|RESORT NEWS December 2004|
|Issued by Queensland Resident Accommodation Managers Association Inc|
|Role of Resident Managers|
|by Kim Cox (President)|
With the summer holiday season in full swing there is a key focus by holiday makers, investors and potential investors looking at Australia, how important a resident manager is to the success of the period.
We at QRAMA have long argued that there needs to be recognition of the process of ensuring that the holiday maker and tourist is the special person who needs to be assured of having a good holiday, for they are the ambassador not just for the building or resort, but also for the region.
For the sake of the growth of the economy and the growth of new products, we need investors and new investors to understand the professionalism of the holiday industry in Queensland and with that, the role of the resident manager in making it work and work successfully.
Therefore I consider it important that more people understand the complex role that the resident manager has, not just in holiday letting, but in managing a building and resort and maintaining and improving the reputation of the complex – big, medium and boutique.
The resident manager has a written agreement to act as an “agent” for the owner and undertakes a multitude of roles developing from this contract.
He advertises the property, usually using funds provided by owners in the letting pool and the agents collects all deposits and rental income into a trust account and regularly (usually monthly) disburses net amounts to owners, after deducting costs and commission as stated in the letting appointment.
The agent cleans the unit at the end of each stay and provides a regular service clean (commonly weekly) during the stay by guests.
The agent provides linen and relaces it with clean line, usually weekly.
Also the agent provides a PABX service in the unit, charging a PABX service charge to each owner and charging guests with call costs.
The agent arranges to rent (charged to the owner) a television set and other appliances if the owner chooses not to provide these appliances.
Further, the agent carries out minor repairs to the unit as needed and charges these costs to the owner.
For agreements since the commencement of the Property Agents & Motor Dealers Act 2000 on 1 July 2001, the agent has an agreed financial limit (usually about $300) that the agent can spend on behalf of the owner without prior reference. Other amounts must be referred to the owner for prior approval.
As the agent is acting on behalf of the owner, any unpaid rents are a loss to the owner but the agent must use its best endeavours to recover such amounts.
Owners have the option of occupying their unit, provided they have given due notice, and must pay the agent for services provided while the owner is present for any cleaning, linen, and other services.
As well as an appointment with each owner who chooses to use the manager's services as “agent”, the manager usually has a caretaking contract with the body corporate to provide maintenance and cleaning services for the common property (pool, foyers, gardens, etc), all as provided in the Body Corporate & Community Management Act 1997.
The manager has an authorisation from the body corporate to operate a letting business, all as provided in the Body Corporate & Community Management Act 1997.
Apart from the services provided for owners in its role as “agent”, the manager provides services directly to guests. These services are not part of the trust account activities but are consistent with the authorisation for operating a letting business, and include:
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