Resort News, May 2020 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 285 | May 2020 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

The Emerald, Surfers Paradise:

Hope and healing properties

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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Dennis Clark

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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 May 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: Flight or fight? The industry reacts .... 03

INDUSTRY Special Report – Management rights during coronavirus: Look for a silver lining ................................ 04 Person of Interest – Trevor Rawnsley ............................. 08 ARAMA Report .........................................................................10 State Report ...............................................................................11 SCA Report ................................................................................12 BCCM Report ............................................................................13 MANAGEMENT Legal Ease...................................................................................14

By All Accounts ........................................................................15 Motel Market .............................................................................16 Thinking MR...............................................................................18 Good Governance .................................................................. 20 Intonet ........................................................................................ 22 Hyigene ........................................................................................24

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 Mandy Clarke, editor@accomnews.com.au STAFF WRITERS Rosie Clarke and Trish Riley DESIGN & PRODUCTION Richard McGill, production@accomnews.com.au ADVERTISING Stewart Shimmin, advertising@accomnews.com.au

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!

DEVELOPMENTS:

New Manager Profiles .......................................................... 32 AccomProperties Sales Report ........................................ 32 PROFILES

KEY

Suppliers share their views in one-off, topical pieces

EVENTS & APPOINTMENTS

PROPERTY

CONTRIBUTORS Andrew Morgan, Arvo Elias, Col Myers, James Nickless, John Mahoney, Jonathan Hanaghan, Lynda Kypriadakis, Michelle Scott, Mike Phipps and Trevor Rawnsley.

Commercially funded supplier profile or supplier case study

Development News ............................................................... 29

SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au

Supplier information or content

TOURISM

38 FRONT DESK

The Emerald: Hope & healing properties…… ................ 38 PREFERRED SUPPLIERS The Preferred Supplier Directory ..................................... 42 ResortNews | May 2020

The industry reacts It has been a rollercoaster for tourism news this month, culminating in the looming collapse of Virgin Australia as the commercial airline heads into voluntary administration following COVID-19’s financial onslaught. Australian Tourism Industry Council (ATIC) Executive Director Simon Westaway said the dissolution of Virgin Australia “represents a further significant challenge for Australian tourism facing off against the already massive impacts of the COVID-19 pandemic and previously the summer bushfire crisis.” It’s a historic but “difficult moment for Australian aviation and for thousands of airline personnel and many associated businesses that will be severely impacted.

Tourism Accommodation Association CEO Michael Johnson, who said: “There are very real fears an airline monopoly would take away the competitive edge needed to ensure corporate, conference and leisure guests are well catered for in our key recovery markets.

Mandy Clarke, Editor editor@accomnews.com.au Those obviously also include in tourism,” he noted. “These are the most challenging of times. The uncertainty around what level of future lost volume of flights and seat capacity that came from a second airline group is obvious in its negative impact.” Many industry shakers were visibly shaken by the news, including

“Initially, as we eventually move out of the COVID-19 crisis, the hotel sector will be heavily reliant on domestic tourism, with international borders expected to be closed for many months. Accommodation hotels in regional destinations in particular such as Cairns are heavily reliant on both Virgin and QANTAS and the existing competition between both. The last thing they need is for a national carrier to collapse.” Australian Tourism Export Council Managing Director Peter Shelley added: “While international visitor arrivals are some time away, the

industry is holding its breath and waiting for the day Australian's can start to travel domestically. Without affordable and accessible domestic air routes tourism's hopes for recovery will be bleak.” Although we find ourselves in unchartered waters, faced with the stark possibility of a domestic travel monopoly; I cannot help but feel like the aviation sector will come out on top. As of writing this, bidders have lined up to snatch VA’s scraps, including two of Australia’s biggest companies, Wesfarmers and Macquarie Group. Could this bidding war actually diversify the flight duopoly we been governed by until now? Much remains to be seen but I believe the tourism industry should stay in fight mode as the end is not yet nigh! Enjoy this issue and stay safe.

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May 2020 | ResortNews

hotelinteriors.com.au • 1300 876 055 FRONT DESK

EDITOR'S NOTE

Flight or fight?

SPECIAL REPORT

MANAGEMENT RIGHTS DURING CORONAVIRUS:

Look for a g n i n i l r e v sil

By Mandy Clarke, Editor

March 2020 will be forever known as the month the world stopped travelling due to COVID-19. But we at Resort News are ‘cup half-full people’, so we have been on the look-out for opportunities, ideas and resources for operators during this time. Despite the uncertainty and struggles we all now face, we hope you will join us on this journey as we take stock, plan to scrap a lot of plans and rethink how we go about business. While there are tough times ahead, it’s important to hope for positive change that will create more sustainable tourism and a more resilient economy for our future! In an industry that has recently lived through one crisis after another, including mass bushfires, a pandemic, stranded cruise ships, border closures, travel bans, grounded aircrafts, mass unemployment, a barely functioning accom sector, it’s hard to consider what a silver lining might look like. But it is not impossible. British economist John Maynard Keynes, said: “Ideas shape the course of history.” He is considered as the founder of modern macroeconomics and suggested that it is the ideas we come up with in the face of economic disaster that write history. So, from this pit of despair we now find ourselves in, with lonely days and low occupancy ahead, perhaps it is time to brainstorm.

Money worries At the time of writing this report, the Australian Government has unveiled over $320 billion worth of rescue packages to support businesses and individuals suffering from economic devastation in the wake of COVID-19. While some of us are still falling through the cracks, many of you and your staff will now be eligible for financial support. Seek advice from your accountant and financial advisor to ensure you apply for the correct entitlements and use social media – Tweeting Centrelink might get you a swifter response than a six-hour phone wait-time. We have heard from some

INDUSTRY

ResortNews | May 2020

small operators with concerns they have been left out of these entitlements. However, the government has been evaluating and updating the guidelines and industry bodies are advising members to be persistent and keep pressuring your local representatives to include you in their schemes. Tony Rossiter, director of Holmans Taxation & Accounting, advised members during a recent ARAMA Education Webinar that the two stimulus packages most relevant to our industry are the Cash Flow Boost and JobKeeper. He pointed out that these packages were put together very quickly by the government in response to the crisis, so advisers have been “playing catch up” to work out and confirm the intricacies. Eric van Meurs, resident manager of Atlantis Marcoola and Chairman of Tourism Accommodation Sunshine Coast, reminded both ARAMA members and non-members about the importance of communication and getting together as a group and to support other MR operators, connecting and sharing what you are going through is vital. “We will find innovate ways through this” and “we need to be prepared for a tsunami of visitors after this”. Mark Small is resident manager at Bel-Air on Broadbeach and ARAMA Gold Coast president. He explained that after the initial shock and fear for his business he realised how much support there was available from the government for small business. He told the ARAMA webinar that the JobKeeper payments have been key to his business, and he has been able to deploy

Assess your business

staff on this scheme to do those jobs that would not normally get done.

This is a good time to assess the past performance of your business and look at ways to re-invent, reorganise, and regroup for the short-term and long-term future. If you rely on international travellers, you now need to think about how to attract more local and domestic guests as they will be vital to tourism recovery later this year.

Here is the rundown on what financial support you are entitled to at this stage: The Cash Flow Boost package depends on your PAYG, and “you either qualify or you don’t”, according to Mr Rossiter. If you do, you will need to access it through the tax office.

Short term action Offer credits for cancelled bookings.

JobKeeper is a package aimed to keep businesses who have full or part-time employees afloat throughout the crisis. It is for those businesses who have suffered at least a 30 percent loss in income due to COVID-19. The payments amount to $1500 per employee per fortnight and are confirmed to last until September 27, 2020. Employees must have been employed on or prior to March 1, 2020 to qualify. For sole traders, small business partnerships, small family trusts and especially ‘mum and dad’ operators who do not have employees, there is welcome amendment to eligibility on the JobKeeper payment. If you are in this position, Mr Rossiter notes: “You can nominate an eligible business participant to access the JobKeeper.” Only one person can be nominated but it is better than nothing. Operators are encouraged to have frank discussions with their banks about their finances. Ask about be deferral of mortgages or loans. It is in no-one’s best interest for your business to fail because of the pandemic. In his Resort News column this month, Mike Phipps provides some advice for those entering discussions with their banks and financial advisors, so do check that out for more insight.

reduced fees. Eliminating and reducing outgoings can add up substantially and help mitigate financial stress. If you feel reluctant to make these kinds of requests, remember everyone is in the same boat and the government is advising that these types of negotiations take place. If suppliers can make arrangements with you now, they are more likely to retain your business in the long-term, so it is in their best interest too.

Management Rights Transactions Damian Quinn

One of the Sunshine Coast’s most experienced firms in on-site management rights transactions.

Negotiate with your suppliers Everyone should communicate with their suppliers, including utility providers, agents, etc., and ask for fee reductions or prolonged interest-free grace periods. Foxtel has stopped in-room charges and in some cases internet providers have significantly May 2020 | ResortNews

The general advice from ARAMA is to keep your business open for bookings but not for leisure stays and you should not promote leisure travel until after the travel warning has ended. The key date for a decision is May 19 so stay tuned for updated advice on this date. For now, you can accept bookings made after May 19 with the agreement that they may be cancelled if restrictions remain. It is not a resident manager’s job to police guests as to why they have booked, but you do have a duty of care and should not encourage or promote leisure stays.

• Commercial & Business Law • Litigation & Dispute Resolution • Wills & Estate Planning

• Property Law • Retirement Villages • Body Corporate

SUNSHINE COAST & QUEENSLAND WIDE

Damian Quinn (07) 5443 5266 www.simpsonquinn.com.au INDUSTRY

•

Clean or revamp your environment. Redo signage.

Some operators have already come up with creative ways to get heads-on-beds, offering rooms for use as ‘home away from home offices’ to locals, charging by the hour or day and including things like coffee, lunch and cleaning services. You may attract guests who need or want to self-isolate away from home or provide accommodation for essential workers.

•

Refresh your online brand. Update your website and build up a social media presence. Have you heard of TikTok? Try it out! Make online content that will attract guests. Everyone is online right now so there is no better time to get eyes on you.

•

Update your processes, risk assessments and management procedures.

•

Investigate your local area and check out what your competitors are doing.

•

Update and review your SEO. Don’t know how? Upskill. Find free resources online to learn about SEO and other helpful marketing strategies.

•

Join webinars! Many industry bodies and businesses are offering a range of helpful webinars that are free. ARAMA have been hosting a weekly Q&A Zoom webinar to members throughout the COVID-19 crisis. ATEC (Australian Tourism Export Council) are also offering Webinars and Road to Recovery Tourism Tutorials.

Other operators have opened holiday apartments for longer term lets with some unit owners just happy to have a regular income over the next few months, although caution has been advised when entering into a let agreement longer than 90 days. Our Accom Properties portal allows residential managers to access a professionally managed Sales and Rentals platform with access to all the leading marketing sites at significantly reduced rates over this period. So, check that out if you are looking into this option for your accom business. The message to all residential property managers is to communicate with owners, bodies corporate and tenants, as rent reductions may need to be negotiated over this time. Tenants have to prove significant financial impact to negotiate rent reductions, however, so try not to panic at the thought of a rent moratorium. REIQ raised concerns about lack of fairness to landlords when the Palaszczuk Government launched the Special COVID-19 Protections for Residential Tenants and Owners legislation on April 9. The government quickly tried to quash landlords’ fears by clarifying there is no blanket rent waiver for tenants.

©vchalup - stock.adobe.com

SPECIAL REPORT

Novelty bookings you can market

Are you struggling to cope? Reach out for help today. These are national 24/7 crisis support services: • Lifeline: 13 11 14 www.lifeline.org.au • Suicide Call Back Service: 1300 659 467 suicidecallbackservice.org.au • MensLine Australia: 1300 789 978 www.mensline.org.au • beyondblue: 1300 224 636 www.beyondblue.org.au

The department of health Head to Health page provides Australians with trusted information and digital supports to help support everyone's mental health and wellbeing during this pandemic. Mental health organisations, experts and leaders have also collaborated and launched #InThisTogether – a national conversation that everyone can join in on, sharing practical tips online to support the mental health and wellbeing of Australians during COVID-19.

and smaller operators including camp sites, rural and beach-side resorts, will be targeted by local travellers looking for staycationtype experiences. Smart operators must be prepared for this, so be ready to market your business and showcase what your property has to offer local guests.

and Melbourne may struggle a while longer due to the higher rates of COVID-19, so these providers should keep putting pressure on their representatives to push for stimulus eligibility and look into business guest ‘working from home’ or selfquarantine hotel options.

In the long term

In the medium term

Slightly longer term, talk of a travel agreement between New Zealand and Australia has been confirmed by New Zealand Deputy Prime Minister, Winston Peters and Australian federal tourism minister, Simon Birmingham. They predict that Australia’s ban on international travel will likely continue until the end of the year but restrictions on travel between the Australian and its sistercountry may have some wiggle room. Mr Birmingham said that in terms of travel, there “might be a little bit to New Zealand”.

Accom providers should be among the first wave of business types to rebound from this crisis. Once border restrictions are lifted, indications show that Australians will be desperate to travel. Noone likes to be stuck at home

If this Trans-Tasman bubble does happen, thousands of New Zealanders will flood back to their favourite Aussie holiday spots, which is great news for resorts up and down the coast. City providers, particularly in Sydney

Nonetheless, it’s a given that many landlords will need to reduce rents to attract and retain tenants. The old adage, ‘treat others how you’d like to be treated’ comes to mind as we are all now pressed to enter these negotiations with clients, suppliers, landlords, agents and tenants on some level.

Align with John Maynard Keynes: ideas will be the way forward and we must rebuild a better industry for a brighter future. Take advantage of this time to work on what you can control. Complete projects. You know those jobs you never had time to do? Without guests and with your remaining staff on JobKeeper this is a good time to get tinkering, finish odd-jobs and reflect: •

Search for ways to make your business more efficient.

•

Build relationships with your neighbours, body corporate, tenants. Now is a great time to support each other and get to know each other. Be kind and receive kindness.

INDUSTRY

Finally, stay away from social media coronavirus updates. Any information you need about stimulus and regulations, you can find on the government Coronavirus app or from your industry representatives. We also curate the advice and relevant news for you on our AccomNews website every Monday and Thursday. Updating Facebook every five minutes to check the latest stats and death rates from around the world can have a detrimental impact on mental health and lots of it is misinformed anyway. Please remember it is normal to feel down, depressed, anxious or restless during this time. We are in a pandemic, after all! While there are lots of things we can do to keep ourselves busy, stay positive and future-focussed, don’t feel pressured into being super productive. It’s perfectly okay to bundle up and watch Netflix for an afternoon or bake some bread. Take care of yourselves, your families and remember that you have a support system in your local community and also here at Resort News. ResortNews | May 2020

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PERSON OF INTEREST

Still life with Trevor

Trevor and wife Kate “digging it” with Elton John

INDUSTRY

ResortNews | May 2020

By Mandy Clarke, Industry Reporter

function and even thrive if we don’t let fear take over.”

Friendly, trusted and steadfast are three words I would use to describe Trevor Rawnsley, the CEO of Australian Resident Accommodation Managers Association (ARAMA), but when I ask Trevor to give me three words to describe himself he fires back with a chuckle “bloody good bloke”. Absolutely, he is!

He says: “I can’t fault the government’s response to COVID-19. However, I do think people will be ‘bursting out of the gates’ to go on holiday when lockdown is lifted. I would like to see domestic and New Zealand borders open as soon as it is safe to do so, and I am confident this will offer MR resorts many great opportunities and a bright future.”

I am interviewing Trevor “remotely” at what you would consider a ridiculously safe distance. Thanks to COVID-19, I am in level four lockdown in chilly Oamaru, New Zealand and Trevor is working from home on the sunny Gold Coast. We start off the interview by agreeing that this is just as much of an uncertain and scary time for both of us, personally and professionally as it is for the whole industry. However, in usual Trevor-style he curtails any anxiety, “but, remember, this is also a great opportunity for us all to stop, take stock and move forward in a better position”. This is exactly what Trevor does best, he listens, carefully considers, and communicates. He exudes calm reassurance, wise words and has an ability to point you in the right direction. For many years, whenever the management rights industry has been hit hard, Trevor has always been a steady anchor guiding us through. By us, I mean both MR operators and Resort News too. During our conversation, I was stunned to learn that Trevor is also a nerd with a quirky sense of humour, who loves sci-fi and fantasy. Yes, Trevor is not only our ARAMA rock, he is also a dedicated Game of Thrones fan and a Star Wars connoisseur. His favourite book is the weird and wonderful, Still Life with Woodpecker by Tom Robbins and like all bloody good blokes, he loves the legendary Elton John.

Trevor now heads up the peak industry body, representing 2500 members. After 10 years of hard work and dedication. I found it interesting that he said, “you may not always notice” what he does and that’s quite okay with him! Why? because it is exactly the ‘behind the scenes’ nature of his job that is so important. He explains: “My biggest battles have been to do nothing and, by this, I mean to keep the very well written original MR legislation exactly the same!” It makes sense that he admires the type of leaders “who stand at the bottom of the hill, reach out their hand and say follow me, it will all be okay”. That is exactly the sort of leader Trevor is. He told me: “I work hard to make sure that the MR laws are NOT changed for the worst. The Government reviews all laws every seven years and the MR Industry always seems to be under attack from attempts to water down the legislation in the interest of consumers but to the detriment of MR operators. “My role is to advocate for a business model that’s not always popular, and so it is my priority to protect MR laws, with a deliberate

strategy to keep the laws same, for the benefit of this business. “ARAMA members may not always recognise the extent of our work, because we cannot always reveal our strategies. However, I am very privileged to work with very clever lawyers to serve this industry and to protect a business model that has been consistently under attack from proposed legal changes.” When he begins to discuss the biggest threat, the industry has ever seen - COVID-19 - Trevor admits he was rocked by the news. He says he will remember the exact moment he realised the extent of the pandemic on Friday, March 13, just as clearly as he remembers the news of the death of JFK, Princess Di and John Lennon… “It is a pivotal date and it will change everything, but I am predicting May 19 will be another pivotal date, when we can hopefully re-start a brighter future.” Trevor as always, sees the “sunny side” and tells me: “In the words of Harry S. Truman 'America was not built on fear. America was built on courage, on imagination, and unbeatable determination to do the job at hand.' I believe that our industry will survive,

Away from work, Trevor is a dedicated family man who values spending time with his wife, children and grandchildren. “Home and family are where my heart is.” Although he is happy to work from home, Trevor likes nothing better than to meet up with colleagues and friends over a coffee or lunch, enjoy a productive chat, a good yarn and best of all a hearty laugh. In true Trevor spirit, he insisted I end the interview with a thank you to Resort News for giving a voice to the MR industry for over 20 years and, more recently, for developing Accom Properties, offering support to ARAMA members. But I would like to end on something else!

How about a few lines from Trevor’s favourite book? There are two kinds of people in this world: Those who believe there are two kinds of people in this world and those who are smart enough to know better.

Professionally, he comes from humble beginnings. He left school at 15 to work in a retail store and went on to become one of the top retail experts in his field. A chance meeting led him to management rights where he became an operator and part of the group who formed, what became, ARAMA. May 2020 | ResortNews

What is Trevor’s ethos? “I heard something a long time ago that stuck with me. You know the saying, ‘Treat people the way you want to be treated’? It should be re-written to say, ‘Treat people how they want to be treated’. The later version entirely changed the way I communicate with people, especially those who have oppositional views to me. I’ve learnt that everyone has a point of view and everyone wants to be liked, so I try to deliver my message how they will best receive it, rather than how I would want to receive it.”

- Tom Robbins, Still Life with Woodpecker You're better equipped for this world than I am," she said. "I'm always trying to change the world. You know how to live in it. - Tom Robbins, Still Life with Woodpecker INDUSTRY

ARAMA REPORT

Your role in the triangle of management While some body corporate (or owners corporation) committees are viewing the current environment as a timely opportunity to bring forward planned renovation works, others are watching cash flow closely.

Any professional service provider in the management rights industry will tell you that there is no single playbook for effectively navigating the current health and economic crisis, because there is no single problem. Every scheme is different with its own unique challenges. However, with intimate knowledge of community title schemes and their various stakeholders, there is no better time for resident managers to

this “triangle of management” now and into the future. A resident manager’s role within this relationship can set the tone of the building. In a time of uncertainty, people are seeking clarity and reassurance - and no one is better positioned to offer this than the on-site manager with their depth of operational understanding and experience. Trevor Rawnsley, CEO, ARAMA

show their true value in working with committees to provide advice and options that are in the best interests of the complex. Effective working relationships with the body corporate committee and body corporate manager are critical in doing this – and the current environment presents resident managers with the opportunity to strengthen the foundations of

They are not only working with committees to provide caretaking services, but they are also dealing with owners, residents and tenants who may be experiencing financial hardship with concerns about paying levies, mortgages or rent, respectively. Now is a golden opportunity to demonstrate the benefits of management rights in effectively serving the interest of all stakeholders. Experienced operators are working with the committee to diagnose current and future issues and offering solutions to navigate them in the best interest of the complex. Their ability to provide strategic advice in testing times is reflecting of their essential role in the complex. Considering the current environment, this might mean identify cost efficiencies, facilitating the timely and accurate dissemination of information, or escalating renovation works while the complex experiences a quiet period or closed common areas.

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

Making decisions that are ‘best for building’ will go a long way towards building good relationships with key stakeholders – and your reliability and commitment to the complex now will translate into integrity and trust for years to come. Importantly, resident managers have to visibly demonstrate to committees, owners and residents the value they are providing at this time. This is an area even the most experienced operators have found challenging in the past, but which is so important. It has been encouraging and rewarding to see how we have successfully come together as an industry to support each other and to watch this translate into stronger stakeholder relationships. In the last two months we have seen a sharp rise in memberships which is reflective of our industry’s eagerness to learn, develop and continue to play our important role in community tile schemes – and I encourage everyone to continue to tune in to our weekly webinar series. As we emerge from this crisis, I have no doubt that the management rights industry will have far greater visibility in the tourism and accommodation sector and that the role of resident managers will be stronger than ever.

QLD - NSW - VIC - WA

For membership enquiries:

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

INDUSTRY

ResortNews | May 2020

On Sunday, March 29, the National Treasurer announced a number of changes to Australiaâ&#x20AC;&#x2122;s foreign investment framework in anticipation of a possible threat from cashed up foreign investors seeking to capitalise on the devastation to Australian businesses and investors by the coronavirus. These changes affect the purchase of businesses and land in Australia by an individual, company or trust that is considered a Foreign Person, as defined in the Foreign Acquisitions and Takeovers Act 1975.

What is changing? Ordinarily, a foreign person may invest in an Australian business or purchase land in Australia subject to the approval of the Foreign Investment Review Board (FIRB). The approval of FIRB is not needed however if an exemption applies. The

May 2020 | ResortNews

Col Myers, Small Myers Hughes

most common exemptions that apply are monetary screening thresholds, i.e. if the purchase price is below a threshold amount, the purchaser does not need FIRB approval. An amount of $275 million was the threshold that applied to many management rights purchases prior to these changes being implemented. Now however, until the government decree otherwise, the threshold amount is reduced to $Nil.

What does this mean for Management Rights? If you enter a contract to acquire an interest in a business or

land after 10:30pm, March 29, and you, or one or more of your investment partners is a person who does not ordinarily reside in Australia, it is now likely that you will not be able to complete that transaction until you have the approval of the FIRB. This will apply to the purchase of a management rights business, the purchase of a commercial or residential lot, and may also apply to the entering of a lease or licence for the business (including leasebacks). Any affected transactions that you enter in the near future should be made subject to obtaining FIRB approval and should give consideration to the time it will take to complete the application process.

How do you obtain FIRB consent? To obtain FIRB consent to a purchase, you must make an application to FIRB which provides details of the business and unit you intend to purchase, and also provide details of the foreign person making the purchase. There is a substantial

INDUSTRY

amount of information you need to provide with your application to enable FIRB to process it efficiently, which, depending on your circumstances, may take some time to prepare. There is also an application fee payable to FIRB, which for most management rights will be $5700.

How long does an FIRB application take to process? Ordinarily, FIRB allowed no more than 30 days to process an application. Now, however, FIRB is allowing up to six months to process an application, with priority given to urgent matters.

Will this affect you? If you suspect these changes to foreign investment in Australia will affect you, we recommend you seek advice specific to your circumstances. Liability limited by a scheme approved under Professional Standards Legislation. Disclaimer â&#x20AC;&#x201C; This article is provided for information purposes only and should not be regarded as legal advice.

ÂŠshintartanya - stock.adobe.com

STATE REPORT

Changes to foreign investment in the wake of coronavirus

SCA REPORT

Improving owner protections In these tumultuous times, it is quite easy to forget that there are still incredibly important nonCOVID-19 related matters that require attention and further improvements. Planning, strategising and seeking to constantly improve the strata sector, the quality of its building materials and building regulation framework is still critical to ensure our built environment has a better future than the currently situation we face. The past three years have seen a myriad of building defect related issues unfolding very publicly. This clearly demonstrates that much of the strata title growth of the last ten years has been detrimental to the quality of the built environment and the strataliving experience for lot owners. While the industry, suppliers and government have been feverishly reacting to the present building defect crisis, one of the agendas that SCA (Qld) has been driving is to open up the conversation to include the consumers and their trusted advisors. It is the lot owners, along with their strata managers and resident managers, that have first-hand knowledge and experience of dealing with building defects on a daily basis and the difficulties involved in seeking to rectify the many defects out there. SCA (Qld)’s advocacy work under our immediate-past President Simon Barnard, and now myself, has centred around being trustworthy, credible content experts who can assist law makers in their practical understanding of the flow-on effect of certain legislation and the often unforeseen complications of applying that blanket legislation in the strata context. There is a certain amount of complexity that surrounds bodies corporate, often referred to as the fourth tier of government, but rarely treated as such. It is heartening to see that there are some stakeholders in

We are in support of proactive initiatives to minimise, if not prevent, future defective building works James Nickless, President, SCA, Qld

the sector who aim to improve confidence in the Queensland building industry and enhance the quality of buildings for owners. We are very supportive of the Queensland Building and Construction Commission’s recent engagement with key stakeholders in the strata sector and the wider real estate and property development industry, which we see as a critical step towards improving the building industry. SCA (Qld) welcomes any and all efforts to protect people, enhance building quality, and ensure product integrity and we feel that the voice of the consumer is finally being heard loud and clear. We are in support of proactive initiatives to minimise, if not prevent, future defective building works such as: •

Continuing professional development for contractors;

•

Providing more accessible information and education to contractors and building owners in relation to their rights and responsibilities;

•

Improving building records management and document handover processes to building owners;

•

More effective regulation and compliance systems for building design and certification;

•

More efficient and collaborative building inspection regimes and a streamlined, cost effective and reliable dispute resolution process.

However, there is also need for tougher penalties for breaches (including compensation of affected owners), with escalating consequences for repeat offenders. There has to be recognition that the statutory insurance scheme as it currently applies is grossly inadequate and must be changed to restore confidence in strata titled buildings. Additionally, there is a pressing need to review the statutory insurance scheme and amend it to cover buildings of three storeys and higher. Without coverage under the QBCC statutory Home Warranty Scheme, the discovery of defects places many bodies corporate in a highly uncertain position, where their only option in the case of defects is pay large sums of money to fix the defects and then to take expensive legal action in an effort to recover the rectification costs. I believe that altering the statutory insurance scheme to include strata buildings over this arbitrary three-storey limit would be a sensible move allowing for owners to be better protected. Of additional benefit would be increasing the six-year six-month deadline for defect claims to ten years, thereby granting consumers extra time to discover these defects, which are often latent and take years to present themselves. Consumers have been at the receiving end of many of the Regulations around improving safety as they found that to comply with new regulations there is often a cascade of actions that must be done to eventually get the desired

INDUSTRY

outcome. This is often experienced by owners as an increase in their obligations and costs instead of an increase in their rights. Of course, one of these examples is the Cladding Regulation that came into effect in 2018. Improved processes for collecting and maintaining important development and construction documents, at the time of inception, would place owners in the best spot to proceed with legal action if that became necessary. A more streamlined and cost-effective building defect rectification process would help owners by providing more options to recoup costs and fix problems that were not of their own doing. SCA (Qld) has long advocated for prevention rather than punitive and reactive methods to enhance the quality of buildings in Queensland. We believe a more proactive approach between industry stakeholders and the government would result in laws that prevent some of the issues further down the track. Consultation is the key to finding solutions and what better way than to make use of the many non-profit professional and industry associations that are fuelled by passionate and enthusiastic content experts. As the peak industry body, SCA (Qld) will continue to represent the community and use our expertise to ensure that the strata residents of the future do not rue the actions of the current regulators. ResortNews | May 2020

BCCM REPORT

FAQs: What you need to know

about body corporate insurance Q1. What type of insurance must the body corporate have?

Q6. Who pays the excess and who makes the decision?

The body corporate must have insurance for common property, body corporate assets, public risk and building insurance (depending on the plan of subdivision).

For events affecting only 1 lot, the owner of the lot is liable to pay the excess, unless the body corporate decides it is unreasonable in all the circumstances for the owner to bear the liability.

Q2. My lot doesn’t share a wall with another lot in my community titles scheme, can I take out my own building insurance? If your scheme is registered under a standard format plan of subdivision and you do not share any common walls, you are responsible for insuring your own building. However, the body corporate can set up a voluntary insurance scheme to insure buildings that do not have common walls (in a standard format plan). It is not essential that all owners participate, but those that do must tell the body corporate the replacement value of the building and must comply with the decision to set up the voluntary insurance scheme, and the policy. They must also pay their part of the premium. If your schemes are registered under a building format plan of subdivision, the body corporate must insure the buildings regardless of whether there are any shared walls or not. Q3. What does the building insurance need to cover? The building insurance must cover damage to the building caused by an insurable event such as fire, explosion or storm and other costs to reinstate the insured buildings (e.g. professional fees and costs for removing debris). Under the insurance policy the property must be returned to new condition. The body corporate can take out extra building insurance for things like floods. A motion to do this would have to be passed by ordinary resolution at a general meeting. May 2020 | ResortNews

If the event affects 2 or more lots, or 1 more or lots and common property, the body corporate is liable to pay the excess, unless the body corporate decides it is reasonable for the excess to be shared between all or some of the parties.

Michelle Scott

Commissioner, Body Corporate & Community Management

Q4. How do we work out how much each owner contributes to the insurance? This depends on the survey plan that your scheme is registered under. Under a building format plan the share of insurance is based on the interest schedule lot entitlements. In a standard format plan, and if the body corporate has had to insure buildings with a common wall, your share of the insurance premium relates to the cost of reinstating the buildings on your lot. If it is a voluntary insurance scheme in which you take part of, you must pay an amount that relates to the value of your building as a part of the total replacement value of the buildings insured under the policy and what you do on your lot and how that affects the total risk covered by the policy. Q5. An owner has made an improvement to their lot, does this affect the insurance? It is possible that an improvement made to a lot will increase the insurance premium, particularly if the fixtures and fittings are of a higher standard than the fixtures and fittings of other lots in the scheme. The owner must give the body corporate details of the nature and value of the improvement, as soon as practicable after the improvements are substantially completed.

The committee is able to make the decision about who pays the excess. Q7. My scheme is registered under a building format plan, why should I pay the excess for garage door repairs if the body corporate is responsible for its maintenance?

a particular lot; •

curtains, blinds or other internal window coverings;

•

mobile dishwashers, clothes dryers or other electrical or gas appliances that are not wired or plumbed in

•

loss of rent.

Q9. I run a business from home and store flammable materials, do I have to pay more towards the premium? What is done on your lot and how you use your lot may affect the insurance premium. Therefore, you must give the body corporate details of the use. The body corporate may adjust the contribution payable by you in a way that fairly reflects the proportion of the total risks covered by the policy attributable to the activities carried out, on your lot. Q10. How do I know who the body corporate is insured with?

The regulation module provides that under a building format plan of subdivision the body corporate is responsible for the maintenance of a door leading from a lot to common property. However, it does not specifically state that the body corporate is responsible for damage to the door.

You can ask your body corporate to provide you the details of the insurer. The information must also be provided in the notice of each annual general meeting and must include the name of the insurer, the amount of cover, type of cover (summary), amount of premium and the date the cover expires.

If the damage is covered under the body corporate’s insurance, the body corporate would generally ask the owner to pay the excess, if the event only affected their lot (see answer to question above).

Q11. A pipe behind my kitchen splashback leaked and damaged the kitchen cabinetry. The insurance covers the damage to the cabinetry but not the costs to fix the pipe or the tiles which were removed to repair it. Is that right?

Q8. Do I need landlord insurance as well as body corporate insurance? If you are leasing your lot, you may want to consider landlord’s insurance as the body corporate building insurance does not insure things such as: •

temporary wall, floor and ceiling coverings, carpets;

•

mobile or fixed air conditioning units for

INDUSTRY

Yes, the insurance only covers for an insurable event, one of which is water damage. Insurance does not pay for the maintenance or any damage caused by maintenance therefore your pipe repair and subsequent tile repairs would not be covered. For general body corporate information, contact my office on 1800 060 119 or www.qld. gov.au/bodycorporate.

©Gajus - stock.adobe.com

LEGAL EASE

Leaseback dangers

For many reasons, often expressed in articles in this publication, I have never been a great fan of leasebacks. For those readers unfamiliar with the term ‘leaseback’, it is the name given to the leases or tenancy agreements between an owner as landlord and the manager (or sometimes a company related to the manager) as tenant under which the tenant can sublet the apartment for short-term letting. As it is a lease, the owner

the short term letting of the apartment by the manager. It is often used by managers as a way of attracting to the shortterm letting pool (from which the manager can make significantly greater income) owners who are concerned about inconsistent or potentially lower returns.

John Mahoney, Mahoneys

receives an agreed rent as set out in the lease irrespective of the return achieved from

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The reservations I hold about such arrangements include potential breach of a manager's duty to a client where there is not full disclosure, a similar breach of duty (and code of conduct) if disclosure of such an arrangement is not made to other owners in the letting pool, the need for the tariffs paid by guests to be deposited to the manager's general account and not the trust account, the potential for the tariff to attract GST as the accommodation for the guest is being supplied by the manager in the manager's own right not as agent for an owner, how the income from the arrangement is treated for income verification purposes and the manager being locked into a significant financial liability should there be a downturn in the market. The coronavirus crisis has highlighted this last point with many managers finding themselves locked into significant lease commitments at a time when occupancies are virtually nil. While the Government's COVID-19 initiatives around both commercial and residential tenancies present opportunities for the manager to seek a rent reduction, waiver or deferral, there is some uncertainty how this will play out. For example is a leaseback where the parties have used a residential tenancy agreement in reality a commercial lease arrangement where the manager as tenant can

MANAGEMENT

seek relief under the commercial lease relief provisions (for which we have at the date of writing this article a code but no legislation)? Or is it what it states – a residential tenancy agreement in which case the manager must seek relief under the residential tenancy relief provisions (for which at the date of writing this article there is yet no legislation)? Without seeing the actual legislation this is a difficult if not impossible question to answer and there are, from what we have seen to date, arguments both ways. Where a manager has a good relationship with the owners it should not matter too much, and the manager should be able to negotiate acceptable rent relief. Whatever the outcome of that, it seems clear that in the future managers will be reluctant to enter such leaseback arrangements. I expect that managers will opt for some form of guaranteed return in letting appointments but with the ability to avoid or suspend the guarantee in circumstances like those in which we now find ourselves. Fortunately many of our clients who have adopted guaranteed return provisions prepared by us have been able to do just that as these provisions suspend the guarantee for any period in which the occupancy levels for the property are adversely affected due to events or circumstances beyond the control of the manager. COVID-19 is such a circumstance. Apart from the adverse impacts many managers are facing with their current leasebacks, there are for the reasons expressed above, many other reasons why managers should be looking at a different model in the future. ResortNews | May 2020

The Australian government has now passed parliament a total of $320 billion in economic support packages. Small businesses affected by coronavirus now have a range of options to receive assistance, including the $1500 JobKeeper subsidy, cash flow injections, enhanced instant asset write-off, and accelerated depreciation deductions. However, there is still criteria that must be met, such as the ‘decline in turnover test’ for employers to be eligible for the JobKeeper payments, and so it is important that businesses identify and understand the various packages and ultimately put themselves in the best position to receive support.

Identify and understand the various packages to put yourselves in the best position to receive support Jonathan Hanaghan, Jonathan Grant Accountants

was not representative of the usual or average turnover. Once a business has established that they are an eligible employer, they must identify eligible employees. Eligible employees are those who: •

Were employed by the relevant employer at March 1, 2020; and

•

Are currently employed by the employer (including those who have been stood down or re-hired); and

$1500 JobKeeper subsidy The government has introduced a $130 billion JobKeeper Payment scheme to support businesses significantly affected by the coronavirus to help keep more Australians in jobs. A subsidy of $1500 per fortnight per employee, administered by the ATO, will be paid in arrears to businesses that have experienced a downturn of 30 percent or more (50 percent for businesses with turnover of $1bn or more). A 15 percent threshold will be used for ACNC-registered charities. Most businesses will be expected to establish that their turnover has fallen in the relevant month (ending after March 30, 2020) or quarterly period (starting April 1, 2020) compared with the same period from the previous year (‘decline in turnover test’). Turnover for the JobKeeper payment is assessed in the same way as turnover for GST purposes. This means that most sales that are connected with Australia will be taken into account, although input taxed supplies such as residential rental income, interest income, dividends etc will be ignored. The ATO will also have discretion to set out alternative tests that would establish eligibility in specific circumstances, such as where a business was not in operation a year earlier, or where a turnover a year earlier May 2020 | ResortNews

•

Are full time, part-time, or long-term casuals (a casual employee employed on a regular and systematic basis for 12 months as at March 1, 2020); and

•

Were at least 16 years of age at March 1, 2020; and

•

Were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at March 1, 2020; and

•

Were a resident of Australia for tax purposes on March 1, 2020; and

•

Are not in receipt of a JobKeeper Payment from another employer.

Where the business is operated as a partnership, company or trust the entity can receive JobKeeper payments in relation to one nominated partner, beneficiary, director or shareholder who works in the business. You must pay a minimum of $1500 per fortnight to your eligible employees, withholding income tax as appropriate. The $1500 per fortnight per employee is a before tax amount. Where an employee is paid more than $1500

per fortnight, the employer’s superannuation obligations will not change. Where an employee is having their wages topped up to $1500 per fortnight by the JobKeeper payment, it will be up to the employer if they want to pay superannuation on any additional wages paid by the JobKeeper payment. To access the JobKeeper subsidy, you should talk to your accountant or adviser to assist you with the registration process and calculations.

Enhancing the instant asset write-off The government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million). This proposal applies from March 12, 2020 until June 30, 2020, for new or second-hand assets first used, or installed ready for use in this timeframe.

Backing business incentive The government is introducing a time limited 15-month investment incentive to support business investment and economic growth over the short-term, by accelerating depreciation deductions. A deduction of 50 percent of the cost of an eligible asset on installation will apply, with existing depreciation rules applying to the balance of the asset’s cost. Eligible businesses are businesses with aggregated turnover below $500 million. This applies to assets acquired after March 12, 2020 and first used or installed by June 30, 2021.

MANAGEMENT

Boosting cash ﬂow for employers As announced on March 22, the government is providing up to $100,000 to eligible small and medium sized businesses and not-for-profits (including charities) that employ people, with a minimum payment of $20,000. These payments will help business and not-for-profit cash flow so they can keep operating, pay their bills and retain staff. Under the enhanced scheme, employers will receive a payment equal to 100 percent of their salary and wages withheld (up from 50 percent), with a: •

minimum payment of $10,000

•

maximum payment of $50,000.

An additional payment is also being introduced in the July – October 2020 period. Eligible entities will receive an additional payment equal to the total of all the Boosting Cash Flow for Employers payments they have received. This means that eligible entities will receive at least $20,000, up to a total of $100,000 under both payments. Other support that has passed parliament includes temporary early release of superannuation, and the temporary reduction of superannuation minimum drawdown rates. Please visit the ATO website for further information about these measures: www.ato.gov. au/General/COVID-19/. Please note that while all topics mentioned above are now law, the government, Treasury and ATO are constantly updating their guidance on these measures, so if you require assistance please speak to your accountant or adviser as soon as possible.

BY ALL ACCOUNTS

COVID-19 stimulus and support

This topic was originally looked at in back in 2013 when comparing it against 1995, and twenty-five years on from then the fundamentals remain relevant. All the way back to 1995 I was told about the “best motel in town” that ran at an occupancy rate in excess of 90 percent. Being inexperienced I accepted that this must be a great motel operation, even though the physical presentation was poor. Going through the business’ financial data, it quickly became evident that although the motel ran at a high occupancy, the average tariff achieved was 30 percent below other similar motels in the area. The others were averaging occupancy rates of 65 percent with a room rate 30 percent higher, prompting the thought that underselling a product is not good business.

Motels A, C and E come off the rails by discounting room rates. Some of the variable costs of renting a room may include – electricity, linen, repair and maintenance (will be very high at 90 percent), and wages. There is a compounding effect with the increased number of rooms rented multiplied by an increased cost to rent those rooms all at a lower than market room rate.

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

The two types of expenses being fixed costs and variable costs can help to explain this. Some of the fixed costs of renting a room may include property rates, insurance, accounting fees, and rent (in the case of a lease). These fixed costs will always remain and will not vary whether a room is rented or not. However, the variable costs will increase the more times a room is rented. This is where

In any case, the more rooms rented the higher the profit margin for an individual motel, due to fixed costs remaining the same, therefore the gap between the breakeven point and profit level increases. However, when comparing against another with a higher room rate, the profit margin is squeezed and does not look as attractive. The table shows that Motels B, D and F are far more successful accommodation operations because the overall profit margin is much higher. A higher tariff

The below is a very simplified table showing the income for Motel B, D and F over various time periods. Each operates at a much lower occupancy rate than others, yet still show a higher profit than those underselling their rooms, based on the occupancy rates seen. The income in each time period is similar due to product underselling. That combined with the cost of renting the motel units creates the problem, ultimately reducing the value of those businesses.

and lower occupancy is preferred in sustaining a strong underlying business as opposed to relying on a budget driven clientele that will move to the next motel if the room rate was to increase by even a single dollar. The above works for this example, however, if Motel B, D and F’s occupancy rate at the nightly tariff was only 30 percent, then it would indicate that their nightly room rate was too high, and not meeting the market at the opposite end of the scale. This is on the proviso that the motel’s competitors are trading at higher occupancy rates. Motels A, C and E may be turning each room over almost every night at 90 percent occupancy and appearing on the outside to be the more successful, however the number of cars in the car park does not tell the full story and has little bearing on whether the motel is a strong and sustainable business.

©comzeal - stock.adobe.com

MOTEL MARKET

Motel car parks available

The cost to operate Motels A, C and E at 90 percent occupancy compared to Motels B, D and F’s 65 percent occupancy is high. 1995 Motel A

2013 Motel B

Motel C

2020 Motel D

Motel E

Motel F

Units

Average Nightly Tariff

$35

$50

$70

$100

$85

$115

Occupancy Rate

90%

65%

90%

65%

90%

65%

$229,950

$237,250

$459,900

$474,500

$558,450

$545,675

Unit nights rented

6570

4745

6570

4745

6570

4745

Costs to Rent a Unit

$28

$26

$40

$38

$44

$42

Total Annual Costs to Rent Units

$183,960

$123,370

$262,800

$180,310

$289,080

$199,290

Net Operating Profit

$45,990

$113,880

$197,100

$294,190

$269,370

$346,385

Annual Accommodation Income

Note the above numbers will vary with individual motel businesses. All tariffs exclude GST. Costs to rent a unit do not account for rent or loan repayments.

MANAGEMENT

ResortNews | May 2020

NOW CONNECTING WITH...

DIRECT ACCESS TO... *

COVID-19 MAY 2020 - ANNUAL MEMBERSHIP SPECIALS Unit Rentals Unlimited Listings

$220 inc. GST p.a. (Normally $440 p.a.)

(Additional Fees: Realestate.com.au $20 inc GST per rental listing)

Unit Sales & Rental Listings

$880 inc. GST p.a. (Normally $1,100 p.a.)

(Additional Fees: Realestate.com.au $120 inc GST per unit sales listing, $20 inc GST per rental listing)

For more information please call 07 5440 5322, or email mail@accomproperties.com.au * $20.00 incl GST per tennant search applies

THINKING MR

Financial advice: Matching support packages to SMEs is a moving target I remember after the GFC I said something like, wow, now I’ve seen everything. Wrong!

likewise (within the confines of their IT capabilities). Will my payments come out of my account while my application for assistance is in process?

We understand that these are challenging times. I use the term challenging because really scary and uncertain just sounds too confronting!

Depends on the bank. Some are cancelling loan repayment Direct Debits (DDs) as soon as a borrower applies.

Please know that we are here for our clients and indeed anyone who needs us. Having said that, the banks have indicated that to expedite positive outcomes they are dealing directly with broker introduced borrowers and that’s fine. If you need us to support your case and liaise with your banker, we are here. If you feel your bank is not stepping up please understand that they are not resourced for these unprecedented events and are doing their absolute best. I think it’s fair to say that no bank has built its staff, procedures and IT infrastructure on the basis of a worldwide pandemic. Here’s the latest we have albeit new announcements and government policy are making most information general at best.

What assistance can I get from my bank? •

Generic in $3m to $5m existing debt range

•

Six-month deferred repayments three months + a further three on review in some cases

•

Overdraft on a case by case basis

•

Equity access on a case by case basis

•

$5m to $10m borrowers by application

It is important to appreciate that until recently the definition of a small business (SME)

Mike Phipps, Director, Mike Phipps Finance

included lending up to $3m. The matching of support packages to SMEs has been a moving target as the government sought to find a more appropriate defining debt level. The current level is now $10m albeit the banks are approaching borrowers in different ways depending on debt level.

How do I apply? •

Many banks will have already been in touch proactively

•

CBA – automatic up to $5M for example.

•

Westpac – online or via relationship manager

•

Suncorp – Relationship manager

•

ANZ – Relationship manager

•

Bank of Qld – relationship manager – proactive

•

NAB – via relationship manager

•

Macquarie Bank – via relation manager

How long will it take? Depends on bank and demand. A fast-moving target. There are simply too many requests in bank systems to be sure. We commend the CBA for automating the process via an opt out system and encourage the banking industry to do

If I apply for assistance and a DD bounces before my loan payment deferment is approved will my bank put me into default? No. The bank will backdate the assistance package and adjust your loan accordingly.

Can I redraw advance payments? Depends on your loan terms and features.

Should I move advance payments to a separate account? The impact on advance payments (also known as redraw facilities) as a result of loan repayment deferrals and capitalising interest will have a variety of impacts depending on your lender. We think there is some risk that as interest capitalises advance payment balances (and hence funds that can be redrawn) will adjust down. If you think you will need to rely on loan redraws to get through it may be worth thinking about making those redraws now.

Are new loans being approved? Yes, but not in any great volumes. Applicants will need to demonstrate why the crisis is unlikely to impact them or borrow at a level that considers any crisis downside. We are open for business.

How are banks instructing valuers? Case by case and obviously a

MANAGEMENT

moving target. Most valuers are seeking three-year figures plus a post crisis cash flow and are attempting to arrive at a likely post-crisis value. We expect that for existing loan reviews and rollover arrangements, lenders may choose to set aside or defer new valuations.

What happens if my BC can’t pay my managers salary? With a likely spike in unemployment and rent arrears it may be that some unit owners will be unable to pay levies. In the highly unlikely event that this results in the BC salary being unable to be paid BCs can borrow or access overdraft limits to ensure essential services such as caretaking are maintained.

Can I pause equipment lease and credit card payments? Yes. Contact your lender.

What about my housing or property investment loan? Home loans and property investment loans to individuals are being treated similarly to business loans.

What other assistance is available? Federal Government Corona Virus SME Guarantee Scheme: These loans will be provided by participating banks which will be the majors and regionals as we understand it. Kick off date is April 2, 2020. There are a couple of terms in the link below that should be clearly understood. Firstly, the government is not guaranteeing you will get the loan. It is guaranteeing the loan to 50 percent of its value to the lending bank. Secondly, the term repayment holiday does not mean interest-free. ResortNews | May 2020

The CBA web site via the link below under Resources has an example of how the product will work including indicative interest rates. This link will give you a summary of whatâ&#x20AC;&#x2122;s on offer: www.treasury.gov.au/ sites/default/files/2020-03/ Fact_sheet-Supporting_ the_flow_of_credit_1.pdf The Qld Rural and Industry Development Authority is offering maximum $250,000 jobs support loans. The loans are by application. See link below. We expect other states to follow. As noted in the guidelines here, to be eligible for a concessional loan, applicant businesses must have been established from July 1, 2017. Remember, the more you redraw the higher your loan balance and greater the impact of capitalising interest.

Will the bank still assist me with deferred repayments if I have advance payments? Yes. The same assistance applies.

If my loan payment is put on hold how does capitalised interest work? Interest charges to the loan and, with no repayments being made, the loan balance rises each month. As such you are essentially paying interest on interest as the balance rises but for most borrowers the aftertax impact with be negligible.

TheManagement Rights Lawyers

What happens to my loan term once the crisis is over?

BUYING/SELLING ASSISTANCE

In most cases the bank will extend the loan term by the period of the repayment holiday which should result in payments being in line with what was being paid before the crisis.

OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

What if I am unsure if I will need assistance?

DISPUTE RESOLUTION

Our advice is to seriously consider taking any assistance on offer. The end game of the virus emergency is unclear and with the possible risk of delayed assistance processing times better to be safe than sorry. Cash flow is king!

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MANAGEMENT

If you are a worker or in control of a workplace, you have duties under the WHS/OHS legislation in Australia to manage the risk of any adverse effect to the health and safety of yourself, as well as those you have influence and control over in a workplace. This includes the work that routinely occurs on the common property of a residential strata property, mixed-use commercial building or aged care facility.

Definition of a PCBU or Duties Holder A person conducting a business or undertaking can be loosely defined as the party(s) that either conduct, supervise or control works in a workplace – including volunteers. For the purposes of residential strata and community living premises, the common property of the scheme becomes a “workplace” whenever work is being carried out, and the Committee for the Body Corporate or strata scheme become the supervising entity. Persons conducting a business or undertaking who have management or control of a workplace must ensure, so far as is reasonably practicable,

Lynda Kypriadakis, Diverse FMX

that the workplace, the means of entering and exiting the workplace and anything arising from the workplace is without health and safety risks to any person. Ref: Managing the work environment and facilities Code of Practice 2011. This means that the duty to provide and maintain a safe work environment and adequate facilities may be shared between duties holders. For example, a Body Corporate or Owner’s Corporation owns the common property, however the Caretaker or Facilities Manager coordinates and arranges the works to occur on the common property. In these circumstances the building owner and the building manager have a duty to consult, collaborate, cooperate, and coordinate safe work activities with each other for 100% compliance.

Residential strata schemes and aged care facilities have unique WHS peculiarities where one entity cannot be fully compliant without the assistance of the other. The Body Corporate relies on the Caretaker to deliver its duties compliantly under the Caretaking Agreement in order to satisfy WHS requirements. The Caretaker relies on the Body Corporate to deliver its duties [e.g. approve important repairs and maintenance works to be done or ensure a compliant WHS Plan is in place] so it can be compliant under both its Caretaking Agreement and WHS duties.

Duties of the PCBU or “Duties Holder” A Caretaker under a Caretaking Agreement has a duty to “coordinate and arrange” works on the common property – with the approval and instruction of the Body Corporate. This fundamentally causes the Caretaker to become the “Health & Safety Representative” [“HSR”] for the common property workplace. The HSR is elected to champion the health and safety requirements and interests of their work group, which for the purposes of residential strata would be those that work on the common property of the scheme. The duties holders or PCBU’s in residential strata and aged

care facilities, with respect to the work that occurs on the common property, include: •

The Body Corporate, Owner’s Corporation or building owner

•

The facilities manager, caretaker or building manager

•

The strata manager [when they issue Work Orders or process invoices for works on common property]

•

The service provider [gardener, plumber or fire/lift services contractors, etc.]

In terms of the common property as a workplace environment, the WHS Regulation places specific obligations on the PCBU [building owner and its building manager] in relation to the work environment and facilities for common property workers. For example, the Body Corporate must: •

Ensure, so far as is reasonably practicable, that the layout of the common property, the lighting and ventilation enables workers to carry out work without risks to health and safety

•

Ensure, so far as is reasonably practicable, the provision of adequate facilities for workers, including toilets,

©Fotografin - stock.adobe.com

GOOD GOVERNANCE

Is COVID-19 a WHS/OHS hazard?

MANAGEMENT

ResortNews | May 2020

©Di Studio - stock.adobe.com drinking water, washing and eating facilities •

Prepare an Emergency Evacuation Plan for workers on the common property

So in a residential strata scheme or aged care facility, this means that the Body Corporate must ensure that all workers on the common property had adequate work facilities, are site inducted to those facilities and have a point of contact to report hazards and concerns to – i.e. the Health & Safety Representative [or building manager].

•

First Step – Demonstrate a duty of care The ultimate goal for every Body Corporate [in terms of their common property workplace obligations] is to be in a position to demonstrate compliance under WHS legislation should an adverse workplace event occur in the future. The way to do this is to collate an audit trail of vigilance as a “duty of care”, which fundamentally includes the following list. Consider answering these questions as a “risk assessment”, which basically a “health check” of the common property workplace. A compliant Body Corporate should be able to answer “Yes” to all these questions and provide an impeccable system of record keeping as proof: •

Do we have a current WHS Plan for the common property workplace? And has this WHS Plan been reviewed within the last 12 months?

•

Have we nominated a “Health & Safety Representative” to be the point of contact for our WHS matters?

•

Are we reviewing and consulting about safety

May 2020 | ResortNews

Application of WHS duties and the COVID-19 hazard

matters on a regular [documented] basis?

•

Is our statutory maintenance of common infrastructure and regulatory compliance in order? Do we understand where our higher risk hazards lie within our common property workplace? And have we prepared plans to mitigate these risks [i.e. application of controls]? Do we have a process for indemnifying the Body Corporate against incompetent and uninsured workers?

The risk of contracting or transferring Coronavirus in the common property workplace is essentially just another hazard that needs mitigation by the building owner and its HSR. Just like the risk of slip/ fall during work, or electrical shock or physical injury from lifting heavy objects and manual labouring [etc.], managing the risk of COVID-19 in the common property workplace is a duty for all PCBU’s. Return to the questions above. These can all be applied to the COVID-19 hazard, as follows:

Do we have a process for site inducting our workers and evacuating them in any workplace emergency event?

•

Are we storing our chemicals, fuels and hazardous materials in accordance with the applicable WHS Codes of Practice?

•

Do we have adequate, functional and clean facilities for hand washing, cribbing, toileting, storage, etc. for our common property workers?

•

Do we have a formal process for reporting hazards, risks, incidents and WHS matters appropriately?

•

Do we have records of consultation, collaboration and providing information to workers on the common property?

If you have answered “No” to any of these questions, then you need a conforming WHS Plan for the common property workplace, which should provide strategies for compliance in all these aspects.

Have we reviewed our WHS Plan to include strategies for managing risk of COVID-19 in our common property workplace? Have we nominated a “Health & Safety Representative” to be the point of contact managing our COVID-19 matters, and has he/she been inducted into the COVID-19 risk management plan?

•

Is our common property clean and sanitary for workers to use safely? How are we maintaining physical distancing in the workplace? How are we separating [non-worker] residents, tenants and guests from workers?

•

How is it likely that COVID-19 might be transferred from one worker to another in our common property? Have we conducted this risk assessment and applied relevant controls?

•

Are we checking that our workers have not

MANAGEMENT

been in contact with COVID-19 affected “others”, or been overseas in the past 14 days? •

Are we showing our workers where to wash their hands when they arrive on site?

•

Are we cleaning surfaces our workers may have touched after they have left?

•

Do we have adequate hand washing/drying and sanitising supplies on hand for our workers to use?

•

Do we have a formal process for reporting any COVID-19 issues [Incident Report] to the relevant parties?

•

Do we have signs and notices about hand washing requirements, hygiene, COVID-19 health and safety posters, etc. to distribute to workers on the common property?

Liability for COVID-19 contracted in the workplace We are yet to understand the implications of a COVID-19 death arising from contraction that can be traced back to a workplace, however, in this ever-increasing age of civil litigation, it isn’t much of a stretch to imagine claims for personal loss or damages could arise out of circumstances where a bereft family could trace infection back to a mis-managed common property workplace. WHS is a common-sense, systematic and documented approach to managing the risk of injury, illness or death in a workplace. How does your common property workplace measure up?

©rcfotostock - stock.adobe.com

INTONET

A code for cure! This article has taken many hours to write and then rewrite.

goes on and on. All that was going to be the basis for this article until Corvid-19 arrived.

It all started with a wail from another room: "We need a new TV because Netflix just won't work anymore." Well no, we didn't; we just had to wait for our broadband connection to be restored and that only cost some twenty minutes and not goodness knows how many dollars. That episode started my thought train about how much we depend on the internet; mail, plane

Arvo Elias, Cybercons

reservations, end of month bank transfers, shopping, ordering take-a-ways and the list just

TheManagement Rights Lawyers BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

DISPUTE RESOLUTION

www.mahoneys.com.au 22

I realise that by the time this gets to press things will have undoubtedly changed, the affairs of the world are moving at a pace, but one aspect of this deadly drama stood out. The impressive ability of South Korea to manage and indeed control its national misfortune. Tracking and isolation were the decisive tools. Perhaps the most aggressive use of mobile phone location tracking is happening in South Korea where the government has created a publicly available map from mobile phone and credit card data that people can use to determine if they have come into contact with someone who has been infected with the virus. South Korea is viewed as something of a success story in its efforts to beat back the spread of the virus; the BBC reported that the country recorded 64 new cases in March, down from its peak of 909 cases reported on February 29. South Korea’s health authorities have been sending detailed text messages that range from reminders about hand washing to specific information about people who have tested positive and where they are. According to The Guardian, an example text message read “A woman in her 60s has just tested positive. Click on the link for the places she visited before she was hospitalised.” The link directs to a list of locations the person visited before she tested positive. Of course, tracking the movements of patients who have been infected with the virus and people who haven’t has raised myriad privacy concerns, and MANAGEMENT

how effective the methods are may never be totally known. If a person doesn’t want to be tracked, they can disable location settings on their device or turn their phone off altogether. Indeed, after the second spike in Korea, caused by an individual visiting a packed church some irresponsible people left their mobiles at home to avoid GPS or phone system tracking. That governments answer was to force these individuals to carry a locked irremovable bracelet regardless of their phone location. Phone tracking is by no means new or restricted to one country. From new contact tracing efforts in Russia, to increased social media censorship in Uganda, governments around the world are increasingly looking to technology in an attempt to control the pandemic. There have also been multiple reports of plans to begin digital tracking measures in Canada and the US, although they are yet to be implemented. There have also been several significant reports of international plans to track mobile phone users. The latest report sighted summarise the situation in response to the outbreak of COVID-19 as follows: •

Contact Tracing Apps are being used in 23 countries;

•

Alternative digital tracking measures are active in 22 countries;

•

Physical surveillance technologies are in use in 10 countries;

•

COVID-19-related censorship has been imposed by 12 governments; ResortNews | May 2020

•

Internet shutdowns continue in 4 countries despite the outbreak.

According to Reuters, Mobile carriers in the European Union are sharing data with health authorities in Italy, Germany, and Austria to help monitor whether people are following instructions to maintain social distances and stay close to home during the outbreak. Israel authorised the use of mobile phone location data to track the virus. The country’s internal security agency, the Shin Bet, has collected data from mobile carriers since about 2002. Prime Minister Benjamin Netanyahu authorized the Shin Bet to track the movements of patients who have tested positive and to determine who should be under quarantine. An Israeli security official told The New York Times that the data was going to be used in a “focused, timelimited and limited activity”. Other countries are using location data from mobile phones to track the pandemic in different ways, from an app called AC 19 in Iran to China’s tracking system that sends information to law enforcement officials, to Taiwan’s “electronic fence” that alerts authorities when a quarantined person moves too far away from their home. At the time of writing, Taiwan had 195 confirmed cases of the coronavirus, one of the lowest tallies of any country. Their mobile phone-based geo-fence uses location-tracking to ensure people who are quarantined stay in their homes. According to the New York Times, if the patient leaves their home address or turns off their smartphone, the police will visit within 15 minutes. The latest and significant development is the co-operation of Google and Apple to modify their underlying operating systems so that Bluetooth interchange between these systems is possible. Their intent is to facilitate a more accurate tracking system. I assume that this combined effort is brought about by the significant limitations from both an efficacy and privacy standpoint of existing apps. It may also run in the background whether the phone is on or off. May 2020 | ResortNews

According to a paper published by the ACLU, for example: “None of the data sources […] are accurate enough to identify close contact with sufficient reliability.” Although Bluetooth is considerably more accurate than GPS, the majority of apps documented rely on GPS instead. Inaccurate results are likely to lead to a high number of false positives and negatives that may adversely impact the relaxation of lockdown measures.

When this crisis is over, wifi will be more important than ever to your guests.

The product lead of Singapore’s lauded "TraceTogether" has even highlighted the limitations of these apps. This is the basis for the app proposed by our Government. That app works by using Bluetooth to record anyone you get close to who also has the app. The two apps exchange anonymised IDs, which are stored encrypted on phones and deleted after 21 days. If someone is infected with coronavirus, authorities can upload the list of anonymised IDs for the past 14 days for contact tracing. The Singapore version of the app collects mobile phone numbers which are not sent to every user, just to the owner of the app and the health department for contact tracing. The app also collects information about phone models and signal strength, and anonymised app analytics data. One can only assume the work by Google and Apple will improve the accuracy and functionality of the app.

Now is the time to start planning and implementing your guest wifi system to be ready for when you re-open.

A myriad of privacy questions do arise but my personal view puts this into the same category as being admitted to hospital. All preconceived ideas of privacy or personal modesty are thrown out the window the moment you arrive in the ward. In the case to hand I would be happy to cringe just as I do on hospital admission. I have also learnt to hate a word used by every politician and talking head on TV: "unprecedented". Without the internet none of this would be possible!

1300 55 77 54 sales@timeoutinternet.com www.timeoutinternet.com

MANAGEMENT

Hygiene, health and happiness:

Boost guest satisfaction By Rosie Clarke, Industry Reporter

ÂŠ iMarzi - stock.adobe.com

Public washrooms are the underestimated, underappreciated face of your accommodation property. More often than not the first and last facility guests will use, they can make or break a guest review. Hygiene is the most important element but there are other factors that should be taken into consideration, including technology, green products and odour control. Maintaining a hygienic washroom sounds easy enough with the range of cleaning products and services available today. However, things can quickly go awry. The majority of complaints made about a property involve poor standards of hygiene and consistency is the key to avoiding these complaints. Regular cleaning throughout the day is essential for any public washroom to replace toilet paper, replenish soaps and make sure there have been no mishaps. A high quality, well-designed facility can also give your property the edge over competitors, particularly if you have invested in green materials or impressive technologies. Hands-free technology is the cornerstone of a five-star public washroom. The latest products to incorporate this technology include toilets, taps, hand dryers, soap dispensers and doors. Not only are they more convenient to use, they are infinitely more hygienic and far easier to clean. Hand dryers are one way for you to be more environmentally friendly by eliminating the need for paper towels. This will also reduce queuing as dryers can now dry hands in less than five seconds. Older hand dryers attempt to evaporate the water on wet hands and are generally lukewarm, ineffective and bacteria-riddled. High-speed and hands-free options have become the industry preference and for a good reason - they are effective. The air used is filtered to remove 99.9 per cent of airborne bacteria and the machines are regulated by NSF International to make

sure health and sanitation requirements are maintained. There are a range of toilet hygiene products available for public washrooms. From disposable toilet seat protectors, to antibacterial seat sprays, wipes and cleaners; you can install dispensers in each cubicle to encourage good hygiene. These sanitisers also help protect the plumbing from lime scale and long-term wear. Taking a harder look at your toiletsâ&#x20AC;&#x2122; flushing mechanism is also worthwhile in terms of hygiene and environmental health. High pressure flushes might be more hygienic but water wastage is a huge concern particularly for more rural properties relying on tank water so this is something to consider. State-of-the-art sanitary bins and units also have automatic vapour sprays installed that disinfect and help eliminate bad odours. This type of technology goes a long way towards upgrading your facility. Silent air fresheners with motionsensitive systems are energy efficient as well as beneficial to guests. These should all be researched prior to installation to ensure their effectiveness as many are just temporary solutions. Proper air ventilation is also crucial; if your facility has no windows, an extractor fan might be what you need. Though often neglected, door handles harbour the same germs as taps and toilet flushers so it is vital to consider them as part of your facility. It makes no sense to have hands-free taps,

soap dispensers and toilets, but regular door handles as this will negate the germ-free ideal. Automatic doors, swing doors, motion sensitive locks, are all valid options for public rest-rooms. Door signage is also something to consider. Etiquette reminders are a simple yet effective way to foster a hygienic space. Reminding visitors not to throw paper towels on the floor, to turn off taps, wipe down seats with sanitiser after use, etc, are all ways to improve washroom cleanliness and make life easier for cleaning staff. Another element of public restrooms that is often overlooked, is baby-changing facilities. Particularly in men's toilets these are often absent but if your property caters to families they are a vital inclusion. Parents are far more likely to revisit accommodation where they feel welcomed and installing basic baby-changing solutions is a simple way to show a higher level of care and boost your service. Hygienic nappy bins, changing tables and even vending machines that offer infant-related essentials would make impressive additions to any public washroom. There are also various staff considerations to put in place when maintaining a hygienic public washroom. The idea behind these is to minimise health risk and uphold a consistently good standard of service. Any member of staff working in the hospitality industry should adhere to the following basic guidelines:

MANAGEMENT

Clean clothing or uniform - workers should change into/out of a uniform at the beginning and end of their shift where relevant.

Hair should be kept clean and secured.

Jewellery should be kept to a minimum.

Wounds should be covered with a waterproof dressing.

Hand contact should be kept to a minimum. Disposable gloves and/or utensils should be used for food handling.

All workers should follow a daily hygiene regime, maintaining good personal hygiene.

Thorough hand washing procedures should also be maintained.

Guests will continue to be impressed by a hygienic, wellthought out public washroom facility. Baby-changing amenities, hands-free technology, consistent cleaning maintenance, effective ventilation and airfreshening are all ways for an accommodation provider to show guests they care about the quality of service they provide. Most bad reviews will cite poor hygiene and disappointing washroom or bathroom amenities are a common complaint of unsatisfied guests. So investing in a solid restroom space for your property is a good way to combat negative reviews and encourage repeat visits. ResortNews | May 2020

HY.GIENE Australia

Post Covid-19 Reopening Working together, HY.GIENE Australia are here to assist with your hygiene program post Covid-19 Our technical support team have carefully researched and identified the situation at hand and in conjunction with the following extracts from Australian Health, have listed six key products, capable of disinfecting and sanitising all surfaces throughout your site. Environmental cleaning and disinfection principles for COVID-19 From Australian Government Dept Health: Routine environmental cleaning Cleaning is an essential part of disinfection. Organic matter can inactivate many disinfectants. Cleaning reduces the soil load, allowing the disinfectant to

work. Removal of germs such as the virus that causes COVID-19, requires thorough cleaning followed by disinfection. The risk of transmission of COVID-19 in the social and nonhealth care work settings can be minimised through a good standard of general hygiene. This includes: Promoting cough etiquette and respiratory hygiene.

•

Routine cleaning of frequently touched hard surfaces with detergent/ disinfectant solution/wipe

It is good practice to routinely clean surfaces as follows:

•

Routine environmental cleaning requirements can be divided into two groups: 1.

•

and immediately after any spillage.

Clean frequently touched surfaces with detergent solution. Clean general surfaces and fittings when visibly soiled

FREQUENTLY TOUCHED SURFACES – Door handles, bedrails, tabletops, light switches, phones, mirrors MINIMALLY TOUCHED SURFACE – Floors, ceilings, walls, blinds Should be cleaned frequently. Detergent solution (as per manufacturer’s instructions) can be used, with the exact choice of detergent determined by the nature of surface and likely degree of contamination.

Detergent-impregnated wipes may be used but should not be used as a replacement for the mechanical cleaning process.

Damp mopping is preferable to dry mopping. Walls and blinds should be cleaned when visibly dusty or soiled. Window curtains should be regularly changed in addition to being cleaned when soiled. Sinks and basins should be cleaned on a regular basis. Promoting HY.GIENE Australia’s Reopening Plan will highlight all necessary applications and methods, using the correct product from our range our registered disinfectants. Use of disinfection • Use freshly made solutions and follow manufacturer’s instructions for appropriate dilution and use. HY.GIENE Australia have a national distributor network in every state to provide local support and delivery. Our Customer Service team is ready to help: 1800 616 930

HY.GIENE Australia has six quality products that are effective to disinfect and sanitise most hard surfaces

HY.GIENE HANDS Alcohol Hand Sanitiser 5L order code 20660

VICTORY GEL BLEACH 5L order code 11105

SANI.SAN Alcohol Based Disinfectant 5L order code 11025

SHINE Alcohol Surface Sanitiser and Window Cleaner 5L order code 20545

ANTI-BAC FS TGA Approved Cleaner Disinfectant 5L order code 20320

ENVIRO.GIENE TGA Approved Cleaner Disinfectant 5L order code 20205

ENVIRO.GIENE – Hospital Grade Disinfectant (TGA) HY.GIENE Australia are part of the critical infrastructure assisting Government departments and essential services in the supply, manufacture and production of products and services to combat the COVID-19 coronavirus. As a manufacturer and supplier of hand sanitising solution and cleaning chemicals, with a track history and record of providing product into the market over twenty three years, HY.GIENE Australia has been listed with relevant Government agencies as a supply source. Our ENVIRO.GIENE multipurpose cleaner is TGA registered hospital grade disinfectant in it – two products for the price of one, making it a premium product for deep clean uses!

Freecall: 1800 616 930 | www.hygieneaustralia.com.au | E: sales@hygieneaustralia.com.au May 2020 | ResortNews

MANAGEMENT

TOURISM

Op-Ed: Coping strategies for a future without international tourism International tourists have been an important mainstay of Australia’s economy, but we’re going to have to figure out how to live without them for some time. It is not that they do not want to come to Australia anymore. It is that they either will not have the money to travel, or that Australia won’t want them to come. It was an international traveler –an Australian or a tourist – who brought COVID-19 to Australia, and we do not want that to happen again. So, our borders are not likely to open any time soon to tourists from countries with large numbers of COVID-19 deaths, unless those international travelers are willing to spend the first two weeks of their trip to Australia in lock-down quarantine, at their own expense, and have insurance in case they need to go to the hospital. On the other hand, at any one time, hundreds of thousands of Australians are traveling abroad. Since March 15, for instance, 300,000 people have returned to Australia, 3000 were/are on cruise ships, and there’s another 11,000 living abroad with some trying to get back. In spite of their love of travel, very few Australians are planning a trip to China, Japan, the UK, France, Spain, Italy or the USA any time soon. The irony is that many Australians have never even been to places in Australia that international tourists save up their whole lives to come and see. What a great opportunity to introduce them to their home country! Aussies are travelers, and as soon as the social distancing regulations are relaxed, they are going to want to “go somewhere”. Now is the time to get those 300,000+ Australians to begin to discover the wonders of Australia. Your task is to figure out how to get them to come to your city and stay in your accommodation. So, my advice is to forget

to do but know will make you more efficient. Revamp the registration or checkout processes, as well as the housekeeping roster and schedules. Look at the restaurant menus and which meals, wine and beer are selling and what kind of profit you are making on each one. Ask the employees on JobKeeper to make suggestions about how to improve the facility, the processes, the food, service, and overall customer experience.

Photo by Suhyeon Choi

can be cut to make the money last longer. Talk with your landlord about postponing payments, making partial payments, or developing a plan that works for both of you. 2.

Dr Jana Matthews, Professor, University of South Australia Business School

marketing to international tourists right now. Begin developing a PR plan that is focused on marketing to Australians. Think hard about what you have to offer, who your competitors are, and which tourists would be your ideal customers (e.g., singles, women, families, over 50s). Think about what you have to offer that is different – and how you are going to get your message across to people who are looking for your kind of difference.

Practical coping strategies for financially strapped businesses Businesses that are financially strapped need to do the following: 1.

Review your profit & loss, and cash flow, then balance sheet, and be honest about your financial position. After figuring out how much money you have, figure out how many weeks or months the money will last, given current expenses, and decide which expenses TOURISM

Apply for some of the government grants that the states and the federal government are making available, i.e., JobKeeper, emergency cash grants, and maybe even file taxes earlier than normal if you expect to get a refund this year. Visit your banker and discuss a six-month deferral of mortgage payments, and whether you qualify for a loan with low interest and repayment deferred for six months, with reasonable payments thereafter. Spend time looking at your business and see how much of the business you can “re-invent”. Look at the traffic flow through your restaurant’s kitchen, how your tools are organised in the truck or supplies are stored in the warehouse. How can you cut out steps and save minutes? Work through the list of projects that you have not had time

Compare yourself to competitors and think about what you need to do to make yourself stand-out and be different from all of them.

Figure out how to translate your difference into a set of marketing messages you can send out through low-cost social media channels, e.g., Facebook, Instagram, and get friends and past customers to amplify the message.

In other words, start working now to attract the Aussie traveler who is beginning to realise that “there’s no place like home” and are considering where to travel in Australia - and might love to come visit your accommodation, just as soon as they are allowed to travel again. You can get upset that international tourists will not be coming anytime soon, you can sit and wait for them to return, or you can go find new tourists – in this case Australian tourists. The good news is that we know they love to travel!

Dr Jana Matthews is the ANZ Chair in Business Growth, Professor, and Director of the Australian Centre for Business Growth at the University of South Australia’s Business School. She has a doctorate from Harvard, has founded five companies, and was on the founding team of the Kauffman Foundation’s Centre for Entrepreneurial Leadership. Matthews is internationally recognised as an expert on entrepreneurial leadership and business growth, has written eight books, and has designed award-winning programs that teach CEOs and executives how to lead and manage growth companies. In 2018, the Australian Financial Review identified her as “100 Women of Influence”.

ResortNews | May 2020

Pan Pac Perth protects rough sleepers in pandemic ©elavuk81 - stock.adobe.com

By Mandy Clarke, Editor

COVID-19’s ‘stay at home’ order falls short of protecting the most vulnerable members of our society. How are homeless Australians supposed to self-isolate? Western Australia asked this question and posed a unique solution in its trial initiative, where statewide hotels welcome rough sleepers to stay.

Pan Pacific hotel to reduce the health risks for people experiencing homelessness during this difficult period.

The McGowan Government announced its “The Hotels with Heart” initiative to care for people experiencing homelessness during this crisis, who would otherwise be unable to take social distancing measures or self-isolate. “About 20 rough sleepers are being moved into Perth's

“The initiative aims to deliver both health outcomes for the community and economic stimulus to the hotel sector and will focus on rapidly housing rough sleepers who are most at risk, to keep them safe and out of hospital. “If the trial is successful, the

new service model could be scaled up to support and ensure the safety of people experiencing homelessness, family and domestic violence and mental health issues. The pilot was developed by a taskforce made up of government and nongovernment representatives, who have been looking at the immediate risks faced by people experiencing or at risk of homelessness.

“It is being delivered in partnership with community service organisations that have significant experience with delivering services to the homeless. These organisations have partnered with health professionals who specialise in treating people who are homeless, and have sought advice on how best to prevent, protect and care for the homeless during the COVID-19 pandemic”. WA Community Services Minister Simone McGurk said: "The State Government recognises that there are a number of cohorts in our community that are more vulnerable to COVID-19. The Hotels with Heart pilot learns from similar initiatives happening interstate and around the world, including in the United Kingdom, America and Canada.”

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May 2020 | ResortNews

TOURISM

Webinar round-up:

ARAMA addresses COVID-19 panic

By Mandy Clarke, Industry Reporter

Leading industry body, Australian Resident Accommodation Managers Association (ARAMA) is proving itself to be “worth its weight in gold” for members as it amps up support during the worst crisis Australia’s accom sector has ever seen. Weekly webinars have taken place since restrictions were put in place to minimise COVID-19 exposure, allowing hundreds of members to e-meet some of the most highly regarded experts in the management rights industry, ask questions and pitch ideas. ARAMA has invited

some of the industry’s most brilliant legal minds, partners and respected managers. Accessed via web conferencing app Zoom, the first webinar kicked off March 20 with a warm welcome from CEO Trevor Rawnsley to an informative

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)

Q&A session. Trevor said: “We aim to bring you accurate, truthful information in a timely fashion. These webinars are our attempt to stay connected during this uncertain time.” The content of each webinar has been flexible, every week it has adapted to the ever-changing government health and legal advice, navigating each new guideline and legislation, and relating it in simple terms to the MR industry. The sessions have prioritised the most important issues for both short-stay and long-term residential managers, answered urgent questions and tackled biggest fears head on, ranging from health and economic dangers, social dangers, legal responsibilities, practicalities, owner, renter, and body corporate issues, also the minefield of financial aid. In the first few weeks of the crisis we were faced with a tsunami of COVID-19 information, escalating panic and conflicting advice from government and industry officials. The webinars have provided clarity and given members practical advice on what to do and how to navigate all the restrictions, stimulus packages and new legislation. At the first webinar, a levelheaded Chris Irons Hynes from legal Strata Advisor, reassured members: “If something is not clear in a body corporate context you must revert back to process, you must revert

EVENTS & APPOINTMENTS

back to best practice, you must rely upon methodical decision making and you must also keep some good records.” In each session, questions focused on financial concerns and experts have provided clarification and point members in the direction of real-world solutions. When the Queensland Parliament passed the Covid-19 Emergency Response Bill 2020 it caused some hysteria with fears voiced that it was weighted too far in favour of the tenant. A manager from one of Brisbane’s large residential buildings in the epicentre of the COVID-19 outbreak explained how he navigated the new rules. Further clarification that tenants will have to prove financial loss and negotiate a payback agreement with landlords calmed panic. Government assistance for sole traders and employers was another very legitimate fear and the webinar attendees were able to guide small and medium business towards financial support from the JobKeeper or Jobseeker packages. With the rulebook being written “on the hoof”, the most important coping strategy for us all, is to be pragmatic and to connect. As for my biggest webinar takeaway so far, this crisis is like no other, possibly much worse, but no-one wants you to fail, so you must reach out and accept all the help that is offered. ResortNews | May 2020

Southbank by Beulah

Green Spine to spring up

in Melbourne Southbank

Australia will officially have a new tallest building, since the Victorian Government green-lit four huge projects this month. The move is an effort to speed up development in the face of COVID-19 concerns. The new 101-storey Green Spine development will be about 30cm taller than Q1 on the Gold Coast and boasts a stunning, twisted aesthetic. UNStudio and Cox Architecture won their bid to design the building, which is part of a $2bn Southbank development led by Melbourne’s awardwinning Beulah International. The mixed-use precinct will comprise a 220-key five star urban resort, along with private residences, commercial offices, 6,600m2 of conference and entertainment centre, and the 7,250m2 of public green spaces, including a publicly accessible rooftop ‘Future Botanic Garden’, May 2020 | ResortNews

devices along the façades of the two towers, paying homage to Melbourne’s title of The Garden City, symbolically bridging the iconic Royal Botanic Gardens with Melbourne’s Arts Precinct. Pocket parks will be a focal point throughout the building, connecting neighbourhoods within the residential tower, providing residents with a sense of community and a place to relax, before culminating in a landscaped journey to the publicly accessible rooftop sky garden.

Southbank by Beulah

which gives the ‘Green Spine’ inspiration for its moniker. The project seeks to generate more than 4700 construction jobs via the provision of a $1bn additional investment

stimulus to the Melbourne construction market and upon completion should create 3,250 new ongoing jobs. The spine twists into a series of outdoor spaces and green

DEVELOPMENTS

Lord Mayor of Melbourne, Sally Capp said: “This is a huge vote of confidence in our city at a time when we are going through a period of economic uncertainty. The rippling style of the building is unique and will be a striking addition to Melbourne’s skyline.” Construction is forecast to commence next year and will take approximately five years to complete.

Rydges Hotel on the Wharf at Port Adelaide

Event Hospitality & Entertainment Limited (EVENT) to manage new waterfront hotel in revitalised Port Adelaide precinct EVENT has entered into a management agreement with CK Property Group for a new Rydges Hotel on the Wharf at Port Adelaide. Sitting on the last remaining, largely undeveloped heritage port area in any Australian capital city, Rydges at the Wharf Port Adelaide will open with 180 rooms, conference and meeting facilities and a locally inspired restaurant and bar. It will be the closest hotel to South Australia’s high-tech defence industry delivering the $50bn attack-class submarines and $30bn Hunter Class Navy Frigate program. The hotel will also service the nearby Technology Park and Edinburgh Defence precinct as well as the other 7,000 businesses spread over 7,000 hectares of employment land surrounding Port Adelaide. Norman Arundel, Hospitality & Entertainment Director of Hotels and Resorts said: “We are thrilled to be working with CK Property Group to deliver this outstanding

Rydges Hotel on the Wharf at Port Adelaide

hotel. With the growing Defence and Tourism sectors, there will be strong demand for this project and we look forward to Rydges becoming an integral part of the local community. “We recently opened the highly successful Atura Adelaide Airport and have also announced the QT brand will be coming to Adelaide. Rydges at the Wharf Port Adelaide will be our third Rydges Hotel in South Australia.” CK Property Group joint Managing Director Walt Coulston said: “We engaged with locally renowned architect Brown Falconer and created an iconic waterfront hotel design which will help revitalise Port Adelaide. Our focus will not only be on providing much needed high-quality accommodation to the nearby Defence Sector, but also to create new amenity in the form of alfresco dining and various wine bars for everyone to enjoy.” South Australian Tourism Commission chief executive Rodney Harrex said the announcement was a major boost for the ongoing renewal of Port Adelaide. “We are very proud of our relationship with the CK Property Group and Event Hospitality & Entertainment and their commitment to invest in South Australia,” he said.

$50 million luxury hotel planned at iconic Barossa Valley winery A 12-storey hotel and day spa is set to become “a Sydney Opera House” like icon to drive luxury tourism in the Barossa wine region. The $50 million six-star luxury hotel project in South Australia will have about 70 rooms, including suites and penthouses, with a private balcony for every room. To be named Oscar Seppeltsfield, the Luxury Hotels Australia project is expected to begin welcoming guests in 2022. Artist’s renders of the building set in the vineyards near the iconic Seppeltsfield Winery reveal an ultra-modern design to rival McLaren Vale’s d’Arenberg Cube. The hotel will be on land owned by Seppeltsfield Wines and leased to Luxury Hotels Australia for 99 years. Wine baron and Seppeltsfield owner Warren Randall said he wanted to create a national icon for South Australia. “Oscar will complete the grand vision of our tourism master plan for Seppeltsfield to become the most desirable epicurean destination for tourists worldwide,” he said.

Rydges Hotel on the Wharf at Port Adelaide

“The hotel will be positioned gently in the middle of the Great Terraced Vineyard, surrounded by century old bush vines, an amazingly tranquil location and a short walking distance to the world-class Seppeltsfield tourism village. “In 2019, Seppeltsfield was judged as one of the top 50 vineyards in the world,” Randall said. “The addition of this luxury hotel will elevate Seppeltsfield to one of the top five vineyards in the world, in turn lifting Australia’s international wine reputation.” Construction is hoped to begin in early 2021 with the building completed about 12 months later. South Australia is responsible for about 50 per cent of Australia’s annual production and 80 per cent of its premium wine. A tender process will be soon undertaken to choose the luxury hotel operator. The project is expected to create 363 construction jobs and 350 ongoing jobs for the region once operational. Project spokesman Toby Yap said Luxury Hotels Australia was made up of a dynamic group of South Australian business leaders. “With over 897,000-day trips to the Barossa in 2019, Oscar Seppeltsfield will be a place where people can stay longer, immerse, indulge and relax.”

Rydges Hotel on the Wharf at Port Adelaide

EVENTS & APPOINTMENTS

ResortNews | May 2020

Head Architect of Intro Architecture Terry Boxall designed the hotel, taking inspiration from the history of Seppeltsfield winery and the wine barrels in the Centennial Cellar. Research commissioned by the South Australian Tourism Commission found that only 28 accommodation options out of 161 in the Barossa were rated at 4-stars or above, revealing a gap in the market for a luxury hotel. Direct tourism expenditure as a result of the hotel is expected to be $19 million per year with tourism visitor numbers estimated at 147,166 over first five years. By Andrew Spence, The Lead, published under a Creative Commons Attribution 4.0 International License.

Planning through covid-19 and for recovery The Property Council of Australia has welcomed commitment from Australian planning ministers to ensure planning approvals maintain their usual pace through the COVID-19 pandemic period.

An artist's render of the Oscar Seppeltsfield luxury hotel being planned for the Barossa Valley in South Australia.

“This is a welcome and very sensible measure that will support jobs now, and get the Australian economy going again in the post-pandemic recovery phase,” said Ken Morrison, Chief Executive of the Property Council of Australia. “The property industry is our biggest employer and a key driver of economic activity.

“Keeping the planning approvals process running smoothly during this period is vital to enabling our industry to contribute to the economic heavy-lifting on the other side of the pandemic,” Mr Morrison said. Mr Morrison said the principles agreed by state and territory planning ministers struck the right balance between keeping the planning system working so

that projects were not unduly held up while also maintaining the integrity of planning approvals. “Keeping building and construction activity going as close to normal levels as possible during the pandemic and having projects in the pipeline for the recovery phase must be a national economic priority,” Mr Morrison said.

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DEVELOPMENTS

Golden Sands Beachfront Resort | Yorkeys Knob, Cairns

Sales Report MANAGEMENT RIGHTS Gold Coast University Village

Gleeson Investment Group Pty Ltd

Parkwood

Ancora

Jing Group (Aust) Pty Ltd

Hope Island

Kempson Court

Yiran Gong and Li Li

Springfield

Viva Apartments

Brett and Kim White

Fortitude Valley

Magnus

TDK Group

Kangaroo Point

The Grange & The Gallery

R Burton

Brookwater

MRS

Brisbane

L - R Alex Barker-Ré and Mandy & Carl Boerboom (in compliance with social distancing requirements)!

Alex Barker-Ré of Calvin Bailey Management Rights congratulates Carl & Mandy on the successful purchase of Golden Sands Beachfront Resort, Yorkeys Knob, Cairns. This established property in an impeccable, absolute beachfront location, will offer challenging times ahead for Carl and Mandy, who - while looking forward to their new lifestyle - fully appreciate the unprecedented times the industry now finds itself in. Our very best wishes to you both. Calvin Bailey & Alex Barker-Ré - “Your Partners in Success”

Sunshine Coast / Wide Bay / Fraser Coast Ocean Views Resort

Paul and Rhondah Macklin

Caloundra

RMS

Gympie Pines

Martin and Loma Barnard

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Las Rias

Lisa and Ray Berridge

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Craig Schiller

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Langley Park Holiday Apartments

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Maroochydore

Seapoint on Trinity

Ashim & Brigette Kaula

Trinity Beach

CBMR

Golden Sands Resort

Carl & Mandy Boerboom

Yorkeys Knob

CBMR

Cascade Gardens

Cascade Gardens Pty Ltd

Cairns City

North Queensland

MOTELS & OTHER Queensland

Management Rights Transactions

Boondall Motor inn

Rob McLean

Boondall

Gladstone Palms Motor Inn

Frank Calvillo

Gladstone

Golden Beach Motor Inn

John Booy

Caloundra

Quest Griffith

Sophie Sun

Griffith

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Deniliquin

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L & T Franklin

Creswick

Halls Gap Motel

P & G Spooner

Halls Gap

New South Wales

Damian Quinn

Victoria

One of the Sunshine Coast’s most experienced firms in on-site management rights transactions. • Commercial & Business Law • Litigation & Dispute Resolution • Wills & Estate Planning

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

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RB & CW

www.accomproperties.com.au PROPERTY

ResortNews | May 2020

DESPITE THE CURRENT CLIMATE, WE STILL HAVE QUALIFIED BUYERS CONTINUING TO PROGRESS WITH PURCHASING MANAGEMENT RIGHTS MORE QUALITY LISTINGS REQUIRED. BRISBANE PERMANENT MANAGEMENT RIGHTS

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UNDER CONTRACT - 14th April 2020 • Luxury riverfront complex • Beautifully presented • 50 apartments

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UNDER CONTRACT - 24th April 2020 • No requirement to live onsite • No set office hours • Low workload

• Agreements topped up to 25 years • 3 bedroom residence with large office • Ideal opportunity

To discuss listing your Management Rights please call MR Sales Phone: 1300 928 556 | Email: sales@mrsales.com.au | Web: www.mrsales.com.au

LOOKING FOR A MANAGEMENT RIGHTS? Over 500 Listings to choose from...

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visit accomproperties.com.au May 2020 | ResortNews

PROPERTY

LOCAL SPECIALIST OF MANAGEMENT RIGHTS & RESORTS SALES NEXT 团队懂得客户对我们的期望，一个具备丰富本地知识和经验，并且诚实而可靠地致力于取得客户利益的生意专家。凭借着团队１０多年丰富行业经验，我们向您承诺我们会努力达到您的期望。无论您准备买，卖生意，我们都可以帮助您实现您的目标。 The team at NEXT knows that our clients want to deal with consultants that have local knowledge, expertise, honesty, integrity, and are committed to achieving the best possible result for them. With many years of combined industry knowledge, you can be assured that our focus will exceed your expectations.

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Prime location, walk to China Town and CBD, close to everything Fantastic Body Corporate salary of $175K Modern and spacious three bedrooms manager residence On title office on ground floor, no set office hours New Fortitude Valley High School only a moments walk away

NETT: $306,000

TOTAL: $2,400,000

KURABY

• • • • •

WEST END

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Boutique building, close to Coles & South Bank Parkland Low caretaker work, no pool & garden, easy for one person Great remuneration $46,255 with 3% adjustment every Oct No unit to buy No office hours

NETT: $105,234

TOTAL: $595,000

Patrick Leou, 0403 265 991, patrickleou@nextrealty.com.au

Brisbane Southside, close to Sunnybank & Sunnybank Hills Strong rental area and very popular for renters Fantastic manager salary $85,000 with annual increase of 5% Large lowset standalone three beds manager residence Spacious separate office, no set office hours

NETT: $122,000

David Jiang, 0481 500 278, davidjianghui@nextrealty.com.au

SUNNYBANK AREA & SOLD INCOME

TOTAL: $1,125,000

David Jiang, 0481 500 278, davidjianghui@nextrealty.com.au

ASCOT

• • • • •

TIME TO RETIRE - OWNER SAYS SELL!

Established modern, inner city permanent complex Handy location, close to shops, transport and M1 Only 35 units with good BC salary of $59,383 Exclusive detached office, no set office hours 2 beds/2 baths/2 carparks manager unit with large yard

NETT: $110,845

TOTAL: $950,000

David Janett, 0404 204 672, davidjanett@nextrealty.com.au

NEXT 不仅专业销售管理权和酒店生意，也向客人提供专业咨询，如管理权市场和生意分析，生意合作合伙计划以及代班经理服务。如您想了解更多的生意机会和市场发展，欢迎致电我们的专业团队。 If you are considering buying or selling, please contact NEXT, we work harder and more professionally to serve our clients for their best interest and trust!

www.nextrealty.com.au

PO Box 288, Cleveland, QLD 4163

PERMANENT MANAGEMENT RIGHTS – IN DEMAND! EX C AG LUSI EN VE CY

ID 8280 SYDNEY OPPORTUNITY

• Off the plan development • Due to be completed soon • 94 apartments

• Great location • Strong projected rental growth • Fantastic starter in NSW

NET PROFIT: $160-180k *Projected

ASKING PRICE:

$984,500

EXCLUSIVE BROKER: Michael Philpott – 0433 137 927

NET PROFIT:

EX C AG LUSI EN VE CY

• Add to your portfolio • All systems in place • Residence & office option

$264,256

ASKING PRICE:

• Guaranteed income • Currently run by single operator • Low maintenance grounds

NET PROFIT:

$81,900

• No set office hours • 3 bed, 2 bath manager’s villa • Solar system installed

ASKING PRICE:

$740,000

• Hidden gem • 55 in the letting pool • No set office hours

• Prime rental location • 4 bed, 2.5 manager’s home • Pet permitted with BC approval

NET PROFIT: $245,602 ASKING PRICE: EXCLUSIVE BROKER: Phil Trimble – 0418 478 966

ID 8973 SOMETHING UNIQUE - CAIRNS

ID 7958 FAMILY SIZED RESIDENCE

NET PROFIT: LISTING BROKER:

• 22 years on agreements • 1 person job + cleaner • Full training provided

On Application ASKING PRICE: Tony Johnson – 0433 335 679

$2,999,998

EX C AG LUSI EN VE CY

ID 8975 PACIFIC PINES PERMANENT

EXCLUSIVE BROKER: Gerard Dixon – 0433 617 515

• Stable business with upside • 121/131 in the letting pool • Generous salary

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EXCLUSIVE BROKER: Elizabeth Forrester – 0433 336 090

ID 8979 GOLD COAST RENT ROLL

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NET PROFIT: LISTING BROKER:

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• Easily manageable workload • Attached office on title • Make the call today!

$106,739 ASKING PRICE: Elissa Paynter – 0447 710 891

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

www.mrsales.com.au

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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

MANAGEMENT RIGHTS RESORTS

BRISBANE

ROBINA

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An exclusive residential complex providing 5 star equivalent facilities. Stroll to the CBD in one direction and trendy James Street, Newstead and Teneriffe precincts in the other. Modern and spacious manager’s apartment. 2 Bedrooms, 2 bathrooms, 150m2, 2 car spaces. Huge office space attached. A supportive body corporate, 24 years remaining on agreements and a salary of over $328,000 ensures the longevity of this healthy business. Run under management with an experienced team, this is a business package that will impress the astute buyer!

Idyllic lifestyle permanent in an exclusive and secure gated estate. Niche market for quality letting pool of 4 bedroom town homes and 2 bedroom apartments. 23 years remain on Agreements, generous $80,000 salary and spacious office on title. Elevated and grand manager’s residence with the luxury of 276 sqm. Suited to dual living comprising 4 bedrooms, 3 bathrooms, modern kitchen, 2 living areas with vast balconies, 4 car spaces. Surrounded by golf club’s, top schools, Bond Uni, Train, Hospital, Tavern and awesome retail facilities.

NETT $503,000 PRICE $3,740,000

NETT $107,000 PRICE $1,156,000

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

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

BRISBANE BAYSIDE

ROBINA

16% RETURN ON INVESTMENT

PERMANENT – SOUGHT AFTER LOCATION

A well-presented townhouse complex for those looking to purchase a secure business to thrive amid uncertain times. Income is underpinned by a sizeable caretaking salary of $133,000 (75% of Net Profit). Potential to improve the net income through acquisition of outside agent lets. Manager’s home has 3 bedrooms with office attached on title. Flexibility with no set office hours. Residents enjoy great facilities including swimming pool, tennis court, function room, BBQ area. After 8 successful years current managers now look forward to retirement.

A great business in a sought-after location close to Robina Shopping Centre, Bond University, public transport and restaurants. No set office hours. One person could manage this business. Salary of $81,000 and 20 years remaining on agreements. Renovated single level 3 bedroom, 2 bathroom Manager’s villa with stunning kitchen, double lock up garage and a beautiful tropical courtyard separated via built-in plantation shutter blinds. Office with shutter blinds and tinted windows attached and on title.

NETT $177,000 PRICE $1,100,000

NETT $138,000 PRICE $1,250,000

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

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

propertybridge.com.au | 1800 888 518

The Emerald:

Hope & healing properties By Trish Riley, Industry Reporter

“Your hardest times often lead to the greatest moments of your life. Keep going. Tough situations build strong people in the end.” – Roy T. Bennett Amber and Rose Prince, resident managers of The Emerald in Surfers Paradise are all too familiar with this adage. In fact, their entry into the management rights industry was the result of a string of challenges that would have felled a lesser partnership.

hotels during her 20s, and then the aged and disability sectors, Rose decided to undertake her real estate license. Amber qualified as a sales agent. As an avid learner, Rose then signed up for the three-day ‘I love real estate’ seminar presented by Dymphna Boholt from the Sunshine Coast, and it was on day three, when the renowned property and real estate guru was summarising strategies that she made mention of trapped equity. “That statement really hit

home,” says Rose. “I realised that while we had no immediate income, we still had equity in our home. In that moment we decided that we needed to sell the house and find a small, income-producing business to invest in. “It was a daunting prospect, particularly for two women with no experience, but getting into management rights seemed to fit the bill.” Rose and Amber threw themselves into finding the right property, looking at a number

in Fortitude Valley, Brisbane. With only a small budget their prospects were limited and in most cases the recovery periods on these schemes would be too long to consider. Armed with financial advice, big dreams and spades of determination, the pair ended up viewing The Emerald, loved the location and upside potential, and a sale ensued. “It’s funny,” says Rose, “my whole life I have always said: when it’s my time, put me in a tent where I can see a river…

When I ask Rose how they decided on management rights, she is honest and direct. Originally from New Zealand, she details their desperation of having just been laid off, being away from their homeland without any familial support and dealing with Amber’s debilitating health condition. Unsure of what direction to go in but leaning heavily on her interest in property and a multitude of business skills gleaned from hospitality work in

Amber and Rose Prince, resident managers of The Emerald in Surfers Paradise

PROFILES

ResortNews | May 2020

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The Emerald is perched on the banks of the beautiful Nerang River and surrounded by waterways – I couldn’t have planned it better.” Unbeknown to them however, the day they took ownership of The Emerald, construction commenced on the neighbouring stand, which had stood vacant for years, and so began 18 months of parking infringements, scaffolding, construction noise and debris while the nine-storey building was developed. The takeover obstacles continued with poor handover from the previous managers and absolutely no documentation or records of any maintenance and/or compliance contracts for the years prior. “It didn’t take us long to realise that this was because the property had been undermaintained and mismanaged,” says Rose. “The manager’s unit was filthy, the walls were multicoloured, the flooring in the office was in a poor condition and the aircon was full of mould. “We obviously know now about all the things we

should have looked into and asked about during the due diligence phase,” adds Rose, “but at the time we had no idea what was ‘normal’, and instead walked into a storm.” Originally designed and built as a Japanese wedding venue, The Emerald itself has had a chequered past. It is rumoured to have harboured a ‘gentleman’s club’ in the penthouse and has even had a reputation for housing ‘hotel hoppers’. “When we took it on, everyone was on edge,” says Rose. “The property was dirty, and the owners were unhappy. Actually, in the first few weeks the most regular visitors were the police.” Now however – a short 18 months later – the pristine 15-storey building is serene and picturesque. The gardens are landscaped and the foyer fresh and welcoming. A refurbished lounge area overlooks the sparkling swimming pool, barbecue area and ample entertainment zone. The office and manager’s unit has been repainted and the carpets replaced.

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PROFILES

The building itself features 30 large two-bedroom, twobathroom apartments with spa baths and spacious private balconies offering spectacular views of the river, hinterland, and cityscape, as well as an expansive penthouse. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been a very, very steep learning curve,â&#x20AC;? says Amber. â&#x20AC;&#x153;At

one time we had seven major incidents to deal with in one month, including a domestic violence case that resulted in furniture and glass in the pool which meant that it was closed for 11 days over the Christmas period, then we had water in the lift well with pumps needing to be replaced.â&#x20AC;?

Despite the initial challenges, and current difficulties being experienced due to the virus however, Rose and Amber are obviously passionate about the property, their business, and the industry. They are committed to correcting the schemeâ&#x20AC;&#x2122;s past ills and ensuring that the building is 100 percent compliant.

for the property, with strategies changed without a change of vision. With a group of owners â&#x20AC;&#x2DC;staying at homeâ&#x20AC;&#x2122;, socially distanced work teams have developed that are carrying out a phased rejuvenation. â&#x20AC;&#x153;Project Emeraldâ&#x20AC;&#x2122; is anticipated to ricochet The Emerald into the 21st century,â&#x20AC;? says Amber.

Fortunately, both women are mechanically and DIY-orientated with different complimentary skill sets. Rose has put herself through all available ABMA and industry training. Over time, a supportive working committee has been established and together they are working through a comprehensive preventative and mandatory maintenance checklist.

â&#x20AC;&#x153;We take comfort in knowing that itâ&#x20AC;&#x2122;s the flaws in an emerald that often bestows its charm,â&#x20AC;? adds Rose wryly. â&#x20AC;&#x153;And if the apparent â&#x20AC;&#x2DC;healing propertiesâ&#x20AC;&#x2122; of the precious gem are to be believed, then this building is finally being given the opportunity to get past its history and will instead provide us with hope, encouragement, comfort and prosperity.â&#x20AC;?

â&#x20AC;&#x153;Our working relationship with the body corporate is respectful and understanding,â&#x20AC;? says Rose, â&#x20AC;&#x153;We have prett y much had to learn the ropes together, but certainly, the owners are happier and there is a very different atmosphere in the building.â&#x20AC;? Amber goes on to explain that the virus has been a pivot point

The Emerald has been managed for more than 15 years by Stratagem and in December the relationship was taken over by Stratacare. â&#x20AC;&#x153;It is heartening to see the committee working alongside us, as the managers, to develop the right â&#x20AC;&#x2DC;triangle of careâ&#x20AC;&#x2122; required for the optimum operation of a building.â&#x20AC;?

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P: 5456 4018

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- NORTH QUEENSLAND -

Noosa Heads:

07 5474 8955

Specialist Management Rights Accountants M

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PREFERRED SUPPLIER DIRECTORY

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Flood Legal offers all the experience & expertise of a big firm while delivering accessible, personal & affordable service that comes with dealing with a small firm. Call Sharon Flood, Director 0459 070 871 or 02 6674 5118 sharon.flood@floodlegal.com.au www.floodlegal.com.au

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ResortNews | May 2020

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