Resort News - April 2020

Registered by Australia Post Print Post No. 100023799

Issue 284 | April 2020 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

Waterford on Main Beach:

A shining example

www.accomnews.com.au

Special Report:

Accomproperties: Tailored for the industry

management rights • hotels • motels • resorts • holiday parks • time share • hosted We specialise in furniture for hotels, motels, serviced apartments, resorts and refurbishments.

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MDIA

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 April issue FRONT DESK

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.

Editor's Note: How are you coping?................................. 05 INDUSTRY

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News in Brief……........................................................................ 06 ARAMA Report......................................................................... 09 State Report...............................................................................10 BCCM Report.............................................................................12 SCA Report.................................................................................12 Special Report – AccomProperties: Tailored for the industry.........................................................14 Person of Interest – Rusty Lush: An accidental entrepreneur.................................................16 MANAGEMENT Legal Ease……..............................................................................18

By All Accounts........................................................................ 20

16

Q&A – Removing and replacing committee members..............................................................21 Thinking MR............................................................................... 22 Motel Market............................................................................. 22 Intonet..........................................................................................24 Housekeeping .......................................................................... 25 Good Governance................................................................... 26 Guest Experience.................................................................... 30

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

Power Surges............................................................................ 32

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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!

04

The Last Resort........................................................................ 38 39

Development News……........................................................... 40 PROPERTY AccomProperties Sales Report…….................................... 42

KEY

Suppliers share their views in one-off, topical pieces

Tourism International.............................................................37

DEVELOPMENTS:

CONTRIBUTORS Andrew Morgan, Arvo Elias, Col Myers, Jane Wilson, Kaitlyn Meehan, Kline Horney Kirsch, James Nickless, John Punch, Lel Parnis, Lynda Kypriadakis, Mike Phipps and Trevor Rawnsley.

Supplier information or content

Tourism Report…….................................................................... 35

EVENTS & APPOINTMENTS

SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au

Commercially funded supplier profile or supplier case study

TOURISM

38 FRONT DESK

PROFILES Waterford on Main Beach: A shining example……....... 46 PREFERRED SUPPLIERS The Preferred Supplier Directory...................................... 50 ResortNews | April 2020

EDITOR'S NOTE ©WoGi - stock.adobe.com

How are you coping?

As I speak with managers, friends and members of the community I get a range of answers.

Several have asked me the same.

Some are in shock – they just can’t comprehend the enormity of what is happening.

“I’m not sure what to think or believe” is another – a toggling between optimism and pessimism.

They’re worried about their jobs, they’re concerned about their cash flow, they don’t see how they (or we) are going to get through all this.

I find myself in the former, but then I don’t own a management rights or accom business and I am not personally experiencing the cancellations and minimal occupancies that so many are. I go from seeing optimistic signs of progress in the morning to feeling like we’re doomed by dinner, and repeating the cycle the next day. Sometimes the shifts occur minutes apart. Overall, I’m still confident we’ll get through this.

But occasionally I recalibrate what “this” means, and it’s exhausting.

Some find their mood swinging from optimism to pessimism and then back again – they’re having good days and bad days.

And then interestingly some of those that I’m speaking with are optimistic about the future and see this as a chance to take advantage of the opportunities that will arise.

They recognise the health threat posed by COVID-19 , but most believe the economic slump will be over quickly and they are scouting around to see how they can do things differently.

They believe that this too shall pass and we will prevail as we have done through all the other crises we have seen before.

These positive people recognise that: •

Residential real estate is Australia’s biggest asset class

•

The outstanding mortgage debt against Australian properties is $1.82 trillion in other words the total loan to value ratio of Australian real

April 2020 | ResortNews

Two answers are common.

“Devastated,” or something similar is one.

Trish Riley, Editor editor@accomnews.com.au estate is less than 30 percent •

Around 30 percent of all homes in Australia have no debt against them.

•

Around one third of all properties are owned by property investors.

•

The balance of properties in Australia have a level of debt against them, some being first home buyers or investors who may have highly geared themselves, but others are established homeowners with significant equity in their homes or investment loans secured by their principal place of residence.

So how are you holding up to the corona virus crisis?

This may be the most common question being asked around the world these days.

I’ve posed it to dozens of people.

When emotions swing from one side to the other it can be tempting to not trust either. And the reason we have conflicting emotions is because two opposite things can be true at the same time.

We might be overreacting in some ways and underreacting in others. Both can be true.

Given the incentives of early denial and later fear it seems inevitable that we’ll underestimate both risk and recovery.

Good and bad news can coexist.

Progress isn’t like flipping a switch.

Someone who points out progress who is rebutted by someone pointing out setbacks might not be arguing – they’re just choosing to look at different parts of the world.

FRONT DESK

It’s okay to be terrified about the short run and optimistic about the long run. Those aren’t mutually exclusive. But it can feel like they are, especially when expressing optimism publicly makes you look oblivious to today’s reality.

It’s okay to be both confident about your decisions and humble about how little we know.

“Strong opinions, weakly held” is probably the best philosophy when the stakes are high and the uncertainty is vast.

It’s okay to want to stay informed while also wanting to tune everything out. Information can be vital and overwhelming at the same time. I find myself switching between outbreak statistics and wanting to watch YouTube videos.

It’s okay to have been dead wrong about something you believed days, even hours, ago.

Don’t beat yourself up, and try to empathise with others. We’re all figuring this out as we go.

You can want to “secure your own mask before assisting others” while desperately wanting to help others. Both are natural, and it can be so hard to find the balance in a given moment.

It’s okay to have a plan while acknowledging you have no idea what the world will look like tomorrow. There’s a healthy zone between “prophet” and “fatalist.”

Ultimately, it’s okay to just do the best you can, day by day.

Stay safe everyone, please enjoy this issue.

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Airbnb steps in to house first responders in COVID-19 crisis

©Halfpoint - stock.adobe.com

Airbnb has announced a new global initiative where hosts can provide housing to 100,000 COVID-19 responders.

Could traditional accom providers do something similar?

The plan is to “provide free or subsidised housing for healthcare professionals, relief workers, and first responders, typically closer to where they are working”.

Partnering with international non-profit organisations Airbnb said it plans to help support relief workers on the front lines and connect workers with safe and convenient places to stay while they respond to the pandemic.

“Medical workers and first responders are providing lifesaving support during the coronavirus outbreak and we

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want to help,” says Airbnb’s co-founder Joe Gebbia.

All accommodation offered will follow new cleanliness protocols based on recommendations from medical experts.

Dr. Larry Brilliant said: “While science is still developing around COVID-19, and there is a lot we do not know, we have provided guidance to support the Airbnb

community participating in immediate efforts with governments and institutions.

As medical and relief workers require accommodation for response and preparedness, the Airbnb community is in a unique position to help. I applaud Airbnb for working under conditions of such uncertainty to provide housing for first responders and medical staff working in this

INDUSTRY

pandemic. We are working to provide clear communication and resources, based on rapidly evolving knowledge about this novel virus and best practices on sanitation, in order to help keep communities as safe as possible.”

Safe hosting recommendations include: “listing entire homes and agreeing to a number of safety requirements including enhanced cleaning, social distancing with their guests, and allowing 72 hours between stays.

Airbnb’s partners or affiliates will ensure that stays are COVID-19 related and responders are familiar with safety protocols”.

Airbnb has also launched a donation tool to help power even more stays for relief workers while they do their critical work.

100 Percent of proceeds will go directly to non-profits helping with COVID-19 relief efforts.

Source: 7News

ResortNews | April 2020

COVID-19 devastates short term rental

Australian Short Term Rental Accomodation (ASTRA) who represent short term rental members have implored the Government to help them in the wake of the COVID-19 crisis. Travel bans, self-isolation and social distancing have caused an overnight mass cancellation of short-term bookings, leaving many owners without any income at all.

ASTRA states: “Landlords are Australian mum and dads and small business owners that are too small to get the benefits for Payroll Tax, PAYE or BAS related support. These everyday Australians rely solely on the income to stay afloat, for many, rental is a primary source of their income”.

© shintartanya - stock.adobe.com

Panicked owners of short-term rental accommodation plead: ‘What about us? We need help, help us now!’

ASTRA industry chairman Rob Jeffress questioned: "Whilst Governments are actively reviewing specific relief packages to afford struggling tenants rent and are looking into the situation for landlords who may not meet mortgage requirements. There have been no talks on assistance for owners of short term rental accommodation properties who have been forced to allow

booking cancellations and comply with the ever increasing "non-essential travel" edict."

The Commonwealth and National Cabinet controls to stem the spread of the virus are welcomed by ASTRA but it also has grave concerns for its members who have been “substantial financial contributors to the Australian economy and rely on rents

to stay afloat”. Unlike other landlords those who offer short term rental will not have the reassurance of delayed rent.

The Neighbours Not Strangers campaign, who is opposed to short term letting in neighbourhood housing suggests to ASTRA members: “Put your homes on the rental market – tenants need housing.”

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April 2020 | ResortNews

hotelinteriors.com.au • 1300 876 055 INDUSTRY

07

REIA said Prime Minister is ignoring agent in tenancy agreement

Up to 300,000 hospitality jobs set to be lost across Australia

The grim forecast was tweeted

by Nine News political editor Chris Uhlmann, saying these were the figures reported to the Australian Government.

However, federal minister for government services, Stuart Robert was even more pessimistic, saying “maybe a million” people were left unemployed following the shutdown of many sectors of the economy.

The mass job losses stem from the nationwide shutdown to the public of gyms, indoor sporting venues, cinemas, entertainment venues, casinos, pubs, clubs, hotels and other venues.

The effect on Australia’s unemployment rate is likely to

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see it rise significantly from its February level of 5.1 percent.

Disappointment in the simplistic approach by the Prime Minister in regards to landlords and tenants was the message from the REIA president, Adrian Kelly.

Mr Kelly said the important point was to address the support of agents so that what the Prime Minister wants, in terms of landlords and tenants - finding a solution to get through the crisis, can be achieved.

“Banks have already indicated that they are offering customers the option to defer home loan repayments for up to six months."

“Real estate agents will work very hard to facilitate the role between landlord and tenant, and to do this they need income," said Mr Kelly.

“Real estate agents are the middle persons who facilitate the agreement between landlords and tenants and manage it as well as the property," said Mr Kelly.

“I note that National Cabinet is still to consider details.

Hopefully these will come so that the Prime Minister’s objectives can be met.”

“There are some 70,000 property

Source: Real Estate Conversation

Property council welcomes hibernation plan

The Australian Hotels Association (AHA) said the ban on licensed premises was an “unprecedented move in our peace-time history”.

The Property Council has welcomed the commitment of the Commonwealth, state and territory governments to develop a package of measures to help Australian businesses get through the current economic crisis caused by the coronavirus outbreak.

AHA Chief Executive, Stephen Ferguson stated "there’s no doubt this move is already having a devastating impact on our direct national workforce of 250,000 and our millions of patrons."

Currently the Federal Government has increased Jobseeker support and is fast tracking new applicants for those that have been left jobless by the ban.

Australian Hotels Association WA chief executive Bradley Woods said the federal government had turned down the offer by industry to pay staff welfare payments through the businesses they worked for. The Federal Government has opted to rely on Centrelink as the best option to support people in need.

Source: AusLeisure

managers, principals, real estate agents and representatives across Australia. Tenants don’t negotiate with landlords.

While prepared to support the Government and its efforts Mr Kelly said ignoring the real estate agent in the tenancy agreement raised more questions than it answered.

©Paolese - stock.adobe.com

Nearly 90,000 hospitality employees have lost their jobs recently with another 200,000 more set to be laid off over the next three months as a result of the coronavirus crisis.

The Prime Minister wants tenants and landlords to talk and agree, but the REIA says the main component of that relationship is the real estate agent and they need an income.

“The Prime Minister’s proposal for a 'business hibernation’ package recognises the critical importance of helping as many Australian businesses make it through this extremely challenging period,” said Ken Morrison, Chief Executive of the Property Council.

“The PM is absolutely right to highlight the shared interest we all have in keeping businesses and their employees connected and ready for recovery, ranging from our smallest corner store through to our largest corporate firm. Businesses across tourism,

INDUSTRY

retail, business services and logistics will be facing enormous challenges during this time and we need all of them to come through the other side of this crisis,” Mr Morrison said.

Mr Morrison said the Property Council is engaging closely with the Commonwealth, state and territory governments on the detail of the package to be announced in coming days. “It was pleasing to hear the Prime Minister acknowledged that land tax relief was one lever being considered to support businesses across the economy.

“Our members are committed to being part of the combined effort to support Australian business during this extraordinarily challenging period. We’re all in this together and we all have a role to play, across all levels of government, and all sectors of business,” Mr Morrison said.

Source: PCA

ResortNews | April 2020

To say that accommodation providers have been impacted significantly over the past month would be an understatement.

Those reliant on holidaymakers have seen tourism come to a grinding halt – forcing them to make changes they never envisaged for 2020.

A new set of challenges have also emerged concerning the safety, health and wellbeing of residents in high-density environments amid the outbreak of a pandemic.

If one positive can come out of it, it has highlighted the importance of a management rights operator’s role in community title schemes during a time of uncertainty.

If I could use alliteration, the pandemic has simply added an extra “p” to the problems a resident manager encounters on a daily basis relating to pets, parties, parking and passive smoking.

However, their experience working with stakeholders to effectively navigate these sensitive issues over many years has readied resident managers for these truly extraordinary times.

Unlike most other professions, a resident manager can’t totally remove themselves from their work or clients in this environment – instead their role is thrown into the spotlight within their scheme.

They are the go-to person to find solutions to hurdles that appear, and they act as the main interface between guests, tenants, lot owners and April 2020 | ResortNews

it is not a resident manager’s responsibility to make decisions unilaterally. Instead it is about working collaboratively with body corporate committees to identify the most common-sense, practical and safe course of action to challenges or questions.

The business of management rights is underpinned by effective working relationships - and there is no time more important than now to invest in these relationships.

Trevor Rawnsley, CEO, ARAMA

body corporate committees as the most effective person in managing both individual and collective interests.

We all know that one of the best ways to do this is through clear communication – and

at ARAMA we are exploring ways to maximise the use of digital platforms so that we may continue to deliver our support services and training.

We encourage all of our members to continue to monitor and act on official health advice – and as you always do, ensure the best practical application of this advice to your individual businesses and communities.

These are challenging times, but we will emerge from them together and continue to play a major role in Australia’s tourism and accommodation sectors.

This unprecedented and extraordinary event is yet another opportunity for management rights operators to shine, demonstrating their unique value in the community in which they live and work.

Each week, ARAMA, the peak body for management rights hosts a special interactive webinar in response to the COVID-19 pandemic featuring a variety of management rights specialist industry experts.

These digital discussions offer operators the chance to raise the challenges they are facing as they go about their business.

With hundreds of members participating, questions have varied but one piece of recent advice remains consistent.

Nothing in strata laws deals with pandemics – it’s unprecedented, and a resident manager’s ability to make rational and logical decisions is of critical importance at this time.

If something is not clear in body corporate law, operators must refer back to process and common-sense (and document everything they do).

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)

It has also been emphasised that INDUSTRY

09

ARAMA REPORT

©REDPIXEL - stock.adobe.com

Resident managers, it’s time to shine

STATE REPORT

Defamation – when is enough, enough?

As we all know, living or working in strata can get very personal. I am often amazed at what people say about others and their lack of concern about being sued for defamation. It is one thing to say it one-on-one; it is a completely different thing to say it in front of third parties or even sillier, putting it in writing.

Resident building managers have often been the target of defamatory statements from committee members or owners.

Obviously, you don’t want to be running off to your lawyer every time someone makes a statement about you that you don’t like.

Col Myers, Small Myers Hughes

However, if you are the subject of a sustained barrage of lies from someone who clearly has an agenda to defame and hurt you, you may be left with no choice other than to advise that person that you propose to commence defamation proceedings and, if necessary, move to the next stage of issuing a Concerns Notice.

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

©missizio01 - stock.adobe.com

The key is to work out when enough is enough.

defamation or publish an apology.

After that, it is off to court!

So what is defamation?

Who is liable?

Defamation occurs when one person communicates (generally by word, internet, video or photographs) material which has the effect or tendency to damage the reputation of another, and the communication must be published or communicated to a third party. All States now have uniform defamation laws.

Generally, anyone who publishes or who authorises the publication of the defamatory statement.

Proving the defamation is the key to the action. Damages will be determined by the judge based on the facts of each case.

Words or materials are generally defamatory if they: are likely to injure the reputation of a person by exposing that person to hurt, contempt or ridicule; are likely to injure the reputation of a person by exposing that person to hurt, contempt or ridicule; Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business?

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have a tendency to lower that person in the estimation of others.

How to commence an action for defamation Any proceedings must be commenced within one year from the date of publication of the defamatory statement.

Any individual person can sue, as well as a company employing less than 10 people.

Prior to commencing proceedings, it is recommended to first issue a “Concerns Notice” which identifies the defamation being complained of and gives the other party an opportunity to rectify the INDUSTRY INDUSTRY

Defences to defamation There are a number of defences to defamation, however, “justification”, is the big one.

This is also commonly known as the defence of “truth”. Under the Act, truth is now a complete defence and there is no longer a requirement of public interest.

However, the onus of proof falls on the publisher of the defamatory statement. That person must prove that the alleged defamatory statements were substantially true.

Criminal defamation Criminal defamation is much more difficult to prove and also much more serious. It is a matter where the allegations being made are so serious and the harm done to the reputation of the person is so wrongful and so malicious that it is a matter prosecuted by the police.

Liability limited by a scheme approved under Professional Standards Legislation Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

ResortNews | April 2020

OVER 1200

LISTINGS FROM ALL THE LEADING BROKERS ON THE ONE WEBSITE

“A website for buyers/sellers such as Accom Properties has been well overdue for years.

Buyers don’t want to view multiple websites to see whats for sale in a particular region or town, they want all properties on the market with relevant criteria at their fingertips now and you’ve been able to provide a platform which is fantastic. Well done.”

– Brett Salter, National Accommodation Manager, ALH Group Limited

www.accomproperties.com.au

BCCM REPORT

Bodies corporate insurance obligations It’s fairly common knowledge within this industry that obtaining the required type and amount of body corporate insurance can be a challenge for some bodies corporate, particularly in North Queensland, where cyclones and other severe weather events are having a major impact on both cost and availability of cover. Essentially, a body corporate must insure each building in which is located a lot included in the scheme, for full replacement value.

Where a body corporate cannot comply with this requirement, body corporate legislation provides that I may authorise a form of what is called “alternative” insurance. The relevant provision is section 179(4) of the Body Corporate and Community Management (Standard Module) Regulation 2008 (Standard Module) and there are equivalent provisions in the other Regulation Modules for this.

So what, exactly, might

Jane Wilson

Acting Commissioner, Body Corporate & Community Management

“alternative” insurance look like?

This section of the Regulation Module provides that upon application, I may authorise the body corporate to put in place alternative insurance if I am satisfied that what is being proposed gives cover that is as close as practicable to the cover given by insurance. The section goes on to give an example of alternative insurance as “giving cover up to an agreed value”.

While an example in legislation is not necessarily binding, it does nonetheless give guidance on what the section of legislation is intending will occur.

To further answer the question of what alternative insurance is, I will use the example of a recent

alternative insurance approval.

In fact, it’s the first application for alternative insurance that I’ve approved – and one of the very few I’ve received - since being appointed Commissioner.

•

Written advice from its insurance broker about the situation, including potential consequences of no cover and also of the proposed alternative insurance; and

The scheme in question is located in Far North Queensland. As we all know, this region is at risk to severe weather events such as cyclones. This, combined with other factors, made obtaining required insurance cover for this scheme extremely difficult and the best efforts of the body corporate, via its body corporate manager and insurance brokers, had resulted in a situation where a combination of insurers had been able to offer cover less than full replacement value. This combined cover amounted to approximately 70 percent of the valuation of the scheme building. In other words, the body corporate had sourced approximately 70 percent of full replacement value.

•

A copy of the vote outside of committee meeting which authorised the lodgement of the application.

Importantly, the body corporate was able to provide evidence to support its application, including: •

A copy of the building valuation;

•

A written statement, outlining the efforts they had made to source cover;

It was on the basis of the above and having regard for the particular circumstances of the scheme that I was able to authorise the alternative insurance under s179(4) of the Standard Module.

Another way of looking at my decision is to distil it to two options: no cover at all, versus at least some cover to an amount that doesn’t leave the body corporate which minimises the risk to the body corporate as much as possible. When put in those terms it becomes easier to understand the decision-making process not just for this instance but for other bodies corporate in similar circumstances.

Importantly, “alternative” insurance should not be read as “no” insurance. The Standard and other Modules make clear that I am being asked to

SCA REPORT

Social distancing in strata The impact of COVID-19 is being felt throughout the world, with governments closing borders, encouraging remote working, and requesting/ enforcing isolation for those showing symptoms or returning from overseas and across state borders. It is a time of great uncertainty and one that requires patience and understanding from everyone, but especially from those living within the strata community.

changing very quickly) is that anyone showing symptoms or that has had contact with a confirmed case of COVID-19 should “self-isolate” for 14 days.

Can you use the pool? Can you use the lifts? Can you use the rooftop garden? These are likely to be sections of common property which all owners and occupiers have a joint right to use. How can a body corporate stop a resident from using an amenity on common property?

Where a body corporate can or must close a communal facility like a gym or pool, who will be tasked with enforcing this.

Current health guidelines (at the time of writing, and guidance is

Self-isolation in a detached house means you can still

Legally speaking, this is very murky ground with bodies

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wander to all corners of your property, use your backyard, and splash about in the pool (if you are fortunate enough to have one). However, selfisolation in an apartment means something very different.

James Nickless, President, SCA, Qld

INDUSTRY

corporate and their committees having a statutory obligation to act 'reasonably', and also being required to adhere to any federal, state and local government directives.

SCA has prepared a “Best Practice Guide” for dealing with COVID -19 issues in strata and it can be found on our website.

On the legislative front, the new property law reforms are yet to be finalised, which means electronic voting remains legally unavailable in most cases. At our recent conference, we discussed COVID-19's impact on body corporate decisionmaking as well as the potential risks for body corporate management firms, and we have liaised with the Office of ResortNews | April 2020

Remember also that the provision about alternative insurance makes clear that I am only to approve it where a body corporate “cannot comply” with its insurance obligations.

It is unlikely to be the case that an insurance premium which is very expensive and which has dramatically increased in a short period of time could be argued as being a situation where a body corporate could not comply with its insurance obligations – clearly, it can, if cover is being offered.

With all of this in mind, if you are part of or involved with a body corporate and you’re finding obtaining the required insurance cover to be challenging, verging on the impossible, firstly please consider the Practice Direction (no. 28) about alternative insurance, details of which you can get from our office. The Practice Direction sets out what would be required, including the fact that while alternative insurance isn’t an order of an adjudicator, it still needs to be made on our Form 15, Application for Adjudication, along with the prescribed fee for adjudication.

My Office may look at reviewing

The Commissioner for Body Corporate and Community Management requesting further guidance about how meetings and legislative requirements should be completed.

©Gaj Rudolf - stock.adobe.com

consider an alternative to and not an exemption from insurance altogether. There is no provision in the Regulation Modules or other legislation to completely waive a body corporate’s legislative requirements in relation to insurance.

this Practice Direction, in light of the decision I describe above, to ensure the Practice Direction remains current, so please stay tuned for more details on that if and when it happens.

From a very practical perspective, try to not leave any such application until the last minute, as my office may not be able to guarantee, for example, a same-day turnaround.

Be sure that you can evidence all attempts at sourcing cover.

This might be copies of emails between the body corporate, its body corporate manager and an insurance broker or even direct with insurance companies.

Bear in mind that if I need to be satisfied I may request further information or ask the body corporate to demonstrate why it has not, for example, made further enquiries or undertaken further negotiations with an insurer or broker.

for the scheme is a critical issue with implications for all owners (and occupiers), so any suggestion that cover is going to be altered will have an impact.

While in the case I mention above it was a committee decision to lodge the application, consideration should be given to how the application (and then its outcome) would be communicated to everyone.

The body corporate reviews its insurance policy at the annual general meeting, so it might be a good idea for the committee to consider an explanatory note about alternative insurance at that forum too. If an alternative insurance approval is given, remember that this would form part of the body corporate’s records, which is available to not only all current owners and occupiers but also prospective purchasers and occupiers.

Given the implications of insurance cover, it may also

Remember, insurance cover

SCA and ARAMA have often referred to an effective management structure for strata schemes being the “triangle of management”.

With such a dynamic and ever-changing situation, restrictions on mass-gatherings are continually being revised, so AGMs and possibly even committee meetings are likely to be affected.

approval from an adjudicator for annual general meetings to be held outside the legislative timeframe, and announced that “provided that bodies corporate make reasonable endeavours to comply with the legislative requirements for holding general meetings, instances of non-compliance that do not affect the voting outcomes will be unlikely to affect the validity of meetings”.

The BCCM Office issued responses to some of the issues relating to social distancing that may cause uncertainties with quorums, electronic voting/ attendance and the impact on the validity of decision making.

They reminded bodies corporate that they are able to seek

SCA (Qld) has also written to the Attorney-General requesting to prioritise the implementation of the amended regulations, in particular electronic meeting attendance. We understand the strata community’s concerns and are seeking clarification to avoid future repercussions.

The massive economic, social, political and health concerns caused by COVID -19 require the strength and guidance of a proper functioning triangle of management to ensure that residents of strata schemes are best equipped to handle these uncertain times.

April 2020 | ResortNews

This is where well-informed committees work hand in glove with diligent professionals, being strata managers and resident managers, to achieve the best outcomes for the strata community.

INDUSTRY

be advisable to consider seeking qualified legal advice prior to lodging an application for alternative cover.

Finally, some resources about insurance that may assist. My office has collaborated with the Insurance Council of Australia on a fact sheet, providing some practical tips which may assist bodies corporate in reducing their insurance premiums. Secondly, for bodies corporate in Northern Australia (which is defined as from Rockhampton north and west by 100km), there may be the possibility of being part of the Strata Title Inspection Program, being run by James Cook University in Townsville as part of a Federal Government program.

One of the aims of this program is making bodies corporate more resilient to weather events.

For general body corporate information, contact my office on 1800 060 119 or www.qld. gov.au/bodycorporate.

SCA and ARAMA recently sent a co-branded letter to the Attorney General stressing the essential nature of management rights and strata management for the proper functioning of the strata schemes that represent the homes and investments of over 1.2 million Queenslanders.

This is a tough time for everyone and there is great uncertainty regarding when it may get better.

As a scheme, we call ourselves a “community” and, if there was ever a time we needed to act like one, it is now. I hope that all of you, your families, friends and communities stay safe, stay informed and stay kind to one another.

13

SPECIAL REPORT

AccomProperties: Tailored for the industry 14

INDUSTRY

ResortNews | April 2020

Plato said “Necessity is the mother of invention”, and in the dynamic and rapidly evolving management rights and real estate industries, the development of a full-service, interactive and cost-effective sales and rental platform for managers and brokers was well overdue.

Developed and launched in 2019, the AccomProperties portal offers a professionally managed Sales and Rentals platform with access to all the leading marketing sites including Realestate.com. au, Domain, Rent.com.au, Homesales, Homely and more recently Realestateview. It also offers access to essential real estate tools such as Pricefinder, Tica and 1Form but most important of all there are no split commissions meaning resident managers and brokers who have a full real estate license can manage the full sales process.

Speaking of the state-of-theart platform, Patrick Clarke, managing director of Multimedia / Resort Publishing said: “Simply put AccomProperties is a marketing resource that ensures resident managers have every opportunity to experience a smooth and successful sales and rental process built with them, and for them. The Sales and Rental portal has developed as the membership has grown and it now boasts over 200 members and we’re still actively recruiting.

“ResortNews/Multimedia has been part of the accommodation industry for over 25 years and our reporting, advertising and production teams are completely invested in making a significant contribution to the ongoing success of this incredible industry.

“Having lived through and reported on the ups and downs and maturing of the sector we recognise the importance of supporting the managers in the best ways we can; not only through our reporting of news and distribution of information but by allowing them to access a trustworthy, easy, economical and supportive online destination for buying or selling management rights and accommodation property in April 2020 | ResortNews

therefore in the unique position to support industry managers in a variety of ways through not only the AccomProperties online portal but also our websites, newsletters and through our respected publications. We offer specialised and proactive support to ensure managers get their properties online and earning them an income quickly.”

Australia and a portal for them to list units for sale and rentals.”

On joining the growing portal and partnering with AccomProperties, licenced resident managers are given the support and tools to protect their letting pool and the opportunity to earn extra income by selling units within their own building. Our portal gives direct access to the largest real estate websites in Australia including realestate.com.au and Domain, as well as industry leading tools and resources to ensure smooth transactions.”

And how has the industry responded?

“We believe the response has been incredibly positive and supportive,” he said. “We have had amazing feedback from both colleagues other agencies and managers who find our process easy and our support refreshing, but one should really hear it from the users themselves.”

Sophie Dillon, general manager of Alexandria Apartments says: “We had never used an online residential rental and sales listing marketing service before and were quite tentative, but the service we received from Patrick at AccomProperties was superb. Patrick was always available and incredibly helpful.

He anticipated our needs and fixed our problems promptly and effortlessly. In an era where most companies hide behind email, it was such a pleasure to deal with a company that actually likes talking to its clients.”

Mei-Chu Wang, resident manager of Enoggera Manors in Brisbane agrees: “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.”

“Being as invested in the industry as we are,” added Patrick, “it also made sense that we partner with peak industry body ARAMA to be able to offer members a discounted joining rate for the first 12 months.”

“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,” said Glynis Higgs, resident manager of No. 1 Newstead Avenue, Brisbane. “The app 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 had it sorted very quickly. My previous service took 24 hours to hit realestate. com, but with AccomProperties the post was up in half an hour and edits were uploaded just as quickly. I had three referrals in the first hour, and the property was leased within 48 hours. A fantastic result!

It’s hard to believe this full-service offering hasn’t been available until now, and if there is, how does AccomProperties differ?

“We are a team of trusted, long-time industry professionals with a wealth of knowledge,” adds Patrick. “We’re heavily invested in the industry, and are

INDUSTRY

Eric Van Meurs, resident manager of Atlantis Marcoola and president of ARAMA, says: “Atlantis Marcoola is thrilled with the results after signing up with AccomProperties. The registration and set up was quick and simple, and since registering, we have sold both of our properties to investors, and our three rental listing have all been picked up. As an ARAMA member, I appreciate the value this partnership brings to my business and look forward to working with AccomProperties into the future. My thanks to Patrick and the team for their professional and friendly support!”

So what is planned for the innovative service going forward?

“We intend to keep growing and adapting to meet client and industry requirements,” says Patrick.

“AccomProperties has shown tremendous backing for the management and letting rights Industry by enabling ARAMA members to connect to realestate.com.au, Domain and other portals,” said Trevor Rawnsley, CEO of ARAMA. “Protecting your letting pool has never been more important, and it’s now more affordable and easier than with the new platform.”

Industry guru, long-term owner and chairman of MLR Services, Mike O’Farrell is also supportive: “By partnering with AccomProperties and joining this growing portal, licenced resident managers will effectively be given the tools to protect their letting pool as well as the opportunity to earn extra income by selling units within their own building. In doing so, resident managers will have more control of their business.”

For further information or to arrange a consultation, please contact Stewart Shimmin on (07) 5440 5322 or visit accomproperties.com.au

15

PERSON OF INTEREST

Rusty Lush: An accidental entrepreneur

was there until a move to Keith in South Australia, where he met and married his soul mate Lorraine. They had two children.

Always community-minded, Rusty became involved in the political world and in 1975, as deputy leader of a governmentsponsored agricultural instruction team, he worked in Libya for three months teaching new farmers the basics of farm management and raising livestock.

On his return, Rusty’s involvement in the political arena grew and it wasn’t long before an opportunity arose to move to Queensland.

“For as long as I can remember I wanted to live in Queensland,” says Rusty. “I really dislike the cold and growing up, Queensland always sounded like paradise – it was hard to leave family and friends but the move was a very positive one for our family.”

Rusty and Lorraine moved to Goondiwindi where they ran a sheep and grain farm, and with Lorraine providing golf coaching in the community, they saw an opportunity to also provide sporting goods and opened Goondiwindi Guns & Golf and then a budget fashion store.

So how did this humble farmer/retailer end up as a real estate mogul?

Rusty is matter of fact.

“Farming can be a tough gig, it’s unpredictable and it can be an unreliable livelihood. Our family has always been very close and we wanted to make sure that we were giving our children the best options for their future. In 1986 we decided to sell up everything and move to the Gold Coast.

By Trish Riley, Editor

“The harder I work, the luckier I get”- Thomas Jefferson? Coleman Cox? Stephen Leacock? Samuel Goldwyn? Anonymous?

There appears to be a divergence of opinion about who this quotation should be ascribed

16

to. It really doesn’t matter who said it though; living proof that there is merit in the statement is industry stalwart, Rusty Lush – former part-owner of The RAAS Group - the largest speciality agency of its kind in Australia.

And as a self-confessed quodophile, Rusty has a number of sayings and expressions that he says has guided him

through life with “The clever part to being smart is knowing what you are dumb at” being at the top of the list...

Rusty grew up on a dairy farm in Adelaide Hills and attributes his work ethic and lifelong love of the land to his humble beginnings. On leaving school he headed off to Alice Springs to work as a jackaroo and he

INDUSTRY

Needing to re-establish himself, Rusty completed his real estate license and began working for the Bonifant Group in Surfers where he recalls working seven days a week. “It was a steep learning curve but I’ve always believed that the harder you work and the more you learn, the easier things become. I volunteered for everything.

“We had a roster system back then,” says Rusty, “and while most of the staff hated working on weekends I would always offer to take their spot. I notched up hours that few people could beat; and as a result, I couldn’t help but be successful.”

Rusty and Lorraine went on ResortNews | April 2020

to open a real estate office in Mudgeeraba specialising in the marketing of housing subdivisions, but he openly admits that he disliked doing general real estate. He was however, intrigued by the burgeoning sub-sector that was developing around management rights and it wasn’t long before he joined the Venz Management Rights as a member of the Brisbane sales team.

Rusty spent eight years with Venz, working closely with industry experts, Mike Butler and Nan Demerill, selling management rights and conducting successful property marketing seminars in New Zealand, Singapore, Hong Kong, Malaysia and Taiwan.

During the same period, he and Lorraine purchased their own management rights operation - a run-down complex in Brisbane’s southside and by applying sound management principles learnt from years of experience, they converted the ugly, problem-plagued complex into a beautifully presented, efficient business in less than nine months. The business was sold a few months later and the couple then went on to own shares in two management rights businesses – one in Noosa and the other in Cairns which they held for a long time.

I sat ‘hand-holding’ and settling them down and I made sure this ‘service’ was available to all RAAS clients via a hand-picked team.

to be so much more than just real estate. The extended service offering included management rights, motels, special projects and real estate but the service that Rusty is most proud of however, and the ‘secret’ that he attributes much of the growth and reputational success achieved by the group over the years is RAAS Care – the appointment of dedicated managers to act as ‘go-to’ people for resident managers when they needed help, or simply ‘ran out of puff ’…

“RAAS became known for its personal approach, and I am proud of the culture that we created.”

“As with farming, management rights can be unpredictable,” says Rusty. “There are multiple demands and long hours involved, and not everyone is able to easily navigate the first couple of months. I always made sure my clients could reach me – even if it was just to be able to voice a concern.

I lost count of the number of weekends

Today, there are close to 400 RAAS members, sales consultants working with owners and renters in a great selection of residential complexes all over Australia. With a strong presence across Queensland and Northern New South Wales RAAS is currently expanding into other states and territories of Australia with a team of another 20 specialist advisers handling management rights sales.

“Management rights has a sound future,” says Rusty. “The current situation aside, I’ve seen the industry evolve and shift to accommodate everything that has been thrown at it. The sector has matured and there is now a plethora of industry specialists – accountants, lawyers, trainers and the like to support new managers. Even the calibre of managers entering the market has changed – they appear to be more sophisticated and knowledgeable of what is required to make the business successful long-term. ARAMA has played a big part in the latter.

“Management rights is a wonderful business model,” he adds. “It’s a lucrative opportunity for the right owner and invaluable for investors. By buying into a property with a resident manager, owners and investors have a dedicated person – with a vested interest – looking after their property and interests, and they don’t have to worry about on-site issues like tending to pools and lifts or maintaining gardens etc.

“The industry has however, got a lot tougher,” adds Rusty. “It appears the further away we move from the original concept, and everything becomes about the bottom line, the more disputes there are.

During his time at Venz, Rusty became aware of an operation on the Sunshine Coast – RAAS Real Estate – headed

by Geoff Glanville that was focused on giving onsite managers the ability to preserve their rental/letting pool, and avoid significant loss of capital, by being able to sell properties on behalf of their owners.

“Ultimately, the things that were important 20 to 30 years ago have not changed, and I refer back to my ‘rules of life’ – have a good, strong work ethic, understand the legalities of the business and what is required of you, implement regular communications with all stakeholders and be a people person.

He and Mike Butler ultimately purchased the Brisbane franchise as joint partners and then went on to secure the rights for the Gold Coast. By 2003, RAAS was a major force in the sales of management rights businesses, and Lorraine joined the business.

“Business is therapeutic, and if you can manage to do these things, you can’t help but succeed.”

Having always been an adventurous man, I ask Rusty what he has planned for the future. It appears he is still working on a number of projects, both locally and internationally, and despite being currently curtailed he says: “It’s been a wonderful trip, I’m still enjoying the ride.”

In 2012, Geoff became seriously ill and Rusty and Mike purchased the remaining Sunshine Coast portion of the company from him. The RAAS Group quickly became one of the largest management rights specialists in Australia, evolving April 2020 | ResortNews

Rusty and Mike sold RAAS in 2019 when they ‘tentatively’ retired, but both have retained an interest in the company.

When asked about how he sees the industry going forward Rusty is optimistic.

INDUSTRY

17

Rather than having a term equal to the maximum allowed at law, many Caretaking and Letting Agreements cover the setting of their term, by having an initial fixed term – say 10 years for Accommodation Module and five years for Standard Module – and then include a right for the resident manager – caretaker/letting agent – to extend the term, at the manager’s option, on one or more occasions.

The method for extending the term – exercising the right in the option – may be stated in various ways. It may be by a written notice which must be given at any time before the term expiry, or, by giving the notice within a specified time – often it is at least three months prior to the expiration – and then sometimes there is a limit that restricts exercising the right to a time not earlier than a particular date – often not earlier than six months prior. This method only presents the manager with a three-month window of time to so exercise the option right!

©gustavofrazao - stock.adobe.com

LEGAL EASE

All about options…

up the value of the manager’s business and to avoid the threat of termination for default.

One wonders why initial terms and options should be used in this manner and there are several perspectives to consider.

When term limitations of 25 years and 10 years, respectively depending on the Module, were first applied to such agreements in the 1997 Act, the tendency was to go for the maximum term and not include shorter terms with Options to extend. However, for reasons not fully known, the use of five-year Options became more normal for inclusion, rather than the straight longer term. One thought is that it accustoms both managers and body corporate lot owners to expect that extensions of the term would be occurring, normally and regularly, thus training an acceptance of this principle of continuing the Agreement.

Of course, in commercial leases, a term and options to

18

John Punch, Short, Punch & Greatorix

renew a lease, have always abounded and Caretaking and Letting Agreements are often compared – mistakenly – to lease arrangements.

There is another aspect, and that is that the manager has to not be “in default” of the terms of the agreement, to be able to exercise an Option. This gives an incentive to the manager to always perform well, in order to have the Option capable of being exercised. It is rather a misplaced concept considering that the commercial incentive to perform well is already covered by the need for the manager to perform well to keep

Training of the organisations, be it the manager or the body corporate’s lot owners, to be used to regularly renew the term for such an important document, has always been a priority and a necessity, to keep the manager of the business and the body corporate with a working building maintenance system.

Hence, Options fill an important training of an acceptance, for continuing management, in the government of buildings.

When the Act was drafted and made, its legal language was minimalistic – that is, it used less words to explain its edicts, rather than being more encompassing with more detailed language.

This meant that there was little wording used in expressing “term limitation” for Agreements – the words used just stated that Agreement’s terms were not to be more than 25 years or 10 years, respectively, with a specified start date and end date, and that part of a term making it longer, is unenforceable.

MANAGEMENT

This led to uncertainty as to the parties being lawfully able to later extend the term, in a variation to the Agreement.

This uncertainty in the legal terminology ignored another minimalist statement in the Act, which said that Agreements could always be “made or altered”, by a document made as a result of a vote for an Ordinary Resolution by lot owners in a general meeting. The query was, could the term be altered, as time expired, to be more than the initial 25- or 10-year limitations.

It then took an amendment made to the Act several years later, to both clarify and limit the use of Options, as a normal right of term extension or renewal. The amendment provided the rider that the term limitation – of 25-years or 10-years, respectively – from the date of the meeting extending the term, would apply to the total possible term. For example, a five-year Option could only be added to an Agreement that had 20 years or less, remaining at that time as its term (being the time of the meeting adding the Option).

ResortNews | April 2020

Also, the government of the time, felt it necessary to limit the term of any option to be added, to be not longer than five years. Given that the possible total term, at that time, cannot exceed the overall term limitation, it seems to be an unnecessary inclusion in the law.

the term of an Agreement, is needing to fully understand and to remember the date applicable in order to use the process applying, to exercise the Option.

Failure will mean being reliant on having lot owners vote in a general meeting of the body corporate, to make an entirely fresh Agreement, by a secret ballot of lot owners voting.

This requires that at least 51 percent of the votes cast are in favour – and that other material (specified in the law) is given to owners, being a copy of the Agreement with a Form 20 explanation Sheet. This is not always an easy path or a foregone conclusion, although arguably, lot owners should understand the necessity for the continuation of good community servicing of its needs, by having such an Agreement covering the caretaking of the common property and the responsibility of arranging on site letting of lots for those owners who so wish for this activity.

So, we now have a codified system in our Act and its Modules of Regulation, in Queensland, where the initial term of Agreements are limited to either 25-years or 10-years respectively, (depending on the Module) and Options for rights of renewal or extension of the term are allowed to be added to the initial term, but are also limited to up to five years, where the total possible term at any time is the maximum of 25 years or 10 years.

Now to the most important part – that is- an understanding that a failure to exercise an Option in an Agreement, cannot be rectified! Failure to exercise the Option at all, or properly, is fatal to the continuation of the Agreement.

Most managers also realise that when the Option is exercised, it is important to replace the expired term, by seeking to add a

Hence, every manager relying on using an Option to extend

further Option at the next AGM. It is a two-step process – first exercise the Option, and then, provide a Motion to the Body Corporate for its next AGM, for lot owners to vote on, in favour of having a further Option (of up to 5 years) added by way of an alteration of the Agreement.

I have attempted to explain the particular history and legalities applying to Options in order that managers and lot owners will be able to understand more fully the importance of options to renew the term of agreements. They certainly deserve a great deal of respect and understanding.

Now, there are a couple things to do to make your position better when it comes to Options.

Firstly, there is the necessity to maintain an excellent working relationship with your committee, the body corporate manager and all the lot owners.

This will help you cover your needs for new options to be added to your agreements.

Often, a committee will wish to consider whether or not any other changes are needed to your agreements, at the

time when you are seeking a fresh option. Therefore, be prepared for any discussion where you decide with the committee the merits of what is written and worked to in regard to the Agreements.

A good manager is always able to explain and justify the essentials in their Agreements, or access knowledge in order to cover any points carefully.

Any notice exercising the Option, when given to the body corporate, needs to be acknowledged in writing by the body corporate. Always document the exercise of the Option, which is best done in a short deed that does not need a motion of a general meeting to approve for the body corporate’s execution under seal. It can also be recorded as exercised in any deed that is used when the new Option variation is documented, if that is occurring.

All that needs to be done is best done under the guidance of a lawyer and having motions, deeds and other forms, drawn by a lawyer specialising in the management rights sector.

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April 2020 | ResortNews

MANAGEMENT

19

BY ALL ACCOUNTS

Pestilence and preparation Bushfires, floods and now COVID-19: Are you on top of cash flow planning for your business?

It’s been a rough start to 2020 with no certainty as to how long or hard the tough times will get.

The Australian Government’s stimulus package as well as their $1 billion commitment to assist regions and industries, including the tourism industry, disproportionately affected by the rolling catastrophes will help a little. However, now is the time to ensure that you are doing all you can to manage your own business cashflows.

Government stimulus package – cash for employers If you employ staff you will receive a payment equal to 50 percent of the amount of tax withheld (PAYGW) from employee wages. If you employ staff but don’t withhold PAYGW because wages are below withholding thresholds, you will receive a minimum payment of $2,000.

This will be automatically calculated and applied to your activity statements when lodged for the period from January 1 2020 to June 30 2020.

Do you pay yourself wages?

Depending on your business structure you may be paid by way

making future bookings and business revenue uncertain for the coming months.

What you can do however, is manage your costs. To best manage costs you need to know what they are, the whole picture.

Devote time to reviewing all costs by month for the last year and create a budget for the next six months as a minimum.

Refer to the Cashflow Assistance for Businesses government factsheet for more information on the full range of benefits included in the stimulus package.

Look at costs that are variable depending on business revenue, those costs should drop where you suffer a reduction of income.

Review your other costs and non-essential spending, where can you pinch pennies or look for reduced cost alternatives?

Can you liaise with suppliers to renegotiate contracts? Do you have staff with accrued leave balances, are they willing to take leave during quieter periods?

Do you have one-off bills due for payment, can you liaise with service providers to negotiate monthly payments? Are there non-essential outgoings you can delay or cut back on?

Budget: What are your costs?

ATO lodgements and liabilities

It’s hard to manage your cashflow without knowing what’s coming.

With mandatory quarantine periods for international visitors and the cancellation of mass gatherings across the nation you will have lost a lot of control over room rates and occupancy,

Hiding from the taxman is never the answer to your cash flow problems. If you have outstanding tax liabilities, contact the ATO either directly via your business portal, phone or via your accountant – they are always more agreeable to payment arrangements or extension applications when requests are made before amounts become overdue.

Lel Parnis, Partner, Holmans Accounting

of dividends or trust distributions for which you will receive no benefit from the stimulus payment. It may be appropriate from a cash and tax planning perspective to restructure how you are being paid for the period from 1 January to 30 June 2020 in light of the Government PAYGW support payments.

QLD - NSW - VIC - WA

Remember too, that any payment arrangement entered into with the ATO requires you to make the agreed repayments and that all future lodgements and payments are made on time. If you need assistance with the payment of future BAS and tax returns then you will need to re-negotiate your existing arrangements to avoid being in default and potentially incurring interest and penalties.

As with all your other business

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MANAGEMENT

costs, tax liabilities should be considered in your cash flow planning – the more you know the better you can plan. Your bookkeeper and accountant are your allies, particularly in tough times, let them help you.

Delaying the preparation of BAS or tax returns doesn’t save you cash it only keeps you in dark as to how much you may be up for paying, and prolongs the anxiety.

Once you know your liabilities you can plan your cash flows.

The government continues to release information regarding their stimulus package but ensuring lodgements are made on time would be prudent to ensure you don’t miss out on the assistance being offered.

Pre-June 30 2020 planning Schedule your pre-end of financial year planning meeting with your accountant sooner rather than later. You may need assistance with registrations to maximise the benefit you are entitled to from the government’s stimulus package. You may also need to review your business structure to ensure it is still the most effective option for you and the business.

Your accountant can review the year-to-date business performance and provide options for you to manage your tax liabilities and to assist with budgets and cash flow planning.

The government are yet to release details on the support for disproportionately affected industries, including the tourism sector, though we are keeping a keen eye on developments and how they may assist our clients in the accommodation industry.

Remember, the sun will come out – if not tomorrow, soon and the fires, floods and COVID-19 will be a distant memory.

ResortNews | April 2020

Jane Wilson, acting commissioner suggests taking the time to also think about the underlying issues at play and whether a new person in a role is going to address them.

Please note that all responses provided apply to the Standard Regulation Module. You should check the regulation module your scheme is registered under for the relevant information.

Q: A committee member has resigned. Do we need to replace them or can we just wait until the next annual general meeting (AGM)?

A: If a committee member resigns, they must be replaced. Within one month of the resignation, the committee (if it can still form a quorum) can appoint a person who is eligible to be a voting member to fill the vacancy.

Alternatively, the committee can call an extraordinary general meeting (EGM) to choose a person to fill the vacancy. If the committee no longer has enough members to form a quorum, it must call an EGM.

Q: If an executive member resigns, can another executive member take on their role on the committee and hold two executive positions?

A: Yes, an eligible voting member April 2020 | ResortNews

can hold two or three executive positions. That said, the committee will still need to fill the vacancy created by the resignation by appointing a person to be an ordinary member of the committee.

Q: We are having trouble with a committee member - can we just remove them?

A: A committee member can be removed by ordinary resolution at an EGM. It is important that there is a motion that also appoints an eligible person to the vacant position. It can be a part of the motion to remove the committee member or a separate motion.

Q: We have a committee member who has breached the code of conduct. What can we do about it?

A: If it is alleged that a committee member has breached the code of conduct (the Act, Schedule 1A) the body corporate can pass a motion by ordinary resolution to issue them a breach notice.

This is a written notice of no more than 600 words identifying the breach and giving them a notice period of at least 21 days to give other owners a written response to the notice of no more than 600 words. The committee member can ask the body corporate to pay for their reasonable cost of distributing their response to other owners. After the notice period in the breach notice has ended, the body corporate then considers a motion by ordinary resolution at a general meeting remove the member from office.

A copy of the breach notice must be included in the notice of the meeting considering the motion to remove the committee member.

Q: If a committee member is removed from office due to a breach of code of conduct, do we need to replace them?

A: Yes. The body corporate may appoint a person who is eligible to be a member of the committee to fill the vacancy

at the same general meeting where the member is removed.

Q: We have called an EGM to fill a vacancy, but no one has nominated. Can we call for nominations from the floor?

A:Yes, if the meeting has been called to fill a vacancy, nominations may be made orally from the floor of the meeting.

Nominations can also be made by hand, by post and by facsimile to a committee member so that the member receives the nomination before the election is conducted at the meeting. An owner of a lot must be physically present at the meeting to vote in the election.

Q: Most of our committee has resigned. We are going to call an EGM but no one is showing any interest to be on the committee. What happens if we can’t replace all of committee members who resigned at the EGM?

without the committee’s leave, their position becomes vacant.

You can then take steps to fill the vacancy. The requirement for the “committee’s leave” requires some positive approval or consent to the absence – not just mere notification of an absence.

Q: The chairperson has been convicted of drink driving offences.

Can we remove him from the committee?

A: A position on the committee is automatically vacated if a member of the committee is convicted (whether or not the conviction is recorded) of an indictable offence. An indictable offence is a crime or misdemeanour that is more serious (like murder and assault), while simple offences (including traffic offences) are called summary offences. The body corporate may want to seek legal advice about whether a particular conviction is for an indictable offence.

A: If an EGM is called to fill a committee vacancy, the agenda must also include a motion approving the engagement of a body corporate manager to carry out the functions of the committee. The motion will only be considered if, after the election to fill the vacant positions, at least one executive position is not filled, or the total number of voting members is fewer than three. If it is considered, the motion must be the last item of business for the meeting.

©khosrork - stock.adobe.com

The Office of the Commissioner for Body Corporate and Community Management receives a lot of enquiries about the process for removing and replacing committee members. While the FAQs below provide some general information about these topics, it’s worth saying that merely removing and replacing a committee member is not necessarily going to solve all problems.

Q: One of our committee members doesn’t come to meetings or vote by proxy. Can they still be on the committee?

A: If a committee member is not present personally or by proxy for two consecutive meetings of the committee,

MANAGEMENT

Q&A

Removing and replacing committee members

21

THINKING MR MOTEL MARKET

The end is nigh…

Nah, just kidding This morning I queued at Woollies in Noosa at 6:30am to be somewhere near the front of the line for the 7am pensioners and seniors’ hour of power. I carried with me a doctor’s letter confirming I was buying essentials for my mother-in-law, as well as supporting pensioner concession and seniors’ cards plus a photo of said pensioner holding the cards. I was tenth in the queue and by the time I had acquired my allocated one sixpack of toilet paper and done one lap of the shop the entire toilet paper shelf was empty.

Mike Phipps, Director, Mike Phipps Finance

Empty!

once the mob is on the move there seems to be no stopping them. Rhyme and reason are out the window and a new global economic crisis looms.

This will surely be followed by a cure (at some point) and then the mother of all economic recoveries. In the interim we will do what societies do these days, which is to overreact and panic. Think of the GFC with a temperature and a cough.

The psychology of linking a flu like virus with a need to stockpile toilet paper escapes me but

If you are reading this, you are almost certainly in the accommodation business. If you

run a permanent management rights or a motel in a large regional centre my guess is you are going to be ok. If you have a leisure or corporate short stay management rights, hotel or motel it’s likely to get tough, if it hasn’t already. This will particularly be the case in markets that rely on international tourism, conferences or domestic tourism outside established drive markets. I expect even the traditional strong performing drive markets (think Noosa and Byron) will suffer.

If you are carrying debt (aren’t we all) there is some good news in the midst of this debacle. The banks have made it absolutely clear to us that they will go out of their way to support their clients. Many have already implemented strategies to give businesses scope to reduce and defer loan repayments, capitalise interest and negotiate mutually agreeable outcomes.

We are assisting clients in need and have retained all our staff to

ensure we can focus on client support. If you have finance approved and are unconditional on a new purchase, we firmly believe the banks will honour that commitment and provide whatever assistance is required post settlement.

If you are negotiating a purchase of a leisure-based accommodation business we think it would be prudent to ensure your contract allows for the possibility of settlement once the crisis has passed. No doubt deals will still get done but the uncertainty out there right now is palpable, and we think that contract conditions that allow sales to proceed, while taking into account the current trading environment, are a worthwhile discussion to have.

If you are a vendor looking down the barrel of a COVID-19 impacted net profit, do not despair. I think it’s reasonable to suggest that valuers will treat the current situation for what it is. A once in a generation

Motel sales: Enquiry to inspection The sale of any business is a process. In this article we consider a snapshot of the initial elements of the process, including the enquiry, qualification of that enquiry and the physical property inspection.

Enquiry and qualification The initial enquiry for a motel business that is available for sale in the market starts with a certain level of information being provided by the enquirer including details about themselves and what they are

22

buyers having access to their confidential information so a large part of the broker’s role is to ensure that prospective buyers are properly qualified.

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

looking for, and forms part of the initial qualification process by the broker. Any motel owner selling their business does not want unqualified

And those selling their motel should always work on the premise of seeking fully qualified buyers, meaning fully funded parties that have a genuine intent to buy. There are many ways to complete this and discussions with a specialist motel broker as to how they will handle this process will save considerable time and money for the seller over the course of the marketing campaign.

Once a buyer has been fully qualified (as far as they can be),

MANAGEMENT

then one can have confidence that the sensitive business information that they are providing will be handled appropriately. The use of confidentiality agreements should be standard operating procedure. Those prospective buyers that refuse to sign such a document have effectively identified themselves as non-genuine buyers.

Physical property inspection Moving ahead, if all business data is in order the next stage is the physical property inspection. As opposed to the residential real estate industry where the advertising ResortNews | April 2020

event that should be netted out of P and Ls for sale purposes.

Indeed, valuers I talk to suggest that they are inclined to focus on maintainable net profit, not a one-year report that may reflect the sort of aberrations we are currently witnessing.

If ever there was an argument for moving to three-year financials for management rights sales I think we are seeing it play out right now. Perhaps we could adopt the COVID-19 MLR accounting standard as the new industry expression for sales predicated on three-year financials. Just a thought.

Anyway, back to current operators and a few suggestions.

Firstly, don’t even think about refinancing and beware anyone who suggests that this is a way to get your cash flow problems solved. Stick with your current bank, they are all seeing the crisis pretty much the same and they are all working on strategies to support their clients. It’s a moving target for sure but it’s moving in the right direction.

The banks all have financial distress help lines and as a minimum you can expect most lenders to offer a three-month repayment holiday once you apply. We will help anyone who asks but ultimately you may end up on the help line queue. Be

patient and please know that the person you end up talking to has been dealing with distressed borrowers all day. Please play nice, we are all in this together.

Talk to your accountant about the various government schemes available to help you get through.

Everything from subsidies to help pay staff to interest free loans are on the table and your accountant is the best source of this specialist information. The level of government stimulus funding now available, combined with the current RBA cash rate presents an unprecedented response in support of the economy.

And don’t stop trying! Look at the markets you can attract and keep promoting your business.

It’s easy to take a defeatist attitude when all the news is bad, but some demand will remain, particularly in drive markets.

We are told by some clients in regional tourism locations that they have not lost a single booking. They put it down to people looking for somewhere to get away from the doom and gloom newsfeeds and chill out. Either that or wait for the zombie apocalypse I guess.

When this is all over and we are back to some sort of normal I would encourage all operators to reflect on working capital and contingency provisioning.

I have been surprised and a bit shocked to learn how many people live week to week and how many businesses have almost no emergency cash reserve buffer. It’s an area of business planning we focus on with clients, but I suspect is seldom followed post settlement.

I know it’s hard to imagine in these dark days, but we will recover and prosper in our industry. In the interim I expect banks to play a fair hand, the government to move heaven and earth to avoid a recession and permanent management rights values to rise. Yep, it’s the GFC all over again.

I’ll leave you with Winston… “the darkest hour is just before the dawn”, or, if you prefer… if you’re going through hell, keep going!

Stop Press: Even as I write this article bank announcements keep appearing. The game is moving so fast I am not going to outline the current state of play in any detail. By tomorrow the info may well be obsolete.

Suffice to say that following the ABA announcement we are now in no doubt that the Reserve Bank, the retail banks and the government are in lock step. One thing to note though. The announcements of loan repayment holidays for up to six months won’t be

April 2020 | ResortNews

By the way… I don’t care if you are a client of ours or not… if you need some help or just a shoulder to cry on give us a ring.

We’ve got plenty of tissues. No toilet paper, but lots of tissues.

process to avoid any damage to the business as a result of the inspection – one simply cannot arrive at reception and ask to look around… ©Brian Jackson - stock.adobe.com

of how many inspections have been conducted is seen as a positive thing, the sale of a business is quite the opposite.

If the qualification process is completed correctly, the number of property inspections conducted should be very limited. The “more the merrier” is not best practice for the sale of a business - only fully qualified buyers should ever gain access to the backend of a motel business.

At inspection a potential buyer wants to look at the good, the bad and the ugly for as long as they like. The seller wants the buyer to have a quick look around, say yes they will buy it and leave so as to avoid any employees or customers finding out that they are selling. It can be an awkward situation when the seller, broker and buyer are talking about sensitive business specific information and a staff member, customer or supplier

automatically applied to your loan. You will need to ask and I expect the banks will want some justification for your request. I don’t expect this to be onerous as the impact will most likely be self evident. If you are contacted by your bank and offered a repayment holiday, take it. Even if you think you can get through now is the time to stay as liquid as possible. If you are in a partnership give some thought to reducing monthly distributions and building a liquidity war chest. We expect the banks to capitalise interest to your loan balance and restart repayments once the economy recovers. I think the most likely approach will be to extend the loan term so your repayments, once we are back in our feet, stay pretty much as they were pre-crisis. Thank god the banking royal witch hunt, whoops, commission, didn’t materially weaken our banks or impact confidence in the system.

We are fortunate indeed to have a stable and well capitalised banking system that I suspect is now the envy of the world.

walks through the door. The busiest times of the motelier’s day are therefore simply not suitable for conducting an inspection, and all parties need to be acutely aware of the sensitive and confidential situation that they are in.

The motel broker must arrange a mutually suitable time for all parties for an inspection of the property, taking into account

the busy and quiet times of the particular motel business.

These times will vary from motel to motel depending on the type of clientele and income departments the business has.

While buyers may be flexible with their time and availability, for the seller, there may only be specific pockets of the day when it is appropriate to carry out a thorough inspection. The motel broker should manage the

MANAGEMENT

Some buyers may choose to stay at the motel unannounced as a paying guest, having a quiet look around without disturbing anyone, which is quite acceptable, until they are able to have a thorough inspection.

While the seller of the motel business can be involved in the physical inspection, they may also choose to leave it to the broker. This being said, the broker is generally in attendance at any inspection to ensure that there are no unexpected issues that arise.

The property needs to be an open book with the seller being as transparent as possible, and allowing the buyer to look throughout the entire property as in-depth as they wish.

23

INTONET

Mirror, mirror on the wall…

We all remember the wicked witch in ‘Snow White and the seven dwarfs’ demanding to know who the ‘fairest of them all’ was, and it is indeed a fair reprise of that question to discover who holds that accolade amongst Siri, Alexa, Cortana and Google Assistant.

These three ‘ladies’ and an androgynous assistant with a female voice are beginning to dominate the digital search world.

Besides providing us with the convenience of spoken search they are also impacting on our web sites. And this makes it vital for us to understand them and how to use them in the most beneficial way. But let’s take one step back…

Apple introduced Siri in April 2011, followed by Google Assistant in July 2012. Microsoft's Cortana arrived April 2013 and Alexa was born to Amazon in November 2014. The first two arrivals were aimed directly at the smart phone market while Cortana found a home in Windows 10, and Alexa found her place in the first commercial smart speaker.

For the sake of this article I have skipped a few milestones which you can unearth at "voicebot. ai" if you are interested in the full saga, and I assure you that you will marvel at how this technology has grown from the first IBM system called Shoebox, which recognised just 16 words and digits.

Of course these digital personalities are required to perform the mammoth task of firstly understanding us, then translating our audible words into text and finally being able to submit these terms to the chosen search engine.

All this actually takes place in the ubiquitous cloud land.

I think I have mentioned before that I use voice activation quite a lot on my phone, allowing it to reside in my pocket and yet

24

Apple's Siri is by far the wittiest of the personal assistants, the one that allows you to speak the most naturally and it offers features like Siri Shortcuts that make getting things done quick and easy, but it is tied into Apple devices and it offers less compatibility with apps and services compared to Alexa and Google Assistant.

Arvo Elias, Cybercons

performing fundamental tasks of reading out aloud my SMS's and answering the phone. In practice these assistants can do a plethora of things.

Voice assistants can make calls, send text messages, look things up online, provide directions, open apps, set appointments on our calendars, and initiate or complete many other tasks. With the addition of separate apps on the phone, our voice can be a type of remote control for our lives.

The ‘ladies’ have all been set up to mimic. They have their own characteristics, specialities and intended and unintended quirks. The last time I checked Google Assistant was at the top of the tree for virtually all areas of performance except when it came to navigation. The star performer here was Siri. So how do their skills compare?

Google Assistant is very impressive. It can handle multiple queries at once, personalise results by recognising a voice profile and it has the power of Google Search behind it, making it very accurate. The wake words aren't very personal though and it isn't as compatible with as many apps and services as Alexa. It’s also definitely not as funny as Siri.

Amazon's Alexa isn't as dynamic as Google Assistant, or as smart, but it is compatible with hundreds of thousands of services and apps, the Alexa wake word is personal and customisable and it has features like Alexa Calling.

Each personal assistant has its pros and cons. If you want the smartest, you'll want a device with Google Assistant. If you want the most compatibility with apps and services, you'll want a device with Alexa. If you want comedic interaction, you'll want an Apple device for Siri.

Bear in mind, if you have an Android or iOS phone, you can download the Google Assistant app and Alexa app from the App Store or Google Play Store. As mentioned, Siri is only available to Apple users so if you have an Apple device, you can pretty much have your cake and eat it with access to all three assistants.

When tested, Google answered 92.9 percent of questions correctly, while Apple scored 83.1 percent.

Alexa scored 79.8 percent and Cortana came in with 63 percent.

It is obvious that Google's power shines through and therefore, as far as internet searches are concerned, I would be inclined to concentrate on the leader.

The statistics relevant to this topic are also impressive. Most data is based on US stats, but then Australia tends to mimic their performance anyway.

The highest percentage of voice searches related to shopping; 51 percent of users research products while other shoppingrelated activities performed using voice include adding items to shopping lists (36 percent), tracking a package (30 percent), making a purchase (22 percent), providing ratings or reviews (20 percent), contacting support (18 percent), and reordering items (17 percent). This clearly means we cannot ignore this technology.

MANAGEMENT

From a web site's point of view, we must remember that almost 20 percent of all voice search queries are triggered by just 25 keywords.

What we do need to bear in mind however, is that as voice search through AI (Artificial Intelligence) becomes more prevalent, the language of search changes.

Product research is the most common shopping-related activity performed through voicesearch. It therefore becomes desirable to incorporate a FAQ page on your website.

Frequently asked questions (FAQ) pages appear to serve voice search purposes well. Long-tail keywords formulated as complete and conversational questions, answers to those questions, or location (“near me”) searches are becoming more important because they often answer voice search queries.

While a text-based search may seek broad information, a voice search generally seeks key information that can be concisely communicated, such as hours of operation, location, and directions and even how a community may rate the product.

There are millions of pages on the web, but none are more important to digital marketers than search engine results pages, or SERPs. These are the pages displayed by search engines in response to a query by a searcher. The main component of the SERP is the listing of results that are returned by the search engine in response to a keyword query, although the pages may also contain other results such as advertisements.

Creating landing pages with this key information in mind is likely to improve placement in SERPs for AI-assisted voice searches. And that rarified future is rapidly approaching as the next refinement.

Your need to have your website retuned to suit is important so have a chat with your webmaster sooner rather than later.

ResortNews | April 2020

of COVID-19 in accom facilities As resident managers amp up their protection against the spread of COVID-19, there are some precautions managers and staff can take to improve guest and employee health and safety.

Use pre-approved disinfectant products Switch to and use disinfectant products that have been preapproved by the Department of Health for use against emerging viral pathogens. Disinfectants should be applied during routine cleaning of guestrooms, public spaces, reception areas and meeting rooms.

Linens may also become contaminated with the virus, so it is important to add disinfectant when washing laundry. Bed scarves and bedspreads should be washed more frequently.

Train housekeeping staff to use the disinfectants safely and correctly. Staff should wear gloves when cleaning. Many of these cleaning products need to remain on hard surfaces for several minutes in order to work. Follow the manufacturer’s instructions for proper use to get the most virus killing protection. Schedule and perform routine cleaning and disinfection of all contact surfaces

April 2020 | ResortNews

©Kittiphan - stock.adobe.com

By Kline, Horney & Kirsch

in public areas and guestrooms: television remote controls, toilet flush handles, door handles, water faucet handles, and flooring.

Clean public spaces frequently Public spaces and the front desk need to be cleaned frequently.

If possible, provide disposable disinfectant wipes to front-ofhouse staff to disinfect surfaces between guests. High-touch areas in public spaces include tables in the lobby area and buttons on elevators, water fountains, and ice and vending machines.

Pens at the front desk and room keys and key cards should also be cleaned with disinfectant.

Remind staff and guests to keep hands clean Post signage to remind guests and workers to wash hands with soap and warm water frequently, for at least 20 seconds each time.

If possible, provide alcohol-based hand sanitizer that contains at least 60 percent alcohol in all guest contact areas and to all staff. In addition, staff should be advised not to touch their faces and to practice “social distancing” by standing at least three feet away from guests and other workers.

Educate staff on coronavirus symptoms Educate staff on the most common signs and symptoms of coronavirus infection, which are fever, dry cough, and shortness of breath. Symptoms typically occur one to 14 days after exposure, though a small proportion of people who are infected don’t have symptoms.

Keep records of guest and staff movement Maintain records that will help trace who has been in contact with any infected individuals that

MANAGEMENT

have been to your property. Review and implement a record keeping process to maintain records of guest and staff movement. These records should be kept for a minimum of 90 days. This includes maintaining guest registration records, employee work assignments, documentation of key control procedures including the electronic lock records, and security camera closed circuit tapes. This is especially important if someone at your resort has been confirmed to have the virus.

Stay informed and consult with local health departments Stay informed with updated and credible information on the COVID-19 virus and follow the information listed by the Department of Health, which also includes information on where the virus has spread in Australia and globally.

Consult with the local authorities to determine appropriate actions if a guest or worker presents symptoms of COVID-19 disease, as well as how to respond if asked to quarantine guests.

Public health officials at the state, federal, and local level have the legal authority to implement control measures to prevent the spread of communicable disease, such as isolation and quarantine, travel restrictions, and medical treatment.

25

HOUSEKEEPING

Preventing the spread

GOOD GOVERNANCE

Essential services: Maintenance of the fire protection system Unlike the terminology being used on hourly media reports at the moment, essential services in the community title sector are the key elements of infrastructure that are mandatory to include in the design and construction of buildings in Australia.

Without essential services the building will not be approved for construction, nor will it obtain an occupancy permit upon practical completion of construction. Every building in Australia must have: • •

•

Electrical systems power, lighting, etc.

Ventilation – fresh air flow, carpark exhaust system, sanitary/toilet exhaust, kitchen exhaust Water proofing – zero water ingress to habitable areas or structural elements

•

Enclosed - be able to be secure and ‘locked up’

•

Hydraulics – hot/cold water, drains, sewerage, rainwater disposal, etc.

•

Fall arrest systems – balustrade and handrail, window opening restrictor devices, etc

•

Structural systems

•

Safety provisions – fire protection system, tactile indicators, mandatory signage, etc.

The Building Act mandates that any structural system installed into a building must be maintained so as to function as intended for the full life of the building, so every essential service infrastructure element in the building must always be repaired and maintained so it works properly. If an essential service element does not work, you may be breaking the law.

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Lynda Kypriadakis, Diverse FMX

Key areas of risk for residential strata There are three key areas of focus every building owner should cover when considering maintenance of the common property: 1.

The fire protection system

2.

The electrical system

3.

Workplace health and safety

These are the three highest risk exposure areas for bodies corporate and owner’s corporations when it comes to managing their regulatory compliance obligations on the common property of residential strata.

Failure to maintain the fire protection and electrical systems in accordance with statutory requirements may expose the building to dreadful consequences in a fire event, as well as infringement penalties for non-compliance and voided insurance claims under certain circumstances. Failure to manage the common property workplace in accordance with WHS requirements may also have adverse outcomes for committee members, facilities managers and caretakers.

Fire protection systems – Understanding your assets and infrastructure The fire protection system for your building has been specifically designed by a fire engineer to ensure that:

•

Any fire in the building can be contained at its point of ignition for as long as possible;

•

Occupants can escape safely during a fire event; and

•

The firefighting services can access all areas of the building during a fire event.

In order to create an effective and compliant design, the fire engineer will assess all building materials specified by the architect, the spaces and compartments within the design and then apply these principles above.

Every Class 2-9 building has a fire protection system contained within it under law, which has been designed by the fire engineer and approved by the local fire regulator. It is vital that the building owner understands exactly what fire safety installations are installed in their building so they can be assured that they are properly maintained, so as to function as intended in a fire event.

NOTE – Fire protection systems in Class 2-9 buildings are more complex than Class 1a, however some Class 1a [townhouse schemes] may have fire protection devices installed on the common property, such as a hydrant system on the roadway areas and possibly a fire extinguisher at the BBQ area. The fire safety installation most prone to defects in Class 1a schemes is the fire separating party walls between duplexes or quadruplexes, etc. Defects in the fire separating party walls are commonly picked up by pre-purchase building/ pest inspectors prior to unit sales. These should have been picked up during the original builder’s statutory defect liability period and fixed under that warranty.

MANAGEMENT

Common fire system assets and infrastructure Commonly found in residential strata and mixeduse commercial properties are the following fire safety installations and equipment: •

Fire fighting equipment: - e.g. fire extinguishers [“portables”], fire hose reels, fire blankets

•

Water based suppression systems: - e.g. sprinkler and hydrant systems

•

Passive fire protection: e.g. fire separating walls, fire penetration seals, dampers

•

Detection and alarm systems

•

Fire pump sets, batteries and generators

•

Fire/smoke doors and hardware

•

Stairwell pressurisation

•

Signage

Your fire escape pathway is part of the fire protection system One of the most important – yet misunderstood – elements of the fire protection system is the fire escape pathway. This includes the hallways, doors and stairs that lead escapees to the assembly point during an emergency evacuation event.

In high-rise buildings the fire escape stairs will be supported by stairwell pressurisation to keep the stairwell free of smoke/ flames while occupants escape, and the fire brigade arrive to attend to their firefighting duties.

Obstructions in the fire escape pathway are a defect. They are considered a trip/slip/fall hazard in the fire escape pathway, which could have catastrophic consequences if escapees were to fall during an evacuation.

Trip hazards include loose mats outside the apartment doors, for example, or pot plants, furniture, artwork and other decorative ResortNews | April 2020

household items installed in residential strata hallways and lift lobbies. As a rule of thumb, there should be at least 1.5m clear access in the escape pathway with no trip hazards present [check with your fire safety advisor or your scheme’s Evacuation Plan for details].

AS1851 is the preeminent standard that imposes mandatory maintenance duties and obligations on residential strata committees, building managers and service contractors. Regardless of what year your building was constructed, if you have a fire safety installation within the common property, it must be maintained [so as to operate to its approved performance standard] in accordance with the current version of AS1851.

Your fire services contractor will tell you the required servicing frequencies under AS1851, or you can purchase a copy of this standard yourself.

Performance report Every building with a fire protection system must have a ‘Yearly Condition Report’ done under AS1851. This performance report will detail any noncompliances existing at the date of publication. Two consecutive Yearly Condition Reports must be held on file by the body corporate and no previously reported defects should be reported again in the following year.

Compliance report On an annual basis the building owner is required to submit a compliance report to the regulator to certify that the fire protection system complies with all standards. In Queensland the annual compliance report is called the “Occupier’s Statement” [refer Queensland Development Code, Mandatory Practice 6.1]. Each State and Territory have their own compliance reporting standards [check the ABMA Building Management Code© for details].

Interface testing of fire, automatic doors and air handling systems When there is a fire event and April 2020 | ResortNews

©irontrybex - stock.adobe.com

Maintenance of fire safety installations under Australian Standard 1851

the alarm is sounded, various individual fire safety installations function together to deal with the fire. For example, the alarm goes off and sends a signal to the fire station, then the sprinklers automatically start to operate, the lift comes to ground floor and stays there, the stairwell pressurisation kicks in to allow safe escape and ventilation dampers activate to stop the spread of smoke/flame through ducting. All these things happen automatically, and this is called a “fire systems interface”.

In addition to the routine servicing of each individual fire safety installation, the building owner also needs to ensure interface testing is done in accordance with AS1851.

This usually involves more than one service contractor attending at once to put the FIP into “fire mode” and observe/ check that the consequential actions occur as intended.

Confidence in the service providers defect report Ten years ago, a “service quote” for fire door inspection included undertaking the hinge or door closer adjustments and minor repairs while on site, however nowadays it appears that there is a trend emerging where the fire door “inspection” does not attempt to make these minor adjustments, but instead lists the servicing/repair requirements and then provides a quote to return to undertake these minor repairs at another time. This can add a significant extra cost to the fire servicing budget, so bodies corporate are encouraged to

discover details at the time of signing up for a service contract with the fire services provider.

Records checklist for residential strata committees: Have you got the following? •

Two years records of maintenance for all fire safety installations, including stairwell

pressurisation and carpark exhaust •

Interface testing records

•

Two consecutive years “Yearly Condition Reports”

•

[In Queensland] A current “Occupiers Statement”

These are your basic regulatory compliance requirements for the maintenance of the fire protection system.

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

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

MANAGEMENT

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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.

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By Kaitlyn Meehan, Cash Flow It Group

For any accommodation property or lot owner, there is pressure to keep up with the ever-changing desires of consumers.

Whether this be from a technology, design, architecture or even facilities standpoint, there is always a new trend coming to market that guests want to see as part of their stay.

Ensuring that these expectations are met is vital for upholding a competitive edge in the marketplace and maintaining a healthy occupancy rate.

As consumers shift from direct bookings to the use of

©ArchiVIZ - stock.adobe.com

GUEST EXPERIENCE

Timing of property refurbishments: – why it matters

online booking agents, and with the rise of online review platforms, now more than ever it is important to ensure that every guest has a positive experience. Word of mouth is a powerful marketing tool and the

impact that negative reviews have on an accommodation business can be detrimental. An important element in providing this experience is consistency, it is important that when guests step into their room

it meets their expectations based upon the pictures and description displayed online.

Failure to meet these pre-set expectations could dampen the guests experience and leave a bitter taste in guests’ mouths.

Hotel Equipment & Refurbishment Finance with AFA The constant requirement for property improvements in the hotel market is essential but it can also be expensive. you to improve your property without having to part with your hard earned capital. accommodationfinance.com.au 1300 287 178

ACCOMMODATION FINANCE AUSTRALIA

30

MANAGEMENT

ResortNews | April 2020

In order for managers to stay up to date with these market trends and continue to meet consumer expectations, property and lot owners are often locked in a constant refurbishment and renovation cycle. Whether this be smaller projects such as door handles, soft furnishings and lighting fixtures, or larger changes such as bathroom remodels, re-flooring and the renovation of communal spaces.

The cost of these projects can often place a financial strain on owners, who may experience lost revenue due to down time.

While the end result often drives a higher room rate and better occupancy rates, the process of undertaking the refurbishment can be daunting.

As such, one of the most important considerations is timing. Regardless of whether it is one room in a management right property, or the entire building, timing can have a significant impact in mitigating the short-term financial loss and maximising long-term ROI. Firstly, planning renovations during quiet seasons or slow periods for your property is typically the best approach.

Lower guest numbers mean that closing rooms is less likely to impact occupancy rates and lessens the likelihood of turning away guests. Further, rooms are likely booked at a lower room rate during these periods, meaning that if you do have to turn away guests the potential lost revenue is reduced.

Economies of scale for suppliers and labour means that owners may be able to save a little money. Importantly, this also aids in keeping a consistent offering throughout the property, rather than just having one or two refurbished rooms.

Finally, it always crucial to consider elements that may impact your project but are out of your control. Seasons with typically heavy rain or potential flooding could halt renovations, as well as natural disasters such as fires or cyclones.

Keep in mind the possibility of environmental factors when planning your project timeline.

There is never a perfect time to undertake a refurbishment or complete renovations, however taking into consideration how timing can impact the timeline, cost and ultimately ROI of the project will help make the decision easier.

If owners are struggling to raise capital or concerned about the potential loss of revenue during a refurbishment, debt finance is a solution which allows owners to retain their capital whilst still being able to add value to their property or lot.

ŠLiliia - stock.adobe.com

A second consideration is

aligning renovations of multiple rooms within management rights properties. While it is not advised to close all the rooms within a property at once, effectively taking it off the market and doing rooms in blocks of five to ten (depending on property size) can help ease costs.

April 2020 | ResortNews

MANAGEMENT

31

The highs and lows of electricity supply in high-rises

By Trish Riley, Editor

With significant population growth experienced over the past two decades and a high rate of growth expected to continue in coming decades, the government is promoting urban consolidation planning policies to manage growth sustainably.

Multi-residential buildings are playing an important role in facilitating the increased densities that urban consolidation policies imply, but with growing energy concerns, an increased demand for IoT coupled with regulatory and planning issues, there is a growing toll on the electricity grid that could make certain types of multi-residential typologies more vulnerable to power surges and outages.

Eric O’Brien, director of Queensland Power Protection says: “A power surge is a sudden increase of voltage that significantly exceeds the standard 120-volt flow of electricity that normally enters a building or home, and as it shoots through the lines it can cause tremendous damage to electronics and appliances, potentially impacting on the safety of residents.

“Power surges can carry thousands, even tens of thousands

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of volts into the property’s wiring; that’s enough to destroy circuit boards, disrupt entry and exit systems and even shut HVAC equipment down permanently.

Even if the tech isn’t turned on, it could end up damaged.

“In seconds, it can burn out all appliances in the kitchen, fry the motherboards on home computers and take out the power switches throughout the property.

It can even start a fire, leaving tens of thousands of dollarsworth of damage in its wake.”

However not all power surges are alike. How they impact a property depends on what causes the surge in the first place.

The most familiar source of these surges is probably lightning, and while there are far more strikes than most people are aware of, it's actually one of the least common causes. When lightning strikes near a power line, whether it's underground, in a building or running between poles, the electrical energy can boost electrical pressure by millions of volts. This causes an extremely large power surge that can overpower almost any protective device.

A more common cause of power surges is the operation of large electrical devices, such as elevators, air conditioners and refrigerators. These high-powered pieces of equipment require a lot of energy to switch on off

components like compressors and motors. This switching creates sudden, brief demands for power that upset the steady voltage flow in the electrical system.

Other sources of destructive power surges include faulty wiring, downed power lines, rodent damage, switching between stations and even solar power feeding into energy grids. The system of transformers and lines that brings electricity from a power generator to the outlets of a building is extraordinarily complex. There are dozens of possible points of failure, and many potential errors that can cause an uneven power flow.

While these surges are nowhere near the intensity of a lightning surge, they can be severe enough to damage components – immediately or gradually – and they occur regularly in most building's electrical systems.

Most people would have experienced a ‘brown out’; when lights dim or flicker, indicating some form of power disturbance.

In most cases one doesn’t realise that they are happening but the fluctuations in voltage generates heat and the ultimate degradation of power devices and wiring.

“In today's system of electricity distribution, power surges are an unavoidable occurrence and it’s important that bodies corporate have surge arrester systems in place to protect all the circuits

MANAGEMENT

in the building from a range of voltage surges,” says O’Brien.

“Operating on the same principle of smaller consumer devices, these arrester units are generally installed near the electric meter or main switchboard, where the power lines run into the building.”

A typical surge arrester has both a ground terminal and a high-voltage terminal. When a powerful electric surge travels from the power system to the surge arrester, the high voltage current is sent directly to the insulation or to the ground to avoid damaging the system.

Better surge arrestors can handle surges up to 20,000 volts, while standard outlet surge protectors can't handle more than 6,000 volts.

Some high-end arrestors even monitor weather conditions and will shut down the power supply to more sensitive electronics when lightning is in the area.

While referenced or utilised infrequently, it is also possible to capture the occurrence of a voltage surge as some arresters are equipped with ‘surge counters’ that capture the fact that the arrester has discharged current.

It is also possible to use other phenomena (sound measurement, light measurement, electric field measurement, etc) to capture the occurrence of a discharge. Surge counters provide an indication of the frequency of surges, and therefore need for what protection devices may be required.

ResortNews | April 2020

Are you at risk?

As managers and owners of structures designed specifically to house or accommodate people, a ‘duty of care’ for the safety and wellbeing of our tenants and guests is paramount.

Similarly, sudden damage or destruction of the devices and systems that enable the maintenance of this ‘duty of care’ can deliver a sharp and devastating blow to customer satisfaction and business reputation.

Queensland Power Protection (QPP) staff have met many owners and managers eager to tell of their experiences dealing with the damaging impacts of a Direct Lightning Strike to their building, or a nearby ground strike to their electrical and connected systems.

The stochastic nature of Lightning, however, tells us that the regularity of strikes April 2020 | ResortNews

your duty of care? Maybe your building has a lightning protection system already, how do you know?

If you definitely know you have a system in place, can you be sure it meets the requirements of the Australian Standard? If it isn’t up to standard, and you sustain some damage, or worse, a tenant/guest is injured or killed, can you still demonstrate a duty of care?

and their potential impact is impossible to predict.

considerably less probable, but it does happen.

This makes risk management challenging. It’s a probability game, and the applied logic is fairly rational; the taller/ larger the structure is, (and considering its geographical location/characteristics) as compared to its neighbouring structures, the more likely it is that it will be the structure hit by an imminent direct strike.

So how do you know if you’re at risk of a direct strike? Maybe your building has already sustained some damage as a result of a direct (or ground) strike, or in your own opinion, given its location, height, size, and/or other perceived vulnerabilities, it is likely to be hit at some stage.

A direct strike to a smaller neighbouring structure is

Do you wait for something to happen before you assess the risk? Are you exercising

MANAGEMENT

QPP have the Lightning Protection expertise you may need. We have designed installed, and certified systems large and small all over Queensland and NSW.

• • • •

Direct Lightning Strike Protection Uninterruptible Power Supplies Hard Wired Surge Protectors Plug in Surge Protectors

To book a site assessment please call 1300 795 160 or visit www.qldpp.com.au

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©Thicha - stock.adobe.com

alarms, access and security systems and air-conditioning would cease to operate if power was disconnected to neighbourhoods, as it has been during instances of rising flood waters. Lack of access to buildings and dwellings, lack of safety, lack of building security, and lack of thermal comfort affected many residents whether or not their buildings were actually subjected to inundation, with some buildings rendered uninhabitable for a prolonged period.

Buildings being developed and built today generally have surge arresters and counters specified as standard inclusions and that all risks are managed, but in older buildings – those built 20 to 30 years ago, surge arresters have to be retrofitted.

Building arrestors typically suppress power surges stemming from outside sources – utility company problems, transformer switching, etc. – but don't guarantee suppression of the high number of power surges that originate inside individual residences when large appliances like air conditioners and refrigerator motors turn on and off, or even if there are copper phone lines in the building.

“Unfortunately, the impact and risks attached to the damage or shutdown of vital equipment such as elevators, card reading systems, intercoms and even fire systems is generally only recognised once there has been an incident and there is a need to ensure it doesn’t happen again, or the insurance company declines a claim based on poor maintenance and/or risk management,” says O’Brien.

“With everything else that needs to be maintained, bodies corporate and resident

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managers of buildings may not be aware of the risks that they may be carrying by not having the appropriate protection devices in place; and perhaps even more so if they have the equipment in place but it is not properly maintained. It goes without saying that these concerns elevate significantly where there is the risk of someone being hurt.”

So how do residents living in a high-rise environment protect their own devices?

Surge protectors, power strips and even some UPS (Uninterruptible Power Supply) create a good first line of defence against internal fluctuations that may occur within a home and are a good way of protecting electronics against small voltage spikes. These surge protectors effectively divert the excess power into the ground wire.

It’s important however, to choose power strips with adequate surge protection. The joule rating indicates how much power the surge protector can handle before collapsing under a power surge. The higher the number, the better. Some surge protectors are only good for one power surge. Others can be used repeatedly with some minimal maintenance. In most homes,

a rating of 600 joules is a good start, but when trying to protect pricey or invaluable electronics, much higher protection is recommended; at least in the neighbourhood of 2000 joules.

This high number not only protects personal devices, but also gives one access to a warranty that most power surge manufacturers include with their higher-end products. These surge protectors need to be plugged in directly into the wall outlet, and each plug needs to be directly plugged into the device in order for maximum effectiveness and protection in case you wish to claim some damaged equipment under the included warranty.

A word of caution however, in a lightning storm, one should try not to rely solely on a surge protector to save one’s appliances; the best protection is to unplug them.

An article on the impact of power surges within high-rise buildings would not be complete if it didn’t also address the more significant impact of a total blackout and debilitating dependence that certain types of apartment buildings have on mains electricity.

Building services such as lifts, running water, fire

MANAGEMENT

Electricity blackouts can result from a number of man-made or natural causes, including shortages caused by demand exceeding supply, and highlights the vulnerability of energydependent buildings to power outages and investigates options for energy security for occupants of multi-storey buildings and makes recommendations to increase resilience and general liveability in multi-residential buildings in the subtropics through design modifications.

While events like these may not always be controllable, having a clear, well-rehearsed emergency management plan for power outages in one’s apartment is something every body corporate can—and should do.

“When the power is out, it’s usually at night, and the management office is closed,” says O’Brien. For that reason, property managers' contact information needs to be available to all residents, and there needs to be a 24-hour phone number where a management person can be reached.

In addition to that, every building person needs to know what to do in case of an emergency blackout. “Everyone should know the plans,” O’Brien adds.

“And while bodies corporate meetings don’t tend to be well attended by the building residents as a whole, everyone who calls the building home needs to know the procedure, too. This can be explained to them when they move into the building and can be reinforced to them via letters and postings.

“Step one would be reporting the outage to the electrical company, so that they can start working on the repair immediately. It’s easier to do this if the board has the pertinent contact information in ResortNews | April 2020

In an unprecedented move, Queensland politicians have voted to close the state borders, effectively barring the movement of all non-essential travel from interstate.

Premier Annastacia Palaszczuk said the state's border would only remain open to freight and essential travel after announcing the restrictions on border crossings. She isn’t saying exactly how, but Queenslanders must take the new measures seriously.

"Unless you're returning home to Queensland or coming to Queensland for an essential purpose like work or a medical appointment, or freight issues, then the border is closed to you," Ms Palaszczuk said.

That means families are barred from packing up the car and hitting the road, going camping or heading to the beach. “We want to send a clear message to people to stay in their state and stay in their suburb,” Ms Palaszczuk added.

their phones so that they don’t need to go fishing around for this in the dark. Most electrical companies have apps now, that allow anyone to report outages from their phones, and receive notification via their phones as soon as the outage is restored.

“The second thing that all residential buildings need to do to be prepared for a possible blackout situation is to make sure that the emergency lights in the stairways work,” says O’Brien.

April 2020 | ResortNews

Tourist haven Rottnest Island, off the West Australian coast, will be turned into a quarantine zone for Australian cruise-ship passengers amid the escalating coronavirus epidemic.

“There are no school holidays.

Let me make it very clear, Queenslanders should stay in Queensland, people in New South Wales should stay in New South Wales and people in Victoria should stay in Victoria.

The island off Australia, made famous by a nocturnal marsupial called a Quokka, will house some 800 Australians from stricken cruise liners for a mandatory 14-day isolation when they arrive, state Premier Mark McGowan said. All foreign nationals and crew will remain onboard until arrangements can be made to fly them out of the country, he told reporters Wednesday.

"We do not want people coming to Queensland to have a holiday break. This is not holiday break season. This is the season to stay at home with your family.

Two other ships, the MSC Magnifica and MV Artania, are currently at anchor off Fremantle and passengers will not be allowed to disembark unless for life threatening medical emergencies, McGowan said. The Magnifica returned to Fremantle after Dubai denied it entry, while the Artania, which was allowed to arrive to refuel, has 25 passengers and crew reporting respiratory illnesses, he said.

"The chief medical officer has advised that there are serious health issues of people coming from other states to Queensland.

"That’s a problem, because if we have people who are coming here, who have the coronavirus, we do not have the resources to spend on contact tracing all of those people and checking up on where they are staying under a 14-day so quarantine."

Passengers are being stranded on boats sailing around the world with more nations refusing to allow them to dock as an increasing number of confirmed cases can be traced back to cruise ships.

McGowan fears a rapid spread of the coronavirus after authorities in Sydney allowed passengers to leave the Ruby Princess while tests were being conducted among a group of people that reported flu-like symptoms on board. Since then, infections from the boat have reached 133, while more than 20 cases can be linked to two other ships that also docked in Sydney.

The boats account for about a quarter of Western Australia’s infections, McGowan said.

“I will not allow what has happened in Sydney to happen here in Western Australia,” he said. “We’re exercising the Rottnest Island option now to protect the safety of Australian passengers and to protect the west Australian community from any possible transmission from this cruise ship.”

Source: Bloomberg

Queenslanders are now also being blocked from hanging out publicly and in groups of more than two in a move to comply with Australia’s strict new social shutdown policies.

Source: ABC News

©Ruth P. Peterkin - stock.adobe.com

Which leads him to his next point.

“If you live in a community-title property, every resident should have flashlights,” he says. And that’s not just for the stairways.

Most hallways have sconces, and if the power goes out, those don’t work either. Since there aren’t usually windows in the hallways, it’s pitch-dark there too.

“Those with disabilities need to take this one step further.

In order to figure out what should be in this basic disaster supply kit, those with physical

limitations or disabilities should take an inventory of what they use daily to live independently— such as assistive technology, diabetic supplies, hearing aids, batteries and supplies for a service animal.”

Another surprising problem when a blackout occurs? “In some buildings, you need a key fob to get into the door, and in an outage, there is a high chance that they won’t work.

If your building is experiencing a blackout and you decide to

TOURISM

go outside, it’s best to take all keys rather than just the key fob so that you can return home, even if you have to do it the old-fashioned way.”

Last but not least, residents should remember to turn off all appliances—except for a single lamp, so that they know when power has been restored. That way, they can avoid a circuit overload and another outage that may result when power is restored to all appliances at once.

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TOURISM REPORT

No more selfies: tourist island becomes quarantine zone

Queensland borders closed: Stay at home, you’re not welcome

What you need to know about handling money, food and more

It causes a range of signs and symptoms, or none at all. It can spread easily from person-toperson, and can be coughed into the air and onto surfaces.

Viruses only replicate inside a living cell - outside the cell, they’re on a path to either infect us, or their own destruction. How long a virus survives outside a cell varies.

Researchers found COVID-19 remains infectious in airborne droplets for at least three hours.

This doesn’t mean infected humans produce enough virus in a cough to infect another person, but they might.

We think the virus also spreads by touch. Hard, shiny surfaces such as plastic, stainless steel, benchtops, and likely glass can support infectious virus, expelled in droplets, for up to 72 hours. But the virus rapidly degrades during this time.

On fibrous and absorbent surfaces such as cardboard, paper, fabric and hessian, it becomes inactive more quickly.

How can we reduce risk from surfaces and objects?

Frequently touched surfaces are all around us. Benches, handrails, door handles – they are in our homes, on our way to work, school, play, shop, and every other destination. There’s a risk of contaminating these surfaces if we touch them with virus-laden fingers, and a risk we’ll contract the virus from such surfaces.

Think of your hands as the enemy. Wash them well, and much more often than usual.

Between hand-washing, avoid constantly touching the mucous

36

membranes that lead to your airways. Basically, try not to rub your eyes, pick your nose, or touch your lips and mouth.

Taking precautions through small actions We’re already seeing engineering initiatives to help combat the virus’s spread. In Sydney, pedestrian crossings have been automated so people can avoid touching the buttons. To slow the spread of COVID-19, assume everything outside your home is potentially contaminated, and act accordingly. So don’t touch your face, sanitise frequently while you are out, and wash your hands and clean your phone once home. While it’s best to stay home, keep these tips in mind if you must leave the house.

Going shopping Grocery shopping requires touching surfaces and items, including trolleys and baskets.

Sometimes sanitiser or antibacterial wipes are available for hands and handles at the store entrance - but they’re often not, so bring your own (if you can get some). It probably doesn’t matter what type of bag you use, but have a plan for how to avoid bringing the virus into your home.

Making payments Cards and cash could transfer the virus to your hands. That said, card payment is probably lower risk because you retain the card and don’t have to touch other people. But wherever possible, contact-free bank transfers would pose the least risk.

Handling and eating fresh and canned food COVID-19 is inactivated at temperatures well below those required in the process of canning food, so canned food is free of it. For freshly packaged food, risk depends on whether the person doing the packing was sick or not. If you are concerned, stick with food that can be cooked, peeled or washed in mild soapy water,

©Christian Horz - stock.adobe.com

Like the other 200 or so respiratory viruses we know of, severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), the new coronavirus, infects the cells of our airways.

and thoroughly rinsed. While evidence is weak, we know soap and water should inactivate the virus on food - but this will work better on foods with a shinier, harder outer surface, compared to foods that have been cut or have softer surfaces, such as strawberries and raspberries. If you decide to wash any food with soap, make sure all the soap is removed.

At the park Avoid equipment that is likely used a lot, including play equipment and water fountains. It would be safer to kick a ball around or play on the grass, rather than use swings. Sandpits hold horrors other than COVID-19.

Takeaway and deliveries When getting takeaway food, or for businesses offering it, avoid plastic containers and use more fibrous materials such as cardboard, paper and fabric for packaging. Researchers found no infectious virus after 24 hours. Also, avoid proximity to servers and delivery people, and opt for contactless delivery whenever you can.

Public transport, escalators, elevators and bathrooms Frequently touched hard, shiny surfaces such as lift buttons and handle bars in trams are a big

TOURISM

risk, more so than fabric seats, or taking the stairs. Even the most high-tech overseas surface cleaning efforts are intermittent, so you’ll need to take responsibility for yourself. Also, after using public bathrooms, wash your hands well.

Calm and calculated It’s important to be calm, realistic and not focus on single events or actions once you step outside. You can’t account for everything.

Think more about the risk of the entire task rather than the many small risks encountered during the process. A silver lining in taking such precautions is that you’ll also reduce your risk of catching the flu this season.

For items that are hard to clean, sunshine may be valuable. Leave your shoes outside, soles up, in the sun.

Coronaviruses begin degrading quickly in temperatures higher than 56 degrees Celsius, and in direct UV light.

Ultimately, the best ways to avoid COVID-19 infection are primitive ones - sanitise your hands and stay away from others. Physical distancing remains the most effective measure to slow the progression of this pandemic.

Source: The Conversation

ResortNews | April 2020

©Viacheslav Lopatin - stock.adobe.com

TOURISM INTERNATIONAL

The end of global travel as we know it: An opportunity for sustainable tourism March 14, 2020 - The day we will always remember from here on out as "The Day the World Stopped Travelling" – the words of Rifat Ali, head of travel analytics company Skift.

That’s a little dramatic, perhaps, but every day since has brought us closer to it being reality.

The COVID-19 crisis has become the global travel industry – “the most consequential industry in the world”, says Ali – is in uncharted territory. Nations are shutting their borders. Airlines face bankruptcy. Ports are refusing entry to cruise ships, threatening the very basis of the cruise business model.

Associated hospitality, arts and cultural industries are threatened. Major events have been cancelled. Tourist seasons in many tourist destinations are collapsing. Vulnerable workers on casual, seasonal or gig contracts are suffering.

It seems an epic disaster.

But is it?

Considering human activities need to change if we are to avoid the worst effects of humaninduced climate change, the coronavirus crisis might offer us an unexpected opportunity.

Ali, like many others, wants recovery, “even if it takes a while April 2020 | ResortNews

to get back up and return to precoronavirus traveller numbers”.

But rather than try to return to business as usual as soon as possible, perhaps COVID-19 challenges us to think about the type of consumption that underpins the unsustainable ways of the travel and tourism industries.

Dubrovnik. The need for growth becomes self-perpetuating as tourism dependency locks communities into the system.

Tourism dependency

In a 2010 paper it was argued that the problem was that tourism is underpinned by what sociologist Leslie Sklair called the “cultureideology of consumerism” – by which consumption patterns that were once the preserve of the rich became endemic.

Air travel features prominently in discussions about reducing carbon emissions. Even if commercial aviation accounts “only” for about 2.4 percent of all emissions from fossil-fuel use, flying is still how many of us in the industrialised world blow out our carbon footprints.

Tourism is embedded in that culture-ideology as an essential pillar to achieve endless economic growth.

For instance, the Australian government prioritises tourism as a “supergrowth industry”, as it accounted for almost 10 percent of “exports” in 2017-18.

But sustainability concerns in the travel and tourism sectors extend far beyond carbon emissions.

Out of crisis comes creativity

In many places tourism has grown beyond its sustainable bounds, to the detriment of local communities.

The over-tourism of places like Venice, Barcelona and Reykjavik is one result. Cruise ships disgorge thousands of people for half-day visits that overwhelm the destination but leave little economic benefit.

Cheap airline fares encourage weekend breaks in Europe that have inundated old cities such as Prague and

Many are desperate to ensure business continues as usual. “If people will not travel,” said Ariel Cohen of California-based business travel agency TripActions, “the economy will grind to a halt.”

COVID-19 is a radical wake-up call to this way of thinking. Even if Cohen is right, that economic reality now needs to change to accommodate the more pressing public health reality.

It is a big economic hit, but crisis invites creativity.

Grounded business travellers

TOURISM

are realising virtual business meetings work satisfactorily.

Conferences are reorganising for virtual sessions. Arts and cultural events and institutions are turning to live streaming to connect with audiences.

In Italian cities under lockdown, residents have come out on their balconies to create music as a community.

Local cafes and food coops are reaching out with support for the community’s marginalised and elderly to ensure they are not forgotten.

These responses challenge the atomised individualism that has gone hand in hand with the consumerism of travel and tourism. This public health crisis reminds us that our well-being depends not on being consumers but on being part of a community.

Staying closer to home could be a catalyst awakening us to the value of eating locally, travelling less and just slowing down and connecting to our community.

After this crisis passes, we might find the old business as usual less compelling. We might learn that not travelling long distances didn’t stop us travelling; it just enlivened us to the richness of local travel.

Source: The Conversation

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THE LAST RESORT

The Mouse’s House Rainforest Retreat:

Simply Enchanting

By Trish Riley, Editor

The word “retreat” has never been so important… or quite so prevalent. But if the thought of escaping life’s daily stresses and losing yourself in an enchanted forest is appealing, then The Mouse’s House Retreat, located in the mystical Springbrook mountains is definitely for you.

Ideal for couples, families with children or a small group of friends wanting a special getaway, this luxurious boutique retreat is a hidden gem ensconced in the Gold Coast hinterland and within a world heritage listed national park.

Located at an altitude of 850m above sea-level and deliberately camouflaged among the cool, leafy forests, The Mouse’s House offers 14 bespoke wooden chalets that ooze charm and comfort.

iPhone docking port, and stainless steel kitchen appliances. There is also a multimedia console for instant movies on-demand from the 130+ library, a Sony PS3 console Complimentary PS3 games available on request and a DeLonghi coffee machine 'Dolce Gusto' to top it all off.

There are also three open-plan, hexagonal shaped chalets designed just for couples and featuring a 'jetty' leading out to a private rock pool and hot tub. These chalets feature a spacious queen bedroom and ensuite bathroom.

Combined with large welcoming fireplaces, good old-fashioned home-cooked meals, and real conversations, the

accommodation is cosy and intimate and ideal for romantic couples, honeymooners or nature lovers. And just because they are private chalet in the rainforest doesn’t mean that guests are cut off from modern day conveniences.

The retreat offers free high-speed wifi and the complimentary use of a chalet iPad Mini. Each chalet is equipped with a HD LCD TV, Blu-Ray DVD player, stereo system, clock radio with iPod/

With names straight out of a children’s fairy tale book like Cinderella, Prince Charming, Snow White and all of the seven dwarfs, each chalet is unique in character and beautifully appointed. They all feature South-East Queensland hardwood timber, hand-crafted furnishings and luxurious fittings including leather lounge suites, sumptuous rugs, luxury linen, bathrobes, ecotoiletries and electric blankets.

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Steeped in nature, the spacious verandas and outdoor areas offer breathtaking views where one can breathe in the the beauty of the towering brush box trees, gentle cascading streams, song of native birds and the haunting call of nocturnal animals.

For those needing more than sheer tranquillity and relaxation, The Mouse’s House Retreat also features a half-size tennis, a huge Swedish oak-timber hot tub, traditional Finnish cedar-timber sauna, mountain, tandem or electric bikes and a plunge-pool for the brave.

In the last 40 years since opening their doors in 1978, The Mouse’s House Retreat has stayed the same – offering invaluable simplicity and the chance to experience a peace and quiet that soothes the soul. The rainforest is truly enchanted and within an hour of arriving you will feel any stress disappear, replaced with peace, tranquillity and a feeling of being at one with nature.

The Mouse’s House Retreat is located just 30 mins from the M1 Highway in the middle of the beautiful Gold Coast city and the township of Mudgeeraba.

TOURISM

ResortNews | April 2020

Queensland secures 2020 Australian Tourism Awards

©maytheevoran - stock.adobe.com

Keep communicating with your customers

Premier Annastacia Palaszczuk has announced Queensland will host the 2020 Australian Tourism Awards for the first time in close to a decade.

Australian tourism’s night of nights will head to the Sunshine Coast in February next year.

“This industry is a cornerstone of our economy. It’s important we celebrate everything that makes Queensland the best destination in the world.

“Coronavirus, floods and fires have taken their toll.

Our tourism operators are struggling – they need all the support they can get.

Tourism Industry Development Minister Kate Jones said “Tourism supports one in 10 Queensland jobs. It’s the perfect place to host this annual celebration.

“Bringing the best in the business back to Queensland gives us a great opportunity to showcase what we have to offer,” she said.

“Sunshine Coast is a key growth market for tourism in Queensland.

Queensland Tourism Industry Council CEO Daniel Gschwind welcomed the announcement.

“Tourism is everywhere, not just in our capital cities but in regional and remote parts of Australia, particularly April 2020 | ResortNews

in Queensland,” he said.

We are thrilled to bring Australia’s tourism leaders to one of Queensland’s most spectacular regions for the 2020 Australian Tourism Awards.

“Novotel Sunshine Coast Resort played host to the Queensland Tourism Awards in 2019, next year we put the destination in the national spotlight.”

Sunshine Coast Events Board Chair Maya Gurry welcomed the announcement.

“Hosting the Qantas Australian Tourism Awards is highly coveted by tourism destinations across Australia, as it provides the opportunity to raise the profile of our region and showcase our capabilities to the best of the tourism industry,” she said.

“In addition to promoting our region to the more than 850 tourism industry leaders who attend this gala event, we will also see an estimated economic injection of $1.3 million into our local economy.

Your online presence is now more important than ever.

Keep posting great content on social media to remind your customers you are still there and waiting for them when they can travel again. Remember, your message should include the need to stay safe now, but encourage dreaming about the next holiday. Video is also a great tool and Instagram, Facebook and LinkedIn all offer live streaming services.

Share your stories of resilience and innovation

ladies were able to talk about the difficult situation the industry (and in fact the entire country) is experiencing, as well as get other’s perspective.

Marisa used the opportunity to reiterate that WIM is a support network for every member and that we are all in this together.

“Tough times never last, but tough people do,” said Marisa.

“We will all get through this - hold on tight, it’s definitely going to be a ride.

APPOINTMENTS SCA VIC CEO appointed

Travel media and journalists are still looking for interesting travel content. So, while consumers can’t travel at the moment, many businesses are adapting their offering and providing virtual and online tourism experiences to keep their consumers engaged. If you have any stories about how your business is innovating in the time of coronavirus, please send them through to internationalmedia@ tourism.australia.com

Strata Community Association (SCA) VIC has welcomed new CEO Maree Davenport, who was appointed late 2019.

COVID-19 curtails WIM lunches

She has an extensive history with SCA VIC, having previously been engaged as a lobbyist and advocate during the 2006 OC Act implementation and on various other matters up to 2011.

Despite being hesitant to continue with the March WIM luncheon event, organiser Marisa Millane said she had a few members reach out saying that they needed the lunch (and escape) more than ever.

“I’m really happy we did as the

Ms Davenport is a former member of the Victorian parliament (1996-2002) and since 2004, she has been principal/company director of Phoenix Public Affairs, specialising in representing peak bodies, NFPs, government departments and statutory authorities.

Peter Scott, SCA VIC president said he is delighted to welcome Maree on board.

Source: Associations

“The awards were last hosted in Queensland in 2011 and we are thrilled that the State Government through Tourism and Events Queensland and the Queensland Tourism Industry Council have such high confidence in the Sunshine Coast’s ability to deliver an outstanding tourism industry gala.”

Source: Tourism and Events Queensland

EVENTS & APPOINTMENTS

39

©Андрей Яланский - stock.adobe.com

What is the strata industry’s role if Australia is set to achieve net-zero carbon emissions by 2050?

Australia’s aim to be a net-zero carbon emitter is still very much in question.

As an election promise, Albanese says it’s within the party’s reach to make it happen.

If the Morrison government agrees to a substantial reduction, it’s likely to be met by relying on carryover climate credits.

Regardless of the debate on either side of the political grandstand, what does net-zero by 2050 really look like and what role does the strata industry play in helping us get there?

by actively removing carbon dioxide from the atmosphere by planting forests and using carbon removal technologies.

3.

Improve building health and enhance buildings with sustainability plans

4.

Decarbonise our lifestyles by phasing out things like plastic

Advocating netzero emissions The eight most important changes that need to happen for Australia to lock in net-zero emissions:

5.

Move to electric vehicles, including public transport

6.

Stop deforestation and promote forest planting

1.

Phase-out coal

7.

Reduce food waste

2.

Invest in renewable and clean energies

8.

Utilise sustainable water techniques

Supporting sustainability through government partnerships All buildings, residential and commercial, impact the environment. In fact, buildings use 40 percent of the world’s energy, emit 40 percent of the world’s carbon emissions, and use 20 percent of the word’s available drinking water.

While it will be easier for some industries to transition as compared to others, resident

First, what does net-zero emissions really mean? ©promesaartstudio - stock.adobe.com

Net-zero means humangenerated greenhouse gas emissions will be balanced by removing greenhouse gases from the atmosphere, becoming carbon neutral.

Here, Australia’s carbonintensive economy would shift to renewables, reducing things like fossil fuels– coal and natural gas–and therefore reducing human emissions to almost zero.

While any remaining greenhouse gas would be balanced out

40

DEVELOPMENTS

ResortNews | April 2020

managers sit in a unique position. Through programs such as the government’s National Australian Built Environment Rating System, or NABERS, bodies corporate and resident managers can introduce customers to one of the most important elements of reducing carbon emissions: retrofitting buildings and introducing sustainability plans.

Making a difference starts at “home” – driving momentum from a community level For bodies corporate and resident managers, the focus is on our customers and how programs like NABERS for Apartment Buildings can help them. We all like to think that everyone wants to partake in programs that help the environment, but often there needs to be a motivator in order to get people over the line.

A NABERS for Apartment Buildings rating helps owners and committees save money and improve their property value. Using a six-star scale and detailed report, NABERS benchmarks strata properties against similar buildings on the Australian market showing where the building can improve on operational value, sustainability and costs.

April 2020 | ResortNews

Business fifty-fifty on virus impact

NABERS, while currently only compulsory for commercial buildings, will eventually become compulsory for residential buildings too.

Bodies corporate and resident managers have the power to help shift Australia to become a net-zero emitter by helping committees and owners see the value of creating truly sustainable buildings.

“Modernising” community-title management by championing a more sustainable future

Half of Australian businesses experienced an adverse impact from COVID-19 even before social distancing according to the Australian Bureau of Statistics.

PICA Group’s CEO, Wayne Walker, says committees and owners see a lot of value in resident managers who can guide them and their building down a pathway to a more sustainable feature.

“It saves them money, increases the value of their building, and makes owners and committees feel like they are being proactive in a space that needs action.

“Part of being a great strata manager isn’t just dealing with the day-to-day, it’s about dealing with the long-term health and well-being of a building and making sure the building and the committee are future-ready.”

Prior to phase 1 social distancing measures 49 percent of businesses were fairing worse, although that amount is expected to move to 86 percent as government measures increase and the coronavirus spreads.

Accommodation and food services bore the brunt of Covid-19 with 78 percent recording negative impacts and 96 percent expecting it to get worse.

Meanwhile the least impacted by the virus were businesses in professional, scientific and technical sectors with only 21 percent affected; electricity, gas and water supply were 34 percent; and mining was only 37 percent.

Source: PICA

©Olivier Le Moal - stock.adobe.com

Acting as a tool to increase sustainability and reduce overheads, NABERS is a system that enhances building value by making the low-carbon emission building attractive to prospective buyers and renters, and by reducing operating costs.

Thankfully, all state governments within Australia support the target for Australia to become a net-zero carbon emitter by 2050. Which is why we will see an increasing emphasis on programs such as NABERS.

A reduction in local demand was the most common problem experienced by 82 percent of the businesses surveyed and was also the most common impact expected to get worse.

activity was likely to fall sharply across advanced economies in the first half of 2020 and will recover slowly with consumer demand.

“We now expect G20 real gross domestic product to contract by 0.5 percent in 2020, followed by a pickup to 3.2 percent growth in 2021.

“In November last year, before the emergence of the coronavirus, we were expecting G20 economies to grow by 2.6 percent in 2020.”

Globally, many authorities were adopting important policy measures such as income guarantees and regulatory forbearance in an effort to reduce the risk of simultaneous defaults weakening financial stability.

“We expect policy measures to continue to grow and deepen, as the consequences of the shock in terms of depth and duration become clearer,” Moody analysts said.

Despite the impact of COVID-19 only just hitting the Australian market, the uncertainty surrounding the economic outlook has already caused multiple ASX-listed companies to withdraw their guidance for the 2020 financial year.

Of impacted businesses, more than a third had experienced staff shortages and 59 percent expected to experience staff shortages in coming months.

However other businesses are adapting to altered consumer demand including alcohol distilleries who have started the production on ethanol for hand sanitiser.

Moody analysts said business

Source: Urban Developer

DEVELOPMENTS

41

Sales Report MANAGEMENT RIGHTS Gold Coast Runaway Royale

BNW Properties Trust Pty Ltd Runaway Bay

MRS

Sanctury Palms

Daniel Lee & Reagan Murphey Tugan

RB

Albatross North

Ross & Jackie Given

Mermaid Beach

RB

Jefferson Court

Fiona Stagg

Upper Coomera

RB

Coomera Landing

Colin Troyahn

Upper Coomera

Meadow Peak

Patty & Michael Wright

Carrara

RB TMR

Brisbane Chester & Ella

Aurora Asset Management Newstead

RB

Benhiam Boulevard

Cindy & Jeffery Yeh & Jan

Calamvale

RB

RMS

Sunshine Coast / Wide Bay / Fraser Coast Noosa River Retreat

Geoff & Kate Arscott

Noosaville

The Rhythm

Direct Hotels

Maroochydore

RB

Mid City Luxury Suites

Philip McKimm

Cairns City

RB

& Roy Vandermeer

North Queensland

New South Wales Evolve

Andrew Dyson

Tweed Heads

MRS

Victoria Melbourne Village

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

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RB

MOTELS & OTHER Queensland Chinchilla White Gums Motor Inn

D&K Blackwood

Chinchilla

TB

Matilda Motel

A. Torres

Bundaberg

TB

Ayr Backpackers

David Esler

Ayr

RB

Black Diamond Motel

Manh Duong

Blackwater

RB

Collinsville Motel

Andrew Steele

Collinsville

RB

Riviera Motel

Danny Johansen

Bundaberg

RB

Quest Liverpool

Fahim Javaid Malik

Liverpool

RB

Tweed Heads

RB

New South Wales

Best Western Kennedy Drive Airport Motel Brian Hickey

Victoria Wedderburn Goldseeker Motel

Barnes

Wedderburn

TB

Ballarat Colonial Motor Inn

C. Hong & I. Huang

Ballarat

TB

Apartments @ Glen Isla

John & Maureen Batson

Cowes

RB

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 42

West Melbourne

www.accomproperties.com.au PROPERTY

ResortNews | April 2020

NEW OPPORTUNITIES

ID 8492 BEACHSIDE LIVING

• No set hours • Great Currumbin location • Mixed letting of 32 lots

ID 8976 SHORT TERM LETTING - TOOWOOMBA

• Single operator • 3 bed, 2 bath residence • You won’t be disappointed

NETT PROFIT:

$300,437

ASKING PRICE:

LISTING BROKER:

Tony Johnson – 0433 335 679

$2,129,000

ID 8167 LOCATION & LIFESTYLE

• Sunshine Coast • Prime position • Well managed resort

NETT PROFIT:

$300,000

• Easily managed • 11 x 2 bed units • Adjacent to hospital

• No requirement to live onsite • Low workload • No set hours

NETT PROFIT:

$127,790

ASKING PRICE:

LISTING BROKER:

Tony Johnson – 0433 335 679

ID 8529 BOUTIQUE MANAGEMENT RIGHTS

• 25 in the letting pool • Long agreement in place • A must to inspect

• In the heart of Coolum • No office hours • 10 in the letting pool

ASKING PRICE:

NETT PROFIT:

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• Easily operated by one • Tastefully renovated residence • Perfect first time business

$105,000

ASKING PRICE:

Lyn Pearsall – 0425 168 244 LISTING BROKERS: & Amanda Rowe – 0427 413 319

LISTING BROKERS: Lyn Pearsall – 0425 168 244 & Amanda Rowe – 0427 413 319

ID 8978 OFF THE PLAN

ID 8501 BEACHFRONT SURPRISE PACKAGE

• Brisbane southside • Opposite shopping centre • Close to schools

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$550,000

$725,000

• Clifton Beach - Cairns • 12 in the letting pool • Building recently painted

• 2 bed, 2 bath residence • Low maintenance grounds • Enjoy a seaside lifestyle!

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ASKING PRICE:

LISTING BROKER:

Tony Johnson – 0433 335 679

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

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www.accomproperties.com.au

MANAGEMENT RIGHTS RESORTS

MERRIMAC

SURFERS PARADISE

CARETAKER. NEW COMPLEX. LIVE OFFSITE

PERMANENT ON MAIN RIVER

New 25 year Management Rights Agreement. Body Corporate Salary of over $55,000 (ex-GST) per year.

Option for the purchaser, at their discretion, to accumulate a letting pool should they hold a Real Estate Licence. Manager’s accommodation offers 4 bedrooms. No need for manager to live on site. All 42 townhouses have spectacular views. A short drive to first-class educational facilities, including ‘All Saints Anglican School.’ Looking for a brand-new house with stable income from the Body Corporate? Then this is for you!

Prime main river frontage and just three apartments per floor this boutique permanent residential high-rise enclave will impress any buyer. Ideal for single operator, semi-retired or second income.

Easy to maintain neat grounds, sparkling pool and mega secure storage. Two bedroom manager’s apartment has sublime river outlook from every angle. Stroll to light rail, the beach, cafes and restaurants. A small rental pool, no holiday letting, contactable hours, generous remuneration of $64,000 and pro-active and supportive Body Corporate Committee completes the rosy picture.

NETT $55,000 PRICE $905,000

NETT $82,000 PRICE $792,000

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

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

WELLINGTON POINT

SURFERS PARADISE

SOLID BRISBANE BAYSIDE OPPORTUNITY

CARETAKING ONLY – $400K P.A. PLUS!

A great townhouse complex in a popular, family friendly location. Five minute drive to Birkdale Fair, close to the waterfront and King Island recreation areas. Excellent schools nearby, including Ormiston College and Redlands College. Very steady rental demand with many long term and repeat tenants. 21 years remain on agreements with a positive Body Corporate relationship. And the Caretaking and letting operations can be comfortably operated by one person. Manager’s residence is a spacious stand-alone 3-4 bedroom, home with double garage and office attached on title.

Premium caretaking business that can be foreseeably managed by an experienced full-time, two-person team. Real estate components included. Attractive Body Corporate salary of over $400,000 p.a. (ex GST) with yearly CPI increases. An impressive residential building with all the resort-style facilities expected of a complex of this calibre. The incoming management team will be spoilt by the separate and extensive office facilities that are on title and are included with the manager’s spacious 3-bedroom apartment. Only experienced operators need apply for further information.

NETT $115,000 PRICE $1,067,000

NETT $400,000 PRICE $3,100,000+

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

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

propertybridge.com.au | 1800 888 518

April 2020 | ResortNews

45

Waterford on Main Beach

just 30 seconds away from a sunset stroll, an early morning walk on the beach or surf.

By Trish Riley, Editor

Word on the street is that the imposing, stepped tower presiding over the exclusive Main Beach ocean front, with riverfront access at the rear, shares more than just its name with the worldfamous Irish crystal.

With shards of glass-like tones accenting the building, Waterford on Main Beach represents the finest level of quality, and according to resident managers, Emma and

46

It is also one of only two buildings in Main Beach that has not only beachfront but also riverfront access where one can have a boat or jetski moored out the back.

Emma and Damien Felsman

Damien Felsman, rumour has it that once upon a time one of the finest pieces of the iconic flint glass craftmanship held pride of place in the foyer‌

this 29-storey property. With

True or not, there is no getting away from the grandeur of

and Skyline to Coolangatta,

spectacular panoramic views: to the East - Beach and Ocean, to the North - the Broadwater, to the south Surfers Paradise Beach Waterford on Main Beach is

PROFILES

The facilities at Waterford on Main Beach are wide ranging.

A heated pool and spa are set among landscaped gardens featuring a waterfall, and the pool area has sun loungers available for sun bathing. There is also a tennis court, steam room, barbecue area and picnic tables.

ResortNews | April 2020

Having just celebrated their first business anniversary in the building, Emma and Damien’s enthusiasm for management rights is infectious.

“We’ve had our fair share of trials and tribulations,” says Emma, “but overall it’s been a very positive experience.”

So how did two accountants working within television companies in the UK end up in management rights in Australia?

“We met in the UK through work,” says Emma. “We got married here in Australia and returned to the UK, but we always wanted to return to live in Australia and did just that. We were both working as financial controllers for companies in Brisbane and despite wanting to get into our own business, we never found a concept that we loved enough.”

An industry shift, the choice to initiate redundancy and their shared desire to both be in a business that offered flexibility so they could be available for their five-year old daughter Octavia, spurned the change.

Intrigued by the business model of management rights, Damien initiated what can only be called one of the most thorough investigation and preparation plans I have ever heard of.

Damien undertook to retrain; obtaining his full real estate license and attending a body corporate course. They also joined ARAMA, went through the MRITP training and networked diligently at all industry events, which is where Damien met Shane Corbett, resident manager of Oxygen Apartments in Brisbane.

In a bold move, Damien offered to ‘intern’ at Oxygen at no charge if Shane would teach him the ropes. For nine months – and still to this day - Shane acted as business coach and mentor, teaching Damien the ‘ins and outs’ of running a 200-apartment building.

“The experience with Shane has been invaluable,” says Damien. “He has always been very supportive and we credit much of our experience to his guidance.”

the beginning,” says Emma.

“We were familiar with the location; it’s perfect for Octavia’s school and we love the proximity to Tedder Avenue and the opportunity to be ‘trackside’ during the GC600 races. We also have a site that holiday-makers love.”

The transition from corporate to management rights appears to have been seamless so I ask about the assignment process. Unsurprisingly, they were well prepared.

“We appreciate that some managers buy with a five-year exit plan in mind,” says Damien.

“We decided upfront that we are in this for the long-term. We

expect to raise Octavia here and are looking to grow the business.

“We asked all the hard questions regarding asbestos, cladding, concrete spalling and so on, and believe that the body corporate were appreciative of our approach. We understand that management rights is not always easy, but we’re both hard working and don’t mind that it’s not a 9 to 5 job.

“We were also lucky enough to have had a fantastic handover with former managers’ Ross and Lily who still live on site, so it’s like having a security blanket.”

Not everything has gone without a hitch however.

The Property Bridge team are honoured to have brokered the purchase of ‘Waterford on Main Beach’ for Damien and Emma Felsman.

The indomitable couple’s mantra of “prepare, prepare, prepare” extended to their search for the right property.

From the outset they were very clear about what they were looking for – even going as far as to map the variables of the properties they were seeing – and the moment Waterford was listed, they applied.

We have pleasure in welcoming Damien and Emma to the industry, both of whom bring outstanding attributes to their business.

“Waterford felt right from

info@propertybridge.com.au propertybridge.com.au 1800 888 518

April 2020 | ResortNews

PROFILES

47

Damien and Emma had only been in the role for two weeks when the building was hit by a lightning strike and they lost the entire booking system. Panicked phone calls and a visit from an IT specialist resulted in the recovery of all of the information and they ran the property off a small personal laptop until things could go back to normal.

“We learnt the hard way that back-ups are very important, and that if you can, electrical devices should be unplugged,” says Emma (See page 32 for our feature on power surges) When asked about their plans for the property and business, Emma responds: “During the first year you spend so much time learning

the building, getting to know suppliers, contracts, catching up on maintenance and building relationships.

“This next year we’d like to focus on upgrading the outdoor facilities and developing a robust marketing plan that drives direct bookings. We have a lot of return guests but we would like to increase occupancy without

being reliant on the OTA’s.”

“Obviously, every property is experiencing unforeseen difficulties due to the virus, but Queensland, and the Sunshine Coast and Gold Coast in particular, is well placed to recover once this is over. We have strong holiday seasons and we look forward to being able to get back to normal.”

In a perfect world “The buying/selling process of Waterford on Main Beach to Emma and Damien Felsman was unlike any I have experienced in my long career in real estate, or 15 years selling management rights,” says Rhonda Perkins, sales consultant with Property Bridge.

Rhonda has a reputation for understanding a client's specific requirements and guiding them to their dream business, as well assisting sellers to a smooth, stress free settlement, but even she says that this transaction was unusual.

And Rhonda should know.

Her knowledge of locations, value, property types, pricing, building styles and exceptional

48

and were committed to doing everything right.

Everything I asked for was done or provided immediately.

“Certainly, Damien’s commitment to be adequately prepared by affiliating himself with ARAMA and training with a respected resident manager in Brisbane three days a week has stood them in good stead.

L-R Rhonda Perkins with Damien and Emma Felsman

understanding of the market stems from her long-term involvement and a sincere interest and perspective gained from the personal experience of having owned and operated five management rights businesses herself since the early 1980's.

“From the moment Damien enquired I realised this buyer was going to be different

from most,” says Rhonda.

“The management rights sales process is traditionally complex but this one was really straightforward.

“Damien and Emma were the most organised buyers I have ever had – they were motivated, had done their research and training upfront

PROFILES

“They were able to demonstrate a high skill level to the body corporate so the assignment process was seamless, and as we advise with all transactions, have ensured that the relationship between the seller and themselves has remained positive.

“It’s gratifying to see our valued clients excel, and feel the energy and professionalism Damien and Emma have brought to the role. Every complex and our entire industry needs people like them.”

ResortNews | April 2020

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April 2020 | ResortNews

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ResortNews | April 2020

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