Strata Management

Do we Have What it Takes to Become a Profession?

5 Minutes
September 26, 2024

The call for strata management to become more professional has been constant and has come from within for decades. In recent months the call has become deafening. The time has come to discuss what is a profession, why become one, how do we become one, and where are we on the path.

The research library at Professional Services Council provides helpful academic work on professionalism which is summarised and cited below. 

What is profession 

The classic definition by Pound (1953) is that a profession is ‘a group pursuing a learned art as a common calling in the spirit of public service’. 

Why become a profession? 

Professions enjoy the benefits of the ‘professional regulative bargain’ – in return for servicing society, professions enjoy relative independence, power, prestige, and generous remuneration (Smith and Rogers). 

How do we become a profession? 

There’s a well understood pathway to becoming a profession. Professionalisation is the process by which an occupation becomes a profession (Chellew, Rogers and Smith). The Professional Standards Council (PSC) has developed the 5 E’s that must be achieved to claim the prize, although ultimately, it’s the public that decides, not the members or government (Chellew) -

  1. Education - specific technical skills taught at university level 
  2. Experience - minimum personal capabilities and competencies 
  3. Ethics - standards of practice and conduct that go beyond mere replication of statutory duties and have an element of higher purpose 
  4. Examination - mechanisms by which the elements above are assessed and assured to the community
  5. Entity - the formation of a peak body at a national level to take responsibility for the development of the professional infrastructure

Where are we against the 5 E benchmark for professionalism? 

The good news for strata management as a profession is that we have made a start on all five but there is much more to be done. 

Split education curriculum from real estate agency

The national curriculum for strata management education needs to be split from real estate agency. A diploma level course needs to be written which could morph into a university elective subject.

Practitioner capabilities and character requirements are well defined 

Membership of Strata Community Association Australasia (SCA) and Real Estate Institute (REI) strata chapters have well defined personal capabilities and competencies. We have no problems on this front. 

Ethical standards need to be enlarged 

Present ethical standards / charters do not go beyond what the law requires. Some don’t even get to the common law standard for fiduciary agents. These standards need a stretch. 

Lobby for a national strata standards board 

Self-regulation would be improved by a national strata commission. This should be separate from peak body representative groups and hold these groups accountable. Professional Standards Schemes (PSS) do not do this work. PSSs exist to lift professional standards and limit civil liability, not to enforce professional standards. 

We need a new national strata management body to lead the way 

We have two national entities vying for peak body status for strata management, SCA and REI, through state entities and strata chapters. The SCA is a shambles. However, reluctantly, I think the REI is not the right fit for strata management as a profession.

The REI is long established, credibly regarded by government and the public, and well-resourced but its purpose is to serve the sale and management of single owned property. Strata management is fundamentally different. It's about the collective management of multi owned and used property. It is far more complex. Real estate agency is to strata management as fish are to nuclear physics.   

So, there we have it. There is much to do but, as the US presidential commentators say, there’s a clear path to victory. I’m up. Anyone with me? 

Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.