Promoting and protecting the rights and lifestyles
of unit-owners in Queensland since 1978
1. Return on investment will be 1% or 2% (if you are lucky). Many make a loss.
2. You will not be informed the true gross amount that a renter has paid to occupy your unit.
3. You will be saddled with a 10 or 25 year escalating management right's contract that is almost impossible to terminate. In some cases the 25 year contract is unlawful.
4. You will be saddled with undisclosed uncontrolled letting commissions (may be 25% of gross rental) on the pretext that the commission relates to wholesaling rentals through a company associated with the letting agent.
5. You will be required to contribute to advertising for the letting agent’s business.
6. You will be required to pay cleaning costs including a mark-up to the letting agent that may double the actual cleaning cost, every time your unit is rented.
7. You will be required to pay for maintenance costs to your unit – plus at least 10% mark-up/supervision fee to the letting agent. (An average letting unit needs to be refurbished every 5 years due to damage caused by tenants).
8. You will not have any say in how your building is supervised. The Body Corporate and Community Management Act 1997 disadvantages unit owners and is biased against them.
9. Queensland local council rates and water rates are excessive (loaded for holiday rental units on the Gold Coast by an additional 125%, $801 to $1800).
10. Any capital gain on units in Queensland is eroded away due to the cost of ownership.
The Unit Owners Association of Queensland urges the Queensland Government and it’s Attorney-General to review Body Corporate legislation that permits developers selling 25 year Management Rights Agreements. Comparable provisions have been considered unenforceable by a NSW court and considered unconscionable in the USA. Such management rights sales also lead to the abovementioned outcomes.