Resort News, January 2021 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 293 | January 2021 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Profiles: The Breakers Oasis Apartments and Treetop Houses management rights • hotels • motels • resorts • holiday parks • time share • hosted We specialise in furniture for hotels, motels, serviced apartments, resorts and refurbishments.

Call Dennis Clark now on 0421 384 212 dennis@hotelinteriors.com.au hotelinteriors.com.au • 1300 876 055

Dennis Clark

Founder

MDIA

+ 0 2 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

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MEMBER FEEDBACK AccomProperties Sales & rentals platform easy to use “One of the benefits of being members of ARAMA is utilising their affiliates such as AccomProperties. They are economical and very supportive in the setup stage and follow on service. The platform is straight forward and easy to use. We have successfully leased properties through AccomProperties as an advertising platform.”

– Rabih Assaf, Manager, Village Circle

AccomProperties Sales & rentals portal very efficient and easy to use “Having joined AccomProperties in October 2019, I have found the portal to be very efficient and easy to use. Listings are automatically uploaded to REA and Domain instantly. The cost is very competitive compared to other agencies and IT support is always available should I need it.”

– Mei-Chu Wang, Manager, Enoggera Manors

It was such a pleasure to deal with AccomProperties they actually liked talking to their clients “It was the first time we needed to use an online residential rental and sales listing marketing service – and the service we received from Patrick at Accomproperties was superb! Patrick was always available and incredibly helpful. He anticipated our needs and fixed our problems promptly and effortlessly. In an era where most companies hide behind email, it was such a pleasure to deal with a company that actually liked talking to its clients.”

– Sophie Dillon, Resident Manager, Alexandria Apartments

AccomProperties shows tremendous backing for the Management Rights Industry “AccomProperties has shown tremendous backing for the management and letting rights Industry by enabling ARAMA members to connect to realestate.com.au, Domain and other portals. Protecting your letting pool has never been more affordable or easier than with the new platform and we are grateful to AccomProperties for offering these deals.”

– Trevor Rawnsley, CEO, ARAMA

I would encourage all managers to get their rental properties listed with AccomProperties “All resident managers, and in particular ARAMA members, should be excited about this initiative. The ‘easyto-navigate’ system allows managers to be more efficient in what we do - generating more revenue for owners and ourselves. I would encourage all managers to take up the opportunity to get their rental properties listed, and if fully licensed then those that come up for sale as well. The platform could be a revenue generator and means of managing the rental pool. AccomProperties is a well-respected platform that has extensive industry knowledge and experience and we are very happy to be able to partner with them in taking it to market.”

– Eric van Meurs, Atlantis Marcoola

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

– Glenys Higgs, Manager, No.1 Newstead

Phone: 07 5440 5322 mail@accomproperties.com.au

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

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

Disclaimer

Inside our January issue FRONT DESK Editors Note: New year, fresh start? ..................................05

INDUSTRY News in Brief .............................................................................. 06 Person of Interest: Arvo Elias is the last man standing! ................................... 10 ARAMA Report ........................................................................... 12

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. © 2021 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.

State Report ................................................................................ 13 BCCM Report .............................................................................. 14 SCA Report .................................................................................. 14

By All Accounts .......................................................................... 16

MANAGEMENT Legal Ease......................................................................................17 Motel Market ............................................................................... 18 Thinking MR................................................................................. 19 Q&A with Barry Turner ............................................................20 Good Governance .....................................................................22 Are you smarter than your TV? ............................................24 Eat that cake! ..............................................................................26

TOURISM Tourism Report ...........................................................................30 Tourism International ..............................................................32 The Last Resort ..........................................................................33

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

EVENTS & APPOINTMENTS Events.............................................................................................34

EDITOR

Mandy Clarke editor@accomnews.com.au

STAFF WRITERS

Rosie Clarke Grantlee Kieza David Carroll

DESIGN & PRODUCTION

Richard McGill

ADVERTISING SUBSCRIPTIONS

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

CONTRIBUTORS Trevor Rawnsley, Brendon Pitman, Michelle Scott, James Nickless, Jonathan Hanaghan, John Mahoney, Nicole Cleary, Andrew Morgan, Mike Phipps, Lynda Kypriadakis and Kelley Rigby.

DEVELOPMENTS Development News ..................................................................36

PROPERTY New Manager Profiles .............................................................38 AccomProperties Sales Report ...........................................38

PROFILES The Breakers, Surfers Paradise:

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!

People ............................................................................................35

Twenty Years & still going strong.........................................43 The Oasis Apartments and Treetop Houses, Byron Bay: First-time managers enchant Byron guests ...................46

PREFERRED SUPPLIERS The Preferred Suppliers Directory ......................................50 FRONT DESK

46 ResortNews | January 2021

EDITOR'S NOTE

New year, fresh start? I confess, I wasn’t bursting with cheer when midnight struck on New Year’s Eve, 2019.

With my attitude put firmly in check by the universe, this year I vow to embrace the onset of 2021 with gusto

I recall mumbling something along the lines of, ‘what’s the big deal’? It is just another year more of the same old, same old! Please note that I am usually a chipper person, but that night I was not particularly looking forward to my birthday on Jan 2. And, thanks to 2020, the laugh was on me because the year was not ‘the same old same old’, and definitely not just ‘another year’. And so, with my attitude put firmly in check by the universe, this year I vow to embrace the onset of 2021 with gusto. I promise to be a bright beacon of light and positivity, and on NYE I promise to dance, sing, and drink lots of gin. However, as you read this; it will already be 2021, and hands up if you are as ready for a fresh start too! The United Nations has helped to reassure our anxieties by aptly declaring 2021 as the International Year of Peace and

ResortNews | January 2021

Mandy Clarke, Editor editor@accomnews.com.au Trust, and the International Year of Creative Economy for Sustainable Development. This sounds good to me. Furthermore, I am going to predict an exciting and busy year for us all. A year full of events that had to be postponed in 2020, from the live Eurovision Song Contest, UEFA Euro 2020, the 2020 Summer Olympics, to industry events and expos, festivals, concerts and on a personal level my niece’s postponed UK wedding. Travel is on my agenda and I hope the anticipated two-way Trans-Tasman bubble

will kick off early in the new year. December 2020 was a huge issue for Resort News and throughout 2021 I am itching to bring you edition after edition of news, information, great stories, events and maybe even a few surprises along the way. This month, we start as we aim to go on, with a happy and motivated Multimedia team and an issue jam packed full of essential information from our experts. We also have an interesting Q&A with Barry Turner from BMCS and our new regular columnist Kelley Rigby gives her perspective on resident managers. Kelley’s focus is on how valuable you are, and she highlights practical

FRONT DESK

tips on how best to sell units in your own management rights building. Her views are refreshing, inspirational and well worth a read. This month the person of interest features our very own Arvo Elias who revealed his heart-warming, personal story. He is well known by our readers for his Intonet column, humour, and career achievements are bound to impress and indeed stay with you. Enjoy the first edition of Resort News for 2021 and I hope to hear from you or even meet you in person this year. Let’s get this party started! Cheers, Mandy

©Андрей Яланский - stock.adobe.com

NEWS IN BREIF

Accom operators “the little guys” unite against “bullying” OTAs

By Grantlee Kieza, Industry Reporter

There has been an overwhelming response from Accom News readers to a series of articles calling out the (so-called) unfair tactics of the OTAs. Tactics that have been highlighted by many small accommodation operators especially throughout the COVID-19 pandemic. Resorts, motels and small Accom businesses are now calling for more action to be taken by industry bodies against OTA tactics. They also call for more investment in a “book direct” awareness campaign.

Former policeman won’t cop OTA bullying Brad Atkins is a straighttalking former policeman and publican who won’t cop bullying from Online Travel Agents. He says that no-one pushes him around, and certainly not someone ringing his property from overseas to make threats on behalf of an OTA. Mr Atkins is calling for Australian property owners to unite with him in a fightback against overseas invaders.

He has a heavenly aspect from his property The Dunes, at Cotton Tree on the Sunshine Coast, and he says he’s not about to let any OTA put him through hell.

told him (the OTA) had taken his booking without checking with us. “He then rang (the OTA) and I then got a call from them on a private number.

Mr Atkins is calling for support to back a campaign in which accommodation owners from around Australia kick-in to a fighting fund for a massive advertising campaign urging guests to book directly with hotels and resorts rather than send money to overseas OTAs. A story last month in Accom News highlighting threats made by Booking.com to Tim Stocks, who runs the Coorrabin Motor Inn at Stawell, Victoria, had Mr Atkins seeing red. He told Accom News of his own battle with what he calls “the morons” at an OTA, which forced him to end dealings with the website. “I talk frank as I see it,” Mr Atkins told Accom News. We had a booking coming in recently even though we were already fully booked. “Out of courtesy I rang the ‘alleged’ guest and told him we were full and that we had been for weeks. “He explained his booking process through (the OTA). I said I couldn’t help because we were fully booked, and we did not have a room for him. I

“I said ‘call back with a number showing and I’ll discuss it with you’. “They then called back from a number in Arizona (of all places) and threatened me that if I didn’t find alternate accommodation for the guest, they would bill me. “They became quite aggressive and I told them to shove it. I have now removed them from offering my venue. “The OTAs try to bully the little guys and a lot of people in management rights get bluffed by them. “But I believe if we all take a stand against the OTAs and remove the bullies this will not happen.” Mr Atkins says Australian accommodation providers must meet the OTA’s threats with force of their own. “The effort must be one in all in,” he said. “We can all dump them if we stay strong. “I am prepared to take up the fight, but I will need the support of other managers as well. “It is about time we give it back instead of receiving threats. “I hope everyone in the business

INDUSTRY

remembers that we own the venues and not the OTAs. “We are the people who should make the rules and we should decide who stays at our properties and at what rate. “We do not work for the OTAs – they are supposed to be working for us. Instead, they are trying to stand over us and we shouldn’t cop it.” In response to this article our readers wrote: Adrian: Not sure if it is just because there is only domestic travel but am sensing a sway away from OTA’s from our bookers. The OTA’s have been bullies for years and were even worse during the pandemic, more than happy to support any campaign. Rebecca Strang: We have always encouraged our guests to book with us directly, but since the pandemic, we have found that people are so brainwashed into booking everything over the internet, that our OTA bookings, as a percentage, have increased dramatically. We are over being told what we can and can’t do by these OTA’s. Yes, it is our property and we should have the right to decide who stays and at what rate. One OTA is oﬀering to advertise the property higher on the viewing list, if we pay a higher commission. I would strongly support any campaign.” ResortNews | January 2021

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Karen Nelson: We were discussing this very matter at an ARAMA meeting just recently and one operator suggested a marketing levy of $1 per apartment contribution to mount a campaign as you have suggested. It’s an excellent idea, and as mentioned there’s strength in numbers. Count us in – Lanai Riverside Apartments, Mackay. Jen Baxter: On behalf of the Bendigo Motel Association (27 members) we would welcome a campaign. Most of our guests are shocked and then disappointed they have sent Australian dollars overseas. Australian business also needs to stop using these platforms. Would they discount 15 percent 20 percent to every customer, every day? Let’s shout this message from the roof tops. Linda Fox-Boyd: Yep, count us in as well. Sick of Expedia, Booking.com, bloody Airbnb. They put their combined hands out, we the Moteliers can’t even contact them. We have decided NOT TO RUN SPECIALS, our price is exactly the same as these sites. We also advise our guests to use the sites, ﬁnd a place, then ring direct, usually get a little extra something thrown in. Keep us in the loop. Carolyn: “I think that is a wonderful idea and am totally behind it. Count me in. Cheers and sunshine, Carolyn – Surfers Chalet. And have a very merry Christmas.” Will Papple: I am reading this from New Zealand. We have to mount

And then there’s the issue of not being able to communicate with some clients who have booked through an OTA – some clients believe they have booked through booking.com but we receive the booking through Agoda with no contact details so we can’t even send them directions as they don’t receive messages sent back to them via Agoda’s platform.

provider having a problem with

Now is probably the time to seize the enthusiasm of consumers to keep Australian dollars in Australia and we would support a campaign to book direct.

unauthorised discounted

Rob Golley:

(Facebook comment on

Have to fully agree with Brad. re the OTA’s. They don’t care about you or your property only their bottom line.

a combined campaign that represents both Australia and New Zealand. The bullying tactic from the OTA’s I think is running its natural course to the end. We pay the OTA to work with us to promote the sales of our properties not under cut us using our commissions to do so then bully us and indiscriminately charge us for their website inability to keep pace with the accommodation providers availability. I would support a fund to lobby governments in both countries’ to remove the OTA ability to trade in such a destructive manner. I am getting general feeling from the booking public they are sick of dealing with the OTA. We must as accommodation providers make sure we have websites that have the ability for the public to book with ease. We also need to develop an availably website for guests to ﬁnd and book local accommodation providers. Keen to hear from New Zealand and Australian providers. We need to work together collectively to have a united front. Vicky: Many people contact us to see if we will match a price they have found on a 3rd party website – and then we realise that 3rd party have discounted (sometimes by almost their full commission rate) our product. We will always match it but it is almost enforced discounting by the OTA, and time consuming as we have to try and ﬁnd the price the client has found on a 3rd party website.

an OTA to contact the ACCC as they will follow up on ‘collective’ and ‘repetitive’ complaints. “Yes, we all need to take a collective stand against these unscrupulous OTA’s and work on all customers to book direct. I also like many are over the rates they provide and expect us to honour. Time to do a Dick Smith OTA’s from Dick) and make all customers aware of OTA’s and that they are best to always book direct.

Sadly they are all as bad as one another and insist or deduct replacement costs from our future payments whether our error or theirs.

Hopefully, we can then all work on

Expedia under no circumstances will ever admit an error or fault on their part. Clearly they are carefully groomed in this.

Rick:

Airbnb only this weekend gave us the “pay for relocation costs” when one of their guests rang from one of our city stand alone properties to advise that they had a reservation and wanted access. My receptionist advised that as we had not received any notiﬁcation from Airbnb at this stage we could not provide property access at this time. In due course we were threatened by Airbnb for not providing the non-booked accommodation and they would be re located at our cost. Seriously the person on the other end of the phone could have been a bogus person trying to gain property access. However, its all our fault although Airbnb used the excuse that as the guest booked late there was not enough time to advise us of the reservation. Needless to say Airbnb and I are far from being on good terms after I advised them in no uncertain terms of their position and that they were NOT the accommodation provider/owner and how dare they literally try and “ﬁne” us. These bully tactics are well known by the ACCC who are constantly looking into these bully boy underhand tactics and would welcome your complaint. I urge every accommodation

INDUSTRY

reducing our dependence on the OTA’s and maybe eliminate them all together for our properties.

I cannot understand why our Tourism bodies are not promoting book local! With all the money they are spending on promoting our states, surely they should be including book local in their campaigns. The OTA”s don’t dictate their terms with overseas operators as the governments won’t allow this. We must stand together and stop them! You don’t see airlines being discounted by travel agents, why are we any different.” Margaret: Brad you are so right and Rick definitely agree with you on this particular point – book direct not get into bed with Expedia and others then they expect us to discount our rates for “their special promotion” Maybe it would have been better to say we are linking with Expedia and they have discounted their commission with this promotion – wishful thinking as it will never happen! Definitely book direct and save will work for us! Resort News has reached out to Expedia, Booking.com, Airbnb and Agoda for comment. ResortNews | January 2021

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PERSON OF INTEREST

Arvo Elias is the last man standing! English is not Arvo’s first language and it is astonishing to imagine such a young boy having to learn a foreign language, in a new country, while studying and working; but, again, Arvo excelled and became fluent in five languages. After he graduated as an engineer, he became a public servant and commissioned the last of the Snowy Mountain Scheme, which is a famous hydroelectricity and irrigation feat of engineering located in south-east Australia.

By Mandy Clarke, Editor

Resort News has its very own industry legend: Arvo Elias he was a resort manager back in the early days of management rights and is the popular writer of our industry technology column. Known for his good humour, hearty laugh and the fact that he has never missed a monthly magazine deadline in 25 years, Arvo has an incredible and (in part) sad story to share with us this issue. Arvo and I settled down for a yarn and he began by taking me back to world war two (he chuckles and points out that he is quite old) he was born in Estonia, a Baltic state, and was forced to flee across Europe as a child. He fled from the Russians, he tells me, “dodging bombs and bullets” alongside his mother and young aunt. He leaves me speechless when he tells me his father was “carted off to a salt mine” and the rest of his family were killed. Arvo admits he still has a bullet wound from this traumatic start to life. Arvo had just turned 12 when he arrived in Melbourne, Australia to begin a new chapter. Of this fresh start, he vividly remembers: “As we docked, I leant over the side of the ship and an Aussie wharf worker walked by, he looked up, threw a Fry’s chocolate bar to me and as I ate the delicious snack, I thought, ‘this place can’t be bad!’” However, Arvo found that life for migrants in Australia back then, was not easy. He describes living in “little more than a shed with no lighting and 60 strangers”. He recalls being given unidentified mincemeat on toast every day

Arvo Elias shares his astonishing story

to eat and he had to take a very long walk if he wanted to bathe. But, he says, all these struggles taught him a lot: “I survived.”

a book where the fictional hero ordered a Mint Julep cocktail in a bar - the author had also (helpfully) provided the recipe.

Arvo did so much more than just survive, he thrived. While he studied to become an electrical engineer, he also worked many jobs to help his dressmaker mother make ends meet.

“On one of my first shifts in the bar, a rich American hotel guest ordered a Mint Julep but even the most experienced barman in the hotel didn’t know how to make it, so I stepped up and made the perfect cocktail for the guest. Everyone was impressed that I (a young wet behind the ears kid) knew how to make this unusual drink and of course the rich yank rewarded me with a fantastic tip.”

He laughs remembering one of these jobs: “I was too young, I lied about my age and managed to get a job as a barman in a very grand hotel in Victoria, this was my first foray into hospitality. I am an avid reader and had read

He leaves me speechless when he tells me his father was “carted off to a salt mine” and the rest of his family were killed. INDUSTRY

Next, Arvo moved into private industry and helped introduce fiberoptic technology into Australia. He feels honoured and proud to have been one of ten delegates representing Australia at the Australian Research Board’s Technology Symposium hosting their Japanese counterpart in 1982. He was also invited to lecture at Macquarie University in the school of physics. However, his favourite job was whenever he “provided answers” and solved technical problems for others. I note that his talent for helping solve technology issues continues with his column in Resort News. Arvo and his wife Lyndel enjoyed holidaying in Noosa for many years but in 1990 they took the plunge and became the resident managers of Culgoa Point Beach Resort where they worked until 2000. At this time, Arvo’s health took a turn for the worse and he was given devastating news that he had just five years to live! He immediately retired but now laughs: “The medics were obviously wrong because I am still here and still in the industry, I think I am the last man standing!” Arvo tells me that in 1990, Culgoa Point Resort was a “dump” as it was used by the owners as their weekend ResortNews | January 2021

holiday “shack” rather than a commercial venture. When he and his wife took over, they instantly regretted the decision. He jests: “During construction it looked like Alcatraz and on day one only three out of 65 units were occupied but we dragged it up by the bootstraps and it became an iconic four-star Noosa resort.” After he retired from resort management, Arvo continued to work in the industry as a consultant and writing for Resort News. He says: Cybercons was born while I was at Culgoa. I designed its first web site in the early 1990s (when the web as we know it began) and ranked top 1 to 15 results which impressed so many in the industry that what started as a small hobby to service my business became a major job creating hundreds of sites, hence Cybercons.” Today, Arvo has four children and nine grandchildren and still lives in Noosa with Lyndel and their adored dog Charlee, aka “Muddy” the nickname

courtesy of Arvo, who says the mischievous dog’s new moniker is for obvious reasons. Arvo also has a lifelong passion for theatre organs, he owns one and he still plays but not as often as he would like, because “Muddy” is not keen. Despite being severely limited by his health issues and trips to see the medics, Arvo always has a dad joke up his sleeve and loves to cook for guests, with roast duck being his signature dish. He keeps his scientific mind sharp by reading and watching TED talks, and of course he is always researching for his Resort News column. As for the strange events of 2020, Arvo ponders how the virus will change the industry going forward and he fears the changes may not be good for small resort management owners. He has seen the industry evolve and grow over the years and admits he is shocked but also overjoyed that he is still around to be part of it and, of course, to walk, Muddy.

Mischievous Muddy sits by Arvo’s theatre organ

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INDUSTRY

ARAMA REPORT

Harmony the theme

of community living in 2021 As people seek clarity and reassurance in 2021, it will prove to be an important year for management rights operators with their unique ability to build harmony in community living complexes. From unit owner investors to owner occupiers and other residents and guests alike, there are a vast array of interests to be managed while maintaining a long-term vision for a complex’s infrastructure and value. It’s something a resident manager is in the best position to achieve with their intimate knowledge of a scheme offering the ability to deliver continuity and strategic advice even in

As buildings age over time, they need investment. There’s an artificial illusion that if a scheme is saving money on caretaking services it is doing well, but it eventually comes at a price to the body corporate and occupants of the building. This might be unit owners having to sell at a lower return than if the building was properly maintained, or special levies introduced to cover significant work that hasn’t been foreseen.

Trevor Rawnsley, CEO, ARAMA

the most testing of times. A resident manager’s role often sets the tone of the building, and schemes with harmonious relationships between the resident manager, body corporate manager and body corporate committee work efficiently and cost effectively.

It’s these situations that often lead to division and fractious relationships among a scheme’s stakeholders, and it’s something a proactive resident manager can avoid with their long-term ‘best for building’ approach and consultation. Experienced resident managers work with body corporate committees to diagnose current and future issues and offer solutions to navigate them in the best interest of the complex and its occupants. Unless you’ve got someone who is highly skilled overseeing preventative maintenance and being able to handle maintenance issues, the cost at the other end can be substantial. Instead of managing the investment on a short-term basis, management rights operators as the caretaker, review the infrastructure and things that need to be done

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

in the future and provide advice to the committee based on their expertise. Rather than the committee trying to manage this themselves, often year-by-year with members sometimes volunteering up to 60 hours a week, a management rights operator provides continuity, security and importantly the appropriate insurances. Outside of caretaking services however, a resident manager often also operates a letting pool of investor units, and as more people seek community living complexes as a place to live or to invest, their role will become even more important in maintaining harmony. The interests of an owner investor vary from those of an owner occupier, and a relationship between all is best served with a proactive resident manager who is on the ground 24 hours, seven days a week and can maintain a level of control over tenants and guests. Without this support, schemes can quickly lose control over the letting pool to external agents who can’t offer the same comfort or security. It’s reasons like this that the management rights industry will continue to gain visibility this year as people realise the irreplaceable value of resident managers.

QLD - NSW - VIC - WA

For membership enquiries:

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

INDUSTRY

ResortNews | January 2021

an owner’s access to a lawyer’s written advice? Let’s take a look at this scenario: an owners corporation believes that a building manager is in breach of its building management agreement or simply that an owner is breaching a by-law. The owners corporation engages a law firm to provide advice in relation to the alleged breach by the building manager or the by-law enforcement against the owner. The law firm provides written advice to the owners corporation. The building manager or the owner wants to see that advice and applies to inspect the records of the owners corporation. Whether an owners corporation may withhold access to a legal advice or other record requires an understanding of legal professional privilege, joint privilege, agency, and the circumstances that may constitute a waiver of that privilege.

What is legal professional privilege? Legal professional privilege is a right that exists to protect communications passing between a lawyer and a client. It is often thought that all communications between a lawyer and client are protected by privilege. However, a valid claim for privilege only applies to those communications made for the dominant purpose of providing legal advice or legal services to a client, or for use in current or anticipated litigation. The Strata Schemes Management Act (NSW) 2015 does not override that right so it can be claimed by an owners corporation when an owner applies to inspect records. The owners corporation bears the responsibility of proving its claim of privilege. The difficulty in the strata context ResortNews | January 2021

STATE REPORT

Can an owners corporation withhold The difficulty in the strata context is not so much whether legal professional privilege exists but rather who that privilege may be asserted against.

Brendan Pitman, Senior Associate, Small Myers Hughes

is not so much whether legal professional privilege exists but rather who that privilege may be asserted against. This is answered by the principle of joint privilege.

access to a communication if that communication is being accessed by an owner that is acting as an agent for an owner to which a claim for privilege exists.

Joint privilege

Even if the above analysis results in an owners corporation being able to claim privilege, it must be considered whether that privilege has been waived.

An owners corporation may share privilege with some or all of its owners that have a common interest in the subject matter of the communication. Often parties can have more than one interest in obtaining legal advice and it is not enough to simply identify a common interest. That common interest must have sufficient strength or quality to allow the protection of privilege to be shared. If the interests of the owners corporation and an owner in obtaining that written advice are diverged, then the owners corporation can claim privilege against that owner and withhold access to that communication against that owner.

Agency If an owners corporation has a valid claim of privilege and the interest in the communication is not shared with an owner, that owner may ask another owner to obtain access to that communication to get around the claim of privilege. The law closes this gap by providing that an owners corporation can still withhold

Waiver As the owner of privilege, a client can choose to waive that right to privilege. In our experience this is often done inadvertently without an appreciation of the impact it may have on that person’s claim of privilege. At its highest, privilege may be waived by conduct that is inconsistent with maintaining confidentiality in a communication. Applying this to an owners corporation, the type of conduct that may have the effect of waiving privilege includes: Making references to the content of legal advice in correspondence to all owners; including copies of legal advice in meeting minutes; proposing motions that refer to the outcome of legal advice. However, if the conduct relates to limited actual or purported disclosure of the contents of a privileged communication, and an express understanding that the communication is not

INDUSTRY

to be shown to anyone else, the conduct may not have the effect of waiving privilege. If there is conduct that ordinarily constitutes a waiver of privilege, it is necessary to consider whether circumstances exist that would make it unfair to determine that privilege has been waived.

Fairness If an owners corporation has acted inconsistently with maintaining confidentiality in a communication, a court has discretion to consider the circumstances surrounding that conduct and whether it would be unfair to determine that privilege is waived. This will usually be most relevant where there has been no intentional waiver of privilege.

Summary The application of legal professional privilege to communications in a strata context is complex and often overlooked. If a request to inspect the records of an owners corporation is made and the owners corporation is considering withholding access to records, the owners corporation will no doubt obtain legal advice (which itself may be privileged) regarding the owners corporation’s ability to not allow a communication to be inspected. Failing to do so may result in the protection of privilege being lost forever.

BCCM REPORT

Demystifying ‘sameissue’ motions under the BCCM regulations Current regulations that apply to motions with alternatives, or motions dealing with the same issue, have caused some contention amongst body corporate residents. In view of this, it may come as welcome news that the provisions on motions with alternatives have been removed from the new regulations that will commence on March 1, 2021. Instead, two or more motions that propose alternative ways of dealing with the same issue will now be categorised - on the agenda and in the voting papers -as a “group of same-issue motions”.

SCA REPORT

Under current regulations, where there are motions dealing with

Michelle Scott Commissioner, Body Corporate & Community Management

the same issue, a body corporate’s meeting agenda and voting papers are required to include first, the motion submitted by the body corporate committee that identifies the issue to be dealt with, and second, a list of the alternative motions received by the body corporate proposing different or alternative action in relation to the issue. If one of the alternatives requires a special resolution to pass under the

Feedback from bodies corporate has been that, in some instances, a higher-threshold alternative may be submitted strategically for the purpose of making it more difficult for other alternative motions to pass, by raising the threshold that is required. This coupled with the fact that owners are only able to vote for the actual motion plus one of the alternatives - or against the motion entirely - has meant that the existing arrangements do not always provide the fairest indication of group opinion. The aim of the “group of sameissue motions” provisions in the new regulations is to facilitate - as far as practicably possible - the success of the most popular motion in the group and the strengthening of owners’ voting rights. Under the new provisions,

Step 1: Identify the qualifying motions Each of the motions in the group of same-issue motions will have a particular resolution type that must be satisfied for that motion to be passed. This means that there will be a mixture of different motions that may have different resolution types within the one group. While some of the motions may only require an ordinary resolution, others may require a special resolution, or a resolution without dissent. A motion that receives the required number of votes to pass is a ‘qualifying motion’.

Step 2: Identify the successful qualifying motion If there is only one qualifying motion out of the group, that motion will automatically be the successful motion. If there are no qualifying motions in the group, there is no successful motion.

A plea for progress in the interest of consumers “Starting afresh” is what most people will be thinking this early in the year. In our industry that actually means that 2021 will continue as 2020 has ended - with a very strong focus on consumer issues that need to be tackled while we hold the government’s attention on the body corporate sector. If you have followed some of our work throughout the last year you would have noticed that we have become progressively louder in voicing consumer

regulations, all alternatives must meet that higher threshold.

owners will now be able to vote for or against any or all motions in the group or abstain from voting on any or all of the motions. This is achieved by providing a twostep process for dealing with a group of same-issue motions.

importance it carries. The government did not distinguish between commercial businesses that run gyms, spas and fitness clubs and the bodies corporate that care for common property.

James Nickless, President, SCA, Qld

issues in public. During COVID-19 lockdown it became quite obvious that we are still the forgotten sector in Queensland, despite its economic impact and despite the human, social

We wrote to the chief health officer, the premier, the minister for housing and public works and the attorney-general on several occasions to raise awareness and ask for recognition of this construct of a body corporate still so unknown to many in the public service and ministerial departments. COVID-19 as well as the membership on the BCCM Stakeholder Group, the

INDUSTRY

Ministerial Construction Council and the Ministerial Housing Council have raised the level of awareness of the 1.1 million stakeholders in the body corporate and community title sector. It was no surprise that we used this momentum to fuel our 2020 state election campaign and I am pleased to say that it was our most successful campaign with tangible outcomes. We explained the urgent need to look into statutory home warranty scheme for buildings with three storeys and more, resulting in the newly elected government agreeing to look into the statutory home warranty scheme with ResortNews | January 2021

If there are multiple qualifying motions, the qualifying motion with the highest number of votes in its favour will be the successful motion and the body corporateâ&#x20AC;&#x2122;s decision.So, how do you break a tie when multiple qualifying motions receive an equal highest number of votes in favour? Of these contenders, the one that received the least votes against it will be the successful motion. The question then remains -what about the situation where there are multiple qualifying motions with equal votes in their favour and equal votes against? The new regulations provide that a tie of this kind will be resolved by chance. Whether this involves pulling the motions out of a hat or drawing straws is up to the owners at the general meeting to decide.

The question then remains - what about the situation where there are multiple qualifying motions with equal votes in their favour and equal votes against? Original motion 2: To replace the wooden boundary fence with a similar wooden boundary fence at a cost of Y (ordinary resolution). Original motion 3: To repair the damage to the broken boundary fence at a cost of Z (ordinary resolution).

Broken Boundary Fence

Original motion 1 receives 17 votes in its favour, 1 vote against and satisfies the requirements of a special resolution. Original motion 2 receives 17 votes in its favour, 5 votes against and satisfies the requirements of an ordinary resolution. Original motion 3 receives 4 votes in its favour, 10 votes against and does not meet the threshold for an ordinary resolution.

Original motion 1: To replace the boundary fence with a higher quality fence at a cost of X (special resolution).

As original motion 3 did not satisfy the requirements of an ordinary resolution, it is out of the running. As both original motions

A group of same-issue motions in practice. Now, consider the scenario where a secretary receives motions from three lot owners proposing different ways to address the body corporateâ&#x20AC;&#x2122;s boundary fence, which is falling apart.

the Queensland Building and Construction Commission (QBCC) in a working group by the newly elected ALP government. One of our focus areas became the North Queensland insurance affordability and availability issue. The recent ACCC report is complex and will take time to absorb but the solution requires a range of actions to be taken right across the board, with a focus on getting more insurance players into the market to generate competition and affordability. Given that it has taken three years of hearings to produce a final report, the mechanism now is for government to gather stakeholders like SCA (Qld) and work through the report to find lasting solutions to fix the problem in 2021 and SCA (Qld) is calling for that working group to be formed immediately. In the middle of our state election campaign, we finally ResortNews | January 2021

1 and 2 satisfy the requirements for their resolution type, they are both qualifying motions. The next step is to work out which of the qualifying motions 1 and 2 has the most votes in its favour. As both qualifying motions received an equal highest number of votes, we must then look at the number of votes against. Original motion 1 is the successful motion, as it received the least number of votes against it.

Procedural requirements It is worth noting that, as well as having a group title, a group of same-issue motions should be listed on the voting papers in descending order, starting with the higher threshold resolutions. The order would therefore be as follows:

There is no doubt now, that our sector has the support from the government, but what we need is that these reforms now come to fruition. received the long awaited BCCM regulations after seven years, a huge win for our industry. But, as much as this was the first step in the right direction, pressing issues such as short-term letting, statutory warranties for defects, energy efficiency, overcrowding, illegal street parking and the impacts of the sharing economy are being governed by outdated laws that need refreshing. Greater self-regulation and the ability to take control and 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 memberâ&#x20AC;&#x2122;s voices are heard, demands are actioned, and needs are looked after. We campaigned and we have succeeded. The newly elected Labor Government has committed in writing to: Address the issue of North Queensland strata insurance availability and affordability.

INDUSTRY

Motions requiring resolution without dissent. Motions requiring a special resolution. Motions requiring a majority resolution. Motions requiring an ordinary resolution. Where the voting paper includes a group of same-issue motions, an explanatory schedule must accompany the voting paper. Section 90 of the new Standard Module contains an explanatory schedule checklist that should be followed for a group of same-issue motions. Importantly, the checklist requires that the explanatory schedule should include an explanatory note that provides general direction on voting rights, counting of votes and qualifying motions. A thorough example of this kind of explanatory note has been provided in section 90 as a guide. At first glance, the new provisions appear harder to grasp due to the number of factors involved. On unpacking the different elements, however, the concept is surprisingly simple. It is our hope that this article has provided some clarity on a topic that may otherwise seem daunting.

Instate a legislation working group to work further on act changes for the strata sector. Assess the possibility to have the statutory warranty scheme apply to buildings with 3 storeys or more. Consider a strata manager regulatory framework, a goal SCA (Qld) has pursued for 37 years. There is no doubt now, that our sector has the support from the government, but what we need is that these reforms come to fruition. We have received bipartisan support on our key priorities, and we plan to follow these up meticulously and ensure our members and in fact the people living in the 50,000 schemes across the state are not left behind. SCA (Qld) has always been at the forefront of strata issues and we will continue this well into the future as we look to the new Queensland cabinet and stakeholders in strata.

BY ALL ACCOUNTS

Fringe Benefits Tax

– The hidden forgotten tax! With the festive season behind us I thought I would discuss some of the fringe benefits tax implications for Christmas parties and staﬀ gifts and also review some of the common fringe benefits associated with the accommodation industry generally. If you provide certain benefits to your staff, or their associates, you may be up for fringe benefits tax (FBT). It is important to note that the benefit must be because of employment and not business ownership e.g., a benefit provided to a shareholder of a private company who is not and never has been an employee or officeholder does not constitute a benefit for fringe benefits tax purposes. This tax is separate to income tax and is based on a “taxable value” of the benefits provided, which is calculated according to the categories the benefits fall into. The tax office has even given FBT its own tax year, from April 1 to March 31. The upside for your staff is that they do not then have to pay income tax on the value of the benefits and payment of the FBT is tax deductible to the employer.

Entertainment and gift fringe benefits

•

Jonathan Hanaghan, JonathanGrant Accountants

benefit exemption and the now recognised fact that the ATO will accept that different benefits provided (e.g., gift and xmas party) at the same time are not added together when applying the threshold. Essentially this means that both the gift and Xmas party entertainment may be exempt from FBT even if provided at the same time, as long as each costs less than $300.

Car fringe benefits If you make a car you own or lease available for the private use of your employee, you may provide a car fringe benefit. For fringe benefits tax (FBT) purposes, a car is any of the following: •

a sedan or station wagon

•

any other goods-carrying vehicle with a carrying capacity of less than one

tonne, for example a panel van or utility (including four-wheel drive vehicles)

This will depend on the value of the car and also the expected business use percentage.

any other passengercarrying vehicle designed to carry fewer than nine passengers.

Housing fringe benefits

A car is taken to be available for the private use of an employee if the place of business and residence are the same ie standard management rights business. There are some circumstances where use of the car is exempt from FBT. For example, an employee’s private use of a taxi, panel van or utility designed to carry less than one tonne, is exempt from FBT if its private use is limited to:

A unit of accommodation includes any of the following: •

a house, flat or home unit

•

accommodation in a hotel, motel, guesthouse, bunkhouse or other living quarters

•

a caravan or mobile home accommodation on a ship or other floating structure.

•

travel between home and work

•

incidental travel in the course of performing employment-related travel

•

non-work-related use that is minor, infrequent, and irregular (for example, occasional use of the vehicle to remove domestic rubbish).

This is a common benefit provided to managers within the accommodation industry and in particular to businesses that are operated through modern corporate partnerships. It is clear the ATO do not care that the accommodation may be attached to a busy office that is open 7 days a week with the managers being on call 24 hours a day. The ATO still have an opinion that a housing benefit is being provided. Generally speaking the benefit will be calculated at 75 percent of the market rental for the dwelling in question. i.e., if a managers unit would ordinarily rent for $400 per week then the annual benefit is calculated at $400 x 52 x 75 percent = $15,600. This amount can be reduced by payments made to the employer by the employee or associate for use of the accommodation.

The most important message to reduce any potential car FBT is to seek advice from your accountant to see whether it is worth while completing a log book for at least 12 concurrent weeks.

©WindyNight - stock.adobe.com

This is common benefit provided for the typical work Christmas party usually by way of food, drink or recreation. Generally, the more elaborate the meal and the inclusion of alcohol the more likely the meal becomes entertainment. Also, where the food or drink is provided also effects the classification. Provision of the meals and drink off your business premises e.g., a restaurant is more likely to be entertainment and subject to fringe benefits tax. One major consideration is the “less than $300” minor

A housing fringe benefit may arise when you provide accommodation to your employee rent-free or at a reduced rent where that accommodation is their usual place of residence.

MANAGEMENT

In summary, if you are providing any benefits to employees it is important to seek advice from your accountant as the ATO are reviewing more of these arrangements every year and as the saying goes…” there is no such thing as a free lunch”. ResortNews | January 2021

on valuing short term management rights For almost as long as management rights businesses have been bought and sold valuers have based their valuation of the business on the nett profit of the business for the prior 12-month period, the assumption being that such nett profit was sustainable in the future. That compares to other business valuations where it is common to have regard to three years of trading. An accountant preparing an income verification report, or a valuer carrying out a valuation, would only make anything other than a minor adjustment to the prior 12 months nett profit if there was a one-off event not likely to recur where the nett profit may have increased or decreased as a result of that event (the Commonwealth Games on the Gold Coast being an example). In those circumstances the “usual” nett profit for the period of that event would be assumed, in place of the nett profit actually received during that period. So, how and why is the impact of COVID-19 going to change the landscape of valuations moving forward for short term businesses? The current answer is that it is not yet clear, and it is a topic being routinely discussed among accountants, valuers, brokers and all other stakeholders with an interest in the shortterm accommodation market. This article does not attempt to answer that question, much smarter minds than mine are still working on it, rather, I will provide an overview of where those discussions are heading. The “why” in the question above is simpler to answer than the “how”, so I will start there! COVID-19 is different to other one-off events for a number of reasons, some of which are: It goes without saying that the financial performance of every ResortNews | January 2021

So, how and why is the impact of COVID-19 going to change the landscape of valuations moving forward for short term businesses?

LEGAL EASE

COVID-19 impact

Nicole Cleary, Special Counsel, Mahoneys

short-term accommodation business has been affected by COVID-19 to some extent and we don’t yet know the full impact it will have.

Different geographical areas are experiencing different impacts and even within a single geographical area, the impact is different even amongst businesses in that area. Different business types, i.e., motels, short term apartments, resorts and caravan parks are being impacted differently. And if I haven’t already mentioned this, it isn’t over! Unfortunately, the impact of COVID-19 is likely to be with us for some time, at least until the international borders are open once again and confidence in international travel gets back to what it once was, if ever. So now we turn to the “how” accountants and valuers will negotiate this minefield and work out not only the nett profit of a business as at the date of contract, but the sustainability of that nett profit which after all should form the basis of a valuation. A number of suggestions have been posited, which are: 1.

that aren’t management rights businesses.

Use the traditional method of reviewing the previous 12 months and ignore the impact of COVID-19. This approach will naturally be specific to the business and the actual impact on that business during the prior 12-month period. Take an average of the previous three years nett profit, which is a common way of evaluating businesses

Or a projection of the prior and future nett profit based on a combination of items 1 and 2 and an estimation of what will happen in the future.

Some valuers are expressing a preference for the third method above and to my layman’s accounting brain, this makes sense. Another method being considered in the industry, where the income of the business has been affected by COVID-19 and is likely to continue to be affected, is to start with the nett profit for the prior 12 months, excluding the impact of COVID-19 (as in option 1 above), then apply the typical multiplier to that figure to arrive at a value. The next step is to look at the likely reduction in the assumed nett profit figure adopted over the next three years then deduct the total of those “reductions” from the value arrived at. For example, let’s assume the nett profit of a business for the previous 12 months, after excluding the negative impact of COVID-10, was $550,000 and a multiplier of 5.5 was adopted to arrive at a “normalised” sale price of $3M. Over the next three years, it is projected that the ongoing impact of COVID-19 would reduce that nett profit by $100,000 in year one, $50,000 in year two and $25,000 in year three, being a total reduction of $175,000. That would mean the sale of $3M would be reduced by $175,000 to $2.825M. At the time of writing there has been no formal adoption of any specific method, it is still in the

MANAGEMENT

discussion and analysis phase. Unlike the “old” method of verifying the nett profit of the business for the prior 12-month period, whichever method is used, valuers and accountants will need to drill down into the specifics of the impact COVID-19 had and will continue to have, on that business. This analysis, together with careful consideration of all the factors relevant to the specific business, will assist in determining the sustainability and appropriate multiplier for that business. From what we have seen, some businesses that were dramatically affected by COVID-19 have recovered to pre-COVID-19 levels or better, due to the influx of tourists from Queensland who may previously have holidayed overseas or interstate. Now that the Australian borders are mostly open, occupancy rates are predicted to improve further. Reports show that Australians travelling overseas spend more overseas than international tourists spend in Australia. While the international borders remain closed, it stands to reason that domestic spend on travel will increase with (hopefully) much of the money previously spent overseas being spent at home. We can only hope that when the international borders open there will be a balanced transition from domestic to international visitors and that occupancy rates will remain stable. What we all wouldn’t give for a crystal ball, but as things stand today, valuations are more reliant on projections and assumptions than ever. In summary, watch this space!

MOTEL MARKET

Leave some in the tank! Whenever starting something new we always kick oﬀ with such gusto and enthusiasm. Whether it is a new gym membership, and we attend three times a week, eager and ready to go, until the enthusiasm drops oﬀ and that slows to two sessions, then to one, then we stop going altogether. Unless you are truly dedicated it is hard to keep up that level of intensity. This is no different to operating a business and as time goes by and motivations change, interest diminishes, and the foot comes off the accelerator. This can be a natural progression or can be due to circumstances changing for health or relationship reasons or one of many other things that change in life. As a result, we slow down either on our day to day work life or make changes to accommodate, such as putting a manager in to operate the business, or simply adding additional employees to relieve the workload. This is not always the case though, with many continuing to work their business as hard as ever. It is part of their DNA not to slow down and even

The best financial decision-making position is when things are calm and not when they are based on highly emotive reasons or positions.

Andrew Morgan, Queensland Tourism and Hospitality Brokers

avoid taking time off at all. As people talk about having a balanced investment portfolio, the same goes for operating a service-based business. It can be extremely tough, but the day a guest is not greeted by a happy face, is the day we realise we have a shift in behaviour. Recognition of this is probably the point here, which should lead to thinking about timing and reassessing goals. There are many reasons that a business is brought to the market - tiredness (even burnout), retirement, changes in circumstances, upsizing, downsizing, capital gain and so on. All too often the final decision comes down to exhaustion, the owner has had enough and lost that enthusiasm that was so strong when they commenced. They no longer have the passion or the energy to drive the business

they once enjoyed doing and they decide they need a break. Considerations about selling probably needed to be considered prior to this point, not once the decision is taken away, by it becoming a “must sell” situation. The best financial decision-making position is when things are calm and not when they are based on highly emotive reasons or positions. During any given day motels have their busy times and their quiet times, and it is how one manages this time that determines their longevity within a motel. Some owners work themselves into the ground for two years to keep operating costs to the bare minimum and unfortunately reach a point where they need to get out. Others operate their motel business to suit their lifestyle requirements and ultimately end up operating the same motel for more than a decade, or in some cases I know of well over thirty years. Longevity such as this in any business must mean they are doing something right and have a good work/lifestyle balance that suits them. A common goal that new motel owners start out with is “a five-year plan”. I think it’s a round number that seems like a reasonable period of time to operate the business and by that stage be ready to move on to the next challenge. Having a goal is a great idea however not always easy to achieve for

MANAGEMENT

various reasons as mentioned above. Interestingly some reach the goal and beyond, others may decide after a year that it is time to move on. Either way making that decision at the right or appropriate time is the key. A strategy to prepare to take any business to the market is the ideal way to approach things. Many sellers will contact their broker of choice six months in advance of wanting to go to the market. The discussions should include what needs to be prepared in readiness, if any processes or operational matters need to be changed and allowing all involved time to have the correct information and data available ready to attract genuine buyer interest when the time comes. Too often deciding one day to sell and wanting it to be offered to the market the next day, is a recipe for failure. It is not a difficult process but more so one of getting it right rather than shooting from the hip. Making sure the business operator is on their game right up to the day they settle is going to achieve the best result. It will also make the sale process a less stressful pressure cooker when one is not forced to sell, by choosing to sell at the right time. The seller is happy, the buyer is happy - the ideal situation. ResortNews | January 2021

Reader warning. For this to make sense best to read the previous bulletin if you haven’t already done so. Then again, if you are used to my stream of consciousness rants press on regardless! Last month, we left things with observations around bank activity during COVID-19, a consumer culture of low responsibility and some sense that banks need to provide alternate options for clients who are prepared to pay for it. Let’s digress for a moment. As many of you will know I am a student of the motor industry. That is, I love cars and have a history of making “investment” decisions in this regard. I’ve noticed that car dealers do something interesting in the value-add bespoke department. They are not the only ones, but they are very good at it. The fancier the brand, the better. Want a car? No problem, here it is and here’s the price. Want leather? Extra. 5 years servicing? Extra. Extended warranty? Extra. Those beautiful 22inch wheels that the display model just happens to have? Extra. You see where this is going. Car brands do something else interesting. They have entrylevel no-frills vehicles and more expensive, better equipped aspirational models. Even the so-called luxury brands have adopted this approach. Even more cunning is the marketing that portrays the owner of said brand as special, sophisticated, discerning, elite, you know… a wanker! But seriously, that marketing works, and many car owners are happy to pay for the experience. Makes me wonder why banks in this country haven’t pinched the idea. Yes, some have private bank services, but these are aimed at high-net-worth clients. ResortNews | January 2021

gain traction overnight and will take some years to resource, but I think it’s worth a closer look. It will require a rethink of our political and social obsession with interest rates and a cost of service mentality. Here are a few examples of the options list for business loans.

Standard Equipment: Low interest rate and fees.

Mike Phipps, Director, Mike Phipps Finance

Why not open the experience to anyone prepared to pay for it? And by experience, I’m not talking about corporate boxes, long lunches or special events. Let’s just start with good old fashioned personalised service. You see, for far too long the banks have been engaged in a race to the bottom. That is, a race to offer the lowest interest rates while maintaining profits for shareholders. It should come as no surprise that in a country obsessed with the value of our house and the interest rate we pay the banks are simply giving us what they think we want. Unfortunately, if you squeeze lending margins and still want to make a few bob something’s gotta give. In this case, as in most corporate scenarios, it’s service and a cookie cutter approach designed to save money. For home loan applicants the outcome is most clearly manifested in slow credit approval times and a maddening level of paperwork. For business borrowers it’s a whole lot more complicated. Slow credit turnaround times are exacerbated by often strange and bizarre questions reflecting a combination of inexperience and convoluted credit policy. Now, divert already stretched resources to existing clients impacted by COVID-19 and service for new applicants goes from bad to worse. The answer I propose won’t

Loan applied for largely online and application administered off shore. No credit policy exceptions. No guaranteed turnaround times. No relationship manager. No specific real person to contact post settlement. Call centre contact model. A different person or department every time you want to do something.

Options List: Competitive interest rate but not the lowest. Premium service fee. Low minimum loan amount. Dedicated and well supported relationship manager with expertise in your industry. Dedicated credit team with expertise in your industry. Flexible credit policy with exceptions fully analysed and supported if sensible.

application process. Paperwork minimisation support. Hmmmm that options list is starting to look a whole lot like what our clients get from us already... for free! Yes, shameless plug. If I’m a borrower looking for 75 percent gearing on a management rights and need an answer fast, I have an option to have my request analysed by experts with credit support and resources to deliver. I’ve just got to be prepared to pay for that service. In my view banks and other corporates have got it wrong on client service. The old mentality of the bigger the client, the better the service is gone, soon to be replaced with a truly user pays model. Perhaps the end result will be an opportunity to blend product use and service levels into the truly valued added offering we see in sections of the airline industry. Maybe there will come a day where people will actually talk about being a premium bank customer in the same way they wax lyrical about business class flights and lounges. Here’s a question. If you could call a real person direct (in any big corporate) with authority to sort prett y much anything and with no mind-numbing call centre queues would you pay a bit extra? I would.

One stop shop no matter what you need.

In closing I hope that just as COVID-19 has forced us to rethink much of what we once saw as normal, perhaps we can extend that analysis to our relationships with the banks. The only thing I haven’t figured out is how to make brand cred and cache a value driver for bank customers. It’s a lot harder than just driving your fully optioned new Porsche down Tedder Avenue.

Personalised assistance throughout the

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MANAGEMENT

THINKING MR

The Options List and Bespoke Solutions Part 2

WITH

Q&A

Q&A Barry Turner

Barry Turner’s company Building Management Consultancy and Services (BMCS) is a leader in the management rights industry. He has inspected and prepared reports for more than 1000 properties and his goal is to ensure independent recommendations are fair to both owners and managers/caretakers.

By Grantlee Kieza, Industry Reporter

Q: How did you get into management rights?

Q: Is the management rights industry booming?

A: I came from the motor trade where I worked for 25 years. I had my own freehold service station for 15 years, just out of Caboolture, at a little place called Wamuran. I was a qualified A grade mechanic and employed four other mechanics. I had a big workshop. When you work in a country area you work on everything from lawn mowers to D9 bulldozers. It was a major fruit growing area for bananas and pineapples, so we did a lot of work for the farmers.

A: It’s the future of living. More and more people are moving into apartments and townhouses. A lawyer said to me years ago “Barry you have the only recession proof business in this country, you’ll never be out of a job”.

Q: You just turned 75 but you’re not slowing down?

Q: Being a mechanic, you wanted it run like a well-oiled machine? A: In the motor trade we had workshop manuals for every make of vehicle, logbooks for all the servicing and service schedules. I looked at the management rights industry and I thought there was nothing like that. So, I wrote an operation manual for Joanne Apartments and set it up with all the details, the way I ran my garage. It covered everything you could think of.

I’ve got 26 files on my desk at the moment which are all works in progress.

We had friends in management rights on the Gold Coast and we’d spend the weekend with them, and I got pretty interested in the business. We decided to sell the service station and we went into management rights in about 1990-91.

I live on two acres at Doonan in the Noosa Valley and I walk four kilometres every morning.

Q: What was your early experience in the business like?

The body corporate adopted it as part of the management agreement.

I’ve been working from my home office here for 20 years. It’s a good work environment.

A: It was in Caloundra at the Joanne apartments. I had two buildings and two bodies

When I came to sell the management rights about eight years later the first people who

I’m still working hard and I feel like I’m no more than 50. Age is an attitude not a number.

corporate to deal with and the place was tired. When I looked at the management agreement, I had an A4 page with the schedule of duties on it which included “maintaining the garden, cleaning the swimming pool”, but it was all very vague without detail.

MANAGEMENT

looked started asking questions and I handed them the operation manual. They came back the next morning and signed a contract for the business because everything was set out clearly.

Q: What is the biggest problem in the industry? A: It’s still ingrained in everyone’s brain that a manager’s salary should be based on a fee per unit per year. That idea has been in this industry forever, but I’ve inspected more than 1000 properties throughout Australia and New Zealand and I’ve never seen two properties the same. We work on eight different types of management rights, we have high rise buildings, medium rise, the low rise, the walk-up buildings, and they’re all different; then we go to the townhouse buildings, gated communities, retirement villages, and the commercial strata title. I’ve also done two strata title hospitals, a couple of marinas, strata title car parks. ResortNews | January 2021

Q: How did you begin the consultancy work? A: I had a friend who was working on resolving disputes over management rights and salary reviews and I bought a twothirds share of his business. I took the business from primitive spreadsheets to a cloud-based system that allows us to give very detailed reports on management rights and remunerations. I’ve identified 2700 individual duties across all properties, and I select each duty that applies to each building and the daily, weekly or monthly responsibilities. We drop in an estimated time for each duty and come out with a comprehensive report, breaking the tasks right down to minutes. We can then apply contract hourly rates and accurately decide what the remuneration should be.

Q: What’s the biggest building you’ve worked on? A: I’ve just finished a large complex in Brisbane, which has a shopping centre and three high rise towers on top of it. I also prepared the schedules of duties “off-the-plan” for a 40-storey building in Adelaide that has four bodies corporate in the one building and I reviewed a big project on the northern beaches of Sydney that had 15 buildings in one scheme.

Q: Your company is getting in on the ground ﬂoor of management agreements so to speak? A: Yes, I’m doing a fair bit of ResortNews | January 2021

A: When someone spends millions of dollars to buy management rights, they are often the single biggest investor in the complex. They should be going that extra yard to protect their investment and maintain its value rather than let it run down because of poor management. A lot of managers don’t like a specific schedule of duties because they want to do their own thing, they don’t like being tied down to a specific agreement but if the complex has been properly reviewed, the remuneration will commensurate with the schedule.

Q: What advice would you have for someone who wants to buy management rights? A: First, engage a lawyer who is experienced in the industry. Do your due diligence. Have a very good look at the management agreement. Look at the reason why the manager is selling. Is it because of disputes with the body corporate? Many people going into the business don’t know what the job really is. The research we’ve done shows that between 59 and 70 per cent of the purchasers of management rights are first time buyers, never managed a complex before. There are a number of training courses available for managers and there is great support from ARAMA (Australian Resident Accommodation Managers Association) to assist along the way.

then you’re losing the advantage. Ensure you have the ‘Resort News Advantage’ with a team of highly skilled industry professionals covering all the critical topics that affect your Accommodation property.

resortnews Issue 263 | July

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Q: Someone who buys management rights is making a huge investment in a complex?

If you’re not reading

Post Print Post No.

A: Yes, but so many people still use generic management agreements. That’s the whole basis of the problem in the industry because if everything is not set out clearly you get individual interpretations thrown in. Sometimes the manager thinks he has to do that job once a week but the body corporate wants it done once a day. Everything should be clearly spelled out to stop disputes. Our database, for instance, covers 71 different types of recreational facilities across the industry.

work for developers now. They send me the plans and I set up the schedules of duties and determine the remuneration “offthe-plan”. These schedules then form part of the management agreement rather than just see a generic schedule of duties applied to the scheme which inevitably leads to disputes further down the track.

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www.resortnews.com.au 21

GOOD GOVERNANCE

Preparation for storm and ﬂood season Here we are again in another storm, ﬂood, and bush fire season. Where did 2020 go? For those of us that have duties to maintain the common property of a residential strata or mixed-use commercial property we can be very busy over the November, December, and January period, not just enjoying the Christmas festivities, but preparing for the inevitable annual (storm and flood) deluge, or some cases, bush fire season.

©christianchan - stock.adobe.com

So, have you got your management plans in place?

Storm and ﬂood management plan We can almost guarantee that many of us in residential strata will be adversely affected by extreme weather events over the November to February period, so how do we get prepared to minimise the impact and be ready when the storm hits? Planning in advance is always better than reacting in a panic. A storm or flood management plan is simply about consciously thinking ahead, undertaking a risk assessment and developing a set of tasks to either prevent the “worst case scenario” happening, or help minimise damage should the “worst case scenario” occur. Planning should include the following:

Step 1, site assessment: Where does your site sit in the local flood zone? Are you situated on a known floodprone area? Does the local authority deem your property to be an at-risk property? The answers to these questions (and more information) can be obtained from your local council on their website.

Step 2, preventative maintenance: Simple preventative maintenance tasks make all the difference when the heavy rains come. Start by ensuring

sump pumps are all functioning and well maintained. If you don’t already have a standby pump installed, talk to your body corporate about installing a second pump as back-up should the primary pump fail. Additionally, do you have a standby generator for your pump(s) in case of power outage? Lynda Kypriadakis,

Step 4, ﬂood mitigation equipment:

Diverse FMX

your eaves, gutters and balcony drains are cleaned prior to the rainy season. Also get your subterranean drains and pits cleaned. By removing leaves and debris from the gutters and stormwater drainage systems you enable this infrastructure to function at its optimal performance when needed. A lot of flooding, balcony runoff into apartments and roof leaks etc., can be prevented by ensuring the roof gutters, balcony gutters and stormwater drains are well maintained.

Step 3, routine servicing of pumps: Ensure your stormwater pit and

If you are in a flood prone area, or if you have a vulnerable area on your common property, have you considered getting flood mitigation equipment custom-made for your building? For example, sandbags for carpark entrances, temporary flood barrier panels, temporary bunting devices, etc.

your equipment ordered early before others take all the stock.

Step 6, managing the extreme weather event: On the day(s) of the event you will need assistance. Who is on the committee that can help you with issuing notices for people to remove cars from the basement, or to help you with installing the flood mitigation equipment? By putting a team together in advance of the event you can delegate tasks to appropriate “helpers” and ensure everything is attended to in a timely manner. When government warnings are involved, who is responsible for managing these i.e., communicating information to relevant stakeholders?

Step 5, booking hire equipment in advance:

Step 7, moving important equipment to higher ground:

If you know that you will need additional hire equipment such as extra submersible pumps for example, make sure you put your tentative order in as early as possible. Don’t wait for the water to do the damage; get

If you have vulnerable plant or equipment in the flood-prone areas of the common property, take steps in advance to have the equipment relocated to higher ground. E.g., bin tractor, mowing equipment, etc.,

MANAGEMENT

ResortNews | January 2021

Also take steps to relocate hazardous materials that may pollute the waterways e.g., fuel containers, rubbish bins, etc.

overwhelmed with the deluge and possibly undersized? Did the flood mitigation equipment work as intended? What can we do better next time?

Step 8, clean up:

Step 10, rebalancing the pool:

After the fact there can be a lot of debris to clean up and dispose of, which may not be a prescribed duty under the caretaking agreement if you own the management rights. Coordination and arrangement of specialist contractors to conduct clean ups may be difficult after a storm event when everyone is chasing their assistance. Early booking of clean-up contractors may be the best way to ensure your building gets â&#x20AC;&#x153;back to normalâ&#x20AC;? the quickest.

No doubt the pool will need special attention to backwash (drain), remove organic material that may increase the phosphate levels in the pool water, and general rebalancing of the chemicals after the flooding. Overfilling of the pool from excessive rain renders the pool water vulnerable to becoming out-of-balance and prone to water borne disease. Getting the pool water rebalanced asap is important for health and safety of end-users.

Step 9, assessing infrastructure damage:

The individual that knows the building best should be the building manager. Everyone will be relying on you to show leadership at the time of a storm or flood event. If you need any assistance with taking a leadership role in managing the next flood or storm event on your property, let us know.

As soon as practical after the storm/flood event it is a good idea to assess the functionality of equipment and infrastructure to see how it performed during the event. For example, how did the drains function? Were the pumps working and managing the discharge, or were they

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MANAGEMENT

INTONET

Are you smarter than your TV? Happy New Year to you all! But where did the last one go? Has the earth increased its galactic speed; or was it you? There I was wrestling with a Christmas present decision and here I am writing my tale of woe!

connected television sets that support a range of apps. Many smart TVs have also incorporated voice recognition and in some cases video cameras so that you can give vocal commands to your television or use it for video chatting.

I bought a high-tech TV set fifteen years ago but just before Christmas it gave every indication the screen was about to expire. The minister for everything immediately demanded that we get the smartest smart TV available even though I wanted to buy a very “dumb” set because, as you know, I do not trust anything that has “smart” in its description.

corporations, and anyone that can hack these devices, have another window through which they can view your private activity. The data collection that typifies the internet is spilling over into your offline life and invading your home.

Smart TVs are essentially televisions that can watch you. Their surge in popularity, along with smart speakers, means

These devices incorporate some fiendishly clever technology to make them tools to benefit others. Smart TVs are internet-

Arvo Elias,

If you ever have set up one of these TVs you will be impressed with the absolute simplicity of the process; plug it into a power point, connect the aerial and follow the screen prompts and a few minutes later you will be presented with a fully functioning TV. You can use the normal remote control provided or even your smartphone to drive it. Simple! Some of the setup functions are model dependent but in my case the device happily discovered which wifi option were in use, found my password and connected itself to the internet. Those last steps were totally unacceptable as they breached all concepts of privacy. This is where you must really dig deep into whatever the device provides as it’s control panel to ensure you have the safest possible configuration.

©Dmitri Maruta - stock.adobe.com

Cybercons

Smart TVs monitor what you watch, with streaming services but they take it a step further. Typically, they use a system called automatic content recognition (ACR), which captures a section of pixels on your screen every few seconds. It then sends these pixel “fingerprints” to a third party that can quickly identify whatever you’re watching. In addition to this information, smart TVs add the date and time you watched this program, the channel the show was on, and whether you recorded it. This information is then used, just like your online browser history, to inform advertisers

which ads to target you with.

MANAGEMENT

ResortNews | January 2021

Kaspersky, the well-respected anti-viral developer offers some of the best advice: “Firstly check for any hardware features that are built into your devices. Being aware of any microphones or cameras helps you to be extra thorough as you go through your settings. Take an extra step to research your device models online, as other users may have discovered hidden cameras or microphones.” Beyond these basics, you can take a few more steps to keep your home private. Whether setting your TV up or being more conscious of your TV use, be sure to do the following. Check for soft ware or firmware updates and install them immediately. Most users don’t tend to update televisions and other IoT devices like they do with mobile devices and traditional computers. However, system updates often bring essential security fixes. Hackers exploit this behaviour and probe your devices for unpatched vulnerabilities. Consider disabling native internet on your smart TV. Televisions usually have a

limited support cycle, meaning security patches stop coming and leave you open to attack. Instead, turn off the built-in wifi radio and install your choice of streaming box or stick. Alternatively, cast from your device to a dongle attached to your TV to extend the protection offered by your devices’ very private network (VPN) and other security applications to your TV. Disable or limit always-on access by microphones or cameras. If you decide to keep your TV connected to the internet, you might want to limit how much access it has. Deactivate voice-activated controls if you don’t use them. They are always listening for command prompts, which leaves you at risk of accidentally activating recording. Always read all terms before accepting any agreements. Language buried in the terms of use may allow these manufacturers to gather data for product development and advertising purposes. While diagnostic feedback is normal, avoid accepting terms like those that prevent access to

TV features unless you share your data with third parties. Do not permit data gathering if you feel uncomfortable. Many companies collect anonymised diagnostic data meant to protect you while improving their services. However, any sensitive data gathered and stored from a massive user base creates an optimal target for hackers. If it is not properly anonymized, encrypted, or otherwise protected, your private data could be exposed in a company data breach. Use opaque black tape to cover cameras. If unused or it cannot be disabled, you’ll want to prevent unwanted eyes in your home. This crude but effective solution is used by the FBI across many cameraenabled devices. You can also purchase a webcam cover slide as a more elegant solution. Change any passwords when possible. Your devices may come with default backdoor passwords for factory setup, which tends to be revealed online for easy access by hackers. Update default passwords to be strong

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and unique from any other passwords you use. Long passwords using a variety of character types can significantly improve your security. Use a password manager to help you remember and create your new complex passwords. Also, you might wonder, “do smart TVs need antivirus protection?” The short answer is no, not for the device itself. However, smart TVs are just one possible breach point in the larger “Internet of Things”. So, to be safe, you’ll want to protect yourself against malware. Especially for your frequently used internet devices such as your laptop or smart phone. With this in mind, it’s best to get an antivirus soft ware suite to protect all these devices, as they also keep botnets and other malicious breaches off your devices. Experts aside, I suggest that you pull out the power plug whilst the device is not in use. I sincerely hope this year is by far a better one than the one we have had to bear.

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MANAGEMENT

ARAMA Service Provider of the year 2019 & 2020

www.mahoneys.com.au 25

Eat that cake! A belated Merry Christmas and Happy New Year to you all. I feel the words Happy New Year will never mean as much as they do to us this year, goodbye 2020 and hello 2021. If last year taught us anything it is perspective, compassion, and that life is unpredictable so take risks, eat that cake, and enjoy every moment. My first article for 2021 may take you a little out of your comfort zone but also instil confidence in you, and your ability as a professional real estate salesperson. Throughout my real estate career (which began when I was in nappies) I have been privy to work in both large real estate agencies and alongside resident managers. The verdict is that you, as the resident manager far outweigh a real estate salesperson. You just need confidence in your ability. They say knowledge is power and who is more knowledgeable about your management rights than you? No one.

Kelley Rigby, Managing Director, Letts Rebuild

you buy your home or better yet your management rights business because your broker looked nice and drove a luxury car? I think not… You bought it because it was what you were after and because your broker was knowledgeable and gave you all the facts. I am sure you have all figured out by now that I love a good scenario, so here goes: John/Joanne from Big Shot Realty list a property in your complex. On the first inspection he/she walks straight past your office without even a wave, placing his/her board at the gate keeping it ajar. After the inspection, a buyer walks into your office to say hello and

obviously gather information that the agent had no idea about. You proceed to explain all things strata, insurance, pet approval, by-laws, and community living. The buyer is most impressed, as he explains John/Joanne did not mention any of this vital information. This buyer proceeds to purchase the property after your meeting. John/Joanne get a big cheque at the end and you are lucky to even get an acknowledgement. Does this sound familiar? If I had a dollar for every time, I heard this story from a resident manager I would be retired and living in the Bahamas! If you, as the resident manager can sell a property when you are not even the selling agent how well do

you think you will do if you are? The advantages to your business if you take the challenge and become the onsite sales specialist far out weigh the fear of it. Not only is there a financial benefit but as a wise man once said to me “you keep the barbarians at the gate, you keep control of your complex and keep those pesky real estate salespeople at bay”. There are an abundance of companies and individuals that would love nothing more than to assist you and see you thrive. Everything you need to begin is at your fingertips, you have the ability and the knowledge, and you just need to give it a go… Build that confidence!

The outside real estate agents might have the fancy suits, swanky cars and expensive marketing but let me ask, did

There are an abundance of companies and individuals that would love nothing more than to assist you and see you thrive.

MANAGEMENT

ResortNews | January 2021

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Wash now... or pay later Having an exterior wash program in place for your building will not only ensure that it looks great, but reduce your maintenance costs and make it more likely to attract repeat guests and tenants. But how do you decide on a wash schedule that fits your needs and won’t cost you an arm and a leg? This guide (and FREE DOWNLOADABLE TEMPLATE) will empower you with the tools and information you need to get the most effective wash program in place for your building.

1. Get clear on why you are washing and define your maintenance goals This might seem obvious, but without clearly defined goals for the upkeep of your exterior facades and windows, you won’t be able to determine what type of wash you require or how often you should do it. Some questions to ask yourself: Are you washing your building simply to maintain your paint warranty and prevent corrosion, or do you value having a clean presentable building at all times? Do you only plan on cleaning your windows once per year out of absolute necessity or is being able to enjoy the view

years most managers consider too hazardous for their residents or regular cleaners to clean and should be done by rope access. When considering an “external washdown” proposal, make sure it includes all balcony walls and soffits – not just the building’s external facades, as this is the area where you’ll get the most value from your clean.

through crystal clear glass throughout the year important to your residents and guests? Once you know WHY you are cleaning, it will become much easier to figure out the “WHEN” or more importantly “HOW OFTEN?”

2. Understand the impact the environment has on your building Is your building a stone’s throw from the ocean? Is there a major construction project happening next door? Does your building back onto a busy highway? These are all important factors that you need to consider, and will have a dramatic impact on, how often you will need to clean your building in order to achieve your maintenance goals. If you manage a high rise building over the road from the beach and your goal is to ensure that your residents can enjoy a clear view from a spotless balcony, you might want to consider quarterly glass cleans and annual building wash downs as a minimum. On the other hand, if you manage an apartment block on a quiet

suburban street and the view isn’t a priority, then a wash down once every 2 years with an annual window clean might be more appropriate for you.

3. Know what you’re paying for Trying to determine what you are getting for your investment when considering wash down proposals can be quite confusing…

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Terms such as “inaccessible glass” or “external washdown” can mean different things depending on which company you are dealing with and not understanding exactly what you are getting could leave you severely out of pocket. For “inaccessible glass” cleans, make sure you determine whether or not this includes the external side of your balcony glass balustrades – in recent

MANAGEMENT

ResortNews | January 2021

TOURISM REPORT

Aussies are keen to travel but “drive market” prevails, plus regional round-up! By Mandy Clarke, Editor

Another new study indicates that Aussies are eager to travel domestically. Now borders have reopened across all states, Aussies are looking forward to the freedom of exploring their own country in the coming months. They are also being enticed by state governments using various incentive programs to compete for travellers. A short-term survey by market research platform Glow looked at Australians’ future travel plans for domestic travel. The study, which gathered responses from October 23 to October 28, showed that Queensland and New South Wales are at the top of the wish list for interstate travel destinations. With state borders open, 44 percent of respondents say they are likely to travel to New South Wales, and 44 percent are likely to travel to Queensland. Carolyn Childs, CEO of MyTravelResearch.com, stated: “New South Wales has been heavily promoting its road trip experience, both

Images courtesy of Destination Gold Coast

intrastate since early lifting of restrictions, and increasingly interstate. It is encouraging to see that focus rewarded. “Queensland appears to attract travellers from across the country, with 65 percent of respondents stating they plan to fly rather than drive. New South Wales sees more road-tripping Aussies inbound with 60 percent of respondents stating they would drive to the state. “No matter where Aussies plan

to go, it appears that driving to a destination is the top choice for upcoming domestic travel. 67 percent of respondents stated that driving will be a part of their next domestic trip. 58 percent of drivers plan to drive four hours or less to their destination, suggesting that many plan to support their home state, while 23 percent plan to drive more than four hours. 13 percent are setting out on a road trip holiday, taking in all the open roads and freedom of travel. Craig Hooley, COO of Minor Hotels Australia and New Zealand, who operate over 55 Oaks Hotels, Resorts & Suites and 4 Avani Hotels & Resorts across Australia, said: “We are seeing a pick-up in self-drive guests especially on the Sunshine Coast, Toowoomba and at our Hunter Valley property in NSW. With the Queensland-New South Wales border now open to all travellers, we’ve seen an increase in bookings from those who can now travel to be with their friends and family

TOURISM

over the holiday period.” Opportunities for widespread domestic travel are being welcomed across the country, with each state offering incentives to keep its travellers local. The Victorian State Government has led the way in stay-in-the-state inducements, announcing it will offer 120,000 vouchers to Victorians, worth $200 each, in an attempt to stimulate tourism and the regional economy. Under the $28 million voucher scheme, Victorians will qualify for a voucher if they spend at least $400 on accommodation, attractions or tours in regional Victoria. Although details are still being finalised, the scheme is expected to be up and running in time for Christmas. In other states, there has been a focus on metropolitan tourism, with hotels and accommodation in state capitals being hard-hit by a dearth of overseas travellers. Tasmania, South Australia, and the Northern Territory ResortNews | January 2021

have already introduced voucher schemes, and the NSW government is being lobbied to instigate a similar incentive for Sydney accommodation. When it comes to flying, business travel is not in the cards for most. Glow’s survey revealed that more than half of respondents see their next flight as being for leisure purposes, followed by 24 percent of respondents that intend to take their next flight to visit family. Only seven percent see business travel as the purpose of their next flight, an uncommon activity amid current COVID-19 times. Glow conducted an additional study from November 19 to November 24, to assess Aussies’ current enthusiasm to begin taking these holidays. Results were positive; 62 percent of respondents plan to take a domestic holiday within the next twelve months. While a small portion of Australians remain cautious,16 percent of respondents stated they were very unlikely to travel domestically in coming months. Carolyn Childs offers reassurance on the industry’s protective measures.

The travel industry looks ahead to welcoming Australians as they explore their own backyard; with incentive opportunities abound, there’s never been a better time to travel close to home.

Regional round-up! The Gladstone region Nicola Scurr, tourism manager of Gladstone Area Promotion and Development Ltd told us: “The region is looking good coming into the school holidays, with steady bookings observed in Agnes Water/ The Town of 1770 and on Heron Island. We are still seeing a lot of first-time travellers to the region and their feedback has been positive overall. Looking into 2021 we hope the steady stream of visitors continues and we are working on our new campaign piece ‘You’ll be Glad’ to encourage people to travel to the Gladstone region and enjoy the many experiences we have to offer.”

Gold Coast Destination Gold Coast Chairman, Paul Donovan reported: “As we lean into a new year, Gold Coast tourism remains focused on rebuilding its pre-COVID $6 billion industry to capitalise on strong demand for travel and means to stand out from the pack in a competitive market. “The peak holiday season presented us with the biggest influx of visitors as we welcomed our bread-and-butter domestic market back to the nation’s preferred holiday destination. “Timed with Queensland’s consecutive border reopening announcements, our $3.5 million ‘Come Back and Play’ campaign, which launched in October for eight weeks and performed exceptionally well, surpassing 2019 results across a similar campaign. “The region continues to rank near or at the top of desired destinations to visit in Australia,

ResortNews | January 2021

“Demand from Gold Coast’s fly and drive markets is strong, and we anticipate this will continue to grow along with travel confidence. “Destination Gold Coast will continue its marketing blitz domestically in addition to expanding our footprint by way of the largest ever campaign in New Zealand to lure our mates across the ditch once a definitive two-way travel bubble is confirmed. “We will be relentless in our pursuit to convert Aussie travellers that would ordinarily travel abroad by capturing the hearts, minds and wallets of travellers to come and play in paradise.”

©Darren - stock.adobe.com

“The cautiousness of traveller sentiment is a good reminder that, although we’ve seen a strong surge in bookings and enquiries as borders reopen, as an industry we can’t be complacent. We need to demonstrate vigilant behaviour, and make sure that the investment the industry has made to be COVID-safe is clear and easy to find. People are looking for experiences after a horrendous year, but safety is the cost of entry to that,” states Carolyn.

with Booking.com, Wotif and Flight Centre releasing data that shows the Gold Coast was the most searched for or booked destination in Queensland or nationally in the lead up to summer.

TOURISM

Accessibility could be the ‘game changer’ your business needs as you look to bounce back from the impacts of the pandemic says the World Tourism Organisation (UNWTO). On International Day of Persons with Disabilities, UNWTO launched its new set of Inclusive Recovery Guides and confirmed that accessibility must be all tourism businesses top priority. UNWTO suggests that “this can be a real game-changer for destinations and businesses, helping them recover from the crisis and grow back in a more inclusive and resilient way”. The guides have been produced in partnership with the European Network for Accessible Tourism (ENAT), the ONCE Foundation of Spain and Travability from Australia. They make clear the importance of placing inclusivity at the centre of recovery plans and provides key recommendations for achieving this. UNWTO Secretary-General Zurab Pololikashvili said: “Tourism environments and services are often designed without considering the different access requirements that visitors and locals may have. The tourism sector must prioritise accessibility. This can be a real game changer for destinations and businesses, helping them recover from the crisis and grow back in a more inclusive and resilient way.”

Highlighting the potential benefits for more accessible destinations, the publication notes that, by 2050, one in six people worldwide will be aged 65 or over, rising to one in four in Europe and North America. Furthermore, data shows that the average spend of tourists with disabilities in Spain, for example, is more than 800 euros, compared with just over 600 euros for tourists without disabilities. The UNWTO Inclusive Recovery Guide – Socio-Cultural Impacts of COVID-19: Issue I Persons with Disabilities, draws on the expertise of UNWTO’s ethics culture and social responsibility department and its partners.

Adaptation of protocols, follow UNWTO guidance on adapting general health and safety protocols, considering that customers may have different abilities and requirements. Inclusivity in post-pandemic tourism, including the effective use of data to guide decisions on accessible tourism planning and adjusting accessibility policies and strategies to reflect post-COVID realities. Accessibility in business planning, treating accessibility as a competitive advantage, improving customer service, and the application of harmonized international standards to enhance quality of life for all. Staff training and inclusion, extending professional training to better cater for tourists with different abilities, and ensuring equal opportunities in the tourism workforce. Innovation and digital transformation, embracing innovation to make travel and tourism safer, smarter, and easier for all.

While much progress has been made, the publication makes clear that persons with disabilities and seniors encounter barriers preventing them from fully enjoying tourism experiences, even more so during the pandemic. Now, as UNWTO leads the restart of tourism globally, this guide outlines steps that governments, destinations and companies should take to build back better, becoming more inclusive and competitive.

UNWTO works with government of Indonesia to restart tourism in Bali UNWTO has embarked on the first in-person visit to Bali since the start of the pandemic. The delegation met with key figures from the government of the Republic of Indonesia to advance collaboration as the country gets ready to reopen its borders to international

The recommendations advocating for accessibility during the recovery of tourism insist on six main action areas: Assistance in a crisis, including accessibility during every stage of repatriation, which requires the backing TOURISM

visitors and restart tourism.

Hospitality staffing crisis in New Zealand The key message from hospitality venues across NZ this season is to be kind and patient as many businesses struggle to find suitable staff. The critical lack of hospitality employees is due to the Covid-19 pandemic. NZ relies heavily on overseas employees to help cover seasonal labour shortages and local economies rely on these casual workers. Overseas visitors usually arrive on shore with the training and experience needed to meet the needs of kiwi hospitality businesses but due to travel restrictions, this year is an exception. Despite early and on-going recruitment, there are not enough ready, willing, and able workers available to fill the gaps. Many favourite venues have been forced to limit operating hours, including reducing opening days from seven days a week down to six or five to ensure their current loyal employees get the rest they deserve. Ian Williams, Hospitality New Zealand branch president for Nelson, said that the real pinch will be during the school holidays, Christmas, New Year, and when large events impact the City. He said: “All venues are geared up to provide the best service possible, but please bear with us, understand the pressure we’re under this year, and be kind to our fabulous staff so that they also have a happy workplace. ©tawatchai1990 - stock.adobe.com

of destinations and disabled peoples’ organizations (DPOs).

©Elnur Amikishiyev - stock.adobe.com

TOURISM INTERNATIONAL

Accessible tourism will be the ‘game changer’

ResortNews | January 2021

THE LAST RESORT

New Starry Night glamping experience for Qld’s Sunshine Coast By Mandy Clarke, Editor

down to insulate the space, with heat provided by the rotating fireplace, while in summer the flaps can be raised to capture breezes from the surrounding forest. There are also four ceiling fans for any very warm days.

In this post COVID-19 travel restricted era, nature-based getaways are in high demand and a new luxe glamping retreat has opened on Queensland’s Sunshine Coast to provide the ultimate holiday break.

The Nelsons take an equally sustainable attitude towards the food they serve. A breakfast hamper is delivered each morning for guests to cook at their leisure. The breakfasts feature eggs, vegetables, nuts, bush tucker and fruit from Starry Nights’ own gardens, complemented by the best local produce, including milk and yoghurt from nearby dairies in Maleny, organic coffee from Clandestino in Noosa, and meats from farmers markets.

Starry Nights has been three years in gestation, and very much a family effort of Shane and Nicole Nelson, who wanted to ensure the perfect location and environment for their ecoretreat. Currently, two tents have been opened, but more will be added in 2021, though only on the basis that each tent is totally secluded from their neighbour. Starry Nights is located in Woombye, in the foothills of the Sunshine Coast Hinterland, just a short drive to the famous Hinterland and the heritage villages of Montville, Maleny and Mapleton, it is also just a 20-minute drive to the beaches and Sunshine Coast Airport. Set on 17 hectares, Starry Nights is about immersing in serenity and nature, while enjoying the retreat’s distinctive style and character. Centre-stage of the property are the glamping safari-style suites. Vast in size and totally designed to showcase the natural setting, features include a king-size bed (with USB chargers), lounge ResortNews | January 2021

area, kitchenette, a fireplace for cool winter nights, ensuite rain head shower and toilet, and an imposing, freestanding bathtub that makes the most of the views, while still ensuring total privacy. The raw and earthy style glamping tents and all the interior furnishings have been designed by Shane and Nicole, whose belief in sustainable development

can be seen throughout. They made the tents using natural building materials, the floors are finished with a natural hard bees’ wax oil, the kitchenette is made from solid wood (no plastics), and doonas and rugs are either organic linen or natural wool fibre. Built off the ground, the tents feature full length “windows” that in winter can be rolled

TOURISM

Guests are greeted with a welcome cheese platter with Australian organic sparkling wine (for guests who book directly with their website). An expansive communal recreation lounge is available, where guests have access to dining facilities, a pizza oven, sauna and pool table. Guests can order organic wines, beers, and fruit juice or make themselves tea and coffee to consume while enjoying the views and colourful birdlife. The Sunshine Coast Hinterland is a haven for trekking, wellness, markets, cooking schools, restaurants, boutiques and art galleries, making Starry Nights the ideal base for an indulgent long weekend or extended stay.

EVENTS Keeping up with the Women in Management

SUNSHINE COAST LUNCHEON @ BOAT SHED

Founder, Marisa Millane said: “A big congratulations to Resort News on celebrating your 25th year anniversary in December. “I have always enjoyed reading Resort News, both as a manager in the resort industry and now as an industry associate. This magazine is a great informative space and what I personally consider to be a great monthly read with lots of information and the industry keeping us up to date on all things necessary. “I am also incredibly grateful to Resort News for the ongoing support in featuring our Women in Management Rights monthly luncheons, thank you. “Our latest Sunshine Coast luncheon was held at the beautiful Boat Shed, it was wonderful catching up and sharing stories with the Sunny Coast girls, a delightful afternoon indeed.

A very big thank you to all ladies that have attended the luncheons in the year, and a reminder to those in the industry space to bring along any managers that you think may enjoy some time away from their resorts. “Be sure to add us on Instagram, Linkedin and join our Facebook group.” Talking about the final luncheon of the year Marisa told us: “What a beautiful way to wrap up the last luncheon of 2020 held at the Bine Bar, Gold Coast we had live entertainment, secret Santa and lots of networking, wishing everyone a happy safe blessed Christmas and I look forward to seeing everyone again in the New Year. That is a wrap 2020 done and dusted. 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 | January 2021

bars, hotels, and entertainment precincts in multiple countries, I’m excited to bring my unique approach to guest experiences and service to Ovolo. The group shows no sign of slowing down and I’m confident that my passion for exemplary presentation, service and consistency, will keep us on the front foot.”

Hayden Hughes named general manager of Hilton Sydney

Wayne Taranto

Based in Sydney, Wayne will be responsible for all operations for Australia hotels. He joins Ovolo with 26 years’ experience as a respected leader in the vibrant Australian hospitality industry. His areas of expertise are in the inception and execution of luxury brand operations and innovative culinary and beverage conceptual development and delivery, all extremely valuable as Ovolo expands in Australia, with Ovolo South Yarra opening 2021.

The hospitality veteran of 30 years has been appointed general manager of Hilton Sydney in Sydney’s CBD after serving as general manager of the Sofitel Brisbane Central.

Wayne said: “With a diverse portfolio of venues, restaurants,

Hayden said: “I am grateful for the opportunity to join such an

PEOPLE

Ovolo Australia appoints “Rockstar” Wayne Taranto as its new director of operations

Left to right – Philippe Kronberg Glen Boultwood Antony Page Michael Johnson Richard Doyle Bernhard Langer Fazila Fahad Sally Burgess Phillip Ryan

internationally renowned brand to lead the iconic hotel that is Hilton Sydney, the opportunity was irresistible. The timing could not be more perfect as we gear up for what we hope is a big year for the hotel in 2021.”

TAA elects new chair State tourism and accommodation body, Tourism Accommodation Australia (TAA) NSW, has elected Richard Doyle as its new chair. Hayden Hughes

TAA NSW CEO Michael Johnson said Mr Doyle was elected at the final board meeting for 2020 after Antony Page stepped down from the role. He said: “Antony Page has left the board to re-locate to Victoria and we wish him every success with the opening of the new Ritz

Carlton in Melbourne in 2021. “Antony has done a great job during a difficult period. In his place our board elected, Richard Doyle, group general counsel, StayWell Holdings to the position. “Mr Doyle has more than 25 years’ experience in the industry, and, at a time when we are recovering from our worst trading period in living memory, will be a great support for our board and myself.” The vacant board position has been filled by Sally Burgess, general manager, Radisson Hotel and Suites Sydney. Mr Johnson said: “We welcome Sally Burgess to the TAA NSW board, and all look forward to working with her in what is sure to be a tough 2021.”

NoVacancy gets green light to return The much awaited NoVacancy Hotel + Accommodation Industry Expo has been given the official green light from the NSW government and the NSW Health Department. Taking place on 23rd and 24th of March at the ICC Sydney Exhibition Centre, NoVacancy will follow other national industry leading events starting the year off in Sydney including Reed Gift Fair and Australian Healthcare Week. Missed by many in 2020 due to COVID, the exhibition each year serves as the must attend for accommodation owners and managers, showcasing thousands of solutions that can help reduce costs, drive revenue, enhance the guest experience and run an allround efficient operation. One motelier described it “like a huge shopping centre where

ResortNews | January 2021

‘The next era begins here’ Mr Langton confirmed that more than 300 suppliers had already confirmed their presence across the 14,000sqm of exhibition space; ready to help accommodation professionals get back to business, drive more revenue, enhance the new guest experience and to optimise operational efficiencies.

every single store is something different for all parts of our business.” Following a tumultuous 2020 for the accommodation sector, National Media CEO, Brad Langton, commented that the tide has turned for many properties as domestic borders open and pent-up demand to travel is made possible for Australians. “Our team have spent the last 8 months continually speaking with the owners and senior managers

of Australian accommodation properties. It’s been a pretty grim rollercoaster, particularly in CBD locations, but November and December have seen green shoots start flowering more aligned to their regional counterparts, some who’ve seen record occupancies through COVID. There’s still a long way to go for many as they navigate a new channel mix with international, business and MICE markets all disrupted.” Underpinned by the theme

EVENTS & APPOINTMENTS

The event remains as free-toattend for industry professionals; however, attendees will be required to pre-register for their tickets to reduce contact through the onsite process. NoVacancy will have comprehensive COVID-safe measures in place, working with the ICC and NSW Health to ensure the safest operating business environment for all involved. Complimentary tickets are available to industry professionals who register online at www.novacancy.com.au

DEVELOPMENT NEWS

Accor going from strength-tostrength in 2021 By Mandy Clarke, Editor

shopping mecca Eastland, Ringwood is the gateway to the Yarra Valley and a rapidly growing commercial corridor.

This year is going to be a strong year for Accor in the Pacific with several new accommodations opening. Accor has committed a strong investment in tourism for both Australia and New Zealand.

SA, Sofitel Adelaide On track to open in mid-2021, Sofitel Adelaide will be a world-class hotel, exuding a refined and understated sense of modern luxury with a touch of Sofitel’s renowned French decadence. Located in Currie Street in the city’s CBD, the hotel is the first internationally recognised five-star hotel to be built in Adelaide in 30 years. The hotel will be part of a 32-storey mixed-use tower, which in addition to being a hotel, will also house the tallest residential development in South Australia. Of the 32 stories, the first 24 will be dedicated to the hotel, with a total of 250 guestrooms and suites, together with leisure and business facilities, which will include a restaurant, four bars, ballroom, swimming pool, health and fitness centre, meeting and conference rooms and a Sofitel Club Lounge.

From the launch of the Mövenpick brand in Australia, to the first internationally recognised five-star hotel to be built in Adelaide in 30 years, Sofitel Adelaide, and the two brand new The Sebel properties, Accor’s commitment to the region is stronger than ever. Accor Pacific CEO, Simon McGrath, said: “With the domestic leisure market growing, Australia and New Zealand are well positioned to capture both domestic travellers and returning international travellers when the borders reopen. The new properties represent the best of Accor, in the most desirable destinations and offer an exceptional choice for guests. We have worked with outstanding partners to make these properties become a reality and all hotels, resorts and apartments will be part of our award-winning ALL loyalty program.” Here are Accor’s most anticipated new properties scheduled to open in Australia in 2021:

NSW, The Porter House Hotel Sydney, MGallery Accor will open a new-build luxury boutique MGallery hotel, The Porter House Hotel Sydney, on Castlereagh Street in late 2021. This landmark mixed-use development will comprise a 36-storey tower with a 121-room hotel housed over levels 1-9 with 131 residential apartments above

Artist Impression - Sofitel Adelaide

on levels 10-34. Designed by the award-winning Candelapas & Associates architects, the hotel and residential apartments will interweave the existing 1870s heritage-listed Porter House adjacent to the tower, which will be thoughtfully redeveloped as part of the project. Guest rooms and suites in the new tower will take their cue from the heritage building with thoughtful use of materials and detailing. The Porter House Hotel will also feature an array of additional facilities, including lobby, pool and fitness centre, two restaurants, a fourth-floor bar with roving art gallery, meeting and private dining facilities and a business centre.

Victoria, The Sebel Melbourne Ringwood The Sebel Melbourne Ringwood is on track to open in February 2021, which will bring 103 rooms, including full apartmentstyle rooms, to Melbourne’s burgeoning eastern suburbs growth corridor in Ringwood. Spanning six floors, the property will feature 48 studio apartments, 48 one-bedroom suites and seven two-bedroom suites, with guest access to impressive onsite amenities including, an ultra-modern fitness centre, four sophisticated and wellappointed meeting spaces, two practical function rooms, a restaurant, delicatessen and bar and an open-air terrace. Located 23km east of Melbourne’s CBD and two minutes from retail

DEVELOPMENTS

Tasmania, Mövenpick Hotel Hobart Accor will introduce its premium Swiss-born hospitality brand, Mövenpick, to Australia in January 2021. Mövenpick Hotel Hobart is set to be a warm, contemporary designed hotel with a cosmopolitan vibe that invites exploration and discovery. Located on Elizabeth Street, one of Hobart’s principal heritage streetscapes, and close to the bustling Hobart waterfront, the new build hotel is within close reach of the city’s key commercial, retail and leisure attractions and will boast 221 guestrooms and suites with spectacular views of Hobart’s historical city and harbour, an onsite restaurant, gymnasium and meeting facilities. A range of Mövenpick brand signatures will also be offered at the hotel, such as a daily ‘Chocolate Hour’ for guests. ResortNews | January 2021

Prestigious Alexandra Headland Complex with High Net Income and 25 Year Term Remaining Resort Management Sales are proud to present the rare opportunity to acquire a high net income, highly sought-after property. The Mirage is an easyto-manage, mixed-stay property located in tranquil Alexandra Headland, between Mooloolaba and Maroochydore on the Sunshine Coast. The Mirage has long been regarded as one of the most prestigious complexes along the Alexandra Headland foreshore. Comprised of 59 spacious and fully self-contained units with large balconies and beautiful views, the property comprises of both short-term holiday letting and resident owners who enjoy the comfort and amenity of resort facilities. Key highlights:



High net profit business – would suit syndicated purchasers



Solid existing short-term letting pool and high guest return rate



Excellent body corporate salary of $117,000 exc gst and room for growth in letting pool Spacious 3 bedroom managers residence including 2 exclusive use car parks

Large, separate modern reception area and back office plus large linen room (on title)



25 years to run on the Agreements



Impeccable building maintenance history



A full-size tennis court



A heated inground swimming pool



A heated 15m lap pool



A heated children’s lagoon pool



A gymnasium



A resort-style heated spa, sauna and steam room, and



Barbecue and outdoor dining areas

Net profit: $589,192 Business price: $3,447,000 Total real estate: $850,000

Total price: $4,297,000

For more information, please contact:

Matt Campbell - 0410 343 219 matt@managementrights.com

Barry Davies - 0438 554 995 barry@managementrights.com

Providence Holiday Park | Snowy Mountains

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

MANAGEMENT RIGHTS Gold Coast Park Lane

Tom & Belinda Bialowas

Main Beach

MRS

MOTELS & OTHER Queensland Chinchilla Motor Inn

Tony Little

Chinchilla

New South Wales L to R Hans & Lynn Basedow with Russell Rogers

Hans and Lynn Basedow are congratulated by ResortBrokers NSW south coast specialist and Senior Broker Russell Rogers after they completed the freehold sale of Providence Holiday Park in the Snowy Mountains.

Alan Jugovic & Russell Rogers

One of the buyers was Alan Jugovic. This was the second freehold caravan park in NSW that Russell sold and settled within in a week, along with the Deniliquin Pioneer Tourist Park.

Deniliquin Pioneer Tourist Park

Sue Williams

Deniliquin

Quest Albury

Vincent Bellerose

Albury

Beach Drive Morel

George Salim

Batesmans Bay

New Olympic Motel

Jeet Singh

Lismore

RB TB

Hamilton’s Henry Parkes Motor Inn R. Bowen & P. Herd

Parkes

Wentworth Central Motor Inn

R. Acharya & R. Dahal

Wentworth

Lodge Outback Motel

Undisclosed

Broken Hill

Maria & Stalis

Halls Gap

Dareva Pty Ltd

Robe

Victoria Pinnacle Holiday Lodge

South Australia Lakeview Motel & Apartments

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 - ResortBrokers; RS - Resort Sales; TO Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH - Ward Commercial Hotels. * In conjunction

NEW MANAGER SPOTLIGHT: PARK LANE

Main Beach locals settle on Park Lane It is a pleasure to introduce to the management rights industry the new managers at PARK LANE in Main Beach on the Gold Coast.

Phil Trimble of MR Sales with Belinda & Tom Bialowas

Belinda & Tom Bialowas are no strangers to the Main Beach area. Throughout their career they have acquired a vast number of skills. Tom has owned and operated a business in Main Beach for over 11 years and brings with him a vast array of business management and accounting skills. Belinda with customer service, management and training skills is no stranger to hard work.

iconic buildings on the Gold Coast – PARK LANE. “We are seeking a new professional opportunity and are eager to put our acquired knowledge towards the growth and development of PARK LANE”. From the time contracts were signed through to the recent settlement nothing was a problem for both the vendor, Kelli & Mark and Belinda & Tom.

This is a new venture for both Belinda & Tom who are looking forward to stamping their mark on one of the most

From all the crew at MR Sales we would like to wish both Belinda and Tom all the best for the future.

PROPERTY

ResortNews | January 2021

NEW YEAR NEW OPPORTUNITIES

ID 8797 ENTRY LEVEL MR - CAIRNS

ID 9000 OFF THE PLAN – BRISBANE NORTH

• Permanent management rights • Consistent performer • 8 units in the letting pool

• Permanent management rights • Just 30 minutes from Brisbane • Construction over 4 stages

• Great scope to improve • 3 bed residence with balcony • Minutes from shopping & Airport

• 72 townhouses • Good location, close to schools • 4 bed, 2 bath manager’s residence

NET PROFIT: $60,000

ASKING PRICE: $579,000

ASKING PRICE:

$975,900

LISTING BROKER:

Antonio Curulli – 0488 030 853

LISTING BROKER:

Gerard Dixon – 0433 617 515

ID 8951 POPULAR PERMANENT – MAIN BEACH

ID 8981 SOUTHERN GOLD COAST PERMANENT

• Permanent management rights • 27 apartments, 9 in the letting pool • Long standing manager’s retiring

• Townhouse complex, great location • Close to major shopping & beach • 42 townhouses in the letting pool

• Easy to maintain complex • Excellent facilities • 2 bed, 2 bath manager’s residence

• Full 25 year agreements • Strong rental area • 3 bed, 2 bath manager’s residence

NET PROFIT: $65,200

ASKING PRICE: $755,000

NET PROFIT: $254,000

ASKING PRICE: $1,997,000

LISTING BROKER:

Phil Trimble – 0418 478 966

EXCLUSIVE BROKER:

Warren Oliver – 0416 216 625

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

www.mrsales.com.au

EX AG CLU EN SIV CY E

MANAGEMENT RIGHTS RESORTS

LABRADOR TERRIFIC RETURN ON INVESTMENT!

SURFERS PARADISE BEACHSIDE BLISS IN SURFERS

■ Awesome Gold Coast Management Rights. Real estate only $380,000 ■ Over 50% of income derived from salary of over $124,000 ■ Situated in the heart of Labrador and so popular with tenants. ■ A fantastic location, so close to absolutely everything!

■ Primarily Residential tower. Handful of permanent & holiday lets ■ $100,000 Body Corporate Remuneration is a strong base income ■ Superb ocean, river, city views, two luxury apartments per floor ■ Three bedroom apartment, private garden, abundant family space

NETT $236,000 PRICE $1,605,000

NETT $145,000 PRICE $1,230,000

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

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

MCDOWALL SIMPLE, SECURE - QUALITY LOCATION

COOMBABAH MOTIVATED SELLER

■ Attractive complex in sought after Brisbane northside location ■ Popular with tenants, close to shopping and schools ■ 3 bed Manager’s home. Indoor/outdoor living and extra parking ■ Simple operation, ideal for part time or semi-retired manager

■ A very good Body Corporate salary of approx $58,000 ■ 3 bed, 2 ½ bath townhouse. Renovated kitchen and flooring ■ Easily run by one person. Business multiplier of 4.1 ■ Quiet & tidy complex close to Harbor Town & Helensvale station

NETT $63,000 PRICE $625,000

NETT $87,000 PRICE $759,000

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

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

propertybridge.com.au | 1800 888 518

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.

SOUTH BRISBANE

GREAT VALUE AND HUGE UPSIDE POTENTIAL

WEST END

• Prime location, walk to South Bank Parkland & CBD, close to all the necessary amenities, Permanent & short term mix letting pool. • Just topped up in July 2020, 24 years left on agreements • Large 2 beds, 2 baths, 2 carparks manager residence • Brisbane State High catchment, but no requirement on residing onsite

• • • • •

NETT: $295,386 (Pre-Covid19)

NETT: $128,656

TOTAL: $1,700,000

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

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

FULL VALUATION DONE!

Boutique building in Central West End, close to everything Great remuneration $85K with CPI adjustment annually Verification and valuation were done, safe deal Low caretaker work, easy for one person Large manager residence, no office hours

TOTAL: $1,290,000 (At Valuation)

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

ASCOT

• • • • •

TIME TO RETIRE - OWNER SAYS SELL!

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

NETT: $110,845

TOTAL: $950,000

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

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

www.nextrealty.com.au

PO Box 288, Cleveland, QLD 4163

The Breakers, Surfers Paradise

Twenty Years & still going strong

By David Carroll, Industry Reporter

Surfers Paradise is one of the country’s most recognised destinations, famous for its golden beach and iconic highrise skyline. A tourist hot spot since the 1920s, Surfers Paradise is considered by many to be the jewel in the crown of the Gold Coast’s $6 billion tourism economy. It was however not the preferred destination for Lyn Stephens who, with husband Michael, has for the past 20 years

ResortNews | January 2021

In their two decades in the industry, Lyn and Michael have observed many changes, none bigger than the arrival of online booking platforms. managed The Breakers absolute beachfront apartments which are perfectly positioned right on the sand at the southern boundary of … you guessed it … Surfers Paradise. Having observed friends’ forays into resort management, the former Sydneysiders were eager to relocate to the Gold

Coast and secure a building but Lyn was adamant she did not want to live amid the ‘glitz and glamour’ of Surfers Paradise. “I had always said ‘I do not want to live in Surfers Paradise’. If the address is Surfers Paradise, forget it,” she said. “But the agent took us around in his car and of course I had no

PROFILES

idea where I was because we went to one building, another building, another building … This was the last one he took us to before he took us to the airport and I didn’t even know that it was Surfers Paradise. “I just got out of the car, walked in and said ‘I like this’. And that was it, done and dusted.”

some lovely apartments.” Lyn and Michael, who will celebrate their 40th wedding anniversary next year, share the duties associated with being on-site managers, Lyn overseeing administration while Michael focuses on public relations and marketing. They are however advocates of the old adage ‘work smarter, not harder’, believing that approach is the secret to their longevity in the industry. “I love working, love being busy, but we’ve got a lot of our work that we don’t have to physically do and I think that’s what has allowed us to stay on for so long and enjoy it,” Lyn said.

Two decades later they are still on site at The Breakers and more than happy with the decision. “I love where we are,” Lyn said. “I just didn’t like the idea of Surfers Paradise itself. It was too busy, but we’re right on the fringe of Surfers Paradise and Broadbeach. We’re far enough away but close enough that you can walk to everything.”

Breakers comprises a 12-storey main building, bookable to 10 floors, and five absolute beachfront cabanas which are truly unique in the area. Built in 1975, the complex is in impeccable condition, something Lyn attributes to the efforts of their staff and contractors, and the owners also play a key role in the presentation.

“We do pride ourselves on the state of the property,” Lyn said. “We get a lot of comments about the lawn, how beautiful it is, and how clean the place is.

“A lot of other managers, particularly back in the day, used to do everything. They’re up at sparrow’s doing all the morning work, come into the office, work in the office and then they’ve got to field a call at 7 o’clock at night because the kettle doesn’t work.

“And the owners have been pretty proactive in renovating and keeping up to speed. Ninety per cent have renovated now that are in the holiday pool which is really, really good so we’ve got

“If you want to flog yourself, just work for two or three years, fine, do that because it puts more money in your pocket. But to me, it reduces the amount of time that you’re going to enjoy

1 0 % d i s cou nt fo r R es or t News read ers w h en b o oked d irec t

We are proud to be legal advisors to Lyn & Mick who are great managers and a credit to the Management Rights Industry 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

Ph : ( 07) 5538 5311 6 0 O ld Bu r le i g h R oad, S u r fer s Par ad i s e Q l d 4217 i n fo@ t heb reak er s. com . au

www.thebreakers.com.au 44

PROFILES

ResortNews | January 2021

the place.” In their two decades in the industry, Lyn and Michael have observed many changes, none bigger than the arrival of online booking platforms.

just the stressed inventory. “It is still is that way today but now it’s starting to turn around with buildings saying we want people to book direct.”

“Probably the biggest change is the way bookings come in,” Lyn said.

But despite the changes and the commitment required, Lyn and Michael remain passionate advocates for the industry.

“The online platform is huge now. I remember when wotif started. Back then it was all last-minute availability. Then other sites came in and it was a job in itself just to keep your online availability up to date. And then everyone was selling all their inventory on the online platforms, it wasn’t

ResortNews | January 2021

“It’s great,” Lyn said. “It has evolved so much since we first came in but I still think it’s a great mum-and-dad business to be in because you buy yourself a job, you buy yourself a home. How much better can you do? I love it.”

PROFILES

The Oasis Apartments and Treetop Houses, Byron Bay

First-time managers enchant Byron guests By David Carroll, Industry Reporter

than 18 months ago, said the complex offers the best of both worlds – a quiet escape just a short walk away from the heart of Byron Bay.

With 2.24 million visitors ﬂocking to Byron Bay each year, it is no longer the quiet coastal village of years gone by.

“It really is unique,” he said. “Where we are situated is more out of the way, close to the beach and surrounded by nature rather than the craziness that everyone talks about in town.

The dramatic influx of visitors has created its share of issues yet the town continues to enchant with its spectacular beaches, world-class shopping and dining experiences and unique community spirit. And for those looking to escape the crowded streets, there are pockets of paradise to be found. The Oasis Apartments and Treetop Houses, spread across six acres of tropical gardens and bordered by the Arakwal National Park and just a short stroll from the magnificent Tallow Beach, is one of Byron Bay’s treasures. The Oasis offers guests the choice of two or threebedroom luxury apartments or one of the unique multi level treetop houses which

“Our accommodation offers guests a truly peaceful and tranquil escape from the hustle of everyday life.”

sauna, games room, barbeque areas and tennis court.

The Oasis marks Gerard and Karen’s first foray into property management. The pair enjoyed successful careers in management and leadership roles in the healthcare sector in Australia and overseas but had been looking for a new opportunity where they could utilise their skills and experiences.

Gerard Gallagher, who with wife Karen O’Reilly took on the property management rights at the Oasis little more

“We had studied the management rights industry and felt it was an exciting industry to enter,” Gerard said.

Managers Gerard Gallagher and Karen O’Reilly

have been architecturally designed to make the most of the natural setting. The complex comes complete with resort-style facilities including heated pool, gym,

PROFILES

ResortNews | January 2021

The couple was working in Qatar and had returned to Brisbane for a holiday when they first saw the Oasis. “It was purely by chance that we discovered the Oasis,” Gerard said.

ResortNews | January 2021

“It was advertised on one of the management rights websites and we decided to pop down. We instantly fell in love with the complex and location.” The couple have taken to the new challenge with

gusto, moving immediately to revitalise the Oasis with a list of improvements already completed or scheduled. Works include renovating the games room and gym, revitalising the gardens and upgrading the internet infrastructure. They

PROFILES

are also constructing a new spa and deck area. The owners have also played their part, with some taking the opportunity presented by the coronavirus pandemic to undertake major renovations on their properties.

“We have been incredibly lucky in the support provided to us by the committee, owners and residents since arriving,” Gerard said. “They have supported the various projects that we initiated.” While the skills learnt in their previous careers, including project management and stakeholder engagement, continue to serve them well, Gerard admitted the transition had not been without its challenges.

“Our initial challenge was to learn and settle into our new roles as business owners,” he said. “Coming to grips with running a small business is a different experience to the corporate life we were used to. (But) Karen and I are motivated by the opportunities that change can present. “We are always on the lookout to see how we can improve the experience, enjoyment and satisfaction for our guests

Resort Brokers ask is Hemsworth to blame for Byron Bay accommodation businesses being in such high demand?

ResortBrokers’ Todd Warner says demand for accommodation properties on the NSW north coast, and Byron Bay in particular, is at unprecedented levels as the region revels in its newfound status as a playground for the rich and famous. “This is an exciting time in the Byron Shire region. Enquiries are at a record high, the median house price has rocketed, valuations are up and businesses are selling at asking price over short time frames,” Mr Warner said.

It’s a region that boasts a clique of Hollywood A-listers in residence, and it’s no wonder the former sleepy-surfer enclave of Byron Bay has emerged as Australia’s hotspot for tourism accommodation investors.

“I have had six businesses sold, settled or under contract in the last 18 months. Putting it simply, the market is absolutely smoking,” he said. Actor Chris Hemsworth perhaps began the “Hollywood-isation” of Byron Bay in 2014 when he bought his sprawling complex for $7 million and built a mega mansion to live in with his wife, Spanish actress Elsa Pataky,

and their three children. The pandemic-induced lockdowns and restrictions, in Australia and overseas, accelerated the transformation, and now Hemsworth has been joined by the likes of Zac Efron who is leasing a beachfront Wategos pad, along with Mark Wahlberg, Natalie Portman, Matt Damon, Melissa McCarthy and brother Liam Hemsworth and his new girlfriend, model Gabriella Brooks.

PROFILES

“The weather is fantastic, and we’re very hidden away,” Hemsworth told The Australian Financial Review. “I always knew I loved it here, of course, but this year has really solidified that for me.” With its evolution as a “safe haven” and A-list reputation, home values are also surging and was confirmed by a recordbreaking $22 million purchase of a Wategos Beach house by Rip Curl co-founder Brian Singer. It not only set a record for Byron Bay, but a residential house record for the NSW North Coast. All this attention has led to locals referring to Byron Bay as “Bondi Bay” as a joke and now demand for accommodation assets is reaching new highs. “The interest is huge right now and the opportunities are plentiful for savvy investors keen to ride the Byron wave of growth,” Mr Warner said.

ResortNews | January 2021

and residents, plus looking at ways to enhance our investor financial returns.” The couple said they are relishing the change and are excited about the next stage of their journey, despite being kept very busy. “We bring in contract personnel to do the cleaning and help with some of the caretaking duties but otherwise we are the

receptionist, IT support, head cleaner, handyman, marketing person, tour operator and pool cleaner,” Gerard said. “(But) we are still very enthusiastic about the work we do and the people we meet. We often joke about the not missing the peak-hour traffic most mornings as we walk across the driveway from our home to our office.”

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