Push for change in Gold Coast Body Corporate management industry

Body corporate residents sick of mismanagement of their hard-earned money are calling for oversight of the state’s 49,000 strata schemes, with hundreds signing a petition.

BODY CORPORATE residents sick of mismanagement of their hard-earned money are calling for oversight of the state’s 49,000 strata schemes.

Strata Owners Speak Out (SOSO) organiser Julie-Anne James has launched a petition to put a stop to what she believes is prevalent abuse and mismanagement in the industry, estimated to be worth around $300 million a year in Queensland.

The petition which has 750 signatures to date calls for regular auditing of financial records put together by body corporate managers who can be in charge of sinking funds worth upwards of $4 million a year.

“Body corporates are essentially a fourth tier of government for half a million people living in schemes in the state, and yet there is little in the way of financial oversight,” Ms James of Merrimac said.

“A body corporate manager is essentially employed by the body corporate committee to manage their money, but can come into the role with no training whatsoever.

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Julie-Anne James at her Merrimac home, ready to petition calling for more regulation in the industry. She is the head of Strata owners speak out. Picture Glenn Hampson

“Without regulation by the Queensland Government and without some form of discipline owners funds are at risk, and the industry is open to abuse.”

“There are multiple schemes where this is the case.”

“Right now body corporate managers are only accountable to volunteer committees who often have an inadequate knowledge of the laws themselves.”

“When there are questions raised about the management you either have to have been a member of the body corporate committee with power, or launch a dispute with the BCCM (Body Corporate and Community Management commission) for something to be done or if you have concerns.

“There is nothing in the way of proactive oversight.”

The petition also calls for licensing, registration and financial training of body corporate managers.

“This is particularly important for the Gold Coast which has the highest concentration of strata groups in the state,” she said.

“Someone with no experience could be put in charge of millions overnight, and have little accountability for where the money goes.

“We want to see body corporate managers have the same level of scrutiny that lawyers and real estate agents face and be subject to regular auditing.

“There are horror stories of money being put aside for projects, only for the projects not to be completed but the money is gone. That is not to say there aren’t some incredibly responsible people in the industry but one bad egg can do a huge amount of damage.”

The Bulletin has previously covered a number of disputes inside Gold Coast strata communities like the Q1 and Chevron Renaissance.

In response to a similar petition in September, then-Attorney-General Yvette D’Ath

said there was merit in the Government considering options for increasing regulation of body corporate managers in the future.

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Former BCCM Commissioner and now Hynes Legal Strata Adviser Chris Irons said a push for more regulation is generally supported, but argues owners are not without resources when it comes to disputes with their body corporate managers.

“A vast majority of managers are really professional and we would agree there is absolutely room for that professionalism to be enshrined in regulation,” he said.
“I am yet to meet a body corporate manager who doesn't want some kind of regulation for things like education and continuous professional development because things change so quickly in the industry.

“I do however think there is a lot of ability for owners to exercise oversight in the current system.

“If you are spending $300,000-$600,000 on a unit or more, why not devote a couple of hours each week to protecting that investment by ensuring the right strata decisions are taking place.

“Owners need to exercise oversight and there are numerous checks and balances build in, the onus is on owners to protect their investment.”

Body Corporate battle: Gold Coast resident forced to remove lion statues

TWO large Chinese lion statues have been given the boot from a gated Gold Coast community following a year-long dispute over their placement.

Residents of Isobel Terrace, a community in Pacific Pines, have won their battle to have a collection of statues in the front and back yard of their neighbour Karen Williams removed.

The group of 11 residents said they were unhappy with the look of the concrete carnivores and raised concerns about their safety risk.

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Gold Coast body corporate dispute over Chinese lion statues out the front of their home in the Isobel Terrace State at Pacific Pines. Photo: Scott Powick Newscorp

“The statues are visible to residents, are not in keeping with the aesthetics of the complex,” was the claims put forward to the state watchdog, the Body Corporate Community Management commissioner (BCCM).

The committee also made a claim that an air conditioner installed at the front of Ms Williams’ home should also be moved.

“There is concern that if the matter goes unresolved, it opens the door for others to install air conditioners and statues on common property, making the complex untidy and causing friction between owners,” the decision read.

Ms Williams who purchased the complex last year argued that a number of the statues were in her back garden and could not even be seen by residents who made the complaints.

She also claims the gardener had no problem with their placement. Despite the arguments put forward Ms Williams last month lost her battle and has been given directions to move both the statues and her air conditioner.

The BCCM adjudicator said they had sympathy for Ms Williams but the body corporate were within their rights to ask her to move the items.

“The body corporate has acted reasonably with respect to enforcing bylaws against her, including in seeking to resolve by-law issues with her before making application with this Office,” the adjudicator said.

Originally published as Push for change in Gold Coast Body Corporate management industry