We Need More [and More] Strata Pros
Or, a guest writer's strata musings ...
In today’s guest-writer article by Chris Irons, he argues that applying ‘professionalism’ to all strata stakeholder groups to improve their awareness, knowledge, and competence is the solution to better strata outcomes to meet the increasingly complex and multi-dimensional challenges facing the sector.
[6.25 minutes estimated reading time, 1262 words]
Introduction
From time to time, I publish articles from guest writers who have different perspectives and ideas on strata issues to expand and challenge our thinking.
I hope you enjoy today’s article.
October 05, 2023
Francesco …
FROM PROFESSIONALISM, GOOD THINGS COME
by Chris Irons
Sitting in a stuffy meeting room late on a Friday afternoon recently, with a concerned committee and strata manager, talking about a drug-addled occupier of a strata scheme, scared neighbours, ineffective police actions, and what to do about it all, a thought occurred to me: just who is getting paid to handle this type of thing?
Well, me, obviously. And yet, did the strata manager (who I knew well and who I also knew to be particularly good at their job) really sign up for this level of human-social-strata problem-solving? Did the committee, comprised of well-intentioned retirees trying to maximise their investment in the face of a very real, very challenging societal issue, imagine they would spend their free time this way? None of them were getting paid for the privilege.
As we went through the logical and obvious solutions (by-law review, by-law enforcement, engaging with the owner) and then the more left field (security guards, petition to the local MP), I started to appreciate this had ceased to be a strata issue. Instead, it was an exercise in trying to feel productive in the face of futility. One committee member said they had it on good authority the occupier in question simply moved from place to place, creating chaos in their wake for each strata scheme to clean up. ‘If we wait a year or two, they’ll move on and so can we,’ they said.
This is not what legislators had in mind when they decided that strata laws would be framed in terms of owners running things and making crucial decisions about the strata scheme. The strata sector has evolved (or regressed, depending on your viewpoint) to playing whack-a-mole with myriad issues it could never have anticipated and simply cannot be expected to holistically deal with in a coherent way. We have seemingly reached a point where because something happens in, near, or in relation to a strata scheme, it must be a strata problem to do with. That spells danger for owners, committees, managers, caretakers, service providers, and others: it means increasing costs, time, emotional toil, and reputational damage, with each successive minute or email another record in the public domain and with the potential to negatively impact on property values.
Time, then, in our view, for a rethink. Or rather, a radical shift. We have heard much from the strata management sector in recent years about a desire to be seen as professionals and performing as a profession. That is to be commended, and yet it does not go far enough. All of strata needs to be professional. Strata schemes are akin to companies. The committee is the Board, in some cases managing budgets of millions of dollars, and being asked to make incredibly complex decisions about property management, insurance, administrative issues, and finances. While there are many resources and providers who can support and assist, the decision still remains with the committee or the owners – and this, in the context of strata legislation where voting is not compulsory and committee participation is as simple as putting up one’s hand at a meeting.
We need professionalism in our strata schemes, starting with committees. Strata schemes should be able to decide to appoint a professional committee or committee members. If there is a retired former director of BHP living at the scheme who has 20 hours a week to spend on strata business in between rounds of golf, then for God’s sake, let’s enable the strata scheme to appoint and properly remunerate them to do just that. Let’s enable a strata scheme in which all the owners have busy, full-time jobs (and lives), the right to elect to have their committee duties handled by another entity that is qualified and able to execute the role and give those owners peace of mind. Let’s mandate training for committee members and let’s start introducing real consequences for those committee members who do not take the role seriously (remember, the literal meaning of ‘committee’ is one who commits), including term limits, expulsion from committee membership for time-limited periods or even financial penalties for the most egregious of poor performance.
While we’re at it, let’s get professionalism happening with owners too: let’s require them to do a basic online course before the contracts settle, in which they understand that, yes, being a strata scheme requires them to cough up regular financial contributions and seek approval to do things. Let’s do the same for occupiers (tenants) and let’s also allow suitably-qualified, long-term tenants, who show a real engagement with and participation in the scheme, and the ability to sit on the committee and make meaningful, constructive decisions.
Strata manager professionalism takes a different path. Regulation is different in each jurisdiction and should be mandatory throughout the Commonwealth, focussing on continuing professional development, transparent disclosure, good character, and real consequences for poor performance. Better professionalism also means a more appropriate commercial context, which in other words means the practice of a one- or three-year contract (as happens in Queensland) needs to change: let’s give the manager greater incentive and framework to demonstrate their wares and show value to clients. Most of all, let’s empower strata managers to really show what they can do. No longer should a strata manager be a passive recipient of instructions from an equally ambivalent committee. Legislation (and professional indemnity insurance) should enable strata managers to properly advise their clients, encouraging more prolific and thorough risk management. Additional and specialised training in areas such as conflict resolution should become a more recurrent feature of the strata manager’s professional development.
Perhaps when we move towards this standard of ‘professionalism’, we will find strata schemes feeling far more empowered, and confident, in dealing with the most complex parts of their suite of responsibilities.
In a utopian version of the world, this approach would see my services cease to be relevant.
That would be disappointing (although I would enjoy the novelty of doing something else) yet ultimately so much more rewarding, and cost-effective, for governments, owners, and managers alike.
About Chris
Chris Irons is a thought leader for the strata sector. For over 5 years Chris was Queensland’s Commissioner for Body Corporate and Community Management, the only role of its type in the world. Chris is the Director of Strata Solve, a strata consultancy focused on dispute resolution, dispute prevention, and protecting strata investments through practical solutions and problem-solving.
For over 2 decades, Chris held senior roles in Queensland’s public sector. Chris has an Honours degree in Communications, is an accredited mediator, well-known public speaker, and commentator on strata issues. Chris is an independent operator, not aligned with any other entity, and not a legal practitioner or strata manager.
Chris is human slave to a happily retired racing greyhound named Ernest. Ernest has all the necessary strata approvals.
Get in touch with Chris at the Strata Solve website or by email.
