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Expensive Managment Rights Contracts Threaten Sustainable Unit Living

Media Release: 1 February 2012

Expensive Management Rights Contracts Threaten Sustainable Unit Living

The Queensland Party Secretary and endorsed candidate for Brisbane Central Ruth Bonnett will call for a complete review of the Management Rights industry if elected to the Queensland Parliament.

“Caretaking fees to Managers are a major expense item for unit owners: up to one third of the entire Administration budget.”

“Many Brisbane Central residents live in apartments, and the Manager is an important factor in the unit lifestyle.”

“Management Rights contracts which never end, and cannot be terminated can bind residents and investors to needlessly high fees, and ever escalating costs.”

“Managers under pressure from their bank can start to cause disruption in otherwise peaceful communities when they try to protect their investment.”

“With the Federal Labor government foisting higher costs onto all Queenslanders, it is time for a State based political party to help the majors show some accountability.”

“I will back measures to review costs to unit owners, including a much needed review of the Management Rights industry. After all, unit living is meant to be an efficient “light footprint” lifestyle. If the costs continue increasing, then both business and the environment will suffer with unit owners abandoning an increasingly and needlessly expensive lifestyle choice.”

“I have a track record of reducing costs and building value for unit owners. Brisbane Central residents can count on me to take steps to reduce their costs, safeguard an environmentally sustainable lifestyle and protect the interests of Queenslanders.”

MEDIA CONTACT: RUTH BONNETT | 0407 580 028

Tags: brisbane central, cost of living, management rights, sustainable living

Replies to This Discussion

Permalink Reply by Beverley Prescott on February 1, 2012 at 1:39pm

HI, Ruth.

Like reading your posts.

I guess you know there have just been meetings up this way about the high Insurance costs for unit owners (not body corporate fees). Insurance companies were in attendance.

Insurance has risen so much since cyclone Yasi that a call for an enquiry was made.

It sure sounds like to own a unit would be nigh impossible these days for people with no income such as retirees.

I do know some people some years back were complaining about the body corporate fees as well.

Sure seems as though the dream of owning a unit has been taken away from a lot of people who would love to downsize from a home as they age.

Permalink Reply by Ruth Bonnett on February 2, 2012 at 7:37am

Hi Beverley,

Unit living is grouse. I have taken to the lifestyle like a duck to water. The cost of body corporate fees is related to expenses such as caretaking which have been artificially inflated due to "Management Rights" contracts which are not enforceable, are never ever ending and cannot be terminated, even for gross misconduct on the part of the Manager.

Insurance cost is just another one of those costs. We had flood insurance fix up the flood damage this time, but now we can't get flood insurance.

My record is one of promoting the rights and interests of unit owners (who fund alot of businesses such as Caretakers, Letting agents, lawyers, body corporate managers, consultants, trades, etc), and reducing costs where possible.

One of the most important battles was when Campbell Newman lifted rates by 5 x. Imagine if your electriity bill went up five fold. Newman was told this increase was bad policy, folly, stupid, not good. He went ahead with mathematically flawed rating increases which punished owners of small units and protected penthouse owners, all the while claiming the exact opposite of what the math said. He eventually backed down, after a year and a bit long campaign to reverse this massive 'rates rort'. Any politician who can back such selective, ruinous policy should have no place at or near the State Premiership.

My next battle is with 'protected' Management Rights contracts. I have attached the first of a series of articles I have written regarding these contracts. Quite simply, the laws in Queensland protect the banks and not the people. This is a disgrace which must be corrected.

I am also thankful for the rural productive class who make my city lifestyle possible. My task is to ensure that urban voters can understand the unintended (and well disguised) consequences of a Green or Labor vote in the city.

Attachments:

MANAGEMENT RIGHTS- An Overview.pdf, 324 KB

Permalink Reply by Ruth Bonnett on February 2, 2012 at 2:57pm

This presentation done by our Chairman shows that the granting of extensions to the Management Rights contract binds the Body Corporate to higher fees.

I have attached the Presentation and the QandA.

Attachments: