ResortNews, October 2019 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 278 | October 2019 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Sandcastles Noosa:

Doing it right...

The Ritz on the Beach Resort: Experience shows

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The legal stuff...

The views and images expressed in Resort News do not necessarily reflect the views of the publisher. The information contained in Resort News is intended to act as a guide only, the publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. We recommend professional advice is sought before making important business decisions.

Inside our October issue FRONT DESK Editor's Note: Win or lose… ................................................. 05

Advertising Conditions The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement. The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material.

Disclaimer Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein. Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law. Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties. © 2019 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the written consent of the publisher.

INDUSTRY

News in Brief… .......................................................................... 06 Person of Interest: Barry Turner.........................................12 Industry Q&A: Insuring against what if's........................14 ARAMA Report .........................................................................16 State Report .............................................................................. 17 BCCM Report ............................................................................18 SCA Report ................................................................................18 MANAGEMENT Legal Ease… ............................................................................... 20 Thinking MR...............................................................................21 By All Accounts ....................................................................... 22 Motel Market ............................................................................ 23 The principles of auditing ....................................................24

Strata Trends ............................................................................ 25 Intonet ........................................................................................ 26 Five creative ways to promote your accom ................. 26 The real impact of housekeeping on your reputation ................................................................. 28 First impressions count ....................................................... 30 TOURISM

PO Box 1080, Noosaville BC, Queensland, Australia 4566 Phone: (07) 5440 5322 Fax: (07) 5604 1680 mail@accomnews.com.au www.accomnews.com.au

EDITOR Trish Riley, editor@accomnews.com.au STAFF WRITERS Kate Jackson

Tourism Report… ..................................................................... 32 The Last Resort ....................................................................... 35 International Tourism ........................................................... 36 EVENTS & APPOINTMENTS Events… ....................................................................................... 38

DESIGN & PRODUCTION Richard McGill, production@accomnews.com.au

Appointments .......................................................................... 38

ADVERTISING Stewart Shimmin, advertising@accomnews.com.au

DEVELOPMENTS:

SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au

Development News ............................................................... 40

CONTRIBUTORS Andrew Morgan, Arvo Elias, Chris Irons, Col Myers, Grant Mifsud, John Mahoney, Lynda Kypriadakis, Mike Phipps, Simon Barnard and Trevor Rawnsley, John Punch, Nick Smith, Cloe Matheson and Tikky Dawwalee Davies.

PROPERTY AccomProperties Sales Report ........................................ 42 New Manager Profiles .......................................................... 43 PROFILES

KEY Commercially funded supplier profile or supplier case study Supplier information or content Suppliers share their views in one-off, topical pieces General editorial. Case studies and features may cite or quote suppliers, please be aware that we have a strict ‘no commercial content’ guideline for all magazine editorial, so this is not part of any commercially funded advertorial but may be included as relevant opinion. Happy reading!

52 FRONT DESK

Sandcastles Noosa: Doing it right... ................................ 48 The Ritz on the Beach Resort: Experience shows .................................................................. 52 THE PREFERRED SUPPLIERS DIRECTORY

ResortNews | October, 2019

EDITOR'S NOTE

Win or lose… Image: © Gajus, stock.adobe.com

While conducting research and compiling the content for this issue, I became increasingly aware of the marked escalation in unease and industry disputes occurring between managers, committees and bodies corporate. Is it a lack of understanding, a lack of clarity regarding agreements and duties; perhaps a lack of training, bias, ego, prejudice or greed? Poor communication, a relationship breakdown, the loss of reason – both in thought and action. Or is it, and this prospect begger’s belief, the deliberate manipulations and machinations of rogue individuals or organisations based on vested interests? Whatever the source, constant conflict within a scheme is definitely not in the best interest of any party. Resolving a problem before it becomes a dispute and communicating effectively is important for all stakeholders – we all know the mantra ‘communicate, communicate, communicate’… but the prospect of building relationships offers limited hope.

October, 2019 | ResortNews

•

Trish Riley, Editor

editor@accomnews.com.au

It is however, at this juncture that three heads may be better than two. Mediation is widely accepted as an effective means of resolving commercial disputes, both amongst the legal profession itself and increasingly amongst clients involved in the dispute. And as a dispute resolution tool mediation cannot be underestimated. Mediation is not neutral. The process itself is full of implicit principles and valuable life lessons. Without even realising it, mediators are promoting the following principles: •

That everyone’s views should be heard and respected

•

That listening respectively to someone else makes them more likely to listen to you.

That civilised discourse usually leads to peaceful problem solving.

and it's important that all parties

That understanding other perspectives expands your ability and range for finding richer solutions.

to work through the dispute.

That a win-win solution is often possible through the sharing of ideas.

The basic tenant of mediation is that both parties have the autonomy and feel empowered to make the decisions instead of giving up that power to a neutral third party. It is paramount that mediators not be looked at as the “decision-maker” – the mediator is simply there to guide the conversation to help the parties themselves make the decision. It is also important that the mediator remain neutral and impartial during the process. If the mediator has a prior relationship with one person, or the attorney mediator has given legal advice to one person prior to the mediation, then the mediator should recuse themselves. Mediation is voluntary. Simply because someone showed up to mediation once doesn’t mean that they will come back. They can leave mediation at any time

FRONT DESK

recognise that they are there because they want to be there Courts are public; mediation is confidential. The parties involved are required to sign an agreement that everything that is said and done in the mediation process is confidential and will not be disclosed to anyone. Some mediators even choose to shred their files/notes after the mediation to take this promise of confidentiality one step further. And last but not least, an agreement reached through mediation is always less expensive than continuing to litigation, a potential appeal and possible loss. As rational people, we all possess powerful tools that can, if willing, change the outcome of these misunderstandings and stand-offs. We need to challenge ourselves to find ways to make mediation a universal life skill and core value for the long-term good of the industry. Please enjoy this issue.

NEWS IN BRIEF

Owner collaboration turns the tide on power tower row In a ground-breaking turnabout and win for management rights, the body corporate committee of one of the Gold Coast’s most prestigious towers — Grand Mariner Resort, was ousted in a landslide vote against them. Earlier this month, the fouryear battle for control of the management rights turned nasty and personal ahead of the AGM. Faced with the prospect of having the management rights agreements terminated, a rebel group of apartment owners at the luxury residential resort on the Surfers Paradise riverfront launched a bid to oust the existing body corporate committee. The rebel group, calling itself the Owners Symposium, last

“Once owners/residents were made aware of the facts of the situation they came out in full support of retaining the resident managers at an overwhelming two thirds in favour.

month delivered a 13-page broadside to all 194 owners levelling allegations against the body corporate, and in a complaint to the Body Corporate Commissioner, it alleged concerns about spending, property reputation and asset value, and a lack of transparency. The Symposium’s letter to residents also cited the body corporate’s suggestion for the building manager’s contract

not to be topped up as well as the suggestion of an “agenda to remove the building manager in order to be self-managed”. The anonymous Owners Symposium urged owners to replace the body corporate with new committee members at the AGM while the body corporate hit back with its own one-page letter to all owners saying it disagreed with “practically every claim made”.

A spokesperson for the Symposium said: “Most owners and residents don’t understand the complexity or all-consuming nature of the manager’s role, or that they are generally on call 24/7. There is an intrinsic value for all community title buildings in having a knowledgeable resource dedicated to the maintenance and operation of a complex. We are very pleased with the result.” The exclusive residence, with a sinking fund worth an estimated $2 million plus, is normally a haven of tranquillity with 24/7 security, resort-like pool features, tennis courts, full gym and heated indoor pool.

Surf legend delivers giant swell for Sunshine Coast tourism A $100 million Kelly Slater Surfing Ranch boasting tourism accommodation, event and training facilities, public open space and an environmental experience centre is to be built at Coolum on the Sunshine Coast. The ranch, the first outside of the US, is likely to establish the Sunshine Coast internationally as Australia’s surfing capital. World Surf League (WSL) and a development partner have earmarked a large parcel of land close to the Sunshine Motorway at Coolum and ten minutes from the Sunshine Coast Airport for the ambitious project. The original Californian Kelly Slater Surfing Ranch, developed by the 11-time surfing world champion to create the perfect wave environment for practice and feedback monitoring, can only be used for six months of the year because of rapid

INDUSTRY

temperature falls through winter. WSL General Manager Andrew Stark said the seasonality had prompted the search for a new location, saying: “We picked the Sunshine Coast because of the temperatures year-round and the DNA of the area. Visit Sunshine Coast CEO Simon Latchford said the announcement was a reflection of the Queensland region’s reputation as a premium sporting destination. “Having a global name associated with such a high-tech surfing project could really elevate sports tourism to new levels on the Sunshine Coast, attracting international teams, training camps and surfing fans,” he said. The announcement comes in the same week that the Sunshine Coast was confirmed as the venue for the 2021 ‘Aussies’, Surf Life Saving’s premier surf sports event, and follows the announcement of a bid by the Sunshine Coast, Brisbane and Gold Coast to host the 2032 Olympic Games. ResortNews | October, 2019

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Short-stay body slates “onerous” fire rules as Airbnb champions safety Image: © Aleksei, stock.adobe.com

Hong Kong tourism witnesses worst plummet since SARS outbreak

Image: © Aiden, stock.adobe.com

Hong Kong’s tourism industry is being dealt a severe blow by the ongoing protests in the city, which are now in their 16th week. According to new reports from multiple news organisations, including Bloomberg and The Wall Street Journal, tourist arrivals to the city plummeted by almost 40 percent or 3.5 million visitors from one year earlier. That’s the most significant year-on-year decline since May 2003, when the SARS epidemic was impacting Hong Kong and visitation dropped by 70 percent. Financial Secretary Paul Chan placed the blame for the current decline squarely on the continuing protests. “The local social events of the past few months, especially the continuous violent shocks,

blocking airports and roads have severely damaged Hong Kong’s international image as a safe city, trade, aviation, and financial centre, and have also hit the local economy, including tourism. The impact on the retail and hospitality sectors is particularly severe,” wrote Chan. Hotel occupancy rates in some areas fell by more than half in August, Chan wrote, bringing room rates down by between 40 to 70 percent. Perhaps the most worrying fact, said Chan, is that there does not seem to be any promise for improvement ahead. The protests do not show any sign of stopping even though Hong Kong’s Chief Executive, Carrie Lam, has formally withdrawn the extradition bill that initially triggered the movement. Source: TravelPulse

A leading short-stay association says NSW’s plans to regulate the industry include fire safety standards that are overly restrictive and make compliance too expensive. The Australian Short Term Rental Association (ASTRA) says the state government’s draft fire safety standard, part of a package of short stay reforms likely to become law in 2019, will have a significant impact on the number of properties listed across NSW because it is “onerous”. “It is inflexible in not recognising compliant tenyear battery-operated smoke detectors. Many owners will find the compliance too expensive,” said ASTRA in a response to the draft plans. “There is no evidence that short term rental accommodation poses any greater fire risk than any other complying residential use.” The response coincides with Airbnb’s rollout of a new online community safety hub, a collaboration with Crime Stoppers Australia, Surf Life Saving Australia, Kidsafe Australia and the Centre for Internet Safety putting safety and security at the heart of its agenda. The home share giant, due to list publicly on the stock market next year, has collated advice about water safety, responsible use of the internet and security checklists on the new hub. It also includes a law enforcement portal designed to help police and emergency services track legal requests and gain speedy access to status updates

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and email notifications. Brent Thomas, Airbnb’s head of public policy for APAC, said: “Negative incidents are rare on our platform but even one incident is one too many, so we want to be a responsible player and ensure that everyone (guest, host and neighbour) stays safe.” A series of November safety workshops in Melbourne, Sydney and Brisbane will feature representatives from each of the collaborators discussing how hosts can take to better equip guests with safety information and resources. As Airbnb has grown, the short stay sector and government regulators have come in for sustained criticism by individuals and industry bodies for their failure to protect guests’ safety and privacy. Now government’s around the world are looking to regulate the sector by bringing safety requirements into line with those of traditional accom providers. “This is a global initiative that helps us act as a good corporate citizen,” Mr Thomas said. “All requests for user information will be handled and evaluated in line with our existing terms of service, privacy policy and law enforcement guidelines, so that will protect our guests and hosts but also allow agencies to do their jobs. As part of that global tightening of regulations around short stay, the push by NSW to see the sector covered by a new fire safety standard has been supported by leading accommodation representative bodies. ResortNews | October, 2019

Body corporate biff ends in $2000 fee A disgruntled unit owner who sought to oust his body corporate has been dismissed by the watchdog — and ordered to pay $2000 in fees.

described Mr Matthews’ points as “disorganised and difficult to comprehend”. “I am not penalising the applicant for the nature of his application, it just simply makes it difficult to wade through his material to get to the point of his arguments,” the adjudicator wrote.

The adjudicator for the Body Corporate Commissioner was scathing in the assessment of 46 pages of complaints submitted by a Sandown resident, and called for an end to a decade-long war among residents. The applicant, Trevor Matthews, wanted an administrator appointed for the Mermaid Waters complex (Gold Coast) and for the existing body corporate to be dissolved. He had made eight similar complaints to the commission over the body corporate, going back to 2001. In the most recent application,

“Much can be said for brevity and a concise summary of arguments.”

Image: ©Андрей Яланский - stock.adobe.com

concerns included alleged breaches, the exclusion of other residents from meetings, inaction of the committee, and issues with insurance claims. Mr Matthews also alleged there was a “high degree of

factionalism and hostility between lot owners”. In the decision on the matter, which ultimately dismissed Mr Matthews’ claims and awarded $2000 to the body corporate, the adjudicator

The adjudicator raised concerns about the number of submissions that had been made by Mr Matthews in the past. “I agree with the applicant in the conclusion to his initial submission that, ‘it’s time the disputation stops’.” Mr Matthews was given 30 days to pay. Source: GC Bulletin

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Port Douglas resident letting agent in court

Has the Ralan gem lost its sparkle? The great Ralan selloff is under way, with receivers putting the management rights to the collapsed developer’s Ruby Apartments tower in Surfers Paradise on the market.

Receivers have taken over the operation of the Ruby Apartments tower, which was completed 10 months ago and has been run as a hotel-style property. The building’s food and drink outlets, including Stones Bar & Grill, have been closed and Ruby guests are no longer allowed to use the water park and play area at the adjoining Ralan-owned Paradise Resort — the property is in the hands of a different receiver.

They have launched a quick-fire campaign to sell the rights to the 230-apartment tower, with would-be buyers having only days to put up their hands. Ralan failed in late July, owing at least $500 million and leaving hundreds of buyers of apartments on the Gold Coast and in Sydney at risk of losing nearly $280 million in deposits.

The move is seen as a prelude to sale campaigns by groups with exposure to the properties including Westpac, Wingate and Balmain. Source: GC Bulletin

Port Douglas resident letting agent Damien Bernard Dunlop was ordered to pay $33,398.77 in fines and compensation by the Mossman Magistrates Court recently for making unauthorised transfers of trust account money, making a false representation and providing false information on an official document. Mr Dunlop pleaded guilty to 39 charges brought by the Office of Fair Trading (OFT) for breaches of the Agents Financial Administration Act 2014 and Property Occupations Act 2014. The court heard that between January 1 2018 and June 1 2018, Mr Dunlop failed to bank cash

into the agent’s trust account by the end of the following business day – a requirement of the law regulating the Queensland property industry. Mr Dunlop also provided false information on an official ‘Appointment to Act’ form and continued to act as a resident letting agent on behalf of numerous clients when he had not been properly appointed to do so. The court further heard that Mr Dunlop charged property owners for expenses for amounts that were much higher than the owners agreed to on the appointment forms and provided a document to an OFT official containing information that he knew was false or misleading, and that he had made false representations about a property to a prospective buyer.

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ResortNews | October, 2019

AccomProperties launches investment property sales and rental agency Image: ©knssr - stock.adobe.com

Leading digital management rights property portal AccomProperties has launched a new investment property sales and rental agency for resident managers. The AccomProperties Sales & Rentals platform effectively provides direct access to the largest real estate websites in Australia including realestate. com.au and Domain, as well as industry leading tools and resources to ensure smooth transactions. “By partnering with AccomProperties and joining this growing portal, licenced resident managers will effectively be given the tools to protect their letting pool as well as the opportunity to earn extra income by selling units within their own building. In doing so, resident managers will have more control of their business,” said Mike O’Farrell, chairman of MLR Services. “The timing of this initiative is fortuitous with managers being under increased pressure to demonstrate additional value to lot owners, and the more streamlined this process can be, the better.” October, 2019 | ResortNews

Early adopters, Barend and Lizelle Buitendach of Emerald Springs are thrilled with the platforms ease of use, and access to other facilities including Realworks, TICA, Price finder and 1 Form. “The AccomProperties Sales and Rentals service provides managers with extra benefits when managing rentals. To be able to conduct searches and compete on a level playing field is invaluable when trying to build up your own letting pool. It also provides an opportunity for managers to open dialogue with new owners and potentially get them on board as they don’t have to bear any of the cost. “Obviously the early registration and membership discounts are a great advantage at the moment,” said Lizelle, “but we’ve seen the benefit already having received rental applications straight away.” Speaking of the initiative, Eric van Meurs, president of peak industry body ARAMA said: “All resident managers, and in particular ARAMA members, should be excited about this initiative. The ‘easy-to-navigate’ system allows managers to be more efficient in what we do - generating more revenue for owners and ourselves. “From a value perspective,

these are real costs that we would normally have to pay. I would encourage all managers to take up the opportunity to get their rental properties listed, and if fully licensed then those that come up for sale as well. The platform could be a revenue generator and means of managing the rental pool. “AccomProperties is a wellrespected platform that has extensive industry knowledge and experience and we are very happy to be able to partner with them in taking it to market.” CEO of ARAMA, Trevor Rawnsley added: "AccomProperties has shown tremendous backing for the management and letting rights Industry by enabling ARAMA members to connect to realestate.com.au, Domain and other portals at a reduced rate. ARAMA members can save as much as $440 per annum if all they wish is list some long-term rentals and more if they are wanting to expand the service to list residential sales and lettings. "Protecting your letting pool has never been more affordable or easier than with the new platform and we are grateful to AccomProperties for offering these exclusive deals to ARAMA members.”

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AccomProperties principal, Patrick Clarke said: “We have been working hard towards the launch of this extraordinary new marketing resource to ensure resident managers have every opportunity to experience a smooth and successful sales and rental process and are thrilled to already have 35 resident managers signed up. “It is envisaged that the sales and rental marketing portal will grow and develop as we extend the membership and we are happy to announce that we are actively recruiting right now - so register online today…” https://accomproperties.com. au/register/resident-managers AccomProperties is part of the Multimedia Group; proud publishers of industry leading publications Resort News and AccomNews, as well as industry sponsors. A family owned business that employs a dedicated group of professionals with an extensive industry history, network and contacts as well as a genuine commitment to the industry. For further information please contact, 07 5440 5322 or mail@accomproperties.com.au

Barry Turner: A man of principle By Trish Riley, Editor

The name Barry Turner is as synonymous with management rights as tourism is with Queensland, and in a career that spans more than 25 years he has painstakingly and professionally contributed to the development and wellbeing of more than 1000 management rights businesses. It is however, the 25 years spent in the motor industry, 15 of which were in his own business, that he attributes his affinity for detail. Setting up maintenance and repair schedules and time and motion studies for four mechanics, as well as preparing quotes for repair work and itemising invoices created a habit of developing systems that work.

Always one step ahead, Barry says he saw the writing on the wall with regard to motor computerisation and so in the early 1990’s he sold his freehold garage before dabbling in a number of ventures including three years in real estate, before purchasing his first management rights. Barry clearly remembers how generic the agreements were then and experiencing first-hand the shortfalls in the industry relating to the caretaking of common property; and in particular the lack of specific schedules of duties in management rights agreements, so he set about providing practical solutions that would benefit both sides of the management rights agreement. In 2003, together with the late Del Linkhorn - himself a strata and management rights veteran, Barry formed Building Management Consulting Services (BMCS). Together they developed systems and a number of professional services to address the selfsame issues that are still causing disputes between bodies corporate (owners corporations) and managers today. Now with a combined 50 years of industry experience between them, the BMCS team effectively provide independent assessments and reports across a number of circumstances; whether it’s a market review of remuneration under the terms of an agreement, an update to the schedule of duties for an agreement extension, preparation of a schedule for a new agreement, or an assessment to help resolve a dispute. “Management agreements are often still far too generic in nature,” says Barry. “It is not a simple industry where one size fits all.

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ResortNews | October, 2019

“The problems tend to start with the developers and how the original agreements and disclosure statements are set up to enable them to sell off plan. Ideally, that’s the time when a comprehensive time and motion study should be conducted.” Although local legislation can vary, the duties and responsibilities of management and maintenance are based on the size or type of complex (high-rise, walk-up, townhouse/villa, commercial, etc.), the location (beachside, CBD, suburbs, etc.), the usage (holiday/ short term letting, corporate letting, owner/occupier, etc.), the infrastructure and the recreational facilities. In other words, while State and Territory rules are a factor in an assessment, the key focus must be on the unique features of the property. “No two complexes are the same and over the years of involvement in this industry we have identified in excess of 2,550 individual duties that have to be performed across all ranges of complexes. A high-rise complex between 20 and 30 stories can have anywhere between 150 and 180 individual duties to be performed depending on the extent of recreation facilities and infrastructure and there are complexes where the duty count exceeds 200,” he says. “These duties are spread over individual areas of responsibility such as management and administrative services, driveways and car parking facilities, lawns, gardens and landscape features, common area cleaning, security and emergency services, infrastructure management, workplace health and safety, swimming pools, saunas and spas, as well as maintenance, repairs and services. “A building is not just a concrete, steel and glass structure, it requires infrastructure to keep it operating such as lifts, pumps, airconditioning, electrical services and all that equipment that we refer to as mechanical, electrical and hydraulic services that have to be serviced and maintained by specialist contractors. In addition to everything else, there are in excess of 180 infrastructure features spread across all types of complexes that a manager has to ensure are being regularly serviced and maintained by specialist contractors. “Then, when you consider that October, 2019 | ResortNews

Body Corporate Community Management Legislation.

No two complexes are the same and over the years of involvement in this industry we have identified in excess of 2,550 individual duties that have to be performed across all ranges of complexes.

there are in excess of 80 different types of recreational facilities such as outdoor swimming pools, indoor swimming pools, saunas, spas, tennis courts, BBQ’s, gymnasiums, etc, it is easy to understand that no two management rights are the same as no two buildings/ complexes are the same. In terms of location, a short-term or holiday-let complex on the beachfront will require more caretaking and maintenance than a similar building in the CBD that is owner occupier and long-term rentals as there is a higher level of activity in the short-term beach front complex than the CBD complex and the beach front complex is usually subject to more extreme weather conditions. The help of an experienced, qualified third-party professional can be invaluable in reaching agreement on issues of duties and remuneration. After site visits, interviews and a rigorous time and motion study, BMCS will provide a written report with justifiable recommendations based on industry standards and market rates. “The unique value in what we do,” adds Barry, “is the level of painstaking detail that results in no “grey” areas when interpreting a schedule of duties. Our objective is to ensure both sides have a clear picture of what the facts are in the hope that they will get around a table and find a solution before the lawyers get involved. “I specialise in consultancy and reviews of building management agreements that focus on ensuring that the caretaker

or manager’s remuneration is absolutely fair for the job they’re being asked to do. “And when I say “fair”, I don’t mean favourable to the manager or favourable to the body corporate for the building complex in question. I mean a fair remuneration for the work and responsibilities laid down in the management agreement. Individuals come and go, but the complex stays – the key is to stay focused on calculating the right return for the services being demanded. “That’s why BMCS clients come from both ‘sides of the fence’, they know we’re not biased.” Barry’s relevant qualifications include certificate level qualifications in real estate contract law and marketing, real estate practices and management, body corporate management and workplace health and safety, as well as a diploma of accreditation auditing under the Australian Building Management Accreditation Code (ABMA). He is also a life member of Australian Resident Accommodation Managers Association (ARAMA) having held the position of president of the Sunshine Coast Branch of ARAMA for three years and State President of the Queensland Branch of ARAMA for a further three. Other industry appointments include two years as a Board Member of Tourism Sunshine Coast and representative for the management rights industry on the Queensland Government Consultative Committee during the drafting of the 1997

INDUSTRY

“I have (and need) a lot of relevant certifications to be able to carry out these reviews,” adds Barry, “however, they are not why I do such a thorough job. My real expertise comes from experience. It comes from the years I’ve spent as a resident manager, actually doing and understanding the job from the ground up. It comes from the years I’ve spent in key roles in with associations like ARAMA, and the years I’ve spent providing consultancy services to bodies corporate, managers, caretakers, solicitors, strata managers, body corporate managers and developers in approximately 1000 strata-titled buildings/complexes from New Zealand to Darwin – all the while honing and developing a detailed and scientific time and motionbased methodology to assess resident manager remuneration. “If you’re going to engage an expert to prepare a report, you need to engage one who is truly independent, adopts sound methodology and has a thorough knowledge of the relevant complex and the duties in the agreement.” The role and responsibility are not ones he takes lightly. “Because of my history with ARAMA I get accused of favouring resident managers when conducting a review and preparing reports,” says Barry. “Nothing could be further from the truth. Our policy is to determine what is in the best long-term interest of the building or complex irrespective of who the manager, the committee or owners may be. “Managers change and owners change but the building remains the constant. “Furthermore, I will not put anything in a report that I cannot, or am not prepared to, defend under cross-examination in the witness box in a Tribunal or Court of Law, which I have done so many times.” Barry has given evidence many times in QCAT in Queensland, appeared before the Supreme Court in Queensland, and had reports before NCAT in NSW, the Supreme Court in Victoria and the High Court of New Zealand, and his impeccable records include information from close to 1,000 complexes that have been reviewed across both countries.

INDUSTRY Q&A

Q&A

Insuring against what if's

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Chris Traill, Executive Account Manager, EBM Insurance

What should resident managers and bodies corporate have in place with regard to insurance regarding ‘natural disasters’, and are there any anomalies they should be aware of?

Fire is a basic insured event that all property insurance, be it domestic or commercial is covered for as a baseline unless otherwise indicated by the insurance provider. However, insurance operates on a proximate cause basis, this is defined as “an active, direct and

With the ongoing incidence of fire affecting Queensland, and the recent loss of the iconic Binna Burra Lodge in the Gold Coast Hinterland, I spoke with Chris Traill, executive account manager for EBM Insurance Brokers about the insurance required to protect businesses facing significant claims.

efficient cause of loss that sets in motion an unbroken chain of events that brings about damage, destruction or injury without the intervention of a new and independent force.”

ensure they are sufficiently and adequately insured in the event of bushfires, which can come about through natural, malicious or accidental circumstances.

This is significantly relevant should the fire be deemed to have been caused by the malicious acts of an individual i.e. arson, as the insurance policy may contain terms and conditions regarding this event. I would encourage all body corporate committees and managers to review their insurance programmes with their insurance broker to

While fire can be devastating, it is important to also consider other risks to the body corporate property. The vast majority of claims in Queensland for strata titled buildings comes from water, specifically storms and cyclones. As a building grows older it is more prone to leaks brought about by heavy rain that enter the building

INDUSTRY

via aging roofs or defective windows. Once again, a storm is a basic event covered by property insurance be it domestic or commercial unless otherwise indicated by the insurance provider, but some insurers have recently taken to endorsing high excesses or premium increases specifically on water damage claims. A way to counter such increases is for the operator to demonstrate to the insurer that they have implemented appropriate risk management techniques in order to curtail such claims. ResortNews | October, 2019

Having an annual or biannual roof report done and any applicable issues addressed could potentially save them tens of thousands of dollars in insurance premiums and excesses.

What about insurance cover against unforeseen claims that may arise even after the managers have sold?

All management rights operators should hold public liability and professional indemnity insurance to protect them and their business in the event of either a bodily injury, property damage or monetary compensation claim against them. Whilst public liability is what is known as an ‘occurrencebased policy’, for example if someone is hurt on the premises or property is damaged and it occurred within the time the business was insured then cover is afforded even after the term of the insurance expires. Professional Indemnity is known

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as a ‘claims made’ policy, namely that if a claim for monetary compensation is made against the business then cover must have been in place not only when it was claimed to have happened, but also when the business is notified of it happening.

The first question raised then is how does one make sure they remain covered even after they have sold their business in the event they are notified years after the fact?

The solution to this is a product known as Run-Off cover. This product is purchased after the

manager has sold or closed the business, and acts as protection in the event they are approached by an individual claiming monetary loss against them or the former business. We recommend keeping this policy in place up to the statute of limitations in Australia which can range up to six or seven years after the event.

How important is liability insurance for both bodies corporates and management rights operators?

The importance of public liability insurance cannot be

understated when it comes to common areas within body corporate buildings. This directly relates back to the ‘Duty of Care’ that both the management rights operator and body corporate have to residents or guests to the property. Duty of care is defined as “a moral or legal obligation to ensure the safety or well-being of others” and is the expectation that all onsite attendees can expect to feel safe and remain uninjured. If this duty of care is breached, then public liability insurance must be in place to protect the business or body corporate from the ramifications of an injury, namely legal action against all parties. Public Liability insurance is provided as standard in all body corporate insurance policies, however I would encourage all bodies corporate to ensure they are insured for an adequate amount. For management rights operators the onus is on you to ensure that you have an effective public liability insurance policy to not only protect your business but also satisfy body corporate caretaking requirements.

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INDUSTRY

ARAMA REPORT

Building and bolstering your rent roll

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When it comes to long-term rental rolls, you can’t look beyond management rights as the most effective way of serving the interests of unit owners and tenants. Resident managers have an intricate understanding of the property, and they know the renters and buyers in the marketplace.

However, just because you have paid fairly for a management rights business, it doesn’t mean your rent roll is ever secure. Around 40 percent of Australians currently live in Community Title schemes – many of which are managed by resident managers – and this number is estimated to rise to 65 percent by 2025. The nature of management rights as a business puts operators in pole position to capitalise on this growth. However, they still need to protect themselves against the threat of external real estate agents and the loss of asset value or ‘leakage’.

Trevor Rawnsley, CEO, ARAMA

Defending and growing the letting pool is the single biggest difference to business cash flow and capital gain for management rights operators. In order to protect it, it is their responsibility to do everything within their power to demonstrate to owners that they are the most viable option for managing or selling their investment. Like any industry, specialists add value and resident managers have all the skills and experience of a real estate business but with the added knowledge of the property.

Australian Resident Accommodation Managers Association is the peak industry body representing the interests of people who are involved in management rights.

For membership enquiries:

national@arama.com.au | www.arama.com.au 1300 ARAMA Q (1300 27 26 27)

ARAMA’s Long-Stay Resident Manager of the Year, Michael Mitchell, sums up the situation well when talking about what makes a successful resident manager. “You have to become a subject matter expert on your complex, on property management and on property sales in the area,” he says. Not only do successful management rights operators

INDUSTRY

understand the local market, they also have strategies to navigate the impact of other real estate agents on your existing and potential customers. It is highly likely that external agents know, and are in contact with your unit owners – and that they will deploy a variety of tactics to remain visible and top of mind in order to win over their business. As a resident manager however, you are the best authority on their property within the market and you need to demonstrate this on a daily basis. You sit on the committee, understand legislation and requirements, the processes, and know what renters and buyers are seeking in the marketplace. The more you share information with your owners and anticipate their needs, the more you will empower them with the confidence that there is no-one better positioned than you to protect and manage their investment. Regular communication with owners also means having a strong idea of when properties are likely to be selling in order to pre-empt any influence of external agents. If you haven’t got a strategy in place to strengthen your rent roll, now is the time to do something about it – and fortunately we all participate in an industry in which help is only a phone call away. ResortNews | October, 2019

Unlike in Queensland where we have the Government prescribed POA Form 6, NSW has no standard form for an ‘Appointment to Let’ – particularly for short-term lettings. Consequently, there are many different versions of the agreements being used, including many that are not compliant with the requirements of the Property, Stock and Business Agents Act and its Regulations. The Act states that a licensee is not entitled to any commission or expenses from a person for services performed unless: the services were performed pursuant to an agreement in writing (‘Agency Agreement’) signed by or on behalf of the person and the licensee; the Agency Agreement complies with any applicable requirements of the Regulations; and a copy of the Agency Agreement signed by or on behalf of the licensee was served by the licensee on that person within 48 hours after the agreement was signed by or on behalf of that person. Many management rights operators do not cover off on all three parts of these requirements. The Regulations set out the required contents of Agency Agreements. The applicable schedules will depend on the services for which the agent is being engaged. In summary, the Agency Agreement must specify the following: Address of the property; The names and addresses of each of the parties (including the licensee); The licence number; October, 2019 | ResortNews

Entering into and signing a tenancy agreement; Undertaking inspections; Effecting repairs and maintenance; Paying disbursements and expenses; Collecting rent; Receiving, claiming and disbursing rental bond money;

Col Myers, Small Myers Hughes

Any business name under which the licensee conducts business; That the owner warrants that the owner has authority to enter into the agreement;

Serving notices for breach of tenancy agreement or terminating same; Taking steps to obtain vacant possession and recover monies owing to the owner; Representing the owner in any proceedings;

Particulars of the extent of the authority of the licensee to act as agent for the owner;

Paying accounts relating to the property;

Period for which the agreement remains in force or that the agreement remains in force until terminated; How and when the agreement can be terminated;

Advertising the property; Reviewing rent at the end of a tenancy.

The Letting Appointment may also contain additional terms, provided they are not inconsistent with the above requirements. Generally, legal advisers do not review the individual Letting Appointments unless specifically instructed. If you have not already done so, it is strongly recommended that you review any Letting Appointments that you are using to ensure compliance with the Regulations. If you are in any doubt, it is suggested that you obtain legal advice. Liability limited by a scheme approved under Professional Standards Legislation Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

 Structuring  Income Verification  Accounting/Taxation  Superannuation  Audit

Expenses: Specify that the licensee is entitled to reimbursement for expenses, a description of the expenses including amounts and that they cannot be varied except with the agreement in writing of the owner; Remuneration: Circumstances when the licensee is entitled to remuneration (whether by way of commission or otherwise), amount or the method of calculation and when the remuneration is payable; Manner and frequency with which the agent is required to account to the owner.

We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry.

The Letting Appointment must also set out the extent of the agent’s authority (including any limitations on their authority) to undertake the following in connection with the management of the property: Obtaining references, arranging inspections and choosing a tenant for permanently let complexes;

Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business?

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PO Box 391 WEST BURLEIGH QLD 4219 Phone: (07) 5534 4333 | Fax: (07) 5534 2081 reception@jonathangrant.com.au | www.jonathangrant.com.au

INDUSTRY

STATE REPORT

Letting appointments have you got them right?

BCCM REPORT

Ever get a feeling of abandonment?

SCA REPORT

Under the Body Corporate and Community Management Act 1997, there is no express provision about abandoned vehicles.

even the estate of the owner) returns to reclaim the vehicle.

That might require the body corporate to make some basic enquiries, starting with checking with all occupiers to clarify they don’t in fact own or operate the vehicle, or that the vehicle isn’t associated with a visitor to the scheme who can be located.

This is why I always recommend to bodies corporate which are considering towing to seek legal advice about where they stand if the vehicle is towed.

If it turns out that the owner of the vehicle can be located, then the body corporate would need to enforce its by-laws in relation to vehicles and parking.

It might not seem like an obvious body corporate issue, but abandoned vehicles are – judging from enquiries my office receives – a topic of increasing interest for bodies corporate as well as other owners. It’s easy to understand why: a car abandoned on common property for a prolonged period is taking up a car space, as well as likely causing an eyesore. There might also be safety concerns.

and not instead being parked in contravention of by-laws.

Assuming that the body corporate is satisfied the vehicle is abandoned, it then has some further considerations.

Chris Irons,

Commissioner, Body Corporate & Community Management

There are, of course, by-laws in relation to vehicles and parking and so as a first step, the body corporate should be assuring itself that the vehicle really is abandoned

One of the most obvious inclinations at this point is to arrange to remove the vehicle from common property, perhaps by towing. Deciding to tow a vehicle can have some significant liability implications for a body corporate and it needs to be remembered that even though the vehicle seems abandoned now, it might at some point be the case that its owner (or

Putting that aside, contact your local council to report an abandoned, unregistered vehicle and if there are concerns the vehicle has been parked in a hazardous way, contact the Queensland Police Service. Different councils may approach the issue differently. From the perspective of the Brisbane City Council, an abandoned vehicle can be reported online and council has a process of about six weeks to follow thereafter. More information about Brisbane City Council processes in relation to abandoned vehicles is available at: https://www.brisbane.qld. gov.au/traffic-and-transport/ parking-in-brisbane/abandonedvehicles. Please consult your relevant local council for the situation in other locations. While the body corporate committee might decide

Time to say goodbye After ten years on the SCA (Qld) Board, with seven as president, it is time for me to step down. I am saddened to be leaving the board at such an exciting time, but in addition to it being constitutionally impossible for me to continue in the role, it is the right time for another member to take the reins. SCA (Qld) and the strata industry has changed substantially over the last decade, and I’ve been fortunate to oversee the organisational response that has helped shape the sector. Over the years, I have built strong relationships with industry and government stakeholders, no doubt many

change for the sector and the broader strata community.

Simon Barnard, President, SCA, Qld

of whom remember me as someone consumed by issues regarding common seals and meeting notices. I represented our peak industry body at more than 100 meetings with government officials, and I consider it a tremendous honour and privilege to have done so at such an important time for the industry. Together, our efforts have resulted in meaningful

The challenges that the board and I have tackled have been varied; trying to create policies and implement new initiatives that satisfy all parts of the membership, raising the bar on education, and advocating for improvements and modernisations to laws affecting our great sector. The importance of these external aims cannot be overstated, however, one of the organisational changes of which I am most proud has been the adoption of a more member-driven approach. Technological advances and an increase in staff numbers since I assumed the presidency have allowed for detailed feedback on SCA (Qld) decisions, more extensive communication, and, most importantly, greater collaboration with members.

INDUSTRY

SCA (Qld) relies on volunteers to aid with submissions, event planning, and education output, so belief in the organisation and its aims are essential for us to be effective. As a result of this buy-in, we have been able to speak as one voice and firmly establish SCA (Qld) as the peak industry body. One consistent advocacy issue during my tenure was the ongoing Property Law Review. Although I am unable to see it through to its conclusion and will not be on the board when the changes come into effect, I will benefit from them both as a body corporate manager and a lot owner. SCA (Qld) has been extensively involved with the review since it began in 2014 and it has been pleasing to see most of our recommendations included in each subsequent Issues paper, as well as the recently released Draft Standard ResortNews | October, 2019

to make this report to the relevant council, there wouldn’t necessarily be anything preventing an individual owner from doing this themselves.

moving and relocating the goods into storage and the same considerations I noted above about towing vehicles might apply.

Similar to an abandoned vehicle is the issue of abandoned goods. For a body corporate, an issue might be if an occupier leaves the scheme and abandons goods on common property.

Beyond this, it should be kept in mind that there is not necessarily an automatic right to keep or dispose of abandoned goods. Legal Aid Queensland produces the following information about abandoned goods and the rights and obligations of those holding the abandoned goods:

I’d firstly direct bodies corporate to consider my advice above in relation to assuring themselves the goods really are abandoned. To be thorough about this, a body corporate might make enquiries with the relevant real estate agent, via any forwarding addresses or through other means such as a check of the electoral roll. It’s understandable that when goods are seemingly abandoned on common property that there is an eagerness to get rid of them, whether it be because they are an eyesore, because they are causing an obstruction or even because it might be hazardous to leave them there. Care should be taken about

Module. These modernisations will create better protections for the state’s ever-growing strata community, and I look forward to seeing the other draft modules released over the coming months. My last year in this role has been dominated by major failings in the building industry with combustible cladding the most reported strata issue. The draft cladding regulation initially presented to SCA (Qld) would have been more difficult to manage than the altered versions, so it’s noteworthy that our push for changes have at least resulted in meaningful alterations that had a positive impact on the day-to-day handling of this regulation. Our efforts were focussed on saving consumers unnecessary expense and removing obstacles from the process for strata managers. October, 2019 | ResortNews

http://www.legalaid.qld.gov. au/Find-legal-information/ Neighbourhood-and-property/ Abandoned-goods The Residential Tenancies Authority also provides information about abandoned goods in relation to tenants: https://www.rta.qld.gov.au/ Forms-and-publications/Factsheets/General-tenancy-factsheets/Goods-and-documentsleft-behind-fact-sheet.

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For further information please contact the Information and Community Engagement Unit of my office on 1800 060 119 or visit www.qld.gov.au/bodycorporate.

The advocacy power that unfolded over the year demonstrates that we are now respected and that the strata industry has a voice outside of the Department of Justice, our natural home with the BCCMA. These improvements could only have been implemented with an industry-wide approach. Thanks must go to all those who have helped the strata sector over the years, and it is heartening to see that we have so many members passionate about the future of the industry. It’s amazing what the various iterations of SCA (Qld) have been able to achieve over the past 35 years, and I can only imagine the changes to the sector in another 35 if we keep on doing what we do best.

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INDUSTRY

LEGAL EASE

Management rights: The developer’s role Lawyers acting for buyers of management rights are often faced with the task of trying to explain to their clients’ problems that they may face as a result of badly worded Caretaking and Letting Agreements. Much of this could be avoided if developers and their advisers took more care in preparing these agreements. Developers have a golden opportunity to set up the management rights in such a way that it will not create difficulties for building managers. The developer is in complete control of the body corporate at the time the original Caretaking and Letting Agreements are put in place. Unfortunately, where the developer’s lawyers are not management rights specialists, important aspects of the agreements are commonly overlooked. I have acted for many people buying units from developers and I have never found the content of these agreements to be an important factor in deciding whether or not to buy in a particular development. Of course, the agreements must be fair and reasonable to the body corporate; in fact, the Body Corporate and Community Management Act requires this. However too often a potential buyer of the management rights will find that the content of the agreements makes the decision of whether or not to buy a difficult one. In many cases

•

include the delegation of body corporate powers to the building manager which the body corporate has no power to delegate.

John Punch,

In such cases prospective buyers of management rights are faced with the possibility that some time in the future, their agreements could be unenforceable against the body corporate.

the content creates potential problems for the buyer because of ignorance of the law relating to management rights on the part of the developers and their lawyers, or a lack of consideration for the potential building managers commercial interests.

The following are some examples drawn from actual agreements which illustrate a failure on the part of those preparing the Caretaking and Letting Agreements to properly consider the commercial interests of the building manager:

Short, Punch & Greatorix,

It is important for the smooth future operation of the new complex that the management rights agreements strike an appropriate balance between the body corporate and the manager. Achieving such a balance makes it more likely that a complex will attract a quality manager, and thereby serves the interest of the body corporate also. In some cases, the content of the Caretaking and Letting Agreements indicates a failure on the part of those preparing them to appreciate that a body corporate’s powers are limited by the Body Corporate and Community Management legislation. Some agreements: •

•

duties that are so broadly worded they are bound to cause confusion between the body corporate and the building manager as to the extent of the work the building manager has to carry out to perform the duties;

•

a body corporate being given the power to set the hours during which the building managers office must be staffed;

•

a body corporate being given the power to force a building manager to transfer the managers unit and the management rights business to someone else when the Caretaking and Letting Agreements come to an end. This seriously compromises the building managers negotiating position when seeking extensions of agreements;

contain duties which require the building manager to carry out work that the body corporate has no power to pay for, for example duties relating to individual lots or even outside of the complex;

•

complicated duties in the Letting Agreement when all that is required is an authorisation to allow the manager to operate an onsite letting agency;

•

failure to give the building manager control over areas required for the proper conduct of the management rights business by freehold title;

•

allowing the body corporate to terminate the agreements if the building manager goes bankrupt, or if a company, is liquidated or put into administration. Because of the Gallery Vie decision, such provisions may make it difficult or even impossible to obtain financing for management rights purchase.

Also, such a provision is not contained in the legislative provisions allowing for termination. Developers and their legal and body corporate advisers must make sure the content of Caretaking and Letting Agreements is right before the selling of lots in the development starts. Developers are obliged to provide to buyers of lots copies of the proposed Caretaking and Letting Agreements. Any subsequent changes to the proposed agreements must be notified to contracted buyers each of whom may have the right to cancel a purchase if they will be materially affected by any of the changes.

Image: ©Chlorophylle - stock.adobe.com

MANAGEMENT

ResortNews | October, 2019

THINKING MR

The nature

of debt The character Polonius – a character in William Shakespeare's Hamlet counsels his son Laertes before he embarks on his visit to Paris. He says, “Neither a borrower nor a lender be; for loan oft loses both itself and friend.” Sage advice meaning do not lend or borrow money from a friend, because if you do so, you will lose both your friend and your money. (Polonius is chief counsellor to the king, and the father of Laertes and Ophelia. He is also generally regarded as wrong in every judgment he makes over the course of the play). I write this month’s stream of consciousness ramblings at 20,000 feet on my way home from New Zealand. Over the past few years I’ve become quite enamoured with the land of the long white cloud. Apart from the obvious downside of the place being full of Kiwis, it’s a decidedly pleasant and laidback destination. This trip entailed five weeks roaming around parts of the South Island with spots of hiking, tramping, skiing and eating thrown in. They take their alpine treks pretty seriously in NZ with magnificent scenery and equally impressive huts to stay in overnight. They seem to also have a great fear of avalanches judging by the signs, but I guess that comes with the territory. October, 2019 | ResortNews

Mike Phipps, Director, Mike Phipps Finance

I was on one of these hikes with plenty of time and solitude when my mind turned to you, dear reader. Well, not you specifically, more the dreaded deadline for this article and more importantly, what the hell would I write about this month. This random thought led to a debate in my head about the nature of debt. When I say in my head, maybe it was out loud but there was no one around to hear me, so I’m not officially crazy. Here’s the thing. We all borrow stuff. No money changes hands but there’s an implied contract that the borrowed item will be returned in a reasonable time frame and in the same condition it was in when borrowed. “Mate, can I borrow the ute?” has an implied agreement that it will be back before nightfall with a full tank of juice and at least an attempt at a clean. Same goes for mowers, although I think the habitual mower borrower needs a stern chat and directions to Bunnings. I’m filling in my immigration card on the plane and the bloke next to me asks if he can borrow my pen. Sure. We both know it’s coming straight back.

Now, I need to get some serious work done requiring all manner of manly devices. So, I go to Kennards. “Mate, can I borrow a chainsaw, a scissor lift and a box trailer?”. Not a chance, but you can hire them. Here are our terms and conditions, sign here and hand over the credit card.

gauge on full. Can you imagine any fair-minded Aussie bringing the ute back filthy dirty, a week late with an empty tank and a ding in the tailgate and then blaming his mate because he should have known he never looks after stuff?

Ah ha! So, you can borrow off your mates but you hire stuff when you have to pay and there are formal rules. So why do we borrow from banks I wonder? Surely if we are asking for the use of an asset that we are expected to return, on a formal basis with commercial terms involved, we are hiring, not borrowing. Of course, the beauty of hiring money from the bank is that you don’t have to give it all back at once (*usually, see side note below). Just pay the hire fee (interest) and return the asset over an agreed time frame.

*A word on loan terms.

Sounds like a pretty good deal to me. Imagine if I tried this with my friends at Hertz. I’ll need the car for a week and then I’ll drop the rear left-hand door in. In a couple more weeks the gearbox, and so on. In the context of most hire arrangements this bank money caper looks pretty accommodating. Yes, I am playing with an idea, but the core of my point is this. If we stop thinking about debt as borrowings and start thinking of it as money we have hired then maybe we will take more care, in terms of what we do with it. And maybe, just maybe, the average borrower will appreciate that just like the mate’s ute, it needs to come back in the same nick it was in, clean, tidy and with the fuel

MANAGEMENT

Me neither.

Banks will hire (lend) you money over a specific period of time. For the average punter buying a house that’s 25 to 30 years. Sometimes there’s an initial interest only period followed by a period of debt amortisation also known as P and I payments. Business finance approvals can often have a much shorter term, three years interest only for example. Many borrowers think that’s three years IO followed automatically by a term of P and I. Not so. If your Letter of Offer says three years then three years it is. At the end of the term the loan expires and is technically fully repayable. That’s known as a refinancing risk and it’s often offset by the shorter-term loan having a lower interest rate. Also, it’s worth understanding that your capacity to repay a loan is calculated on the total notional term less the period of interest only you have. As such, the longer the interest only period the more onerous the debt servicing hurdles become. If the longest term you can have on a business loan is 15 years and you take three years interest only, you need to be able to demonstrate a capacity to pay off the debt over 12 years.

BY ALL ACCOUNTS

Low interest rates

– is it time to review your ﬁnance? Image: © cacaroot, stock.adobe.com

On August 3, 2016, the cash rate was cut by the Reserve Bank of Australia for the second time that year to a mouth-watering 1.50 percent, and the greater populace shared the view that interest rates were obviously in free fall and they could all look forward to rates dropping quickly, which would help the economy. Cheap money was on its way. Cue to a date almost three years later and the RBA is holding steady at 1.50 percent and consumer confidence has not seen a major change. Worse still, with the 0.25 percent reduction in June 2019, followed by another 0.25 percent reduction in July 2019 to give us a cash rate of 1.0 percent, consumer confidence has dipped into full blown pessimism. Interesting really, as rate reductions usually make people happy and want to spend money. It would appear however, that consumers are not sure what to do with their extra money. They appear to be risk adverse at present, with adding to superannuation or paying down debt being touted as the best place to put additional cash reserves. What do you do when interest rates are falling and you have extra funds available? Do you buy a new car, boat or expensive holiday (for those that can take the time off!), or do you do the unthinkable and pay back some debt. Let’s go back to the start when you first borrowed the money to buy your business. What were

Interest only has become a term of warning now for most banks. Gone are the days where it was normal to have interest only on practically everything, from your own principal place of residence to an investment property or a business, and while banks will still offer interest only for a valid reason (of which there are plenty by the way), they will not accept, ‘because I want more money every month’ as a mitigating reason.

Nick Smith, Red10 Finance

Remembering that I am not a tax adviser or financial adviser, and I do not know everybody’s personal circumstances; a general rule is that the biggest expense in both consumer and business finance should be your mortgage/business loan.

your plans? How long was your business strategy? Was this a business for the rest of your working life or an investment for just a few years? Sometimes these plans change midway through owning the business and sometimes these plans change outside of your control. Knowing what your plan was from the start would have dictated what type of loan repayment you chose. A professional advisor would have considered your requirements and your goals and given you the best advice based on your circumstances at the time; albeit there were some that may have suggested that Interest Only was the only way to buy a business. In certain circumstances, depending on the strategy, tax position and succession plan, I may have agreed. Interest only loans require you to pay back just the interest charged on your facility, however the debt remains the same as when you first obtained the loan. A principle and interest (P and I) loan ensures that you pay back the total debt over the length of the loan contract, as well as the interest. Obviously, as you are paying both, your monthly payments are going to be higher than if you are paying just interest only.

When you borrow money from a bank, they will check that you can repay (amortise) the debt over a set contract term, usually at an inflated interest rate and sometimes with a reduction in your actual net profit. This ‘serviceability test’ will confirm that you can afford the repayments. Even when you choose interest only for a set period, they still calculate that you can amortise the debt over the remaining term, after the interest only period has finished. A key risk of taking an interest only loan and not paying back any debt however, arises if the value of your business reduces due to a decline in net profit, or worse, a decline in net profit and multipliers since you purchased. This could mean your business is now not worth what the bank based their security on. I would however, like to point out that in an increasing market, a loss of profit and a higher multiplier can balance each other out. A better scenario though would be to have

MANAGEMENT

your profits and multipliers up and you have that capital growth. If we stay with the pessimistic view for now, you could find yourself in a situation where you have lower profits coming in than when you first bought and a business value that has declined. The bank will then require you to make a large principal reduction to your loan so that their security is still in order, or make inflated principle payments over a set short period of time to have the same effect. Lower income, higher repayments - that might not be the greatest position to be in. With the RBA cash rate dropping, and by the time you have read this article there may well have been another cash rate reduction, now may be the ideal time to review your existing facilities and assess whether they are still on target to achieve your financial goals. With interest rates so low, it may pay you to do the unthinkable and put that extra money into your loan account and pay down some debt. Not only do you have less interest to pay, but you will also start building equity into your business quicker. Alternatively, you may have used the past few years of lower interest, kept your original repayments and built equity in your business and now is the time to utilise that equity. An ‘interest only’ client recently asked me whether they make their own principal payments. Absolutely you can, as long as you are on a variable rate. Now there is an idea, using interest only to your benefit for cashflow and then paying down the debt when you can, not when the bank says you must. Food for thought. ResortNews | October, 2019

Working together for longevity Image: ©ngad - stock.adobe.com

Whether it’s a car, house or motel, everything falls into a state of disrepair over time if not maintained or refurbished. Occasionally, motels that are leased experience the same; not because they are intentionally neglected, but because there may be doubt in the minds of the lessee and the lessor as to who is responsible for what. The ambiguity is generally because the lease document is not specific enough and is left open to interpretation creating problems for everyone involved. In a perfect world, these agreements would be clear, precise and in plain English so as not to create confusion, but in many cases they are not, and neither party wants to incur any costs when they believe the other may be responsible under the terms of the lease. Again, in a perfect world where both parties communicate, act reasonably and “give and take”, most of the repair, replacement and refurbishment issues are quickly and quietly overcome. Unfortunately, this is not Utopia, and where one or both parties are not willing to maintain their own asset, whether that is land and buildings or the business, each party ends up damaging themselves financially. Motels are subject to higher than normal traffic, with new guests coming and going most nights, and it needs to be accepted by both the lessee and lessor that wear and tear (fair or not) is going to occur over time and that a fiftyyear old motel is going to need far more TLC than newer properties - this needs to be budgeted for and accepted by both parties. October, 2019 | ResortNews

Understanding one’s lease is imperative.

As with any business, know what your responsibilities are upfront and if there is any doubt as to who is responsible for a particular matter under the terms of the lease, then both parties need to discuss it fully. It may be easy to pass it off and say “seek legal advice” on the interpretation of the relevant clause within the lease but that really should be the last resort.

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

The management of this maintenance and/or refurbishment program does however, need to be considered carefully. One doesn’t need to spend millions of dollars on an older complex to make it competitive, there are many low-cost methods in which accommodation complexes can be improved in order to maximise tariff and occupancy rates. To achieve a positive outcome there are four questions that are worth considering: What is the purpose of completing the job? It may be an urgent repair issue. It may be to lift the standard of the appearance/professionalism of the property. It may be a major refurbishment matter.

•

What needs to be done? Does one cracked tile need to be replaced or does the entire bathroom need to be retiled? Is it a repair or renovation?

•

Who is responsible for the cost? Under the terms of the lease who is responsible for the cost? Is it clearly defined within the lease or is it open for negotiation. Who will benefit most? If certain works are completed who will be the main beneficiary?

At the end of the day reinvestment back into a property (of any kind) is required by those with a vested interest. A lessee and lessor sitting down together and acting reasonably to achieve a positive result, as opposed to working against each other in these matters, is always the best way forward.

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

•

I would say seek advice only to

get an unbiased practical second opinion, besides the funds spent on legal fees when arguing over interpretation, would be far better spent on the property.

Over 40 years of service to the Management Rights industry, providing assistance in: Buying and Selling Ensuring Agreements Comply with the Law Agreement Negotiation with Bodies Corporate Representation to Licensing Authorities ‘Body Corporate & Community Management Act’ Advice Employee Dispute Resolution For expert advice please contact; Paul Jones John Punch Phone: 5570 9327 Fax: 5539 8745 Phone: 5570 9322 Fax: 5539 8745 paul.jones@spglawyers.com.au john.punch@spglawyers.com.au Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164 GCMC, Bundall, QLD 9726

MANAGEMENT

MOTEL MARKET

: s e s a e L l e t o M

The principles of auditing Image: ©Vitt aya_25 - stock.adobe.com

With the escalating incidence of defects (and disputes) occurring in the industry, it’s important that all involved have a better understanding of what is involved in an audit and how one should be conducted to achieve an objective standard in the strata sector. Auditing relies upon a set of principles to help make an audit an effective and reliable tool, whether the audit be of regulatory compliance; for example, defective building work in new buildings, or contract performance with regard to the delivery of caretaking duties under a caretaking services agreement. Ultimately, audits are carried out to provide information for organisations in order to improve their business performance, or for parties to a contract where delivery standards may be in question,

Lynda Kypriadakis, Diverse FMX

or even dispute. Either way, fundamental principles apply. Whether auditing a new building for defects or auditing the performance of a caretaking services provider against a schedule of duties, it goes without saying that the auditor must have an impartial attitude and should be free from any conflict of interest. The auditor should be honest and diligent about their work and be able to assess and provide a thorough report without any bias and/or prejudice. Auditors must also be able to work to an objective standard;

QLD - NSW - VIC - WA

that is, a standard that cannot be manipulated by either party. Examples of an objective standard include the National Construction Code or QBCC Standards & Tolerances Guides (for auditing building defects) or the Australian Building Management Code© (for auditing caretaking delivery standards).

– particularly when managing the influences exerted on the auditor’s judgement during the audit process. It all comes down to eliminating any perception of bias, and observance of relevant statutes along with references to the objective standard greatly assists in managing auditing integrity.

Adherence to principles, as well as empirical assessment against an objective standard, guarantees the production of relevant and sufficient audit conclusions. It also enables multiple auditors – working independently of each other – to achieve similar conclusions under similar circumstances.

Key to success: Refer to the objective standard when auditing, e.g. NCC for building defects and ABMA Building Management Code© for caretaking performance breaches.

ISO 19011:2018 Guidelines for auditing management systems International standards prescribe principled auditing standards, which can be applied to the process of auditing building defects in new buildings and/or the performance of a caretaker under a Caretaking Agreement. These fundamental auditing principles include:

Probably the most important aspect of fair presentation is reporting any unresolved diverging opinions between the auditor and auditee. If the auditee provides “reasons” (outside of their control) for non-performance issues or building defects, it is vital that the auditor reports truthfully and accurately to include all extenuating circumstances.

•

Integrity

•

Fair presentation

•

Due professional care

•

Confidentiality

Key to success: Report any significant obstacles or extenuating circumstances that may have contributed to the breach or defect, e.g. retrofitting of tenancy fit-outs causing passive fire defects which are not the original builder’s defect.

•

Independence

Due professional care

•

Evidence

•

Incorporating a riskbased approach

Integrity in the auditing process Maintaining integrity during the audit process requires great skill on the part of the auditor

Fair presentation

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A high level of expectation is placed on the auditor by client and auditee; the outcome of which may have significant repercussions. It should be remembered that both parties place a great deal of confidence in the auditor’s ability to adhere to principled auditing standards. ResortNews | October, 2019

Key to success: Ensure the auditor is trained, experienced and competent, as well as being up to date with regard to current legislative requirements. Accreditation to audit against principled auditing standards - and an objective standard – is fundamental – e.g. ABMA Accredited Compliance & Performance Assessor or Building Durability Consultant

Conﬁdentiality The proper handling of sensitive information and use of commercial discretion is the cornerstone of managing confidentiality in auditing. Principled auditors will protect confidential information, and will not use – or encourage the use of – audit information in a detrimental way or for personal gain. Key to success: Focus on the auditing process being employed as a tool for business improvement or success.

Independence The auditor must make every effort to remove bias and encourage objectivity. Adhering to the facts and the objective standard will assist. Independence (from the auditee, process or client) is a sound basis for impartiality of audit and objectivity of audit conclusions. Key to success: Ensure all findings are only based on evidence and facts. When expressing an opinion (i.e. that cannot be justified via the objective standard), this needs to be made clear in the report.

Evidence Evidence gathered can be one of the following evidence types: •

Elemental – observed via visual inspection

•

Documentary – verifiable in the form of compliance certification or records of maintenance

•

Anecdotal – unverifiable

October, 2019 | ResortNews

Key to success: - “One swallow does not make a summer” so evidence sample sizes should be appropriate and substantive enough to inspire confidence in the audit conclusions.

Incorporating a riskbased approach Newly introduced under the reviewed ISO 19011-2018 is the principle of incorporating a riskbased approach to the auditing process. Risk-based auditing focusses on the identification and analysis of risk, prioritising those risks posing the greatest potential for adverse impact. Key to success: Use auditing as a tool for prevention, rather than cure. Despite the assumptions and emotive responses that can occur, principled auditing should result in a positive outcome for both parties along with improved operation and reputation. If seen as a business tool auditing can be used proactively to manage expectations and avoid dispute. Sometimes the client is unaware of the relevant objective standard and may be in advertently holding their counterpart to a higher standard, and the audit process can be a great educator for all concerned.

Key safe row unlocks Airbnb conflicts A body corporate committee was found to have “failed to act reasonably” in refusing an apartment owner’s request to install a key safe to enable their Airbnb guests to access the unit because of fears that it would “open the ﬂoodgates” for similar requests. The recent adjudication order from the Queensland Office of the Commissioner for Body Corporate and Community Management highlights the need for strata schemes to carefully consider the implementation of by-laws in response to regulation of short-term rental platforms such as Airbnb and Stayz. Airbnb can be a contentious issue with strata communities as some owners are keen to take advantage of short-term rentals to gain additional income while others are concerned about potential problems such as security risks and noise from late night parties.

The greatest benefit provided by principled auditing however, is the detection of noncompliances and defects in order that they may be remedied in a timely fashion and further damage and/ or safety issues avoided.

The fact is bodies corporate are limited in their powers to prohibit Airbnb, which in Queensland is governed by more than 70 different sets of local government zoning laws. Some jurisdictions are relaxed about short-term letting, while others impose expensive planning approval requirements. And in yet another area, a zoning system has been proposed that would ban home sharing of entire properties from some parts of the council area.

In the instance that an audit is believed to be biased or unethical in any way, the aggrieved party may approach the ABMA Early Dispute Prevention Services to mediate on breach anomalies or make application to QCAT to seek orders to rescind the unethical report.

The advice for bodies corporate and strata community residents when considering Airbnb is to be across their local council regulations for short-term rentals, which can vary greatly from region to region, and to also be cautious when trying to enforce any by-laws that are really only in place to regulate the use of common property.

MANAGEMENT

Grant Mifsud, Archers

In the said case, the body corporate committee opposed the unit owner’s application to install a key safe on their apartment door as two other owners had already installed “unsightly” key safes without approval, and which the committee would be attempting to have removed. Despite finding against the body corporate in its adjudication and stating that it “failed to act reasonably”, the office of the commissioner said the apartment owner was still required to seek approval for the key safe and provide specific details about the proposed device and where it would be installed. “ “The committee would also be entitled to identify and consider alternative key safe products and installation locations from those proposed by the applicant”, the office of the commissioner said in its adjudication. “… Any other owner wishing to install a key safe on common property, or who has already done so, should apply for approval for their key safe”. Archers encourages property owners to seek professional advice on improving security in apartment complexes that now have regular short-term letting, previously not in place. Bodies corporates can make buildings more secure by having on-site security, surveillance cameras and restricting entry and lift access fobs.

STRATA TRENDS

An objective standard is measurable, justifiable, reasonable, repeatable, and most importantly, unable to be manipulated.

INTONET

The cost of lies Once upon a time, many years ago, my teacher told me that: "The worst part about being lied to is knowing that to that person, you weren’t worth the truth”. This mantra has stayed with me all these years. This ‘truth’ resurfaced recently when I stumbled across an NBCN article about smart speakers. You may have one of these devices at home; I know many of my friends do. Depending on your preferred flavour you can ask Siri, Alexa or Google all kinds of questions by just talking aloud. I am sure I don’t have to belabour this aspect - just be aware that it is not always necessary to use the trigger word to activate the systems intentionally or inadvertently. What raised my curiosity was that NBCN ran a test using each of these devices to see what kind of response they could extract from them. Unless you have been wandering in the wilderness for the past few years, you will know that security and its interaction

a wake word or perhaps hidden commands humans can’t hear. So, the presenter asked Siri, Alexa and Google Assistant if they were spying on him, and I will quote NBCN direct. The interchange with each device in turn went like this: “Hey Alexa, are you spying on me?” Arvo Elias, Cybercons

with privacy, as claimed by the distributors of this form of intelligence, is currently at the forefront internationally, and certainly in first world nations. A string of court cases and multibillion-dollar fines attest to this. Back to NBCN. Their test was very simple. The NBCN representative, by way of introduction, said that a lot of people are worried that voice assistants like Amazon’s Alexa, Apple’s Siri or the Google Assistant are spying on us at home. All three companies have said the ‘assistants’ are not listening all the time, but only listen for

Here’s what Amazon Alexa said: “I only send audio back to Amazon when you activate me. For more information, and to view Amazon’s privacy notice, visit the help section of your Alexa app or alexa.amazon.com”. “Ok Google, are you spying on me?” Here’s what Google Assistant said: “Your security comes first in everything Google does. It’s important Google keeps your data private and safe and puts you in control. You can learn more at privacy.google.com”. “Hey Siri, are you spying on me?” Here’s what Siri said: “Nope”. Looks like there is no room for joking here. It’s good that Amazon and Google direct users

to their privacy pages. Apple’s answer is a straight “nope” but maybe it should consider adding a similar response to Amazon and Google to provide users with more information. So, what’s the controversy? Bloomberg reported that Facebook paid contractors to listen to and transcribe audio clips from users who chose to have their voice chats transcribed by AI ( Artificial Intelligence) in its Messenger app. In seeking user approval, the company only presented transcription as a feature for users to have text of their spoken messages, and failed to mention that human transcribers would listen to their messages. Contractors who transcribed the recordings for Facebook told the news service they had no knowledge of where the audio was being recorded or how it was obtained, and had ethical concerns about the assignment. Facebook however says the contractors were checking whether the social media company’s artificial intelligence correctly interpreted

Five creative ways to promote your accom By Cloe Matheson, STAAH

In the crowded market of vacation rentals, you want your property to stand out. The question is how? Well, creativity can never fail to attract guests and promoting it the right way can get you more booking Thanks to your hard work and keen eye for detail, you know that your vacation rental is among the pick of the crop. But how best to communicate this to potential guests? Read on for some tips shared by guest writer Cloe Matheson on how you can achieve this.

Carving out a solid reputation for your vacation rental requires a little bit of thoughtful, savvy marketing 1. Provide free equipment for outdoor activities

kayaks, or tennis racquets are all great perks for guests who book your property.

As well as relaxing, people love to get out and get active in the local area while on vacation. An investment in some sports equipment for your guests can be a perfect point of difference in your promotion. Free use of equipment such as bicycles,

Carving out a solid reputation for your vacation rental requires a little bit of thoughtful, savvy marketing. You want to make it as easy as possible for your guests to see the hard work you do to create an inviting environment where they can enjoy their time off. Introducing some

MANAGEMENT

creative marketing will be sure to increase bookings and create a buzz around your property.

2. Install modern ﬁxtures, furniture and décor Up the ante with stylish décor and bathroom fixtures. Investing in quality interior decorating throughout the whole rental property will help it to stand out from the crowd. List photos of a chic, sparkling bathroom, and tidy living areas with stylish furniture that pop off the web page. Featuring these attractive spaces will make your guests take notice of what you have on offer. ResortNews | October, 2019

the messages, which were anonymised . The company told the CNET tech news service it stopped the practice, saying: “we paused human review of audio”.

Skype, and has received much less attention than Facebook.

This begs the question: why are humans at big tech companies listening to us? Voice assistants need human guidance to accurately understand what we tell them. Amazon, Apple, Facebook, Google, and Microsoft all have paid workers to listen to their users’ conversations. This is not so much a series of ‘scandals’ surrounding human review, but rather that a huge user data base is being amassed with very few users becoming aware of how voice-assistant technology actually works and could affect them. Once again, the issue of "large data" raises its head. So, what can you do to protect your privacy? To prevent this kind of eavesdropping, do not transcribe your own Facebook Messenger messages, switch to encrypted Secret Conversations on Facebook, and restrict access to your phone’s microphone. But the ramifications of this has more far reaching effects. Don’t assume you have privacy on any app, says Chandler Givens, director of product

Image: ©Gorodenkoff - stock.adobe.com

management for consumer privacy at Avast. “The reality is that any time you're using a messaging app your voice or text conversations can be captured, either by third-parties or the company that made the app. Users should think about the front page test: How would you feel if your conversation ended up on the front page of the newspaper the next day? If that makes you uncomfortable, pick up the phone and call instead.” So exactly what kinds of things are employees hearing? According to a Belgian television news station all kinds of things, including very personal information, is recorded. Sex,

violence, medical information, and spoken requests for porn were included in the 1,000 Google recordings obtained by that particular Belgian broadcaster VRT NWS. So, is the Facebook incident worse than the previous ones? It depends on how you look at it. Apple, Google and Amazon claim they only collected vocal commands to their devices, which might be more justifiable in improving what the AI understands. That assertion is contradicted by the data obtained by the TV broadcaster. But what is not so well known is that Microsoft continues to transcribe conversations held on

In the U.S, the Federal Trade Commission approved measures to address Facebook eavesdropping ($15billion worth) and drew sharp criticism from lawmakers for not going far enough. A whopping 50 state attorneys general announced they would join in an antitrust investigation of Google and Facebook placing even more pressure on the major tech firms that are already facing intense scrutiny over their market dominance from the government. This saga is one that will continue to grow and in the future may possibly include smaller platforms such as Cortana, Bixby, Baidu, Alibaba and Xiaomi. There is plenty of information on the web on where to find and change settings of all your devices to minimise recording and retention of spoken data and I do urge you to do so if you fail the "front page" test. And while you’re about it, don’t forget your smart TV is just as capable of intruding. The only sure-fire method to protect yourself is to pull out the power cord to anything bearing the adjective "smart" in its name.

If you have an outdoor space, be sure to showcase the stylish outdoor furniture, guests are sure to enjoy. If the property has a great view of the outdoors, be sure to include a sneaky shot or two of the scenery too!

These are all ways you can make your rental more attractive.

3. Feature guest reviews alongside photos

Guests could be entered into the competition automatically by booking the rental for certain dates or for a certain number of nights. This is a fun way to incentivise guests to book with you.

Another idea would be to offer a giveaway, such as the chance to win a bottle of wine or a voucher for local activities.

By installing classy furniture and bathroom fittings, guests are likely to comment on their quality in their reviews. This lets you feature positive testimonials alongside pictures of your property. Doing so invites potential guests to imagine having similar positive experiences. It lets them see for themselves that other guests have appreciated the effort you make to keep your rental looking sharp.

4. Give local travel and money-saving tips Offering local knowledge in your October, 2019 | ResortNews

Image: ©Monkey Business - stock.adobe.com

rental marketing is a great way to attract guests. Got a favourite café for brunch nearby? Let your guests know how to get there and what the best dishes are. Know of a great Happy Hour or two-for-one dinner? Include these tips in your rental description. Advice on local attractions, nature walks, and activities are also great ideas to advertise alongside your rental. Prospective guests will appreciate these local insights

5. Offer discounts, giveaways, or free transfers

You could approach a local restaurant or bar and see if they would be willing to offer specials to your guests. This benefits both businesses as well as your guests – everyone wins!

Everyone loves a bargain. Offering discounts can be an effective way to increase bookings. You could offer special rates for multiple nights, booking at certain times of the year, or for people who have been referred by former guests.

Finally, you could offer free transfers for guests arriving by plane, train, or bus. Offering to transfer your guests from their transport to the rental shows you are willing to go above and beyond to make their stay special.

and help them have a great experience at your property.

MANAGEMENT

The real impact of

Housekeeping

on your reputation

Image: ©Robert Kneschke - stock.adobe.com

By Tikky Dawwalee Davies

Nothing repels guests more than poor housekeeping. Your accom’s cleanliness immediately sets the tone for quality, while showing guests how much you care about them and your business. And with hygiene being high on a guest’s priority list, their opinion can do grave damage to your reputation if it doesn’t meet expectations. Just one negative review can lose hotels around 30 guests, according to an Emprise study. It’s not surprising this can have severe consequences in revenue losses. But if you invest in your housekeeping operations and establish strict quality standards, this can set a clear division between you and your competitors. Good housekeeping can provide a sure-fire way to gain the edge, enhance the guest experience and improve your bottom line. Your accom’s reputation is sacred. The last thing browsing guests want to see is a hotel that’s been labelled filthy. Here’s why good housekeeping is imperative and the real power it has over your success.

Just how important is housekeeping to guests? According to the Emprise white paper, 97 percent of travellers say cleanliness is one of the

most important factors when booking accommodation, so when your hotel receives a damaging review describing your hotel as ‘dirty’, you can imagine the kind of impact that one word has on your bookings. In fact, the study also revealed 90 percent of travellers will avoid booking hotels described as being ‘dirty’ in a review. Cleanliness is so important to European and American guests, they prioritise housekeeping above bed and furniture comfort, customer service, room lighting and internet access.

Cleanliness is just the beginning Guests visit a hotel with a certain set of expectations. Being presented with a clean room is presumed. Guests do not expect to be greeted by dusty furniture and stained bedding. So a guests reaction when this does happen is justifiably unacceptable. Hotels and resorts around the world have determined a standard, where the role of the housekeeper is to keep rooms, communal areas and bathrooms clean, provide clean bedding, and replace toiletries and towels. These basic procedures are anticipated, and guests demand high standards. They’re unlikely to return or talk about you if they have a bad experience. And if they resort to posting a bad review, this can radically influence the decisions of future guests.

The result of these negative comments will cost significantly more in lost revenue than if you’d just implemented adequate housekeeping processes in the first place.

to write a negative review if it falls below their own ideals. These negative reviews hold great social power and have the ability to severely damage your reputation and revenue potential.

Added value housekeeping services

And it seems guests have no problem changing their accommodation plans after browsing social media. 35 Percent will reconsider their accom choice if they lose confidence due to feedback from others. If that doesn’t alarm you, 40 percent of travellers said they would not stay in a property with more than three negative reviews.

Coming at this from a positive slant, your housekeeping facilities can be the very reason guests choose to book or rebook. It can be your USP, and something they truly value on their travels. Besides room cleanliness, offering value added services such as dry cleaning, ironing, shoe polishing or extra laundry product packs– even if these services are outsourced with local contractors - can be real deal makers for guests. And while these types of services may seem more suited to business visitors rather than those on holiday, travellers staying for longer periods and families with young children will also appreciate the added comfort and consideration. It goes without saying that if a guest has a good experience they will have even more reasons to tell the world why travellers should visit you. Value added services enhance the guest experience immeasurably and give guests positive memories they want to share with others.

Online reviews can hurt Guests feel passionate about proper housekeeping. Passionate enough that they’re more likely

MANAGEMENT

But even if your accom has negative reviews right now, you can still turn it around. A study by GuestRevu claims just a 10 percent improvement in review ratings can increase sales by 4.4 percent. As one of the biggest operations at your hotel, it pays to invest in building a superior housekeeping team. Adequate housekeeping will ensure your hotel is a clean, safe and comfortable environment for travellers. It also creates a great first impression that remains with your guests for the duration of their stay. The more boxes you can tick to satisfy their basic hygiene requirements, the better your guest satisfaction rates and the more likely you’ll build a positive online community. Never forget, your reputation is directly linked to your occupancy rates, and dictates your revenue. ResortNews | October, 2019

How much is reactive maintenance really costing you?

Systems Leadership

“Concrete cancer is becoming an epidemic” – Gold Coast Bulletin 2018 Is lack of regular maintenance costing your sinking fund an arm and a leg? Have you ever put off servicing your car, only to have a tyre blowout or an engine failure that ended up costing you thousands? Do you remember being stranded on the side of the road thinking “if only I didn’t put off that oil change, I wouldn’t be in this situation?” If you’re anything like me, you learned this lesson the hard way when you were young and realised that investing in your car’s upkeep would leave you MUCH better off in the long run. Unfortunately, many body corporates haven’t applied this valuable lesson to their most valuable asset – their property – and as a result, may be doomed to a hefty bill down the line!

Here are the top 3 maintenance issues that are ticking time bombs for your sinking fund: 1. Concrete Cancer – the silent coastal killer! Most Australian buildings and resorts lie within a stone’s throw from the ocean, which means salt – the number one enemy to your property – is always waiting for the right opportunity to work its way in and destroy the very foundations of your building. Concrete cancer occurs when October, 2019 | ResortNews

positive investment for your property. In fact, Alltech Abseilers have been putting “complete asset protection plans” in place for buildings just like yours for as little as a dollar a day.* That’s it – no hidden costs, no more budgeting nightmares! This includes:

minor issues, such as hairline cracks and flaking paint leave the buildings strong, but vulnerable internal steel reinforcements exposed to salty moisture, causing them to rust. Once this occurs, it quickly spreads, destroying the concrete as it goes. Minor remedial work or a paint job now, could save you from major structural repairs in the near future! 2. Loss off paint warranties and premature paint deterioration. Hopefully, last time you got a paint job you received a 10 year paint warranty such as those issued by DULUX accredited painters like Alltech. If you did, chances are that in order to maintain the warranty your paint must be regularly cleaned via high pressure washing. The paint companies put this clause in because they know that regularly cleaned paint is going to last much longer. Put this off and you may be forking out for a new paint job years earlier than necessary!

3. Loss of business, property value & rental income.

1. Complete repaint of the complex every 10 years.

These are the cost you don’t see – some might refer to as “opportunity costs”.

2. Complete washdown & building detailed inspection of the facades once per year to catch any issues whilst they are still minor.

• The cost of a bad first impression when a holiday maker or potential lessee sees the poor state of the building and decides to go elsewhere. • The devaluation of your home or nest egg when other owners sell out at low valuations to avoid upcoming remedial costs, sending the value of every other apartment in the complex plummeting. • The cost of a bad online review left by a disgruntled guest because the poor state of the building looked nothing like the luxury retreat in the website photos that were taken 10 years ago. It’s hard to figure out how much these unseen losses are costing you, but the impact could be huge!

3. Squeegee clean of all external glass twice per year to give guests a great view and prevent hard water damage to the glass. 4. All necessary minor touch ups & repairs to paint and substrates. 5. Annual load testing and certification of your height safety systems. 6. Peace of mind that you won’t every get caught out by a nasty surprise again! It’s time to take a stand for your building and fight back against the elements!

This all sounds pretty scary… what’s the good news?

Call Alltech Abseilers today and find out how you can get a simple, complete asset protection plan in place for your property. What are you waiting for? Phone 1300 786 583.

Proactive maintenance is not as expensive as you think, and, once the cost savings are factored in, is a cash

Jared Woodbine - Managing Director Alltech Industrial Abseilers *Per apartment or tenancy.

MANAGEMENT

First impressions count…

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By Trish Riley, Editor

Our enviable climate and love of the great outdoors make enhancing outdoor living areas a top priority for most Australians, and although spring has only just sprung, resident managers are working with garden and landscaping experts to be ahead of the latest trends, and have the property blooming for summer. Landscape design for resorts is a unique art form however, needing to combine practicality and logistics with beautiful public spaces and the feeling of luxurious private escapes. Outdoor features like swimming pools and fountains need to complement the style and elegance of the interior design, while inviting guests to explore the grounds and discover their holiday paradise.

needs while also enhancing the overall atmosphere of the property.

the thing that makes their vacation finally feel real.

Where to start?

It’s a tall order—but one that a lush, well-maintained space more than fulfils.

We’ve all heard about ‘street or curb appeal’ for homeowners – well the front gardens, and an impressive exterior facade creates the first impression for new resort visitors. This ‘arrival’ area typically reflects the architectural style of the resort and sets the mood for what guests should expect during their stay, inviting them to explore more of what the property has to offer. It should get them excited for the stay they’re about to enjoy, and make them feel good about the decision they made days, weeks, or even months before. Your resort’s landscape is the first tangible thing your guests experience during their stay,

A sensory experience With landscape design for resorts, it is not uncommon for the outdoor space to be made up of several different elements, from spas to gardens to outdoor dining, each designed to offer a unique experience to the guests. Common features include: Pools and spas: Whether the theme is relaxation and tranquillity or adventure and fun, pools and spas are an integral part of most landscape design architecture for resorts. Multiple swimming areas are quite popular, boasting water parks and slides for family fun as well as secluded, exotic

The key to successful landscape design for resorts therefore is to cater to the specific desires of the establishment’s visitors, whether that is couples seeking a private oasis, families that need space and dedicated play areas or business travellers in need of relaxing inspiration. It may also be the easy-to-maintain green space crafted around units in a permanent complex. Either way, each outdoor area needs to be carefully planned to meet those

lagoons for adult enjoyment. While your guests enjoy an afternoon of swimming or lounging around poolside, ensure that they’re surrounded by the most beautiful natural landscapes—lush, inviting shade, colourful flowers, and wellmanicured walkways that lead guests to their outdoor oasis. A selection of “cleaner,” broadleafed trees that are less likely to drop seeds and leaves into your pool is also a helpful move. Getting physical: Consideration also needs to be given to areas that accommodate exercise zones such as tennis or basketball courts. In addition to providing entertainment, it’s a great way to get exercise in while building memories, and it’s always good to know where your kids are playing.

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MANAGEMENT

ResortNews | October, 2019

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And here’s a plus; most courts require only minimal maintenance. They’re generally infused with a UV light stabiliser so that even in the heat and sun, they hold their colour. Do ensure however, that if you have them, they are kept in good order. Escapes with a view: Enchanting outdoor areas are created to offer guests a place to unwind and enjoy their natural surroundings. Typically reflecting the overall style of the resort, these areas include fragrant stroll gardens, inspiring meditation gardens, and simple sitting areas for working or relaxing. Smaller portions of the garden are easy to create by providing seating for two, surrounding the area with lush plants and using a wall or tall narrow plants to create privacy screen. A sense of calm can be created with a neutral palette and a simple water feature. Make use of the location and natural landscape, whether it be mountainous panoramas, tropical seascapes or bush scapes – bear in mind the guest’s innate desire to capture memories in beautiful surroundings. Outdoor dining and entertainment: Another way to allow hotel guests to take advantage of their location is to integrate food, drinks, and entertainment into the landscape design. Where possible, luxurious bars, barbecue zones and dining facilities are often found outdoors, usually surrounded by the best views the area has to offer. Outdoor heating: While it’s not too much of a consideration in tropical Queensland, outdoor entertaining throughout all four seasons is important for Australians, but it's only possible with the right heating solutions. The ambience that a fire pit brings is worth the investment alone, October, 2019 | ResortNews

providing an enjoyable feature for the garden and a natural gathering spot for socialising and entertaining – it's a great focal point and people are naturally drawn to the campfirelike atmosphere – and if a fire pit isn't a practical choice, gas patio heaters or radiant heaters that can be installed on the roof are just some of outdoor heating options available. And don’t forget practical: While it’s not something that’s likely to make it onto an online review, the grounds also need to accommodate convenient areas for guest parking, for deliveries and collections and the storage of equipment. These need to be incorporated thoughtfully into the landscape. While designing and maintaining the kind of space guests want to come back to, year after year, consideration also needs to be given to the environmental conditions of the resort and the type of gardens appropriate for each region. A rose garden in the tropics is going to take up and extraordinary amount of time to maintain. And while an attractive, clean and well-maintained appearance is a reassuring indicator of commitment to high standards within, guests are also becoming more conscious about whether the gardens and overall environment incorporate a sustainable approach with regard to minimising water usage, optimising solar energy or using natural and environmentally preferable alternatives to pesticides and plants that benefit wildlife. A particular type of landscape that is predicted to ‘grow’ are pollinator gardens, as more people become aware of the peril that a number

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of pollinators, including bees and butterflies, face. Not only are the younger generation interested in being more conscientious of pollinators, but older people feel the need to be responsible for creating ecosystems in their communities and it will be a great point of differentiation. Being Australia, landscaping design also needs to take into account the weather patterns; a delicate balance that will cope with tropical storms and drought. Where possible, managers are transitioning areas of their standard landscape into another direction: low maintenance landscapes with droughttolerant and native plants, which require less maintenance and less water in the long term. A mistake some people make is to neglect to research what plants best grow in their environment. The most important thing to consider when planting is how big your plants will grow, the last thing you want is a tree that outgrows its area with a root system reaching into the foundations and drainage pipes. Before buying plants, think about: what kind of light the plant will need, what are the best types of soil, heat and wind tolerance levels to keep the plant alive. And don’t forget the seasons: When selecting flowering plants try to make some of them 'out of season' performers so you have some year-round colour, or put in spring and early summer bulbs to get the garden off to a great start. A common theme among managers, regardless of age, is the fact that the majority do not have the time to properly care for their landscapes. People are either avid gardeners or not, and some would rather have a customised landscape program

MANAGEMENT

with them handling the mowing but leaving the pruning, mulching and garden care and such for the professional landscapers. For the time-poor manager consideration may also be given to automating aspects of the gardens. Managers can boost their efficiency by taking advantage of new technologies such as smart controllers and apps to manage systems remotely. Mobile phonecontrolled pools, lighting and irrigation are big currently and anything that can be monitored by a smartphone will win out. There are apps available for anything from identifying insects, diseases and plants to estimating and measuring on site with a laser app. These technologies will make it easier and more efficient for the landscaper and manager to administer their properties. One bit of technology that fits perfectly within a guest-centric environment is the usage of battery-powered equipment. As electrical equipment becomes more powerful and efficient, we are seeing a trend to have this in place, especially in environmentally-conscious areas. Ultimately, if you are a busy person – and most managers are – you may not be able to work on your landscape because it requires a lot of time. By hiring a landscaper or dedicated gardening service, you are ensured of the quality of the work. These people are experts on the said field and have studied well about it. Because of this, you are guaranteed that you will get a realistic insight into the project and you will also be ensured that you will get the gardens that you want. They also have that technique to keep mess to a minimum and remove whatever disruptions that exist.

TOURISM REPORT

Gold Coast hinterland makes plea for tourists after bushﬁre disaster Visitor numbers have plummeted on Queensland's Gold Coast hinterland and Scenic Rim after devastating bushfires razed parts of the regions earlier this month — a double tragedy for local businesses. It is estimated school holiday visitor numbers have dropped by as much as 50 percent in the tourism-driven town of Canungra. Surrounding townships, popular with bushwalkers, are reporting similar figures. "People are still keeping away," said Vivienne Rowe from the Canungra Visitor Information Centre. "Sales are down right throughout

the town and everywhere that you go they will tell you exactly the same." The Sarabah fire was considered the worst of about 80 fires that raged across the state earlier this month. Eleven homes were destroyed as well as the historic Binna Burra Lodge. The affected area totals about 1.2 percent of the entire Scenic Rim Council area, however, Mayor Greg Christensen fears the flow-on effects of slow tourism will be felt by the entire community for months to come. "What it means is immediately less hours for everyone working in our cafes, our coffee shops, and all of the service industries and our accommodation providers,"

he said. "That means less cash flowing into our community. Bed and breakfast owner Robyn Fortescue said it could not have come at a worse time on the tourism calendar. "The fires were at their peak just at booking time, when everybody was making their [school] holiday plans," she said. "Consequently, everybody thought the whole of Scenic Rim was on fire, so they all went elsewhere I think." Ms Fortescue said bookings at her Wonglepong property are down by about 40 percent, and reservations for future dates have been slow.

Further east at Flying Fox, Trish Wilson said she had worked hard to convince customers to honour bookings at her holiday cottages. "We weren't impacted by the fire directly but we had people cancelling because of the fire surrounding us," she said. Innes Larkin owns and runs an accommodation and camping site in the foothills of Mount Barney. He said many people had cancelled because campfires were not allowed during the fire ban. It is making him nervous about the future.

Court rules against shark culling and catching The Queensland Government can no longer catch or cull sharks along the Great Barrier Reef, an Australian court has ruled. The government lost its appeal to the court, saying it wanted to use nets and drumlines to catch sharks and keep swimmers safe. The Humane Society challenged the program and won. Tourism and animal rights groups faced off in the decision. The court said that the nets and drumlines harmed sharks and didn’t provide any help in preventing shark attacks in the area. Following the ruling, shark control practices within the Great Barrier Reef Marine Park must be humane and in the

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best interest of sharks. Sharks cannot be killed and protected sharks including bull, white and tiger sharks must be tagged. Lawrence Chlebeck, who campaigned for the Humane Society, said of the decision, “No longer will sharks senselessly die for a misguided sense of security.” Shark populations have declined along the coast by up to 90 percent, mostly due to commercial fishing.

The Queensland Tourism Manager, Kate Jones, questioned the safety of swimmers and gave her thoughts on the ruling, “I’m sure the Prime Minister does not want to have blood on his hands through this decision in relation to the federal act.” In March 2019, there had been four shark attacks on the Great Barrier Reef in six months. Queensland government has now called on

TOURISM

the Prime Minister and federal government to intervene. Government shark control program records show 113 sharks were euthanised in 2017, nine in Cairns, the city that borders the Great Barrier Reef. These program changes only apply on the Great Barrier Reef, other Queensland locations still allow the shark control program.

ResortNews | October, 2019

Chinese tourists slow but record Americans head Down Under Shocking truth about Australia’s greatest tourist drawcard Surrounded by the Opera House, Circular Quay, Luna Park and of course the iconic Harbour Bridge, Sydney Harbour is the major contributor to the $21.9 billion Sydney tourism pumps into Australia’s economy each year. But beneath the bridge lies an ugly truth. Sydney’s famous harbour is one of the most polluted waterways in the country, receiving around 15 Olympicsize swimming pools of pollutants each year. This horrific statistic makes one of our greatest tourism drawcards also one of our dirtiest. According to a new video, titled Sydney Harbour Above and Below, the waters around Australia’s most popular city is filled with cigarette butts, plastic bags and bottles, lost shoes and clothing and even dead animals — all coming into the harbour from stormwater run-off.

“After we have some of these really big rainfall events, the harbour … it’s quite tragic,” Dr Dafforn said. “Two thirds of our pollution comes from stormwater run-off.” But like an iceberg, the problem on Sydney’s harbour is far bigger below the surface, with the seabed receiving 70 percent of plastics that enter the ocean. “Unless you spend time under the water, I don’t think you get a true appreciation of what is below there,” Richard Nicholls, owner of Dive Centre Manly said, noting he and his team pull out around 500kg of plastic on their own each year. “I think if more people knew (what was under the water) they would just be horrified. Jeremy Brown, co-founder and managing director of the Ocean Protect, said there were ways people — both locals and visitors alike — could help to ease the amount of plastic and debris entering our waterways.

“I would call it a paradox,” Dr Katherine Dafforn, deputy director of the Sydney Harbour Research Program. “It does look beautiful, but it is one of the more modified and polluted estuaries along our coastline.”

“We have to reduce the amount of plastic that we are using, recycle better and be more conscious about what is going down our drains which ultimately ends up in our oceans. If we ruin the ocean, we are going to kill ourselves because 50 percent of the oxygen we breathe in comes from the ocean. It absorbs 30 percent of carbon dioxide and our food source.

The CSIRO estimates around 1560kg of plastic enters our waterways each hour, most of it coming into the harbour through stormwater drains.

“But we can fix this harbour and bring it back to where it was, but it’s pretty simple. If we kill our oceans, we kill ourselves.”

But the biggest component choking our waterways is plastic.

October, 2019 | ResortNews

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The number of Chinese visitors to Australia ticked up in July though the annual pace of growth slowed to the equal weakest in nine years, in a sign the China-U.S. trade war and sluggish economic growth are hurting mainland tourists' travel plans. Monthly data from the Australia Bureau of Statistics (ABS) showed 122,300 mainland Chinese tourists made their way Down Under in July, higher than the 12-month average of 120,600. However, the annual growth rate slowed to 1.1 percent, matching the level recorded in May, the weakest in nine years. "The slowdown highlights some downside risks to Australia's services sector, including tertiary education, due to ongoing trade tensions with the U.S. and the weakest economic growth rate in almost three

decades," CommSec senior economist Ryan Felsman said. The deceleration is however, being offset by a record number of Canadian and American visitors, the data showed, largely helped by a weaker Australian dollar. Over the past year, a record 497,700 Canadian tourists and 189,900 Americans visited Australia. The number of Indian visitors also surged to all-time highs in the year to July. The monthly ABS series is an indicator of the health of Australia's tourism sector. The data underlines that steps taken by Tourism Australia to attract high-value travellers from other Asian countries, including India, are bearing fruit. "The near-record inflow of long-term arrivals/permanent residents to Australia will continue to support broader economic activity and spending, especially the housing market with its recovery." Source: wzko

QLD - NSW - VIC - WA

TOURISM

Japanese tourist revival Marriott International boosting city’s economy puts the squeeze on single-use amenities Japanese tourists helped make the Gold Coast into one of the world’s hottest tourist destinations in the 1980s and now they’re set to do it again. New data has revealed a surge in visitors from Japan and New Zealand as the Chinese market, which has sustained the city for a decade, cools.

Tourism bosses say they are set to kick off a new strategy which will see increased focus on securing cashed-up individual travellers rather than tour groups. “We are seeing significant growth in international markets like Japan,” Destination Gold Coast boss Annaliese Battista said. “What we are seeing out of Japan is the first signs of a reignition of Japan’s interest at the Gold Coast for the first time in many years.

“We are actively targeting this market because we think there is room for growth which could be sustained over a long time.” Japan was the Gold Coast’s biggest source of international tourists through the late 1980s and 1990s, sparking a major development boom which saw resorts and golf courses built to cater to the market. But the Asian financial crisis of the late 1990s saw the market collapse.

Ms Battista said there has been a concerted effort away from marketing to group tours. “We have made a deliberate move away from tours towards free and independent travellers and what we saw in the 12 months to March 2019 was evident that his was working,” she said. “It is where we are very competitive and by offering a compelling holiday experience and finding ways of telling a different story about the Coast who think they have been there and done that.”

PROGRAMME

This months suppliers to the programme ACCOUNTANTS & AUDITORS Jonathan Grant Accountants AIR CONDITIONING Climate Control CARPET & FURNITURE CLEANING/PROTECTION First Resort GUEST ENTERTAINMENT SYSTEMS Streamvision MANAGEMENT RIGHTS AGENTS Management Rights Sales PAINTERS & DECORATORS SHEET METAL SOLICITORS

Stratacorp Amalgamated Group SheetMetal Improvement & Design Griffiths Parry

All Preferred Suppliers have been recommended by other accommodation properties for their service and have qualified for inclusion in the programme. The next time you need to use a new supplier, why not make life easier and use a Preferred Supplier.

To find a Preferred Supplier see the directory in the back of this issue

(07) 5440 5322

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Marriott International, which welcomes more than one million guests each night, is expanding an initiative to replace tiny, single-use toiletry bottles of shampoo, conditioner and bath gel in guestroom showers with larger, pump-topped bottles. To date, the company has already rolled out larger bottles at about 1,000 properties in North America, and now expects most of its other hotels to make the switch by December 2020. When fully implemented across the globe, Marriott International’s expanded toiletry program is expected to prevent about 500 million tiny bottles annually from going to landfills; that’s about 1.7 million pounds of plastic, a 30 percent annual reduction from current amenity plastic usage. “This is our second global initiative aimed at reducing single-use plastics in just over a year, which underscores how important we believe it is to continuously find ways to reduce our hotels’ environmental impact. It’s a huge priority for us,” said Arne Sorenson, president and CEO of Marriott International. “Our guests are looking to us to make changes that will create a meaningful difference for the environment while not sacrificing the quality service and experience they expect from our hotels.”

TOURISM

Already, more than 20 percent of Marriott International’s more than 7,000 properties now offer larger-pump-topped bottles in guestroom showers, doing away with single-use bottles that often end up in landfills. A typical large, pump-topped bottle contains the same amount of product as about 10 to 12 tiny, single-use bottles. Because tiny bottles are not usually recycled, they end up in the hotels’ trash bins – generating refuse that will never truly decompose in landfills. In addition to allowing guests to use as much of a product as they need, the larger bottles are also recyclable along with other basic containers, such as plastic soda bottles. The global shower amenities initiative comes 13 months after the company’s first global plastics-reduction initiative, which addressed disposable plastic straws. In July 2018, the company’s hotels across the portfolio began phasing out disposable plastic straws and stirrers and switching to an ondemand approach with alternative products wherever possible. As of last month, the company had met its goal, resulting in an estimated annual diversion of 1 billion plastic straws from landfills – a first step on its journey to further reduce the portfolio’s reliance on single-use plastics. Source: Lodging

ResortNews | October, 2019

of Harlingen, Netherlands

Built in 1920, the lighthouse lost its function after 78 years because of changes to the channels and alterations to the harbour entrance and for a while the future of this landmark monument seemed uncertain. Uncertain, that is, until a private individual used it to create a unique place offering panoramic views, comfort and a bed for the night. The completely restored lighthouse is once again a beacon — but now for those who want to rise above the common and the ordinary. Every day the lighthouse offers two guests comfortable lodging high above the old trading town, on the borderline between the land and the shallows. The decommissioned lighthouse features a spiral stairwell – more spacious than you might expect – and three floors complete with full amenities and 360-degree sea and city views from its 72-foot-high patio. The bathroom is situated on the first floor and features a striking, circular shower. You arrive at the next floor via a curved hallway where there is a compact living area with a madeto-size bed, a small sitting area and a worktop with all the facilities for a leisurely stay. The surrounding glass makes it possible for you to enjoy the panoramic view — even from your bed. But the best view is obviously from the top! A steep set of stairs brings you to the spot where a lamp the size of a Skippy ball once shone and it’s here, under the original copper dome, that you can take your seat at a table for two. Or, if you prefer, you can step out onto the fenced-in platform surrounding the lantern room. Additional features include a minibar, flat screen television, free internet and even free parking. The tower is managed by the lighthouse keeper. She is responsible for welcoming guests and can be contacted by phone if needed. Every morning, she delivers the breakfast basket with fresh and delicious rolls. Harlingen Lighthouse forms part of a network of lights along the Dutch coast. Eighteen of the twenty lighthouses are still in use.

October, 2019 | ResortNews

TOURISM

THE LAST RESORT

The Lighthouse

If you’ve ever dreamt of partaking in an authentic seafaring experience then an overnight stay at the Vuurtoren (lighthouse) of Harlingen may be just the ticket.

International tourism generates US$ 5 billion every day to the global economy Figures from the UNWTO International tourism highlights help to underscore the significance of the tourism industry for the global economy. International tourist arrivals grew 5 percent in 2018, to reach the 1.4 billion mark, two years ahead of the World Tourism Organisation’s long-term forecasts, according to the Highlights, 2019 Edition. At the same time, export earnings generated by tourism grew to US$ 1.7 trillion, an increase of 4 percent, outpacing the world economy in 2018. Total export earnings from international tourism grew by 4 percent in real terms in 2018. In addition to the US$ 1.5 trillion in receipts that destinations earned, international tourism generated another US$ 256 billion from international passenger transport taken by non-residents. This raised

total tourism exports to US$ 1.7 trillion, or US$ 5 billion a day. Released at the UNWTO 23rd General Assembly in Saint Petersburg, , the report provides a consolidated analysis of international tourism. 2018 was the ninth consecutive year of sustained growth and tourism now represents 7 percent of global exports, growing at a faster rate than merchandise exports for the last seven years. “This latest edition demonstrates the strength and potential of the tourism sector,” said SecretaryGeneral Zurab Pololikashvili. “These results were driven by a favorable economic environment, a growing middle class in emerging economies, technological advances, new business models, increased air capacity, affordable travel costs and visa facilitation. UNWTO is committed to ensuring that this continued growth is managed in a responsible and sustainable way and tourism is rightly seen as a key driver of social and economic development, job creation and equality”, he added.

Other key findings from the UNWTO International Tourism Highlights 2019 report include: •

•

Asia and the Pacific and Africa led growth in arrivals with a 7 percent increase in 2018, while Asia and the Pacific and Europe enjoyed above-average growth in tourism earnings. Among the world’s top 10 destinations in arrivals and receipts, France continued to lead in international tourist arrivals, while the United States remained the largest tourism earner in 2018. Japan entered the top 10 earners ranking following seven years of double-digit growth in international tourism receipts. The top 10 tourism earners account for almost half of total tourism receipts, while the top 10 destinations in arrivals receive 40 percent of worldwide arrivals. China remained the world’s largest spender, with US$

277 billion spending on international tourism in 2018 or one-fifth of international tourism expenditure, followed by the United States. •

Four out of five tourists visit a destination in their own region.

•

58 percent of all international tourists arrive to their destinations by air. The share of air travel has increased from 46 percent in 2000 to 58 percent in 2018.

•

The share of leisure travel has grown from 50 percent in 2000 to 56 percent in 2018. Leisure travel is the main purpose of visit in all world regions except the Middle East, where visiting friends and relatives (VFR), or for health or religious purposes predominates.

•

The share of world population requiring a traditional visa declined from 75 percent in 1980 to 53 percent in 2018.

Australian tourists warned to avoid Bali as protests against Indonesia's ‘sex ban' erupts Australians have received an urgent warning to cancel any trips to Bali after protests against Indonesia’s proposed sex ban. The unrest comes in the wake of a new proposed bill which could see tourists and locals jailed for up to six months for having non-marital sex. The riots have become so violent that around 300 people have been injured and two students have died. Protesters have been been seen causing chaos in Bali, Jakarta, the Sulawesi Island and Java's cultural capital, Yogyakarta.

The warning has been issued by the Department of Foreign Affairs and Trade, saying all those who are planning a trip to Indonesia should 'exercise a high degree of caution'. 'Exercise a high degree of caution in Indonesia, including in Bali, Surabaya and Jakarta, because of the high threat of terrorist attack,' the department said.

Shocking footage has also shown some protesters being repeatedly beaten by Indonesian police.

The changes could affect

Tyres, toll gates and even police posts were set on fire during the unrest.

jail for having sex outside

Thousands of people have participated with many carrying large placards demanding the bill be abolished.

bill to be scrapped has received

'Avoid protests, demonstrations and rallies, as these can turn violent without warning.'

So far around 260 students and 40 police have been injured during the riots.

The violent riots have sent Indonesia into chaos all week with police firing tear gas and water cannons in desperate attempts to disperse the protesters.

A vote on the bill was original scheduled for Tuesday, but President Joko Widodo on Friday called for a delay in passing the proposed changes after a public backlash.

TOURISM

millions of Indonesians, including gay and heterosexual couples who might face wedlock, or having an affair. An online petition calling for the half a million signatures while hundreds of thousands took to social media to vent frustration. Under the proposed laws, unmarried couples who 'live together as a husband and wife' could be jailed for six months or face a maximum fine of 10 million rupiah ($US 710), which is three months' salary for many Indonesians.

ResortNews | October, 2019

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Spanish capital adopts an anti-Airbnb plan Madrid has banned the rental of furnished apartments for more than 90 days a year, affecting about 10,000 hosts. The project had been under study for many months and mid-September, the Madrid City Council adopted a drastic plan to limit the possibility of renting a tourist apartment without permission to 90 days a year. This move could make 95 percent of rentals of this type illegal.

The plan has been heavily criticised by Airbnb, which recognises the existence of an accommodation problem in Madrid but believes that new standards are not the answer. For comparison, the limit is 120 days per year in France. Besides the three months of renting per year, owners will now have to obtain a "license" for the tourist use of the accommodation, granted only if it has an independent entrance from the rest of the building, as in the case of a hotel.

This condition is generally impossible to fulfill in the neighborhoods concerned and may place around 10,000 tourist apartments in an irregular situation. According to a press release, the city hall hopes to "preserve the residential use of the city center by curbing the conversion of housing into temporary tourist homes." It is about imposing "the same conditions that must already be fulfilled by any type of accommodation, such as hotels or

October, 2019 | ResortNews

Source: Tourism Review News

In June, Balinese authorities suggested they would crackdown against Westerners allegedly begging on the island's streets.

From Bangkok to Bali, Seoul to Suva, some low-budget travellers are earning themselves a bad reputation.

"Begpackers are at the extreme end in the spectrum of those who glorify budget traveling," Annisa Rahmalia, a public health researcher said.

In an open letter to the city council, Airbnb Marketing Services managing director Arnaldo Muñoz said the new regulation "would eliminate the possibility for thousands of families in Madrid to benefit from tourism, putting at risk nearly EUR 800 million of economic impact and thousands of jobs".

postcards. Others busk with ukuleles or other instruments.

Begpackers

In recent years, social media users across the Asia-Pacific, particularly in South-East Asia, have condemned socalled "begpackers" — mostly Caucasian foreigners who seek the charity of passers-by, usually to fund their travels.

pensions," insisted Jose Manuel Calvo, councillor in charge of sustainable urban development.

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"[Their] only focus is on how to make it as cheap as possible, forgoing other considerations, and then boast about it." Angry locals are urging SouthEast Asian governments to take a harder line on free-loading travellers

Begpackers: Who are they? Those heaped under the begpacker umbrella are a fairly diverse bunch. There are those literally begging with a sign that says "help me fund my dream trip", to those selling sketches or TOURISM

"Foreigners that don't have money or who pretend to be poor, we will send those people to their embassies," said Indonesian immigration officials. “The issue had "caused a lot of problems" and that those encountered by authorities were mostly Australian, British or Russian. The Australian Department of Foreign Affairs and Trade said it "encourages travellers to take personal responsibility for their safety, finances and behaviour overseas, including obeying the laws of the country they are visiting."

Award season hits overdrive as top performers lauded Two leading accom bodies toasted their star national performers this week at separate gala award ceremonies on the Gold Coast. The best hotel staff and venues in Australia were honoured at the 2019 Australian Hotels Association National Awards for Excellence held at The Star recently. Sydney’s Barangaroo House was named Overall Hotel of the Year (Metropolitan) while Tasmania’s Shoreline Hotel took the Overall Hotel of the Year (Regional) title. Crown Towers Perth won Overall Hotel of the Year (Accommodation Division) and the Best Group Hotel Operator was won by the

Key AHA winners are: Best Marketed Hotel The Ramsgate Hotel, SA Best Marketed Hotel – Accommodation Division The Island Gold Coast, QLD

AHA National President Scott Leach

Sydney-based Feros Group. There was a standing ovation for Tasmanian Hospitality Association President Paul Jubb, this year’s National Hall of Fame recipient, and a moment of silence for industry icon Peter Burnett who died earlier this year.

Best Suite/Apartment Hotel East Hotel, ACT Best Hotel Accommodation – General Division Stirling Hotel, SA Best Mid-Range Accommodation Holiday Inn Melbourne on Flinders, VIC

Tourism Australia recently confirmed Phillipa Harrison as the organisation’s new managing director. Ms Harrison was previously Tourism Australia’s executive general manager international, overseeing a network of international offices spanning 12 countries and managing airline relationships and distribution channels.

The promotion sees Ms Harrison become the national tourism organisation’s first ever female head and comes after a period of several months during which she has held the Managing Director role in an acting capacity.

Best Redeveloped Hotel – General Division The Court Best Redeveloped Hotel – Accommodation Division The Darling, The Star Gold Coast, QLD Best Deluxe Accommodation The Darling, The Star Gold Coast, QLD

AHA NSW and National President Scott Leach said the venues and their hardworking staff showcased the best of Australian tourism and hospitality to the world.

make them the engine room of the Australian hospitality and tourism industries. I want to congratulate all finalists and winners on a job well done.”

“Our national awards annually draw together the best venues of the year from right across Australia,” he said.

Mr Leach paid tribute to the efforts of Hall of Fame recipient Paul Jubb, a fourth-generation hotelier. “This year’s inductee is someone who has never forgotten that at our core we are an industry which serves,” he said.

“We are here to celebrate the outstanding individuals who drive our hotel businesses and

Phillipa Harrison in top job

Best Superior Accommodation Maylands Lodge, TAS

Tourism Australia. She has great support in the industry and I am confident that Tourism Australia is in the best of hands," he said. Ms Harrison said the opportunity to lead Australia’s national tourism organisation represented a career high.

the international traveller ever increasing and both global and Australian tourism facing a number of significant headwinds, the need for a strong, cohesive and united industry has never been greater.

Tourism Australia chairman, Bob East, said Ms Harrison had been a stand-out candidate in the interview process.

“I couldn’t be happier or prouder to be given the chance to head up the Tourism Australia team. This is a period of change, challenge and opportunity for our industry,” she said.

“My focus is very much on making sure that Tourism Australia continues to lead from the front, through creative and high impact marketing but also through the important distribution and partnership platforms we provide to industry.”

"Phillipa has made an enormous contribution in her three years at

“With competition for the global travel wallet and the demands of

Ms Harrison takes up the new position immediately.

EVENTS & APPOINTMENTS

ResortNews | October, 2019

proud of and this year’s awards highlights the brilliance that shines across the timeshare and holiday ownership industry.

“He has always put the needs of others before his own. Whether that be his customers, his family or his fellow publicans. He is true publican and a very deserving inductee into the Hall of Fame.”

“We serve more than one million Australians each year and our industry is full of amazing talent who strive every day to bring joy to the many Australians who love their timeshare.”

LIM lunches expand their reach

Key ATHOC winners are: Resort Manager of the Year, Kyong Pang, The Sebel Sydney, Manly Beach | Accor Vacation Club Resort of the Year, Wyndham Resort Denarau Island | Wyndham Destinations Asia Pacific Hall of Fame, Craig Wood, Accor Vacation Club

Mr Leach also paid tribute to the late Peter Burnett, saying: “Peter made an undeniable contribution to our industry which has not just benefited us all – his efforts and achievements will echo through to the next generation, such was his impact and influence on our industry.

Outstanding Contribution to the Industry, Donna Borthwick, Wyndham Destinations Asia Pacific

Destination IQ

“We mourn the loss of Peter, as we honour his legacy.”

Timeshare’s stellar performers celebrated The stars of Australia’s $620 million timeshare and holiday ownership industry were recognised at a gala dinner and awards night at the Novotel Surfers Paradise mid month. The awards cover 19 categories recognising the achievements of individuals, teams and companies. Chair of the Australian Timeshare and Holiday Ownership Council (ATHOC), Ramy Filo, paid tribute to winners and nominees saying: “There is much to be

The Queensland Tourism Industry Council (QTIC) and the QTIC Indigenous Champions Network are proud to announce DestinationIQ (formerly the QTIC Tourism Indigenous Employment Forum) that will take place in the Sunshine Coast on Wednesday, November 6, 2019. DestinationIQ brings together business leaders, employers, government representatives, tourism organisations, native title holders and community organisations to discuss important issues, opportunities and strategies for supporting First Nations tourism and employment across the state. A key event in the QTIC calendar that is not to be missed!

Three years ago Marisa Millane of Freedom Internet took over the ever-popular ‘Ladies in Management- (LIM) lunches with the idea of continuing the platform for women involved in management rights to meet and network, and it become an industry ‘must-do’ for the managers on the Gold Coast.

all to leave one of our events

So much so, in fact, that there has been a mounting call from Brisbane and even the Sunshine Coast to replicate the lunches in these areas. The inaugural Brisbane lunch – to be held bi-monthly initially, was held on October 2 and was a huge hit (with some of the ladies even travelling down from the Gold Coast!)

powered sales pitches but short

So, what’s in store for the next three years? Marisa says she has been getting a lot of suggestions and while she’s going to try some new things, the intent and values behind the initiative will not be changing. “I want LIM to be a space where women in the industry can share, support and learn from each other,” says Marisa. “I want them

feeling supported and they have gained from the experience.” What Marisa will be introducing is a guest speaker at each event to talk about a product, service or topic that is relevant to the members. She hastens to add that “these won’t be long, high informative talks from experts in their respective fields”. “Communications is key and to help us stay in touch I will be launching a website and Instagram page, plus updating our Facebook page more often. I will also be introducing a monthly newsletter for our members. The newsletter will keep everybody in the loop on what’s happening in our industry so if you have any news you would like to share please drop me a note,” she said. For more information please contact Marisa Millane on 0403764247.

2019 ARAMA INDUSTRY EVENTS CALENDAR For registration and/or event information please contact us on 1300 ARAMA Q (1300 27 26 27), email national@arama.com.au or visit: https://www.arama.com.au/ BRANCH

EVENT TITLE

DATE

TIME

Gold Coast

Training and Education Roadshow

Tuesday, 29 October 2019

6:00pm - 8:30pm Kurrawa Surf Life Saving Club Registration Open

LOCATION

REGISTRATION

Airlie Beach

Training and Education Roadshow

Thursday, 31 October 2019

6:00pm - 8:30pm Coral Sea Resort

Registration Open

Sunshine Coast Training and Education Roadshow

Wednesday, 6 November 2019 6:00pm - 8:30pm Ivory Palms Resort

Registration Open

Port Douglas

Training and Education Roadshow

Wednesday, 13 November 2019 6:00pm-8:30pm

Oaks Port Douglas

Registration Open

Cairns

Training and Education Roadshow

Thursday, 14 November 2019

6:00pm-8:30pm

Brothers Leagues Club

Registration Open

Brisbane

Training and Education Roadshow

Tuesday, 19 November 2019

6:00pm-8:30pm

The Colmslie Hotel

Registration Open

Brisbane

Management Rights Industry Training Program

Thursday, 28 November 2019

8:30am-4:00pm

Riverside Hotel

Registration Open

October, 2019 | ResortNews

EVENTS & APPOINTMENTS

Property industry global leader on ESG

Body corporate set up changing Copies of the consultation draft of the Body Corporate and Community Management (Standard Module) Regulation 2019, Comparison document showing differences from Body Corporate and Community Management (Standard Module) Regulation 2008 Summary of proposed reform — Standard module and more have been made available at udiaqld.com.au Proposed changes are included to body corporate committee membership, committee meetings, first annual general meeting, general meetings, body corporate managers and caretaking service contractors, financial management, property management, insurance, and administrative matters. Changes have also been made to defect assessment, initial maintenance and

inspection schedules, the five-year administrative fund forecast estimate of the cost of common property and asset maintenance, insurance and other recurrent expenditure, supplying utility services to an owner’s lot, and more. This regulation will replace the Body Corporate and Community Management (Standard Module) Regulation 2008. Consultation drafts of the Accommodation, Commercial, Small schemes and Specified two-lot schemes modules and BCCM Regulation 2019 are expected soon. Commercial and Property Law Research Centre of the Queensland University of Technology (QUT), undertook a review of Queensland’s property laws for the Government. The Institute has supported this review and made a number of submissions on particular aspects. The new regulations will include many of QUT’s procedural recommendations for modernising and streamlining the body corporate legislation.

Australia’s property industry has strengthened its position as a worldleader on environmental, social and governance (ESG) performance. The Australian and NZ real estate sector has again outperformed other regions in the world’s most trusted sustainability benchmark, the Global ESG Benchmark for real estate assets (GRESB). The Oceania region has topped the global rankings for the ninth successive year with Australia and New Zealand achieving an average GRESB Score of 81, up from 76 last year, and well ahead of the global average of 72 (which also improved from 68 the previous year.) The second-highest GRESB score was for Asia (72.67) followed by the Americas (72.05) and Europe (70.68). “These results show that our industry is taking the initiative on ESG in ways that lead the world and not merely sitting back waiting for government

action,” said the Property Council of Australia’s chief executive, Ken Morrison. “The investments that Australian property companies are making in sustainability is supporting the global transition to a low-carbon, more sustainable and more resilient future which is delivering value for investors and meeting the needs of a growing population and economy. “However, we know there is more to be done and no room for complacency,” Mr Morrison said. GRESB’s results are used by more than 100 institutional investors around the world representing US$22 trillion in assets under management. More than 1,000 property companies, REITs, funds and developers participated in the 2019 assessment. The assessment scored and benchmarked the ESG performance of 80 real estate funds, companies and developers from Australia and New Zealand with assets valued at US$242 billion.

Future Gold Coast: Bernard Salt says Gold Coast needs to accept destiny as population hotspot The Gold Coast is set to grow 1.5 times faster than the rest of Australia over the next decade and needs to “accept its destiny’’ as a population hotspot, according to a leading demographer. Australian Bureau of Statistic figures projected the Gold Coast’s population will hit 768,000 by 2030 and one million by the mid 2030s — a large portion of that growth coming from the northern corridor of the city. Demographer Bernard Salt, in research commissioned by the Gold Coast Bulletin predicts the city will continue to evolve through the next decade, but

will be a city the size of Ballarat, with more than 220,000 residents;

believes Gold Coasters are comfortable with change. “The Gold Coast is continually reinventing itself from retirement to commuting to lifestyle to research to global city to entertainment hub to a cosmopolitan city to education city to a healthcare city. “It’s that fluidity and ease of adaptability which is making it successful by 2030. “That’s the difference between (the Gold Coast) and Sydney, Melbourne, Adelaide, Perth which you could argue are more set in their ways, not quite as adaptable.” Among Mr Salt’s research findings, by 2030 are: •

Ormeau-Oxenford region

•

All age groups will see growth in population, with families (parents aged 3539 years and 40-44 years) and elderly age groups dominating the growth;

•

The region will experience jobs growth across 85 percent of industries, with transport, postal and warehousing set to record the biggest jump in job numbers (24 percent);

•

The Gold Coast continues to punch above its weight with small business growth and entrepreneurship.

“If you’re a staid, conservative

DEVELOPMENTS

type of person who doesn’t like change, you’re probably not going to be attracted to go and live on the Gold Coast,” he said. “But if you do and you want to have a crack, you love lifestyle, you like the Aussie way, you like creating things, you like new challenges then the Gold Coast is pretty much it. It’s the mecca for that sort of philosophy when you start to put a few hundred thousand, half a million, threequarters of a million people together who all think the same and have the same values. “The Gold Coast has got this distinctive culture, this driving force that’s going to spearhead Australia and this region going forward.” Source: GC Bulletin

ResortNews | October, 2019

The benefits of investing in apartments What used to be one of Australia’s most luxurious holiday resorts now sits derelict, three years after being abandoned and left to fall into disrepair. The reason being the value of the investment was perceived to be in the land, so investors focused on buying houses where the land value would appreciate for years to come. However, with the rapidly increasing population, a growing trend of people preferring to live in apartments close to infrastructure and offering great facilities, plus the high cost of buying real estate, apartments are increasing in popularity and proving to be a high performing investment choice. Here’s a deep dive into some of the key benefits of buying an apartment and some points to consider when making your selection.

Affordability Apartments offer an affordable entry point for first time investors. The lower outlay means fewer risks and more investment choices. It also gives investors who are cashed up the opportunity to buy multiple apartments, enabling them to create a diversified portfolio and spread their risk.

Housing Australia’s expanding population More Australians than ever are choosing to live in an apartment, whether out of preference, convenience or for other reasons. Over the past 25 years, the number of occupied apartments in Australia has increased by 78 percent according to the most recent census. A trend more prevalent in urban areas within Australia’s major capital cities. Additionally, the ABS projects that the number of people living alone will increase significantly over the next decade from 1.8 million in 2001 to between 2.8m and 3.7m by 2026. People living alone are actively choosing to live in apartments. Why, because they are often close to urban centres (which is where they want to live) they offer facilities they October, 2019 | ResortNews

Orientation Property experts agree that buyers should look for an apartment with light, views and practicality. In addition to that Andrew Winter suggests buyers “avoid units with no outlook or those that look on to air conditioning condensers or a solid brick wall” if you own a property like this expect the price to allow for this negative as many buyers won’t consider this aspect no matter how cheap. Image: © Alexander, adobestock.com

could not afford in a house and in many instances provide a sense of community and belonging.

in the area offers, such as water views, closer proximity to the station or other amenities.

So what does this mean for investors? More people wanting to live in apartments means:

He also stresses the importance of choosing the right location, “Apartment living in outer suburban locations and rural areas is just not the norm. When something is not normal in the housing market it is often not sought by buyers” or renters for that matter. Inner city and urban locations are preferable for renters and future buyers and he believes should be considered as the preferable option by investors.

• More renter demand • More choice over who rents your apartment, • Potential to charge higher rent • Higher rental yields • Greater investment security

Mass buyer appeal Apartments are also popular for a wide range for buyers – for first time buyers, downsizers and other investors. So when it’s time to sell your investment, your buying audience is broader, giving you more opportunity to appeal to the mass market which creates competition for your property and drives the price higher.

Building management Another advantage of owning a unit is that everyone shares the cost of building repairs, maintenance and building insurance. Keep in mind the more facilities and amenities your building has the higher the fees. But with this also comes greater potential for higher future value and the opportunity to increase your rent.

Top tips for buying an apartment as an investment Real estate expert Andrew Winter, suggests choosing an apartment in an area where the unit features something unique to what houses

Be aware of the fees Once a seller hands their property over, you immediately inherit all of the attached council and strata fees. Strata fees cover the property’s grouped maintenance and building insurance fees and are collected by the building's owners' or manager. These fees are ongoing costs that will continue to absorb your finances, generally quarterly, even after your initial property purchase payment, so it’s important to incorporate these into your ongoing budget.

Understand the ratio of renters vs owner occupiers The more central a building is the more popular it will be with the rental market and as an investor this can be positive. However, if the whole block is rental stock, it can affect demand. Tenants have more choice putting the power in their hands to negotiate on the price. Try and find out the ratio of renters to owner occupiers.

DEVELOPMENTS

What level is best? Experts also suggest not paying a huge premium for apartments on higher floor in high rise buildings. Many renters and future buyers don’t like being over the 5th or 6th floor. Whilst young professionals may love a view from up high – they may not love being blown away every time they step outside. If you’re looking at an apartment in a quieter suburb, your tenants will most likely be young families or empty nesters. These tenants often look for easily accessible but safe, smaller apartment blocks with a unit of the first two floors.

Outside space Andrew Winter suggests that whenever possible you should buy an apartment with a balcony or terrace and ideally ensure it is big enough to put a table and two chairs. It offers a huge bonus to the people who live there and makes your property more popular for renters and buyers down the track. Apartments are becoming increasingly popular in Australia and if you’re careful with your investment selection and pay the right price they are very popular with renters and can pay dividends in the future when you go to sell. There is a whole generation of people leaving home or migrating to Australia who are looking at apartment living as their preferred choice. Buying an apartment as an investment is as safe as houses – if you buy the right one. Source: LJ Hooker

Sales Report MANAGEMENT RIGHTS

MOTELS & OTHER

Gold Coast Jabiru Landing Oceania Beachside Holiday Apts Emerald Sands Apts Otto Mermaid Beach

Queensland Grace Xia Lorraine & Stephen Jordan Tania McCulloch Mayra Christiansen

Labrador Burleigh Heads Surfers Paradise Mermaid Beach

MRS RB RB RB

Peter Ridout Collin Green Shannon Reed Damir Culic & Amy Zhang

Nth Stradbroke Is. Spring Hill Boondall Hillcrest

RB RB RB MRS

Brisbane Whale Watch Ocean Beach Beard Portfolio (4 properties) Boondall Terraces Park on Blackwell

Sunshine Coast / Wide Bay / Fraser Coast

The Bay Apartments Coolum Beach Getaway

M D Holdings Hervey Bay Tracey Brathwaite & Jason Hodson Coolum Beach

CRE ARMS

North Queensland Inn Cairns Boutique Apartments Harry & Rani Bozza Mango Lagoon Nirvana Group P/L Central Plaza Port Douglas Rodney & Glenys O'Brien

Cairns Palm Cove Port Douglas

CBRE MRS MRS

Leah Everett Eden RS P/L & Tibbsnet P/L

Lennox Heads Pyrmont

RB MRS

Michael Song

Melbourne CBD

New South Wales Lennox Beach Resort M Central

Victoria Australia 108

Queensport Tavern & Motel Hervey Bay Caravan Park Collinsville Motel Pacific Resort Motel Wandoan Accommodation Park Wandoan Central Motel & Apts Leichhardt Motor Inn Riviera on Ruthven Leichhardt Motor Inn Country Gardens Motor Inn

Toomey Hervey Bay P/L Janet Lobegeier Bo Feng Stockpoint P/L Stockpoint P/L Leichardt TWB P/L Peterbron Investments P/L Le Court Management P/L Swaggers Investment P/L

Hammant Hervey Bay Collinsville Cleveland Wandoan Wandoan Toowoomba Toowoomba Toowoomba Toowoomba

CRE CRE RB RB TB TB TB TB TB TB

Mandala Asset Solutions Kang Group Accommodation P/L Singing Chihuahua P/L Geekay Stayz P/L

Cobar Cowra Tea Gardens Dubbo

TB TB TB TB

Sunil Singh

Motel

New South Wales Cobar Central Motor Inn Countryman Motor Inn Tea Gardens Country Club Green Gables Motel

South Australia Flinders Motel on Main

Note: Agent/Broker involved in the sale is listed last. Agent - KEY: RMS - Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RB - Resort Brokers Australia; RS - Resort Sales; TO - Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH - Ward Commercial Hotels. * In conjunction

The trusted source for buying Management Rights, Motels and Caravan Parks from all the leading brokers.

www.accomproperties.com.au

Elissa Paynter – MR Sales

Introducing... Elissa Paynter – MR Sales Elissa Paynter joins the team with over 20 years of strong sales experience across multiple industries including corporate, media and advertising and property. She is driven, motivated and enjoys challenging herself. Elissa brings with her strong negotiating skills and offers her clients a high level of service. She is an excellent communicator and is passionate about helping her clients achieve their goals. Elissa has lived in both Brisbane and on the Gold Coast for over 40 years and has seen firsthand the

massive growth of South East Queensland into a leading tourist destination loved by both locals and visitors. As a result of her experience in marketing and advertising sales, Elissa’s attention to detail has enabled her to win Awards for several campaigns. She has used this knowledge in her real estate business to ensure her vendors the greatest exposure for their properties and successful end results. Elissa is looking forward to ensuring the same successful outcomes for her new clients within the management rights industry.

PROPERTY

Name: Elissa Paynter Mobile: 0447 710 891 Agency: MR Sales Area of Service: Gold Coast Web: www.mrsales.com.au Email: elissa@mrsales.com.au

ResortNews | October, 2019

Wandoan Accommodation Park

Oceania Beachside Holiday Apartments

Wandoan

Michael Philpott with Sandi Jensen, the manager of the Wandoan Accommodation Park.

Burleigh Heads

Gold Coast specialist Todd Warner from ResortBrokers with the new owner of Oceania Beachside Holiday Apartments, Lorraine Jordan.

Exciting times ahead with new owners of the Wandoan Accommodation Park as the gas wells and infrastructure in the area expands.

Lorraine and husband Stephen recently settled on this beautiful boutique beach side holiday complex which is right on The Esplanade at Burleigh Heads.

Strategically a strong asset for gas and coal related services/mining, the demand for accommodation has been increasing. Additional cabins and related infrastructure are under consideration as expansion options given the strong demand and long term requirements in the area.

The husband and wife team are expats from the UK and, along with their young family, are excited about their first foray into the management rights industry.

James Carrick – MR Sales

Introducing... James Carrick – MR Sales James has extensive experience within dynamic, fast paced sales environments. He honed his sales and marketing skills in commercial roles with Fox Sports, Foxtel and Diageo, within the hospitality, tourism and accommodation sector. In 2012 James moved into Hotel/Motel brokerage, where he has built expertise and a successful sales track record of Freehold and Leasehold Motels, Management Rights, Caravan Parks, Manufactured Home Estates and Pubs in regional NSW. James is driven to achieve the best outcomes for his clients

October, 2019 | ResortNews

through hard work, strong networks and in-depth industry knowledge. He practises open and inclusive communication with clients for a transparent sales process, alongside a genuine focus on deal momentum to completion. James has a family ownership history within the pub sector along with an existing interest in an operating motel. This providing an ability to inform clients on current trends, with valuable experience in complex industry negotiation from both a purchasing and selling perspective. When James isn’t assisting with deals for his clients he enjoys an active beach lifestyle with his family in Port Macquarie NSW.

PROPERTY

Name: James Carrick Mobile: 0498 965 005 Agency: MR Sales Area of Service: Coastal NSW Web: www.mrsales.com.au Email: james@mrsales.com.au

JUST LISTED! New Exclusive Agency Listings ID 7931

LARGE NORTHERN NSW PERMANENT

• No stamp duty to pay on business • 131 lot gated estate with 72 in the letting pool • Located in South Tweed

• Strong letting area • No set office hours • 4 bedroom manager’s home

NETT PROFIT:

$440,000

EXCLUSIVE AGENT:

Phil Trimble – 0418 478 966

ID 7958

ASKING PRICE:

$2,850,000

EXTREMELY LARGE RESIDENCE

• Permanent townhouse complex • Popular Robina location • 4 bed, 2 bath, manager’s home with

$106,737 ASKING PRICE: Deborah Tilley – 0424 428 489 EXCLUSIVE AGENTS: & Ian Forbes – 0432 988 625

$1,195,000

PRIME REAL ESTATE + PRIME LOCATION

• Large permanent in south after Southport • 28 townhouses in the letting pool

NETT PROFIT:

$195,586

• No office hours • Luxury manager’s residence • Priced to sell

ASKING PRICE:

Pearsall – 0425 168 244 EXCLUSIVE AGENTS: Lyn & Amanda Rowe – 0427 413 319

$1,709,000

SURFERS PARADISE HOLIDAY COMPLEX

• Accommodation module with long agreements • Healthy manager’s salary • Excellent resort style facilities

• Growth potential with occupancy and outside lets • Fully refurbished 3 bed manager’s residence

NETT PROFIT:

$412,000

EXCLUSIVE AGENT:

Phil Trimble – 0418 478 966

ID 8950

2 living areas • Easily manageable workload • Don’t miss out on this one!

NETT PROFIT:

ID 7825

ID 8344

ASKING PRICE:

STUNNING VARSITY LAKES PERMANENT

• Minimal caretaking work, easy to manage • No office hours • Mix onsite rentals & outside rent roll

• Real growth opportunity • Beautifully presented 3 bed, 2 bath manager’s residence

NETT PROFIT:

$100,000

EXCLUSIVE AGENT:

Ian Forbes – 0432 988 625

ID 8811

$2,890,000

ASKING PRICE:

$910,000

UNDER CONTRACT

• Straight to contract after 1st inspection • Surfers Paradise permanent

• Impressive resort style facilities • Generous Body Corporate salary • 2 bed, 2 bath manager’s residence

NETT PROFIT:

$150,000

EXCLUSIVE AGENT:

Deborah Tilley – 0424 428 489

MR Sales have an extensive range of listings Australia wide Visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: sales@mrsales.com.au

www.mrsales.com.au

ASKING PRICE:

$1,320,000

MANAGEMENT RIGHTS RESORTS CARINA

MUDGEERABA

KING OF TOWNHOUSE COMPLEXES

ON TOP OF THE WORLD

You want BIG? Profits around $550,000 and Body Corporate Salary of over $350,000 this Brisbane Management Rights business is worth your attention! Situated in a prime location this modern townhouse permanent letting business has long terms remaining on management agreements. A comfortable and very spacious three bedroom, two level, manager’s townhouse has off ice on title. Enquire with us now before this goes!

Stunning contemporary residence in a secure and idyllic location with ultimate skyline views, a comfortable income and upmarket rental properties to attract the best tenants. Secured by a 25 year agreement with 22 years to run, no set hours and an oversized office with separate external entry. An impeccable home over three levels comprises 3 bedrooms, 3 bathrooms, 4 car garage, timber floors in living areas, air conditioning. Impressive resort style facilities.

NETT $547,000

NETT $147,000

PRICE $3,595,000

ROBINA

PRICE $1,249,000

WYNNUM

PRISTINE GOLD COAST PERMANENT

GREAT STARTER BUSINESS

It’s got the lot! Brand new 25 year Management Rights Agreement. Ultra-convenient central Gold Coast location. Beautiful residence with privacy, space and style. Immaculate compact grounds and pool and minimal maintenance required. Outstanding office with separate entry and no office hours. Sizeable rental pool with excellent income. Supportive Body Corporate and Gallery Vie compliant.

Management agreements recently topped up to 22 years. Ideal business for industry beginners or semi-retired. Gated community in a sought after location backing onto park and Wynnum’s foreshore. Large renovated Managers unit comprising large office and private rear yard. Low maintenance common grounds. No set office hours and supportive Body Corporate Committee Close to public transport, shopping centres and schools. Only 15 minutes to CBD.

NETT $182,000

NETT $100,000

PRICE $1,500,000

Bobo Qi 0438 027 771 bobo@propertybridge.com.au

Rhonda Perkins 0418 767 115 rhonda@propertybridge.com.au

Jim Lowe 0403 418 115 jim@propertybridge.com.au

PRICE $935,000

Jenny Zheng 0413 922 580 jenny@propertybridge.com.au

propertybridge.com.au | 1800 888 518

Your Management Rights Financing Experts Management and Letting Rights Quarterly Pulse • September 19 • Eighth Series

Market Snapshot - September 2019

Data provided by The On-Site Manager website.

STOCK LEVELS…Total number of Businesses on the market has hit a new record high. Dollar value is still less than August 2018 June 2017

October 2017

January 2018

May 2018

Aug 2018

January 2019

May 2019

September 2019

$950m 629 Properties on the market

$864m 673 Properties on the market È

$835m 604 Properties on the market È

$932m 677 Properties on the market Ç

$1,040m 728 Properties on the market Ç

$969m 697 Properties on the market È

$914m 697 Properties on the market È

$1,010m 739 Properties on the market Ç

…Holiday Stock has decreased and Permanent have remained around the same... June 2017

October 2017

January 2018

May 2018

Aug 2018

January 2019

May 2019

September 2019

Holiday - 359 Permanent - 278

Holiday - 337 È Permanent - 260 È

Holiday - 328 È Permanent - 250 È

Holiday - 346 Ç Permanent - 307 Ç

Holiday - 355 Ç Permanent - 338 Ç

Holiday - 358 ÅÆ Permanent - 309 È

Holiday - 330 È Permanent - 336 Ç

Holiday - 434 Ç Permanent - 336 ÅÆ

4.2x È

4.1x È

and Multipliers…are DECREASING BUSINESS MULTIPLIERS (ave) OVER $1m Purchase Price 5.1x ÅÆ

5.1x ÅÆ

5x È

4.9x È

4.4x È

4.3x È

and Businesses are remaining on the market in the main categories around the same time DAYS LISTED October 2017

DAYS LISTED January 2018

DAYS LISTED May 2018

DAYS LISTED Aug 2018

DAYS LISTED Jan 2019

DAYS LISTED May 2019

DAYS LISTED September 2019

Has reduced by 7 days to 84 days È

Has reduced by 4 days to 80 days È

Has reduced by 4 days to 76 days È

Has increased by 10 days to 86 days Ç

Has reduced by 16 days to 71 days* È

71 Days ÅÆ

72 Days ÅÆ

74 Days ÅÆ

Market Movers Stock levels have increased and are slightly less than 12 months ago. Anedodcal evidence from talking with agents suggests that this may have been caused by listing been removed and not sales activity. Over the 12 months (August 2018 to September 2019) there is: ~ There is 3% less stock on the market by dollar value and 1.5% higher by number ~ Mulitpliers have decreased considerably in that 12 months. *Remained 79 days for Holiday and Permanent

‘On the Market Analysis’ - Market Pulse Comparison by Agreement Type - September 19 Purchase Price

P F E

Ave BUSINESS MULTIPLIERS Purchase (ave) Price

Standard Agreements

3.93x

$1.43m

Accommodation Agreements

4.4x

$1.55m

(07) 5574 0500 (07) 5574 0333

info@fnx.com.au

www.fnx.com.au company/fnx-finance

Brisbane

Gold Coast

Sunshine Coast

$208m in Properties for Sale

$281m in Properties for Sale

$197m in Properties for Sale

150 Properties for Sale

212 Properties for Sale

139 Properties for Sale

106 Permanent

119 Permanent

29 Permanent

20 Corporate

90 Holiday

109 Holiday

14 Holiday

71 Days on Average Listed

84 Days on Average Listed

76 Days on Average Listed

4.42 Ave Multiplier

4.33 Ave Multiplier

4.64 Ave Multiplier

FNX Finance Group Pty Ltd ACN: 602 814 620 ABN: 75 602 814 620

Management and Letting Rights Quarterly Pulse • September 19 • Eighth Series

Management Rights For Sale - Market Analysis - September 19 Letting Pool Coverage – proportion of the total units to those within the Pool. Agreement Coverage – refers to % of total agreement term available upon purchase. Total stock

Total stock

Days listed

Average price

Multipliers

Gross return %

Letting pool coverage

Agreement coverage

Resort / Holiday

$502,193,425

336

$1,494,623

4.23

24%

61%

77%

Permanent

$416,321,054

343

$1,213,764

4.42

23%

41%

78%

Corporate

$50,224,800

$2,391,657

4.00

25%

57%

80%

Off The Plan

$17,913,242

123

$1,377,942

3.70

27%

92%

Caretaking

$19,650,201

$893,191

3.80

26%

92%

62%

Retirement

$4,230,000

$1,057,500

2.98

34%

78%

48%

Grand Total or Average

$1,010,532,722

739

$1,311,399

4.3

23%

57%

77%

Historical Comparison of the Market Total Properties on the market has hit a new record high NO. OF BULDINGS ON THE MARKET BY TYPE (Holiday & Permanent)

NUMBER ON THE MARKET 750

728

739

400

673

697

677

650

350

697

337 300

630

600

250

604

278

260

346

328

358

338

336

330

309

307

343

336

250

June-17

Oct-17

Jan-18

May-18

Aug-18

Jan-19

May-19

150

Sept-19

Jun 17 Jul 17 Aug 17 Sept 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sept 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sept 19

200

550 500

355

359

700

Resort/Holiday

Number on the Market

Permanent

As the total dollar value of properties on the market is also decreasing... NO. OF BULDINGS ON THE MARKET BY TYPE (other)

TOTAL $ VALUE OF PROPERTIES ON THE MARKET

$1,200,000,000 Caretaking, 22

$800,000,000

15 12

3 1

Corporate

Caretaking

$550,959,664

Off the Plan

$532,235,588

$502,193,425

Retirement

Off the Plan, $17,913,242

Resort/ Holiday Grand Total

P F E

$914,045,005

$200,000,000

Jun 17 Jul 17 Aug 17 Sept 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sept 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sept 19

$1,004,344,005

$834,728,496

$600,000,000

$1,010,532,722

$969,400,868

$400,000,000

$933,986,220

Jun 17 Jul 17 Aug 17 Sept 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sept 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sept 19

$1,000,000,000

(07) 5574 0500 (07) 5574 0333

info@fnx.com.au

www.fnx.com.au company/fnx-finance

Corporate Permanent

Student Accommodation Off the Plan

Retirement

FNX Finance Group Pty Ltd ACN: 602 814 620 ABN: 75 602 814 620

Sandcastles Noosa:

Doing it right...

All apartments are airconditioned and have full kitchen facilities, renovated bathrooms and large live-on balconies. They are an ideal apartment for families as they offer a spacious family holiday as well as all the digital entertainment options.

By Trish Riley, Editor

The concept of swapping the ‘big city’ life of Sydney and ‘hanging up the gloves’ on a 28-year career in which one has excelled, for an unknown venture into hospitality in a laidback coastal town is hard to comprehend but this is exactly what Mark and Shannon Sheridan did almost three years ago. Mark was the creative director in a large marketing firm and Shannon had an established career as a pre-school teacher when they decided to purchase the management rights for Sandcastles Noosa, arriving only a matter of weeks before Christmas. My usual question is particularly pertinent now: So why management rights? “We ask ourselves that at times,” jokes Mark, “But honestly, while working in the corporate arena

Shannon and Mark Sheridan

we didn’t have a plan B – we didn’t need to. But as time went by we realised we wanted something more. We wanted to work for ourselves in a business that would allow us more control of our time. Ultimately, we were looking for the right combination of challenge, people and flexibility – being able to close the office and be home. “It may seem ridiculously impulsive, but truth be told we gave it a lot of thought and waited eight years for a good one.” And a good one it is. Sandcastles Noosa is situated on the beachfront, at the quiet end of Hastings Street, adjacent to

the beautiful Noosa Woods. It has 14 spacious, self-contained apartments on three levels, with 12 of those apartments being beach and pool facing. Sandcastles offers a range of accom choices ranging from stylish one-bedroom beachfront apartments to deluxe and standard loft apartments located on the third level and featuring an extra loft bedroom above the kitchen with two single beds. There are also oneand two-bedroom park-side apartments with large balconies taking in the serene Noosa Woods and another smaller balcony off the main bedroom, looking up Hastings Street.

PROFILES

Not that there is much in Noosa that makes you want to stay indoors. Sandcastles features a large swimming pool that is heated during the colder months, a children’s wading pool, a heated spa, a covered outdoor eating area recently upgraded with a new barbecue and a guest laundry. There is also free parking on site. And the beach is just 30 steps from the pool. “There certainly is something for everyone here at Noosa,” says Mark. “Not only are we located at one of the best addresses in Queensland, but Hastings Street is on our doorstep and we are also surrounded by great restaurants, outdoor cafes and bars, as well as a variety of well-known boutiques to keep you busy all day. ResortNews | October, 2019

15%

Discount for Resort News Readers!

If retail therapy doesn’t tick the boxes, guests can walk across the road to the river for a spot of fishing or sign up for a variety of river and crab fishing or deep-sea fishing tours. There are also great walking and jogging tracks into the Noosa National Park and down to the river mouth. Noosa National Park is the most visited park in Queensland with varied hiking tracks, stunning scenery and several secluded sandy beaches to enjoy a swim along the way or one can catch the Noosa Ferry and take a ride all the way to Tewantin, or anywhere in between if you feel like hopping off.

October, 2019 | ResortNews

And if you really need to exercise, there is surfing, paddle-boarding, windsurfing and jet skiing as well as a number of outstanding golf courses to test out around Noosa and the Sunshine Coast. I’m still intrigued about Mark and Shannon’s transition into management rights and ask what their biggest learning curve has been. “Two things really,” says Shannon. “The first happened shortly after we started here and literally two days before Christmas. I was checking in a guest when we heard a loud crash – a portion of ceiling in the car park had collapsed onto a guest’s car.

PROFILES

1 H as t ing s S t reet , No o s a H e ad s Q l d 4 567 07 5474 7575 info@sandcastlesnoosa.com.au www.sandcastlesnoosa.com.au * Subject to avaliability, and only available when booking direct. Valid to October 2020.

gardens landscaped and have approval for the installation of a restroom near the pool. “We have also redesigned the branding and signage and had the website rebuilt. Five of the apartments have been refurbished by award winning interior designer Di Henshall since arriving. We’re fortunate that our owners like quality and we look forward to having them all done.” So, what’s their secret, and what advice do they have for newbies.

Unbeknown to us there was an ‘informal’ storage unit in the ceiling, the nails had rusted and in a true Fawlty Towers moment the garage (and the guest’s car) were covered in old chairs, surf boards, rusted air-con units and ten years of documents. The body corporate was closed for the holidays so it was a case of ‘sink or swim’. We rang the previous owners, who came and collected the items they still wanted and fortunately we had great help from a neighbouring manager.

to ensure we maintain a high standard,” adds Shannon. For Mark, the focus is on getting the building up to spec and having every apartment on point. “We have a good relationship with the body corporate and a healthy sinking fund”, says Mark.

Despite being one of the original buildings in Hastings Street and evolving from pink and grey to the stylish white it is currently, the property has undergone a number of renovations and upgrades. Mark and Shannon have replaced the barbecue and pool furniture, had the

“It’s not a secret,” says Mark. “We have simply taken the experience and tools from our former lives of marketing and teaching. Always work with good people. The reno’s are all of a high standard; they’re not cheap but the quality shows and they will last – they will also increase value and returns for our owners. Another example was when I needed to have photographs done for the website – I actively looked for and found someone who is good at their craft; quality makes all the difference.

“The second, was learning how best to deal with housekeeping. When we took over there was a system in place that we changed – we quickly discovered why there was a system and changed it back. Good housekeeping is critical – a big part of the business and what can get you bad reviews. We have found really good people and are willing to pay more

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PROFILES

We are pleased to be advisors to Mark & Shannon regarding their business and to assist in achieving their aims. ResortNews | October, 2019

“As for advice, management rights are obviously peoplecentric. We have 14 clients (our owners) and our primary task is making sure they are happy. Being a smaller boutique property gives us the opportunity to personally look after our owners and guests and make them feel special. “Also link up with people who know management rights and have done it successfully. We have been lucky enough to have had some great mentoring while we have been

in operation, and it has made all the difference,” adds Mark. “You also need to be prepared to work odd hours,” says Shannon. “This industry is unpredictable and you need to be able to go with the flow. “We honestly feel like it's the best address in Australia. We’re able to have an early morning walk into the Noosa National parks and we get to meet some really lovely people that come into our lives from both Australia and all over the world. To us, it’s a special job that we love”.

Talk to someone who understands your business. Natasha Gray Management Rights Specialist Gold Coast 0459 840 305 Amanda Norling Management Rights Specialist Brisbane 0459 800 461 Steve Austin Management Rights Specialist Sunshine Coast 0408 776 067

Proud to assist Mark & Shannon Sheridan at Sandcastles Noosa

Richard Smith Management Rights Specialist North Queensland 0407 632 612

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October, 2019 | ResortNews

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PROFILES

The Ritz on the Beach Resort:

Experience Leaning ever so lightly on the famous brand associated with the magnificent hotels in the most fashionable cities of the world, The Ritz on the Beach Resort in Broadbeach offers guests a welcome that is genuinely comparable. Previously retired couple, Alison and Noel Briais together with manager Megan Zerafa, are the quintessential hosts of the stylish medium rise, and despite me being on site to ask a series of questions, I was immediately made to feel

shows

like family and my allocated interview time flew by. Industry experience, relationship building skills and just knowing what’s required to establish and run a busy accom operation come naturally to the retired music teacher and long-serving police officer; while Megan, mom to six children (and now my hero) has previous hospitality experience having been a corporate hotel trainee manager, and duty manager for Holiday Inn, and she is the backbone of the resort managing the day-to-day operations. Despite its seamless operation however, the management trio are humble about what

they have accomplished in a short three years. “Prior to owning the management rights for The Ritz we had no experience with short-term or holiday lets,” says Alison. “We’ve managed two properties with long-term lets before; Rivers in the Park in Toowong that we bought off plan and went through the 2011 floods in, and Wattle Hill Apartments in Brisbane for a couple of years.

where they would pencil in bookings for the year ahead, and we thought it looked like something we’d like to manage.”

“Our experience of holiday lets was based on what we learnt of management rights years ago when we used to holiday on the Gold Coast. We would see the managers with a big book at reception

“To be honest,” says Alison, “retirement got to be a little boring. We wanted a new challenge and recognising the potential within The Ritz we set about restoring the property and rebuilding the business.”

PROFILES

Alison and Noel obviously have an innate understanding of the property industry however, having also bought and sold four ‘spec’ homes in Forest Lake area. So why get back into management rights?

ResortNews | October, 2019

WE ARE PROUD TO BE ASSOCIATED WITH THE RITZ We specialise in Management Rights Brokerage We have over 15 Brokers servicing the east coast of Australia

Alison Briais and Megan Zerafa

And restore they have. In addition to the three initial skips of worn linen, curtaining and product discarded on handover, every apartment has been repainted, new bedding has been introduced, furniture replaced – replacing fabric with leather, and installing new bedheads and curtains as well as upgrading the gym equipment, lighting and signage throughout. “It’s been remarkably rewarding bringing the property back to life,” says Alison. “Cleanliness is very important to us and we

take pride in making sure that the apartments are pristine and that our guests have the kind of holiday they are looking for.”

We are committed to making every deal a success We have over 20 years’ experience

And there is a lot to be proud of. Located in a quiet avenue, within the heart of vibrant Broadbeach, The Ritz has 28 apartments, only four to a floor and 19 within the letting pool. Guests have the choice of one- or two-bedroomed, selfcontained, air-conditioned apartments with two bathrooms and quality furnishings and fittings throughout.

Phil Trimble 0418 478 966 phil@mrsales.com.au MR Sales have an extensive range of listings Australia wide Visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: sales@mrsales.com.au

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www.crestaccountants.com.au October, 2019 | ResortNews

PROFILES

All units are north facing with a pool, garden/mountain or city view as well as curved, sun-drenched balconies on which to relax. The apartments are also all fully equipped with modern conveniences including a dishwasher, microwave, a fan-forced wall oven and

glass cook top, full laundry facilities, a flat screen TV with satellite channels or digital media player eg Apple TV and free wifi. There is also secure underground parking, and a complimentary service when staying eight or more nights. The difficulty – if one can call it that – is deciding whether

to ‘stay-in’ and partake of the resort’s external facilities including a large heated deepwater swimming pool, two heated spas, a gymnasium with a sauna, a barbecue area and a private rooftop relaxation area, or to stroll up the road to the pristine Kurrawa Beach and Kurrawa Surf Life Saving Club.

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Makes IT happen Time Out Internet provided The Ritz Resort with an in room guest wifi system in May 2017 Due to the NBN not being available as yet to the complex; they offer an amount of free daily data per unit and sell data from the login screen. Once the NBN is available, The Ritz Resort would like to upgrade to Time Out Internet’s ‘at home’ system that allows easy connectivity of all devices, SmartTV’s, casting and streaming in the unit’s own secure network with unlimited data.

Some quotes from The Ritz Resort’s testimonial ‘The proposal provided by Time Out Internet was competitively priced and the personal service

The Ritz Resort is literally a two-minute short walk from patrolled beaches, trendy cafes, fine restaurants, shopping centres, Pratten Park and The Star Casino, and the Gold Coast Airport is less than 20 km away. And for those not wanting to bother with moving the car, all forms of public transport are right on the doorstep. P56

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PROFILES

ResortNews | October, 2019

HaveaLook Websites:

Showing off your best side While The Ritz on the Beach Resort management team have refurbished and rebuilt the property into the sought-after destination venue it is today, the unassuming company responsible for the property’s online presence and ‘face’ to the world is Melbourne-based HaveaLook Websites. Operating for more than 15 years, HaveaLook specialise in building high-quality websites at an affordable price for small to medium businesses. In an industry where prices get hiked-up way too high, HaveaLook are determined to give every Australian business a fighting chance. Nothing is outsourced and they offer free support and

October, 2019 | ResortNews

processes in place to ensure that all businesses end up with a website they can be proud of”

an easy to use CMS that even a novice user can understand.

point of difference is that ‘we do it so that you don’t have to’.

Speaking of the work they undertake within the ‘leisure accom’ sector, Peter Berry, director of HaveaLook Websites says: “We never set out to specifically target the accom industry; what we have done however, is get on board with anyone that wants a high-quality website without paying tens of thousands of dollars for it. Website development is easily accessible these days so our

“Working with The Ritz was easy; they knew what they wanted and the process was smooth. They had also done well in sourcing a reputable third party for their booking system which we were able to easily plug into their website. “The greatest challenge is always trying to conceptualize our clients vision. We take the time to really understand what our clients are trying to achieve and have

PROFILES

Knowing how important an effective and responsive website is within the accom industry, Peter adds: “In today’s day and age, any man and his dog can buy a templated website or outsource the overseas for next to peanuts. However, you do get what you pay for and HaveaLook is a completely Australian owned and operated business, priding ourselves on putting blue collar Aussies first and taking care of the tasks you just simply don’t have the time to do. We ask for a bit about your business and your vision, then we get our professional designers take care of the rest, so you can focus on running your business. It’s worth just that little bit more of an investment to get the job done right.”

Frequented mostly by families with children, visitors from New Zealand and Southerners chasing the sun - some for stays between 35 to 55 nights, The Ritz also enjoys a high number of return guests, and at least 50 percent of their bookings come direct. “We’ve worked extremely hard to get to where we are now,” says Alison. “We recognised early on that the committee and owners had been let down before so we’ve taken a logical and methodical approach to everything we do. Communication is open, honest and regular and wherever possible we collaborate. We have our meetings on site so that all parties can experience the property from a guest’s perspective, and I’m pleased to say that we have very supportive relationships with both the committee and body corporate.” When asked what advice they would give to those considering management rights, Alison and Megan concur: “Management rights is a very rewarding

business, from a work and financial perspective, but it has to be managed professionally. It’s no longer the part-time, lifestyle orientated endeavour it was forty years ago and entrants need to do their homework before getting into the industry. Speak to the experts, read the agreements, know and understand the duties and have a strategy of how you’re going to perform them. “From an operational perspective, the most important aspect is to develop a good relationship with the owners,” Alison says. “Their requirements are important and should be responded to quickly. And don’t underestimate the importance of communicating with those that are not onsite or living close by. Monthly newsletters are essential to let them know what you are doing and also what you need them to do. It’s a big part of developing the kind of rapport and cooperation you need when agreements need to be reviewed.”

+ A 5% discount on accommodation + $60 dinner voucher to Sage restaurant when booking direct + A bottle of NZ Sauvignon Blanc for your 3 or more + The use of our resort pool towels night stay and receive: for the duration of your stay.

Use the code RESORT NEWS

(07) 5531 5651 8 Philip Avenue, info@theritzresort.com.au Broadbeach Qld 4218

www.theritzresort.com.au 56

PROFILES

ResortNews | October, 2019

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• New Chairs • Tables • Sun Lounges • Umbrellas • Cushions & Accessories • Prompt Service Guaranteed REPAIRS - RESLINGS AND SUPPLY OF REPLACEMENT SLINGS TO P.V.C AND ALUMINIUM OUTDOOR FURNITURE

ELECTRICAL CONTRACTORS

Phone (07) 5446 2135

CURTAINS & CURTAIN FABRIC

Suppliers of Quality Commercial Outdoor Furniture & Accessories

Gold Coast: (07) 5592 0266 w w w. L M g o l d s t a r. c o m . a u

QUALITY, COST EFFECTIVE UTILITY INFRASTRUCTURE & BILLING ADMINISTRATION

• • • • •

Bill Presentment Debt Collection Tariff Review Meter Provider Payments

• • • • •

Asset Management Energy Tendering Meter Reading Bulk Conversion Receipting

Ph: 07 3350 5999 enquiries@m2cs.com.au www.meter2cashsolutions.com.au

Mike Phipps

0448 813 090

mike@mikephippsfinance.com.au

0418 765 257

www.casualfurniture.com.au

coastalcasualoutdoors@gmail.com VISIT OUR SHOWROOM AT: Unit 4, No. 2 Cnr Captain Cook Drive and Kendor St, Arundel, QLD

Paul Grant 0448 417 754 paul@mikephippsfinance.com.au Cameron Wicking

0477 776 859

cameron@mikephippsfinance.com.au 4/31 Mary Street, Noosaville, Qld - 07 5470 2194

www.mikephippsfinance.com.au

Red

F I N A N C E

Professional & friendly service Over 30 years finance experience Accommodation funding specialists

W I D E

Year 1 $1,100

A U S T R A L I A

Holiday

Commercial Specialist Direct Importers Sales, Service & Repairs ¾LARGEST RANGE¾FURNITURE ¾UMBRELLAS¾SUN LOUNGES Cnr Main Drive & Nicklin Way, Warana, Qld 4575 | Ph 07 5493 4277 Acres Centre, 1/37 Gibson Rd Noosaville 4566 | Ph 07 5449 9336

www.daydreamleisure.com.au sales@daydreamleisure.com.au

Nick Smith - 0450 179 677 www.redtenfinance.com.au nick@redtenfinance.com.au

PREFERRED SUPPLIER DIRECTORY

Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

ResortNews | October, 2019

Australia wide service supplying all types of furniture

Management Rights Insurance Specialists stry e indu Leading h t o t r e k o insurance br

info@kudosfurniture.com.au

Whether buying or selling we have you covered U Gold Coast U Brisbane U Sunshine Coast U Townsville U Cairns . . . & Beyond

Professional Indemnity Public Liability Loss of fee income Home & Office contents Landlords ...and more

GUEST ENTERTAINMENT SYSTEMS

In All Areas . . .

www.managementrightscover.com.au

MANAGEMENT RIGHTS RN006

INSURANCE

Call 1800 688 820

AFSLN 246986 ABN 31 009 179 640

RUGECU009-190402

Discount for ARAMA members

Phone 07 55 930 007 www.raas.com.au

LINEN &/OR LINEN GOODS

Australia’s Leading Hotel Bedding Suppliers

07 5437 8544 info@mainlinen.com

GLASS INSTALLATION/REPAIRS

We get results. Pure & simple. Management Rights, Motel, Hotel and Caravan Park sales.

MAIL BOXES

1300 665 966

Quality Aust Products to meet All Building & Government Standards

DELIVERIES QLD WIDE – INSTALLATION & SERVICE IN SE QLD

P: (07) 5596 1440 E: info@sunni.com.au

Look for the sign of an Industry Specialist YOUR PARTNERS IN SUCCESS

…When you need us most!

GYMNASIUM EQUIPMENT

MGA was founded in 1975 and has since opened up 38 offices around Australia, offering Insurance products for:  Business  Strata  Landlord Protection With quick quote turnaround and hassle-free claims service Call us today on (07) 3720 6000 or email: quotes.brisbane@mga.com

Need assurance when looking for insurance?

Make the search simple... www.accomnews.com.au/business-directory

October, 2019 | ResortNews

MANAGEMENT RIGHTS AGENTS

Property Bridge MANAGEMENT RIGHTS

RESORTS

 Discreet Silent Listings  Free Market Appraisals

“Always passionate, committed and professional, you can trust the team at Property Bridge.” info@propertybridge.com.au propertybridge.com.au 1800 888 518

PREFERRED SUPPLIER DIRECTORY

Calvin Bailey LREA

0414 889 593 calvin@cbmr.com.au

Alex Barker-Re LREA 0414 835 128 alex@cbmr.com.au

CALVINBAILEYMANAGEMENTRIGHTS.COM.AU

Specialists in management rights Off the plan sales qld & victoria Buying or selling best advice Rod Askew 0411 758 236 (QLD & VIC) Eric Brizuela 0413 060 683 (QLD) Philip Robison 0410 663 111 (VIC) Nationwide: 07 3554 0040 Email: sales@rcabb.com.au

www.rcabusinessbrokers.com.au

The Management Rights Specialists

• Painting • Grounds Maintenance & Landscaping

ASBESTOS REMOVAL QUEENSLAND WIDE

FREE CALL

1800 766 366

HIRISE

• Signage & Branding SUNSHINE COAST

Matt Campbell 0410 343 219 Barry Davies 0438 554 995 Lindsay Petty 0407 029 138 contact@managementrights.com

www.managementrights.com

MOTELS, CARAVAN PARKS, HOTELS & MHE’S NATIONAL COVERAGE sales@tourismbrokers.com.au 1300 512 566 www.tourismbrokers.com.au

Specialising in Motel & Resort Sales Qld wide

• Electrical Services • Audio Visual • Data Communications • Sustainability

Call 1800 620 911 or 07 3718 1600 programmed.com.au

Find them online Wherever, Whenever! www.accomnews.com.au/business-directory

FREE QUOTES &ADVICE

MAINTENANCE PTY LTD HIGH RISE/COMMERCIAL RE-PAINT, ABSEIL ACCESS INSTALLATION & CERTIFICATION, WINDOW CLEANING, ALL ROPE ACCESS MAINTENANCE

07 5539 0828

www.hirisemaintenance.com.au info@hirisemaintenance.com.au

PEST CONTROL Servicing Brisbane & Gold Coast

PEST-NETT

PEST SERVICES

CALL TODAY TO GET YOUR PEST PROBLEMS SOLVED

Residential &Commercial

Call Now 07 3206 6721 www.terminett.com

Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au

Find them online Wherever, Whenever! www.accomnews.com.au/business-directory

Supporting and servicing the needs of both buyers and sellers of management rights throughout Tropical North Queensland PO Box 1037 Gordonvale 4865 • P 07 4056 6366

info@resortsales.com • www.resortsales.com

SOLICITORS

MANAGEMENT

RIGHTS AND MOTEL

EXPERTS EXPERIENCE COUNTS We have the largest team of specialists across Queensland and New South Wales, covering management rights and motels businesses.

GET THE RIGHT ADVICE Don’t put your accommodation industry investment at risk. Our industry knowledge is second to none.

Specialising in:  Hi-Rise Repaints  Large Complexes  Interior and Exterior  Hi-Pressure Cleaning  Concrete Spalling Repair (Concrete Cancer)  Waterproofing & Roof Membranes

SHEET METAL

Visit hyneslegal.com.au/subscribe or call +61 7 3193 0500 info@hyneslegal.com.au www.hyneslegal.com.au

LOCALLY-OWNED FOR OVER 25 YEARS

Ph 5520 1256

www.anppainting.com.au QBCC Lic No 1050861 NSW Lic No 179886C

Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work Ph 07 5593 4183

SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS

Fx 07 5593 4194 | M 0413 432 294

1800 111 622

adrian@sheetmetalimprovements.com.au

WWW.STRATACORP.COM

PAINTERS & DECORATORS

Experienced Management Rights Lawyers

COOLANGATTA TO BEENLEIGH

• Purchase or Sale

SIGNS

Fixed Price Available

(07) 5343 1000 Ask for Natalie

managementrights@ascendia.com.au

www.ascendialawyers.com.au

www.amalgamatedgroup.com.au info@amalgamatedgroup.com.au

The sign of an Industry Specialist.

PREFERRED SUPPLIER DIRECTORY

ResortNews | October, 2019

The sign of an Industry Specialist TV & VIDEO HIRE/REPAIRS

Heat Pumps

Proudly installed and serviced

Appliance Rentals New name... Bigger range...

Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588

with the same great

service

The Management Rights Lawyers

20 Personal Service. Trusted Advice.

Servicing Resident Managers throughout Australia BRISBANE: 07 3007 3777 GOLD COAST: 07 5562 2959 info@mahoneys.com.au

www.mahoneys.com.au

• equipment • repairs • regular servicing • maintenance • chemical supplies • swimming aids & toys

153 Cooyar Street, Noosa Junction (07) 5447 3896 shop@noosapoolandspa.com

Gold Coast: (07) 5592 0266 w w w. L M g o l d s t a r. c o m . a u

VALUERS - REAL ESTATE

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS Short Punch & Greatorix Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164, GCMC, Bundall QLD 9726 Fax: 5539 8745 john.punch@spglawyers.com.au

MANAGEMENT RIGHTS VALUATION SPECIALISTS

Call John Punch on 5570 9322

CERVETTO COURTICE

TRAINING & DEVELOPMENT

Q U E E N S L A N D

Classes from Coolangatta to Cairns

L AW Y E R S

Management Rights Sales & Purchases We deliver

strategic solutions

Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: cervetto@gil.com.au

in management rights

TRAINED BY THE EXPERTS

Buying or selling

Australian Valuers have proven to be the No.1 choice for this highly specialised work. Our valuation team operate on a national level providing advice to the majority of Australia’s Banks

australianvaluers.com.au mlr@australianvaluers.com.au 1800 664 094

Renewing or reviewing Negotiation and dispute resolution

Michael Kleinschmidt Legal Practitioner Director

www.stratumlegal.com.au info@stratumlegal.com.au

PH: 07 5406 1280

Leading Sunshine Coast Law Firm Flood Legal offers all the experience & expertise of a big firm while delivering accessible, personal & affordable service that comes with dealing with a small firm

Need advice regarding: • Buying / Selling • Legal due diligence reports • Variations including top up of term • Renewals/Extensions • Management & Letting Agreements • Body Corporate Issues • Off Plan Developments

Call Sharon Flood, Director - 0459 070 871 or 02 6674 5118 sharon.flood@floodlegal.com.au - www.floodlegal.com.au

SWIMMING POOL SUPPLIES/REPAIRS

1800 080 349 www.propertytraining.edu.au

Get it right the first time…call

Griffiths Parry Lawyers T: 5390 1400 www.gplaw.com.au

RELAX… AND LET US TAKE CARE OF ALL YOUR POOL NEEDS.

◆ DEDICATED ACCOUNT MANAGER for Orders, Installs, Service and Sales ◆ COMPLIMENTARY equipment assessment – why not get a 2nd opinion ◆ YOU WON’T BE DISAPPOINTED ◆ PRICE IS IMPORTANT, but so is SERVICE AND SUPPORT 9/99 LOWER WEST BURLEIGH ROAD, BURLEIGH HEADS, QUEENSLAND 4220

PHONE: 07 5535 6161

EMAIL: POOLGEAR@BIGPOND.COM

WWW.POOLGEARAUSTRALIA.COM.AU

October, 2019 | ResortNews

Reward your best suppliers by nominating them for the Preferred Supplier Programme. Simply send their details with a short testimonial to: psp@resortpublishing.com.au or call (07) 5440 5322

They’ll thank you for it!

PREFERRED SUPPLIER DIRECTORY

MANAGEMENT RIGHTS OPPORTUNITIES IN NORTH QUEENSLAND CONSIDER THE ADVANTAGES - BETTER MULTIPLIERS, BETTER YIELDS & BETTER CHOICES PALM COVE

IDEAL FAMILY LIFESTYLE EXCLUSIVE LISTING

    

Total Units/Pool: 37/17 Agreement: 25/21years Salary: $55,286 Net Income: $222,042 Real Estate: $450,000 (3/4 brm)

   

Special family lifestyle opportunity Spacious holiday Villas, most with private pools Excellent repeat business with direct clientele Great mgr Villa (190m2) Rumpus room, private pool

TOTAL PRICE: $1,390,000 - Contact Calvin TOWNSVILLE

LUXURY HIGHRISE EXCLUSIVE LISTING

    

Total Units/Pool: 73/40 Agreement: 25/21 years Salary: $135,889 Net Income: $239,968 Real Estate: $530,000 (2 brm)

   

Permanent Letting Residential Highrise All luxury apartments have stunning views Good mix of quality 2 & 3brm apartments Great growth potential. Expansion of outside pool

TOTAL PRICE: $1,492,000 - Contact Calvin

TRINITY BEACH

MODERN & BEACHFRONT EXCLUSIVE LISTING

    

Total Units/Pool: 19/14 Agreement: 25/16 years (Topup pending) Salary: $38,500 Net Income: $149,000 Real Estate: $290,000 (2 brm)

    

Luxury holiday beachfront property Impressive and built with quality Very well priced business. Now 2.4 multiplier Motivated vendors Perfect starter or add on business

TOTAL PRICE: $650,000 - Contact Alex

CAIRNS

THE JEWEL IN THE CROWN EXCLUSIVE LISTING

    



Total Units/Pool: 84/66 Agreement: 25/22 years Salary: $137,384 Net Income: $280,373 Real Estate: $375,000 (3 brm)

  

Permanent Letting. Modern Cairns Gated Community Easily managed & Onsite Mgr not required to reside onsite High demand rental area, 4km from Cairns CBD Excellent Mgr Apt, 3 brm, 2 bath 148m2. Large lawn area

TOTAL PRICE: $1,540,000 - Contact Alex

Contact: Mobile: Email:

Calvin Bailey LREA 0414 889 593 calvin@cbmr.com.au

Postal Address: PO Box 266 Palm Cove, QLD, 4879

Contact: Mobile: Email:

Alex Barker-Re LREA 0414 835 128 alex@cbmr.com.au

Australian Resident Accommodation Managers’ Association Member

www.calvinbaileymanagementrights.com.au All information/figures are supplied by the seller and are subject to check by intending purchasers