A Call for Higher Standards in the Strata Industry

Recent developments have brought some uncomfortable truths to light within the strata management industry. While these revelations have cast a shadow, they also offer an opportunity to reaffirm our commitment to ethical practices and call for greater scrutiny where it is needed most.

Unfortunately, there are some in our industry whose practices have not aligned with the level of transparency and fairness that clients deserve. While this may not represent the entire industry, we are aware of the damage it causes to those of us working tirelessly to uphold the highest ethical standards.

At our company, we take pride in doing things the right way. We do not hold shareholdings in any other company servicing strata, whether that be insurance brokerages, maintenance contractors, or other strata firms. We do not base our teams remuneration on the charges they enter for Additional Services/Schedule B’s (one of the few in the industry who do not) This ensures our focus remains solely on serving our clients' best interests. While some in the industry rely on undisclosed financial arrangements, we have always been transparent. In fact, we now operate on a fee-based system, ensuring that any previously earned commissions are returned directly to our clients, rather than being retained by brokers or third parties.

We have raised our concerns regarding these underhanded tactics with various stakeholders, including the Insurance Ombudsman, local MPs, State MPs, and the Deputy Premier, as well as industry regulators like the ACCC. Despite some disappointing responses, particularly from the ACCC, we remain dedicated in our advocacy for stronger regulations and transparency in our industry.

Our approach to strata management goes beyond simply fulfilling our legal obligations. We believe in fair compensation for the work we do and have been actively lobbying for a time and motion study, in collaboration with SCA QLD and government bodies, to provide a realistic view of the work performed by strata managers. This would establish fair remuneration and help foster a more competitive and transparent industry, free from unethical financial practices.

Strata management is unlike any other industry. We do not simply act for one client, but for many, often with opposing views. The vote of the majority can sometimes result in decisions that frustrate or alienate others, making the role of a strata manager even more challenging. We are expected to wear many hats; acting as accountants, legal advisors, compliance officers, mediators, and secretaries - while managing the diverse expectations of all parties involved. Our team faces daily frustrations, particularly from clients who may be unhappy with the outcomes of majority decisions, but we remain dedicated to providing the best service possible in what is undeniably a complex and challenging environment.

While our industry is unique in the range of skills required; from legal knowledge to compliance, financial management, and mediation - what sets us apart is our commitment to ethical conduct and client care. We are not perfect, but we strive every day to do better, and we remain dedicated to creating an industry that rewards integrity and professionalism.

The future of the strata management industry lies in addressing the issues that have caused concern and rebuilding trust with our clients. Our goal is to be part of that transformation, working alongside government and industry leaders to ensure that we can all do better and serve our clients with the respect and fairness they deserve.??