As my computer-literate readers know, you can buy anything on the Internet! They tell me that if you know where to look, you can even get the full schematic diagrams for building a three stage rocket and your own atom bomb to attach to the nose! While at this very moment in a cave in Pakistan, Osama Bin Laden may be punching his American Express Gold Card details into his laptop to order his copy of these plans, such things would hold little interest for me.

I was far more interested in an item I found recently on the Net, which I think would appeal to many management rights operators. For only US$10.95 you can have your very own "DAMMIT!" doll. This little beauty is 9 inches (approx 22cm) high and comes with a poem to explain its use.

When you want to climb the wall,
And stand right up and shout.
Here's a little Dammit doll 
You cannot do without.

Just grasp it firmly by the legs,
And find a place to slam it.
And as you whack the stuffing out
Yell Dammit, Dammit, Dammit!

Ah, ain't that the truth!

It is true that in any occupation where daily interaction with other people is part of the game, "Dammit" doll moments are inevitable. Unfortunately, not everybody will share your un-erring appreciation of the subtle nuances of every situation;

not everybody will accept that you are always right; some may even question your right to say that rent must be paid on time or that a full engine strip-down must not take place on the driveway --- frustration and angst can result.

Our natural reaction to these things is to fire up and fire off! A huge verbal eruption followed by knocking the crap out of your "Dammit" doll followed by a Size 12 boot into the cat.

Feel better???

Probably not, because the latest psychological research indicates that, in spite of selling in the thousands, devices such as the "Dammit" doll do you more harm than good. Your blood pressure will be up; your heart rate will be up; and your face will be flushed. If by any chance you are middle-aged, overweight, unfit, and suffering from undiagnosed coronary artery disease, your doctor will NOT be pleased, though the undertaker may be!

Fortunately, because I know my readers are all as fit as fleas, exercise daily, and eat and drink in moderation, I can probably sell you a "Dammit" doll without a health warning attached, but I won't because I know it won't solve your problem if "firing up and firing off" is your problem. Yes, running any sort of management rights business can be frustrating --- though less frustrating than many other occupations in this crazy world --- and I've tried plenty.

What is required is a change of mindset. Why do some people "fire up and fire off" every time adversity seemingly strikes, while others face the same adversity with calm equanimity? The second group realize that it is not the adversity itself that causes them pain; it is how they think about the adversity. If you can change the way you think about the things that now upset you, you will change the way you react to them.

My favourite philosopher is Marcus Aurelius (121-180 AD). Almost 1900 years ago, he wrote the following wise words. I have them laminated on the back of a business card and carry the card in my pocket. I would love to be able to tell you that I always manage to read the card before I kick the cat, but alas, I am but human, as are we all. Unless the RSPCA nab you, you might get away with kicking the cat; but you won't get away with "firing up and firing off" and punching a tenant on the nose --- so reach for the card before you take a swing at what annoys you.

If you are distressed by anything external,
the pain is not due to the thing itself,
but to your estimate of it; and this you have
the power to revoke at any moment.

If you would like to comment on anything you have read in The RAAS Report, please write to PO Box 1325, Sunnybank Hills, Qld 4109 or send an email to mike@raas.com.au.

By John Mahoney of Mahoney Lawyers

Some 4 years ago I wrote an article titled "Corporatisation Of Management Rights - Crumbling At The Edges?" for a well known industry publication.

I referred to recent headlines in Gold Coast newspapers suggesting that all was not well in the world of corporatised Management Rights with allegations having been made by growing numbers of unit owners dissatisfied with the performance of their investment units of secret commissions, conflict of interest and overcharging.

The principal allegations related to the way in which some of the corporates had been handling bookings made in complexes they manage such as channelling bookings through the wholesale arm of the corporates (a different, but related, company to the onsite manager). This wholesale company would charge up to 40% commission before the bookings were passed down to the onsite management company where a further 12% commission is charged along with the usual, some owners said excessive, charges.

I went on to detail how and the extent to which that practice was carried out. Before and since that article was written there have been various other complaints made about the way in which the big corporates conducted their businesses. A common theme throughout was that they cared little about unit owners or their obligations in relation to looking after the common property and more about extracting as much money as they could from the letting of units.

I said then and repeat that these practices are a blight on the management rights industry and in most cases in flagrant breach of the Codes of Conduct under both the Property Agents and Motor Dealers Act and the Body Corporate and Community Management Act.

The actions led in some cases to the termination of some caretaking agreements and owners removing their units from the short term letting pool en masse, placing their units with external real estate agents for long term lettings.

I referred to cases of bodies corporate refusing to consent to an assignment of management rights to large corporate managers and the inclusion of provisions in management rights agreements effectively precluding the transfer of the agreements to a public company or any entity affiliated in any way with a public company.

It is interesting to note some further comments I made at that time:-

"I suspect that the recent publicity surrounding the allegations against the big corporates might be the beginning of the tide turning. And quite frankly, you can not blame unit owners. The corporates have had a relatively easy run until now but rebellious owners have begun to take the fight up to them.

The buoyant unit market, which has allowed disgruntled unit owners to sell their poorly performing investments (more often then not at a premium to the purchase price) has probably hidden the extent of unit owner dissatisfaction. If the market continues to weaken, and unit values stagnate or start to decrease, unit owners' disquiet will only strengthen. Corporates which don't address these concerns will do so at their own peril.

There is undoubtedly a role for the big corporates, and even their wholesale arms, in management rights. However, if shareholder returns is the sole consideration and owners are treated with the indifference which with they have been treated in many cases, the corporates, and their share prices, can expect to suffer in the long term."

I hate to say "I told you so" but I did! The downfall of a number of the corporates was due to more factors than

I referred to but it is fair to say that the corporatisation of management rights has been a unmitigated disaster in all but a few cases. The original concept of management rights, where the owner of the business is personally involved in the running of the business, and typically but not essentially lives at the complex, is what made management rights such a successful model. Only a couple of the corporates have been able to provide a level of service and commitment to their bodies corporate comparable to that which has traditionally been provided by the original model.

Whilst I have no sympathy for those corporates which failed through their own greed and disregard for unit owners, I an concerned for the many other managers out there who have suffered because of the general angst in the management rights community that these corporates have created. Their deeds, or more correctly misdeeds, generated an awful lot of bad will towards our industry and gave some backing to the claims of some small but vocal anti management rights proponents openly critical of the industry.

Minority interest groups, extremist body corporate managers, greedy lawyers and others jumped on the band wagon attacking managers for all sorts of trivial issues. It is testament to the strength of the industry and the security of the legislative protections that except in one or two extremely isolated cases where it seems there was justification for doing so, these groups have not succeeded in terminating agreements.

Hopefully with the disappearance of most of the corporates from the market, the unit owners' angst will gradually dissipate. I do get the feeling that as we are coming out of the recent global financial crisis, there are and will continue to be less disputes than we saw in the past couple of years.

John Mahoney

This industry offers great flexibility in allowing people to decide on their future career or lifestyle options. During our time, we see many opportunities for intended purchasers, from running multiple properties, to a partnership of couples looking for variety

and to the older couple looking for more of a caretaking role. Talk to your partner or friends - one of these options may be of interest to you now or in the future. Remember, management rights revolves around 2 principles - systems & people. Once you have

put in place the systems required daily, weekly and monthly and the requirements of your tenants, owners and body corporate - you need to ensure that you enjoy dealing with people. This is the key ingredient that will add value to your business and the experience.

Scott Wicks BBus MBA
Director - Business & Property Services
email: scottw@agbris.com.au
Archer Gowland

www.raasrights.com.au • www.raas.com.au