Resort News, March 2020 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 283 | March 2020 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Jack & Newell: Still offering it all

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JOIN THE 80+ FAMILY OF RESIDENT MANAGERS ALREADY BENEFITING FROM ACCOMPROPERTIES MEMBER FEEDBACK News that ARAMA members had free access to AccomProperties listing service arrived just as one of my units came up for lease, so I gave it a try. The site is easy to navigate, and I had my ad ready to go in 20 minutes, complete with photos and floor plans. I needed a little help getting it live, and a call to customer service sorted me out very quickly. My previous service took 24 hours to hit realestate.com, but with AccomProperties my ad was up in 20 minutes, and any edits were uploaded equally quickly. I had three referrals in the first hour, and the property was leased within 48 hours. Result!

Found the site easy to navigate and look forward to working with you guys next year.

Glenys Higgs, Resident Manager, No. 1 Newstead Avenue, Brisbane

Mei-Chu Wang, Resident Manager, Enoggera Manors, Brisbane

Colin & Jean Sheather, Resident Managers, Marion Hall, Gold Coast One of the benefits of being members of ARAMA is utilising their affiliates such as AccomProperties. They are economical and very supportive in the setup stage and follow on service. The platform is straight forward and easy to use. We have successfully leased properties through AccomProperties as an advertising platform. Rabih & Christina Assaf, Resident Managers, Village Circle, Brisbane Having joined AccomProperties in October 2019, I have found the portal to be very efficient and easy to use. Listings are automatically uploaded to REA and Domain instantly. The cost is very competitive compared to other agencies and IT support is always available should I need it.

Phone: 07 5440 5322

mail@accomproperties.com.au

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 March issue FRONT DESK Editor's Note: The time is now........................................... 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. © 2020 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 ARAMA Report..........................................................................10 State Report...............................................................................12 BCCM Report.............................................................................14 SCA Report.................................................................................14 MANAGEMENT Person of Interest: Jane Wilson..........................................16 Legal Ease....................................................................................18 Strata Trends..............................................................................18 Thinking MR................................................................................19 Motel Market............................................................................. 20 By All Accounts.........................................................................21 Good Governance................................................................... 22

Q&: Software...............................................................................24 Did you say pets or pests?................................................... 25 Intonet......................................................................................... 28 Beware of guest engagement technology that disengages guests.................................................................. 28 TOURISM Tourism Report…….................................................................... 30 Tourism International............................................................ 32 The Last Resort........................................................................ 33

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 DESIGN & PRODUCTION Richard McGill, production@accomnews.com.au ADVERTISING Stewart Shimmin, advertising@accomnews.com.au

Suppliers share their views in one-off, topical pieces

DEVELOPMENTS: Development News……........................................................... 36

New Manager Profiles........................................................... 40 Agent Profiles............................................................................ 42 Property Spotlight: Brisbane giving signs of being a Cinderella market................................................................ 44 PROFILES

KEY

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!

ARAMA Industry Events Calendar................................... 35

Accomproperties Sales Report......................................... 40

CONTRIBUTORS Andrew Morgan, Arvo Elias, Cameron Wicking, Col Myers, Grant Mifsud, Jane Wilson, James Nickless, John Mahoney, Lynda Kypriadakis, Mike Phipps, Nelson Brooks, Nic Ellis and Trevor Rawnsley.

Supplier information or content

Events........................................................................................... 34

PROPERTY

SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au

Commercially funded supplier profile or supplier case study

EVENTS & APPOINTMENTS

44 FRONT DESK

Jack & Newell: Still offering it all....................................... 48 Beachfront Viscount: A true metamorphosis.............. 52 PREFERRED SUPPLIERS The Preferred Supplier Directory...................................... 54 ResortNews | March 2020

EDITOR'S NOTE

The time is now “Courage doesn’t always roar. Sometimes courage is the quiet voice at the end of the day saying, “I will try again tomorrow.” – Mary Anne Radmacher By the time you read this issue, International Women’s Day will have just been celebrated and while it is a global day celebrating the social, economic, cultural and political achievements of women – it also marks a call to action for accelerating gender equality. In fact, the campaign theme for 2020 is Each for Equal. An equal world is an enabled world. Individually, we are all responsible for our own thoughts and actions - all day, every day. We can actively choose to challenge stereotypes, fight bias, broaden perceptions, improve situations and celebrate women's achievements. Collectively, each one of us can help create a gender equal world. I appreciate that there will be some rolling of eyes here, but equality is not a women's issue, it's a business issue. Gender equality is essential for economies and communities to thrive. The race is on for the

March 2020 | ResortNews

Women are helping others set goals and attain them, emphasise teamwork, and invest time in training, mentoring and personal development. Women generally view work more holistically, as a component of their overall life plan, therefore, they're more likely to approach their careers in a self-reflective way and value factors such as meaning, purpose, connection with coworkers and work-life integration.

Trish Riley, Editor editor@accomnews.com.au gender equal boardroom, a gender equal government, gender equal media coverage, gender equal workplaces, gender equal sports coverage, more gender equality in health and wealth ... so let's make it happen. This month, I was fortunate enough to interview and collaborate with some amazing women, in particular Jane Wilson, the insightful and influential acting Commissioner of the Office of the Commissioner for Body Corporate and Community Management (p16) I became conscious that the natural attributes normally assigned to women can be big differentiators as leadership qualities in the workplace.

When women bring this strength to bear for their teams and employees, it has long-lasting implications. It improves employee retention, creates stronger team players, and develops the next generation of female role models. And as each woman in the workplace does her part to work toward gender equality in her workplace, the gap will slowly but surely close. It isn't a matter of the different strengths that men and women bring to their careers, but instead how we accept the meshing of those strengths to drive companies forward in meeting their goals and setting new ones while achieving individual success. For me, it all comes down to

FRONT DESK

freedom. Freedom to pursue the opportunities we want, freedom to be ourselves and to be recognised for our contribution, freedom to live meaningful, fulfilled lives, and freedom from fear for our personal safety, regardless of our identities and affiliations. One of my favourite quotes is “In the middle of difficulty lies opportunity” – Albert Einstein. At a time when our industry appears under siege, I encourage greater lateral thinking, more respect, more connection and communication, and definitely more empathy, by all. Don’t be afraid of change, a challenge or scared of failure. Go out there and be amazing. There is a reason that you have got to the point you are at, and it is because you worked for it. There may be tough times and hard punches ahead, but the pride you will feel when you get those wins will be worth it. And who knows, perhaps one day you will go on to make history or leave your mark on the world as that girl who did something truly amazing and inspired others. I trust you will enjoy reading this issue.

UNWTO and WHO call for responsibility and coordination

Australia has now recorded two Covid-19 deaths - a 78-year old man who had been a passenger on the Diamond Princess cruise ship and a resident of an aged care facility. As the current outbreak of the Coronavirus Disease (COVID-19) continues to develop, the World Health Organisation (WHO) and the World Tourism Organisation (UNWTO) have issued a joint statement stating that they are committed to working together in guiding the travel and tourism sectors’ response to COVID-19. On January 30 2020, the Director-General of the World Health Organisation (WHO) declared the outbreak of COVID-19 to be a Public Health Emergency of International Concern and issued a set of Temporary Recommendations. WHO has subsequently raised the global risk level to ‘Very High’. The WHO chief, Tedros Adhanom Ghebreyesus, said the risk level had been elevated for two reasons; difficulty in identifying cases due to non-specific symptoms and the potential of undetected transmission, and potential for major impact on healthcare systems in some affected and potentially affected countries. WHO is working closely with global experts, governments and partners to rapidly expand scientific knowledge on this new virus, to track the spread and virulence of the virus, and to provide advice

to countries and the global community on measures to protect health and prevent the spread of this outbreak.

Cooperation is key The tourism sector is fully committed to putting people and their well-being first. International cooperation is vital for ensuring the sector can effectively contribute to the containment of COVID-19. UNWTO and WHO are working in close consultation and with other partners to assist countries in ensuring that health measures be implemented in ways that minimize unnecessary interference with international traffic and trade. Tourism’s response needs to be measured and consistent, proportionate to the public health threat and based on local risk assessment, involving every part of the tourism value chain – public bodies, private companies and tourists, in line with WHO’s overall guidance and recommendations. UNWTO and WHO stand ready to work closely with all those communities and countries affected by the current health emergency, to build for a better and more resilient future. Travel restrictions going beyond these may cause unnecessary interference with international traffic, including negative repercussions on the tourism sector. At this challenging time, UNWTO and WHO join the international community in standing in solidarity with affected countries. Source: The Guardian

New tourism campaigns hits TV screens A $2 million tourism campaign encouraging those south of the border to holiday in Queensland has hit TV screens. Premier Annastacia Palaszczuk has announced 10 million people had already seen the ads, which are being aired across Queensland, New South Wales and Victoria. The major marketing blitz hopes to encourage fellow Aussies to book a trip to the sunshine state, in a bid to provide some much-needed assistance to our struggling tourism industry impacted by bushfires and coronavirus. “The coronavirus outbreak is having a big impact on our tourism industry. Thousands of bookings have already been lost throughout the state,” the Premier said. “In terms of the economic impact, the novel coronavirus is a disaster like any cyclone, fire or flood. The latest tv ads highlight Queensland’s beaches, reef holidays and world-class events. “We live in one of the most beautiful places on the planet. We’re up for sharing that with the rest of Australia,” the Premier said.

INDUSTRY

Tourism Industry Development Minister Kate Jones said Queensland businesses and locals will be the ones who benefit the most from the ads. “One in 10 Queenslanders work in the tourism industry. And we know that tourism businesses are now doing it really tough,” she said. “We want more southerners to head north in 2020. So we’re showing them why they should holiday here. “This campaign will deliver a great shot in the arm for businesses that are struggling.” The Premier has also written to the Prime Minister Scott Morrison, asking his Government to match Queensland’s contribution of $27.25 million for a range of recovery measures. “Federal support would not only double the value of tourism marketing, it would allow us to provide a $2,000 resilience grant for up to 8,700 small businesses across impacted areas,” Ms Palaszczuk said. “And it would trigger $700,000 in export grants for small-tomedium enterprises, allowing them to travel to China and reconnect with key partners once the borders re-open. Source: MyGC

ResortNews | March 2020

Will landmark ruling change review culture? The Federal Court has ordered Google to reveal the identity of a reviewer who posted negative comments about a Melbourne business, in a ruling set to have widespread repercussions for the entire online review system. The Court backed the argument of dentist Matthew Kabbabe, who runs the teeth whitening service Asprodontics, that Google should have to reveal the identity of the reviewer so Kabbabe can take legal action. The dentist’s lawyer, Mark Stanarevic argued Google has a duty of care to businesses in allowing reviews to be published.

normal process can continue. “Potentially Google and others might have to think a bit harder about what reviews they allow to be published if they can see that on their face they look as if they’re defamatory.” One reader said of Booking. com (BDC): “BDC and others like them need to fix their ‘guidelines’ urgently so they have something telling them how to behave properly in this business area.

CBsm 23, including phone numbers, names, location metadata and IP addresses.

He said: “A bad review can shut down a business these days because most people live and breathe online.”

Similarly, AccomNews published a story recently about a Gold Coast accom operator battling with Booking.com to have “unjust” reviews removed, prompting a flood of responses from hoteliers and moteliers with similar complaints.

Google was ordered to hand over information that identified

Now OTAs and the wider online community may be forced to

rethink their policies on reviews, with last week’s landmark decision signifying online platforms are not immune to the repercussions of user comments. Rob Nicholls, associate professor at the UNSW Business School, told Business Insider Australia, “The dentist had no way of being able to serve court papers on that person directly because they were shielded by Google. So the court said to Google, you have to get rid of that shield so that the

Booking.com points out operators are given a right of reply to any review and says: “We never alter or edit these reviews in any way, as they are a reflection of the individual guest experience at each and every place to stay on Booking.com.” But as recent legal rulings in Australia have seen the pendulum swing back in favour of reviewees, accom operators are seeking a change in attitude towards comments made online. Source: AccomNews

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Call to pause new pet laws for tenants The Real Estate Institute of Victoria (REIV) has called on the state government to hold off on introducing a new “pet provision” to the Residential Tenancies Act. Under the new provisions, a landlord will not be able to unreasonably refuse consent for a tenant to keep a pet. There will be a requirement that, if a tenant wants to have a pet and the landlord does not want a pet there, the landlord will have to make an application to the Victorian Civil and Administrative Tribunal (VCAT) within 14 days. In the absence of an application, the landlord is deemed to have provided consent. In a statement, the REIV said that the provision’s imminent introduction of will result in “widespread confusion, long delays at VCAT, and an increase in surrendered and abandoned animals.” “Recent developments and a growing lack of clarity make

it essential that the Andrews’ Government holds off on the introduction of the ‘pet legislation’ until answers can be provided to many questions and some sense of balance is returned to this issue,” said Gil King, chief executive officer of REIV. “What seems to be an unintended

consequence is that now an owner must apply to the landlord for permission on a prescribed form for every animal that is intended to be kept on a leased property.” “A pet is for life, not just for the period of a tenancy,” said King. “There is no guarantee that if a

renter moves address, they will be allowed to have the pet at the new property. Therefore, the REIV is calling on the Andrews’ Government to delay the already announced introduction of these new provisions until these issues are resolved.” Source: Your Investment Property

A short-term pain Unit owners face higher insurance premiums or cancelled policies if the Gold Coast council fails to act on short-term letting, a peak body has warned.

for the policy, the building insurance broker said.

The Unit Owners Association Queensland (UOAQ) says the council is turning a blind eye to its zoning laws and allowing Airbnb-like operators to act illegally. President Wayne Stevens said Gold Coast bodies corporate had been warned by insurers they could lose their coverage if they failed to stop short-term rentals in their buildings.

The big problem is we are seeing council turn a blind eye to the usage in residential buildings, Mr Stevens said.

An insurer told Surfers Paradise towers Atlantis West, home to 166 apartments, that failure to comply with council law could jeopardise claims. In these circumstances we recommend the body corporate investigate and take appropriate steps to ensure they meet all requirements in order to avoid any implications

Residents intending to short-term let properties are often required to apply for a material change of use, which can be expensive.

We want council to see this as a priority given the high number of apartment buildings at risk. UOAQs concerns were backed by the Insurance Council of Australia, which said body corporate organisations had a duty to disclose all shortterm rental operations. insurers. The city council said it averages 300 complaints about short-term rental per year.

Non-disclosure can mean an insurance claim relating to a short-term rental may be denied, the spokesman said. It is more expensive to insure a unit building that has short-term rental activity, as this type of operation increases the risk for

Council investigates all development compliance queries and takes appropriate enforcement action where a development offence is

INDUSTRY

suspected, a spokesperson said. In the majority of cases where unlawful short-term accommodation is identified, the city is successful in achieving compliance by issuing enforcement notices. Source: Gold Coast Bulletin

ResortNews | March 2020

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ARAMA REPORT

Rallying together in a political year For those of us who live in the sunny state, 2020 is bound to be a year dominated by politics with Queenslanders asked to twice cast their votes - this month at the local area government elections and then again at October’s state election. With everything from tourism to density living among the key political issues up for debate, as rhetoric ramps up and voters hit the polls, it’s important for all participants in management rights to understand the diversity of issues that impact on our industry. Tourism alone has borne the brunt of two major events in recent times with the fire disaster and coronavirus outbreak costing operators hundreds of millions of dollars. On the Gold

Trevor Rawnsley, CEO, ARAMA

Coast alone, tourism bodies estimate the latter has already cost the city $500 million, and are calling for support from all levels of government. We are expecting Brisbane Airport’s second runway to be completed this year, which together with significant projects like the $3.6 billion Queens’ Wharf integrated resort, will help boost visitation to Brisbane and Queensland more broadly as a global tourism, leisure and entertainment destination.

Growth around events also continues, not just in capital cities, but throughout regional Australia with festivals and sporting events bringing international visitors and attracting domestic travelers to enjoy the diversity of historic and prehistoric venues and the unique beauty of our coastline and major destinations. For those who aren’t aware, this year also marks the Year of Indigenous Tourism in Queensland with the government committed to increasing Indigenous participation in tourism, generating jobs and economic outcomes. As operators, understanding key tourism decisions by governments and what opportunities they present to management rights businesses, is critical to long term success and sustainability. Zoning and redevelopment issues also remain at the forefront of debate in many growth centers across Queensland - especially in tourist centers. The rise of disrupters like Airbnb and Stayz have also put short-term accommodation in the spotlight with councils eager to address community concern around unregulated short-term letting.

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)

Issues like these can quickly become political footballs leading into elections and it is important for us to be proactive in promoting the community benefits of management rights. The profile of the management rights industry has lifted

INDUSTRY

significantly over the last decade as an important contributor to both the local and national economies. Everyone from operators to service providers must rally together to ensure this reputation is upheld among our key stakeholders. While ARAMA is not politically affiliated, the contribution our members make to tourism is understood by politicians from all parties as significant. The calibre of politicians and decision makers who attended our inaugural TOP Awards celebration last year is evidence to this point. Whether we like it or not, elections impact on unit owners, owner occupiers, tenants and guests and can unearth challenges during political campaigning, however we should all use this opportunity to our advantage. Density living complexes, apartments and units continue to generate the greatest amount of growth in the building sector – and more and more Australians will live in strata title communities in the future. This presents enormous opportunity for the management rights model in effectively serving the interests of all stakeholders. I call on all ARAMA members to play their part in making certain that their communities understand the vital role they play in projecting and protecting the reputation of Australia’s accommodation industry. ResortNews | March 2020

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STATE REPORT

New residential tenancy laws All building managers conducting permanent letting need to take note.

property. A tenant can choose whether to remove any ‘fixtures’ they have installed, provided they repair or compensate the landlord for any damage caused by removing the fixture. A tenant cannot remove any fixtures if the landlord paid for them.

Changes to the residential tenancy laws in NSW start on March 23 2020.

What are the changes? According to the NSW Government, the changes are designed to improve tenants’ renting experience while ensuring landlords can effectively manage their properties. The changes also aim to reduce disputes over repairs and maintenance, increase protection and certainty for tenants, and clarify the rights and obligations of tenants and landlords. The key changes include:

Minimum standards to clarify ‘fit for habitation’ Landlords are currently required to provide the rented property in a reasonable state of cleanliness and ‘fit for habitation’. The changes introduce seven minimum standards which clarify the meaning of ‘fit for habitation’. They are: •

Structurally sound property;

•

Adequate natural or artificial lighting in each room, except storage rooms or garages;

•

Adequate ventilation;

•

Supplied with electricity or gas and has adequate electricity or gas outlets for lighting, heating and appliances;

•

Adequate plumbing and drainage;

•

Connected to a water supply service or infrastructure for the supply of hot and cold water for drinking, washing and cleaning;

•

Contains bathroom facilities, including toilet and washing facilities, which allow user privacy.

All NSW landlords will need to ensure that their rented properties meet the minimum standards to be fit for habitation by March 23 2020. These standards must be met

Col Myers, Small Myers Hughes

at the start of each tenancy and must be maintained throughout the tenancy (by way of repairs).

New smoke alarm obligations for landlords From March 23 2020, all NSW landlords will need to ensure that smoke alarms installed in the rented property are in working order. A penalty will apply for landlords who fail to comply.

Changes of a ‘minor nature’ Tenants are currently allowed to install fixtures or make alterations, additions or renovations if they have the landlord’s written consent, or if the residential tenancy agreement permits it. If the tenant’s request for a fixture or alteration, addition or renovation is of a ‘minor nature’ then the landlord must not unreasonably withhold consent. The tenant must pay for the fixture they install or for any alteration, renovation or addition to the property that they make, unless the landlord agrees otherwise.

Damage and removing modifications Tenants are still responsible for any damage they cause to the property. The existing requirements on liability for damage and removing any alterations, additions, renovations or fixtures still apply. At the end of the tenancy, a tenant is responsible for leaving the property in the same condition as at the start of the tenancy, except fair wear and tear. This includes making sure any alterations, additions or renovations are removed and also fixing any damage caused to the

Landlords may apply to the NSW Civil and Administrative Tribunal (the Tribunal) to seek compensation from the tenant for the costs involved if the work is not done to a satisfactory standard, or if the work is likely to adversely affect the landlord's ability to let the premises to other tenants if it is not corrected.

New mandatory set break fees for fixed term agreements Mandatory set fees when a tenant breaks a fixed-term agreement early will apply to all new fixed term agreements that are three years or less. This applies to agreements that are entered into from March 23 2020 onwards.

prepared a contract for sale, or if a mortgagee (ie bank or other lender) is taking court action for possession of the property.

New material facts In addition to the current material facts, from March 23 2020, a landlord or agent will also need to disclose if the property: has been used for the manufacture or cultivation of a prohibited drug or prohibited plant in the last two years; is in a strata scheme where scheduled rectification work or major repairs will be carried out to common property during the fixed term of the agreement; is part of a building to which a: •

notice of intention to issue a fire safety order, or a fire safety order, has been issued requiring rectification of the building for external combustible cladding, or

•

notice of intention to issue a building product rectification order, or a building product rectification order, has been issued requiring rectification of the building for external combustible cladding, or

•

development application or complying certificate application has been lodged for rectification of the building for external combustible cladding.

The break fees are: Four weeks’ rent if less than 25 percent of the lease had expired; Three weeks’ rent if 25 percent or more but less than 50 percent of the lease had expired; Two weeks’ rent if 50 percent or more but less than 75 percent of the lease had expired; One week’s rent if 75 percent or more of the lease had expired. Using the example of a 12-month tenancy agreement, a tenant would only be required to provide two weeks’ rent to their landlord (that is, an amount equal to two weeks’ rent) to end their agreement early, if seven months (or 58 percent) of the agreement had expired.

Strengthened information disclosure requirements A landlord or agent must not make false or misleading statements or knowingly conceal certain material facts from a prospective tenant before they sign an agreement. Before signing an agreement, a landlord or agent must also tell a tenant of any proposal to sell the property if the landlord has

INDUSTRY

New information to be disclosed to prospective strata tenants From March 23 2020, before a tenancy agreement is signed, a landlord or agent will need to give a tenant a copy of the strata scheme’s by-laws. They will also need to inform the tenant if a strata renewal committee is currently established for the scheme. These changes provide greater protection for prospective strata tenants and are additional requirements to the general disclosure obligations.

Remedies for tenants for breaches to information disclosure obligations From March 23 2020, a tenant will be able to end their tenancy agreement by giving at least 14 days’ notice if the landlord or agent ResortNews | March 2020

fails to comply with any of the information disclosure obligations. A tenant can also apply to the Tribunal for an order to end the tenancy. The Tribunal will also have the discretion to order the landlord to compensate the tenant for any costs incurred as a result of ending the tenancy agreement.

Water efficiency measures For a landlord to be able to pass on water usage charges to the tenant, the residential property must be separately metered, meet the water efficiency measures, and the charges must not exceed the amount payable by the landlord (according to the water supplier’s bill or other evidence).

New standard form of agreement The standard form of agreement has been updated to reflect the rights and obligations between landlords and tenants under the new laws.

New condition report The condition report has been updated to reflect the new laws, including the minimum standards and smoke alarm requirements.

March 2020 | ResortNews

Other changes include:

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rent increases for periodic (continuing) leases will be limited to once every 12 months; a new definition for separately metered to reduce disputes between tenants and landlords about who pays for electricity, gas or water usage charges;

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Do the laws apply to existing residential tenancies?

Area of Service

Some of the new laws will not apply to existing agreements entered into before March 23 2020. For example: new mandatory break lease fees only apply to new fixed-term agreements that are three years or less; new landlord information statement requirements only apply when entering into a new residential tenancy agreement; new requirements around condition reports apply when the tenancy agreement is given to the tenant for signing; new information disclosure obligations apply before entering into a new residential tenancy agreement. Liability limited by a scheme approved under Professional Standards Legislation.

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INDUSTRY

BCCM REPORT

Transferring money between funds Questions regarding what the body corporate can do when there is not enough money allocated in a certain fund, in particular the transferring of money between the administrative fund and the sinking fund are common in our office. In this article we will briefly touch on what are funds, how funds are raised and whether money can be transferred between funds.

What are funds? All bodies corporate have expenses. The legislation requires bodies corporate to plan for these expenses. The money that owners contribute to the body corporate, or that the body corporate receives from other sources, is paid into what are called funds.

The Commercial Module also includes an option for a third fund, being a promotional fund.

Jane Wilson

Acting Commissioner, Body Corporate & Community Management

There are usually two funds: administrative fund and sinking fund. The administrative fund is used to pay for maintaining common property and assets, insurance, postage, service contractors such as the body corporate managers or caretakers, and other recurrent spending. The sinking fund is for major expenditure of a capital or non-recurrent nature. Examples of capital expenditure include repainting the common property or replacing a roof or lift .

Schemes registered under the 2-Lot Module still have body corporate expenses. However, the owners are not required to put money aside in the two funds. When a body corporate expense arises the two owners decide by making and recording an owners’ agreement.

Raising funds Before each annual general meeting (AGM) the committee prepares a budget for each fund. The budget sets out how much is needed during the year for the daily administration of the scheme and estimates what may be required for major works in coming years. The committee may refer to a sinking fund forecast to help determine how much is needed and when. It is not compulsory for the body corporate to do a sinking fund forecast, however it may be difficult to anticipate

the expenditure over nine years without one. The body corporate may engage a professional to complete one or complete one themselves. There is no duty on the body corporate to adhere to a sinking fund forecast. At each AGM owners vote to approve the budgets and also agree how much to pay throughout the year to raise enough money to meet the budget. These are called levies. The body corporate may choose the frequency of the levy payments throughout the year. For example, a body corporate may decide on one annual levy or split the levies into quarterly payments. Although there are two funds, the body corporate may decide to open only one bank account. The account is held in the name of the body corporate, for example, “Body corporate for Country Manor community titles scheme 1234”. Monies for each fund are deposited into the account.

SCA REPORT

The need for more protection for professionals Investing in a home is often the largest single expense in a person’s life, so it is no surprise that problems concerning a strata lot can become very emotive. Most lot owners just wanted to buy the “Great Australian Dream” only to find themselves in the fourth level of governance and regulation, being subject to far more complexity and liability than most stand-alone detached dwellings. Add to this some building defects and difficulty in obtaining or affording insurance, and it all starts to look more like a powder keg of stress and emotion. Body corporate managers often find themselves on the receiving end of owners’ exasperations, who are often unable to identify or pursue any real culprit for

Last year’s conference featured Graeme Cowan, co-founder of “R U OK?”, who provided delegates and members with some implementable tips on how to cope with stress, intimidation, and unreasonable pressure.

James Nickless, President, SCA, Qld

their problems, and struggle to separate their emotions from the actual issue because they are constantly living with the cause of their agitation. For the last year, SCA (Qld) has investigated and raised awareness of the importance of mental health in the strata industry, aiming to protect strata professionals from any form of bullying or harassment.

Following on from the conference, we issued email alerts with useful tools and advice, introduced several educational webinar topics, and undertook our first-ever Mental Health Survey, “Let us walk in your shoes”. The survey involved asking questions of strata industry professionals, such as to their perception of undue stress and then randomly selecting a sample of willing participants for a more in-depth interview. The initial data has now been analysed and the results, unfortunately, show that bullying and harassment of strata professionals, both managers

INDUSTRY

and suppliers alike, are more commonplace than we thought. The majority of those who took part in the survey were body corporate managers with over ten years’ experience. Eight in ten of these respondents had experienced verbal aggression or excessive communications, while 45 percent said they have encountered physical signs of aggression while completing their duties. Regrettably, due to the specific employment nature of body corporate managers and their status as contractors, they do not benefit from the same level of legal protections as other areas of the workforce. Nobody is perfect (body corporate managers included), but no matter what your position in society, no person should be subjected to abusive or intimidatory language or behaviour. ResortNews | March 2020

The body corporate may also invest funds. At the end of the term the principal sum is either reinvested or returned to the original fund, to be used for its intended purpose. The interest earned from each fund can be paid back into the same fund.

There is not enough money in the fund Bodies corporate cannot simply transfer money between the administrative fund, the sinking fund or the promotional fund if there is not enough money in one fund. Committee spending is limited and money must be available in the budget before the committee can spend it. If there is no provision, or insufficient provision, in the budget for the particular expenditure, the committee must call a general meeting to approve a special levy to pay for the expenditure. In some situations bodies corporate may be in a position to amend the budgets voted on at the annual general meeting by holding an extraordinary general meeting (EGM) to vote to approve new budgets

Given that body corporate managers are responsible for multiple schemes, this type of bullying can potentially occur on several different fronts simultaneously. It is therefore essential that strata staff, like anyone who works in a customer-service related role, understand that lot owner frustration often stems from the situation and the complexities of strata regulations, rather than the manager’s actions. This can be especially difficult for those just starting their strata career. However, separating the emotion from the issue and focussing on what you are legally and ethically allowed to change (as well as what is in your control and outside of your control) is a practice that all body corporate managers should learn. Learning about things like mediation, conflict coaching, and other forms of alternative dispute resolution can make a major difference in an individual’s ability to successfully navigate working in the strata March 2020 | ResortNews

and levies to accommodate any unplanned expenses. Amending the budget at an EGM is a different process from adjusting the budget at the AGM. At the AGM, the body corporate can only adjust the proposed budget up or down 10 percent. This could be done if there is a motion that passes or does not pass that has not been factored into the proposed budget. If the budget needs adjusting, those present at the meeting can be asked to vote on a procedural motion.

Too much money in a fund It doesn’t happen often but sometimes the body corporate may end up with too much money in one of its funds and be tempted to transfer it to the other fund.

provide for what to do when this happens, other than to state that monies cannot be transferred between funds. There are very limited circumstances where a body corporate can refund monies paid into the sinking fund. There have been a number of adjudicators’ orders which have dealt with the issue where monies have been collected in contravention of the legislation. One example is where a body corporate has collected levies for the payment of painting the buildings in a community titles scheme registered under a standard format plan of subdivision. In this type of scheme the painting is the owners’ responsibility not the body corporates.

This may happen because a special levy was raised and not spent for the purpose it was raised, or the body corporate raised money it was not entitled to raise (such as for painting the buildings in a standard format plan of subdivision). The legislation does not

industry and maintain their physical and mental wellness.

Therefore, owners should not have paid levies to the body corporate for this purpose. Examples of adjudicators’ orders dealing with the issue of the body corporate refunding owners. The Duporth Riverside [2017] QBCCMCmr 177 (11 April 2017)

Consistently dealing with disputes can be a dispiriting exercise, and 83 percent of our respondents stated that they spend at least an hour a week resolving arguments, with nearly 20 percent of those having more than 10 of their working hours absorbed by disagreements.

to have a negative effect on that individual. Obviously, it is not only body corporate managers that experience these pressures, resident managers, other service contractors and some lot owners all experience similar pressures. Therefore, it’s unsurprising that many respondents have considered altering or leaving their role in the industry.

The nature of community living makes this a necessary, yet unpleasant, aspect of the job, and no matter how adept a person is at compartmentalising, this type of behaviour is bound

Overall, 83 percent of respondents described bullying and harassment as a big problem in the strata industry, with 95 percent supportive of taking the initiative to raise awareness

INDUSTRY

Somerset Park [2017] QBCCMCmr 412 (24 August 2017) Another alternative for the body corporate to deal with excess funds may be for the body corporate to allocate the excess monies to the following year’s budget, allowing the owners to pay less. Adjudicators have considered the issue of amending the budget motion and not allowing the transferring of monies between funds in the following orders: Ocean Resort Village (No 1) [2016] QBCCMCmr 458 (6 October 2016) Brookwater Home Owners Club [2009] QBCCMCmr 376 (2 October 2009) Villa Vittoria [2011] QBCCMCmr 197 (10 May 2011) You can search other adjudicators’ orders on the Australasian Legal Information Institute website. Adjudicators’ orders should be used as a guide only as each dispute application is determined on the individual circumstances presented.

with the government and the public about the issue. It is also why it will form one of the state election priorities for which we will advocate in the lead up to the 2020 election. SCA is also evaluating the benefits of a free counselling service as a member benefit, which could provide strata professionals with advice on how to manage stressful situations and deal with overt negativity. The industry has been silent on this topic for far too long, with professionals and firms hesitant to stand up to abuse for fear of losing business. It’s time we stopped viewing other people’s shortcomings as our problem and added greater protections to safeguard the strata industry from burnout and cynicism. This represents such a significant impact on the wellbeing of a sector that provides homes for more than 12 percent of Queensland residents that the state government must take note.

Jane Wilson: A force for good

By Trish Riley, Editor

It is apt, as we mark International Women’s Day in March, that we interview and feature Jane Wilson, acting commissioner for the Office of the Commissioner for Body Corporate and Community Management, Department of Justice and Attorney General.

Both personable and inspiring, Jane has an impressive 26year career in defending the vulnerable and ensuring justice is served. Born in New Zealand, Jane migrated to Australia in the mid-70s with her family. She grew up and was educated on the Gold Coast. As a young girl however, Jane had no thoughts of going to university – she knew from the age of 15, with episodes of Charlie’s Angels as inspiration, that she wanted to become a police woman. She wanted to be in a position where she could help and provide justice for people, so after finishing school at 17 she

had to wait impatiently until she was the compulsory age of 19 and a half, when she could start as a probationary police officer. She was accepted to fill one of the five positions available for women. Jane remembers it being a volatile time as the Fitzgerald Inquiry was underway, but it never occurred to her to do anything else. Jane spent 10 years as a serving Queensland police officer in various roles throughout Queensland, mostly as a crime scene examiner and says that during that time she got

MANAGEMENT

to see and hear it all. Jane was the first female officer to be placed in charge of the Scenes-of-Crime Unit in western Queensland servicing 22 percent of Queensland – a time during which she honed her inquisitive mind, attention to detail and methodical approach. Every crime scene was met with purpose – and it wasn’t long before she was being requested for every large or difficult case. Outside of that role, Jane organised group activities for the youth of Mount Isa and ran two blue light discos in the towns of Bedourie and ResortNews | March 2020

Birdsville. She received several awards and commendations during her service. In 2003 Jane joined the State Penalties Enforcement Registry as an enforcement supervisor and went on to lead a team of 16 enforcement officers travelling Queensland recovering outstanding fines and court ordered compensation from debtors, enforcing the provisions of the State Penalties Enforcement Act 1999 and related legislation, before transferring in 2005 to the Corporate Governance Branch in Brisbane as project officer and then senior advisor where she prepared and coordinated the corporate reporting of various departmental publications. In 2007, Jane joined the Dispute Resolution Branch as justice mediation coordinator where she managed a team of professional mediators delivering restorative justice services to victims impacted by crime. In this role Jane was instrumental in implementing an expansion of the justice mediation program by securing three additional permanent FTEs which were then based in regional Queensland, including the Gold Coast, Central Queensland and Cairns. In 2008, Jane joined the Department of Justice and Attorney-General where she has been for more than 16 years, primarily working in legislative environments. In 2015 she won the Justice Services Award for Excellence in Leadership, recognising her efforts to successfully lead and manage teams, and in 2017 the Policy and Procedures Committee that she chairs was highly commended in the area of sustainability for its efforts in significantly reducing the usage of paper across the office. While currently the acting Commissioner, Jane has principally been the manager of Conciliation Services in the Office of the Commissioner Body Corporate & Community Management for the past 12 years. Jane believes her experience in enforcement, investigations and conciliation are all transferable skills that have stood her in good stead for working within the community management industry. “This sector is very complex,” says Jane, “and it can be consuming, particularly if you have empathy for those March 2020 | ResortNews

"As with everything I have done to date, this is a very meaningful job. Every day is different and the opportunity to create change for vulnerable clients is very rewarding involved. As with the victims I dealt with while in service, I try to remember that while we may have heard the problem or issue before, it’s brand new for them. We need to be careful not to become complacent. “The accommodation industry, and more specifically those in strata and management rights, are reeling at the moment. They have been dealt a double blow with the bushfires, numerous natural disasters and now the coronavirus and we need to be sympathetic to the extent of stress and financial pressure that everyone is likely to be dealing with because of these events. There are few that will escape the impact of these adversities, and obviously the more stress and pressure there is, the more likely it is that there will be disputes. “We see an increase in disputes year on year,” says Jane, “but the nature of the disputes change. There appear to be more legal practitioners involved now, so therefore more money and more stress. “As clients are at the centre of our decisions we rely heavily on data coming from industry bodies and inhouse reporting about where members need more help and how we can best reach them. For instance, body corporate committee members tend to need more information on meetings and voting processes while residential managers have difficulties with committee relationships, mental health issues and financial stress, but just as the issues have changed over the last 12 years, so have the means of us providing that essential education. Twelve years ago, everything was paper-based, now with changing technology and digitisation we’re acutely aware that there are a number

of stakeholders and that we need to tailor and deliver what they need in a format that best suits them, whether that be seminars, webinars, publications or social media. “What may not be appreciated however,” adds Jane, “is that our office has limited jurisdiction to deal with the requests and complaints that come in. We provide an information and education service to help those who live, invest or work in community titles schemes understand their rights pursuant to the Act, or provide dispute resolution services if there has been a breach or unreasonable decision, but the sector needs to look outside of itself for solutions. “If we take sustainability as a point of reference – and there are more and more people that are concerned about our impact on the environment – there are disputes arising around the installation of solar in community title properties. Bodies corporate should be looking into different technologies such as micro gridding that could be used to improve outcomes. “There are 50,000 community title schemes across Queensland and that number is increasing. These challenges – greener buildings, water usage, cyber-bullying, having pets onsite, the impact of short-term letting and so on are just a few of the issues that all stakeholders need to stay across. “The onus is on the body corporate to deal with bylaws and codes of conduct and it’s critical that there is continuing education for all parties about the bylaws and how to apply them, individual and committee obligations and rights, and how to regulate operations more fairly.

MANAGEMENT

“Bodies corporate should be seeking sound legal advice to review and navigate through the bylaws that relate to problematic issues such as sustainability, short-term letting and others, and providing all parties with a better understanding of how to find common ground in a sensible and reasonable manner. “Management rights is a business, and the various stakeholders are the business partners,” says Jane. “They may not all like one another but they are collectively responsible for maintaining the building to a standard that everyone is satisfied with. People may have individual ideas but the very nature of community living dictates that they learn to compromise so everyone can get on with the process. “Our role, when it comes to conciliation is about resolving issues quickly. Most cases that end up before us involve a poor understanding of the legislation and/or a misunderstanding of the facts. The issue has generally been conveyed via text or in writing and few have actually got into a room to have a face to face discussion. When they get help, they generally hear information they are unaware of and the situation is able to be diffused. So what is next for Jane? “I’ve seen a lot of change during my career; we’re moving into a digital space and I would like to see the introduction and implementation of more technology. I see a role for the use of artificial intelligence in how we deliver education and an improved, more empathetic level of service to clients. While we need to remain neutral, I believe that if we collaborate with other agencies we will be able to provide better support to those in need, particularly when it comes to mental health. “As with everything I have done to date, this is a very meaningful job. Every day is different and the opportunity to create change for vulnerable clients is very rewarding. “I’ve always enjoyed the work I have done and I intend to keep having fun,” says Jane. “I will continue to educate myself, but as a parent of two children aged 18 and 22, I recognise that the most important outcome is to have balance and a happy life. “I am fortunate to have had the opportunities afforded to me as a woman in this country.”

LEGAL EASE

Just do it… Over the past few weeks I have travelled throughout Queensland presenting the "Legal Toolkit" component of the ARAMA roadshow presentations. I have always thought that the most important, and often the most educational parts of these presentations, are the question and answer segments where attendees get the opportunity to ask questions about actual events and experiences. The recent presentations have reinforced my views about that.

STRATA TRENDS

Part of the material presented at the recent events related to avoiding disputes and building relationships with committee members and owners. The importance of striving to comply

their caretaking or management agreements, even though they could quite easily be performed in a relatively short period of time, the technically correct legal answer was that they could not be compelled to do them.

John Mahoney, Mahoneys with your agreements, doing a good job and communicating that to owners was stressed. So too was the danger of the approach that some managers take of continually seeking to do less yet wanting to be paid more for that. If that is the approach a manager takes to a management rights business then I caution, “be prepared for problems.” When some attendees asked questions about avoiding duties that might have technically been outside those required under

Other attendees who were proven successful managers suggested however, that the correct answer was to "just do it". Why push back on something that can easily be done and face the risk of resentment, conflict and disputation? Their view was that surely maintaining a good relationship with the committee, whose support you will need when seeking a top up or selling, is worth doing that little bit extra even if it might fall just outside the scope of duties. I am very conscious of managers not wanting the committee or owners to take advantage of them and of not giving in to unreasonable demands. However,

committee members and owners are no different to any other client or customer of service providers – they will generally appreciate and support the efforts of someone who goes that extra mile. Those successful managers with the "just do it" approach – those who spoke up at the presentations, and those clients of mine who I know provide excellent service, not just "reasonable" service and not just only what their agreement might require - are the ones who succeed in their businesses, have strong and supportive relationships with their owners and never have an issue with topping up their agreements. The "just do it" approach from those at the presentations reinforced how management rights can be successful, and how the approach of always looking to do less will effectively damage not only the particular manager or business, but the management rights industry on the whole.

House rules can help keep the peace The effective communication of ‘house rules’ can help keep the peace and prevent bad behaviour in strata communities, particularly when there are gatherings of people hosting events or celebrations over a holiday period. Festivities, irrespective of the reason, can strain relations between neighbouring unit occupiers in a strata community, particularly with people of diverse demographics and cultures who live close to one another. But reminding residents and visitors of the need to abide by the community by-laws within the property is usually enough to help calm tensions and prevent rowdy behaviour. Highlighting and distributing house rules around the property, particularly in common areas such as the communal swimming pool and the barbecue areas can be an effective weapon against

Displaying highly visible and clearly written house rules in line with the scheme bylaws will also help resident managers and committees enforce the regulations.

Grant Mifsud, Archers bad behaviour. For example, clearly written rules that no alcoholic beverages, food, glass, other breakable items or pets are allowed within the pool area can be a healthy deterrent. Similarly, people using the barbecue facility can be reminded that it is for the enjoyment of all residents and their guests who must be accompanied by them when in use. It is a communal area and therefore cannot be monopolised by any one party. And the introduction of cleaning fees may also be considered if the area is not left in an acceptable condition for use by others.

Unfortunately, there will be parties where guests behave badly and excessive noise and other issues cause tensions between neighbours resulting in complaints but there are many strategies to prevent these disturbances. Sometimes it’s the direct approach such as a sign saying don’t ‘smash bottles in the pool’ that the building manager or body corporate committee member can point to and say to an offender: “please obey the rules.” Whatever the potential issue, to avoid disturbances and subsequent complaints being made if there are parties in a strata community, follow these tips:

Keep the volume down Loud music and other party noise has the potential to cause

MANAGEMENT

tensions. Property by-laws will require any noise able to be heard by the neighbours ending by a certain time, usually before 10pm. If you do adjourn inside to keep partying, don’t disturb neighbouring properties.

Dress appropriately If it’s hot there could be the temptation for party goers to strip off, whether celebrations are on a unit balcony or by a communal swimming pool in the apartment complex. Remember that there are more families living in apartments these days and your guests should be appropriately attired.

Smoke gets in your eyes Take extra care if you are planning a balcony barbecue in your unit. Cooking can easily catch fire or, worse, gas bottles can explode, potentially causing a major blaze or worse. Apartment residents also need to consider whether someone smoking on their balcony will bother neighbours. ResortNews | March 2020

Five hundred years ago, Michel de Montaigne said: "My life has been ﬁlled with terrible misfortune; most of which never happened." In fact, studies suggest that 85 percent of what we worry about never happens. In most studies 79 percent of the subjects said that when the dreaded 15 percent event occurred, they found they could handle it. That means that 97 percent of what we worry about is just torturing ourselves for no good reason. The other three percent is the coronavirus or being caught on an island with a not so dormant volcano. I worry a lot, and it seems I’m not alone. However, I don’t worry about the two things that I get asked about the most. These are the two magic questions for which I wish I had a dollar, as I would now be retired and residing on some island paradise. Manus Island looks nice and given my recent return from Hong Kong with a case of the flu, perhaps a bullet dodged. In any event, and to quote Samuel Clemens, “rumours of my death are greatly exaggerated”.

Mike Phipps, Director, Mike Phipps Finance

percent. Not bad for a blue chip even with an unpleasant fine pending. Westpac is currently trading on a price / earnings ratio of 12.9. That is effectively a multiple of nearly 13 times. Interestingly CBA is trading at a PE ratio of 18.2 times on a yield of 4.89 percent. Guess which company the market is pricing in risk for? I’ll come back to this later.

The bottom line is that low interest rates and subsequent cheap debt make a really substantial impact on demand, investment decisions, business risk and profitability. The lower the interest rate, the more you can pay for a debt-funded asset, while still maintaining a strong return on equity. The value of that asset will also be impacted by the availability of other investment options and the degree of risk involved. If we assume that my mediumterm predictions for a benign interest rate environment are correct (yes, one hell of an assumption to be sure) then we might need to think about where multiples for larger management rights are going. I would suggest that for big MLRs netting say, north of $750K, the answer may well be… they are going up. Assuming the business survives due

And the two questions? What’s the rate and what’s the multiple? Usually asked without context, and as such, impossible to give a straight answer. $3M business loan, 3.65 percent... $50K credit card limit, 20 percent. $90K net and $750K unit, maybe three times and maybe falling. $1M net and $750K unit… north of six times and rising.

Please understand that I am not suggesting multiples will or should go higher and my suggested NP benchmark is just an example. I’m simply making observations in respect of some drivers that might impact multiples and cause uplift. Accor reportedly paid a 23.7 price earnings ratio for Mantra and a 39 percent premium over the average share price (inclusive of franking benefits). Yes, an integrated accommodation business of significant scale but underpinned by the value of management rights. That’s a huge difference to the sort of values we are seeing for larger management rights. You’ve got to wonder if the value gap is really that big. In closing, who the hell is Samuel Clemens I hear you ask… you probably know him better as Mark Twain. Oh, and by the way, about 50 percent of all studies are subsequently proved to be flawed. I worry about that.

Thing is, these two questions, usually asked as stand-alone enquiries, are inextricably linked.

Disclaimer: I’m not a ﬁnancial advisor and I don’t hold an AFSL. Seek appropriate independent advice and adopt some level of paranoia. It will stand you in good stead. Yes, I know there’s more to PE ratios and direct comparisons with stand alone MLRs are fraught with danger, but I think the point is worth making anyway.

This is particularly the case as investors look for something better than a two percent term deposit rate, or even the sometimes encouraging dividend yield on shares. I see Westpac’s current gross dividend yield is being quoted, admittedly on a deflated share price, at 9.3 March 2020 | ResortNews

Economic theory suggests that as this money seeks to find said home in the MLR space supply will dwindle and demand will rise. Rising demand and limited supply results in a thing called inflation. Prices rise. When the Saudis pump that last barrel of oil out of the ground or Penfolds bottle that last 2014 barrel of Grange we know the value will not be the same as it is today. Just as it is in management rights right now there will be more buyers than sellers.

MANAGEMENT

THINKING MR

Will multiples go higher? Maybe…

diligence unscathed and doesn’t present any unpleasant risks, is it really worth less than half a Westpac share? How about a third of a CBA share. Yes, the comparison is a bit tongue in cheek, but you get my point. If you know of a safer going concern business model than management rights let me know. Until then there’s a lot of money out there looking for a home and I expect that home will be management rights syndicates for many of our clients.

MOTEL MARKET

Extending leases: Who holds the value? Further to last month’s column “What is a longterm lease”, this issue looks at what is involved in extending existing leases. The extension of motel lease terms is such a hot topic that it comes up in discussion with people in the motel industry and those looking to enter at least once a week. As mentioned, often the extension of an existing motel lease is a positive for both Lessee and Lessor. However, there are those times where one may not wish to extend a lease when the other does, such as where the site is ripe for redevelopment, or a motel is no longer the highest and best use for the site, or where the rent has become

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

excessively higher than the fair market level. It is important to note that both Lessee and Lessor will have their own agenda when it comes to the term of the lease, and those agendas may not always be compatible. Leasehold tenure is obviously not the same as freehold. Predominantly they do not go on in perpetuity, they have

PROGRAMME

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an end date. This is one of the main elements of a lease, such as paying a rental, that makes it what it is. Therefore, leaseholds can be purchased at a much lower price level than a freehold motel, allowing motel operators to access the market and industry on a lower capital investment. Extending the lease pushes that end date out further, effectively providing more security to both parties. In general terms the main benefits to both Lessee and Lessor are largely the same in principle: •

Higher security of tenure

•

Greater value added

•

Easier to sell in the market

•

A stronger financing or refinancing position

When selling a motel lease, the term will play a role in determining the value of the business and the time it takes to sell that business. Short-term leases often take longer to sell and the return on investment demanded by the market is much higher. Security of tenure for those buying is under question with a shortterm, therefore the market diminishes and consequently they require a longer marketing period. Those motel buyers demanding a long-term lease often have a longer-term vision for the business, which is beneficial for the Lessor as well. Financing or refinancing is an important reason to maintain long-term leases for both parties. The security of a long-term lease that can be offered to a financial institution can mean a much stronger bargaining position from a lending perspective. A

very good client of mine since 1997 who has owned numerous freehold motels with leases in place over that time, has always looked to extend his leases. The reason he does this is that he is continually putting pressure on his financiers for better interest rates and lending terms. The longer- term leases that he keeps in place give him additional bargaining power when he is chasing even the smallest interest rate reductions on any of his loans. He does not like his leases to fall below 15 years remaining, instead preferring them to be above 20 years and demonstrating a better product in the eyes of his financiers. In the majority of cases extending lease terms involves a consideration being paid by the Lessee to the Lessor. Either party can request an extension of time from the other, being a demand for a product, and the other can supply that product being if they wish. That request is most often from Lessee to Lessor however it can be vice versa also, depending on the circumstances. Usually the Lessee requests an extension and a negotiation will commence between the parties. The amount of this consideration is not set in stone and the “sales evidence” in the marketplace varies greatly. It comes down to a negotiation between the parties, often based on, “at what level is it worth it to us to extend or not”. A financial decision is ultimately based on the value of the asset/benefit acquired. As always, when both parties act reasonably, matters of discussion between Lessee and Lessor can be resolved to the benefit of both. The extending of motel lease terms is one of those matters.

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

(07) 5440 5322

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ResortNews | March 2020

How time flies. Would you believe it’s just over a year since the tabling of the Final Report of the Banking Royal Commission (it’s got a way longer official name, but you know what I’m talking about). I’m sure you would all agree that we are certainly enjoying the positive outcomes of the millions spent with fast and effective credit processes, improved banking industry culture and transparency and a customer interest first approach… or maybe not. In any event the circus that was the royal commission did divert attention from an earlier report that, for business borrowers, has far more significant implications. In December of 2016 a lady by the name of Kate Carnell tabled a report that is formally referred to as the Small Business Loans Enquiry. Ms Carnell AO was then, and remains, the Australian Small Business and Family Enterprise Ombudsman. The report is known in banking circles as the Carnell Report and it makes for interesting reading. It also suggests that the commissioner is a street smart and savvy person with a preference for plain speaking. Pity she didn’t get the Bank Royal Commission gig. Before we get into the detail please be aware of the existence of the Australian Small Business and Family Enterprise Ombudsman Act 2015 (ASBFEO Act). Don’t read it, life’s too short, just be aware of it. We pay lawyers to know what’s in it but it’s always good to at least nudge them in the right direction. Importantly, the act defines a small business as having less than 100 employees and revenue of less than $5m. That’s most of us I reckon. Anyway, back to the Carnell Report which, three years on, is worth reflecting on. Unlike March 2020 | ResortNews

remain in many bank letters of offer. It’s important as a small business borrower to know that the Ombudsman does not support these terms and if push comes to shove you have a powerful advocate in your corner.

Cameron Wicking, Mike Phipps Finance

the ASBFEO Act this one is well worth a read. When released I was particularly interested in Section 3.2 of the report, which addresses credit contract terms and conditions. Clearly the Ombudsman came to the conclusion that banks, by means of their loan documentation, have too much power in the relationship. It is clear from the 15 recommendations in the report that a rebalancing of contractual relationships between banks and small business borrowers was a priority outcome. It seems that the banks agreed, and I am told that they have embraced the recommendations, albeit some have adopted lending up to $3m as the benchmark. The report suggests $5m but who are we to quibble. Anyway, let’s just randomly have a look at a couple of the recommendations and put them to the “real world” test. Recommendation #3 : For all loans below $5m, where a small business has complied with loan payment requirements and has acted lawfully, the bank must not default a loan for any reason. Any conditions must be removed where banks can unilaterally: •

Value security assets during the life of the loan

•

Invoke ﬁnancial covenants or catch all “material adverse change” clauses.

Recommendation #8 : All banks must provide borrowers with a choice of valuer, a full copy of the instructions given to the valuer and a full copy of the valuation report. Implementation by 1st March 2017. While banks may give some choice for commercial property valuations, it is still from their panel, with their instructions and parameters. In the residential property space, I can say for certain that no choice is given when it comes to who they use and just try to get a copy of the report you paid for… Our experience is that in the real world some banks are paying no more than lip service to recommendation #8. Maybe worth quoting if things get heated. Interestingly, particularly in light of where we are today, the Australian Bankers Association released a statement on 28th April 2017 that confirmed support for the Carnell recommendations and confirming that action was under way to ensure the recommendations were implemented.

There is a fundamental problem with the ABA statement, and it’s borne out in the Carnell Report. Senior bankers giving evidence clearly didn’t know how their businesses operate at the coal face. I don’t think any of them were being deliberately deceptive, they just took a briefing from their underlings and gave that evidence in good faith. I suspect if Kenneth Hayne confirmed anything in the Banking Royal Commission, it is this simple truth. The guys and girls at the top of these huge and complex organisations have almost no line of sight on the day to day activities of the company. There’s an easy fix for this but I am yet to see any bank implement the process. The Carnell Report is now three years old and the recommendations are just as valid today as they were in 2016. Know your rights. In closing, and I’ve said this before, your bank is not the evil empire and they are not conspiring to do you harm. But, and as Kanye said to Kim, “it’s a big but” understand what you are signing, and if in doubt ask your bank to clarify any concerns in writing before the pen hits the page.

QLD - NSW - VIC - WA

Implementation by 1st July 2017 Sadly, these type of clauses sometimes cleverly disguised, MANAGEMENT

BY ALL ACCOUNTS

The devil and the detail: Small business borrower rights

GOOD GOVERNANCE

The carpark is not the backyard shed! We’ve all seen it - dusty piles of ill-kempt household items stored in the carpark area of residential strata schemes, oftentimes to the extent that some basement carpark facilities resemble the back wall of many suburban garages. As convenient as it may be to store unwanted or seasonally redundant possessions in this way, one needs to ensure that it is not breaching the complex bylaws – or in some instances, breaking the law. From abandoned prams and old cots, through to broken bicycles and furniture, boxes of old clothes (destined for “Vinnies”), discarded electrical appliances and left-over renovation and building materials, one of the more common struggles of dwelling in a residential strata community is learning to live without the backyard ‘shed’. The residential strata carpark facilities are an essential infrastructure element, built to satisfy important mandatory planning, public safety and building requirements. Carpark facilities in multi-owned properties are designed to be safe as well as convenient, and are intended for occupants to use in preference to on-street parking, particularly in built up central business district areas. Local development and building consent authorities [councils], along with their town planners, assess development applications and impose conditions at

that deal with the use of visitor and other carparking areas, and/or the storage of personal property in basements.

DA imposed conditions on number of carparks and carpark use Lynda Kypriadakis, Diverse FMX

approval. The conditions of use of carpark spaces detailed on the development approval (DA) decision notice are mandatory and are imposed for the full life of the scheme, which means breaching DA conditions is unlawful.

Storing household items in carpark spaces is not just a bylaw breach Some community management statements include bylaws or ‘rules’ that dictate the use of carparks and storage within carpark areas, however, it is often difficult to compel those that breach the bylaws to comply. Any resident manager or caretaker will attest to the struggle of monitoring, policing and enforcing bylaws with occupants of residential strata properties. Supervising and enforcing bylaws that mandate specific behaviours within the strata scheme can be a headache – including those

Every residential strata development has been assessed and approved by the local consent authority and the conditions of use of the carpark area will be well documented. It is important that both the committee for the body corporate and the resident manager for the scheme are familiar with these conditions so they can be managed across the full life of the strata property. The DA will mandate a minimum number of carparks be available (either on title, or on the common property but for exclusive use by relevant Lot occupier/s) as well as for visitor parking). The National Construction Code, Australian Standards and local authority guidelines prescribe minimum acceptable standards for the size and construction of carparks and associated circulation aisles,

wheel stops, line marking, etc. During construction (and prior to the registration of the strata scheme), the required number and size of carparks would be checked by the private certifier before issuance of the occupancy permit (Certificate of Classification in Queensland). The approved number of carparks must remain available for carparking purposes for the full life of the building, in accordance with the occupancy permit. To use a carpark for any other purpose may pose a breach of the DA and the occupancy permit, and is unlawful.

Australian Standard for carpark planning and construction AS2890 outlines the minimum size requirements for carparks and local councils, private certifier’s, architects and builders look to these standards in their approval, certification, design and construction roles respectively. Generally speaking, the minimum size of a residential strata carpark is 2.4m wide x 5.4m long, with at least 2.3m minimum height clearance.

NOTE – The BCCMA mandates that the DA documentation is handed over to the body corporate by the developer at the ﬁrst AGM of the newly registered scheme (along with other precious construction contract and certiﬁcation documents, etc). It is a good idea to get a summary legal advice and preserve these documents in the Reserved Issues Register for posterity.

MANAGEMENT

ResortNews | March 2020

The minimum width of the circulation aisle is around 6.5m to support the safe access of vehicles to and from the carparks.

the scheme it is recommended that the body corporate seek comprehensive legal advice on the DA-imposed conditions. Not just those conditions that relate to carpark use, but for all other hidden details that generally elude us lay people and may come back to bite us in the future.

Storing household items in a designated carpark is not just a breach of bylaws. It could be breaking the law

This standard seeks to support the parking of a medium-sized vehicle in a low-medium use residential strata facility. A high use shopping centre may have a higher standard (and different height/width/length requirements) for safety reasons, but for general information, you need at least 2.4m of width and 5.4m of length in which to park a car.

A parked vehicle that extends outside the carpark lines and into the circulation aisle is a traﬃc hazard.

Other repercussions

Breach of carpark space

If breaking the law by unlawful use of carparks for storage is not sufficient enough incentive to clean up the space, there may be other adverse repercussions inadvertently imposed on the body corporate by storing household items in carpark spaces, including:

So, what happens when you put your old fridge, camping gear, push-bike and a couple of boxes of Christmas decorations at the end of your carpark space? The short answer is that, unless your carpark exceeds the minimum Australian Standard length requirements, you will be encroaching on the area set aside to park your vehicle in, thus requiring you to either park your vehicle elsewhere, or have your vehicle extend outside the extent of your carpark space and potentially, into the circulation aisle.

other essential safety infrastructure (e.g. sprinkler heads may be blocked by boxes/gear stacked to ceiling height) •

Stored items may cause trip hazards and/ or obstructions in the emergency escape pathway

•

Stored items may cause head injury hazards (e.g. surf boards or bikes mounted on wall brackets)

Legal advice

•

The storage of “flammable” items (e.g. paint, gas bottles, fuel/oil, timber, cardboard, etc.) may be a breach of conditions of insurance for the scheme, and/or a breach of fire legislation

In order to support success at committee level in enforcing important carpark use and storage bylaws, having a clear understanding of the regulatory compliance obligations is fundamental.

•

Stored items may obstruct

As soon as possible in the life of

Alternatively, a private certifier is a fabulous resource for ‘unpacking’ the conditions imposed in your DA and exactly what that means for your strata property. Some may argue that legal advice and/or the engagement of specialist consultants is expensive, but what price do you put on the voluntary hours provided by committee members who are left to figure all this ‘stuff ’ out for the benefit of the lot owners? Having seen the deterioration of interpersonal relationships between neighbours and/or the committee and the resident manager in circumstances where bylaw breaches get out-of-hand, a small investment in a sensible legal advice around avenues to compel compliance sounds like a great idea to me.

Manage your Caretaking and Building Management.

- Work Order Management

Community Engagement SMS / Email Broadcast -

- Monthly Reporting - Inspections

Preventative Maintenance -

- Compliance

Contractor Management -

Only $2 per apartment per month. Sold directly to your body corporate at no cost to you.

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March 2020 | ResortNews

MANAGEMENT

SOFTWARE Q&A

Q&A By Trish Riley, Editor

The recent round of ARAMA workshops highlighted a number of operational considerations and challenges being experienced by resident managers, and the value of having the right kind of systems and support in place to assist with day-to-day management and the mounting regulatory and bodies corporate requirements. One such issue was the significant risk and financial implications that managers and bodies corporate face if and when master keys are lost. Replacement figures of between $50,000 to $200,000 were discussed and I thought it pertinent to speak with Sam Khalef, founder of Mybos Building Management Software about a few of the features that may provide a few solutions…

Q: How does the Key Management System work? A: The module provides an instant visual audit of key activity that enables the manager to be able to see what keys have been signed in and out of the property, to who and why. The software depicts key panels based on the specific building; a private key ‘panel’ used to manage keys that a manager might hold on behalf of commercial tenants or unit owners and another that may be used to manage contractor keys. The manager has the ability to add keys simply by entering basic data such as the key identity, type and even comments where required. Once saved the ‘key’ will turn

green. When the manager needs to hand out a key, they simply select the ‘key’ and complete the pop-up form which records the key number, the date and time removed, the name of the person taking the key, their contact details and the reason for key removal. The system also provides a due date for return, prints a pass if required and can also capture a signature on a linked browser such as an ipad. Once the key has been ‘signed out’ the key on the panel will turn red. When the key is returned and signed back in the key will turn from red to green. One of the best features of the system however, is that all activity history is recorded and can be exported into a CSV file so as to provide an accurate paper trail for tracking and reporting purposes.

Q: In addition to safekeeping the master-keys for the property how can the system streamline the manager’s dayto-day operation? A: The inspection module enables the manager to easily conduct and manage all the routine inspections of assets or areas that need to be performed during standard daily, weekly or monthly ‘walk arounds’. The manager simply selects a template from the list provided (or they can create their own), review each item on the list and record a simple ‘pass’ or ‘fail’ against each item. The system also provides space to record any notes and/or photographs that may be required for record keeping purposes. Should the item require external action, the manager is able to convert the item to a ‘case’, action a work order and even establish a series of reminders. Once this step has been completed

PMS: Powerfully simple

a record of the actioned item will be emailed to the manager. And again, the system is able to provide a comprehensive history of every inspection and asset status for reporting transparency.

Q: Having a system that effectively tracks minor maintenance issues is useful but what about all of the compliance checks, preventative maintenance and larger projects? A: The system was designed specifically to address the challenges being experienced by managers with regard to the schedule of duties and volume of regulatory compliance checks that need to be performed. With manager’s as time and resource poor as they often are, it’s easy for dates and checks to be missed. The preventative maintenance module allows the manager to establish a checklist of all items that need regular review. Against each item, the manager will be able to select a date or time frame in which the item needs to be actioned as well as any specific notes relating to the task and the frequency of how often it needs to be carried out. For example, pest control checks would be scheduled bi-annually and fire pump checks every 12 months. The manager would allocate the appropriate contractor and an email with details of the job/ project or inspection, together with a work order and photographs or additional documents would then be sent to the contractor and a reminder sent to the manager. The checklist, and status of all assets and non-assets, are readily available in a management report that can be generated by frequency or by date range and is displayed in a table format.

MANAGEMENT

An added feature of this module is the ability for the manager to upload any previous maintenance calendar so as to be able to provide a comprehensive maintenance record for the building.

Q: The system appears capable of tracking onsite activities that need managing but what about the regulations and compliance issues that come with working with external contractors? A: The development of a wideranging database of reliable trades is an essential part of any successful manager’s role, and while they cannot be expected to know the status of every contractor’s license and insurance, they have a duty of care and must have a system that ensures these items are valid. The contractor’s module provides a database of preferred suppliers for the property, and each contact can be linked to the contractor agreements, work orders, quotes, invoices and previous maintenance performed by that person/company. New contractors may be added easily by simply populating a record with the primary information including name, company, contact details, category plus any additional documents such as copies of licenses and insurances together with expiry dates. Any impending expiry will be flagged to both the manager and the contractor as an item requiring action, and any work order issued will be held in check until the credentials have been renewed. The contractor database can be viewed in its entirety or filtered by contractor or category. ResortNews | March 2020

Did you say pets or pests? By Nic Ellis

Pests to look out for

Guest expectations continue to rise in the hospitality sector. Consumers not only want to have a luxurious travel experience, they also want to bring their pets along to join in on the fun. And with home-sharing companies providing competitive pet-friendly opportunities, some accoms are rising to the occasion.

Fleas

According to the Australian Pet Association, pet industry spending in 2018 was $12.2 billion – an all-time high. Millennial pet owners are willing to purchase expensive food, designer bedding, and yes, even high-end travel experiences, for their pets. Many hotel brands across the States have created attractive pet amenities to appeal to this demographic, including pet concierges, pet-centred room service menus, and even dog massages, and in Australia TripAdvisor can provide a list of pet-friendly hotels around the country. While pets and their associated amenities can help business boom, it may also cause something else to boom – pest pressures. If accoms include animals in their business plan, it’s important they also prepare for pests. March 2020 | ResortNews

Once cats and dogs are allowed on the property, the fleas that may arrive with them can become a problem for the first time. Fleas are small and difficult to see, and they multiply very quickly. In severe infestations, numerous fleas at a time may start jumping onto hotel guests, who may report being bitten. To help prevent this, managers should ensure all guestroom bedding – both for pets and humans – be washed and dried at 120-plus degrees immediately after each stay. Housekeeping should also wash couch and chair cushions, since many pets will lie on these items as well. It’s important that housekeeping regularly vacuums under beds. While this space may be overlooked in pet-prohibited hotels, it’s a common pet hangout spot and could be harbouring fleas in immature life stages.

accidentally. Accom managers should also take care to repair any cracks and gaps around doors or windows that may allow cockroaches to enter the hotel. If pet doors are on the property, they should be properly sealed.

Flies This is another pest that hospitality professionals already manage, but the fly population may increase with the presence of pets. This is especially true in outdoor spaces. Flies are attracted to food, organic matter, and moisture, so regular maintenance of pet common areas and walking zones is necessary to help prevent flies from moving in on guests. Managers need to work with an HVAC professional to create positive airflow in the hotel, so flies and other insects are pushed away, not sucked in, when doors open.

Create a solution Before welcoming pets onto the

property, managers are advised to work with a pest management professional to create a plan that stands up to increased pest pressures. An integrated pest management program can be tailored to the unique needs of the property. This type of program focuses on techniques such as sanitation, maintenance, and exclusion, so that hospitality professionals can create a safe and welcoming place for guests and their pets. Once a plan is in place, housekeeping and staff should be trained on the warning signs of common pests, as well as how to handle a pest encounter. By becoming a pet-friendly property, brands have the opportunity to create unique pet-centred amenities that can help grow revenue and brand loyalty. With the help of a pest management professional and a diligent staff, hospitality professionals can provide an excellent experience for humans and pets alike.

Cockroaches This pest is already included in pest management plans, but allowing animals into a hotel can potentially increase cockroach pressures. It is therefore important to ensure that pet food crumbs are cleaned regularly, both in guestrooms and in other spaces where animals eat. Treats kept for pets should be stored with a tight-fitting lid, and vacuums should cover the area beneath heating register covers, behind furniture, and in other places where pet food can be left MANAGEMENT

RMS deliver direct results By Trish Riley, Editor

“As a dynamic and diverse group with many years’ experience in the residential property, operation of property management and management rights sectors across Queensland, Direct Hotels & Apartments have a deep understanding of market demand and supply. We research, live, invest and stay in the towns and cities we target so that we know what we miss and what we want from accommodation and an investment. “We take the same approach with our service providers.” Lucas Scammell, general manager of Direct Hotels & Apartments is responding to my questions about the group’s long-term business relationship with RMS Management Software. “Six years ago we started looking for a company that had systems developed around specialised trust accounting. We did our research and the feedback on RMS was very positive. We’ve introduced the programmes as and when it was appropriate but we’re now using the RMS property management system (PMS), channel manager, the direct booking module and the marketing module. “With proven experience across 43 countries, the PMS is a leader in hospitality technology solutions,” says Lucas. “The software incorporates the latest advances in technology within a fully integrated cloudbased hotel PMS system that easily handles the complexities of property management. “And running seamlessly alongside the PMS is the channel manager, which effectively connects our properties with all the world's major booking channels without

Lucas Scammell, general manager of Direct Hotels & Apartments

the need for a third party. It also allows us to automatically update rates, rules and availability at the click of a mouse. “While we don’t use all of the RMS software modules, we have just taken on the ‘Book now’ - website booking engine that equips our properties to accept bookings from any device, in real time, and have started trialling the EDM feature of the marketing module. “We value the fact that RMS offer a fully integrated system that covers every crucial front- and back-end detail, from bookings to payments and beyond. More importantly however, we respect the fact that they are constantly evolving. “When we started working with them the system was moving through its transition to cloud, so there were a few challenges however; there’s been a significant and very positive change since that upgrade and its now a state of the art solution". When asked about training and support, Lucas is matter-of-fact. “We have a very good relationship with RMS,” he says. “They have got to know our business over the years, and have always been very responsive. As for the training, most of it can be done online now. We are constantly onboarding new staff so the ability for them to learn and use multiple programmes from a single source is cost effective and seamless. “Direct Hotels believe in exceptional systems and processes and that comes from partnering with those who develop the best operating systems and processes to ensure that we continue to deliver excellence and efficiency.” MANAGEMENT

ResortNews | March 2020

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global check ins

The PMS you need to check out Over 6,000 hotels, apartments and holiday parks, across 43 countries, trust RMS with their property management. Get a free demo to see why at www.r www w.rmscloud.com

The value of the invisible "It's the economy, stupid" was a slogan used by Bill Clinton in 1992 during his election campaign, although the phrase was coined by his campagna director James Carville. Yet rarely has there been a more accurate political battle cry. Over the years many ‘scales’ have been used to define a countries' economy. In the past I have written about the Coca-Cola and Big Mac scale but globally the GDP has become the ubiquitous yardstick of economic activity. None of that is new you say, and you are right. But with the enormous, and at times difficult to understand, contortions our world is going through currently, some observers have suggested that the GDP falls short because it does not include the value of free online goods such as social media, search engines, maps, videos, and so on. A new study by MIT (Massachusetts Institute of Technology) researchers puts a dollar value on all those free digital goods people use, and builds the case that online activity

researchers used three large-scale online surveys in which consumers were asked to put a price tag on the free online services they consumed. In many cases, respondents were asked whether they would prefer to keep using a free online resource, or to name a price that would compensate for losing access to that product. Arvo Elias, Cybercons

can and should become part of GDP some day. And the work by Erik Brynjolfsson, Sloan, and Felix Eggers is impressive. If you care to read their epistle you had better get out your textbook on infinitesimal calculus but it does boil down to a very interesting starting point to their research. According to the researchers the best way to find out what people wanted was to go out and ask them, all 65,000 of them (more or less). I am taking these figures directly from their quotes so I cannot haggle about that number. To conduct the study, the

The results showed up quite a few surprises with a number of distinctive findings regarding online services and specific companies, all of whom will be familiar. For instance, consumers placed an average annual value of $US1,173 on online video streaming services such as YouTube and Netflix. To be sure, these video platforms, among others, do charge fees to some consumers although those are typically $10 to $20 per month. Regardless of the options of either free or with modest charges, the surveys revealed that online video use generates a significant amount of "consumer surplus," that is, the value for consumers lay beyond the prices

they pay. In these cases, online video providers "create a lot more value then they capture," according to co-author Collis. The study also revealed the huge value that consumers place on certain categories of online goods. For instance, people valued search engines at an average of $US17,530 per year, and email at $US8,414. Collis suggests those numbers may appear that high because many people use search engines and email both at work and in their leisure time, and use both factors to assess the overall value. Regarding specific companies and products, the surveys found that consumers who use YouTube or Instagram place a lower value on Facebook. Women place a higher value on Facebook than men do, while households with an income between US100,000 and $US150,000 place less value on Facebook than both lower-income and higher-income households. This then raises the question as to which apps are the most downloaded software. In many ways the results are unsurprising.

Beware of guest engagement technology that disengages guests learning (ML, a close cousin and precursor to AI), have effectively become marketing buzzwords used to attract new customers and investors. A wave of companies have perpetuated the problem by creating a sort of “pseudo-AI”, which are more like advanced analytics rather than real AI, which is a system that can think and make decisions for itself when fed more data.

By Nelson Brooks

It’s called ‘The Singularity’ – the point at which Artificial Intelligence (AI) is indecipherable from human intelligence, essentially meaning that we as humans can’t tell the difference between our friends and our robots. Some scientists believe this will happen within the next 50 years or sooner. Others believe signs of it are visible already, including in guest engagement technology.

The human mind instantly races to disturbing scenarios resembling the likes of The Terminator and other sciencefiction stories. While the “evil”

intention of AI may never actually manifest, this does highlight a rapidly evolving trend: replacing human interaction with technology. AI and machine

MANAGEMENT

Cost savings, operational efficiencies, and removal of human error are the primary push behind this shift toward guest engagement technology, and one could certainly argue that these are all benefits. But the question remains, does implementing these ResortNews | March 2020

I do confess that I use a plethora of apps to do, in everyday terms, unusual things and do so mostly to research web technology and performance of the politically segmented web in particular. From strategically finding love, to helping researchers search for extra-terrestrial life, there is quite literally an app for almost anything these days. It is therefore no surprise that apps have become one of the largest consumer ecosystems on the planet, with the global app economy expected to reach $6.3 trillion by 2021. The data used here comes from a recent report by Sensor Tower that ranks the top 20 most downloaded apps of 2019. New entrants are rising up and threatening the dominance of more established tech companies. And players such as Disney question whether they will sustain their current position on the leader board? According to the report, total app downloads grew to 115 billion in 2019, including almost 31 billion downloads on the App Store and 84 billion on Google Play. Social media giant Facebook owns four out of five of 2019’s most downloaded apps: Facebook, Facebook Messenger, WhatsApp, and Instagram. Collectively, they boast an eye-watering

tools come at a cost? In the hospitality industry, the answer is, “yes.” While replacing humans with tech may achieve those goals, in some cases, it is counterproductive to the ultimate aim of hotels—the continuing improvement of the guest experience. Hotels apply AI and automation technology in many forms: SMS concierges, guest communication, in-room kiosks and phones, booking engines, housekeeping requests, and more. These technologies are extremely valuable in operational processes like energy saving, staffing, and internal communication. But when it is guest-facing, accoms must walk a thin line to ensure they don’t overwhelm the guest with too many buttons. Technology tends to remove human interaction from the equation, which diminishes a brand’s ability to ‘wow’ the guest in the moment. While hotels are March 2020 | ResortNews

16 billion downloads, with WhatsApp holding the top spot for the fourth year running. Growth in the short-form video category is apparent. The video creation app Likee joined this year’s ranking and sits in sixth place, with the majority of the app’s 330 million downloads coming from India. The app lets users edit videos using a wide variety of effects, and directly competes with TikTok which is a lip-syncing app that entered the ranking in 2018 and now threatens WhatsApp’s position at the top of the leader board. TikTok is the newest platform to turn its users into viral sensations, grossing $US177 million in 2019. This is equal to more than five

using AI to learn more about and better serve the guest, they are actually disengaging the guest in subtle and insidious ways. In some cases, too much tech can be overkill. Guests don’t want to fill out countless surveys, download an app, remember to text a robot, or take extra steps to perform a task easily completable by a person. They just want to feel as if someone on the other side is listening to what they say. Guests draw memorable experiences from several different areas: the design of their resort room, the view from their window, how they were treated when they needed help, the meal at an on-property restaurant, etc. All of these experiences were created by human beings, not robots. Travellers are much more likely to recall a pleasant experience with a staff member than they will texting with a chatbot. This type of digital interaction is

times its 2018 revenue. TikTok also bypassed Instagram in 2018, breaking Facebook’s foothold on the top four apps globally. TikTok is owned by Chinese tech firm ByteDance, the most valuable private company in the world with 78 percent of TikTok’s total fourth quarter 2019 revenue coming from its native country. With 2.4 billion people playing mobile games in 2019, gaming is also set to become a major player in the app economy. According to Danielle Levitas of Global Marketing consumers spent $US101 billion on apps globally in 2018. This is double the size of the global sneaker market, and nearly three times the size of the oral care industry.

often disingenuous and unlikely to leave a positive lasting impression on a guest. However, when a digital experience is negative, it can leave a lasting impression—but not a good one. If a chatbot or digital concierge answers a question incorrectly or just flat out doesn’t work like it’s supposed to, that, too, becomes memorable, but not in the same context as a positive experience with a frontline team member. In today’s world, social media has created a false sense of connection. Modern travellers crave speed and thrive on convenience. Society has forgotten how to interact faceto-face, which creates a sweet spot for hospitality brands to go above and beyond in an effort to impress guests. By using technology to facilitate a humanto-human engagement, accoms can set themselves apart. When establishments surprise and delight guests offline following some type of digital engagement,

MANAGEMENT

This story is almost never ending but I did wonder how I valued these goods? I have no doubt that I would pay more than $US17,530 to retain access to search engines. Besides not being able to research the articles I write other aspects of my, and indeed most peoples, business would suffer. I also ponder what value one would put on accessing the internet itself? Almost everything we do these days relies on that product. Once the politicians get hold of this thought however, adding these goods to GDP would immediately provide a brand new tax base of staggering proportions. Could we really afford to go in that direction?

it increases positive online mentions by a factor of 23.5 times (The ROI of a Positive Guest Experience, Cornell Hospitality Research Summit 2017). Managers may miss out on some cost savings when removing automation and AI, but would make up for it by bringing back authenticity and improving guest experience, which has an immeasurable effect. Technology needs to be the facilitator or conduit to fostering a human-to-human connection. Allowing travellers to provide feedback, communicate, or plan using an unobtrusive guest engagement technology is the solution to providing a seamless process, creating the ultimate team effort between human and machine. If hospitality brands want to leave a lasting impression on a traveller, they need to create incremental opportunities to engage with a guest in person. The singularity can wait.

TOURISM REPORT

‘There’s still nothing like Australia’ campaign roll out The first phase of Tourism Australia’s new international recovery campaign, “There’s Still Nothing Like Australia’, has been launched by Australia’s Tourism Minister, Simon Birmingham. The campaign is supported with the $25 million allocated to Tourism Australia through the Australian Government’s National Bushfire Recovery Fund. The campaign aims to stimulate demand in the short-term and gradually rebuild Australia’s reputation as a highly desirable destination. Tourism Australia is leaning heavily into its longstanding and successful global campaign platform, ‘There’s Nothing Like Australia’, by reminding the world that ‘There’s Still Nothing Like Australia’.

New visa rules encourage backpackers to help Volunteer work in the worstaffected regions can now count towards second- and third-year working holiday visas. Travellers who plan on taking a working holiday in Australia can now volunteer to help with bushfire relief as part of their application for a longer working-holiday visa. The aim is to direct larger numbers of workers to areas where help is most needed, especially on a long-term basis. The visa extension is part of a larger initiative by Australia,

including a $US40 million destination marketing campaign launched this week, to boost tourism in the wake of bushfire season and coronavirus travel bans. Prior to the change, travellers had to put in 88 days of paid – usually agricultural – work to be able to apply for a second- or third-year working holiday visa. Also known as 417 visas, these are open to travellers aged 18 to 30, or up to 35 for Canadian, French and Irish citizens. Now, unpaid volunteer work in bushfire-affected areas can count towards the total number of days. The new rules also allow people to stay up to a

year in a single job, instead of just six months as was the case before. And construction jobs have been added to the designated work activities travellers can participate in, to encourage young people with relevant skills and training to find work in affected areas. In a statement on 17 February, Alan Tudge, acting minister for immigration, citizenship, migrant services and multicultural affairs, said the new rules for working-holiday visas have been welcomed by farmers and regional businesses. “Hardworking Australians have been hit by the recent bushfires, but they can now employ backpackers for six months longer, helping them at a critical time in the recovery effort,” said Tudge. “It means working holidaymakers can help rebuild homes, fences and farms … and help with demolition, land clearing and repairing dams, roads and railways.” “Every extra working holidaymaker we can get into these communities is one extra visitor to help protect local jobs and keep local businesses alive,” said Simon Birmingham, minister for trade, tourism and investment. “The more tourism dollars these working holidaymakers can inject into these economies, the quicker these businesses can get back on their feet.”

Since the launch of 'There’s Nothing Like Australia' in 2010, international tourism spend has grown by more than $19 billion. Tourism Australia is working closely with partners to roll out the campaign globally over the coming weeks.

Queensland being touted as home of country music The Palaszczuk government has launched a major marketing push in in Nashville, Tennessee, the global home of country music, to encourage more American tourists to come to Queensland. Premier Annastacia Palaszczuk said: “Through this initiative, Queensland will be promoted to country music fans throughout the US to inspire Americans to choose Queensland as their international holiday destination in 2020 and beyond.

“Major events like CMC Rocks at Ipswich and the Gympie Music Muster support a lot of local businesses and jobs. This initiative will help to boost overall visitor numbers. “The tourism industry is struggling as a result of floods, fires and the coronavirus. Operators and businesses need all they help they can get. This initiative will have a great impact.” The initiative will be delivered through a deal struck by the Palaszczuk Government and Nashville Convention and Visitors Corp (NCVC). It comes after the government,

NCVC and the Country Music Association (CMA) signed a Memorandum of Understanding (MOU) in 2018 to promote Queensland as ‘Australia’s Home of Country Music’. Tourism Industry Development Minister Kate Jones said: “We know that people travel far and wide to experience world class major events. And this initiative is about capitalising on our events to generate more holiday bookings in Queensland,” she said.

TOURISM

“Queensland is Australia’s Home of Country Music. CMC Rocks has grown rapidly since its move to Queensland in 2015. We’ve got the Groundwater Country Music Festival, Gympie Music Muster and in 2020 we’re launching Savannah in the Round. Nashville Convention & Visitors Corp President and CEO Butch Spyridon said the offer of support to Queensland during “tough times”, builds on the strong relationship between the Music City and the Sunshine State.

ResortNews | March 2020

Beaches rated by safety and beauty

The Sunshine Coast once again boasts the state’s best beach to cool down this year, according to a new list released by Surf Life Saving Queensland (SLSQ) today. The state’s peak authority on coastal and aquatic safety released its list of Queensland’s top beaches recently, with Coolum taking out the prestigious number one spot. Alma Bay on Magnetic Island finished in second place with Gold Coast’s Burleigh Heads ranked in third position. SLSQ chief operating

The top 10 beaches were ranked as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Coolum – Sunshine Coast Alma Bay – Magnetic Island Burleigh Heads – Gold Coast Four Mile Beach – Port Douglas Cylinder Beach – North Stradbroke Island Nielson Park – Bargara Coolangatta – Gold Coast Rainbow Beach – Sunshine Coast Trinity Beach – Cairns Kings Beach – Sunshine Coast

beaches were patrolled and what services were offered, in addition to various other factors ranging from coastal conditions to Australian standard beach signage,” he said.

officer George Hill said the organisation had considered a wide variety of factors when compiling the list and selecting the winning beach. “For us, obviously the safety of swimmers and beachgoers is our first and foremost priority, so we looked at how often

“We also took into account how family-friendly the beach was, and this included a number

Gudellaphoto - stock.adobe.com

Qantas increases regional routes

Qantas shows further support for regional destinations, with the launch of direct flights from Sydney to Ballina and Sydney to Orange, making it even easier to travel to Byron Bay and central west New South Wales. March 2020 | ResortNews

From March 29 2020, a daily return flight between SydneyBallina will commence, adding more than 36,000 seats on the route each year. The Sydney-Orange route will commence from May 1, with up to 11 return services each week.

of things, including parking, access to public transport, facilities and overall cleanliness. Mr Hill acknowledged the decision could potentially upset some beachgoers who favoured other spots along the coastline. “There are so many great beaches up and down Queensland’s coastline, and trying to narrow it down to just one is always going to stir up a bit of debate,” he said. “Everyone will have their own personal opinions, preferences and special beaches they like to go with their friends and family. It was a tough decision but, in a way, that was a good problem to have – it shows how many beautiful and quality beaches we have access to in Queensland,” he said.

Underwater sites mapped for protection and pleasure Tourism Tropical North Queensland has launched a live map of daily underwater vision of the sites visited by tour vessels in the Cairns and Great Barrier Reef region. The map showcases recent photos of the Great Barrier Reef and the location of the reef systems where they were taken. Visitors can share their photos and videos of the reef by using the hashtag #GreatBarrierReefToday. Some operators have been visiting

TOURISM

the same reef for over 40 years and their ongoing connection with these sites ensures that any changes are quickly reported and monitored.

lazyllama - stock.adobe.com

TOURISM INTERNATIONAL

Top IOC member speculates on delivery of Tokyo Olympics The longest-serving member of the International Olympic Committee, Dick Pound has speculated that Tokyo 2020 could face 'cancellation' due to the fast-spreading coronavirus. Pound, in an exclusive interview with The Associated Press, did not sound alarmist rather he spoke frankly about the risks facing the Olympics and indicated that a cancellation is more likely than a postponement should challenges created by the Coronavirus prove insurmountable. Pound, a Canadian official, who has been on the IOC since 1978, estimated there is a three-month window, perhaps a two-month one, to decide the fate of the Tokyo Olympics, meaning a decision could be put off until late May. With the Games scheduled to commence on July 24 and run until August 9, Pound advised “in and around that time (May), I'd say folks are going to have to ask: 'Is this under sufficient control that we can be confident

about going to Tokyo or not?"' With a number of other major sporting events either being postponed or cancelled, the status of the Tokyo Olympics has recently been the subject of much debate. As the Games draw near, Pound added, "a lot of things have to start happening. You've got to start ramping up your security, your food, the Olympic Village, the hotels. The media folks will be in there building their studios". As of now Tokyo’s Games are on with Pound highlighting that the IOC is reliant on the guidance of the World Health Organization (WHO). The Olympic Games have only previously been cancelled during wartime in 1916, 1940 and 1944. Pound underlined that whatever advice the IOC is now getting, “it doesn’t call for cancellation or postponement of the Olympics. You just don’t postpone something on the size and scale of the Olympics. There are so many moving parts, so many countries and different seasons, and competitive seasons, and television seasons. You can’t just say, we’ll do it in October.” Pound noted “It’s a big, big,

big decision and you just can’t take it until you have reliable facts on which to base it.” Pound is encouraging athletes to keep training. About 11,000 are expected for the Olympics and 4,400 are bound for the Paralympics, which open on August 25. Pound enthused "as far as we all know, you're going to be in Tokyo. All indications are at this stage that it will be business as usual. So keep focused on your sport and be sure that the IOC is not going to send you into a pandemic situation." Meanwhile, Australian Sports Minister Richard Colbeck has said the country's Olympians could be pulled out of this year's games if it means their health is at risk. Minister Colbeck told News Corp "Australian athletes are ready to make their mark at the Tokyo Olympics, but it should not be at the risk of their health and wellbeing. "We continue to work with the relevant authorities both here and overseas to ensure our athletes remain safe and protected as the response to the Coronavirus continues."

TOURISM

Pound also noted that moving to another city would be unlikely "because there are few places in the world that could think of gearing-up facilities in that short time to put something on." Pound advised he would not favour a dispersal of events over various venues because that wouldn't "constitute an Olympic Games. You'd end up with a series of world championships" adding that it would also be very difficult to spread around all these sports in a 17-day period with only a few months’ notice. Regarding the financial impact of a cancellation, Pound pointed to the IOC’s “emergency fund” for such circumstances, which is reported to be around US$1bn and would come to the aid of International Federations (IFs), as well as the IOC itself, that are reliant on Olympic Games revenue. Pound added “this would be what you normally call a force majeure. It’s not an insurable risk and it’s not one that can be attributed to one or the other of the parties. So everybody takes their lumps. There would be a lack of revenue on the Olympic Movement side.” Source: Aus Leisure Management

ResortNews | March 2020

The Desert Cave Hotel: A lunar landscape on earth Images of the moon’s mysterious craggy ranges, rocky deserts and pockmarked surface have captivated people for decades.

haven’t been to Coober Pedy, you can’t imagine what real life underground is like – there are not just houses and hotels, but restaurants, bars, shops, museums and even churches. “Coober Pedy is the one place where you can stand at the lookout, located right above all of these buildings, and still not see most of the town!

Although most of us will never make it to the moon ourselves, there is one place you can visit that is almost as unearthly – Coober Pedy in South Australia’s Outback.

“What started as a clever way to keep opal miners cool and comfortable at night has turned into a pretty bizarre and unique lifestyle.”

Flying into the remote town, one can see thousands of pyramidlike mounds of white rock spotted over the orange sand, interspersed with deep holes tunnelling far into the ground.

Robert says some of the area’s natural formations are equally as fascinating. “Just outside the town we have the extraordinary giant rock formations The Breakaways which, on sunset, seem to glow like giant embers,” Robert says.

This bizarre landscape has been formed by men, women and families from 45 different nationalities over 100 years, all drilling with the hope of finding opal… and a quick fortune.

“The nearby Painted Desert is a mass of rocky hills bursting out of the flat plains which, in the sunlight, show off dazzling colours. “Then we have Lake Eyre – a huge expanse of shimmering white salt when it’s dry, or a basin of brilliant floodwaters, wildflowers and birdlife in wet years.

Many of the locals live in dugouts (underground homes) where the earth gives natural temperature control, and visitors have always been fascinated by this underground way of living. In 1981 Umberto Coro began to realise a dream of sharing the extraordinary experience of underground living with visitors to the town. He had been associated with the town's mining and hospitality industry for more than 26 years. He understood what visitors wanted. Unfortunately, Umberto Coro never saw his dream become a reality. Sadly, he was killed in a road accident in 1986 but his son Robert and the rest of the family continued the work to make sure that the Desert Cave Hotel would be completed. Construction began in 1984 and the Desert Cave Hotel was officially opened in 1988.

“It’s no wonder this place attracts so many artists and photographers, plus all the filmmakers – ‘Mad Max 3’ and ‘Priscilla, Queen of the Desert’ are very well known but Coober Pedy features in plenty of other great movies too. rock rooms, far below Coober Pedy’s sandy external surface. As you enter the first rooms, you sense the coolness and quiet immediately. The natural light fades and you feel, almost literally, at one with the earth.

Visitors can stay underground, or if they prefer, above ground rooms are also available.

Sleeping underground is a unique experience. Quiet, cool, dark and airy - the rooms are spacious with high ceilings.

Approaching these dwellings from the outside, you can’t tell how big or small, grand or simple they’ll be once inside. Some expand out into virtual mansions; multi-stories of carved

Imagine a place with absolutely no sound or light. There’s no heat and no humidity. It feels perfectly calm, as if time doesn’t exist and the space around you is directionless.

March 2020 | ResortNews

You’re tucked up in a comfortable bed and you drift off to sleep, with nothing at all to disturb you until your mind and body decide they’re ready to reawaken. “I’ve had a few guests who emerge for breakfast looking quite shocked by how long they’ve slept!” laughs Robert Coro, Chair of Coober Pedy Retail Business and Tourism Association and owner of the Desert Cave Hotel. “You certainly want to set an alarm if you’ve got a sunrise tour of the Breakaways or an early morning start on the Outback Mail Run. “If you TOURISM

“While it’s fantastic to have all these exciting projects happening around us, the simple things never fail to amaze people either – if you have never been out in the desert at night, stargazing at the bright Southern skies from a place that feels like the moon itself, you really should try it!” In 1989, the Desert Cave Hotel won both the South Australian and National Tourism Awards for Tourism Development. The Desert Cave Hotel again won the South Australian Tourism Award for national standard accommodation in 1990 and 1991.

Mahoneys continuing commitment to the management rights industry on February 10. As an experienced property lawyer, having practiced law for over 20 years, Amy specialises in management rights, motels and commercial property. John Mahoney commented on the appointments: "I am excited about these appointments because they reinforce our longterm strategic commitment to the management rights industry, it consolidates Mahoneys’ position as a leading management rights law firm in Australia."

Amy McKee

Mahoneys has a long proud history of supporting the Australian management rights industry – whether that be acting for clients or representing the industry through ARAMA. An irrefutable key to their success has been the quality of the team, and their unwavering commitment to providing

Amy O’Donnell

marketing leading legal services. As part of their ongoing commitment to the industry they are pleased to announce the following appointments: Amy McKee was promoted to Partner on January 1. A longstanding member of Mahoneys Gold Coast team, Amy has been a practicing lawyer for over 13 years and specialises in management rights and motels. Amy O’Donnell joined Mahoneys

Scholarships of up to $5,000 for current and aspiring female leaders Scholarships of $2,000 to $5,000 are currently available to women working in the hospitality and tourism sector to help support their participation in a range of career building leadership development programs. The initiative is providing junior through to executive managers with scholarships to support their growth and development. The scholarships

Women in Management luncheons Kicking off the year in lavish style, the first Gold Coast Women in Management luncheon was held recently at Moo Moo the Wine Bar & Grill in Broadbeach. The next luncheon has been scheduled for Wednesday, March 18 at Bine Bar & Dining, Nobby’s at 12 noon. Organiser Marisa Millane has advised that she will be introducing a 10- minute open mic session – so please bring along any questions you may have in regards to your business or service that you may want answered. This is a shared space about connection and sharing information with each other. For more information contact Marisa on 0403 764 247

EVENTS & APPOINTMENTS

assist with participation in one of three flagship development programs. The programs provide highly collaborative learning environments uniquely tailored to the needs of female leaders. Find out more and register your interest by completing the Expression of Interest form at www.wla.edu.au/grants.html before Friday, March 20.

QTIC launches 7th young professionals mentoring program The Queensland Tourism Industry Council (QTIC), has launched their Young Professionals Mentoring Program for the seventh year involving 40 people, both mentors and mentees from across the state. QTIC’s Young Professional Mentoring Program offers aspiring tourism leaders an opportunity to tap into the accumulated wisdom of senior industry representatives. Mentors and mentees will go through a structured program of professional development, tailored to the mentees’ career aspirations. QTIC Chief Executive, Daniel Gschwind advised “we don’t want to lose the experience of our outstanding tourism professionals who have built such a great industry in Queensland. By forging mentoring relationships with the next generation of leaders we can set our industry on the path to success. “The energy and enthusiasm of both mentors and mentees is evident and fills us with great confidence that the industry is in good hands”. Gschwind added: “We are very grateful for the commitment of our mentors who can see the value of working with young professionals and we are encouraged by the dedication of the mentees who are willing to make that extra effort.” Through all its workforce initiatives, QTIC remains committed to supporting a skilled and professional tourism business community. ResortNews | March 2020

Australia’s annual accommodation industry gathering – NoVacancy! Last year, over 5,000 hotel and accommodation owners and operators hit Sydney for Australia’s largest hotel and hospitality industry tradeshow and conference, NoVacancy. Attendees came from accommodation properties large and small - making the trip from around the country to spend two days finding inspiration and ideas that can drive better business results. We caught up with Brad Langton, NoVacancy Event Director, to understand what’s new and in store at this year’s event:

Q. What can visitors expect to see at NoVacancy? A. Our team spends 12 months curating hundreds of quality suppliers across many

categories; from PMS software, revenue management and marketing to decoration, art and furniture that enhance your guest experience, energy and cost saving solutions, food & beverage products, virtual reality, robots and everything in between. It’s everything you’d expect and more importantly, amazing things you’ve not thought about that can help you be more profitable.

Q. Is the seminar series the same for 2020? A. Due to demand, we have 2 new summits this year - ‘Energy Efficiency & Sustainability Summit’ which uncovers how to implement sustainability initiatives and ‘Hotel Technology Summit’ which looks at how you embrace the right solutions for your property while avoiding fads and hype. In total there are 7 summits which include Hotel

The details: What:

NoVacancy Hotel + Accommodation Industry Expo

When:

Wednesday 27th and Thursday 28th May, 2020

Where:

ICC Sydney Exhibition Centre, Darling Harbour

Details: www.NoVacancy.com.au Oﬀer:

Claim your free ticket using promo code: NVPRN20.

Leaders’ Summit, Small Hotelier Summit, Hotel Marketing Summit, Revenue & Distribution Summit and Design Talks Summit.

Q. Is the event still free, how, and why? A. Yes, NoVacancy is completely free for professionals working in the accommodation industry. Suppliers fund the production of the event by participating in the expo; it gives them a platform to showcase the products and services you may already purchase or others

that can make a difference in your business. It’s equally as beneficial for your readers to see everything under one roof across two days. Editor’s note: Special oﬀer for readers - Claim your free ticket today at NoVacancy.com.au using promo code NVPRN20. NoVacancy Expo is the must-attend annual hotel and accommodation industry event – put it in your calendar and come visit the Resort News team at the expo!

2020 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

LOCATION

Brisbane

Management Rights Industry Training Program

Wednesday, 25 March 2020

8:30am – 4pm

Riverside Hotel

Open

Byron Bay

Industry Update

Tuesday, 31 March 2020

6pm – 8:30pm

Byron Bay Services Club

Open

Sydney

Industry Update

Wednesday, 1 April 2020

6pm – 8:30pm

Adina Hotel Sydney

Open

Port Macquarie

Industry Update

Thursday, 2 April 2020

6pm – 8:30pm

The Glasshouse

Open

Brisbane

Training & Education

Tuesday, 12 May 2020

6pm – 8:30pm

Brisbane Broncos Leagues Club

Open

Gold Coast

Training & Education

Wednesday, 13 May 2020

6pm – 8:30pm

Nerang RSL

Open

Sunshine Coast

Training & Education

Thursday, 14 May 2020

6pm – 830pm

Ivory Palms Resort

Open

Brisbane

Management Rights industry Training Program

Sunday, 26 May 2019

6pm – 830pm

Riverside Hotel Southbank

Open

March 2020 | ResortNews

EVENTS & APPOINTMENTS

REGISTRATION

No need to give up on crowded cities – we can make density better The idea that we should decentralise our population has come up many times in Australia. Recently, the National Farmers’ Federation president pushed the notion, calling for a shift to the regions. And the premise is this: city living is unpleasant. Roads are jammed, housing is expensive and it’s all so much nicer out in the country. We need to “spread out”.

Urban density targets remain low in planning policies for many states. It’s often set at around 15 dwellings per hectare. In practice, even lower density is delivered.

We reject this conclusion. Regional centres certainly must play a role in accommodating our population growth, but for now it’ll be a modest role. The more immediate need is to focus on improving conditions in our major cities. Our smaller towns matter, but we can’t neglect the urgent need to get better at doing the bigger ones right.

Our estimates based on UN figures suggest Paris averages around 213 people per hectare and Barcelona 156. (By contrast, Melbourne averages 38 people per hectare and Sydney around 50.)

Our cities are growing very rapidly. The fastest growth is in Melbourne, which added 119,400 residents in 2017-18. That’s nearly as many extra people as the entire population of Darwin in a single year. This rapid growth doesn’t need to mean more traffic, ugliness or stratospheric housing prices and rents – if we confront a difficult truth.

A dirty word in Australia The truth is we’re just really ordinary at urban density. It’s so poorly executed in Australian cities that it has become a dirty word in local politics.

Australians tend to think of density as living in high-rise tiny apartments. Drop the “d-word” at your local pub and see how the term “shoebox” or “vertical slum” quickly follows. The irony is that the very thing that makes a getaway to central Paris or Barcelona so attractive is what many Australian city residents revile at home. The places we visit and admire are really quite dense.

It’s higher-density living that makes their streets and public spaces buzz. But, importantly, this density is achieved through a combination of well-designed mid-rise apartments (roughly six storeys) close to shops, services and public transport. This gives residents the best of both worlds: cities that are liveable and likeable.

A failure of planning Past failed experiments in density have made it difficult to replicate overseas examples locally. The great Australian dream of owning a quarter-acre block and the stigma around density persist with reason. In Melbourne, for example, rapid high-rise development in the last decade has delivered large

numbers of very small apartments, in some cases of poor quality and lacking natural light and ventilation. Very modest investment in public transport makes things worse, as new residents try to cram onto services that haven’t kept pace with growth. Car parking, however, is usually mandated. These planning rules mean the price of new apartments includes the expense of multiple floors of parking, and streetscapes are peppered with vehicle crossover ramps. Without adequate public transport, roads fill with cars, stoking resident opposition to further infill development. The roads and parking these cars need occupy valuable space, which could be better used for trees and urban greening. Green space is often overlooked in the haste to accommodate rapid population growth, yet it’s essential for community health and well-being and for reducing urban heat island effects. Handling population growth doesn’t require us to move to Tamworth or Toowoomba, but it will require some really important changes in our urban development priorities. There has to be a much stronger focus on quality and aesthetics to win back public support for infill development. It’s also going to take commitment to lift density targets in key planning policies. Plan Melbourne’s 2017 refresh, for instance, has moved to a goal of “over 20 dwellings per hectare”.

DEVELOPMENTS

It follows the recommendations of research in allowing higher densities in high-activity areas such as activity or town centres. However, it will take time to implement this change in existing and new areas across the city. Density must be complemented by suitable streetscapes and infrastructure. This will require a significant rethink of the role of the car in urban areas, greater investment in public transport, and a reallocation of large areas of streetscape space to greenery and pedestrians. That’s a big ask, but it’s worth it, because density really doesn’t have to mean “dogbox”.

Dutch show change is possible Take a digital walk around a neighbourhood in the Netherlands and you’ll notice on-street parking is scant, the speed limit is around 15km/h and plentiful road space is allocated to tree planting and garden beds. Kids play in the street under the watchful eye of long-term locals. You don’t notice the dense apartments around you because there are trees in the way and there’s a lot to see at ground level. Remarkably, it was only in the 1970s that the Dutch started to move away from car-oriented planning to deliver this kind of urban design, which puts people and place first. With courageous policy change, we could have this in Australia too. This article is republished from The Conversation under a Creative Commons license.

ResortNews | March 2020

Rising sea levels, water security tops infrastructure priority list Global climate issues have started to hit home with a number of highpriority initiatives singled out by Infrastructure Australia as of significant national importance.

how to efficiently and sustainably capture, use and manage water”. The report also called for a national waste and recycling management strategy to boost Australia’s recycling rate from its current 55 percent to the target of 70 percent set out in the 2014-21 waste avoidance and resource recovery strategy.

Four environmental focuses have spearheaded Infrastructure Australia’s new list of high-priority initiatives, with “resilience” against extreme weather billed as the key theme for the year ahead. Infrastructure Australia chief executive Romilly Madew said that for the first time the focus on climate initiatives reflected both the diversity and urgency of the nation's future infrastructure needs. “Compounding issues of unprecedented infrastructure demand, severe drought and other environmental changes, require a focus on our resilience strategies and a consensus on where to invest now for our nation’s future prosperity. “As an independent advisory body, it’s our role to bring these problems and opportunities into the national spotlight to spark investment and coordinated action from industry and March 2020 | ResortNews

government.” This year’s list drew on more than 200 submissions— the largest number since the list’s inception, to make recommendations for a $58 billion infrastructure pipeline of nationally significant projects.

nation’s rapidly growing waste problem and coastal inundation due to rising sea levels.

Each project was supported by a business case and was deemed to be worth more than $30 million a year in material net benefit to the Australian economy.

The proposals around a national water strategy enhancing the water security of towns and cities came in response to the Barwon-Darling River, Macquarie River and Lower Darling all experiencing critical water shortages as New South Wales currently endures the most severe drought on record.

Headlining the list’s resiliencefocused planning and investment strategy were compelling climate-based initiatives covering water security, the

Infrastructure Australia called for a long-term national water strategy to be developed within five years to guide governments, businesses and individuals “on

DEVELOPMENTS

The costs of protecting cities from rising sea levels was also laid bare with Infrastructure Australia highlighting that the effects of flooding due to coastal inundation of up to 1 metre could cause damage of between $60,000 and $80,000 per household. “Climate change brings with it higher temperatures, unpredictable seasonal rainfall and water availability, more extreme winds, more extreme weather events and bushfire seasons the likes of which Australia has never seen,” Infrastructure Australia chair Julieanne Alroe said. “By raising the profile of these issues we aim to provoke action in every jurisdiction, as well as exploration into tailored, local solutions.” Source: Urban Developer

Your Management Rights Financing Experts Management and Letting Rights Quarterly Pulse • January 20 • Ninth Series

Market Snapshot - January 2020

Data provided by The On-Site Manager website.

STOCK LEVELS…Total number of Businesses on the market has dipped slightly but still one of the highest on record June 2017

October 2017

January 2018

May 2018

August 2018

January 2019

May 2019

September 2019

January 2020

$950m 629 Properties on the market

$864m 673 Properties on the market 

$835m 604 Properties on the market 

$932m 677 Properties on the market 

$1,040m 728 Properties on the market 

$969m 697 Properties on the market 

$914m 697 Properties on the market 

$1,010m 739 Properties on the market 

$985m 716 Properties on the market 

Stock Levels have dropped slightly June 2017

October 2017

January 2018

May 2018

August 2018

January 2019

May 2019

September 2019

January 2020

Holiday - 359 Permanent - 278

Holiday - 337  Permanent 260 

Holiday - 328  Permanent 250 

Holiday - 346  Permanent 307 

Holiday - 355  Permanent 338 

Holiday - 358  Permanent 309 

Holiday - 330  Permanent 336 

Holiday - 434  Permanent 336 

Holiday - 335  Permanent 328 

4.1x 

4.3x 

and Multipliers…are INCREASING BUSINESS MULTIPLIERS (ave) OVER $1m Purchase Price 5.1x 

5.1x 

5x 

4.9x 

4.4x 

4.3x 

4.2x 

and Businesses are remaining on the market A LOT LONGER than ever recorded before… DAYS LISTED June 2017

DAYS LISTED October 2017

DAYS LISTED January 2018

DAYS LISTED May 2018

DAYS LISTED August 2018

DAYS LISTED January 2019

DAYS LISTED May 2019

DAYS LISTED September 2019

DAYS LISTED January 2020

Has reduced by 7 days to 84 days 

Has reduced by 4 days to 80 days 

Has reduced by 4 days to 76 days 

Has increased by 10 days to 86 days 

Has reduced by 16 days to 71 days* 

71 Days 

72 Days 

74 Days 

105 Days 

Market Movers The big mover in this result are the Number of Days that businesses are listed for with a jump up to 105 days from 74 days in Sep19. The last two Christmas periods had little impact on days listed however this year it appears that some stock has been taken off the market AND that far less properties sold than usual over this period. *Remained 79 days for Holiday and Permanent

P F E

(07) 5574 0500 (07) 5574 0333

info@fnx.com.au

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

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

ResortNews | March 2020

Management and Letting Rights Quarterly Pulse • January 20 • Ninth Series

Management Rights For Sale - Market Analysis - January 20 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

$494,882,350

335

101

$1,477,261

4.27

23%

61%

72%

Permanent

$413,902,938

328

117

$1,261,899

4.69

21%

41%

76%

Corporate

$39,744,444

$2,484,000

4.95

20%

58%

93%

Off The Plan

$19,228,242

$1,201,765

3.82

26%

37%

82%

Caretaking

$12,809,500

$800,594

3.33

30%

92%

81%

Retirement

$4,770,000

116

$954,000

3.13

32%

78%

48%

Grand Total or Average

$985,337,474

716

105

$1,376,170

4.3

23%

51%

81%

Comparison by Agreement Type - January 20 Purchase Price

BUSINESS MULTIPLIERS (ave)

Ave Purchase Price

Standard Agreements

3.96x

$1.43m

Sunshine Coast

Gold Coast

Brisbane

Accommodation Agreements

4.7x

$1.55m

$187m in Properties for Sale ($208m in Sep 19) 142 Properties for sale 112 Permanent 12 Corporate (20 in Sep 19) 10 Holiday 113 Days on Average Listed (76 Days in Sep 19) 4.73 Ave Multiplier $371m in Properties for Sale ($281m in Sep 19) 265 Properties for sale (212 in Sep 19) 129 Permanent 125 Holiday 104 Days on Average Listed (71 Days in Sep 19) 4.64 Ave Multiplier $207m in Properties for Sale ($197m in Sep 19) 156 Properties for sale (139 in Sep 19) 29 Permanent 120 Holiday 97 Days on Average Listed (84 days listed in Sep 19) 4.27 Ave Multiplier

March 2020 | ResortNews

P F E

(07) 5574 0500 (07) 5574 0333

info@fnx.com.au

Historical Comparison of the Market Total Properties on the market has hit a new record high. NUMBER ON THE MARKET 750

728 739

700

673 650

677

697

716

630

600

604

550 500

June-17 Oct-17 Jan-18 May-18 Aug-18 Jan-19 May-19 Sept-19

Number on the Market

Jan-20

NO. OF BULDINGS ON THE MARKET BY TYPE (Holiday & Permanent) 400 350

359

355 337

300 250

278

260

328

346

358

338

307

309

336 330

343 336

250

200 150

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

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 Oct 19 Nov 19 Dec 19 Jan 20

‘On the Market Analysis’ - Market Pulse

Resort/Holiday

Permanent

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

Regal Port Douglas | Far North Queensland

Sales Report MANAGEMENT RIGHTS Gold Coast Clearwood Villas

Garry & Jenny Wallace

Elanora

MRS

Portobello Resort Apts

Dorelle Weick

Mermaid Waters

Aqua Apartments

Sovereign MR P/L

Labrador

Southbreak

Belinda Pickwell

Bilinga

Brisbane Privium Ipswich Portfolio Ray Li

Underwood

Gallery House One & Two Aurora Assets Management Group

Hamilton

Sunshine Coast / Wide Bay / Fraser Coast Noosa Blue

Noosa Blue Lakes Property Management P/L Noosa Heads

RMS

Noosa Lakes

Noosa Blue Lakes Property Management P/L Noosaville

RMS

L-R James & Kim Swindles, Calvin Bailey, Sheryl Webby and Bob Cumming.

Allegra Hervey Bay

Andrew & Ineke Mascall

Hervey Bay

RMS

The Scarbourough

Gordon Allan

Scarbourough

Calvin Bailey of Calvin Bailey Management Rights congratulates James & Kim Swindles, on the successful purchase of Regal Port Douglas.

North Queensland City View Villas

Martin & Cassie Nugent

Cairns

CBMR

Regal Port Douglas

James & Kim Swindles

Port Douglas

CBMR

Coral Cove Apartments

Patrick & Katherine Riordan & Lindsay

Bowen

Lilly Pilly Resort

Graham and Mary Anderson

Gracemere

Whitsunday Reflections

Geoffey & Paulette Bennett

Airlie Beach

New South Wales Evolve

Andrew Dyson

Tweed Heads

MRS

Victoria Melbourne Village

West Melbourne

New to this industry, but well equipped with life’s experiences and the so essential business skills, James and Kim are really looking forward to running this top Port Douglas property. James and Kim say they are looking forward to keeping their guests in the manner to which they have become accustomed. They say they have had great mentors in Sheryl and Bob. Sellers Bob and Sheryl are looking forward to some quiet times in retirement and we at CBMR wish them all the very best.

City View Villas | Cairns – Tropical North Qld

MOTELS & OTHER Queensland Mareeba Motor Inn

Bruce Wang

Mareeba

Mareeba Motor Inn

Brad Sleurink

Mareeba

Billabong Lodge Motel

David Esler

Townsville City

Delta Backpackers

Brett Fort

Ayr

Cardwell @ the Beach

Aaron Gu

Cardwell

Motel on Gregory

QCWA

Brisbane

RB/WCH *

New South Wales Arabella Motor Inn

V. Tirumalasetti

Tweed Heads

Heritage Motor Inn

A & S Thomas

Goulburn

Pokolbin Cabins

G&S Fens

Pokolbin

Mungo Lodge

Hector Xu

Arumpo

Hawks Nest Motel

Michele Atkinson

Hawks Nest

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 40

L-R Alex Barker-Re’ and Martin Nugent

Alex Barker-Ré of Calvin Bailey Management Rights congratulates Martin on the successful purchase of City View Villas in Cairns Exciting times ahead, and Martin and Cassie are really looking forward to their new lifestyle, running this top of the range permanent property. With a vacancy rate of less than 2 percent, Cairns is amongst one of the lowest in the country.

PROPERTY

ResortNews | March 2020

SECURE YOUR FUTURE TODAY! ID 8975 HIDDEN GEM

ID 7990 SOMETHING SPECIAL EX C AG LUSI EN VE CY

• Permanent townhouse complex • 53 in the letting pool • No set office hours

• Prime rental location • 4 bed, 2.5 bath residence • 23 years on agreements

NETT PROFIT:

$245,602

ASKING PRICE:

EXCLUSIVE BROKER:

Phil Trimble – 0418 478 966

• Two permanent complexes • Small letting pool of 17 • Manageable workload

$1,895,000

ID 8974 ALL OFFERS CONSIDERED

• Immaculate 4 bedroom home • Close to schools & amenities • A1 opportunity

NETT PROFIT:

$123,000

ASKING PRICE:

LISTING BROKER:

Tony Johnson – 0433 335 679

$985,000

ID 8147 NO REQUIREMENT TO LIVE ONSITE EX C AG LUSI EN VE CY

• Small permanent complex • Low workload • 3 bed residence

• Quiet location • Easy to operate • Must sell

NETT PROFIT:

$41,860

EXCLUSIVE BROKER:

Gerard Dixon – 0433 617 515

• Permanent letting • 3 storey walk up • 23 in the letting pool

ALL OFFERS CONSIDERED

ID 8970 SOUTHERN GOLD COAST PERMANENT

• Agreements expire 2040 • No set office hours • Large 2 bed, 2 bath residence

NETT PROFIT:

$92,800

ASKING PRICE:

LISTING BROKER:

Warren Oliver – 0416 216 625

$825,000

ID 8972 NOT TO BE MISSED! EX C AG LUSI EN VE CY

• Easily run complex • Quiet & peaceful location • Close to hospital & Airport

NETT PROFIT:

• Agreements through to 2041 • 2 bed residence with new kitchen • Arrange your inspection

$104,534 ASKING PRICE: Deborah Tilley – 0424 428 489 EXCLUSIVE BROKERS: & Ian Forbes – 0432 988 628

$795,000

• Mooloolaba management rights • 24 in the letting pool • Easily managed

• 2 bed, 2 bath residence • Office attached & on title • Great facilities

NETT PROFIT:

$220,000

LISTING BROKER:

Lyn Pearsall – 0425 168 244

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:

$1,625,000

Stratacorp ﬂexes its muscle with appointment of industry expert Industry leaders, Stratacorp are thrilled to announce that industry stalwart, Larry Seburn joined the company and team of management rights property professionals on February 1. Having worked as a partner in management rights since 2013, Larry brings with him more than 20 years of experience in the tourism and management rights industries, both in Canada and Australia. He also has extensive experience with trust accounting / Resort software. “Thanks to my own diverse background, I understand the management rights industry thoroughly and know how to communicate effectively with those looking to become involved. The experience I’ve had throughout the years have taught me motivation

and discipline, and I am genuinely excited about representing Stratacorp and helping more people enter this industry. Charles Nurse, director of Stratacorp said: Stratacorp understands that having the right agent is critical to our client’s success. Our stringent processes ensure that we attract the right buyer and can successfully navigate the due diligence period, through to settlement. “We’re very excited to have Larry on board. His depth of experience, knowledge and management capabilities will complement our growing team of seasoned brokers.” Larry Seburn can be contacted on 0403 756 755 or email larry@stratacorp.com

LOOKING FOR MANAGEMENT

RIGHTS? The fastest growing Over 500 listings to accommodation listings website

choose from all the leading brokers

LOOKING FOR visit accomproperties.com.au MANAGEMENT 42

PROPERTY

ResortNews | March 2020

MANAGEMENT RIGHTS RESORTS

REDLAND BAY

MAIN BEACH

OFF-SITE MANAGEMENT OPTION

ALL CLASS

A seaside village atmosphere on Brisbane’s bayside with lovely, near new, low maintenance, free standing villas this permanent management rights business has the flexibility to live off site should you wish. Situated in a growth location within easy walking distance to the shopping village. Offering very attractive and popular villas with a plethora of schools in the area. No requirement to live onsite. Manager’s villa currently rented out. Agreements have 22 years remaining with a current salary of $102,000.

This exclusive residential tower in Main Beach will be forever new! Abundant living space with high end appointments 264 sq metre 3 bed, 3 bath, two offices on title, ducted aircon, loads of storage, three car spaces and pet friendly garden. Body Corporate renumeration $174,000, a proactive, supportive Body Corporate and endless demand for executive rental pool. There you have it! A Gold Coast Management Rights business of the highest calibre. Aiming high? … in a word “Superb”.

NETT $237,000 PRICE $1,820,000

NETT $189,000 PRICE $2,150,000

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

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

MT GRAVATT

SOUTHPORT

PART-TIME BUSINESS – TOP LOCATION

CARETAKING ONLY

A small permanent complex ideal for a part-time operator. Situated in a high demand rental location close to Westfield Garden City Shopping Centre and Griffith University campus. City Express Bus is at your door. This Brisbane management rights business has 24 years remaining on agreements with simple caretaking duties, no office hours and a salary of over $20,000 p.a. Includes a comfortable 3 bedroom manager’s townhouse with recent upgrades. Genuine motivated seller now has other priorities.

Permanent caretaking business, with a salary of $28,000, can easily be handled by one person. Earn extra income whilst retaining your full-time job or being semi-retired. No set office hours! Manager’s unit features two bedrooms, two bathrooms, two car spaces and tropical private courtyard with street level side entrance. Located in sought-after central Southport within walking distance to the transit centre, restaurants, shops, bus stops, trams and broadwater parklands. Conveniently close to private and public schools and Australia Fair shopping!

NETT $50,000 PRICE $578,000

NETT $28,000 PRICE $519,000

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

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

propertybridge.com.au | 1800 888 518

Brisbane showing signs of being a Cinderella market

By Trish Riley, Editor

The 40 percent market crash predicted by 60 Minutes (those credible property experts) hasn’t quite come to pass. The reality, in fact, is that a solidly performing Brisbane property market has beaten the predictions of doom and gloom against a backdrop of cooling southern markets and falling listings volumes, and instead demonstrated admirable resilience buoyed by steady population growth and underpinned by good economic fundamentals. “Queensland’s economy is proving itself to be a good performer, said Smiljan Jankovic, director of Archer Gowland Chartered Accountants. “While other markets around the country have faltered in the face of tightened lending criteria and cautious investor appetite, the southeast corner of Queensland continues to deliver steady, sustainable growth. As a result, the city is becoming more attractive to investors, who feel they can capitalise on current conditions for the future. “This also applies for those who are migrating from the southern

states of Australia who are looking to settle here. Brisbane’s lifestyle, new job opportunities, climate and affordability are all attractive options to these individuals and families,” he said.

Brisbane property is finally going to have its turn in the sun, with reasonable growth likely for well-located, houses, and townhouses and apartments in well run complexes.

Are they right?

According to CoreLogic, the value gap between the east coast capital city house prices is compelling – it is the largest it has ever been between Brisbane and Melbourne, and the largest in 15 years with Sydney.

Looking ahead, economic forecaster BIS Oxford Economics says Brisbane will lead the capitals, with the value of Brisbane properties forecast to surge as much as much as 20 percent over the next three years.

With improving economic growth and jobs creation supported by the biggest infrastructure spend since the 2011 flood recovery, more and more investors are now looking for opportunities in Brisbane where properties

The word on the street is that

PROPERTY

Is the Brisbane property market a good place to invest? Like most things in real estate the answer is – it depends.

ResortNews | March 2020

are more affordable, rental yields are relatively higher and future prospects for the market look bright. Significant infrastructure developments, such as Queen’s Wharf (aka the new casino), Howard Smith Wharves, TradeCoast, the Cross River Rail, the second airport runway, the Brisbane Metro and the Adani coal mine are also expected to set a solid foundation for the property market for the next decade. In the meantime, a healthy level of affordability at a time of increased interstate migration from Sydney and Melbourne, and the return of local and interstate investors seeking strong rental yields plus capital growth should help make 2020 a good year. “After a significant slowdown and downturn in sales and prices throughout 2018/19, there is more activity now with prices seeming to have stabilised and sales increasing off very low levels,” said John Mahoney, partner at Mahoneys. “The Brisbane apartment market in particular has been the focus of much negative attention due to excessive supply levels, however, the dramatic fall in apartment completions following the period of oversupply means that the stock excess has slowly been absorbed. “In fact, the slumping numbers of new apartments under construction could force an undersupply by 2022,” he said. Charles Nurse, director of Stratacorp agrees: “The demand-supply imbalance March 2020 | ResortNews

is largely due to population growth and anaemic construction activity.

for internal migration.

“In 2019 construction commenced on 2,100 apartments—a decrease of 3,000 on the 5,100 commencements recorded in 2018, and the lowest number of commencements since 2010. “If one looks at the demand side of the equation. Brisbane’s population is growing faster than the 10-year average, at about 23,000 new residents per year. It is estimated, based on the last decade, that there is a need to build 6,000 new dwellings each year across inner Brisbane. Nearly all of these new dwellings will be apartments.

“It’s great to see a steady recovery from historical lows,” said Darren Brent, managing director of Property Bridge. “We have seen a definitive increase in buyer activity in both short-term and permanent business models, and we see this trend continuing. “Since APRA changed the borrowing guidelines and interest rates have come down, we’ve seen a massive change

“With only 2100 apartments being built and 1800 apartments currently being marketed, together with an increased rate of population growth, vacancy rates are likely to tighten over the next couple of years and this will drive strong rental growth, improved yields and a pick up in apartment prices,” he said. These forecasts all bode well for the management rights sector. Apart from the general decrease in property development having an impact on ‘off-the-plan’ sales, the growing demand has also brought the vacancy rate down to a low 1.8 percent, perfect for investors hoping to find tenants easily. Families and down sizers from the southern cities are still moving to South East Queensland to cash-in on a lifestyle in the sun, and this has made Queensland Australia’s number one destination PROPERTY

in the number of sales of properties. A lot of renters are now in a position where they can afford to buy rather than rent.” Smiljan Jankovic concurs: “The market is currently more competitive than ever before. Sales have picked up during the post-election period – and unsurprisingly we are seeing sales of permanent complexes being viewed as more attractive when compared to short-term lets.

TheManagement Rights Lawyers BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

DISPUTE RESOLUTION

www.mahoneys.com.au 45

“Besides new entrants in the industry, the small and medium management rights are attracting existing management rights operators that are looking to increase their existing portfolio. There is also a big demand for the middle market, but not a lot of stock available. “What we are seeing more of, is a high demand for large management right businesses, with net profit over $400k, which is attractive to syndicates and experienced managers who are looking to scale up,” he said.

is the favourite destination. “The reduction of China’s regime of capital controls provides the big opportunity to boost Chinese investment in Australian residential real estate,” added Darren Brent. “Other factors that could significantly boost Chinese demand are the reduction of foreign buyer taxes in the various Australian states and the return of the Australian home market to positive price growth.”

There’s another big reason that Chinese buyers are here — Australian property is looking relatively cheap. “Overall there are many positive factors underpinning the property market: strong population growth and net migration up 27.3 percent yearon-year; low unemployment and good employment growth with ABS reporting trend employment increased by 303,100 persons (or 2.5 percent), which was above the average

annual growth rate over the past 20 years; and inflation is under control at the lower end of the RBA’s target band of 2-3 percent,” added John Mahoney. Brisbane is also one of the world’s great cities. Liveability, affordability, scale and future economic prospects all suggest that Brisbane is a market where you can confidently buy. So if you have an eye on a home or investment property in 2020 which are the suburbs to watch?

So where are the buyers coming from? “While the vast majority of buyers of Brisbane management rights are still of Chinese origin,” said John Mahoney, “it’s not as prevalent as it was. This may be a reflection that the assignment process and compliance requirements are impeding entry, or it could be a reaction to the financial restrictions felt last year. Not that there is any significant concern being felt by brokers. A new study has suggested that of the 1.2 million Chinese tourists visiting Australia every year, as many as a quarter could be looking to buy a property here, and after Melbourne Brisbane

PROPERTY

ResortNews | March 2020

There are no surprises here. Darren Brent said the best places to invest in are the areas close to CBD. In terms of property type, apartments and townhouse developments are the way to go. The five suburbs, that tick all the right boxes in terms of location and growth prospects however, include Kurwongbah, Mount Gravatt, Highgate Hill, Chermside and Logan Reserve. "The basics indicate that buying a property within reasonable proximity of the city as best you can afford will be the surest approach this year. The flex points are that you can travel further out but be nearby to public transport options, major services, and employment centres," said Darren Brent. By all accounts, Brisbane's property market and economy are showing signs of improvement from a period of lull over the past decade; There are however, (as there always are) a few factors that could dampen a full-blown property boom, including the uncertainty surrounding the current financial landscape. Markets are currently in flux and there is a significant toll being borne by the tourism, education and financial sectors as a result of recent run of natural disasters. A lot of Chinese investment enters the market as a result of tourism and the highlyregarded tertiary education system, with students travelling to Australia to study. With recent travel bans in place, the number of students travelling to Australia to study have been decimated – therefore impacting student accommodation, and residential accommodation. The way it looks, the impact of the virus on Chinese interests in Australian property will be both good and bad. Foreign March 2020 | ResortNews

Investment Review Board (FIRB) reported that foreign investment plunged by 58 percent year-onyear from $30 billion to $13 billion in the 2017/18 fiscal year – the lowest level in nearly a decade. This will be compounded by the uncertainty around the virus, so in the short term, we may see an initial drop in demand. The current travel ban has limited many Chinese nationals to enter Australia, especially the international students with many either buying for the short term or buying when they continue living in Australia after graduation. Also, if China continues to restrict the flow of funds out of their country to protect their own economy, it limits the ability of Chinese investors to buy property in Australia. On the other hand, in the long term, many more Chinese may want to migrate overseas, as the virus has made them feel vulnerable in China. If so, we will see a resurgence of strong demand from Chinese foreign buyers in the near future. But a lot is dependent on how the Chinese Government limits the flow of funds to overseas if the economy is doing poorly and also if any easing of Australia’s policy towards foreigner buyers. Unfortunately, no one has a crystal ball to be able to accurately predict the future. We can’t be sure how the coronavirus health crisis will pan out globally. We also can’t be exactly sure how it will affect the Australian economy or our property market until we see an end to the crisis. Despite the immediate insecurity, John Mahoney said that he anticipates "sustained gains" and for the market to stay strong throughout 2020.

Brisbane Level 4, 97 Creek St, Brisbane 07 3002 2699

PROPERTY

Gold Coast Level 3, Southport Central 3, 9 Lawson St, Southport

Smiljan Jankovic: smiljanj@archergowland.com.au www.archergowland.com.au

Jack & Newell: Still offering it all

We live by our process. Holmans. Accountants to the accommodation industry. Valuable services we provide at Holmans include:

• Financial due diligence • Business structuring advice • Budgeting & business planning • Cash flow & profit and loss predictions • Settlement procedures & checklists • Asset protection advice • Accounting, taxation & trust audits • Sale of business statements Holmans are registered as one of the leading accommodation advisory firms in Queensland.

Holmans are proud of our association with Jodie and Michael and wish them every success for the future

Who have you entrusted to look after your financial future? 0414 228 697 | trossiter@holmans.com.au | holmans.com.au

PROFILES

ResortNews | March 2020

By Trish Riley, Editor

Long before the days of Woolworths, David Jones or Bunnings, Far North Queensland had its own retail giant – the home-grown firm of Jack & Newell. Scotsman William Jack and Irishman John Newell first crossed paths in the early 1870s, on the Stanthorpe tin mining fields, south west of Brisbane. Both were working as managers in the store of another Scotsman, John Moffat. These three men were destined for success and riches in Far North Queensland. ‘Willie’ Jack and John Newell were lured to North Queensland by reports of gold on the Palmer River, inland from Cooktown. But it was ‘black gold’ that was to prove their windfall. In 1880 they were part of a prospecting party that found a rich lode of tin near the Wilds River, about 100km over the Great Dividing Range from Cairns. Within weeks they had established the Great Northern

Mine, an operation that would make rich men of them both and underwrite the rapid development of their retail empire. Jack & Newell were so big in the Far North that they printed their own currency, which was reputedly accepted as legal tender by banks and

businesses. From boots to barbed wire; mosquito nets to marzipan; dynamite to doilies, you could buy it all at Jack & Newell’s. Barrel of anchovies? Complete cowhide? Fabric for a Jubilee ball gown? Check. In fact … the saying goes that

you could get everything from a needle to a haystack at Jack & Newell. So why is this appearing in ResortNews, what do these general merchants have to do with accommodation, and more specifically management rights?

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Call Sharon Flood, Director 0459 070 871 or 02 6674 5118 sharon.flood@floodlegal.com.au www.floodlegal.com.au March 2020 | ResortNews

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PROFILES

More than you think… The last Jack & Newell store closed its doors in 1982 in Chillagoe, and today there is little evidence of the retail empire that was once the backbone of many far northern towns. There is however, a picturesque apartment complex developed in 2003 by Hedley Homes, that continues to offer hospitality and service, while paying homage to the region’s forefathers. Rumoured to have been built on the same site as an original J&N trading store, the Jack & Newell Holiday Apartments are conveniently located right in the heart of Cairns’ CBD, offering super-spacious and well-appointed holiday living just a stone’s throw away from all the action. With sensational waterfront views and a heritage listed façade, this unique property is one of Cairns’ favourite home-away-from-home accommodation choices for visitors who want convenience, comfort and style while they explore the wonders of Cairns and the Great Barrier Reef. And presiding over this treasured nod to the past, are resident managers Jodie Lee and Michael Maguire. With just 14 months of ‘managing’ under their belts, the former accountant and distribution manager tell me openly that the last year and a half has been a roller coaster. “I had learnt of the industry while working for an accounting firm in Brisbane,” says Jodie. “We both found it an interesting concept and had been watching the market for a while, but when Michael was made redundant, it was the impetus for us to make the decision to take the leap and work for ourselves.”

So why the sea change? “We did a lot of research,” adds Jodie. “We looked at long-term complexes in Brisbane and a few mixed-use on the Sunshine Coast and gradually got a better idea of what would make a good investment. PCS Finance helped us to arrange our finances so that we could more easily identify what would work for us. “It took us a while. We got knocked back a few times but we were really serious about finding the right property.

PROFILES

ResortNews | March 2020

“When we first saw Jack & Newell it was under contract, and I was heartbroken. Then the real estate agent called me a couple of months later, the sale had fallen through and we were able to put in a bid. It was just meant to be. “We are very happy with the move to Cairns,” says Jodie. “The first year has been a tough one and it’s been hard to leave the property much, but when we do there is just so much around us; it’s wonderful living in a place where people come to holiday.” The Jack & Newell Holiday Apartments are classified as a mid-rise complex offering 42 fully- furnished, self-contained two- and three-bedroom apartments. The property also features a large swimming pool, a gymnasium and a barbecue and entertainment area. “Staying at Jack & Newell makes perfect sense while staying in Cairns and exploring Tropical North Queensland,” says Jodie. “The holiday apartments offer a great deal more space, complete privacy and better amenities and facilities than you’d get in a hotel. Large bedrooms, fully equipped kitchens where you will save money cooking your own meals, large living areas, laundry facilities and private, spacious patios provide a cosy home-away-from-home while you explore the hundreds of exciting things to do and see in Cairns and the region." Surrounded by two WorldHeritage listed natural wonders, the Great Barrier Reef and the ancient Daintree Rainforest, Cairns and Tropical North Queensland are known for having some of the world’s most spectacular natural beauty.

all the inner-city activities. It sounds like paradise – so why the roller coaster? “We’re thrilled that we took this step and got into management rights,” says Jodie, “but there have been challenges. It’s hard to get your head around everything that needs doing when you begin. There are so many things that need time and attention – software, accounting, legislation, contracts - and the business needs to not only keep going, but get better. “As first-time operators, we were flying blind. It’s been a huge learning curve and I would say to anyone considering getting into the industry; do your homework – and do it well. When you’re reviewing a potential property,

look at every unit. Be aware that you are taking on the condition of units as well, and that they may impact on bookings going forward. Have a look at the online property reviews – they will give you a good indication of the likely issues. “In addition to the property and financial aspects of the deal, have a really have a good look at what marketing has been done (and whether it worked or not), how old is the website – when last was it updated, and what technology exists? It takes a while before you understand how to settle on the right price point so learn about the OTA’s – be on the front foot before starting. “Where possible, also try to find out what development is happening in the immediate

vicinity,” says Jodie. “In the last year we’ve had a significant change in the market with the opening of the Crystalbrook Collection hotels in Cairns. While you may not be able to change anything, if you stay abreast of the changes you will be able to communicate about them honestly to your owners. “Another important pointer is to know that the committee is likely to be a little hesitant or even suspicious of new managers initially – especially in a property that needs a lot of attention. It takes a while to establish a relationship with the body corporate and committee but at the end of the day, if everyone is invested in the good of the property, you can achieve anything.”

One can’t run out of options for exploring the region, which is why most visitors spend at least a week in Cairns. And if you’re staying at Jack & Newell, you don’t have to go far to start your Great Barrier Reef adventure as the Cairns Reef Fleet Terminal is just a sevenminute walk away. Most tours can be booked the afternoon before and by booking through the dedicated tour desk, guests receive a five percent discount. The inner-city holiday apartments have every convenience one may need for a perfect, selfcatering holiday and are within an easy strolling distance to March 2020 | ResortNews

PROFILES

Beachfront Viscount:

A true metamorphosis

Amber Woodroff

By Trish Riley, Editor

The pristine, absolute beachfront mid-rise that I’m standing in front of makes a mockery of everything I already know about this property. Originally referred to as ‘the green building’ (complete with fading Astro turf on the roof), and suffering from all the ills that come from long-term direct seafront exposure – the Beachfront Viscount is now a vision in clean white set

among manicured gardens that fringe the golden beach. And once I meet resident manager Amber Woodroff, I understand why. Amber oozes the right blend of hospitality and decorum, and this is her home. Having held several roles, including that of international convention coordinator and having lived abroad for many years, Amber loves travelling, and travellers. She’s a self-confessed ‘hands-on’ person with a keen interest in tourism and renovating.

Her personable yet matterof-fact approach leaves me in no doubt as to who’s behind the transformation.

that she could intern with for a couple of weeks. She made a call and was soon doing two weeks work experience in Currumbin.

“I moved back to Australia on my own with an eight-year-old son,” says Amber. “I met a woman in Port Macquarie who had Management Rights, and after chatting she suggested that this would be a great role for me. I realised that it may offer the flexible lifestyle I was looking for as a single, work from home mum..

“I hadn’t realised how much of the resident manager’s role involves building maintenance, but leaning heavily on my background and pioneering spirit, I thought I can do this… it’ll be a new challenge.”

I was living in Red Head on the Mid North Coast at the time and came up to the Gold Coast for an event, in the back of my mind, I was toying with the concept of management rights, and all of a sudden the Gold Coast was something else – an opportunity.. Amber returned to Red Head, and in her usual indomitable way set about finding a property

PROFILES

And as often happens, Amber viewed several properties before doing a ‘spur of the moment’ drive-by of Beachfront Viscount, that she loved on sight. The fairytale take-over didn’t quite go according to plan however. Amber took ownership of the management rights just before Easter (why does this always seem to happen?), and walked right into the beginning phase of a total lift replacement. It wasn’t long before she realised the entire building required major repairs.

ResortNews | March 2020

“The property had not been maintained well,” says Amber. “There seemed to be problems everywhere I looked – it even used to rain inside the building! Every foyer needed work, we had to replace tiles throughout, strip and repair the roof top, replace the roof, address the concrete spalling and do a complete repaint. And because there had been no provision made for these expenses, we had to introduce special levies. “The scope of work was so far removed from my ‘experience’, I had no idea how I would be able to project manage all the quotes, trades, compliance requirements and so on. Fortunately however, I attended an ARAMA event and heard about Programmed Property Services. They came on board as project managers and oversaw the entire project. “I didn’t leave the property for the first 12 months,” adds Amber. “The lift replacement took almost a year, and then we backed that up with the total building refurbishment. It was a long slow process, and I could never have imagined the impact and loss of income that would occur from building maintenance.” Now – 3 years on the major work is done. The refurbishment of Beachfront Viscount has become a labour of love for Amber, and she’s not ashamed to say that she treats the entire property as her home, and every visitor and guest as a friend or relative… “I have high expectations, and like being able to share them with others,” adds Amber. “The best aspect of management rights are the guests; I speak personally to each and every one of them before they come and stay, and I’m here to help when they arrive. I want everyone to enjoy the property as much as I do.” March 2020 | ResortNews

And what’s not to love? Ideally located between Surfers Paradise and Broadbeach, Beachfront Viscount is a haven of fun and relaxation, just moments from the glittering Pacific Ocean. All of the apartments feature a full-size living area, fully equipped kitchen including dishwasher and microwave oven, large balconies with 180-degree ocean and beach views to sit and enjoy the sights and sounds of the beach at your doorstep, a separate fully equipped laundry with own facilities, main and ensuite bathrooms, walk-in wardrobes in the main bedroom and ample closet space, air conditioning and fans, free wifi and television with free cable TV.

Guest Review of 8.9 and Travel Review of 9.1 already for 2020.

business and you just have to face the tough days head on.

The fait accompli of the boutique resort’s transformation will be her new name. Unofficially (and rather cruelly) nicknamed the green building, the property started life as Viscount Towers, and then became Beachfront Viscount. It is now being rebranded as Viscount on the Beach – this butterfly has come of age.

“At this stage of life, I believe my business needs to suit my lifestyle. I love waking here every day and I’m happy to spend my day running around ensuring that I’m making others happy. If people and hospitality is your thing, then you will love it.

“Management rights is a wonderful industry,” says Amber. “Just be aware, as with any business in any sector, that the first couple of years are hard. There is good and bad in every

Ideal for families, individuals, groups or conference attendees wanting centrally located quality apartment accommodation, the beachside resort also offers great year-round facilities including a heated outdoor pool that is sure to become a favourite place to unwind during the day, or one can partake in a sauna or long, reviving soak in the heated rooftop resort-style spa. There are also two barbecue facilities and sundecks that are perfect for friends and family to enjoy an alfresco meal while taking in the stunning 360-degree views over the coast. “We have a lot of return guests,” says Amber. “The majority of whom are Australian; inland Queensland and Brisbane during the summer months and then older guests from Southern states during school holidays and the winter months.” Whatever it is that Amber is doing, the online reviews are very positive. Beachfront Viscount was a winner in the Booking. com Guest Review Awards in 2018, and has achieved a PROFILES

“Management rights is a privilege, especially when you’re situated in a holiday destination like the Gold Coast – it’s like having a dozen or so spare rooms, and having people pop in regularly to stay and visit.”

TheManagement Rights Lawyers BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

DISPUTE RESOLUTION

Mahoneys are proud to be trusted advisors to Amber Woodroff and the team at Beachfront Viscount.

www.mahoneys.com.au 53

ABSEILING SERVICES Specialist Advisers to the Accommodation & Hospitality Industry

Chartered Accountants & Business Advisors Specialist Advisors to the Accommodation Industry

T: 07 5449 9992

info@pbbconsult.com.au | www.pbbconsult.com.au

Accounting – Audits – Taxation Due Diligence Reports

- GOLD COAST -

07 5631 6900

erika thomas & associates MANAGEMENT ACCOUNTANTS

info@hostrata.com.au www.hostrata.com.au

management rights income verifica�on management rights trust account audi�ng prepara�on of bank review/re-finance figures

Specialist Business Advisors to the Management and Letting Industry • Due Diligence Reports • Trust Account Audits • Structure Advice & Tax Compliance

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phone 07 5575 9649 | mobile 0411 841 868 erikathomas@bigpond.com www.managementrightsauditor.com.au

- SUNSHINE COAST -

Brisbane Level 4, 97 Creek St, Brisbane Gold Coast Level 3, Southport Central 3, 9 Lawson St, Southport

“YOUR GUIDING LIGHT ON MANAGEMENT RIGHTS”

Smiljan Jankovic 0423 595 910 SmiljanJ@archergowland.com.au

www.archergowland.com.au

Specialist Accountants & Business Advisors to the Accommodation Industry

Your Sunshine Coast

Management Rights Specialists FOR OVER 20 YEARS

Verification Reports - Due Diligences Tax Planning & Structures For Sale Figures - Auditing Tax & Accounting

• Management Rights • Motels Including: Business Plans Verification Reports P & L for Sale Trust Account Audits Industry Specific Bookkeeping

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FIRST INTERVIEW FREE! Greg Kamp FCPA FTI

07 5443 7789

“Holbrook House” 48-50 Sugar Road Maroochydore

info@kampba.com.au

www.kampba.com.au

Paul Shannon Management Rights Specialist

07 5538 0999

All engagements are fixed price

info@crestaccountants.com.au

www.crestaccountants.com.au

Brisbane:

07 3421 3421

shodgetts@mcadamsiemon.com.au Rmcadam@mcadamsiemon.com.au (Motels)

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Eagle_Dad_Print.pdf 1 31/03/ E: renee@rcbaccounting.com.au W: rcbaccounting.com.au

- NORTH QUEENSLAND -

Noosa Heads:

07 5474 8955

Specialist Management Rights Accountants M

porielley@mcadamsiemon.com.au

Contact : PETER MEYERS

155 Varsity Pde, Varsity Lakes, Qld 4227 t : (07) 5630 6559 m : 0402 943 549 CM e : peter@pmag.com.au

accountants

www.mcadamsiemon.com.au

Look for the sign of an Industry Specialist

www.pmag.com.au

CMY

Experienced Management Rights Accountants • P&L for Sale • Bank Financials • All Tax Compliance • Purchaser Due Diligence

Structuring  Income Verification  Audit Accounting/Taxation  SMSF  Estate Planning Email: jhanaghan@jonathangrant.com.au

Phone 07 5534 4333

Fixed Price Available

(07) 5343 1000

When your Business Needs a Tune or a Service

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managementrights@ascendia.com.au

www.ascendia.com.au

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Ask for David at the Mooloolaba Oﬃce or Ask for Angela at the Noosa Oﬃce

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www.businessmechanic.com.au (02) 6583 8386

PREFERRED SUPPLIER DIRECTORY

ResortNews | March 2020

BEDS & BEDDING

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Call 07 5522 1044

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1800 425 903

sleepmakercommercial.com.au

enquiries@climatecontrol.net.au

www.climatecontrol.net.au

1300 88 53 70 service@ciwremedial.com.au

CARPET & FURNITURE CLEANING/PROTECTION

STARTS WITH

A GOOD N I G H T 'S R E S T

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March 2020 | ResortNews

PREFERRED SUPPLIER DIRECTORY

Look for the sign of an Industry Specialist Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

ELECTRICAL APPLIANCES

FINANCE

Quality Electrical Appliances Management Rights Specialists

New name... Bigger range... with the same great

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

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

ELECTRICAL CONTRACTORS

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SEE THE SPECIALISTS IN L.E.D. REPLACEMENT LIGHTING

Gold Coast Paul Geary

0401 992 632

Brisbane Lina Jin Blake McLucas

0422 646 388 0434 367 812

Sunshine Coast / Noosa Mark Hancock

0411 023 531

Brisbane: 07 3252 2219 • Gold Coast: 07 5576 7059 enquiries@pcsfinance.com.au

www.pcsfinance.com.au

FURNITURE

Sunshine Coast / Lake Kawana Bruce Baird 0411 772 182 Suzanne Copelin 0428 385 923 Townsville Brett Sievers

0422 009 731

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0401 141 276

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(07) 5591 9191 QLD LIC. 9107 NSW LIC. EC29426

Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number 234527. ANZ’s colour blue is a trade mark of ANZ. Item No. 75143 06.2013 W349544

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ACL (364 314)

Suppliers of Quality Commercial Outdoor Furniture & Accessories

are attended to within 20 mins

1800 671 179

www.reimaster.com.au * Contact us for the T&C’s

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• • • • •

Bill Presentment Debt Collection Tariff Review Meter Provider Payments

• • • • •

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

d an d o io ad m er lo de ial p wn tr do a vi

Holiday Resident

Year 1 $990

Year 2+ $440

Puma Light No trust accounting

0448 813 090

Cameron Wicking

0477 776 859

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

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Phone (07) 5446 2135

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Red

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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

Motels, caravan parks etc. from $220 to $330 p.a.

www.accomnews.com.au/ business-directory

0418 765 257

mike@mikephippsfinance.com.au

Daily Reconciliation – Systematic Distribution Year 2+ $599

fresh finance... Mike Phipps

Reservations and Trust Accounting Year 1 $1,100

• 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

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

PREFERRED SUPPLIER DIRECTORY

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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

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Look for the sign of an Industry Specialist Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

ResortNews | March 2020

Australia wide service supplying all types of furniture

INSURANCE

In All Areas...

info@kudosfurniture.com.au

Whether buying or selling we have you covered

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1300 665 966

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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

March 2020 | 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.”

Calvin Bailey LREA

0414 889 593 calvin@cbmr.com.au

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

CALVINBAILEYMANAGEMENTRIGHTS.COM.AU

info@propertybridge.com.au propertybridge.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) Nationwide: 07 3554 0040 Email: sales@rcabb.com.au

1800 888 518

www.rcabusinessbrokers.com.au

PREFERRED SUPPLIER DIRECTORY

The Management Rights Specialists

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

• Painting • Grounds Maintenance & Landscaping

ASBESTOS REMOVAL QUEENSLAND WIDE

FREE CALL

1800 766 366

• Electrical Services

Matt Campbell 0410 343 219 Barry Davies 0438 554 995

• Audio Visual

www.managementrights.com

• Sustainability

contact@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

• Data Communications

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

info@hirisemaintenance.com.au 07 5539 0828 www.hirisemaintenance.com.au

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Call 1800 620 911 or 07 3718 1600

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programmed.com.au

PEST-NETT SERVICES Find them online Wherever, Whenever!

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www.accomnews.com.au/business-directory

PO Box 1037 Gordonvale 4865 • P 07 4056 6366

info@resortsales.com • www.resortsales.com

SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS

1800 111 622 WWW.STRATACORP.COM

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Professional Pest Control Services Specialising in commercial and residential pest management

Ph 5520 1256

QBCC Lic No 1050861 NSW Lic No 179886C

1300 638 938

Wayne & Linda Stoll 0452 181 505

wayne@thinkmanagementrights.com.au

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

M 0456 565 148 W targetpest.net.au

www.anppainting.com.au Think Management Rights

SOLICITORS

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

Supporting and servicing the needs of both buyers and sellers of management rights throughout Tropical North Queensland

SIGNS

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

SHEET METAL

Narelle Filmer 0459 229 744

narelle@thinkmanagementrights.com.au

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

www.thinkmanagementrights.com.au

PAINTERS & DECORATORS

Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work Ph 07 5593 4183 Fx 07 5593 4194 | M 0413 432 294 adrian@sheetmetalimprovements.com.au

COOLANGATTA TO BEENLEIGH

Experienced Management Rights Lawyers • Purchase or Sale

Whatever, Wherever, Whenever!

Fixed Price Available

(07) 5343 1000 Ask for Natalie

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

www.accomnews.com.au/ business-directory

PREFERRED SUPPLIER DIRECTORY

managementrights@ascendia.com.au

www.ascendialawyers.com.au

ResortNews | March 2020

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

Call John Punch on 5570 9322

CERVETTO COURTICE

TRAINING & DEVELOPMENT

Classes from Coolangatta to Cairns TRAINED BY THE EXPERTS

L AW Y E R S

Q U E E N S L A N D

Management Rights Sales & Purchases Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: cervetto@gil.com.au BRISBANE: 07 3007 3777 GOLD COAST: 07 5562 2959

Management Rights, Body Corporate and Property Law Specialists

info@mahoneys.com.au Buying or Selling Renewing or Reviewing Negotiation & Dispute Resolution We are recognised experts in our field, always outcomes focused and offer flexible fee options. Michael Kleinschmidt, Legal Practitioner Director PH: 07 5406 1280 info@stratumlegal.com.au

Buying & Selling

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10/1 Lanyana Way, Noosa Heads T 07 5474 5777 E info@siemonslawyers.com.au siemonslawyers.com.au

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1800 080 349 www.propertytraining.edu.au

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 Get it right the first time…call

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New name... Bigger range... RELAX… AND LET US TAKE CARE OF ALL YOUR POOL NEEDS.

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

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WWW.POOLGEARAUSTRALIA.COM.AU

MANAGEMENT RIGHTS VALUATION SPECIALISTS 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

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Whatever, Wherever, Whenever! www.accomnews.com.au/ business-directory March 2020 | ResortNews

PREFERRED SUPPLIER DIRECTORY

PROPERTY MANAGEMENT REI Cloud property management software is an integrated trust accounting package designed for the real estate and management rights industries.

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