Resort News, October 2020 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 290 | October 2020 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

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

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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.

Inside our October issue FRONT DESK Editor’s Note: 2021 is on the horizon, folks!...............05

INDUSTRY News in Brief .........................................................................06 Special Report: Queensland properties defy COVID threat............... 08 Special Report: Evaluating the impact of COVID-19 on management rights .......................................................10 Person of Interest - Mike O’Farrell: Follow Mike’s road to success .........................................12 ARAMA Report ......................................................................14

State Report ...........................................................................15 BCCM Report .........................................................................16 SCA Report ............................................................................. 17

MANAGEMENT Legal Ease................................................................................18 By All Accounts .....................................................................19 Thinking MR........................................................................... 20 Motel Market ......................................................................... 22 Weekend getaways: The recovery begins .................. 23 Intonet ..................................................................................... 26

Good Governance ............................................................... 28 Fire safety requires expert advice .................................30 Basic fire safety checklist for residential strata .......31

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

Mandy Clarke editor@accomnews.com.au Rosie Clarke & Grantlee Kieza

DESIGN & PRODUCTION ADVERTISING SUBSCRIPTIONS

Richard McGill

Stewart Shimmin advertising@accomnews.com.au Gavin Bill subscriptions@accomnews.com.au

CONTRIBUTORS Trevor Rawnsley, Col Myers, Michelle Scott, James Nickless, John Punch, Lel Parnis, Mike Phipps, Andrew Morgan, Kaitlyn Meehan, Lynda Kypriadakis and Arvo Elias.

Tourism Report ..................................................................... 32 International Tourism ....................................................... 34 The Last Resort .................................................................... 35

EVENTS & APPOINTMENTS Events....................................................................................... 36

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

PROPERTY AccomProperties Sales Report ..................................... 44 New Manager Profile: Central Coast Motel .............. 44 Resort News Agent Profile: Bobo Qi, Property Bridge ....................................................................................... 44

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

PROFILES Allure Mooloolaba ...............................................................49 Agincourt Beachfront Apartments .............................. 52

PREFERRED SUPPLIERS Perferred Supplier Directory ........................................... 54 FRONT DESK

52 ResortNews | October 2020

Our collective hope for a vibrant and busy school summer holidays may just come to fruition!

looks at how some holiday management rights managers were able to adapt their business strategies at the beginning of lockdown and with the help of AccomProperties, they attracted residential tenants to units in their holiday pool.

The industry is pinning all its hopes on open state borders, relaxed restrictions, and the rekindled promise of a New Zealand bubble! However, there is still an underlying COVID-19 threat as a fresh wave could flush away weeks of longed for bookings at any time. Realistically, the survival of many of our management rights related business will depend on a buoyant domestic market for the foreseeable future but the latest government stats also show a drop in domestic travel by almost half across Australia. Furthermore, when Aussies travel in their own country, they tend to spend less in both money and time.

Mandy Clarke, Editor

editor@accomnews.com.au

Nevertheless, for now, you must compete to attract the ‘drive market’. This is the tactic that has been effective in many regions. Rather than waiting for Southern states to open and customers travel north many businesses have been tempting locals with great deals and “out of the box” marketing strategies. This issue, our special report

The report also looks at the impact of COVID-19 on permanent management rights businesses. The feedback we had from managers around Queensland was mostly very positive. Indeed, many have told us that COVID-19 had little effect on them and unit rents across the state have remained stable. In our Person of Interest you’ll meet, Mike O’Farrell, who has been successful in the management rights industry for many, many years. He is not only a huge advocate for both ARAMA and AccomProperties but also a great supporter, advisor, and

teacher to new managers. He is fiercely passionate about our industry and very proud of the business model.

EDITOR'S NOTE

2021 is on the horizon, folks! For all of us who have been fighting for the survival of our businesses this year, we are very fortunate to be in an industry surrounded by the support of seasoned professionals like Mike and our friends at ARAMA. To continue to do everything we can to get people travelling safely again, we need to lose the fear, work together, and adapt to change. In Resort News, you may find a few quirky ideas to help you on your way but, as always, we have plenty of sound advice from your sector’s most trusted leaders. Enjoy your copy of the magazine and please get in touch so we can publicise your COVID-19 journey. Cheers, Mandy

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ResortNews | October 2020

hotelinteriors.com.au • 1300 876 055 FRONT DESK

By Grantlee Kieza, Industry Reporter

Enforced hotel rate discounting by the two major Online Travel Agents is both “unconscionable’’ and a “stretch of Australian consumer law’”, according to the Australian Resident Accommodation Managers Association (ARAMA) as Resort News learns accommodation providers have been warned against signing clauses stipulating rate parity. Trevor Rawnsley, the Chief Executive Officer of the Australian Resident Accommodation Managers Association, said accommodation providers faced a significant threat when the OTAs discounted rates without approval. “When a retailer loses control of their pricing, they lose control of their business,’’ said Rawnsley. “That is happening far too often.” He urged all Australians to book directly with individual accommodation providers rather than using travel agents “in another country’’. In March last year, travel giant Expedia bowed to industry demands to remove contract clauses which prevented accommodation providers from undercutting their listings through their own channels. But at the same time it warned hotel operators who took advantage of the changes they would be ranked lower on their search engines. Booking.com has remained largely silent on the issue but Rawnsley said the two big OTAs continued to insist on rate parity. Combined, the OTAs represent approximately 85 percent of Australia’s shortstay market. ARAMA is a nonprofit industry body that represents more than 2500 resident managers nationwide. “ARAMA’s position is that while there is nothing wrong with rate parity as a condition in principle the problem is that certain major

NEWS IN BREIF

OTA rate discounting slammed by accom providers

Online Travel Agencies not only insist on rate parity but also rate discount,’’ Rawnsley said. They can effectively take control of an accommodation provider’s pricing to drive bookings. “If they choose to, they can discount the rate to whatever they want without seeking approval first. “Rate parity is not good, but in isolation I can understand the rate parity argument. Some would argue that it’s a breach of a certain section of Australian consumer law when it talks about price collusion and I know that argument has been put forward. “The ACCC (Australian Competition and Consumer Commission) has shown some displeasure at rate parity and has had discussions with the OTAs. “From ARAMA’s point of view, rate parity is really up to the operator whether they agree to it or not.

“Instead we are urging people to book directly with the accommodation providers but it is hard to get that message out for mum and dad operators up against the hundreds of millions being spent on advertising and marketing by the OTAs. “By booking directly the consumer will get a better deal and better value.’’ While Expedia and booking.com did not respond to initial questions on rate parity, Krystal Heng, the Communications Manager, Asia Pacific for TripAdvisor. com.au told us: “Tripadvisor reflects rates from both OTAs and hotel partners directly – we don’t enforce any rates. Pricing and rates are up to our OTA & hotel partners to decide.’’ UPDATE: Expedia representative Ludivine Allagnat sent us the following statement:

“We have made representations to say it is unconscionable and a stretch of Australian consumer law. We say to our members not to sign that clause – to strike it out.

Last year, Expedia Group made the decision to unilaterally waive the narrow rate MFNs in its contracts with Australian hotel partners. Expedia Group took this action without any admission of any wrongdoing and without any prejudice to any arguments as to the effect of such provisions, which serve a strong proconsumer, pro-traveller purpose.

“Expedia and booking. com say if you don’t sign we are not going to list you.

We operate a traveller-centric marketplace and work hard every day to present a highly

“What we stand totally against is the ability for an OTA to take control of an accommodation provider’s pricing.

INDUSTRY

intuitive consumer-facing online travel marketplace that enables consumers to find their best travel options quickly and efficiently, helping to increase travel overall and stimulate the economy. This means that, while hotel partners in Australia are free to charge higher rates on our marketplace than on other channels, including their own site, providing their best prices, content, amenities and general hospitality to consumers who find them on our sites has always been and will remain the most effective way to convince consumers to choose their accommodation over other similar accommodations and to maximize their exposure and room night potential on our marketplace. This gives accommodations an opportunity to attract and delight more and more new consumers, leading them to come back to their property either through our channel or through their own. As proven by decades of data analysis and surveys, price is a critical element in consumers’ decision-making process, hence why it is one of many factors we take into account to differentiate otherwise similar accommodation offers in our marketplace. This consumercentric approach is fundamental to our business and will continue to be a key focus for us. ResortNews | October 2020

Calls to outlaw `nefarious’ brand hijacking Ross Forbes-Stephen was sailing smoothly with his accommodation business on the West Australian coast when he says he was attacked by pirates. He is now calling for federal legislation to be strengthened to outlaw the practice he calls “brand hĳacking” in which online travel agents take over a property’s name for their own google listings. Forbes-Stephen has been running the self-catering apartments at Cable Beachside Villas in Broome for 13 years but says the winds of change are blowing fiercely in a storm created by OTAs. Following our recent article on rate parity, he wrote to us to complain about brand hĳacking, which he says should be illegal in Australia. He has also complained formally in seeking help from Federal Opposition leader Anthony Albanese. He says guests searching for almost any accommodation property by name will be presented with four or five “advertisements under that property name for booking. com, Expedia and others but the property’s real web page listing will be halfway down the results – too far for anyone to look”. “These OTA ads are displayed in such a way that the unwitting consumer clicks on the link, thinking they are going direct

ResortNews | October 2020

Booking.com responds... Everything we do is in the spirit of not just giving customers access to the best accommodation options at great prices, but also bringing guests and incremental business to our accommodation partners, particularly as we support the continued recovery of domestic travel in Australia. Search engines are open platforms where any business, including properties of all sizes, can pay to advertise. With a choice of different marketing channels to reach potential customers, the properties that choose to list on Booking.com are able to do so at absolutely no charge. We then invest in advertising to help them capture as much customer demand that exists in order to grow their businesses, ultimately helping to keep the larger travel ecosystem thriving over the long-term, including in Australia.”

to the property website, but are instead being syphoned off to an OTA where the property page is displayed and the booking is funnelled through the OTA. “This is a huge problem that has been made illegal in several European countries, but is not being addressed at all in Australia.” He said there was no point in industry watchdogs telling customers to book direct with a property if they couldn’t find that property with a simple google search or if it was lost among the commission-hungry OTA ads for that property. “Brand hĳacking has been going on for years,” he said. “It’s a very important issue for accommodation operators.” Forbes-Stephen said he

first became aware of the practice a few years ago. “I was getting calls from people saying they’d made a booking on my website when they’d in fact made a booking through [an OTA],” he said.

Forbes-Stephen said when he started at Cable Beachside Villas in 2007 “there was hardly any online booking”. “Our business didn’t even have its own online booking page. It was just the start of channel managers coming online,’’ he said. “Travel agents had booking websites but we still used to get a phenomenal number of phone calls from them checking availability. “That changed in the first two years here. By 2009 we were fully online and phone calls dropped from 30 a day to 10. “Everything worked quite well, more than half our bookings were direct bookings. “But there has been a steady progression down.”

“At the same time our direct bookings dropped to about 50 percent and our traffic through [that OTA] went up like mad. Then [another one] started doing the same thing.

Trevor Rawnsley, the Chief Executive Officer at the Australian Resident Accommodation Managers Association, said the practises of brand hĳacking and redirecting were “nefarious tricks’’ by OTAs that made his blood boil.

“It doesn’t happen to big businesses… because they have the financial clout to tell the OTAs to get stuffed.

He said pursuing legal action over the practice was tough, though, given the OTAs were based overseas.

“I tried to compete with them by running a campaign with google ads but I couldn’t beat them using keywords because it was too expensive.”

“We’ve tried reaching out to them but can’t get anywhere because the OTAs always blame head office, be it in Dublin or Zurich or elsewhere,” he said.

INDUSTRY

SPECIAL REPORT

Queensland properties defy COVID threat By Grantlee Kieza, Industry Reporter

Despite a million job losses in Australia due to COVID-19, apartment rentals in Queensland’s managed properties are working overtime as owners defy the economic downturn. Rental listings in Queensland increased more than 10 percent in the weeks after the COVID outbreak as owners of short-term holiday rental properties fled to the long-term rental market. At the time, Domain economist Trent Wiltshire noted that property owners were “foreseeing that the tourism market is going to be very sluggish for the next few months”.

And Eadan Hockings, of leading Brisbane real estate agency Living Here Cush Partners, told Resort News that more recently there had been a “ten-fold” increase in enquiries from shortterm rental owners wanting to change their properties from Airbnb and hotel lettings to six-month leases or longer. “There is obviously a big decrease in the short-term market with overseas travel out and the local market pretty limited,” Mr Hockings said. “So owners are looking for a safer option with longer residential leases.” The managers at some of the state’s leading rental apartment properties say that COVID has had minimal impact on leases of six months or more.

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INDUSTRY

ResortNews | October 2020

Linda Shearer has been managing the 44 rental units at Accent On McLeod in Cairns since 2015 and says while “holiday properties might be having a bit of struggle the longer-term rentals are doing alright”. “We had a couple of people move out after they lost their jobs through COVID but their leases were virtually at an end anyway, so the owners let them go early. “Those properties were re-let within four weeks. “I also had a couple of owners who had to reduce rents for a couple of months to help tenants with financial problems but they went back

to the full price before long.” Samantha Currey, who runs 28 apartments at the City Park Gardens complex in the nearby suburb of Mooroobool, said there had been minimal disruption from COVID. “I had to reduce a few rents and a couple of people moved away after losing their jobs but not significant numbers,” she said. “I had a three-bedroom unit that was empty for four weeks and a two-bedroom that was empty only for three days. “I’ve got two empty his week but I’m still getting enquiries.” Colin Troyahn, who looks after 20 properties in the townhouse development at Coomera Landing on the Gold Coast, has

had no vacancies since COVID hit. “We had one person fall short on rent, however we’ve been able to manage that with very good owners,” Mr Troyahn said. “They weren’t screaming for the money and there is a plan in place to catch up with arrears over a period of time. COVID has virtually had no impact at all on our business.” At the Hermitage Gardens village-style residential complex in the Brisbane suburb of Grange, manager Robyn Moore said only three out of 40 tenants asked for rent reduction during the worst of the crisis and only one eventually took up the offer.

has two teaching jobs – one permanent part-time and one casual – so he has repaid everything and is fine,’’ she said. “Since COVID hit we’ve only had a couple of people move out – one got a job somewhere else and the other wanted a bigger place.” And among the 114 apartments in the McWhirters building in Brisbane’s Fortitude Valley, only two tenants asked for rent reduction. “That was during April to July – the worst period,” said manager Jill Chung, “but they are now back to their normal rent. “COVID has not hurt our business much at all.’’

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INDUSTRY

COVID-19 on management rights Zealand bubble is created!

What impact has COVID-19 had on management rights businesses?

The COVID trend of converting holiday units to residential accom also coincides with a surge in Airbnb properties seeking permanent renters and this has sparked fear about a residential oversupply and the knock-on effect of reduced rents. However, in Queensland, at least, this does not seem to have happened yet.

COVID-19 has been a huge disruptor and as we move into the second half of the year, we are gaining clarity on the likely long-term impact. We have heard from many short-term holiday managers concerned for their business due to the loss of tourism and this has been widely publicised. However, managers of permanent lettings have been telling us a very different story! Resort managers have been adapting to the new market, ushering a vast increase in permanent rental units. Our own Patrick Clarke from Accom Properties confirmed that from March onwards, his management rights sales and rental platform saw a sharp rise in enquiries from managers looking to use the portal to secure residential tenants (they were focussed on anything from two to six months) who could take up longer term leases across their holiday letting pool. He said: “When the borders

©samuel - stock.adobe.com

By Mandy Clarke, Editor

closed it became apparent that the pandemic was going to be hugely disruptive to tourism and the accom industry. Consequently, holiday apartment owners asked their MR managers to find permanent tenants for their investment units. Managers turned to Accom Properties and we were able to swiftly step in and help. “This change of direction may have been a good decision for many unit owners who were able to rely on a regular and steady income throughout the crisis. However, I do worry that management rights operators could have difficulty

convincing those owners to return their units to the potentially more profitable holiday rental pool while there is uncertainty around COVID-19 and border restrictions.”

A random cross-section of Queensland’s permanent managers spoke to us earlier this month and reported that only a small number of tenants have actually asked for rent reductions due to COVID hardship. In fact, most reported that the pandemic has had virtually no impact on their business.

Those managers of holiday management rights businesses that do not allow permanent lettings at all, may have suffered more hardship than most during lockdown and this may be a concern for these businesses going forward. On the other hand, they could be better positioned to benefit from the upsurge of holiday makers expected when state border restrictions lift, or dare we say it, when a New

ARAMA CEO Trevor Rawnsley told us: “Long term rentals in Queensland have held up reasonably well and, in some markets, the average weekly rent has actually increased. There is a relatively small number of rentals which qualify for the COVID hardship relief (no evictions and a rent reduction or deferral, etc). In Queensland less than four percent of rentals qualify for this hardship test.

INDUSTRY

ResortNews | October 2020

SPECIAL REPORT

Evaluating the impact of

“There is a mixed bag elsewhere, for example the Sydney and Melbourne long-term rental markets are very soft, corporate short-stay and student accom is very badly effected as is short stay (holiday letting) in hard to get to places such as Port Douglas, Cairns and around this region.”

Sales of holiday management rights businesses fall A total absence of incoming international visitors to Australia and a downturn in domestic demand in many regions for short term stay accommodation has taken its toll on the sale of holiday management rights. Some management rights and motel financiers have stopped lending for holiday lets because they are viewed as too much of a risk while the sector navigates uncertain terrain. Although, according to specialist finance broker Mike Phipps there are still lenders who are prepared to look at opportunities on a deal by deal basis. Even so, a significant downturn in management rights business sales has been reported by industry insiders and is also highlighted in our most recent Resort News monthly sales report, which was down by an average 85 percent with almost all management rights business sales being permanent properties.

Property valuers, Herron Todd White’s Management Rights Market Update on August 19, also highlighted concern for the value and sale of holiday management rights businesses, pointing out that permanent management rights are holding up well. The report states: “June and July were very quiet months for management rights valuations. There have been no holiday transactions reach an unconditional contract stage (that we are aware of) and the permanent business market recovered somewhat, though most transactions were mostly for smaller scale and fringe location businesses.’ “August, to date, has provided a number of quote opportunities and there appears to be movement in the permanent business market. We are aware of a small-scale holiday business contract on the Gold Coast along with negotiations continuing for a larger resort style complex on the Sunshine coast, which may reach a contract shortly. “Further we are aware of recent contracts for permanent complexes on the Sunshine Coast, Mackay, Brisbane suburbs and the Gold Coast. A contract was negotiated for a smaller permanent complex in May and settled during July on the Sunshine Coast with the multiplier in line with expectations given the size

at just under five times.” The valuer’s research also suggests that since June, the “residential markets have experienced an increase in sale volumes and agents now report low levels of owner occupier stock for sale. Investor product in fringe areas remains higher and units in holiday buildings hard to sell”.

Holiday letting demand to rebound with restriction easing When restrictions began to ease and people began to travel longer distances within their state, some regions reported a miniboom caused by a ‘drive market’ made up of Aussies keen to get out and visit their own backyard. Regions away from the usual school holiday hot spots seem to have benefited the most from this drive market, for instance some Gold Coast resorts reportedly lost out to hinterland hideaways, regional coastal resorts, and holiday parks. Expectations of more rebound later this year is good news for the future of holiday lets.

The future will be positive for management rights The management rights sector has always shown resilience in times of hardship and many holiday managers have used this forced “rest period” to reflect and make changes that will benefit the future of their business. Permanent lets have certainly proved how resilient they are by continuing to sell and operate well. Now may not be the ideal time for you to sell

your holiday management rights business; those managers who have a five-year exit plan for their resort may have to extend it by a few years. However, this could also be an excellent time to make a long-term investment. There are certainly some very positive signs for the whole industry and permanent MR businesses have tackled the crisis especially well. Trevor Rawnsley says: “The Sunshine Coast short stay (holiday let) is booming as are most parts of the NSW Coast and Central Queensland Coast. The Gold Coast is mixed at the moment, but expected to bounce back quickly as with all areas as soon as the borders reopen.” He advises: “Overall the management rights industry has come through the COVID period very well. Long-term let businesses are increasing in value while short stay businesses will recover quickly as soon as the future is a little more certain. “I am hesitant to say that we are a fortunate industry because there are some operators who are still in the doldrums. While this is a small group, it is a big deal for them. “It’s a good time to buy and a good time to sell because there is definitely demand out there. The banks need to be a little more flexible and then some volume sales will return. Hopefully, the lending reforms will help to stimulate the market.”

The general downturn may have also been influenced by a shortage of management rights businesses entering

the marketplace, a delay in property viewings due to COVID restrictions, and lenders’ reluctance to commit to finances.

ResortNews | October 2020

INDUSTRY

PERSON OF INTEREST

Follow Mike’s road to success

Above: The Riverside Hotel, Southbank

By Mandy Clarke, Editor

For anyone new to management rights (MR), our October person of interest, Mike O’Farrell should be on the top of your list of people to get to know. Mike has lived and breathed the MR industry for almost 30 years! For any industry “new-bees” out there, Mike’s breadth of knowledge is priceless. An enthusiastic advocate for the industry, he has experience owning management rights businesses, extensive knowledge of industry innerworkings, history, and an instinctive leadership style.

Mike O’Farrell

Mike is known for generously sharing his practical “cut to the chase” advice with others. In INDUSTRY

conversation about the sweeping disruptions of this year, spurred on by COVID, Mike said: “Since 1991, I have seen the industry evolve. The biggest changes have occurred in the last decade or so… Today, bodies corporate committees are far more demanding, more attuned to the act, they spend more carefully and have higher expectations from a caretaking point of view.“ On that note, he added: “Caretaking agreements were created in time when there were more grey areas and it has created a breeding ground for current disputes.” Born in Brisbane in 1951, Mike comes from fairly humble and very proud beginnings! It is clear that he is fiercely proud of his heroic father, who was a highly decorated World War Two ambulance man. ResortNews | October 2020

Mike went to school in Coffs Harbour, where he excelled at sport, played rugby league, and represented a NSW country side playing at Lang Park Brisbane. He is too humble to admit it, but it is clear too that he showed leadership skills right from the start and was rewarded with being elected School Captain in 1969. A career in retail began with an apprenticeship at the Grace Brother’s Department Store in Sydney. He then went on to have a long career with AGC Finance, becoming their WA state manager in the mid-1980s. He married his beloved wife Sue in the mid-1970s; they had two sons and have since been blessed with wonderful grandchildren. In 1991, Mike and Sue returned to Queensland’s South East Coast where they were introduced to Gold Coast MR and bought the management rights for the iconic Biarritz Surfers Paradise and Broadbeach Holiday Apartments. Mike said: “This was a wonderful time in our lives, we were the resident managers at Biarritz from 1991 to 1999 and we still have many close friends today who were actually guests at the resort.” Various Gold Coast MR businesses followed until 2005 when Mike and Sue moved to Brisbane, it was still a young, developing city and they were savvy enough to see its potential and to identify a growth in the market for management rights businesses. They bought the superb Riverside Hotel Brisbane and they still own this business today. Riverside Hotel is wonderfully located in Southbank Parklands, the cultural hub of the Brisbane, ideally positioned for both business and holiday travellers. The property presents comfortable hotel rooms and stylish self-contained onebedroom apartments, as well as world class conferencing and leisure facilities. Before COVID, Mike explained that Riverside was functioning at a very successful 80 percent occupancy rate, through hard work their business continued to grow from day one. Mike and Sue have owned multiple management rights over the ResortNews | October 2020

Mike with wife Sue, granddaughter Holly and grandson Samuel

Mike’s 10 commandments for management and letting rights 1.

Promote the holy trinity – triangle of management

Develop a ‘best for building’ attitude and know your building

Develop a winning attitude and present yourself in a professional manner

Follow the caretaking agreement and its duties

Be proactive

Do not take commissions

Communicate regularly

Have a break

Join and maintain membership bodies and be active in them

10. Remember that the road to success is always under construction

past 30 years but currently Riverside is their main holding. However, management rights happens to be just one string in Mike’s bow because he also owns a consultancy business. Much of his time is therefore spent teaching other resident managers and helping to resolve disputes and body corporate issues. Mike told me he established MLR Services to help residents, committees, building managers and bodies corporate find

dispute resolutions that are based on reason through his mediation services. His in-depth knowledge of Australian Building Management Accreditation (ABMA) code means he can interpret contracts and clarify responsibility based on a ‘best for building’ (B4B) practise. Furthermore, in Mike’s spare time, he is also a member of ARAMA, in fact he was the Brisbane president for a while and has also been a national board

INDUSTRY

member. He said: “I have been a passionate member of ARAMA since 1991 and I cannot believe that anyone in the industry would not join this association. If you are in this industry ARAMA has your back and is protecting the MR legislation and therefore the future of your business. “I am also an accredited industry practitioner with the ABMA independent review panel, and we work to update the code each year. “Today the business is much more demanding for resort managers and so they need to be much more knowledgable, this is why I spend time teaching and lecturing for ARAMA.” Mike has tried to give back as much as he has received from his journey in this incredible industry and his whole philosophy is based on the 10 commandments that he created for management rights. His tenth commandment is one we should all take note of, especially after such a challenging 2020: “Remember that the road to success is always under construction.”

ARAMA REPORT

Advocacy and education key to long-term success As the peak body for resident managers, ARAMA has long championed owner operated management rights as the most effective method of serving the interests of unit owners, bodies corporate, tourists and tenants alike. Our efforts focus on providing the necessary networking, education, advocacy, and representation needed for all our members, particularly with regard to the protection of management rights. The issues impacting our industry are varied, constant and recurring - and it is almost impossible for resident managers to keep abreast

and rental reforms to name just a few. It takes special skills and experience and many man-hours to digest proposed legislation changes that could add thousands in costs, blow out contract timeframes or leave management rights operators unprotected legally. ARAMA is also vocal on major industry threats such as dominant online travel agents (OTAs) forcing price discounts on accommodation providers.

Trevor Rawnsley, CEO, ARAMA

of all of them with the wideranging responsibilities in their day-to-day jobs leaving little time to do so. We provide ongoing representation on matters that directly impact the viability of member businesses ranging from licensing, short-stay accommodation regulation,

Equally as important, we remain focused on enhancing education and professional development among our members to lift the skills and experience within our industry and further strengthen the profile of management rights. With more and more Australians embracing density living options each year, there is a genuine need to prioritise continuous learning to effectively and responsibly navigate new opportunities and challenges. We work with industry specialists to design and deliver training programs that evolve and adapt with industry trends and requirements in a relevant and cost-effective way. Now in its third year, our management rights industry training program (MRITP) offers a wealth of information about the legal landscape, managing stakeholder relationships

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

and financial management and compliance. The one-day workshop is both an introduction to the world of management rights and an ideal refresher course for experienced resident managers who want to update their knowledge and learn about the latest developments, trends and innovations. We carefully select guest facilitators with leading edge practical experience who are renowned as being the best in the business – and provide a forum to ask questions and learn from their experience. I encourage you to keep an eye out for the next program near you. This program, together with regular workshops, regional networking events and webinars will continue to improve member skills and performance to ensure collectively our industry can meet today’s challenges and tomorrow’s opportunities. Management rights has existed for almost 50 years – and ARAMA has been around for more than half of that – so do not miss out on the opportunity to learn from and contribute to industry success. The more active our members are, the more powerful our industry is and the better the outcome for all stakeholders in a high density living.

QLD - NSW - VIC - WA

For membership enquiries:

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

INDUSTRY

ResortNews | October 2020

When the June 2020 Consumer Price Index (CPI) ‘all groups’ data was released by the Australian Bureau of Statistics, it revealed that for the first time since the March 1998 quarter, the annual change in the CPI for Australia as a whole decreased. It was the first time since December 1997 that the annual Sydney CPI had decreased and the first time ever, since recording began in September 1949, that the annual CPI for Brisbane had decreased. This may have an impact on some management rights operators.

How might a CPI reduction affect you? CPI in management rights affects three key areas: 1.

The remuneration paid to you by your body corporate or owners corporation under your Caretaking Agreement;

The letting and other fees you charge to your owners for your letting services; and

The rent you may pay on properties that you lease from owners.

CPI is everywhere. It is normal for you to expect an increase in your body corporate remuneration based on annual CPI increases. Really, the whole purpose for the introduction of CPI was to catch the increases in general cost of living.

So, what happens when the CPI deceases? In some cases, it is simply a matter of when the CPI goes up, your remuneration goes up and when the CPI goes down, your remuneration goes down. In other cases, when the CPI goes ResortNews | October 2020

STATE REPORT

CPI increases and COVID-19 This may have an impact on some management rights operators. Col Myers, Small Myers Hughes

up, the remuneration goes up, but when the CPI goes down the amount stays the same. It all depends on the wording of your CPI clause. A decrease in the remuneration that may be paid by an owners corporation has been unheard of to date. However, if your remuneration is expressed in your Caretaking Agreement to be pegged to an increase or decrease in the CPI, it can now go down.

in the next 12 to 24 months, when the CPI starts making a significant comeback, this will not be an issue.

be affected by a possible CPI reduction. Do not let a decrease in your remuneration take you by surprise.

Where to from here?

Disclaimer: This article is provided for information purposes only and should not be regarded as legal advice.

Take a moment to evaluate all the agreements you are a party to and see if you may

PROGRAMME

There are clauses drafted into Caretaking Agreements that allow the caretakers remuneration to go up, but not down. These clauses are commonly referred to as “ratchet” clauses. In other words, they are like a kangaroo, who can only hop forward and not back!

This months suppliers to the programme AIR CONDITIONING

Check Air Climate Control CARPET & FURNITURE CLEANING/PROTECTION First Resort CLEANING CONTRACTORS Lifestyle Cleaning MANAGEMENT RIGHTS AGENTS Management Rights Sales Stratacorp PAINTERS & DECORATORS Amalgamated Group SOLICITORS Griffiths Parry Nicholsons Solicitors TRAINING & DEVELOPMENT PRET Australia

It is not uncommon for Caretaking Agreements to include a ratchet clause, so that the annual remuneration is never less than the remuneration received the previous year. This often also applies to market reviews, so that even if the market rate is assessed to be lower than the current remuneration, the remuneration does not decrease. In recent years, we have seen the presence of these ratchet clauses in Caretaking Agreements met with greater resistance from owners corporations, who will argue that they are unfair. However, INDUSTRY

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

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

BCCM REPORT

Removing and replacing

committee members We get a lot of enquiries about the process for removing and replacing committee members. While these FAQs provide some general information about these topics, it’s worth saying that merely removing and replacing a committee member is not necessarily going to solve all problems. We would suggest taking the time to also think about the underlying issues at play and whether a new person in a role is going to address them. Please note that all responses provided apply to the Standard Regulation Module. You should check the regulation module your scheme is registered under for the relevant information. As always, if you remain in doubt about these issues, we recommend you consider seeking qualified legal advice. Q1. A committee member has resigned. Do we need to replace them, or can we just wait until the next annual general meeting (AGM)? If a committee member resigns, they must be replaced. Within one month of the resignation the committee (if it can still form a quorum) can appoint a person who is eligible to be a voting member to fill the vacancy. Alternatively, the committee can call an extraordinary general meeting (EGM) to choose a person to fill the vacancy. If the committee no longer has enough members to form a quorum, it must call an EGM. Q2. If an executive member resigns, can another executive member take on their role on the committee and hold two executive positions? Yes, an eligible voting member can hold two or three executive positions. That said, the committee will still need to fill the vacancy created by the resignation by appointing a person to be an ordinary member of the committee.

We are having trouble with a committee member; can we just remove them? Michelle Scott

Q5. If a committee member is removed from oﬃce due to a breach of code of conduct, do we need to replace them?

Commissioner, Body Corporate & Community Management

Q3. We are having trouble with a committee member; can we just remove them? A committee member can be removed by ordinary resolution at an EGM. It is important that there is a motion that also appoints an eligible person to the vacant position. It can be a part of the motion to remove the committee member or a separate motion. Q4. We have a committee member who has breached the code of conduct. What can we do about it? If you are alleging a committee member has breached the code of conduct (the Act, Schedule 1A) the body corporate can pass a motion by ordinary resolution to issue them a breach notice. This is a written notice of no more than 600 words identifying the breach and giving them a notice period of at least 21 days to give other owners a written response to the notice of no more than 600 words. The committee member can ask the body corporate to pay for their reasonable cost of distributing their response to other owners. After the notice period in the breach notice has ended, the body corporate then considers a motion by ordinary resolution at a general meeting remove the member from office. A copy of the breach notice must be included in the notice of the meeting considering the motion to remove the committee member.

Yes. The body corporate may appoint a person who is eligible to be a member of the committee to fill the vacancy at the same general meeting where the member is removed. Q6. We have called an EGM to fill a vacancy, but no one has nominated. Can we call for nominations from the ﬂoor? Yes, if the meeting has been called to fill a vacancy, nominations may be made orally from the floor of the meeting. Nominations can also be made by hand, by post and by facsimile to a committee member so that the member receives the nomination before the election is conducted at the meeting. An owner of a lot must be physically present at the meeting to vote in the election. Q7. Most of our committee has resigned. We are going to call an EGM but no one is showing any interest to be on the committee. What happens if we can’t replace all of committee members who resigned at the EGM? If an EGM is called to fill a committee vacancy, the agenda must also include a motion approving the engagement of a body corporate manager to carry out the functions of the committee. The motion will only be considered if, after the election to fill the vacant positions, at least one executive position is not filled, or the total number of voting members is fewer than three. If it is considered, the

INDUSTRY

motion must be the last item of business for the meeting. Q8. One of our committee members does not come to meetings or vote by proxy. Can they still be on the committee? If a committee member is not present personally or by proxy for two consecutive meetings of the committee, without the committee’s leave, their position becomes vacant. You can then take steps to fill the vacancy. The requirement for the “committee’s leave” requires some positive approval or consent to the absence – not just mere notification of an absence. Q9. The chairperson has been convicted of drink driving offences. Can we remove him from the committee? A position on the committee is automatically vacated if a member of the committee is convicted (whether or not the conviction is recorded) of an indictable offence. An indictable offence is a crime or misdemeanour that is more serious (like murder and assault), while simple offences (including traffic offences) are called summary offences. The body corporate may want to seek legal advice about whether a particular conviction is for an indictable offence. For general information about body corporate legislation, you can contact the Office of the Commissioner for Body Corporate and Community Management on 1800 060 119 or www.qld.gov.au/ bodycorporatequestion. ResortNews | October 2020

Seven years in the making, SCA (Qld) is confident that the amended Body Corporate and Community Management Regulations are being released in the not-toodistant future. And yes, I am crossing my fingers while I write this. It has been a long seven years, not just for SCA (Qld), but for everyone living and working in strata, having to work around some quite archaic processes. Since this reform agenda was announced, we have actively engaged and pushed for these reforms to be turned into legislation, during which time New South Wales and Victoria have started and finished reform processes, passing new legislation that has modernised the way people live and work in strata schemes. Queensland has fallen behind with our legislation, and to be frank, it is now becoming embarrassing. Pressing issues such as statutory warranties for defects, the insurance crisis in Far North QLD as well as licensing and regulation of strata managers need to be properly addressed without further delay. Greater selfregulation and the ability to take control in order to make lifestyle choices that best suit the lot owners should be a fundamental right for people living in strata in Queensland. We have been working with the Queensland Government to ensure our members’ voices are heard. The request to release the new Regulation Modules is a large part of our State Election Priorities which call on the parties to address body corporate issues in the State, particularly the lack of ability for self-governance in schemes. In fact, in the past few weeks I have met with several politicians to ResortNews | October 2020

our way through COVID-19 by reviewing the health directions and explain to members by way of several best practice guides how they are to be applied to strata schemes. We held popup webinars and succinctly explained the strata world to the Queensland Government to express the difficulties and limitations for lot owners in their own properties. James Nickless, President, SCA, Qld

discuss the urgency and fatigue the sector is feeling around the continuing delay in releasing the regulations. As readers may recall from our previous editorials, SCA (Qld) has liaised with the QUT Property Law Review Panel in the first four years of the review, provided more than two dozen submissions to the various stages of white papers, consultation draft s and draft regulations including targeted confidential stakeholder feedback. We also ensured that some of the arising matters were addressed, although many of these are on hold for the next stage when the BCCM Act will be reviewed. In anticipation of the amended regulations, the Board initiated a working group to assist SCA (Qld) to prepare a member guide to understand the major changes. Once the Regulations are finally released, we will endeavour to update our members via seminars as a matter of urgency. Further, we have drafted a comprehensive information sheet breaking down all the changes, stating how they will affect Queensland Bodies Corporate. I can confidently say, we are ready to roll this out and give our members the tools that they need to assist their clients navigate the changes. SCA (Qld) has always been dedicated to providing our members with valuable services such as relevant education, effective advocacy, and direct support. We worked

Many of the government restrictions did not consider the 1.2 million Queenslanders living in strata or even distinguish the body corporate facilities from commercial facilities, but with constant submissions, publications, and meetings, SCA (Qld) received guidance and some temporary legislative amendments for the strata industry. SCA (Qld)’s membership and activities have grown

exponentially in the seven years since this review began which is a testament to how much the industry has grown, although we are still plagued by the shortage of professional body corporate managers. We implemented new self-regulatory measures to provide consumers with the confidence that SCA (Qld) members are trained and qualified professionals. We also improved the accreditation pathway, education portfolio, and Awards for Excellence just to name a few things that have impacted the lot owner’s experience.

SCA REPORT

Fingers crossed for amended BCCM regulations

With a new board being elected this month, I am quite excited to tackle the next term and continue to push for the advancement of our industry.

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

Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business? We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry. Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.

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

INDUSTRY

LEGAL EASE

The benefits of management rights agreements – to all parties Having handled multiunit developments for developers, buyers of lots, body corporates and management rights operators since the 1970s, it never ceases to amaze me that the basics, which were put in place in Queensland for strata titling of multiunit buildings and their management decades ago, are still serving all parties involved so well and are still being attacked by a certain few people for various reasons (mostly money related). Once you move away from a separated one residence lot to multi-lot arrangements, a whole new series of items and needs have to be covered – hence the Community Titles laws and arrangement which have been made by statute, particularly in Queensland. Generally speaking, they are well thought out from those original days, and provide a “balanced” situation for everyone to work to, rely on, and benefit from. It particularly bothers me to see some lawyers, advising body corporates, and body corporate managers, as well as even some body corporate committee members and lot owners – stating that the management rights system of body corporate contracts, has no benefits for lot owners and is only there to benefit the manager! This particularly crops up because every so often the terms of the agreements and the terms of the engagement need to be extended or reviewed, resulting in the need for a variation deed to be entered into. When this is occurring, a party might decide to advise the owners that the variations deed is only there to benefit the manager – and that is a falsehood! Often, it is not realised that combining the three elements of Management Rights – the Caretaking Agreement with

A party might decide to advise the owners that the variations deed is only there to benefit the manager – and that is a falsehood!

John Punch, Partner, SP&G Lawyers

the Body Corporate, the onsite Letting Agency arrangements with owners and the ownership by the Manager of an area of reception desk, office and living quarters (manager’s unit) by the manager, gives owners a very secure and reasonably priced coverage for all of the owner’s needs. A major benefit to all parties is the fact that the manager can “double task” with a resulting economy of scale (the caretaking and letting activities combined into one operation) whereby the cost of caretaking of the common property, including the gardens, interior, and exterior of the building, is completed at far lesser cost than if a completely separate property management group had to be involved. This is particularly so for any medium or large size projects. Subsidisation of the cost of caretaking by the manager often occurs, as a result – with savings to all owners not just the letting ones! Then there is the aspect of having an “interested onsite manager” being constantly available or for all owners needs, with an owners vested interests and a residence in the building. Also, there is the comfort to absentee owners of knowing that their tenanted lot is constantly cared for by their agent, living at the building complex and being aware of the tenant’s use of their lot, rather than being office bound away from their property. So, when someone presents the “false statement” that the management rights and associated agreements with the body corporate only benefit the manager, there needs to be a resounding reply – “that is

a falsity!”. As a practitioner in legal matters, I was particularly reminded of this recently, when a body corporate committee for a prominent high-rise building of apartments, consulted me for its needs as regards a Caretaking Agreement. Many years ago, a few protagonists in the building had destroyed some of the elements of the management rights, by hiving off the Caretaking Agreement from the letting agent, who still owns and runs the reception area and the letting of units for owners in the building. It is now being realised that having an annually, renewable contract with an external party is not so good! The strains on the committee members, competing interests and desires of various owners and the constant supervising of an offsite contractor, has led some of the current committee to wonder why the caretaking was not left on a long term Contract commitment with the onsite letting manager – the manager being onsite, with office/reception and the conduct of letting the owners’ tenancies. Then there are the legalities, with the limit on spending decisions in general meetings of owners in the body corporate, which means that several “quotes” for the caretaking must be obtained (even if the current contractor is doing a good job) whenever the contract is remade and producing the necessity of a motion with “alternatives” for owners choice of contractors. This must happen before there can be an annual engagement rather than an extension of the Caretaking Contract.

MANAGEMENT

Recently, the Body Corporate Commissioner ordered that a renewal of a Caretaker’s Contract Motion, had not been validly passed. It would have been different if the caretaker was running full management rights, under agreements for both caretaking and letting. Now, an EGM must be held and the committee must find several alternatives to offer owners, for the caretaking services! None of this is necessary when “standard” management rights on long-term commitment are in place via the body corporate and agreements are made for both caretaking and letting. So, I get back to my original point, we have an excellent, well thought out and balanced system, as to parties needs and rights in Queensland. This occurs with long-term contracts to managers, who have a vested interest in the building as a lot owner and business operator. The system does benefit all parties – not just the manager! The correct message has to be constantly repeated, to owners, committees, body corporate managers, and their legal advisors. NB: John Punch was appointed by the Real Estate Institution of Queensland to be its official advisor and representative with the Queensland Government in the 1990s to assist with the production of the Body Corporate and Community Management Act, in consultation with representatives of all other interested groups, which resulted in the Body Corporate and Community Management Act 1997 for Queensland. ResortNews | October 2020

rules now law The extended provisions are set to commence September 28.

The big change to take effect is a drop in payment rate

This follows the news that new legislation passed, September 15, with ATO application guidance being released in dribs and drabs in the weeks since. The big change to take effect from September 28, for the next six months, is a drop in the payment rate and how businesses are required to assess the applicable rate per employee. Employers eligible for JobKeeper 2.0 will be entitled to either $1,200 (Tier 1) or $1,000 (Tier 2) per fortnight for the December 2020 quarter and to either $1,000 (Tier 1) or $750 (Tier 2) per fortnight for the March quarter depending which ‘’Tier rate” the eligible employee is entitled to. To determine which Tier rate per eligible employee, employers are required to review the hours each employee worked in an applicable reference period, either the four weeks prior to March 1, or July 1, 2020. Employers can ‘pick’ the period in which the employee worked the most hours, from either of those periods, to determine the fortnightly Tier rate applicable. Where employees worked for 80 hours or more in the applicable four-week period, they will be eligible for Tier 1 rates and less than 80 hours for Tier 2 rates. You may use an alternate reference period to determine the Tier rate where the preMarch or pre-July reference periods are not suitable, such as where an employee was stood down, was on leave etc. The ATO website lays out several examples depending the reason the reference period was not representative for each employee. The other important difference compared to Jobkeeper 1.0 is in determining eligibility as a business. A business will ResortNews | October 2020

Lel Parnis, Partner, Holmans Accounting

only be eligible provided they meet the decline in turnover tests with regard to the actual GST turnover for the quarters ending September 30, 2020 and December 31, 2020 compared to a comparable period, generally the same quarter in 2019. Which means, businesses may not be certain as to their eligibility until completion of their accounts for those periods. To determine eligibility, businesses must review turnover on a cash or accrual basis – there is no option here, you must use the same basis as used to report GST on your BAS, this differs to the JobKeeper 1.0 where there was flexibility on this. The ATO has issued the updated ‘Alternate Decline in Turnover’ tests for JobKeeper 2.0 but largely they remain unchanged. The same seven circumstances are available to businesses where there is not an appropriate relevant comparison period in 2019, whether due to being a new business, affected by drought/fires, or were experiencing a substantial period of growth prior to the COVID-19 Pandemic. The ATO guidance sets out each example and the appropriate reference period for assessing eligibility for JobKeeper 2.0. I recommend liaising with your accountant if the quarters ended September 30, 2019 and December 31, 2019 where not appropriate comparison periods.

What can you do to ensure you do not miss out? Diligent bookkeeping tops the list. Ensure you are keeping your records up to date as much as possible, particularly after quarter end so you can confirm your eligibility for JobKeeper 2.0 and access the government support without delay. Further, make sure your bookkeeping records are

BY ALL ACCOUNTS

JobKeeper 2.0

correct, mis-labelling nonreportable income as ‘GST Free’ rather than ‘BAS Excluded’ in your bookkeeping soft ware could result in you reporting higher income in error and potentially failing the decline in turnover test. If you have not already done so, please ensure you have access to the ATO Business Portal to report the monthly declaration to the ATO and stay up to date with JobKeeper reporting requirements.

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

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

MANAGEMENT

THINKING MR

Tips for vendors: Maximising price and minimising stress When listing your management rights for sale, it is important to appreciate that much of the information you provide will ultimately inform buyer offers and support a bank finance application. The more accurate and complete the information provided from the outset the more confident a buyer can be and the less chance of challenges as the process unfolds. The maxim in valuation has always been certainty = value, so it stands to reason that accurate and detailed listing information will attract the most appealing offers. In our business, we use the listing information to pre-qualify buyers so any errors or omissions can have a material impact on the validity of that process. Ideally, here is what buyers, banks and finance brokers like to see.

Information memorandum Prepared in a professional and concise fashion by a wellregarded and experienced management rights broker. It is imperative that information about agreement terms, letting pool composition, body corporate salary, reside onsite provisions and exclusive use areas be accurate. Professional brokers will usually also include some background information regarding the property, the geographic location and key business drivers.

COVID-19 Buyers and lenders will want to understand any impact on trade related to COVID-19. A summary of the situation and strategies being employed by management will be well regarded. If you are seeing no real impact explain why.

suggest that vendors consider ensuring their agreements are Gallery Vie friendly.

Letting appointments

Mike Phipps, Director, Mike Phipps Finance

Vendors should be encouraged to complete the current industry standard COVID-19 questionnaire.

Financial statements Listings should always be supported by an industry accountant prepared special purpose profit and loss report reflecting the last 12 months trade. The report should include commentary and assumptions and should include specific comment around “once only” events. Ideally vendors should be encouraged to provide more than one accounting period P&L statements. This is particularly the case when once in a lifetime events such as COVID-19 have impacted trading periods. Buyers, valuers, and banks are keen to ascertain the sustainable net profit rather than focus on a single accounting period. The capacity to demonstrate that extraordinary events are a “blip on the radar” in an otherwise strong and profitable business will be well received and help to sustain value. A well-researched cash flow forecast with assumptions is always a strong positive.

Agreement terms and Gallery Vie Copies of current agreements and any deeds of variation should be readily available. This is particularly true in respect of calculating total agreement terms. We would also

Make sure all are current and reflect authorisation to render the charges that are reflected as income in your P&L. If in doubt get them updated as part of the sale process. If you have the old form 20A and are not updating, ensure the forms have assignment authorisations.

Operational manuals, newsletters, marketing plans, processes and compliance These types of documents fall into the “nice to have” category. Having said that we note that managers who have well documented business practices tend to have more successful businesses and hence attract stronger offers when the time comes to sell. Having the capacity to show a buyer that all processes and plans are documented gives a level of comfort to both buyers and lenders and, in our experience, drives higher demand for the subject asset. New buyers are understandably apprehensive so showing them they are taking over a well-oiled machine provides a degree of certainty that will often be reflected in a strong price. Likewise, reassuring a buyer that comprehensive training and some degree of short-term mentoring will be available are great strategies in attracting interest in your business.

Body corporate Strong relationships with bodies corporate are seen as a major positive by buyers, their advisors and lenders. If you have evidence that the body corporate loves you and, more importantly, loves the idea of management rights in their scheme, give some thought to using this information

MANAGEMENT

to your advantage. As a minimum, let your agent know.

Pre-qualified buyers We go through a detailed process to pre-qualify buyers. This is not a finance pre-approval process (there is no such thing as a pre-approval and beware anyone who says they have one). The pre-qualification process is a detailed analysis of the proposed transaction and in-depth discussions and fact finding with the buyer. The subject transaction is workshopped with lenders and only after we have a high degree of confidence do we confirm pre-qualification. The process is time consuming and requires a well-resourced finance broker team to undertake. It’s also critical that we can appropriately review lender responses to ensure there’s a reasonable chance that the bank will do what they say. Importantly, pre-qualification is not a simple calculation of equity = maximum purchase price. A caveat. Bank credit policies change rapidly, and buyers do not always tell us the full story. While we dig deep there is always a risk of a left field surprise. Ideally, we hold pre-qualifications under a range of bank policies and in need we can shift from one bank to another. Put simply, a pre-qualification is not a guarantee of finance approval, it is just the closest we can get. As a vendor, we believe you have every right to request formal finance pre-qualification confirmation from prospective buyers. We are happy to assist buyers on a fee free basis. In closing, we think it is important for vendors to understand that times have changed. The premise that says “I bought this way; I’m selling this way” simply no longer cuts it. The game has moved on and sophisticated vendors continue to achieve strong multiples by moving with it. ResortNews | October 2020

MOTEL MARKET

During times of uncertainty… A general shift in market sentiment towards freehold investment has really become more evident over the past nine months

We all look for security. Whether we are wondering where to park money, what to invest in, or where to live, we want to be secure in our personal wellbeing and finances. Business acquisition is part of this with investment decisions and attitudes adapting with changing times. Over the past 12 months, what we have been seeing in the motel and caravan park industries is a shift in buying interest to businesses that are seen as more secure long-term investments. This is across all three prime tenures of ownership, freehold going concern, freehold passive investment and leasehold. Freehold going concerns have seen operators and investors

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

seeking the security of the freehold tenure that such a business offers. The operational side of the business, whether operated by the owner or under management, combined with the solid base of land and buildings underpinning the business operation. The fluctuations of the

RELIEF MANAGEMENT

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business’ trading from stronger periods to quieter are not such an issue for the operator with the strength of the business secured by the physical asset. In real terms demand has been growing for this investment vehicle probably over the last few years. Further down the line, there does come a point for any freehold business owner when it is time for a change in lifestyle or a search for new challenges. Once the freehold going concern operator has had enough of the day-to-day operation (yet is not ready to sell the property), the opportunity to lease the property at any stage is available, if operating under management at that time does not check all the boxes. The freehold passive investment market is keenly sought after. The demand for this investment option is strong. The land and buildings leased to an operator is in demand by those seeking a passive investment and a place to park their funds in exchange for a yield far in excess of what is being offered by fixed term deposits. The low interest rates for the safe haven of a bank is not what this market is seeking and as a result demand for accommodation properties is high and growing. Depending on location of course, yields above 8.5 percent are very attractive with a solid accommodation business holding a lease over the property. Recently the leasehold tenure has not been as attractive to investors as freehold unless there is evidence of strong trading performance and a long lease in place. The long lease motels offer is a solid and secure tenure, often

MANAGEMENT

argued that such a long lease is almost as good as freehold tenure. A general shift in market sentiment towards freehold investment has really become more evident over the past nine months or more with enquiry levels increasing for the freehold motel-based business. This may be due to the perceived uncertainty of the economic climate, international political and economic actions, etc. There are many possible explanations, however uncertainty creates a desire for security. What is the safest to invest in and also what suits our individual risk aversion level in such times. It could easily be perceived that now is not a good time to invest in buying an accommodation business because of the state travel bans in place, etc (at the time of writing). On the surface, that may seem logical. Alternatively, one could argue that the risk level for accommodation businesses going forward is very low due to the amount of increased intra-state travel that is currently occurring and will most likely continue for quite a while. This will be further boosted as state travel restrictions are reduced in the coming weeks or months and travellers from interstate want to get to Queensland either for a holiday or to visit family, and in many cases potentially staying more permanently for their perceived financial and personal security. This makes the Queensland short-term accommodation industry look quite attractive as a positive industry to invest in going forward. ResortNews | October 2020

Weekend getaways: The recovery begins By Kaitlyn Meehan, Cash Flow It Group.

There is no doubt that accommodation providers are one of the hardest hit sectors because of Australia’s COVID-19 travel restrictions. As the situation begins to improve across most Australian states, travel and venue restrictions are easing. So now, we can see the beginnings of recovery for the country’s accommodation sector. The role that domestic travel will have in this recovery is significant. With many state borders remaining shut for leisure purposes, travellers will be looking to visit local destinations. It is predicted that regional towns will be high on the list as people look to support community economies, with many still

Weekend getaways will likely prove to be the catalyst that gets Australia’s accommodation industry on the road to recovery. struggling from the devastating bushfires. However, that is not to say that CBD accommodation will not be a popular option, with the revival of the weekend getaway. Tourism Research Australia found that domestic overnight travellers were actually higher spenders than those coming internationally, pouring $107 billion into the economy compared to the $31 billion that came from international guests. These statistics should be positive news for a struggling tourism sector, that likely will not see international visitors until well into 2021. While it is unrealistic to expect Australians to match this spend in 2020, as thousands struggle with reduced

income, it does indicate that our local audience is an asset for the tourism sector. It is predicted that travel will remain highly seasonal, and school holidays should play a significant role in the timing of domestic trips. An increase in spontaneous getaways is also expected because people have been so eager to get out and about once restrictions ease. Furthermore, as workplaces begin to return to their offices and interstate borders open, we can expect to see a surge in business travel. Perth and Brisbane, in particular, are expected to experience a solid recovery. Perth has proven to be the strongest market in

the post COVID-19 landscape with a spike in weekend city stays from both locals and interstate workers currently staying in WA. Further, Brisbane has seen a rise in demand for the Friday-Sunday stay, which is being charged at a premium rate compared to weekday guests. So, while international travel remains off the table, we can expect to see more Australians spending their weekends tucked away in a CBD high-rise or exploring the charm of a nearby regional town. These weekend getaways will likely prove to be the catalyst that gets Australia’s accommodation industry on the road to recovery.

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ACCOMMODATION FINANCE AUSTRALIA

ResortNews | October 2020

MANAGEMENT

Building management software

in the accommodation industry The hotel and accommodation industry has seen significant growth and change over the years, with the introduction of AIRBNB forcing businesses to make changes swiftly to keep up. Consequently, the use of technology is more important than ever. Hotels that have leveraged cloud based soft ware to keep track of their data have recognised the improvements this can have on a business is exponential. What are some of the benefits that cloud based soft ware can have on a business of this calibre? We have put together five improvements that a cloud based soft ware solution can make for your business.

Resource saving actions The hotel industry runs on acting in the best interest of resources at all times. As some services are required 24/7, and others are needed as soon as they are flagged, it is vital that appropriate actions are taken to save these precious resources in the long run. Using a cloud based solution to track data and keep in contact with the necessary parties to complete tasks enables a team to better manage their actions. The data that is stored throughout these tasks can then be accessed and used to make future decisions on where resources are best placed and how the service can be improved, saving time and money.

service and understand their needs. A cloud based soft ware can help you to gain a faster connection with your customers through personalised app integrations and communication opportunities.

The protection of this information is vital to ensure you build up your brand as one that can be trusted. By eliminating the need for

Offering technology such as this to your customers can additionally present your brand as one that is ahead of the curve, which is always a positive angle.

an on site desktop system, resources can be protected with many security features including soft ware updates and regular checks for bugs. Cloud systems can also give businesses complete control over who can view particular sections of data, keeping the sensitive information in the right hands.

Accessibility and ďŹ&#x201A;exibility

Data security Security is extremely important, particularly when you are receiving the personal information of thousands of people from around the world per year.

In a time where COVID-19 has forced all businesses to reconsider how work is completed, a cloud based soft ware can be an invaluable addition to the team.

Customer focused approach We live in a digital age where there is almost an expectation that services are personalised to each individual and their needs. When a business such as one in the hotel industry has new customers moving through everyday, it is vital to be fast in how you approach customer

MANAGEMENT

ResortNews | October 2020

Giving your staff the opportunity to access data from anywhere at any time means cloud based software can be immediately leveraged in the event a pandemic forces closure of business again. This will allow for improved productivity during a time when work may need to be halted, and can give peace of mind to those who are still using your service. This is also

relevant to those hotels who may be offering stays to those in isolation. A cloud based solution can help your team keep in contact with the customer and provide them with a service while offering your staff a safe working environment.

Productivity Productivity is something that

all businesses strive to increase. For those who are able to offer new and exciting ways to complete work, they may find improvements in their team members general wellbeing and productivity. Use of a cloud based solution can help your employees train new members of the team and provide them with a good framework to begin their new position.

Additionally, use of a service that allows for the digitisation of data can free up your team for improved customer service and better facility management all round. For more information on cloud based software solutions for hotels and accommodation management, visit mybos.com.

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ResortNews | October 2020

MANAGEMENT

INTONET

Don’t wash your phone with the bedsheets

You all remembered Father’s Day, didn’t you?

on a map and, from what I have found, it is accurate.

Of course, you did! Now I have lived a few years and always thought that being a dad meant you got some pressies and at least a nice breakfast. That, however, is not a gold standard rule; I can assure you that it is written somewhere that you are not only a receiver but also a giver if circumstances decree!

Just as an aside: I am a fan of “find-it” gadgets and have attached the Tile device to many keys and purses which in turn has saved me hours of turmoil!

I found that out when someone who shall remain nameless backed a car over a mobile phone. Long story short, I discovered that the household had quite a collection of discarded phones which were missing the latest bells and whistles but otherwise fully functional. I am sure I am not the first nor only person to wonder what one could do with them and so, here is my partial list which you may care to extend. The first feature that came to

Arvo Elias, Cybercons

mind during a BBQ discussion with some friends who are keen campers was GPS tracking. Prett y much every smartphone has a built-in GPS function. Normally this is used for mapping and navigation, but it is also used to locate a lost or stolen phone using the Find My Phone application. Find My Phone comes standard with all flavours of systems and basically allows you to view the location of any other device you own using the internal GPS. The location is displayed

An old phone in your caravan or camper and connected to a constant 12V source can act as a GPS locator in the event your pride and joy is stolen. Wherever the caravan or boat goes, the phone will go. Obviously, you will need to install a separate SIM card for the phone to work. I am sure you are aware of a number of carriers who offer a ‘pay as you go’ or prepaid account that has a validity period of 12 months for any credit you put on the card. You can put a minimum of $10 on the account, and this will last you a year or until you run out of data credit. A dedicated GPS tracking device can cost anywhere between $300 and $1000, depending on functionality, so

MANAGEMENT

the savings on this function alone justify keeping a spare phone in your van. I am giving you holiday travel examples but obviously that is not a limiting factor. A video surveillance camera is another great application. If you have a look on your favourite application store, you will find a variety of video surveillance applications that turn a spare mobile phone equipped with a camera into an IP camera that can be accessed remotely from another smartphone. Some apps, like Surveillance Pro, allow two-way video and audio communications. If you travel with dogs and, for whatever reason, you need to leave them in your vehicle for a short period of time, you can monitor them and ensure they are okay and not barking. You could also place the phone in a window to keep an eye on your campsite, never mind the ankle biters in ResortNews | October 2020

your back yard. The uses for this are endless. Installing a similar dedicated IP camera could cost upwards of $150.

room monitors at home if you are equipped to run a mini wifi system. Load it up with games and you have amusement for all.

Another feature of most phones is the in-built position and accelerometer sensors that are used to, among other things, detect the movement and orientation of the phone itself. It allows the screen to rotate between portrait and landscape modes automatically or for applications like the digital spirit level.

Regardless of the precise need you may have a Walkie-Talkie facility can be invaluable when, for instance, parking your boat or trailer in a difficult spot. This great feature available on all smartphones is called Push to Talk, and it allows phones to communicate with each other without using valuable data or phone credit turning your phones into walkie talkies. Just do a search on ‘push to talk’ apps on the App Store. It could save you $50 or more on a dedicated portable radio.

Now, some enterprising people have come up with an app that sends this positional data to another smartphone remotely, allowing the spare phone in the van or camper to tell the driver when it is level. The app is called StayLevel and suits both systems. It is a clever design that allows you to park your van in the most level position on a campsite before unhitching it from the tow vehicle. It should avoid one of the most common causes of arguments between couples and prevent you from rolling out of an uneven bed at night! Again, devices can be purchased for this very purpose that cost upwards of $350. Whether you are a traveller or not a spare phone can also become a prett y good juke box just like the old iPods and in fact better. And whilst we are on entertainment an old phone can also become a movie library which can connect to a TV set and provide hours of entertainment. An add on memory card will allow for quite a video library. And of course options like Netflix can provide hours of entertainment on rainy days. Then there are options for

There are so many different moving parts to Management Rights ownership. Liam Kennedy Consultancy Services specialise in ensuring all of those moving parts are optimised and functioning correctly. Whether you are new to the industry, looking to set the business up for sale, or needing assistance in day-to-day operations, LKCS can help you. Our services include: - Caretaking agreement top ups/new agreements - Understanding caretaker responsibilities - Repairing and mediating Body Corporate relationships - Strengthening and maintaining owner relationships - Strategic planning to protect and grow your letting pool - Optimisation of marketing opportunities - Front and back of house advice

If, after all, you do decide to sell your old unit for a very small amount please be sure to do a Factory Reset to be certain that all data has been deleted. Using file managers or simply uninstalling apps will not clear a plethora of private data and will leave you with sensitive information such as banking or access details at great risk.

Please contact Liam Kennedy m 0412 365 251 | e liam@lkcs.com.au | w lkcs.com.au

And just because you have put your phone through a full wash cycle in your washing machine do not assume that things are unrecoverable. My grown-up daughter has done that twice now after drying her Samsung out in rice grains to fully restore it. She is a very capable business lady, love her dearly, but I thought I had taught her better! Unbelievable but true! And no, I am not encouraging you to follow that example no matter how good the phone may be. I am sure neither your sheets or washer need to listen to Spotify while things tumble.

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ResortNews | October 2020

MANAGEMENT

GOOD GOVERNANCE

Fire door defects may be builder’s defects Any element of a fire protection system is considered an essential system and part of the structure of the building.

Quite rightly, the Owner’s Corporation committee were outraged. Fortunately, we had been involved in hand-over from the builder to the owner’s corporation, so we were able to identify that:

Therefore, if dysfunctional or non-compliant, repairs are claimable under the builder’s warranty as a structural defect. Structural defects have a substantial warranty period (differs from state-to-state, but at least five years), however if the routine servicing is not completed in accordance with mandatory requirements, the builder’s warranty is voided.

Routine servicing of fire doors Depending on the class of building the first service of fire doors must occur at either six months or 12 months following practical completion of construction. Servicing of fire doors includes inspecting the fire door operates as it is supposed to including checking hardware function, door seals and gaps, hinges, and screws, etc. More than 10 years ago, the fire door service contractor would charge a fixed fee to come to site and service/test the fire doors. He brought the tools, spare parts and consumables typically required to repair and service fire doors during the service inspection. Any issues he discovered on site would have been tweaked/ adjusted/repaired on-the-spot, as part of the service fee.

•

60 percent of the “defects” listed on the quote were not defects at all, but instead upgrades industriously encouraged by the contractor

•

35 percent of the “defects” listed on the quote were claimable under the builder’s warranty (and duly repaired by the Builder at no cost to the building owner)

Lynda Kypriadakis, Diverse FMX

Bodies Corporate are now paying twice: once for the “service fee” and again for the… “service fee”. It makes no sense (except to the company receiving said fees).

Buyer beware One substantial strata property in the Sydney CBD was issued a $100,000+ quote for fire door repairs following the first “service” of their brand-new building. As you can imagine, the owner’s corporation committee nearly fell over. Quoted costs included $117+GST to “adjust door closer”; or $122+GST to “install missing hinge screw”. I think anyone that lives in a Class 2 apartment building knows that adjusting a door closer only takes moments to complete and installing a missing screw (provided you have the right tools and said screw), also only takes seconds.

•

Five percent of the “defects” were normal wear-andtear issues remedied by the owner’s corporation

Building defects include defects in the fire protection system It is fundamental that the building owner (body corporate or owners corporation) get the routine servicing and testing of their fire doors done within the timelines mandated under Australian Standard 1851. Any defects arising in the first service are most likely building defects, claimable under the builder’s warranty.

The most common builder’s defects associated with fire doors includes failure to paint tops/ bottoms of doors, and incorrect gaps around the door. These are all claimable under the builder’s warranty and should not be a cost borne by the building owner. The fire services contractor is unlikely to tell the building owner that issues discovered may be building defects and claimable under the builder’s warranty. The building owner needs to get independent advice on this as early in the life of the building as possible.

Failure to maintain fire doors will void the Builder’s warranty Building owners that fail to get their fire doors tested within the schedules prescribed within the standard will miss out on their opportunity to claim defects under the builder’s warranty. Even with a structural defect liability period of over five years, a defect in a fire door discovered when the building is four years old may not be claimable if the routine servicing has not been done in accordance with AS1851. The first routine service of fire doors is when the builder’s defects will show up.

Nowadays, the fire door servicing contractor still charges the same fee to come to site to conduct a “service”, but instead of bringing the tools necessary to service the doors, he only arrives with a pen and paper in hand.

The “service” fee now tends to simply cover the contractors time to look at all the doors so as to prepare a list of issues that need repairing so he can provide a quote for coming back a second time to do the “service” works he was engaged to do in the first place! MANAGEMENT

ResortNews | October 2020

The new QLD smoke alarm laws you must comply with You must upgrade your properties – it’s the law You only have until the end of next year to have all your rental units upgraded to meet the new Queensland smoke alarm legislation. Properties that do not comply by the deadline cannot be rented out and rental income cannot be collected. There is also a financial penalty for noncompliance. From 1st January 2022, every rental property must: •

•

Have only 240v or 10 year lithium battery photoelectric smoke alarms All smoke alarms must meet AS3786-2014

ResortNews | October 2020

•

Have smoke alarms inside every bedroom as well as between the bedrooms and the rest of the property

•

All smoke alarms must be interconnected so that if one goes off, they all go off.

Only 10% of rental properties have been upgraded to date, so the demand next year will far exceed the supply of qualified people to do this work. The time to act is now. Smoke Alarm Integrity are smoke alarm specialists. They can advise and guide you through the regulations and how to achieve 100% compliance before the deadline. They are extremely costcompetitive and provide free

quotations for each unit in your complex for you to present to your owners. A brilliant product provided by Smoke Alarm Integrity is their Smoke Alarm Controller – the best invention in smoke alarms since the smoke alarm itself. Finally a way to silence smoke alarms in the middle of the night. The Controller is an absolute must when all the smoke alarms are interconnected and particularly so in unit blocks. The Controller will stop activated alarms from annoying all their neighbours. The Controller is a wall mounted switch that is completely wireless with a 10 year battery – no wiring required. One button

MANAGEMENT

– three functions. Test, locate and silence. Instantly locate which alarm is false alarming and instantly silence the alarms by pushing one button. Smoke Alarm Integrity is the Building and Resident Managers smoke alarm company of choice. Having completed thousands of upgrades, they will provide you with guidance, quotations and a money saving solution for you to achieve 100%. You can contact Vicki Bailey on 0423 254 542 or by email vicki@ smokealarmintegrity.com.au. The time to act is now before it’s too late. Upgrading isn’t an option – it’s the law.

Fire safety requires expert advice By Grantlee Kieza, Industry Reporter

Buyer beware. An industry leader warns Queensland building managers to do their homework before hiring anyone in the fire safety field.

“Fire safety regulation has evolved over time,’’ says Stefan Bauer, a 21-year veteran of the industry, “and one of the biggest changes is that every fire safety practitioner in Queensland has to be licensed. “But there a lot of people advertising to do work in the industry who don’t have the correct licensing. “At the end of the day all the legal responsibility for fire safety at an accommodation building rests with the manager of that building and they could be the least qualified person in the entire chain. “The building manager must make sure that all the fire safety work and maintenance is done by someone who is appropriately qualified. “Building managers also shouldn’t blindly accept what their service provider provides them as being fire safety compliant. “A lot of building managers put their total trust in their fire service company but the company is only as good as their people and some may have only been in the industry for a very short time.” Bauer is a fire compliance specialist and the founder of Fire Matters, a company that specialises in third party compliance audits of fire safety equipment and installations. He says that ongoing compliance is “the most problematic” issue over fire safety that building managers face. “When many building managers or owners look for a maintenance contract in fire safety, they generally get three quotes and guess which one almost always

wins – the cheapest,” he said. “If they choose the cheapest provider, that’s usually the standard of service they get. That’s why we recommend third party audits. “We get called in by building managers to check on all the fire safety work and maintenance that has been done through the year and to provide a certificate that it is compliant.” He said the bushfire season made it even more important that building managers had a well-rehearsed fire evacuation plan in place. Bauer said smoke alarms in Queensland were now mandated to be photoelectric “which are much quicker to react to a smouldering fire than ionization smoke alarms” and which could be interconnected to give much more precise locations for a smouldering fire before it took hold. Older accommodation buildings may have a conventional fire alarm system and when an alarm was raised on say on Level 5 of a building and the alarm sounded you would have to check every room on that floor “With the new addressable systems you can tell exactly what room and even what area of the

room where smoke has been detected. “So that speeds up the response time enormously and makes everyone a lot safer.’’ Queensland fire safety is governed by the Building and Fire Safety Regulation and the Queensland Development Code Mandatory Part 6.1 which relates to the commissioning and maintenance of fire safety installation. “The legislation makes it mandatory to maintain all prescribed fire safety installations within a building,” Bauer said. “Short-term accommodation buildings are Class 3 buildings so depending on the height they would all have extinguishers, hose reels and fire detection systems. The taller they get they may have a hydrant system or sprinkler system, fire doors and emergency exit lighting. “All those items need to be maintained in line with the legislation and it is the occupier responsibility that everything is correctly documented so that the compliance with the legislation can be demonstrated. “Building managers have to train all their staff and personnel upon employment and on an annual basis to understand all

MANAGEMENT

the fire safety features in the building and how they are used. “Once they have done all their maintenance for 12 months, they need to then compile an occupier statement and submit this to QLD Fire and Emergency Services on an annual basis. All maintenance and corrective action documentation must be kept for two years as legislation is retrospective and all documentation must be provided after a fire event. If you have a fire you will be asked for all this information for the last two years. Bauer said because it was “tough to have fire drills in short term accommodation buildings” managers were required, as a minimum , to have simulated evacuation practice with their staff and to have procedures in place so they can get all the people out quickly from an affected area. He said manufacturing regulations meant there wasn’t much of a difference in the quality of equipment provided by competing fire safety companies. “The big difference is in the service, installation and maintenance. Building managers must do their homework to make sure they are getting quality,’’ he said. ResortNews | October 2020

Basic fire safety checklist for residential strata:

Establishment compliance checklist By Lynda Kypriadakis, Diverse FMX

Documentation that should be provided by the Developer at the first AGM for the newly registered strata scheme. This information should be kept onsite and on file for the full life of the building. Service contractors and the fire regulator need to refer to this documentation from time-to-time. Legend: M = Monthly

6M = Six-monthly

A = Annually 5-YR = 5 yearly 10-YR = 10 yearly

NOTE: Information above is general in nature. Building owners are encouraged to get site-specific advice around maintenance of their specific fire safety installations.

ResortNews | October 2020

Item

Detail

Baseline data

As per Appendix C of AS1851

Tick

â&#x20AC;&#x2DC;As constructedâ&#x20AC;&#x2122; documentation

Plans and compliance certificates from construction

Occupancy permit

Includes building classification

ABS

Alternative Building Solution: management in-use documentation

Routine servicing checklist Maintenance of fire safety installations is mandatory in Australia. Records of maintenance and compliance certificates must be retained as evidence of compliance and for insurance purposes. Item 1 2 3 4 5 6 7 8 9 10 11 12

Detail Detection & Alarm Systems Doors & Hardware Sprinkler System Hydrant System Fire Pumpsets Fire Hose Reels Fire Extinguishers Passive Penetrations etc. Dampers Mechanical [carpark exhaust & stair-press] Interface testing Evacuation Plan

MANAGEMENT

Service Routine Compliance Records Required M, 6M, A, 5-YR 6M, A M, 6M, A, 5-YR, 10-YR Service Record M, 6M, A, 5-YR, 10-YR Annual Compliance Certificate M, 6M, A, 5-YR Yearly Condition Report 6M, A (2 consecutive years on file) 6M, A, 5-YR Evacuation Plan A Records of evacuation training 3M, 6M, A 3M, 6M, A As per test schedule A

TOURISM REPORT

Dark Tourism: A secret shining light for industry? For 22 years, Jack Sim has been wallowing in the underbelly of Brisbane crime, one of Australia’s leading figures in a tourism sector that had its origins more than 200 years ago on the battlefield of Waterloo. The American journal The Atlantic has estimated that ‘Dark Tourism’, including the broader adventure-tourism industry to war zones and political hotspots, was worth a staggering US$263 billion a year. While much of Australia’s accommodation industry is suffering through COVID-19, Sim says the Dark Tourism sector is being resurrected with the help of ghost tours and cemetery visits. Sim runs Historic Australia, Brisbane Ghost Tours and Brisbane Crime Tours, which includes visits to the Boggo Road Gaol, where some of Australia’s worst criminals were imprisoned or hanged. He says the majority of his

customers do not have a morbid fascination of the dark side of life so much as a deep interest in historical aspects of crime and the judicial process. “I’ve been doing this for 22 years and I’ve taken judges, barristers and police on the tours as well as regular tourists,’’ he says. People are fascinated by historic crimes and the court system.’ In Australia, the Dark Tourism industry has centred on our most notorious prisons including the convict ruins of Port Arthur in Tasmania and the Old Melbourne Gaol, where Ned Kelly was hanged, as well as various police museums, cemeteries and murder sites around the country. Recently there has been outrage over suggestions to establish a crime museum on the site of the Snowtown murders in South Australia and there has been condemnation of tours of the Belanglo State Forest in NSW, where Ivan Milat murdered seven backpackers. Alison Oborn, who was inducted into the South Australian Tourism Hall of Fame, runs Adelaide’s award-winning Haunted Horizons Ghost Tours, and says

she is aghast at using recent crimes to promote tourism. “There has to be an ethical line,’’ she says, “and I wouldn’t want to be stepping over that line when there are still relatives who could be hurt and offended. “There is a difference in educating people about history compared with simply glorifying a terrible crime. “Everything on our Dark History tours is capped at 1950 to ensure no one still living is upset.’’ For 10 years, Oborn has been running ghost tours at the notorious Old Adelaide Gaol, where 45 executions took place, and at Adelaide’s Z Ward Asylum for the criminally insane. Her interest was sparked after becoming the jail’s official researcher in 2002, though she has been researching the paranormal for 30 years. Oborn said her business was shut down for two months from March because of COVID “but since we came back we are booking out’’. She said the tours attracted 300 people a week and “before

TOURISM

COVID that represented a lot of people booking accommodation with many of them from interstate and other parts of South Australia. “We have even had guests from as far away as Iceland. “People are fascinated with tours such as this. England has 10,000 sites that are now listed as haunted locations and America is starting to clock them up as well.’’ The early tourism operator Thomas Cook took people on rail excursions to see public hangings in England in the mid-1800s, and Jack Sim says the world’s fascination with Dark Tourism was accelerated by the Jack the Ripper murders in London in the late 19th century. To this day the haunts of the mysterious serial killer are still a popular attraction for tourists to the English capital. Alison Oborn says the “multibillion-dollar” industry had its origins even earlier than that. “People were paying to visit battle sites such as Waterloo (in Belgium in 1815) to watch the fighting,’’ she said. ResortNews | October 2020

By Grantlee Kieza

Is it the year of the caravan and camping holiday? Millennials replacing grey nomads

Images courtesy of Camplify

There are reports across the industry of increased interest in the purchase of caravans and campervans as well as a surge in online enquiries and regional holiday park bookings.

caravanning which is now driving our tourism industry forward.” The data also reveals that 80 percent of CIAA’s consumer audience are considering staying in a caravan park. Most exciting of all, are signs that Post-COVID campers and caravanners are getting younger.

According to Tourism Research Australia, caravan and camping has always been popular with Aussies, who spent a total of 59 million nights caravan and camping in 2019 and this makes it the most popular accommodation option for Australians. On top of its ongoing popularity, the Caravan Industry Association of Australia (CIAA) identified that in 2020 a new (post-COVID) travel norm includes “strong and sustainable resurgence of caravan park occupancy”.

Madeleine Sawyer, Tourism Executive Caravan Industry Association of Australia told us: “The youth market (under 30s) has shown strong signs of growth in the 12-months to March 2020, this group took 3.1 million caravan and camping trips, an 18 percent increase from three years ago. In total they spent 9.5 million nights, a 27 percent increase from three years ago (Tourism Research Australia, NVS, 2020).

Caravan parks seem to be regarded as a safer post-pandemic Accom for travellers. Keelan Howard from CIAA on why caravan parks are considered to be less of a cross contamination risk: “By design, caravan parks have large open spaces, cabin accommodation and many caravans/RVs have their own toilet, shower, kitchen and air con systems reducing the need to use shared facilities. Caravan parks have also increased strong cleaning and hygiene practices in place.” Aussies are global explorers, but now travel is changed, perhaps for many years to come they have turned their sights to their own back yard. The data from CIAA highlights a “rapid uptake” of campers, giving the industry the potential to lead recovery for regional Australia visitor economy. CIAA states: “Coming from ground zero, this early data shows real green-shoots are occurring in ResortNews | October 2020

“The growth in domestic travellers under 30s who are caravan and camping could be attributed to changing lifestyle with an increase young Australians adopting the “van life” movement, as well as the ability for people to travel and continue to work digitally. “Now even more so, working in the confides of an office are becoming less and less essential to success and young Aussies are able to get on the road while continuing to pursue their careers. Caravan and Holiday parks are increasingly catering to this too, with many providing wifi throughout the park and some even having communal spaces to set up and work.”

market” anecdotal evidence from regional Queensland suggests a strong recovery in visitation with some looking set to return pre-COVID growth. Mackay Tourism partnered with Tourism Whitsundays to deliver a Mates Rates campaign that attracted over 36,000 views and is planning a summer campaign to inspire visitation amongst their four-hour drive market. Furthermore, in June, Gladstone and the Discovery Coast reported that Agnes waters and 1770, campsites were nearing capacity. Gus Stedman the CEO of Gladstone Area Promotion and Development Limited told us that the small region successfully focused on its “drive market”. He said: “In particular, the caravan parks on the Discovery Coast are nearly booked out weeks in advance. Our operators are happy with the return of visitors, however hoping that this influx continues in the weeks/months to come. Heron Island has also been reporting great visitation back to the island since the easing of restrictions, again hoping this continues.” The Camplify Report confirms that “Aussie families were eager to hit the road once restrictions were lifted which resulted in an incredible 115 percent increase in demand for winter camping bookings in June compared to 2019. The vast majority of which were organised for the July school holidays. These trends led to a massive increase in bookings on Camplify across the board. Both hard and soft floor camper trailers, which are usually less popular during the Winter months, saw some of the largest increases in booking rates (almost 200

percent compared to 2019)”. Due to being one of the first states to lift restrictions, Camplify also points out that WA saw a surge of early bookings in May “equating to over a 1,200 percent increase in bookings compared to April”. SA and NSW saw “increases of 711 percent and 543 percent in bookings respectively in May”. Furthermore, when local travel restrictions were lifted in Queensland, bookings increased “by 140 percent in June”, accounting for almost a third of Camplify bookings across Australia. The van-sharing site suggests that with overseas holidays on-hold, many families are planning their first domestic camping trip, with the majority of first timers opting for a campervan or motorhome. Stating: “This translated into a 120 percent increase in ‘Drive’ holidays in June compared to 2019. ‘Tow’ holidays also saw significant YOY growth, largely driven by the high proportion of caravan bookings”. The average age of people searching on the site has also decreased significantly. Almost 30 percent of users now falling within the 25-34 category and there has also been significant growth in the 21-24 category. Founder and CEO Justin Hales commented: “Our mission has always been to make vanlife accessible to all. With overseas travel now onhold for the foreseeable future, making camping accessible to Australians has never been more important. We have already seen huge demand for road trips across the country, with families looking for socially distanced holiday options, particularly within their home states.

Camplify is a van sharing platform dubbed “Airbnb for caravans” and has reported a significant rise in Australian winter camping holidays compared to last year alongside a growing number of younger users. Feedback from Accom providers to Resort News confirms the increase in visitors from a “drive TOURISM

New Zealand’s industry body, Tourism Industry Aotearoa (TIA) is pressuring its government to use the COVID-19 pandemic as an opportunity for NZ to become a world leader in sustainable tourism. Should the QLD sector be emulating this move? The NZ Government’s Tourism Futures Taskforce is being urged to take bold steps to address “knotty issues that have been holding the industry back”. TIA Chief Executive Chris Roberts said: “We acknowledge and are supporting the thousands of tourism businesses that are currently fighting to survive. But by stepping out from the current issues, the Taskforce can look towards the tourism industry we, as a country, want to have in 10, 20 or even 30 years and beyond. This is a unique opportunity and we must not waste it.” TIA’s submission presents the Taskforce with five ‘gamechangers’ – bold initiatives that would make fundamental improvements to New Zealand’s tourism industry. They are to:

•

embed sustainability in the industry through TIA’s Tourism Sustainability Commitment

•

develop sustainable funding mechanisms for industry-good activities such as tourism research and data, workforce development, advocacy and policy

•

establish sustainable funding for infrastructure, particularly to support local government investment in infrastructure that is used by both residents and visitors

sectors, tourism suffers from a lack of sustainable funding streams to support industry-wide programmes. Where agriculture has a wellestablished system of levies on commodities like milk solids, meat or wine, tourism cannot easily adapt a levy system to the services provided to travellers.

TIA Chief Executive Chris Roberts

•

improve tourism insight to provide comprehensive and trusted data for the industry

TIA has also identified 10 areas where the Taskforce could recommend progressive changes to enable a wellrun and cohesive tourism system. These are: •

Te Ao Māori

•

Destination management

•

Tourism value

•

Visitor experience

•

Social licence

Roberts said: “Our primary interest is that the fundamentals of the industry are well set. If we get this right, we will have the information, capacity and frameworks in place to address issues as they arise.”

•

Responsible camping

•

Natural environment

•

Carbon and climate change

•

Business operating environment

•

Workforce planning

Unlike New Zealand’s primary

•

Domestic tourism

•

review conservation legislation as it is not designed to meet 21st Century challenges.

Roberts added: “TIA has a progressive and ambitious view of the future of tourism in Aotearoa. We firmly believe New Zealand can lead the world in sustainable tourism. New Zealand is leading the world in our response to the pandemic. We now have the opportunity to use this huge shock to rebuild and revitalise our industry so that it can continue its vital contribution to New Zealand. “Right now, with borders closed, we are seeing what the loss of visitor demand actually feels like around the country – to regional economies, to the many thousands of small tourism businesses, and to all those people who have lost their jobs. The onus falls on us all to not only work to revive the industry, but to bring it back better as a world-class and genuinely sustainable tourism industry to enrich New Zealand and New Zealanders. “An industry that delivers what communities want, that is best for our land and our people, and will be the best it can be for future generations.”

Unlike New Zealand’s primary sectors, tourism suffers from a lack of sustainable funding streams to support industrywide programmes. ©malp - stock.adobe.com

TOURISM INTERNATIONAL

Kiwis pivot toward sustainable tourism during pandemic

TOURISM

ResortNews | October 2020

gets domestic guests excited

THE LAST RESORT

Quirky Kakadu glamping

Kakadu-Yellow Water

One of most used accom industry buzz words used to describe what operators should offer guests is a ‘memorable experience’. This month, I want to shine a light on a truly unforgettable Australian experience, Kakadu National Park. It is a great time to plan a trip at one of the world’s greatest nature reserves and World Heritage listed areas, with the Northern Territory government planning to re-open borders to visitors from October 9. Kakadu National Park offers visitors an assortment of cultural and natural experiences in one of the largest national parks in the world with distances between some of the main attractions that will take even Queenslanders by surprise. The planned border opening and strong local support has also prompted Kakadu’s Cooinda Lodge to reopen their Outback Retreat glamping tents for the first time since March. Cooinda Lodge is a village-style resort area in the heart of Kakadu, offering hotel accommodation, glamping tents and extensive facilities for camping and caravans. It is also the home of Yellow Water Cruises, Yellow Water Fishing, Spirit of Kakadu 4WD Adventures and nearby Warradjan Cultural Centre. All 20 of its outback retreat tents ResortNews | October 2020

glamping accommodation. The glamping tents add to Cooinda Lodge’s hotel-style rooms and extensive camping ground facilities. Cooinda is the base for Yellow Water Cruises, one of Kakadu’s most popular attractions. Rick Allert, Chair of Kakadu Tourism, which operates Cooinda Lodge and Yellow Water Cruises, said the opening of the outback retreat tents would help stimulate tourism to Kakadu for the rest of the year.

Cooinda Lodge Billabong, tent interior. Images supplied by Kakadu Tourism

reopened just in time for the school holidays and Kakadu Bird Week. Cooinda Lodge has been operating a scaled-back range of accommodation as a result of reduced interstate travel and

the impact of COVID-19, but with a massive increase in interest in the destination as well as the prospect of greater accessibility from interstate markets, it was decided to reopen the

Kakadu-Jabiru bird with fish Yellow Water. Photo Bob Burnet

TOURISM

He said: “The loss of most interstate and international markets over what is traditionally our peak season has been a major setback for Kakadu tourism, but we are looking to attract larger numbers in the shoulder season and over summer as the Territory opens up more to domestic travel. “Kakadu can offer Australia’s most prolific wildlife on display every day on Yellow Water Billabong, and with the dramatic landscape, waterfalls, swimming holes and unique Indigenous rock-art and culture, there has never been a better time to plan a visit to Kakadu National Park. “The Outback Retreat glamping tents were only introduced last year and have been tremendously popular as they offer an authentic ‘outback’ accommodation experience, but with plenty of extra comforts like quality bedding for couples and families, fully powered and air-conditioned.”

Keeping up with

the Women in Management

Women in management rightsâ&#x20AC;&#x2122; September luncheon was held at Mecca Bar in Broadbeach, on a beautiful hot afternoon with lots of networking and great conversations to be had. Attendees said the ambience was perfect and organisers told us it was wonderful to see so many new faces. AccomProperties will be one of five official sponsors of Women in Management for 2021 and we can officially announce that Resort News will be helping to promote these wonderful events. We look forward to seeing you at the next one! The next Gold Coast luncheon will be held at The Island Roof Top Bar in Surfers Paradise on Wednesday, October 21, at 12:00. Email marisa@womenin.com.au to RSVP.

The Women in Management lunches are held on the third Wednesday of the month. For more details, please email marisa@womenin.com.au

EVENTS & APPOINTMENTS

ResortNews | October 2020

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Resort Brokers and Sunshine Coast operators get “back to business” For the past six months or more, it’s been tough going for everyone in the accommodation business but at a recent industry event called Back To Business there was good reason for optimism in the room. Held at the Ivory Palms Resort at Noosaville on the Sunshine Coast, around 70 operators and current investors attended the event, which featured a panel of experts who outlined market trends and predictions. Resort Brokers Sunshine Coast Specialists Glenn Millar and Chenoa Daniel hosted the event and featured guest presenters included Mike Phipps from Mike Phipps Finance, Trent Pevy from Pevy Lawyers and Tony Rossiter from Holman’s Accountants. The panel also held a Q&A session with those in the room. “The turnout was way more than we anticipated, and this highlights the fact that there is a lot of optimism in the market and we all expect this to turn into momentum very soon,” said Millar. “Our expert panel of Mike, Trent and Tony have several decades of experience between them and it was a great opportunity for the experienced operators, and the newer ones, to pick their brains and learn from them,” he said. “I personally have seen many challenges over the past 15 years and our industry has always come out of it stronger. I think the key

L-R Ian Crooks (ResortBrokers Chairman & Founder), Trudy Crooks (ResortBrokers Managing Director) with Gemma and Paul Bolton from Horton Apartments.

message from the event is that there’s always a light at the end of the tunnel and we will get there. “Business has been tough for all of us. We do however believe when it comes back and it will, we will all be in a good position to reap the rewards. “The main ‘takeout’ from the event was that despite the border closures and restrictions in place, there are more than five million Queenslanders who want to take a holiday and maybe this should be our focus.” Chenoa Daniel said the Back to Business night was also designed to be a social event in a casual environment with everyone in the room having a few drinks and mingling after the Q&A.

“It was really good to see people in this industry come together in a relaxed and happy environment and share their experiences with each other,” Daniel said. “As we all know, when you work in this industry, most of the time everyone is working so hard there is very little time to socialise with others and swap ideas, or just be supportive of each other,” she said. Resort Brokers has tentatively planned another Back to Business event for late October to be held in Mooloolaba, conditions pending. Pauline and Dave Beach, from Alex Seaside Resort, said: “We very much enjoyed getting out and meeting with known colleagues and getting to know some new faces. The evening has been the topic of discussion

since and we really do feel that the information offered up freely was genuinely welcome, well received and delivered with much needed reassurances”. Dani Collis, from Offshore Noosa, added: “There is always something that comes to light in these meetings, which is great. It was also great to catch up with a few people and to put a face to a name, our Solicitor. We used Trent for our business purchase but had not met him face to face,” Resort managers Dianne and Roger Lott also said: “We found it to be very informative and some good tips shared by the speakers. I guess we have to hope that in a few months we will be over the worst of this COVID challenge.”

Around 70 people turned out for ResortBrokers’ Back To Business event.

EVENTS & APPOINTMENTS

ResortNews | October 2020

Annual General Meeting for Australian Resident Accommodation Managers Association (ARAMA) members The meeting has been scheduled for Tuesday, October 20, 2020 at 10:00 (AEST) via an online webinar. The ARAMA board of directors have decided that due to COVID-19 it is acceptable and COVIDsafe to conduct the AGM digitally this year.

Massive congratulations to Jennifer Hawcroft from Noahs on the Beach accommodation in Newcastle! She is the winner of our recent accomnews. com.au digital newsletter subscription competition, which ran from June to August. Jennifer has won a fantastic two-night stay at the stunning Alexandra on the Pacific Mooloolaba accommodation, a

resort that was featured in the June issue of Resort News. This wonderfully positioned Sunshine Coast resort brings the senses alive with the smell of briny air and rush of roaring waves. Alexandra on the Pacific Mooloolaba resort managers David Palmer and Carole Stuart are not only delighted to live in one of the best spots on the Sunny Coast but are even more delighted to share the experience with guests.

This means that there will not be a face-to-face event at this time this year.

ARAMA announces one-day, fully interactive training program for beginners and experienced management rights business owners. Management Rights Industry Training Program (MRITP) will be held on Tuesday, October 27, Riverside Hotel South Brisbane. Register via ARAMA website.

ARAMA Live Webinar, October 21, topic: Office of Fair Trading & Trust Account Investigations Hear from the Office of Fair Trading, regarding the role of the OFT, the role of the investigations team and your responsibilities as a letting agent.

Who won our digital subscriber competition?

OFT, members in other states should tune in as the principles explained are very similar in your State.

Plus, lots more including an opportunity for live Q&A. While this particular presentation features Queensland’s

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

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ResortNews | October 2020

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EVENTS & APPOINTMENTS

New ‘Vibe’ for Perth and belief in WA Fairmont Hotel

quality hotel accommodation to Perth’s western suburbs, and vitality and amenity to Subiaco. Located at the corner of Railway Road and Alvan Street, the 12 storey Vibe Hotel is the tallest of the three buildings in the precinct and offers panoramic views in all directions. The precinct is also home to over 24,000m2 of commercial office, retail and cinema tenancies.”

Vibe Hotel Subiaco

Vibe Hotel Subiaco will open its doors in October 2020 and welcome guests to a new “vibe” in Perth CBD. Sydney-based TFE Hotels, has shown a long-term commitment to WA by partnering with developer Dradgin to introduce its Vibe Hotel lifestyle brand to the state, during a very uncertain period for the accom industry. The opening of the 168-room Vibe Hotel Subiaco in Perth’s boho borough is a bold move, coming in the midst of a global pandemic but it follows the plan to have a next generation Vibe Hotel operational in every Australian capital city by the end of 2022. Vibe is an Australian homegrown brand, a true blend of Australian contemporary design and hospitality where high levels of service are delivered in a friendly and casual way. TFE Hotels CEO, Antony Ritch said TFE was excited to bring the Vibe brand of Australian hospitality to the capital of WA. “There’s been quite a lot of

development in Perth CBD in recent years in the upper upscale accommodation category, but Vibe Hotel Subiaco will be the first brandnew build Australian lifestyle hotel, and the very first of our Next Generation Vibe properties in Western Australia,” he said. “Vibe Hotel Subiaco offers the chance to experience a different side to Perth in a vibrant and eclectic suburb on the city fringe. These local experiences – from a night out at the iconic Regal Theatre to the bustle of the weekend farmer’s markets to feeding swans in nearby parklands – will be bolstered by the hotel’s facilities. We’ll have rooftop pool for sun seekers and, for those that love al fresco dining, the rooftop Storehouse Restaurant and Bar, will offer incredible views over Perth.”

Ritch talking about the level of commitment to WA and the partnership with Dradgin said: “At TFE Hotels we have every confidence in the strength of the West Australian tourism market, and its ability to bounce back post pandemic. Ours is a long-term strategy. It’s a story of Australian brands expanding and evolving. And it’s a strategy of growth, that’s in line with the long-term outlook for our tourism industry and corporate sectors.”

Australian first from Accor coming to FNQ The first Fairmont Hotel in Australia promises to blend seamlessly with Rainforest and Reef so guests can reconnect with nature in this iconic tropical paradise.

The resort, Fairmont Port Douglas will offer a new level of sustainable luxury when it opens in 2023. Set on the edge of two UNESCO World Heritage sites – the Great Barrier Reef and the Daintree Rainforest – the hotel has been sustainably designed to give back to the environment. Simon McGrath, Chief Operating Officer, Accor Pacific said: “We are excited to bring the extraordinary Fairmont brand to Australia and are confident that Fairmont Port Douglas will deliver a new level of luxury and sophistication to one of the country’s most glamourous resort towns. The company said it “continues to expand its luxury offerings in Australia”. “As our first Fairmont, this is going to be a truly special resort, whose architecture mimics the rich biosphere of the Daintree Rainforest and, which is centred on well-being, nature and cultural immersion.” Fairmont Port Douglas will boast 253 glamorous rooms, several restaurants and bars, a decadent day spa, a

Dradgin’s Investment Manager, Lynn Liang, said Dradgin was excited to welcome TFE Hotels to the precinct and delighted that Vibe Hotel Subiaco would be run by such experienced hotel operators. She said: “The opening of the hotel will bring long awaited DEVELOPMENTS

Fairmont Hotel

ResortNews | October 2020

Investment Corporation’s (QIC) Watergardens in Melbourne’s north-western suburbs earlier in 2020.

treetop walk and panoramic conference and wedding facilities, all designed around resort-style pools and built to blend seamlessly with nature. From the organic architecture to copious green spaces and natural light, the resort brings nature close, with butterfly nets above the children’s swimming pool, an intimate lobby inspired by birds’ nests and verdant tropical gardens. Thanks to Accor’s strong credentials in the Indigenous space, the hotel is also looking to work with the local Kuku Yalanji community, traditional owners of the land, to provide Indigenous Welcome to Culture and Smoking Ceremonies for special events. The Fairmont Spa will also offer treatments using traditional local ingredients to help guests immerse in the unique culture of the destination. The first hotel in the region to achieve Ecotourism Australia’s Eco Destination Certificate, the hotel has been recognized for its strong environmental credentials, winning the Communities & Culture Award at the Sustainable Destinations Awards in March 2020, even before opening. Developer Paul Chiodo said: “We are proud to deliver such a high quality project to the people of Port Douglas and believe the Fairmont brand will bring the right mix of local focus, sustainability and global expertise to the hotel. “Chiodo Corporation seeks to create spaces that are built around the environment and local culture and we believe that the Fairmont brand shares this ethos. Together, we will deliver a meaningful connection to the local community through this stunning hotel.”

Exciting development for rugby league fans from Quest Fans will soon be able to book accommodation just metres from the famous Shark Park, with Quest signing on to manage a new 71-room apartment hotel, Quest Woolooware Bay. The property located in the exciting $1 billlion Woolooware Bay Town Centre development in Sydney’s Sutherland Shire ResortNews | October 2020

Property developer, BEKL appoints Plus Architecture to Melbourne hotel development Scheduled to open in 2023, the ambitious new development comprises 36 apartments and 2,293m2 of office space, in addition to the recently announced hotel, voco South Melbourne.

Quest Woolooware Bay

is set to attract interstate business travellers and international sporting teams. Over three levels, the Quest Woolooware Bay property will include conference facilities, a gymnasium and an external garden terrace with views overlooking the home of the Cronulla Sharks NRL team, officially known as PointsBet Stadium.

Councillor Carmelo Pesce is confident the inclusion of an apartment hotel as part of the development will provide a major boost to the accommodation options available locally. The announcement of Quest Woolooware Bay comes after Quest unveiled plans for a property at Queensland

The development is designed to provide a generous forecourt experience to visitors, with a grand double-height foyer for each of its three spaces. Each space is designed to face key vistas, with guests and residents alike drinking in Melbourne’s finest landscapes. BEKL managing director, Katherine Liu, said she is thrilled to partner with the awardwinning integrated master planning, architecture and interior design practice, having established a long-standing partnership following multiple collaborations to date.

James Shields, General Manager of Growth and Capital strategy from Quest Apartment Hotels said: “Quest seeks to position itself in Australia’s best locations for the extended stay business traveller, so the opportunity to bring our brand to the Woolooware Bay Town Centre is significant. Just footsteps from Shark Park, we’re envisaging a large number of guests from the sporting industry, as well as fans. “With such significant surrounding infrastructure and community, not to mention the amenity within the Town Centre itself, the requirement for high quality accommodation is clear, and this is what Quest Apartment Hotels does best. The company said it is committed “to working with the best developers and suppliers to deliver a premium product for our guests, so we are delighted to be involved in this project, in this area, allowing us to deliver a premium product for guests”. Sutherland Shire Mayor,

voco South Melbourne

DEVELOPMENTS

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.

CLEVELAND

• • • • •

SOLID INCOME & LIFESTYLE BAYSIDE AREA

Prime location, walk to shopping centres and Cleveland CBD Body Corporate salary of $101K with manageable caretaker workload Well-presented and spacious three bedrooms manager residence No requirement on residing onsite On title office, no set office hours

NETT: $158,827

TOTAL: $1,180,000

SPRING HILL

• • • • •

FORTITUDE VALLEY

• • • • •

LARGE REMUNERATION & 3% INCREASE!

Boutique building in Brisbane Inner City, close to everything Great remuneration $93K with 3% adjustment annually Very long 24 years left on BC agreements Very healthy relationship with BC committee Modern 2 beds/2 baths/2 carparks manager residence

NETT: $136,000

TOTAL: $1,195,000

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

Inner City area, walks to CBD, close to everything Common area refurbished, all BC’s hard work done Fantastic manager salary $84,455 with annual increase of CPI Great 2 beds/two baths/2 carparks, large open plan living unit Spacious separate office, no set office hours

NETT: $173,803

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

SOLD INCOME AND LARGE RESIDENCE

TOTAL: $1,503,800

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!

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PO Box 288, Cleveland, QLD 4163

EXCLUSIVE MANAGEMENT RIGHTS PURCHASE OPPORTUNITIES ROBINA • • • • •

Permanent Complex Live “Off-Site” (Perfect to run remotely) Joint total realestate Nett + Additional Income (Not included in the figures) 49 of 93 units in the letting pool Managers unit large 3 bed, 2 bath 3 carpark + seperate office Centrally located in the best spot on the Gold Coast

NETT PROFIT $274,574

TOTAL $2,055,000

BURLEIGH HEADS • • • • •

Beachfront in the best suburb on the Gold Coast Outstanding 3 bed / 2 bath managers unit with completely seperated office Excellent growth opportunity to incerease occupancy and tarriffs Perfect resort for a couple to operate with good strong relations with committee and body corporate. Great complex amenities and features

NETT PROFIT $228,006

TOTAL $1,925,000

MELBOURNE • • • • •

Centrally located “Rare” Permanent MLR Melbourne opportunity Substantial caretaking salary $212,000 167 total units with rental pool growth opportunity Spacious managers residence Tower style building, very little facilities and easy to maintain

NETT PROFIT $245,084

TOTAL $1,610,000

COOLANGATTA • • • • •

Outstanding beachfront opportunity to live and work the dream 25 Year accommodation module, 23 years remaining North Facing with sea views to Surfers Paradise Massive 3 bedroom 2 bathroom, 2 carpark aprtment, perfect for a family No Set Office hours on agreement

NETT PROFIT $394,822

CHARLES NURSE

LARRY SEBURN

M: 0477 826 666 E: charles@stratacorp.com

M: 0403 756 755 E: larry@stratacorp.com

WWW.STRATACORP.COM

If you are looking to buy or sell, contact us!

TOTAL $2,910,000

1800 111 622

Sales Report

Central Coast Motel | Wyong, New South Wales

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

MANAGEMENT RIGHTS Gold Coast Madison Garden Villas

Backwell Enterprises P/L

Ashmore

Summit 110

Sovereign MR P/L

Labrador

TDK Group

Woolloongabba

33by115degrees P/L

Dunsborough

Brisbane The Foundry

Western Australia Dunsborough Beach Cottages

MOTELS & OTHER Queensland Chinchilla Motor Inn

Rothbury Management P/L

Chinchilla

Lot 45 Captain Cook Highway

S. Coleman & J. Hoswell

Port Douglas

New South Wales Central Coast Motel

Aman Gaidhu

Wyong

Park Drive Motel

Ken & Sally Lao

Kempsey

Sundowner Caravan Park

Ken & Sally Lao

Kempsey

(From L-R) Amandeep Singh Gaidhu, Yahsheed Ali, Jacqueline Featherby (ResortBrokers), Brendan and Lan Anh D’Arcy

Victoria Central Court

Vertua Opportunities Property P/L

Warrnambool

Donald Riverside Motel

Michael Ji

Donald

Zero Inn Motel

N & D Clark

Nhill

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

www.accomproperties.com.au

Celebrating the sale of the leasehold to the Central Coast Motel at Wyong are the new purchasers, Amandeep and Yahsheed who are a partnership and have a lot of experience in running motels, mostly in the Newcastle area. Jacqueline Featherby of ResortBrokers handled the sale on behalf of vendors Brendan and Lan Anh who have been at the property and running it successfully for seven years. Brendan and Lan Anh say they’ll miss the place but they’re just ready to “make a change.”

Bobo Qi – Property Bridge

Introducing... Bobo Qi – Property Bridge As co-founder and Sales Director of Property Bridge, Bobo’s tireless efforts to establish and support a vast network of sellers and buyers has been rewarded with outstanding success as a high achieving, well respected and prominent Management Rights broker in the Brisbane, Gold Coast, Sydney and Melbourne markets. With many years experience in the Management Rights industry, including previous co-ownership of a permanent complex on the Gold Coast, Bobo’s warmth, boundless energy, enthusiasm and dedication has endeared her to management rights operators, buyers and industry professionals.

Always seeking to contribute to the growth, stability and knowledge base of the Management Rights industry, Bobo maintains membership of the REIQ and Gold Coast Tourism. Bobo contributes strongly to our industry having previously been a Board Member of the Australian Resident Accommodation Manager’s Association (ARAMA), reflective of the high regard she is held for her professionalism, integrity and dynamic work ethic. “We would like to let you know how happy we were with the exceptional service we received from Bobo Qi during the recent sale of our Management Rights at Seacrest Apartments, Surfers Paradise.”

Name: Bobo Qi Mobile: 0438 027 771 Agency: Property Bridge Area of Service: Nationwide Web: www.propertybridge.com.au Email: bobo@propertybridge.com.au

– Diane & Trudy McIntosh

PROPERTY

ResortNews | October 2020

MANAGEMENT RIGHTS OPPORTUNITIES IN NORTH QUEENSLAND Consider the advantages - better multipliers, better yields & better choices

COVID & INFLATION PROOF BUSINESS INVESTMENTS TOWNSVILLE – ON THE STRAND

•

Rare opportunity, mixed letting and modern property

•

Business is run down and requires motivated operator. 20 units from outside agents need to be recovered

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (1 brm):

•

Very well priced. Urgent sale wanted by vendors

Total Price:

CAIRNS CBD – MULTILEVEL PERMANENT

31/5 25/23 Years $37,000 TBA $255,000

•

Classy medium rise permanent in the heart of the Cairns CBD

•

Good mix of furnished 2 and 3 bedroom apartments

•

Very easy to run business, minimal caretaking, Perfect starter or add on business

$295,000

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (2 brm): Total Price:

27/12 10/9 Years $69,760 $88,850 $348,000

$695,000

CONTACT CALVIN - 0414 889 593

CONTACT ALEX - 0414 835 128

TOWNSVILLE – LUXURY HIGHRISE

PORT DOUGLAS RESORT – WALK TO BEACH

•

Permanent letting residential highrise

•

All luxury apartments have stunning views

•

Good mix of quality two and three bedroom apartments

•

Great growth potential

•

Expansion of outside pool

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (2 brm): Total Price:

73/40 25/21 Years $135,890 $254,000 $530,000

$1,450,000

•

Permanent letting. Spacious two and three bedroom apartments. Huge 4 bedroom manager’s villa with stunning reception

•

Great salary $107,285. Manager not required to live onsite

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (4 brm):

•

Room for growth with short & long term letting approved

Total Price:

CONTACT CALVIN - 0414 889 593

Contact: Mobile: Email:

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

CONTACT ALEX - 0414 835 128

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

Contact: Mobile: Email:

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

Australian Resident Accommodation Managers’ Association Member

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

53/34 25/16 Years $107,285 $225,000 $400,000

$1,395,000

MANAGEMENT RIGHTS RESORTS

MARSDEN MASSIVE PROFITS. LIVE OFFSITE

ROBINA JUST EXCEPTIONAL!

• • • •

An outstanding permanent letting business in Brisbane’s south Salary $146,000. Supportive Body Corp. 24 years on agreements Live off-site should you choose and employ an onsite manager Roomy 3 bedroom standalone residence priced at $420,000

Premium permanent in convenient & desirable Robina CBD New 20 year Agreements. Spacious Office on title Stylish and private 3/3/2+ residence. Pet friendly garden Well maintained facilities and manageable grounds

NETT $365,000 PRICE $2,537,000

NETT $150,000 PRICE $1,240,000

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

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

WYNNUM BAYSIDE LIFESTYLE

ROBINA PERMANENT BUSINESS. SOUGHT AFTER LOCATION

• • • •

Popular Bayside complex offers a stable, secure business Easily operated by one person. Solid rental demand Positive Body Corp, 25 years to run and $69,000 Salary Well presented, stand-alone, single level, 3 bed manager’s home

One person could successfully manage this business Body Corporate salary $81,000 p.a. No set office hours 25 years remaining on Agreements. Office on title Renovated single level stand-alone villa. 3 bedroom, 2 bathroom

NETT $99,000 PRICE $930,000

NETT $131,000 PRICE $1,160,000

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

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

propertybridge.com.au | 1800 888 518

RECENT SALES MORE QUALITY LISTINGS REQUIRED

D E L T T SE DS & D SOL EED HEA TW

D E L T T SE ES & D SOL IFIC PIN PAC

T C A R NT O C R H UNDEAIN BEAC M

T C A R NT O C R PORT UNDE H SOUT

CH A E B MAINR OFFER UNDE

T C A R NT O C R UNDEARKWOOD P

MR Sales remains open for business and are dedicated to seeing this challenging situation through with our clients. We are committed to helping in any way we can. Our staff are working remotely and will continue to be available to answer all your questions. Visit www.mrsales.com.au or Phone: 1300 928 556 | Email: sales@mrsales.com.au

www.mrsales.com.au

OVER 1000

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

Happy 100 birthday to Muriel! th

As we celebrate Allure Mooloolaba By Mandy Clarke, Editor

New Sunshine Coast boutique apartment complex Allure Mooloolaba has exceeded all expectations for its managers despite a year of chaos and uncertainty for the industry. Allure Mooloolaba has only been welcoming guests since September 2019, Resort News found out during a catch up with its managers, Charmaine and Mark Kennedy, and resort mascot and Facebook star, 15-year-old Maltese/Bichon Friese, Kelly. Together, they are celebrating 12 months in the management rights (MR) business as Charmaine and Mark are first time MR owners. I was keen to find out how they have coped, taking on a new business and a new lifestyle during a year that has been widely proclaimed the most disruptive period in the history of the industry. I was surprised and happy to hear their response. In a nutshell, they eagerly explained, their experience had been an eye-opener and (as ResortNews | October 2020

Happy Birthday Muriel, who will soon turn 100!

Allure Managers - Charmaine & Mark Kennedy

expected) involved a great deal of hard work. Yes, they told me, they had faced a sharp learning curve and challenges. But, most of all, they have been delighted by the progress their property has made and where their business is positioned in the industry, despite a stormy year. Located in the vibrant heart of Mooloolaba, one street from the world-famous Mooloolaba Beach, Allure Mooloolaba is a mixed-use property that presents 31 stunning apartments with 10 of those in the letting pool as holiday accommodation. These

individually decorated, bright and airy, architecturally designed one-, two-, and three-bedroom holiday apartments boast ocean or hinterland views and spacious open plan living areas with an abundance of natural light. Charmaine and Mark have been married for 48 years and have two grown-up children. They both originally come from Victoria but moved to the Sunshine Coast in 1991. Over the years, they have owned various businesses including Noosa Seafoods but Mark predominantly worked in the

PROFILES

auto-industry and Charmaine in accounting. They had considered entering the MR industry on several occasions throughout their careers, but the time had not been right until last year. Charmaine told me: â&#x20AC;&#x153;For the last 20 years, I worked in accounts for the developers of Allure Mooloolaba - Squire Development Group, which has also developed several other properties in the Sunshine Coast. When we were given the opportunity to buy the management rights, for Allure Mooloolaba, we took it and welcomed the wonderful lifestyle change it offered, as well as considering it to be the perfect step towards our retirement.â&#x20AC;?

Usually, I hear from first-time managers that the first 12 months are frantic and chaotic because they have to learn the ropes while running a busy business. So, I asked Charmaine and Mark if they have had a quieter than expected year due to COVID-restrictions and lower than expected occupancy. Well, quite the contrary, they said it has been a very busy year for them! “Before we opened, we completed an income projection as part of our business plan, and we were spot on with our predictions. At this stage (12 months in) we are delighted that our income is exactly where it should be, and where we wanted it to be.” I congratulated them on their business planning prowess, and they explained they were fairly conservative with their figures, as they were new to the MR business and knew that it may take time to gain momentum. However, because their 2020 bookings had mainly come from Brisbane, Toowoomba, Bundaberg, and regional Queensland they were

not adversely affected by the international or state border closures due to COVID.

suffered a small number of cancellations from southern visitors. We were very fortunate.”

Charmaine said: “We hadn’t targeted the Queensland market, but it just worked out that way. We had most of our guest bookings from within the state, therefore we only

They told me that a large part of their role in the last year has focused on building solid relationships, with the apartment owners’, the body corporate and of course the short-term holiday

guests. “We have created good relationships with everyone from the highest paying guests to our cleaners, having worked in service industries all our lives we know the importance of treating everyone equally and fairly and maintaining good relationships.” As for the workload, Charmaine

Phone (07) 5493 3969 71 First Ave, Mooloolaba Qld 4557 stay@alluremooloolaba.com.au

www.alluremooloolaba.com.au 10% Discount for Resort News readers (Terms and Conditions apply. Discount not available with any other promotion or at Peak/Event Times)

PROFILES

ResortNews | October 2020

said she does all the admin and Mark joked that he does all the “hard work”. It is a brand-new building and Mark ensures the building is maintained to the highest standards, he picks up and irons out any small issues that can typically crop up with a brand-new property. Although new to the industry they are savvy business owners and have invested very wisely in their website, recognising the importance of having a good looking and easy to use website and strong online presence.

had not been able to visit her mother Muriel Gill as easily as they would have liked, due to restrictions at the local aged care facility where Muriel resides. She proudly revealed that Muriel will celebrate her 100th birthday in November and the whole family is looking forward to celebrating the incredible milestone with her. Happy birthday, Muriel, from the Resort News team!

Charmaine revealed: “We have had a great year in the industry despite all the unexpected changes, we have been able to ‘go with the flow’ and step up to each challenge. We are also very grateful to have received a lot of support, as members of ARAMA we cannot believe how fantastically supportive they have been to us, it has really made a difference and of course we love our monthly issue of Resort News.”

When they purchased their MR business, Charmaine and Mark agreed on a three-to-five-year plan as a path to retirement, and they acknowledge this may now need to change given the newfound 2020 economy. In the meantime, they confirmed they will thoroughly enjoy living so close to the ocean and can look forward to wonderful interactions with guests, prepare for more unexpected events, and celebrate family times.

However, with some sadness, Charmaine told me that COVID-19 had taken a personal toll on their family because they

“We are experiencing a new era where we will all need to learn to go with the flow and to become very adaptable to change.”

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PROFILES

Agincourt Beachfront Apartments’

For some years, Kiwis John Assen and Sheree Parris enjoyed holidaying in Far North Queensland.

would suit our lifestyle.” With the help of their agent Calvin Bailey, John and Sheree found and purchased this resort.

Last year, inspired by a love of the tropics, the two took their love for FNQ a step further and purchased the management rights to Agincourt Beachfront Apartments near Cairns. Agincourt Beachfront Apartments promised the perfect tropical lifestyle they had been dreaming about, plus a business opportunity that was hard to ignore. Talking about what attracted them to the property, John said: “We were overwhelmed by the beachfront North Queensland setting in the heart of the Cairns Northern Beaches, it is sublime. We were also very impressed with the apartments because they are so comfortable, modern, and spacious with extra-large rooms. “All the beachfront apartments have views through the coconut palms of the sandy beach, nearby islands and the blue coral sea. The garden building is surrounded by lush tropical gardens full of bird life with views of the pool, gardens, and palm trees. We offer 25

John Assen and Sheree Parris

absolute beachfront apartments as well as 20 apartments with tropical pool views.”

Tablelands, with shopping, tourist attractions, transport and restaurants all nearby.

Sheree added: “The whole ambience is very tropical, laidback, dreamy and peaceful and we have many guests who return every year to experience the easy tropical lifestyle.”

This husband and wife team can be described as “new-bees” to the tropics, but they are most certainly well-seasoned hospitality industry professionals.

Although the Agincourt is located in such a peaceful tropical paradise, nestled between Palm Cove and Trinity Beach, the two-apartment block complex is surprisingly within easy reach of Cairns city, Port Douglas and the Atherton

John told us: “Previously we developed and managed a motel/holiday park complex in New Zealand but decided to try hospitality in a tropical environment. We had been on holiday to the region a few times and thought running a management rights business

PROFILES

Sheree revealed: “We are mostly a two man team but greatly appreciate the additional help from our lovely, very competent cleaner Ramy, who has been with the Agincourt for seven years and we owe our beautiful lush gardens to our fabulous gardener Harry who has been here about five years. However, in the busy season we also recruit a few more casual cleaners and have a great team of local contractors who are very reliable and have been servicing the Agincourt for many years.” The apartments had been stylishly refurbished, with large flat-screen televisions, comfortable new king-size beds and luxurious linen in tranquil tones, all impressively well-designed for comfortable short and long-term stays. This year, John and Sheree took on the task of refreshing the exteriors, repainting the building, and replacing the facias, the quieter COVID-lockdown weeks were a perfect time to make resort improvements!

ResortNews | October 2020

Sheree told us: “It looks nice and fresh now with a new colour on the top of the building and columns now white instead of blue.” John revealed: “Navigating the myriad of changes since we started a year ago has been a challenge, but we also consider it to be a great achievement. We had to learn ‘on the job’ while having a change of body corporate services, committee and COVID while overseeing the facia replacement, repainting of the building and new reservation software. “However, we are very lucky to have experienced such a great community spirit at the Agincourt with owners, guests and tenants all getting along well. We love our guests, owners and tenants so getting up every day and coming to work is always a pleasure. We feel truly blessed and grateful to work in such a happy environment.” Sheree outlined their advice to other new managers: “Try to build great relationships to all around you in the day to day running of your business, keep the lines of communication open

to all and try to see things from different prospective to be able to understand the motivations of others. If you can be seen to be understanding and helpful to everybody you will have more support from the owners and other people residing in your building. Management rights can be rewarding once you find a

balance between living in a great location and running a business.” John and Sheree added: “We enjoy working in a tropical laidback environment every day and all the wonderful people we are meeting along the way. We love our view from our office which is straight out to the Coral Sea and the fact our walk to work is

Your local body corporate specialist

along a beautiful tropical beach. “We have a very tropical laid-back environment in Clifton Beach and are known to be very quiet and a place to come to rejuvenate. It is a very unpretentious place designed for everybody to come and relax. We have an enormous number of repeat customers and word of mouth.”

YOUR PARTNERS IN SUCCESS BUYERS / SELLERS / DEVELOPERS SPECIALISTS IN MANAGEMENT RIGHTS IN NORTH QUEENSLAND

PROUD TO BE ASSOCIATED WITH JOHN ASSEN & SHEREE PARRIS AT AGINCOURT BEACHFRONT APARTMENTS AND BROKERING THE PURCHASE

Body Corporate Services (BCS) Cairns is a proud provider to Agincourt Beachfront Apartments BCS Cairns is a local business which is centrally located in the business hub of Cairns, Queensland. Our focus is not only on the amenities of your property but also enhancing community living within it.

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

1300 959 766 bcssm.com.au

ResortNews | October 2020

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

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PROFILES

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ResortNews | October 2020

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ResortNews | October 2020

Look for the sign of an Industry Specialist...

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

ELECTRICAL CONTRACTORS

Red

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* Contact us for the T&C’s

Management Rights Finance Specialists

Look for the sign of an Industry Specialist

QLD LIC. 9107 NSW LIC. EC29426

office@emerlite.com.au www.emerlite.com.au

0418 765 257

www.casualfurniture.com.au

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

www.redtenfinance.com.au nick@redtenfinance.com.au

(07) 5591 9191

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Nick Smith - 0450 179 677

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

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F I N A N C E

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

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Look for the sign of an Industry Specialist

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W I D E

COMPUTER SOFTWARE

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jporter01@bigpond.com

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ResortNews | October 2020

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info@kudosfurniture.com.au

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

Quality Aust Products to meet All Building & Government Standards

DELIVERIES QLD WIDE – INSTALLATION & SERVICE IN SE QLD

1300 665 966

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

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

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ResortNews | October 2020

Property Bridge MANAGEMENT RIGHTS

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Look for the sign of an Industry Specialist PREFERRED SUPPLIER DIRECTORY

Calvin Bailey LREA

0414 889 593 calvin@cbmr.com.au

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

CALVINBAILEYMANAGEMENTRIGHTS.COM.AU

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

www.rcabusinessbrokers.com.au

The Management Rights Specialists

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SHEET METAL

www.accomnews.com.au/business-directory

• Painting SUNSHINE COAST

Matt Campbell 0410 343 219 Barry Davies 0438 554 995

contact@managementrights.com

www.managementrights.com Specialising in Motel & Resort Sales Qld wide Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au

• Grounds Maintenance

Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work

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Ph 07 5593 4183

• Audio Visual

Fx 07 5593 4194 | M 0413 432 294

• Data Communications

adrian@sheetmetalimprovements.com.au

• Sustainability

C O O L A N G AT TA T O B E E N L E I G H

SIGNS

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

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

PO Box 1037 Gordonvale 4865 • P 07 4056 6366

info@resortsales.com • www.resortsales.com

SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS

1800 111 622 WWW.STRATACORP.COM

Think Management Rights Wayne & Linda Stoll 0452 181 505

wayne@thinkmanagementrights.com.au

Narelle Filmer 0459 229 744

narelle@thinkmanagementrights.com.au

www.thinkmanagementrights.com.au

PAINTERS & DECORATORS

Specialising in:  Hi-Rise Repaints  Large Complexes  Interior and Exterior  Hi-Pressure Cleaning  Concrete Spalling Repair (Concrete Cancer)  Waterproofing & Roof Membranes LOCALLY-OWNED FOR OVER 25 YEARS

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QBCC Lic No 1050861 NSW Lic No 179886C

PEST CONTROL

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PEST-NETT OUR

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• GENERAL PAINTING • PROJECT MANAGEMENT

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

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SAVE TIME DO IT ONLINE!

www.accomnews.com.au/business-directory

RIGHTS AND MOTEL

Professional Pest Control Services

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Specialising in commercial and residential pest management

Receive the best information. Subscribe today to receive continual practical, useful and relevant content.

M 0456 565 148 W targetpest.net.au P

1300 638 938

PREFERRED SUPPLIER DIRECTORY

Visit hyneslegal.com.au/subscribe or call +61 7 3193 0500 info@hyneslegal.com.au www.hyneslegal.com.au ResortNews | October 2020

Look for the sign of an Industry Specialist

Look for the sign of an Industry Specialist SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS BRISBANE: 07 3007 3777 GOLD COAST: 07 5562 2959

TENNIS COURT CONSTRUCTION &/OR REPAIRS

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

info@mahoneys.com.au

Call John Punch on 5570 9322

CERVETTO COURTICE

WE ALSO REPAIR & SUPPLY NEW COURTS, NETS, LIGHTS, FENCES & GATES

L AW Y E R S

Q U E E N S L A N D

Management Rights Sales & Purchases Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: cervetto@gil.com.au Buying & Selling

New Agreements or Variations

General Advice

All at Fixed Fees

Management Rights, Body Corporate and Property Law Specialists

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

TRAINING & DEVELOPMENT

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

Classes from Coolangatta to Cairns

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Heat Pumps

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Nicholsons

Matthew Russell, Partner Vanessa Sciortino, Special Counsel

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Michael Kleinschmidt, Legal Practitioner Director PH: 07 5406 1280 info@stratumlegal.com.au

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

Management Rights Lawyers

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www.nicholsons.com.au

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

ResortNews | October 2020

1800 080 349 www.propertytraining.edu.au LIVE CLASSES at Logan Central

or Anywhere via Zoom

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

(07) 3226 3944

mjr@nicholsons.com.au / vas@nicholsons.com.au

Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588

Need advice regarding: • Buying / Selling • Legal due diligence reports • Variations including top up of term • Renewals/Extensions • Management & Letting Agreements • Body Corporate Issues • Off Plan Developments Get it right the first time…call

Griffiths Parry Lawyers

Whatever, Wherever, Whenever!

PRET AUSTRALIA Professional Real Estate Training Since 2006 Resident Letting Agent Licence Course Real Estate Agent Full Licence Course Conducted LIVE by Friendly, Experienced Industry Trainers

ENROL Today (07) 3878 8513 Bonus FREE CPD Workshops & Ongoing Support for Graduates

www.accomnews.com.au/ business-directory

T: 07 5390 1400 www.gplaw.com.au

PREFERRED SUPPLIER DIRECTORY

Valued up to $2000 per annum (conditions apply)

email info@pret.com.au visit www.pret.com.au

RTO Number 31303

+ 0 0 3 R JOIN OU S R E G A N A M T N RESIDE ING FROM ACCOMPROPERTIES FITT E N E B Y D A ALRE

AccomProperties actively recruits qualified Resident Managers in order to sell units & fill vacancies within their respective accommodation complex. AccomProperties offers support, expertise and access to an extensive range of agency resources. Our 300+ members have direct and streamlined access to our ever increasing list of leading industry portals:

com.au

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Unit Sale s Rental Lis & tings

s tal Listing n e R it n U

$330 ST P.A Incl G

and a growing range of additional services!

$880 P.A Incl G ST

(Additional Fees: Realestate.com.au $120 incl. GST per sales listing, Realestate.com.au $20 incl. GST per rental listing, $8.80 incl GST per tenant search applies)