Queensland Strata Managers Handling Millions Without Background Check, Says Former Commissioner

Queensland strata managers handle millions of dollars without background checks, licensing, or training requirements. The industry is "entirely unregulated," according to former commissioner Chris Irons. The Body Corporate and Community Management Commissioner's office receives over 1,500 dispute applications and 23,000 requests for information annually but lacks inspectors and power to enforce regulations. A code of conduct exists but has no penalties for breaches.

Queensland's strata management industry, responsible for handling millions of dollars in property funds, operates without background checks, licensing, or mandatory training requirements [1]. Former Body Corporate and Community Management Commissioner Chris Irons described the industry as "entirely unregulated," raising concerns about the potential for mismanagement and disputes [1].

The Body Corporate and Community Management Commissioner's office receives over 1,500 dispute applications and 23,000 requests for information annually. However, the office lacks inspectors and the power to enforce regulations, leaving homeowners and body corporates vulnerable [1].

The consequences of unregulated strata management can be severe. For instance, in early 2024, the body corporate for the iconic McWhirters Apartments in Brisbane's Fortitude Valley was ordered to make emergency expenditure for their compulsory building insurance, which amounted to $1.2 million [1]. The premium for this insurance, issued by Lloyd's of London, had tripled, highlighting the challenges faced by unregulated strata managers in securing affordable insurance coverage [1].

The lack of regulation in Queensland's strata management industry is not unique. Property experts, including former Queensland Body Corporate Commissioner Chris Irons and ARAMA CEO Trevor Rawnsley, have called for urgent reforms to address the issue [1]. With astronomical premiums hurting owners and damaging building values more than natural disasters, stricter regulations are essential to protect homeowners and ensure the stability of the property market [1].

References:
[1] AccomNews. (2024, March 18). Crisis point: Queensland property experts warn of strata insurance meltdown. Retrieved from https://www.accomnews.com.au/2024/03/crisis-point-queensland-property-experts-warn-of-strata-insurance-meltdown/