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APRIL / MAY 2012 Leadership important for success E L P M A S Special feature: Y L N Innovation inObuilding S the next generation E G A the P skillsTackling shortage Innovative business: products and services to help you Plus all your state information NEW SINGLE NATIONAL EDITION Innovation edition www.stratacommunity.org.au THE SCA BOARD OF DIRECTORS SPECIAL FEATURES Matthew Amber President E: matthew@whittles.com.au P: (08) 8291 2300 National Convention Feature: Industry leaders Sponsor: Colin Grace Lawyers Sponsor: Ausgrid Innovative new buildings Sponsor: CHU Software for strata Addressing the skills shortage Help for your business Tax ruling Hoarding part 2 Customer service: dealing with conflict Pool safety David Morris E: David@8thgeneration.com.au P: (02) 4981 3788 Colin Archer E: colina@agbris.com.au P: (07) 3002 2699 David Binks E: binksdr@yahoo.com.au P: (03) 9438 5485 Mark Atkinson E: MarkA@atkinsonlegal.com.au P: (08) 9221 7033 Erik Adriaanse E: ead@independent.com.au P: (02) 6209 1527 David Ferguson E: david.ferguson@strataplus.com.au P: (02) 9319 1899 Chief Executive Officer: Mark Lever E: mark.lever@stratacommunity.org.au P: (02) 8904 0450 SCA Office 99 Mount St North Sydney NSW 2060 P: (02) 8904 0450 Design & Layout: Synchro Design P: (02) 4396 2228 Print & Distribution: Print National P: (02) 4328 5644 10% NATIONAL SPONSORS 6 7 10 11 12 15 16 18 20 23 26 32 34 REGULAR FEATURES President’s report Chief Executive Officer’s report Best practice Green pages Around the World National update 4 5 24 28 30 36 STATE PAGES National Editor: Jennifer Ross E: insidestrata@stratacommunity.org.au P: (02) 8078 6925 Cert no. SCS-COC-001592 IN THIS ISSUE NSW Victoria Queensland Western Australia ACT South Australia 37 44 48 52 54 55 Classifieds 56 FEATURE: LEADERSHIP Leadership important for success Words by Gabriella Hold Leadership is probably not a concept that is given much thought in the day-to-day workings of a strata management business where getting through another annual general meeting or organising an insurance valuation is often the focus. But as well as good people skills, financial savvy and the ability to multi-task, leadership qualities are not only important for success, but can be sacrosanct to your career, according to strata industry experts. “Leadership to me is probably the most crucial quality to have within the strata industry,” says Queensland industry veteran Ric Culpitt. “All the other qualities may be essential, like financial knowledge, and negotiation skills but underpinning a strata manager should be leadership in all its forms.” Culpitt should know. He has been focused on leadership qualities throughout his career in strata, from setting up his own business to helping establish a registered training organisation (RTO). And now instilling management and leadership values to the students he teaches in the Certificate IV in Property Services (Operations). “I teach about leadership to all the students, because it is an integral part of the course. Every strata manager requires a proficiency in leadership because they are required to have when it comes to communication with their committees and owners corporations,” he said. “We assist [our students] by providing a vision to take their organisation from here to somewhere that they are proud of going, and in all of that, leadership comes into play.” So, what makes a good leader? Culpitt says it is someone “who can get his team to pursue his objectives.” “Leadership comes based on your ability to encourage and induce people in a nice and positive way and get them to follow you willingly,” he said. “As an example of that, I proposed the RTO to the board four years ago. The RTO has grown incredibly with the product on offer and the spread beyond Queensland to the rest of Australia. We are still going through transitional phases but underpinning all of that is the strength of leadership and I didn’t do it on my own, I had other people who I convinced and agreed with me.” Michael Darby, Managing irector of Quantum United Management and winner of the SCA (Vic) Specialist Owners Corporation Manager 2011 and SCA (Vic) Large Scale Manager 2011 Awards, agrees that motivation and encouragement are key to good leadership. “[A good leader] is someone who has really got that power and presence to motivate a team or friends or others to achieve their own goals, it is simply that,” he said. Thus leadership involves not just charisma and technical skills, but a good dose of solid interpersonal ability. Darby notes that leaders need “to be understanding and patient of others.” “You need to keep people interested and motivated, maintaining communication with the team is important and not isolating yourself from them,” he said. “I like to think I lead by example… creating an environment where others feel comfortable to grow and develop their skill set. From my perspective, it is important that I make sure I motivate them to do their best and challenge themselves.” 6 INSIDE STRATA STRATA COMMUNITY AUSTRALIA NATIONAL NATIONAL Feature: Leadership Culpitt agrees. And he says while leaders can sometimes employ specialists to do the more technical areas of their role, they can’t outsource interpersonal skills. “To maintain a happy workforce not only requires sensitivity but understanding and communication,” he said. “They are components of leadership. If you are failing on those fronts, then your leadership isn’t going to be worth much.” Reena Van Aalst, General Manager of Portfolio Management at Dynamic Property Services and winner of the 2011 NSW Strata Industry Awards for Excellence in the category of Strata Manager of the Year, also says a good mix of personal and social skills is vital to leadership. In her eyes, good leaders have the following traits: good people and communication skills, being accountable and leading by example and empowering staff to perform successfully (includes appropriate training and development), being a team player putting the good of the team as a whole before one’s personal agendas/ambitions and having a thirst for knowledge to improve skills and experience. “My leadership style is hands on, face-to-face, situation specific and highly consultative to get the best from my team,” she said. “Good leadership at a senior level, as a member of an executive team, as opposed to the role of being a leader of people who report to me, requires an additional corporate approach that consistently demonstrates support for other members of the executive team as well as supporting and implementing corporate decisions even when one may not personally agree with a particular decision.” What is clear is that there is no straight career path to becoming a good leader, but different career experiences can be invaluable in learning about leadership. Van Aalst graduated from Sydney University with a Bachelor of Pharmacy and Diploma in Business Management (Real Estate Management) and obtained her strata manager’s licence before joining the industry. “I joined Dynamic in 2003, from the position of General Manager and licensed strata manager with a well-known inner city strata firm. I brought with me a strong background in business management and trust account supervision as well as strata and specialist company title knowledge,” she said. STRATA COMMUNITY AUSTRALIA INSIDE STRATA 7 Building innovation The next generation of residential building Words by Gabriella Hold But a number of companies are building new developments that are not only delivering innovative solutions on these fronts, but also at a low cost and with tangible benefits for occupants. One such example is the Square One residential development in Perth, built and managed by local building and development group, Colgan Industries. It is a four-storey project, comprising 35 residential apartments, an office and café, located in the State Heritage-listed MacKay Aerated Waters Factory. It features a number of environmentally friendly and communal living features, such as rainwater harvesting, public art and safety features whilst also preserving the industrial heritage of the site. The development has won a number of awards including the 2010 Master Builders Association award for Energy Efficiency and Sustainability and the 2011 HIA Green Smart – Development of the Year. But Colgan Industries owner Daniel Colgan, said the most pleasing aspect of the development was not only successful in 12 INSIDE STRATA Leighton’s Hamilton Harbour development in Brisbane is one example. It aims to be ‘urban village’ with three residential towers, two commercial, an integrated retail pedestrian strip and an open public park. The first two towers have just been completed and it has been awarded Queensland’s first green star-rated residential building. Incorporating sustainability features and creating better communal spaces is also a key maxim for development group Leighton Properties. It is using its expertise in the commercial arena to pioneer these initiatives in residential projects. “Some of the things we are doing up there on the sustainability front include natural ventilation on both sides of all the lobbies that reduces the requirement for air conditioning and artificial light,” Tonnet said. “One of Leighton’s key strategic objectives as a company is to be a leader in sustainability,” said Gavin Tonnet, National Head of Residential for Leighton Properties. “And all of the water is captured and used, the clean rainwater is used to top up the pool and we collect all the grey water for irrigation purposes and ‘sell’ it to the adjoining commercial buildings.” “The residential part of our business is reasonably new, but our DNA in commercial building is long and deep and we’ve been pretty well awarded leader in sustainability, so we bring some of that intelligence into the residential space as well.” The company is also part of a joint venture to build the Green Square Town Centre in south Sydney - a residential, commercial and general urban project that aims to be a flagship for sustainable development, creating a clean and green community, integrating water management, energy efficiency, good public transport accessibility, the provision of community facilities and long-term economic viability. As part of the development, Leighton is working with the City of Sydney’s sustainability program. “We are working with Sydney City on a green transformer program that would basically be a gas fired generator… and those types of systems reduce inefficiencies and losses in the existing electricity network grid by about 80% and produce a lot of electricity very cheaply.” incorporating a number of innovations in these areas, but that these unique elements had actually persuaded people to live there. “There are a lot of people who say we would never have considered living in an apartment block before, but this is just so completely different. People really love living there and I actually live there myself with my family,” he said. “People have come up and said to me: ‘We were going to live down by the coast and buy a house but we have decided to live here’. That message has been pretty consistent: that it is a really different place to live. Ultimately when you build apartments or houses or office blocks, it’s about how people use them and how they feel there and I think people really enjoy the space.” Putting a face to strata insurance. Square One includes features such as solar panels, a ‘U’ shaped footprint based around a sunken central garden courtyard to maximise the northerly aspect of each apartment, and rainwater harvesting, whereby a tank in the central courtyard collects water from the complex roof, saving approximately 530,000 litres of water per annum from mains sources. “In themselves, if you look at all the technologies in isolation, there’s no rocket science there. But we wanted to incorporate all of the sustainability features but not have them in your face,” Colgan said. In fact, we’ve put over 160 friendly faces into our local branches across Australia. That’s because at WFI, more than 90 years in the business has taught us that personal service from a dedicated Area Manager is something our clients truly value. So if you would like a competitive quote on commercial or residential strata insurance, call WFI, part of Wesfarmers Insurance. Call 1300 934 934 or visit wfi.com.au GC_WFI1162 Residential developments have traditionally lagged behind their commercial counterparts in terms of sustainability and community living features due to regulatory issues, higher costs and the fact that these aspects are often not valued by potential investors and residents. “So for instance, other than seeing an inverter on someone’s wall on their balcony …you really couldn’t tell that all these things were designed in there, and I am pretty pleased that we were able to do that. For instance, people could be standing in the courtyard and not realise that they are standing on a rainwater harvesting tank.” WFI is a trading name of Wesfarmers General Insurance Limited ABN 24 000 036 279 AFSL 241461. Contact WFI for a Product Disclosure Statement to help decide if our policies are right for you. WFI1162_apr_may_june 210x148.indd 1 STRATA COMMUNITY AUSTRALIA NATIONAL NATIONAL Building innovation 27/03/12 5:42 PM STRATA COMMUNITY AUSTRALIA INSIDE STRATA 13 Tonnet recognises there are difficulties involved in green and urban innovation on a residential scale - the costs involved with water and energy reduction and those initiatives are not valued by investors and residents as there are no penalties for over-use of resources - but he says things are changing. “There are a number of significant things happening. One is that 70% of the housing growth and housing demand will be in urban peninsular areas and a big portion of the future market is going to be older people and younger people. We have also got a lot of people coming in from overseas who are used to apartment-style living and we think there is a very strong social sustainability story to be told,” he said. “And the way we are going to live our lives in the future will be a lot less introverted in terms of the home and a lot more extroverted in terms of the amenities and the community around it. We think people are going to want to and try to engage a lot more with their communities and that is where we see a big change.” As a result, Leighton’s sustainability aims encompass not only energy and water efficiency but also public safety, amenities and health. “You have got to get all of those five things right to create good communities and good sustainable design,” he said. “People increasingly want to feel secure in their community and their environment, so community programmes and anti-crime programmes and devices are going to be important in the future. [We also] think there is going to be an increasing focus on health, so we look very hard at things like LED lighting, maximising lowtoxic material use and natural ventilation.” Colgan also agrees that while there were costs involved in prioritising environmentally friendly and community features at Square One, there were also some significant financial benefits. Some of the residents have their electricity bills in credit, he said, while changing the angle of the roof to fit the solar panels resulted in enough loft space for additional bathrooms and bedrooms to be added to the site. He adds that part of the company’s success, in both capturing the benefits and lowering costs was due to its integrated A word from our sponsor: CHU approach to the development: designing features into the development from the beginning and managing things step-bystep. “And we are really only small developers and builders. And if we can do it, the bigger developers can definitely do it,” he said. “With the numbers they have got in terms of buying power and in-house design teams. In my mind, it was just about commitment. I would like to think that other companies that produce a lot more apartments will take a look.” At the larger end of town, it is not only Leighton Properties that is innovating in these areas. Property giant Lend Lease has also chalked up some significant successes when it comes to creating green communal residential spaces. Its Victoria Harbour project in Melbourne is a precinct development including commercial and retail space, over 2,000 residential apartments, 20,000 square metres of community and mixed-use land, six hectares of parkland and public space, child care facilities and Australia’s first ‘green’ supermarket. It also boasts the highest concentration of green buildings in Australia and is one of only 16 projects worldwide to be included in the Clinton Climate Initiative’s global program, supporting large-scale sustainable urban projects. “Victoria Harbour is an integrated urban solution that respects the existing environment, minimises the short and longterm environmental footprint and provides a socially and economically sustainable community that performs now and into the future,” said Claire Johnston Lend Lease’s Project Director for Victoria Harbour. The Serrata apartment block on the site was awarded a Green Star residential v1 rating from the Green Building Council of Australia, and features include rainwater harvesting, Low-E glazing double glazed windows to reduce the use of heaters and air conditioners and the use of smart meters in all apartments. The Convesso apartment block was awarded a 4 Star Green Star – Multi Unit Residential Pilot Rating. Convesso was also Australia’s first residential development to include smart meters, and visual display panels in each apartment to provide residents with real time information about water and electricity consumption, Lend Lease said. In addition, the Safeway supermarket on the site includes a number of innovative green features. A cascade refrigeration system produces around 25 per cent less greenhouse gas emissions, automatic night blinds on the upright refrigeration cases reduce carbon dioxide emissions from the store by up to 100 tonnes per year, and waste heat from refrigeration compressors is used to heat air in the air-conditioning system. 14 INSIDE STRATA STRATA COMMUNITY AUSTRALIA NATIONAL NATIONAL Building innovation Forward thinkers are better prepared Strata buildings may be static but the obligations and regulations surrounding them are always influx. Building Code of Australia (BCA) requirements change, new statutes are introduced and strata schemes are obligated to undertake greater responsibility. In insurance and risk management, the most innovative strata managers and strata schemes are forward looking - anticipating future needs and requirements and adapting the management techniques and business practices to meet these. Innovative strata managers and schemes are usually aware of the risk they carry. Risk awareness is about preparation and having the foresight to understand future risks and liabilities. To become more risk aware, strata schemes can undertake practices which take into account the obligations of a building today and in the future. Examples include: • BCA updates • Full insurance valuation reports (based on current guidelines and zoning requirements) • Comprehensive sinking fund reporting • Work Health and Safety (WHS) reporting • Condition reports (or on new buildings defects reports) All of these processes will ensure that the strata manager and the scheme is aware of the future or current obligations or laws which may impact on each lot owner’s assets and liabilities as well as those of the strata manager. We explore these processes in more detail below. BCA updates New BCA requirements are regularly introduced and are based on discoveries around inadequacies within the current guidelines. They are designed to protect occupiers and ensure safety and integrity for which the building was designed. Awareness of any changes ensures that strata schemes can adequately insure the correct rebuilding values taking into account new obligations, or implement changes to their sinking fund, which enable adequate funding of future maintenance or rectification obligations. Some example of future cost increases are: • Greener buildings • Labour cost increases New standards include: • Green star ratings • Fire safety requirements such as sprinkler systems • Zoning law changes Sinking funds Accurate and true analysis of ongoing building costs ensures that future maintenance and rectification is undertaken and ensures that works are not delayed and costs don’t blowout. Works that are put off invariably cost more and lead to other problems. Risk aware buildings that accurately monitor and manage such issues will be better served in the long run. WHS WHS reporting is important and many prudent and risk aware executive committees are working through this. Such measures lead to identification of problems which can be accounted for and managed by the executive committee thereby reducing any risk – foreseeable or not. Conditions reporting/ defects reports Strata schemes are responsible for common areas and building defects which may cause injuries. Failure to identify, manage, maintain and repair any such problems may open owners and strata managers to liability. While negligence may be covered by the insurer, potential fines, or even worse, criminal actions, are not. Risk aware buildings identify and deal with these issues before they manifest into greater problems or evolved into litigation. So what does this all really mean? Being proactive and innovative in the management of a strata scheme can have the added benefit of reducing the exposure to risk for all those living and working in the building. This leads to a better living environment and protects the asset and individuals against any potential damage or exposure to financial loss. Valuations Full valuations will not leave owners with a costs shortfall in the event of a total loss. Strata schemes must be aware of the true cost and obligations associated with upgrading the building to conform to current or future cost increases or standards. STRATA COMMUNITY AUSTRALIA INSIDE STRATA 15 Software solutions for strata managers Words by Peter Jordaan and Jennifer Ross Identifying the ideal management software is always a challenge. The right decision begins by first identifying the precise needs and goals for every point of interaction with your clients. The most important factor is to consider what features will make your business run efficiently so you can deliver on the expectations of your clients. Other criteria to consider are: • Functionality - ensure the software addresses your process, management and reporting needs. • Total cost of ownership – calculate whether the total cost of the license or subscription fee, training, ongoing support, and any additional modules, customisation or third party software in addition to the core program (eg document management) is within your budget. • Cost savings – consider what cost savings the software may provide. For example it may enable your clients to more easily self service from an online portal, or it may reduce staff overheads or other costs in the business. • Usability – it may require additional training or may be intuitive and simple to use. • Data conversion – think about how your existing data can be transferred across to the new system. • Compatibility – does it link seamlessly with your other office productivity and database applications? • Reliability – check out the reputation of the program, talk to customers and see if they are satisfied with the software and the supplier. • Supportability – what support is offered? To help you decide what software might be right for you, Inside Strata spoke to three software solutions companies to find out what they offer: 16 INSIDE STRATA STRATA COMMUNITY AUSTRALIA Business solutions StrataMax StrataMax has always been at the forefront of software development with one of its primary goals aimed at increasing ease of use and efficiency. It lists 39 functions of STRATA Master ranging from levy processing, bulk BPay, GST reporting, web access for owners and executive committees, integration with Microsoft products and more. “We are constantly introducing innovative ‘industry first’ features that revolutionise and streamline the complex process of managing and maintaining strata buildings. Automating repetitive tasks that chew up manpower is just one more benefit,” Daniel Borin, StrataMax’s Executive Director said. What’s now, what’s next Strata management software is increasingly building in more social networking functionality. At the end of the day, it’s all about building, maintaining, and strengthening communities. And that begins by creating effective and trusted connections. StrataMax provides a single, comprehensive integrated software solution that contains nine business tools or modules. For example, the core BCMax module is a complete Community Management system that has been continually developed and enhanced over the past 20 years. It looks after all the day-to-day needs of a strata management office. The next phase of strata management client web portals will be the integration of more online systems, such as energy monitoring, and meeting tools. “Its features are wide and varied, ranging from basic accounting features through to comprehensive financial reports and budgeting,” Daniel said. “Plus it’s incredibly robust, BCMax allows users to setup internal procedures and utilise as much or as little of the system as needed.” Other modules include the StrataMax Owners Portal which allows owners and committee members to keep up to date with their property. Each owner is issued a unique login and password and can access information pertaining to their lot. The StrataMax Invoice Hub module allows committee members to approve invoices online, anytime or anywhere. What’s certain is that sophisticated strata management systems will further liberate managers from more onerous tasks so they can concentrate on the more rewarding aspects of their role, including counseling, mentoring, and problem solving. The future of strata management has never looked brighter. However, those managers whose business plan incorporates a clearly defined and continued online strategy will be optimally placed to make the most of the great opportunities ahead. For more information visit www.stratamax.com.au, www.mystrata.com, www.rockend.com.au CASE STUDY Creating portals Determined to streamline its client communications, a Brisbane-based strata management company chose to develop its own customised web-based community portal system for each of the buildings they manage. Called ‘Collaborate’, typically of such systems it provides an easy way for owners and committees to stay in touch, express opinions on issues, and upload and download documents. While all owners have access, different privilege levels are assigned to committee members such that their communications can remain “committee confidential” if they wish. One of the system’s benefits is that all comments by contributors are grouped with the relevant topic, so easy historical reference is possible. Subscribers to the system can elect to receive an ‘alert’ e-mail whenever a new topic or comment has been added. The company has found that enhancing community dialogue through these portals has significantly eased the email flow back to their strata managers, so enabling greater time and office efficiencies. Strataware provided by Mystrata.com Mystrata.com CEO David Bugden says his software – Strataware – helps managers, property owners and residents communicate, collaborate and interact in innovative ways. “Strataware is a powerful online community management and accounting system,” David said. “Covering all aspects of community management from statutory record keeping, accounting, bank interfaces and electronic reconciliations, e-mailing and full document management, Strataware is an end-to-end solution for a professional management business.” The software is delivered using state-of-the-art “cloud” technology, which means Mystrata.com host, maintain, back-up, upgrade and support one version of Strataware. This technology model significantly lowers the total cost of IT for Mystrata.com’s clients. The company’s latest offering ‘MyCommunity’ is a web portal system linked to Strataware. This product enables committee members, owners and residents to communicate and share information and to “self-service” the administration of their home or investment. body corporate specialists PKF’s specialist Property and Construction Team includes experts in auditing body corporate/strata plans. Our extensive experience includes in excess of 200 body corporate clients currently. We understand the relevant reporting and tax requirements and can provide you with the support and services you require. Other products and services provided by Mystrata.com include an electronic payment gateway and bespoke web portal sites for individual buildings or real estate communities. STRATA Master According to the Rockend website, the providers of STRATA Master software solutions its product is scalable to any business size with advanced features designed by industry professionals. The software is regularly upgraded to keep up-to-date with the changing requirements of customers and the industry. For more information please contact: Kim Colyer Audit & Assurance, Partner T (07) 3226 3561 E kim.colyer@pkf.com.au www.pkf.com.au NATIONAL NATIONAL Business solutions skills shortage Industry skills shortage: what needs to be done Words by Gabriella Hold working with managers to ensure that they can be upskilled. We definitely focus on upskilling and promoting internally rather than externally when we can.” Case study: Darby said in terms of developing existing staff, a fantastic tool that is probably underutilized is online training. Retaining Staff “I think a large number of businesses find it hard to have their key staff attend seminars,” he said. “[With online] you could run large webinars with questions and answers and it can be recorded and people can watch them in their own time.” But as well as education, what’s required is better promotion of strata management as a career, according to Reena Van Aalst, General Manager of Portfolio Management at Dynamic Property Services. “Unfortunately being a strata manager is not a profession with high public regard due to the nature of the job itself and public perception,” she said. “This needs to change to attract more people into the profession.” One way of doing this, she said, would be to offer courses at a university or higher education level. More education, retention of quality staff and better promotion of strata management as a profession is required to overcome skills shortages in the industry, according to market experts. The fast growth of the industry, coupled with more complex strata title properties means that better training facilities and courses are needed to fill growing knowledge gaps. “The industry is growing, so you get things like shortages in facilities management and shortages in project management because strata schemes are getting bigger and bigger and with that comes a requirement to have specialised services,” said Ric Culpitt, a former Director of SCA’ s state board in Queensland. “People just don’t have the skills to look after huge high rises such as ones on the Gold Coast with 4,000 or 5,000 lots. They require a level of professionalism that the industry at the moment just can’t match. The industry should be training, and the strata companies should have within their organisation people that are qualified in those areas.” However, Michelle Cummins, General Manager of Human Resources at Body Corporate Services (BCS) said the real issue is obtaining candidates with the right skills in the first instance. “When we put ads out … even if it is just for a strata assistant - we get hundreds of applications but it is definitely the skills that are lacking. We are finding it difficult to find anyone with the skills to do the role,” she said. Skills that BCS looks for in potential applicants include previous 18 INSIDE STRATA STRATA COMMUNITY AUSTRALIA strata experience first and foremost, or experience in a similar sort of industry, such as banking, legal and hospitality. “We also look for people who have stability in a work environment… and we look to see whether they have things like time management, good customer service skills, good communications skills, those are the types of areas we focus on.” Michael Darby, managing director of Quantum United Management, said while a skills shortage exists, the “industry is doing the right things” and it will just “take some time” before the issue is resolved. “I think the Certificate IV [in Property Services (Operations)] is the right format at the moment,” he said. “And the federal grant is going to help with that, sparking some interest in businesses to develop their staff and get them to do the traineeships.” Cummins agrees that the responsibility for training also comes down to the individual company level, noting that BCS has provided its entire staff company-tailored training in Certificate IV in Front Line Management, Business and Business Administration. “We also do leadership training, we do mentoring through external providers as well as internally, so we provide lots of functions,” she said. “We also identify people that we think have the potential to be leaders within our business and we put a lot of focus on upskilling them, right down to the personal assistant level.” “If we think that they would be a good portfolio manager, we start putting some training around them; give them a small portfolio, “As developments become highly complex in structure, (and as statistics show) there is an increasing trend of people living in the strata schemes, the skills and qualifications of those managing these types of developments need to be at a much higher level than has previously been required,” she said. “I [also] believe psychology should be included as a subject in any course due to the high interaction with lot owners, contractors and other professionals.” Another important factor is putting efforts into retaining quality staff once they have joined the organisation. Cummins said that BCS puts a lot of effort into things such as employee benefits, flexible working arrangements and an assistance program. One of the most important elements is an anonymous employee survey which assesses whether the staff understands BCS’ purpose, its structure and its systems. An action plan is implemented from the results and forms part of a branch manager’s key performance indicators, she said. “We believe the survey has added value to all staff,” she said. “They can see that we are making steps to make the company a better place and listening to them and listening to what they want to say.” Having a very open and honest culture is also essential, right up to the chief executive officer and senior executive level. “Part of the reason we are a successful organisation is because we have a fantastic leader who genuinely cares about staff and that is reflected in our retention rates,” she said. “We have quite a lot of staff that have been with the company for almost 25 years. People don’t stay around that long if they are not happy and I think that’s indicative of the strong leadership we are trying to display, especially in this type of market.” NATIONAL NATIONAL skills shortage One way to combat the skills shortage is to find ways to retain your staff. After all you’ve invested time and money into recruitment and training so it makes sense that you want to find ways to keep them engaged and loving their jobs (and you the employer). Daniel Linders, Group Managing Director at Strata Choice said that for him the first step was to recruit the right people. “Having the right cultural fit is essential and the way we achieve this is through internal promotion,” Daniel said. “When staff outgrow their current roles there is potentially an opportunity for them to be promoted internally. We always advertise to internal staff first and then if we don’t have staff who fit the role we look externally.” “Everyone from the new junior staff member knows that there is a career path and what the next step is for them.” Another way of retaining staff is to involve them in operational decisions. Daniel said that Strata Choice has work groups which work on a variety of areas. “One work group decides on the direction that our education plan will take. They decide on the topics that need to be delivered, frequency of the training and what different types of training are needed.” Indeed the education runs on a points system where staff plan and discuss with their manager what they need to do and then what educational topics are suited to their learning level. Putting staff in control of their own education demonstrates that the company trusts them to make the right decisions for their personal development and for their role. A recognition program also operates with staff firstly given recognition for performance and then secondly provided with a reward. “Each year we hold a company conference where staff attend a formal dinner in the evening. Those who have been nominated for excellent performance are awarded at the dinner,” Daniel said. “The most important thing to remember is that recognition and reward are things that have to be achievable both for the staff and for the employer.” Daniel also points out that placing accountability on people who are comfortable in their roles and especially the high achievers thrive from the pressure to perform. There is also a good mix of the generations in the company with under 2 percent from the silent generation (those currently aged between 67 to 87), then 17 percent baby boomers, 18 percent Generation X and 11 percent Generation Y. STRATA COMMUNITY AUSTRALIA INSIDE STRATA 19 BEST PRACTICE I was recently in my basement rummaging through our family history box for material relevant to an impending wedding anniversary of some importance. I was surprised to find a 1974 brochure for Residential Unit Management (a company started in Sydney by my mother and I back in 1973). The brochure listed the strata management services provided for an annual fee of $52 per unit per year, plus the additional charges for out-of-scope work. The division of work was much the same as is offered today by strata managers. Innovative Strata Management Words by Gary Bugden Historically, the words ‘innovation’ and ‘strata management’ have not sat very well together; but history is not always an indicator of the future. Little has changed As regards fees and services, allowing for inflation, not much has changed for the better in the past 40 years ($52 then equates to $430 today). Sadly, the same can be said for the way strata management is practiced today by many (although not all) management companies. Some managers still see themselves as secretaries and book-keepers, which fits the profile of the 1970’s. They deny the relevance of asset management, community building and diversified services and prefer to “keep to the knitting”. That mindset does not sit well with innovation, particularly if we look at it in the modern context. Wikipedia (today’s authority on everything) defines innovation as “the creation of better or more effective products, processes, services, technologies or ideas that are accepted by markets, governments and society”. Of course, innovation is not easy in any sector of business. It requires time and resources and (because it depends heavily on knowledge and experience) it demands the undivided attention of the organisation’s most talented people. The capital investment involved often fails to produce the desired commercial outcomes, thus making it a risky undertaking. While the emphasis in the above definition is on “better or more effective”, successful innovation has another component – it must provide a positive outcome to the business that sponsors it. Many executives pursue innovation without proper regard to the outcomes. Something that is better or more effective does not necessarily improve the business. For example, doubling the staff on reception may improve the customer service but at the same time decrease the profits. Types of innovation In the strata management business innovation can be strategically or operationally focused. It is always directed at improving ones business or service offering, rather than developing a business to business (B to B) product. Examples of strategically focused innovations are: • Client communication and education programs • Driving clients to serve themselves via real time web portals as an alternative to “face to face” service • Devising ways to tap the self-management segment of the market • Expanding service offerings (eg asset management, building maintenance, building specific or generic concierge services and project management services for major undertakings) • Specialisation, such as a 5 star management package priced accordingly. NATIONAL NATIONAL BEST PRACTICE • Replacing paper mail with electronic communications (eg E-mail, SMS and web links) • Streamlining internal labour intensive and time consuming work-flow processes • Geographically centralising the customer service centre • Departmentalised service delivery • Increasing competitiveness by outsourcing tasks other than core competencies • Introducing a flexible working environment for staff (using such things as part-time work, jobsharing and work from home) – many of which can significantly improve productivity • Using Voice Over IP instead of PABX telephone systems • Becoming quality certified • Using an intranet to enhance internal communications, training and standardisation throughout the organisation • Introducing the Balanced Score Card approach to performance management • Using “job tracking” technology so owners and tenants can determine the status of their maintenance requests on-line. Some strata management companies will already have tried some of those initiatives, with varying degrees of success. Others may be considering them as I write. And yet the thinking of others may be way ahead of the game. The most important thing is for the industry as a whole to recognise that there is potential for innovation in strata management and now is the time embrace it. Importance of Research and Development When considering innovation, remember that Research and Development can be an important factor. If a company is looking to improve its revenue model, R&D can help determine the various types of work undertaken and the costs of undertaking them as an indicator of where revenues need to be focused. It can also provide a range of revenue models for consideration. Similarly, if a company wants to use technology to improve efficiency and reduce costs, a detailed study of the various operational areas of the business will quickly determine the priorities. Technology itself is an important factor in innovation for business. Many business innovations have been achieved through the use of technology, and given the labour intensive and repetitive nature of many strata management tasks, technology is a logical tool of the innovator. Indeed, if you believe a study undertaken by Dr. Will Venters and Dr. Edgar Whitley from the London School of Economics and reported in the October 2011 edition of Forbes Magazine “cloud computing now makes it easier (and cheaper) to innovate”. Finally, a cost sensitive and hyper-competitive market combined with conservative providers is a great incubator for innovation. If you agree that those are the features of the strata management market today, then the time is right for management companies to start innovating. Now is the time to lift the game. * Gary Bugden is a commentator on strata titles and Chairman of the technology company, Mystrata Pty Ltd. Examples of operationally focused innovations are: 24 INSIDE STRATA STRATA COMMUNITY AUSTRALIA STRATA COMMUNITY AUSTRALIA INSIDE STRATA 25 green pages The next level in sustainable apartments Words by Ollie Hogue. Australia, The Commons has the potential to reduce heating and cooling energy consumption by up to 90 per cent. Combating rising energy costs as well as the carbon footprint. “The Commons will have all you would expect of an 8-star energy rated building including solar hot water, solar photovoltaics, grey water system for toilet flushing, rainwater tanks and hydronic heating”. And the commitment to sustainable living will not fade once the building is complete, with the project team taking steps to ensure initiatives are maintained for the life and operation of the building. “We have taken the standard owners corporation rules and added a decision making protocol, so that critical decisions made by the owners corporation pass through a sustainability filter.” Each open plan apartment has been carefully designed to promote high-levels of natural ventilation and eliminate the need for air-conditioners. Playing an important role in the ongoing sustainability of The Commons is not-for-profit organisation Moreland Energy Foundation (MEFL). To reduce the embodied energy of the building, finishes will be raw and exposed. Recycled floorboards and bricks will contribute to the target of 60% waste recycling during construction. “MEFL have created a comprehensive document outlining how the project will deliver sustainable outcomes from design through to construction and ongoing operation”, says MEFL coordinator urban development, Peter Steele. “The exposed finishes and use of recycled materials is really exciting and groundbreaking. We have demolished the old brick warehouse that was on the site previously, and we will be using some of the old bricks as cladding for the new façade.” A rooftop garden promoting shared activities has been chosen over typical inner city apartment luxuries like gyms, pools and tennis courts. “We advocated strongly for the project to look beyond design initiatives, to ensure strong consideration was given to how people would be supported in living sustainably once the project was operational.” “The green roof on The Commons is unique in that it will act to naturally cool and insulate the building, whilst providing a space for residents to interact, BBQ and grow their own produce”. The rooftop will also house a communal laundry of eight energy efficient washing machines, contrasting the one per unit of a typical modern inner city development. Residents will use external clotheslines rather than clothes dryers. But it’s the approach to transport that is perhaps the most intriguing. “All residents receive yearly public transport passes and a car-share membership as part of their owners corporation fees.” NATIONAL NATIONAL green pages MEFL will hold workshops for residents in the first year, introducing key sustainability ideas and guidance to make the most of the buildings features. “Our support will provide residents with a sense of impact about the day-to-day decisions they make, including what appliances and other products they buy, where they shop and what they eat. These elements are just as important as the design features of the building.” The owners corporation will also be required to consider contractors and suppliers that address sustainability and social issues in their operations. The off-the-plan project is due for completion in 2013. Tasked with marketing the project is Onder Ozmetin from Fitzroys Real Estate. “With just a few units left there’s clearly been an amazing response from the market. More and more buyers are seeking developments which consider sustainable living,” he concluded. Car parking spaces have also been traded for an inviting ground floor environment of bike racks and visitor showers. A residential apartment building that combines eco-friendly living with a sense of community might feel like a rare find for the average inner city dweller, but a development in Brunswick is about to change all that. Featuring highly efficient building design, stacks of energy efficient technologies and unique transport options, The Commons is expected to set new standards for sustainable city living when completed in 2013. “At the heart of the project is the idea of building a community for the residents in an environment that pushes the boundaries of sustainability”, says the building’s designer, Jeremy McLeod, director of Breathe Architecture. 28 INSIDE STRATA STRATA COMMUNITY AUSTRALIA “It’s a zero carbon, zero car project providing social, economic and ecological benefits.” Located six kilometres from the CBD, the 24-unit apartment block is being developed by Adam Borowski of Melbourne company Small Giants. “The project offers a more sustainable way of constructing medium density housing in Melbourne without losing commercial viability”, says Borowski. “The development is close to Anstey bike path – a key thoroughfare for commuters into the city. We’re adding landscaping and rest areas along the bike path, to be enjoyed by residents and daily commuters.” “It really is a car-free development, which is rarely seen outside of the CBD”. “The intention is that residents will have an ecological footprint of one-quarter of a typical two bedroom suburban house.” With an 8-star energy efficiency rating – among the highest in Correction An article titled “It’s an emergency – or is it?” appearing on page 26 of the Queensland edition of Inside Strata for February/March 2012 was incorrectly attributed to Michael Kleinschmidt as author. Since the article was printed it has been brought to the editorial team’s attention that the article was in fact written by Jane McDonnell. This was not clear on the original copy. STRATA COMMUNITY AUSTRALIA INSIDE STRATA 29 Insurance update In late March the Federal Government tabled its second report into the affordability of residential strata insurance following a series of public hearings in far north Queensland and one in Canberra early in the new year. SCA Chief Executive Officer, Mark Lever said at the time that the report demonstrates the urgency of the matter and highlights the serious impact these costs are having on communities in north Queensland. “We welcome the recommendations which back SCA’s call for urgent government action to deal with the issue. Any relief for apartment owners would be very welcome at this point in time,” Mr Lever said. “As the report states it is clear from the evidence received that residential strata title insurance increases are seriously impacting people’s livelihoods and that any further premium rises will exacerbate the situation further.” Throughout the inquiry, the Committee was moved by personal stories of the hardship and fear caused by successive insurance premium increases. The large number of people who attended the hearings confirmed the magnitude of community concerns and the extent to which people are being financially and emotionally impacted. Mr Lever said that the recommendations also put pressure on the Federal Government to provide a whole of government response. Amongst the recommendations are calls for a number of agencies such as the Australian Competition and Consumer Commission (ACCC) and the Australian Prudential Regulatory Authority (APRA) to conduct reviews into the behavior of insurers to look at why there have been insurance premium increases and ensure there is no anti-competitive behavior taking place. The report also challenged Queensland’s political leaders to agree to a 12 month moratorium on the 7.5 percent stamp duty charged on strata title insurance for properties to provide some short-term relief. New Queensland Premier Campbell Newman claimed in mid-April that market forces would correct high strata title insurance premiums. SCA denied this citing evidence that suggests the current insurance renewal cycle is tougher this year than last. SCA will continue to engage with both the Queensland and Federal Governments on this issue as well as working with the various agencies as they undertake the recommended investigations. 36 INSIDE STRATA STRATA COMMUNITY AUSTRALIA NSW Executive Officer’s & PRESIDENT’s report New Tasmanian Chapter SCA (Tas) Best of breed and innovation David Ferguson, SCA (NSW) President A Symposium in Launceston in late March marked the first Annual General Meeting of the new Tasmania Chapter and the election of the first Executive. Congratulations to Craig Terry, Nigel Burridge, Mike Steele and Kym Keane on their successful appointment to the Chapter Executive and in particular to Mike Steele on his appointment as the Chapter President. New Northern Territory Chapter SCA (NT) by the NSW Government. This is certainly something that every strata manager needs to have in his or her tool kit and while it is not definitive it does provide some good initial answers. Of course the first thing that comes to mind is this magazine. We started this some time ago and quickly moved it from a newsletter to a magazine thereby giving it some value which advertisers would be quick to recognise and want to be a part of. Finally the development of the online training course for executive committees is another example of best of breed. Certainly it is something that we can provide as a framework for the other states so assist them provide the education to lot owners and executive committees that is both needed and wanted. Another which comes to mind is the “Who’s responsible?” guide which has been adopted We are on the verge of something great with national licensing and I for one am looking forward to sharing the best with the rest. Until next time … Strata law review begins Suresh Manickam, SCA (NSW) Executive Officer The first phase of the NSW strata law consultation closed at the end of February. The Minister for Fair Trading, Mr Anthony Roberts, MP, reports that the online consultation, which was managed by public policy think tank, Global Access Partners (GAP) through its ‘open forum’ website, received more than 1,200 comments. GAP is currently preparing a report to present to the Minister in April. The report will cover all issues raised, including various problems and proposed solutions. The Northern Territory has also moved to create a new Chapter with all states and territories now having SCA representation. SCA (NSW) has been advised that the topics range from day-to-day community living problems people experience, like noise and parking, through to governance matters including meeting procedures and conflicts of interest. In mid-April, SCA director Colin Archer and CEO Mark Lever hosted a well-received briefing in Darwin for more than a dozen strata managers and business principals who agreed to join the new chapter. Once all membership applications are in, they will form a committee and choose a president. The market in the NT is all about coping with rapid growth in a place that has embraced strata living like no other. Darwin’s skyline now looks like that of a city many times its size with medium and high density development providing well over half of all new housing for the past decade. Scheme renewal is high on the agenda of the NT government, which has welcomed the creation of the SCA chapter and the opportunity to tap into the collective expertise of a national industry. The theme for this edition of Inside Strata is innovation which got me thinking about what SCA (NSW) has achieved over the past few years which we can share with the other state bodies. It was this innovation that has led to the magazine becoming the one national edition which you are reading now. It also demonstrates that we can take our best of breed – those tools we have developed over time and refined – and share them. This creates a benefit for all. By all accounts the Symposium was a great success with 30 delegates attending to hear keynote speaker MP Attorney General, Brian Wightman, Minister for Justice, Minister for Environment, Parks and Heritage. The Attorney General welcomed delegates to the Symposium and to Launceston, and discussed the status of the Tasmanian strata industry. Mr Wightman noted in particular that Tasmanian strata managers are to remain unregulated with Tasmania not adopting national licensing at this stage. Industry figures show that Tasmania has 8.65% of strata housing, 7,857 bodies corporate and 28,909 lots. NSW NATIONAL National update The report will also cover questions about: how to promote urban renewal while NSW BUSINESS PARTNERS protecting individual owners’ interests; reducing unnecessary red tape for owners corporations, at the same time as strengthening executive committee accountability and improving the systems for enforcing by-laws and chasing up overdue levies. Information from the report will be fed into the government’s review, with a discussion paper due for release in mid-2012 to provide a more formal consultation process on potential reforms to the laws. SCA (NSW) will have more exciting information for members on this mid-year release soon. SCA (NSW) is privileged to be holding a special lunch at NSW Parliament House on Tuesday, 19 June 2012 hosted by the Minister for Fair Trading, Mr Anthony Roberts, MP. The Minister will make an announcement about the next stage of the NSW strata law review. NSW GOLD SPONSORS STRATA COMMUNITY AUSTRALIA INSIDE STRATA 37 working together Member update Words by Ollie Hogue Around NSW Strata Owners Chapter – now recruiting SCA (NSW) is focusing its efforts on boosting the membership of the new Strata Owners Chapter, which is a new category of membership for people who own one or more lots in a strata or community title scheme and especially those who sit on the executive committee of their scheme. Benefits include: • Free online executive committee training • Invitations to events at special SOC member rates • Networking opportunities with other lot Riddled with concrete issues, the 1960s apartment block in Sydney’s Eastern suburbs of Maroubra was calling out for repair. Riddled with concrete issues, the 1960s apartment block in Sydney’s Eastern suburbs of Maroubra was calling out for repair. But rather than fix the problem and move on, the owners corporation chose to completely reinvent the building, and in turn, redefine the way owners corporations treat remedial projects. “Although the building was structurally sound there were external areas that needed treatment”, says Dallas Bromley, Secretary of Lurline Bay Apartments Executive Committee. “So, at the owners corporation AGM, it was approved that architects be engaged to advise on the various levels of work for the owners to consider”. An executive sub committee was also established to act on behalf of the owners and David Terry from GK Strata Management was engaged to financially manage the major building works. Three options were proposed but only one offered increased amenity and value to the owners, says Bromley. The other two options would have returned the building to its original state. “One of the key elements was having a group of owners who were open to maximising the building’s potential”. “But it was still a lengthy process of consultation, regular communication and meetings to get all the owners to approve the cost plan and scope of works”. The new design of the building included all 21 lots, each of which faces the ocean. A special levy was raised to achieve the work. “One of the main difficulties was the interface between the old building structure which would remain, and the new construction of the additional area which ran the entire length of the building”. But once a design that reflected the waterfront location was agreed, demolition of the entire front facade was carried out and construction began. “When the scaffold was finally removed and the new look building was revealed, owners were astounded”. 40 INSIDE STRATA STRATA COMMUNITY AUSTRALIA The end result was a fully renovated exterior, including new terraces facing the ocean and wall-to-wall sliding glass doors in all apartments, new entry and foyer, newly constructed lift shaft and lift to all floors, a new roof, and remote garage doors. “The building is completely reinvented, owners have significantly enhanced lifestyles and the long term maintenance will be minimal”. “The executive committee deserve a lot of credit for what’s been achieved. It’s just a fantastic example of an owners corporation working together to invest in their building,” said Terry “The project is already inspiring other owners corporations in the area”. owners, strata managers and suppliers • Invitation to the complimentary Christmas party • ‘Around the Grounds’- fortnightly e-newsletter from SCA (NSW) • Copy every two months of Inside Strata magazine • Access to the online directory of suppliers and strata businesses • Access to fact sheets • Use of the strata ‘Works Agreement’ template • Membership certificate (electronic) • Input into strata policy development • Voting rights pursuant to the NSW Constitution NSW NSW Harmonious living with construction Further IPART strongly supports measures that will help to limit electricity prices increases while maintaining the viability of the electricity retail industry. Water charges also up IPART has also released a draft determination on the prices that Sydney Water can charge for providing water and related services to its customers during the four years from 1 July 2012 to 30 June 2016. Of particular interest to strata schemes is the price restructuring which will affect lot owners with a shared water meter. IPART considers that all residential customers receive equal benefits from the availability of a water supply service in their home, and so should all pay the same price for this availability, regardless of the legal property status of that home. Sydney Water charges customers who share a meter a share of a meter based charge while those with individual meters pay the same standard charge as a stand-alone house. On average, those customers on shared meters pay around $70 per year. However, some pay as little as $5 to $10 a year. This imbalance influenced IPART’s decision to introduce a standard water service charge for all residential customers. As a result, many households in units with a common meter will now pay a higher water service charge than before. Those in houses and individually metered units will pay a lower water service charge. A final decision on this will be released in June 2012. SCA (NSW) is encouraging its strata manager members to sponsor the first two years membership fee for the entire executive committee of some of the larger schemes they manage. The modest fee of $100 for two years for the committee is certainly within the budgets of most companies and an excellent way of giving something back to the schemes they manage. Individual memberships are $50 for two years and are also welcome. The benefits for strata managers include better communications between themselves, their executive committee and SCA (NSW). A spin off is that by SCA (NSW) having more direct ties with lot owners it can better represent consumer issues to government policy-makers. More information and access to the online application form are available at www.sca.stratacomunity.org.au Electricity charges up The Independent Pricing and Regulatory Tribunal (IPART) announced recently that electricity charges in NSW would be increasing from 1 July 2012 by around 16 percent. IPART said that price increases were necessary because in recent years, electricity retailers’ costs have increased significantly and are expected to continue to rise in coming years. This is being driven primarily by the continuing rise in electricity network charges and the costs associated with green schemes. These costs must be passed on to consumers in the form of increased electricity prices, if the retailers are to remain financially viable. It says that it recognises that the percentage rise in average electricity bills is likely to outstrip the percentage rise in average household income and therefore many households will spend an increasing proportion of their income on electricity bills, particularly those in low income, high consumption households. STRATA COMMUNITY AUSTRALIA INSIDE STRATA 41 Around Victoria National licensing of strata managers The Council of Australian Governments (COAG) reform of national licensing is a regulatory rationalisation and reform program that will remove inconsistencies across jurisdictional borders and allow for a much more mobile workforce. The occupation of strata manager is one of the priority occupations for reform and was originally set to commence from 1 July 2012 however that date has now been abandoned and we are waiting on a new date to be announced by the Federal Government. Currently the proposal is that strata management will be a separate license category - not an endorsement of a generic real estate licence. Licensing will be for the business and required only for principals or nominees in effective control of a practice. There will be no individual practitioner licences for strata managers working in a business. The Certificate IV Property Services (Operations), developed specifically for the strata and community title management industry, will be the strata qualification. There will be no requirements for experience. Tasmanian news The COAG decision to establish national licensing agreed that all current holders of state and territory licenses would be transitioned appropriately into the new licensing structures to ensure that they continue to be able to undertake their current work. The details of these transitional arrangements are still being developed. The current Victorian proposal is to grandfather existing Business Licensing Authority registered strata managers. All new licence applications received after the implementation date will be required to meet the eligibility requirements for a National Occupational Licensing Scheme [NOLS] licence. Regarding the separate and parallel project underway that complements the national licensing project, it aims to harmonise the conduct provisions that apply to businesses that are part of national licensing. One of these relates to Management & Supervision. The proposal that there be a requirement that a licensed person would be needed at every “place of business” is now off the table. So a corporate branch office would not need a licensed person. However, franchising is a different story and each franchise will need a licensed person. Consumer Affairs Victoria (CAV) Real Estate practice round table SCA (Vic) is represented at the CAV convened Real Estate practice round tables, along with other peak and statutory bodies. These forums aim to improve the operation and practice of laws and policies that regulate the sale and transfer of real estate in support of the Government’s key policies on real estate regulation and practice. This meeting covered a number of issues, as well as the progress on delivering Government policy, and developments in the policy and regulatory area. Law Institute of Victoria (LIV) teams up with SCA (Vic) The LIV’s Property & Environmental Law Section has an Owners Corporation (OC) Working Group that has developed an OC Position Paper. Using the SCA (Vic) Policy Position as a starting base, this culminated in these peak bodies jointly making submissions to and meeting with Consumer Affairs Victoria on OC law reform. In particular, favourable progress was made on the following issues: • Proxies for committee meetings • VCAT default judgements in undefended matters and enabling adjudication on the papers • The ability to levy extraordinary fees when expenses are created by owner(s) • Maintenance plans and maintenance funds • Removing the antiquated requirements of common seals • The level of public liability insurance for prescribed owners corporations • The power for owners corporations to bring legal proceedings. 44 INSIDE STRATA STRATA COMMUNITY AUSTRALIA VIC / TAS VIC / TAS Victorian news Hobart capital city plan 2011-2040 The Tasmanian Planning Commission (TPC) has released a draft Hobart Capital City Plan 2011-2040. The draft plan sets out the short, medium and long term planning strategy for Hobart, including land use, public spending and the direction of private investment and planning reform. Tasmania overall has an estimated population of approximately 500,000 people, divided almost equally between the north and south of the state. It is the smallest of Australia’s six states with much of the population living in regional centres. Greater Hobart’s population is about 220,000. When it comes to housing, Greater Hobart is one of the least densely settled capital cities in Australia with one of the highest proportions of single, detached dwellings. Although the average household size is decreasing, and the population is ageing, the majority of residential developments continue to occur at the urban fringe. As for housing choice, the plan notes that Hobart is a geographically dispersed city with a low level of housing density. The majority of new residential development continues to occur on ‘greenfield’ sites at the city’s periphery. Tasmanian strata sector For our Tasmanian members, have you ever wondered at the composition of the Tasmanian strata sector? These two charts estimate the split between strata scheme types – one for schemes and the other for lots. The charts are based on data sourced from a “National strata & community data” report by the City Futures Research Centre of UNSW, which used information provided by the Land Titles agency. Establishing a settlement boundary and changing the housing paradigm to emphasise infill and inner-city development will support greater housing choice and improve affordability. The figure shown, from the Australian Bureau of Statistics 2006 Census data, shows Housing Stock versus Household Configuration. Despite a higher than average percentage of sole occupancy households, Tasmania continues to have the highest percentage of separate housing stock in Australia creating stress on household budgets through a higher cost of living associated with such stock. Tasmania has 25.9% of households as sole occupancy, but only 12.8% of its housing stock is conjoined. Comparatively, Victoria is more balanced with 23.3% of households as sole occupancy, and 22.6% of housing stock conjoined. In terms of dwelling density for Greater Hobart, in order to develop a more sustainable model of development, the Regional Land Use Strategy for Southern Tasmania imposes a minimum density of 15 dwellings per hectare in existing built areas and 25 dwellings per hectare for new development. STRATA COMMUNITY AUSTRALIA INSIDE STRATA 45 government update STRATA MANAGER PROFILE QLD QLD Simon Barnard Update from the Office of the Commissioner for Body Corporate and Community Management COMPANY: Hartley’s Body Corporate Management POSITION: Principal and Managing Director YEARS IN THE INDUSTRY: 11 years Robert Walker, Commissioner for Body Corporate and Community Management I remember watching a DVD of a leadership Forum in QLD and saw James Freestun as MC and Kerri Anthon giving a talk on how she started from her kitchen table and how she had got to where she was today. This inspired me that it could be done and the only barriers would be ones I put in front of myself. New practice directions for dispute resolution service In early April I will issue 11 new practice directions for internal dispute resolution and the dispute resolution service. The new practice directions will join the 22 practice directions issued in 2009. Details of the seminars are as follows: Sunshine Coast Date: Monday 23 April 2012 Practice directions may be made by the Commissioner pursuant to section 233 of the Body Corporate and Community Management Act 1997. Time: 10:00am – 12:00pm The 11 new practice directions cover a range of issues including internal dispute resolution, debt disputes, the process for seeking authority for alternative insurance arrangements, complex disputes and standing of parties. Once issued, the practice directions will be available on the Justice Department’s website at www.justice.qld.gov.au/bccm. Gold Coast Information seminars I am pleased to announce details of the BCCM Office’s 2012 body corporate information seminars. The seminar program will be conducted around Queensland in late April and early May 2012. As well as providing general information about bodies corporate and how to avoid and resolve disputes, the free seminars will also give an overview of the Body Corporate and Community Management (Specified Two-lot Schemes Module) Regulation 2011 (the two-lot module) which commenced on 28 February 2012, and the 11 new practice directions mentioned above. Current and prospective owners, occupiers, committee members, and anyone else involved in community titles schemes, are invited to attend. Please email the Commissioner’s Office on bccm@justice.qld.gov. au or call 07 3227 7899 to register your interest in attending one of these seminars, or for more information. Of course you don’t need to wait for a seminar to get more information on body corporate issues. Our website has a wide range of publications and online training modules. And our knowledgeable Information Service staff can respond to individual queries about the body corporate legislation on free call 1800 060 119 or in writing. 50 INSIDE STRATA STRATA COMMUNITY AUSTRALIA Most memorable moments in the industry? Venue:Maroochy Surf Club, 36 Alexandra Parade, Maroochydore Date: Friday 27 April 2012 Time: 10:00am – 12:00pm Venue:Currumbin RSL, Currumbin Creek Road, Currumbin Cairns Date: Monday 30 April 2012 Time: 10:00am-12:00pm Venue:Holiday Inn, Cnr The Esplanade & Florence Street Townsville Date: Tuesday 1 May 2012 Time: 10:00am – 12:00pm Venue:Jupiter’s Townsville Hotel, Sir Leslie Theiss Drive Brisbane southside Date: Thursday 3 May 2012 Time: 10:00am – 12:00pm Venue Carina Leagues Club, 1390 Creek Road, Carina Brisbane northside Date: Friday 4 May 2012 Time: 10:00am – 12:00pm Venu:eKedron Wavell Services Club, 375 Hamilton Road, Chermside Tell us about your first job in the strata industry: As the Chairman of a body corporate committee I remember going to a meeting and the committee were discussing how they wanted to change managers and I innocently said I would be happy to step in and take it over to help out. After the meeting when everyone had left I realised what I had just committed to. Thankfully I have not looked back since. What motivated you to join the industry? Following my decision to manage my first scheme I was exposed to the diversity of the industry and saw an opportunity to use my skills gained from working in retail for 23 years while at the same time embarking on a new career path. It was exactly the change I had been looking for. After establishing Hartley’s Body Corporate Management I joined what was then the CTIQ - now SCA (QLD) - and was hungry to get as much knowledge as possible through seminars and training. This is hard as there have been so many but ones that always come to mind are attending the NCTI (now SCA) national conference in Darwin and the United States’ Community Association Institute conference in Las Vegas two years ago. What do you love most about the industry? The feeling of encouragement and mateship amongst people within the industry that compete commercially against each other every day but can still get together, socialise and create events for the industry as a whole. It’s like a second family when you need support and help there is always someone there for you. Most useful piece of advice you’ve ever received? It’s about the way you ask the question. How has the industry changed since you first joined it? One word Government Compliance. Oh! That was two sorry. Over the last three years there have been at least five significant changes to regulations covering strata in QLD alone. What changes would you like to see? More regulation and controls over the professional standards within the industry and the removal of restrictive legislative red tape that burdens owners and managers. What is your vision for the future of the industry? Strata is such an exciting and constantly changing industry. I am committed to ensuring we continue to educate and train our members and stakeholders to improve professionalism and industry standards. Who has been your greatest influence in your working life? Franklin Covey and my fiancé Wendy. In what state is your work/life balance? Great! I have a fantastic team I can rely on in the business and we support each other to ensure we all have the work life balance we need. How do you unwind outside of work? When you run your own business it’s hard to find a work life balance but it’s important you find time to enjoy the company of friends and family. We love camping and find this a good way to stay grounded and appreciate what we often take for granted in life. When was your last holiday, and what did you do? Thailand last November: just relaxed and lazed around the pools and beaches. STRATA COMMUNITY AUSTRALIA INSIDE STRATA 51 NSW WA LOCKSMITH SECURITY SERVICES INSURANCE EPSILONSECURITY We specialise in the Installation and Service of: • Video & Audio Intercom Systems • Access Control & CCTV Systems • Automation Systems • Upgrades & Retrofits of existing systems 24 Hour Emergency Service P: (02) 9638 5011 BUILDING CLEANING www.epsilonsecurity.com.au PLUMBING Maintenance & Repairs PROUD PARTNERS OF E: sales@epsilonsecurity.com.au Guards - Patrols - Concierge - CCTV - Monitoring Services PROPERTY SERVICES On the surface we do cleaning, but underneath... we do everything to make your life easier. “Small to Tall, we do it All” YOUR ONE STOP STRATA SPECIALISTS EXPERT & FRIENDLY SERVICES M/Lic 405998841 A FAMILY COMPANY FOR OVER 30 YEARS M/Lic 405998841 1300 880 880 02 9567 9200 headoffice@sentinelsecuritygroup.com.au www.sentinelsecuritygroup.com.au www.commercialcleaning.com.au 44/ 52-58 Parramatta Road, Homebush NSW 2140 ENGINEERING Consultants STRATA PLUMBERS • • • • WATER LEAKS BLOCKED DRAINS INVESTIGATIONS REPORT WRITING 9223 1022 service@cbdplumbers.com.au SYDNEY CBD PLUMBING P/L Expert & Professional Service TV ANTENNA SERVICES Cleaning, Caretaking, Waste management, Pool services, Washroom services, Coordinating maintenance. 1300 788 145 admin@triumphantps.com.au DIGITAL UPGRADE & SATELLITE TV RECEPTION SPECIALIST Your satisfaction passion! is our Free Asian, European and Arabic channels No ongoing subscription fee Received by digital TV/Set Top Box Phone: 02 9317 2688 Fax: 02 9317 2622 Email: psn@pacificsatellite.com.au www.pacificsatellite.com.au , 5/56-58 O Riordan Street, Alexandria, NSW 2015 CLASSIFIEDS AUDIT SERVICES PO Box 347, North Sydney NSW 2059 Tel: (02) 8904 0450 Fax: (02) 8904 0490 56 INSIDE STRATA STRATA COMMUNITY AUSTRALIA STRATA COMMUNITY AUSTRALIA INSIDE STRATA 57 Get noticed in the strata industry in your state or across Australia IS NSW Inside Strata Booking form Inside Strata is distributed to around 5,000 people in the strata and community title industry - from strata managers to industry suppliers and now increasingly to owner occupiers and investors. & ACT Advertising booking details _________________________________ _________________________________ _________________________________ _ _________________________________ ______ Classified Title ___________ Postcode ________________ ______________ ___________ State __ _________________________________ _____________ Address ______________________ ___________ ___________ ____ Fax ______________________ _________________________________ Phone ______________________ _________________________________ _________________________________ _________________________________ _ Email ______________________ _________________________________ ___ Date ______________________ _________________________________ Signed ______________________ Company Name ___________ _________________________________ Contact Name ___________ ta Inside Stra Advertisement deadlines WEEK 2 ING KIT ADVERTIS National EDITION TICK February April June August October December Full page Half page Full page - Inside front cover Quarter page 11 March 4 March 13 May 6 May 8 July 1 July 9 September 2 September 11 November 4 November SIZING (WIDTH x HEIGHT) NATIONAL (TICK) NSW & ACT (TICK) 210mm x 297mm - Inside back cover - Back cover - Inside magazine Half page Third page Quarter page Classified Classified 22 January 15 January Artwork specifications PAGE SIZE Third page WEEK 1 Advertorial – full page Advertorial – half page Advertorial – third page The only other way to potentially get that sort of coverage is to take out an advertisement in The Australian or Australian Financial Review but that would cost 10 times the price and not be guaranteed to get you before 10,000 of the right eyeballs. 210mm x 148mm 210mm x 100mm 100mm x 138mm 51mm x 55mm 210mm x 297mm 210mm x 148mm 210mm x 100mm Inserts cations Artwork Material Specifi files with all fonts as: High-Resolution PDF Artwork files are to be supplied Please outline any non-postscript fonts only. only, 300dpi at embedded. Post script fonts Images are to be CMYK colour including those in eps files. 3mm bleed required. to process. No RGB colours. 100%. Convert spot colours ons may result in SCA in the above specificati Material not supplied to d for quality. and cannot be guarantee additional production charges required. if produced be to SCA can arrange for artwork policy Payment and cancellation must be paid at the for all advertisements and Payment in full is required will only be held for a is due. Advertising space ns on all contracts same time as the artwork a signed contract. Cancellatio for all cancellations. maximum of 24 hours without requires two (2) weeks notice will incur a 50% charge. SCA If your business operates in two or more Australian states or territories then consider taking out an ad in Inside Strata. Alternatively, advertising within your state is also available but be quick. February 2012 edition advertising closes soon and could cost you from as little as $1,511.40 for a national ad - that’s a tiny 0.3 cents per person you are reaching. Simplify your life and make the switch to StrataMax software. Why do more and more companies continue to switch to StrataMax? The reasons are simple: One: We are the leading provider of software and financial services to Over 300,000 lots are now managed using StrataMax software. “We recently moved our entire portfolio across to StrataMax Services.The highly experienced and knowledgeable StrataMax training team gave us great support throughout the transition. The ongoing support and training that our staff have been receiving is invaluable.” DAVID TERRY, DIRECTOR, GK STRATA MANAGEMENT Ask us about special deals on block bookings. the strata industry - and have been for 20 years. Two: We don’t rest on our laurels. Our aims are always the same. We not only seek to automate repetitive tasks that chew up manpower, we are constantly introducing innovative features that revolutionise and streamline the complex process of managing and maintaining strata buildings. Three: We make the transition to our proven software and service a breeze - with dedicated support and training teams, and free online training. Four: You don’t have to shop around for extra software. It is all included in the one integrated package. Nine integrated business tools or modules together provide the most powerful, cutting edge software available to strata managers. Enjoy an obligation-free demo: Like to see StrataMax SCA as follows: For more information contact community.org.au Email: insidestrata@strata 02 8904 0490 Phone: 02 8904 0450 Fax: Contact SCA on (02) 8904 0450 or email insidestrata@stratacommunity.com.au and ask for our rate cards and booking forms. in action, and find out how you could streamline your business and make it more cost effective? Simply phone us on 1300 624 890. If you’re attending the SCA National Convention in Adelaide you can also drop by our display booth for a demo. We can even help you design your ad for an additional fee. Our innovative Invoice Hub lets committee members approve invoices online anytime, anywhere. Phone: 1300 624 890 Email: info@stratamax.com The complete strata management solution. 58 INSIDE STRATA www.stratamax.com STRATA COMMUNITY AUSTRALIA O F F I C E S I N N S W, V I C T O R I A & Q U E E N S L A N D