■

And there is more legislative change on the way. The balance of the Body Corporate and Community Management Act amendments. The next attack on the tenure of management rights agreements, which seems to happen at least every fi ve years or so. The review of the Property Occupations Act regulations. Of course, on top of those, there will be various policy positions taken by government departments and the Offi ce of Fair Trading which could impact adversely on management rights owners.

Everyone needs to chip in to make ARAMA viable because without that support, the management rights industry could be left in a very vulnerable position.

Everyone involved in the

management rights industry can do their bit by at least becoming an ARAMA member.

You can contribute more to the organisation if you have the time and the inclination, but an ARAMA membership is at least a very good place to start. ■

Frank Higginson, Hynes Lawyers

ARAMA recognises the very practical assistance that our Corporate Partners provide for our industry, our association and our members. We ask that you fully support our Corporate Partners in a show of appreciation for their support to us. ARAMA is very grateful to our growing band of of� cial State Supporters; Holmans Accounting, MR Sales and RAAS Rights. ARAMA is also very grateful for the ongoing support and encouragement of our members, all of whom are investing in the continued success of the Management Rights industry everywhere. The future looks bright for ARAMA and we are really looking forward to a positive year ahead for the management rights industry

Membership enquiries phone: 07 3257 3927Email: headof� [email protected] Website: www.arama.com.au

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