Resort News, March 2021

Registered by Australia Post Print Post No. 100023799

Issue 295 | March 2021 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Profiles Beachside Resort Buddina Mercantile Dalgety Place management rights • hotels • motels • resorts • holiday parks • time share • hosted We specialise in furniture for hotels, motels, serviced apartments, resorts and refurbishments.

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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

REGISTER ONLINE TODAY! www.accomproperties.com.au

The legal stuff...

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Inside our March issue FRONT DESK Editors Note: March flies by as we celebrate women in MR ...............05

INDUSTRY News In Brief .............................................................................. 06 Special Report: Women in MR are simply smashing it ...............................08 Person of Interest: Marisa Millane – The woman’s Woman In Management ......................................................... 10 ARAMA Report ........................................................................... 12 State Report ................................................................................ 14

08

SCA Report .................................................................................. 15 BCCM Report .............................................................................. 16

MANAGEMENT Legal Ease..................................................................................... 18

By All Accounts .......................................................................... 19 New real estate requirements will elevate standards ......................................................................20 Motel Market ...............................................................................22 Thinking MR.................................................................................23 Good Governance .....................................................................24 Intonet ...........................................................................................26 Building Relationships ............................................................ 27

10

PMS Software .............................................................................28

TOURISM Tourism Report ...........................................................................30

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

Mandy Clarke editor@accomnews.com.au

STAFF WRITERS

Rosie Clarke Grantlee Kieza

DESIGN & PRODUCTION

Richard McGill

ADVERTISING SUBSCRIPTIONS

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

CONTRIBUTORS

The Last Resort ..........................................................................33

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

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

New Manager Profile ...............................................................40 AccomProperties Sales Report ...........................................40

KEY

Mercantile Dalgety Place: Kindness and community in glorious Teneriffe.............43

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!

33

PROPERTY

Alex Cook, Amy McKee, Andrew Morgan, Arvo Elias, Col Myers, Hayley Yager, James Nickless, Kelley Rigby, Lel Parnis, Lynda Kypriadakis, Michelle Scott, Mike Phipps, Mike Phipps, Tony Rossiter and Trevor Rawnsley.

Commercially funded supplier profile or supplier case study

04

Tourism International ..............................................................32

Resort News Agent Profile .................................................... 41

PROFILE

Beachside Resort Buddina: Journey “written in the stars”................................................46

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

43 ResortNews | March 2021

EDITOR'S NOTE

March flies by as we celebrate women in MR This special issue celebrates International Women’s Day and I am excited to focus attention on some incredible women in our industry.

This month, I was stumped by a question: “Why is there a day to celebrate women? Has feminism has gone too far?”

My usual response may have gone something like: “Well, the day is a wonderful opportunity to spread awareness about women’s rights and gender equality. We should relish any chance we get to celebrate all the women who paved the way for us.”

Instead, I said: “Why the bloody hell not? All of us women deserve at least one day of celebration and gratitude!”

Let us celebrate women.

Let us sing their praises and acknowledge their accomplishments. International Women’s Day serves as a reminder about just how far women have come and I find that most people agree!

ResortNews | March 2021

inviting nominations for top industry performers to enter its industry awards.

The ARAMA 2021 Top Awards is proudly sponsored by our AccomProperties Sales and Rentals.

Mandy Clarke, Editor editor@accomnews.com.au My special report gave me the chance to gather and share the diverse range of women’s experiences across the industry. I asked who inspired them and was inspired myself by some of their stories.

Our Person of Interest this issue shares the resilient story of Marisa Millane, who manages to balance an arduous work ethic with a full-time job as a single mum and still take the time to prioritise self-care. On top of everything else, Marisa dedicates her working life to empowering other women.

Don’t miss this piece!

In other news, ARAMA is

Speaking of which, me and Mr AccomProperties himself, attended ARAMA’s latest Brisbane event representing Resort News and our property portal, AccomProperties and had an absolute ball – we hope to meet you at the next event! Congratulations to ARAMA for putting on a great evening, it was a rare chance for us to get out from behind our computers and meet some lovely faces. We plan to attend more events up and down the coast, so do not be a stranger, come and say hello!

Check out this month’s supplement, Tips for Buying Management Rights in a COVID-Era: The insert is jam packed with important advice from some big industry names and even bigger brains.

At the helm of AccomProperties, Patrick has been busier than ever. In this buoyant sales market, many managers

FRONT DESK

have been upgrading their listings to sales and rental.

The portal continues to grow, and we continue to get many thank yous for the personal customer service we provide.

A common piece of feedback we receive is that what our industry competitors lack in customer service, we offer in abundance. We take pride in getting to know you all by name.

As for me, this month I struggled a lot… to meet my editorial deadlines, to run a business, to parent our four adult children, to manage a very naughty beagle, and to stop drinking my (extra-large) 6pm G&T. However, in true form, I did manage to miss a much-needed hair appointment, my eyebrows continue to need a wax, and I forgot to exercise… again!

Writing the profiles for Resort News always manages to cheer me up though! And this month I bring you two absolute crackers. Let me know what you think once you’ve read them.

Enough chatter, get on with it and enjoy…

Cheers, Mandy

05

NEWS IN BRIEF

EXCLUSIVE:

Airbnb women rake in millions since COVID, “not fair” says Accom rep

By Grantlee Kieza, Industry Reporter

Lynette Jackson, who hosts an Airbnb at Highland Park on the Gold Coast, told news.com.au her property was still busy even at the height of the pandemic.

Aussie women have earned more than $25 million on Airbnb since March last year while traditional accom providers struggle to recoup losses, according to new earnings report.

Australian women are bringing in millions via Airbnb accommodation, sparking a new call for the Federal Government to crack down on “Australia’s black economy” by creating “a level playing field” in the industry.

Accommodation Association CEO Dean Long has called on the government to implement the ATO’s data-matching program this year, rather than from July 1, 2022 as planned.

He said there was an “urgent need to support transparency and equalisation” and Airbnb should face the same reporting obligations as traditional accommodation businesses.

Australian women are leading the way as female Airbnb hosts, with a new survey revealing that from 13 regions across Queensland, NSW, Western Australia, and Victoria, they have earned more than $25 million since March last year.

The news flies in the face of traditional accommodation providers, which have been staggering under the burden of the Coronavirus pandemic.

Mr Long said that “fundamentally Airbnb have don’t have to pay many of the outgoings traditional accommodation providers face”.

“Many Airbnb providers are not getting taxed at the right amount either,” he said. There is an urgent need for on-going application of the ATO data-matching program because traditional businesses have existing reporting obligations and Airbnb providers do not.

06

Her Airbnb, which she has run for the last five and a half years, currently has bookings all the way through to July.

The Airbnb survey found almost 65 percent of hosts in Australia were women, with the Gold Coast’s rate of female hosts standing at 67 percent.

Australian women are leading the way as female Airbnb hosts, with a new survey revealing that from 13 regions “The Treasury’s Black Economy Taskforce Final Report in 2019 recommended the data matching program to start from July 1, 2022 but we are calling on the Federal Government as part of our pre-budget submission to bring that forward to this year.

“It’s not fair that in an industry that has been devastated by COVID, traditional businesses are still paying their fair share of tax while all those that are participating in an unregulated accommodation sector such as Airbnb aren’t.

“Our cost base is significantly higher than Airbnb because we are a regulated industry and therefore, we have to charge higher amounts to cover our costs of operating then those other operators on an unregulated platform who are not paying their fair share of tax. Are they making sure they have adequate insurances, are they complying with fire and

safety laws? They are certainly not having to pay commercial rates.” Mr Long said all those factors acted as disincentives for business owners to invest in the accommodation industry and that many of the people operating on the Airbnb platform were receiving an “enormous head start” over traditional accommodation providers working in a regulated industry.

“On the back of COVID, governments need to create a level playing field,” Mr Long said.

We are not asking for anything more; just a level playing field so that everyone that operates and provides accommodation is paying their fair share of tax.

The Airbnb survey revealed four Australian cities cracked the global list of top 10 cities by representation of female hosts and that the Gold Coast was tied for second place in the worldwide ranking.

INDUSTRY

Queensland’s Sunshine Coast had the highest earnings for female hosts of more than $3.3 million, closely followed by Byron Bay. The Airbnb survey showed female Airbnb hosts have collectively earned since March 2020: •

Sunshine Coast, QLD – more than $3,364,000

•

Byron Bay, NSW – more than $3,143,000

•

Jervis Bay, NSW – more than $2,452,000

•

Sydney, NSW – more than $2,320,000

•

Great Ocean Road, VIC – more than $2,361,000

•

NSW Mid North Coast – more than $2,152,000

•

NSW Central Coast – more than $1,952,000

•

Mornington Peninsula, VIC – more than $1,790,000

•

Gold Coast/Tweed, QLD – more than $1,765,000

•

Brighton, VIC – more than $1,402,000

•

Perth, WA – more than $886,000

•

Melbourne, VIC – more than $775,000

•

Brisbane, QLD – more than $877,000

NB – these earnings exclude billings generated by Australia’s male Airbnb hosts.

ResortNews | March 2021

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SPECIAL REPORT

Women in MR are simply smashing it

By Mandy Clarke, Editor

International Women’s Day, March 8, celebrates the social, economic, cultural, and political achievements of women.

To mark the occasion, Resort News spoke to some of our industryleading women about management rights.

According to research COVIDrelated job losses hit women harder. And, as the biannual report from The Australian Mutual Provident Society (AMP) said: “Women continue to be more impacted.” Approximately one-in-five female employees reported severe or moderate levels of financial stress in 2020, almost double the figure recorded for male employees (11 percent). Younger women were particularly at risk, with 23 percent of those 18-to-34year-olds reporting severe or moderate levels of financial stress in 2020, almost three times

Kelley Rigby with son Ryder

the number of male employees [which sits at eight percent] in the equivalent age group.”

In the management rights industry specifically, the women I spoke to have shown incredible resilience, in many cases rebuilding, and even

starting businesses. Skilful entrepreneurs, many of them have young dependants, and are juggling multiple roles.

Right now, there are women in all aspects of tourism, hospitality and accommodation industries breaking global glass ceilings left right and centre! Some of the biggest international hotel brands now have women at the helm.

Sheila C. Johnson, founder and CEO of Salamander Hotels, oversees a portfolio of luxury boutique hotels and PGA Tour golf resorts in America. Among our Aussie trailblazers, general managers like Sarah Goldfinch from Crowne Plaza Adelaide

have shown up as bright lights in a difficult year. Sarah manages the 329-room upscale hotel inside Adelaide’s tallest building and says she began her lifelong hospitality career by helping her grandmother and mum in their café after school.

Just this week, TripAdvisor released some interesting insights showing how Australian women are raking in the cash as Airbnb hosts. A new survey reveals that from 13 regions across Queensland, NSW, Western Australia, and Victoria, women have earned more than $25 million since March last year. Industry qualms with the sharing economy aside, it is a

Phenomenal strength that reflects a powerhouse mentality

Sylvia Johnston from Hirum Software

08

INDUSTRY

ResortNews | March 2021

excited to hear murmurings that a podcast could be happening in the not-so-distant future…

phenomenal figure that reflects a powerhouse mentality.

At home, in management rights, we live and work in a sector historically valued as a ‘mum and dad’ venture, with mums tending to take on office duties while the dads maintain the building and grounds, and the whole family lives on site. However, in 2021, this trend seems to be shifting, with some of our single female managers are simply running the entire operation themselves, and ‘mums’ are taking on increasingly diverse roles in MR. Resort News spoke to one of our hard-working AccomProperties resident managers, Jean Sheather who manages Marion Hall in Surfers Paradise with her husband. Jean enjoys the more traditional management rights arrangement, and loves being able to meet lots of interesting people: “It is like a friendly community.” Her inspiration in life “has to be my mum,” she said. “I wish we could all be more like her, she never gossiped, and was very well respected in the community.”

Marisa Millane managed several resorts on her own before she began working at Freedom Internet. She told us that she is forever inspired by all women who refuse to give up no matter what life throws at them. She meets inspirational, incredible women in our industry every day, she told us, but many are far too humble to ever seek out the spotlight.

“I am inspired by the everyday woman who juggle many balls daily and continue to show up.”

Marisa sang the praises of Bobo Qi from Property Bridge, and Kelley Rigby, owner of industry business Letts Rebuild as she

Bobo Qi is one of Property Bridge’s most respected, high profile and high performing management rights and resort brokers. She began her career as an onsite manager in Brisbane in 2007, after a move from New Zealand.

Bobo is very proud that she is the first Asian woman board member of the Australian Resident Accommodation Manager’s Association (ARAMA).

She says she “loves” the industry and strives to build a cultural bridge in the industry where and when it is needed.

“I want the best for this industry,” she says, “I would love to see more integration of Chinese and Australian culture and more onsite managers doing the right thing.”

Bobo Qi from Property Bridge

Some of us women are simply running the entire operation ourselves

Bobo Qi also reveals one of the women who inspired her at the beginning of her industry journey was Hirum’s very own Sylvia Johnston: “At the first management rights event I attended, I met Sylvia Johnston. She probably does not even remember our conversation, but I was very impressed by her straightforward attitude, work ethic and drive.

“I was inspired by how Sylvia and her husband built their business, while raising a young family.”

told us about some of the galvanising stories she has heard during the monthly ‘Women in Management Rights’ Luncheons she runs and intends to expand this year. The luncheons are an

open invite for women in the sector to attend, network, share stories, and make some friends.

Marissa describes it as a platform to support all women in the industry, and Resort News was

For our resident manager Jean, “there was one young woman in this industry who stood out to me: Kelley Rigby from Letts Rebuild. I have never met anyone who is so helpful and inspiring!”

LOOKING FOR A MANAGEMENT RIGHTS? Over 300 Listings to choose from... From all the leading brokers The fastest growing accommodation listings website

visit accomproperties.com.au ResortNews | March 2021

INDUSTRY

09

PERSON OF INTEREST

Marisa Millane The woman’s Woman In Management

By Mandy Clarke, Editor

I enjoyed every chance to attend WIM luncheons, and was delighted to take over as event organiser in 2016.

Marisa Millane is genuine, friendly, and overwhelmingly supportive. She is also the brains and backbone of the ‘Women In Management’ (WIM) Luncheons movement, which she has been involved in since 2016.

“The luncheons are an informal and safe space for our industry’s women. They provide a chance for women to just be with other women. Last year, I took WIM to the next level, I am growing the platform and developing the website. Watch out as I have many more ideas to come…”

Marisa was born in Invercargill, New Zealand and moved to Auckland for school. In 2009, she moved to the Gold Coast with her husband and daughter, Mia. Her background was in recruitment and for a decade she managed DFP Recruitment, Gold Coast. The family lived in Markham Court, Broadbeach and while pregnant with her youngest daughter, Millie a surprising opportunity came her way.

For some women managers, WIM is their only regular social day out and a chance to make conversations and friends. For others, it is a good opportunity to make business connections and seek advice.

Marisa said: “At the core I aim for our WIM luncheons to be friendly and fun. Many women are silently running a business, alongside a busy home with children, we juggle many balls. Therefore, we need to support each other.

She explained: “I would often have a friendly chat with our onsite manager and one day she asked if I was interested in becoming the resort’s onsite manager. So, at the age of 33 with a newborn baby, I embraced the challenge with open arms.

“The woman who gave me this wonderful opportunity was Lynn Maillet, the owner of Markham Court. I am very grateful she took me under her wing and showed me all things management rights.

“I was very motivated and hired a nanny to take care of Millie in the unit while I absorbed myself in everything management rights in the manager’s office.

In just three months I became the resort manager.”

Soon after, Marisa accepted another fantastic offer, to manage side by side resorts The Penthouses & Paros On the Beach in Surfers Paradise, another opportunity where she thrived. However, due to a marriage breakup, she had to manage the business alone, as well as become a single

10

Marisa Millane

parent. He later passed away unexpectedly. It was hard for Melisa but like so many women who face adversity, she got on with it and chose to be grateful for what she had.

She said: “Every morning I wake up with gratitude, thankful for the sunshine and the daily sea views of the Gold Coast. I have a morning routine which keeps me sane - gym or beach walk. I choose to keep active, as it gives me more life. I thrive daily to put my best self forward and keep myself healthy and energised.”

She laughed: “Yes, endorphins are a real thing!”

In 2015, Marisa was offered a position with the team at Freedom Internet, again after a chance conversation with its business owners. Marisa’s firsthand knowledge of management rights became a superpower, meaning that for customers of Freedom Internet she “comes from a place of understanding”.

Marisa continued to look after resorts occasionally on weekends until 2019.

“Management rights can be a time consuming and lonely job, especially for women.

When I was an onsite manager,

INDUSTRY

“Now, our lunches are more mixed than ever, approximately 50 percent of attendees are onsite managers, and others come from the wider management rights industry, so it’s fantastic for networking. We have women from accountancy, law, strata, energy, carpet cleaning and pest control.

It’s wonderful to have all this talent together in one room.”

In typical Marisa style she added: “At the end of the day I just want every woman to frickin’ feel good about themselves, to give themself a pat on the back and leave the lunches feeling uplifted, empowered and fabulous!”

What about you, Marisa?

Glowing, she says: “I try to be a good example to my girls. I choose to have a wonderful and fulfilled life. And, I wake up every morning grateful for the people in my life, the opportunities and for the beautiful place I live.”

ResortNews | March 2021

ARAMA REPORT

Help us celebrate our industry stars After missing out on the opportunity to formally recognise the star performers in the management rights industry last year, the 2021 ARAMA TOP Awards event will mean even more to everyone as we set our sights on the future.

If one positive came out of 2020, it was highlighting the important role management rights operators play in community title schemes, with their skills and experience proving invaluable during truly extraordinary times.

Unlike other professions, resident managers were not able to totally remove themselves from their work or clients; and instead, their role was thrown into the spotlight.

...It is our responsibility to ensure we are inspiring the next wave of top talent...

ARAMA TOP Awards campaign in 2019, to recognise and celebrate the variety and calibre of people behind this thriving industry.

Trevor Rawnsley, CEO, ARAMA

As the main interface between guests, tenants, lot owners, and body corporate committees, they are the most effective person when managing the interests of a variety of stakeholders and it is their time to shine.

That is why we are delighted to build on the momentum generated at the inaugural

With more than 150 industry participants in attendance, the awards recognised people instrumental to the strength and success of the industry, which has been alive for 50 years.

This initiative is our chance to lift the profile of the industry by showcasing the best operators in the business and in-turn establishing and enhancing the professional standards and experiences that exist.

We are recognising the ‘mum and dad’ management teams who are so important to managing both short stay accommodation buildings and long stay residential buildings.

Like any business, running a management rights business can be an unpredictable and all-consuming journey, but it can also be one of the most rewarding things you will ever do.

A model most suited to

community title schemes (CTS), which currently accommodate 40 percent of Australians, it will be an exciting ride for our industry as this number grows to an estimated 65 percent by 2050.

As we look ahead to capitalise on these exciting opportunities, it is our responsibility to ensure we are inspiring the next wave of top talent to participate in the industry’s growth and success and ensuring we are promoting the development of appropriate skills and experience.

This will be a great outcome of our awards initiative and you can play your part by self-nominating or nominating a peer who you believe deserves to be recognised in the ARAMA TOP Awards.

This year, there will be five categories including Resident Managers of the Year (Short Stay, Long Stay and Mixed Accommodation), Sales Broker of the Year and Service Provider of the Year.

Entries close April 20, 2021 and all details can be found on our website.

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

For membership enquiries:

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

12

INDUSTRY

ResortNews | March 2021

Ta r g e t i n g

Outstanding Performers

NOMINATIONS ARE NOW OPEN!

Proudly sponsored by

For more information contact 1300 ARAMA Q (1300 27 26 27)

under a building management agreement?

Most building management (caretaking) agreements allow the owners corporation to terminate the agreement if: (a)

the manager is convicted of an indictable offence involving fraud and dishonesty; or

(b)

the manager is convicted of an offence involving an assault; or

(c)

(d)

the manager engages in misconduct, or is grossly negligent, in carrying out or failing to carry out the functions required under the contract; or the manager fails to carry out contractual duties, and persists in the failure for 14 days or more after the owners corporation, by written notice, requires the manager to carry out the duties; or

(e)

the manager carries on a business involving the supply of services to the owners corporation, or occupiers of lots, without holding a licence or other authority requirement by law; or

(f)

the manager transfers, or accepts the transfer or, an interest in the contract without the owners corporation’s approval.

The New South Wales Supreme Court has previously looked at these termination provisions after an owners corporation terminated a caretaking agreement pursuant to subclauses (c) and (d) above. The owners corporation did not rely on any instance of “gross negligence” but primarily relied on its contention that there was “misconduct” on the part of the manager which was caught by sub clause (c).

practitioner. In both these cases, the question of misconduct was judged according to whether the individual’s conduct failed, to a substantial degree, to measure up to the standard of professional conduct adopted or approved by practitioners of good repute and competency.

The judge stated that he could see no difficulty in applying such a standard to a property manager or a building manager.

Col Myers, Small Myers Hughes

“misconduct” pursuant to subclause (c) refers to conduct that is in some sense reprehensible or illegal, such as stealing.

It was pointed out on behalf of the owners corporation, however, that illegal conduct such as stealing is likely to fall within sub-clause (a), while another form of illegal conduct is covered by sub-clause (b).

The judge accepted that “misconduct” in sub-clause (c) must be given a wider meaning.

To this end, the judge looked at two cases dealing with misconduct: one by a solicitor and the other by a medical

Accordingly, the court decided that, in that case, it needed to ascertain if there was misconduct by the manager in carrying out, or failing to carry out, the functions required by the manager under the contract. The court said that the standard of behaviour on the part of a manager of good repute and competency in or about these particular functions will be shaped very likely by the nature of the functions.

The judge further said that the question whether “misconduct” occurred should be approached by reference not only to an isolated incidence or event but also to the general and continuing pattern or behaviour.

There were three separate issues where the manager engaged in misconduct

The judge had to determine the meaning of “misconduct” in this context. Counsel for the manager submitted that

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INDUSTRY

The court was satisfied that there were three separate issues where the manager engaged in misconduct of the kind contemplated by sub-clause (c): (a)

in refusing to deal with an outside letting agent who managed a number of rented units in the building; and

(b)

in refusing to act reasonably and constructively in the manner of conferral and communication with the body corporate’s appointee; and

(c)

in not carrying out its cleaning duties properly.

In each situation, it was determined that the manager failed, in relation to the functions required under the contract, to live up to the standards of professional conduct adopted or approved by property managers or building managers of good repute.

The judge concluded that and when the three matters are taken together, there is seen to be a pattern of failure to live up to those standards, with the result that, apart from the separate grant of termination under sub-clause (d) the body corporate was justified in relying on sub-clause (c) to terminate the contract.

This case serves as a reminder to building managers in both New South Wales and Queensland to ensure that they fully carry out their duties under their building management or caretaking agreement and to keep proper lines of communication open at all times with their owners corporation or its designated representative.

© Bill Oxford on Unsplash

STATE REPORT

What constitutes ‘misconduct’

Failure to do so can constitute “misconduct” under the agreement. Likewise, becoming unreasonably obstructive in allowing outside agents access to the complex (as distinct from the individual lot) can likewise constitute “misconduct”.

ResortNews | March 2021

As the end of the cyclone season nears, and in light of the recent release of the ACCC Report, it is timely for bodies corporate to be thinking about the way forward.

Storm and cyclone season often causes devastating damage to strata communities and many of the costs associated with the repairs could be reduced by taking a proactive stance.

The threat of damaging cyclones and storms is at its highest point in a decade in Queensland as La Nina threatens to produce not just a rainy, but potentially dangerous cyclone and storm year ahead.

Strata communities house at least 14 percent, or 715,000 people of Queensland’s total population living in accommodation including apartments, townhouses, retirement living complexes and resorts, with the number potentially as high as 1.2 million people. That is a lot of people affected by damage to strata titles!

Living in strata communities presents particular challenges to storms and cyclones as facilities and property management are shared responsibilities and come under the responsibility of the body corporate and government regulation and legislation.

If I was asked what a body corporate could control and try to deal with before the hassle ResortNews | March 2021

quantitative data on their scheme’s weather resilience.

SCA (Qld) has partnered with them for the duration of the program and your body corporate manager will be able to assist you in liaising with them.

James Nickless, President, SCA, Qld

of damage clean up, I would recommend a few things to people living in apartments, townhouses, holiday resorts, or retirement complexes.

These things aim to minimise risk and increase preparedness…

First, of course, contact your body corporate or strata manager who manages the property to see if there are any outstanding maintenance items, and what information and advice they have in regard to being storm ready in your particular region. You will find that there are a few known issues that may cause problems if a storm hits. Your manager may also have access to specialists who, upon inspection, are able to make recommendations about how to be better prepared.

In North Queensland, the James Cook University Cyclone Testing Station currently provides the North Queensland Strata Title Inspection Program, which offers to give bodies corporate

A way to prepare is to also understand evacuation procedures, marshalling points and know what to do in case of power outage for your particular building. The body corporate or strata manager can help develop or update a procedure that can be sent to all residents as soon as required. This can incorporate general guides provided by the Queensland Government such as useful apps, contacts for emergency services and your local contacts.

The body corporate should also take note of objects on their property or near your property that might cause hazard in the case of a storm or cyclone such as overgrown trees or blocked storm drains and notify their local council if there may be an issue.

When you are already in the middle of an adverse weather event, try to secure any objects that are not part of the building structure, such as barbeques, bicycles, tables, chairs, and plants.

It is important to understand evacuation procedures, marshalling points and what to do in case of power outage for your particular building.

The body corporate or resident manager can help with this information, and there are

INDUSTRY

© mimadeo - stock.adobe.com

SCA REPORT

Cyclone and storm preparation general guides provided by the Queensland Government.

Body corporate managers are best placed to provide guidance on what a scheme might need to be better protected.

It is also worthwhile considering catastrophe insurance policies due to the frequency of events such as Cyclone Debbie in 2017, the Townsville floods in 2019, and the early 2020 bushfires that burned throughout Queensland.

From what we have seen, there is a very real chance that your standard insurance policy will not provide adequate cover for catastrophic events like the bushfires and cyclones.

Adequate insurance should protect policy holders against natural disasters, such as bushfires, earthquakes, floods, and cyclones. These lowprobability, high-cost events are sometimes excluded from standard insurance policies and, if included, only cover the damage for costs that are reasonable. In the event of a broader area that experiences the damage, prices go up and some strata communities may be out of pocket. Often, insurance valuations that should be done frequently for strata buildings are not up-to-date and, in the event of damage, insurance policies fall short of required cover.

I encourage apartment owners and bodies corporate to speak with a professional body corporate manager to get more detail on the insurance options available to their community.

15

BCCM REPORT

Standard module changes:

Committee meetings

In view of the committee’s fundamental role in a body corporate, the regulations governing committee decisionmaking and meetings are essential to the functioning of a body corporate.

The amendments in the new regulations that will replace the current Standard Module Regulations on March 1, 2021 clarify processes for committee decisions, while also giving owners more certainty about outcomes.

Owner motions for committee consideration, sections 58 and 222(2) SM Although owners submitting motions to their body corporate committee for consideration has always been common practice, there were no explicit rules governing this subject under the expiring regulations. The new regulations specify that an owner can submit a motion to the secretary personally, via post, facsimile, or electronic communication (for example, emailing the secretary).

One of the most vexing issues for owners can be an unresponsive committee. Residents regularly express frustration about their committee ‘stonewalling’

Michelle Scott Commissioner, Body Corporate & Community Management

them and delaying decisions.

There are two questions commonly posed to the Body Corporate and Community Management (BCCM) office by owners. First, is there a timeframe for the committee to respond to my request?

Second, what if my committee does not respond at all?

The new Standard Module Regulations address these concerns by providing a clear process for committee decisions on owner motions.

Going forward, committees must adhere to a “decision period”. Under this new period, committee decisions are required as soon as reasonably practicable within six weeks after the day the owner’s motion is submitted. Where the committee will need extra time after the initial six-week decision period, they must give a written explanation to the owner and nominate a reasonable

additional period of no more than six weeks, during which time they will make their decision.

Where the committee does not decide the motion within the decision period, or within twelve weeks if extra time is required, the owner’s motion is deemed declined. The inclusion of these timeframes means that owners will not be waiting indefinitely for a response from their committee (which may, in some cases, never be received). This new provision will also assist applicants fulfilling the self-resolution requirement for lodging a dispute application with the BCCM office.

Under the current arrangements, it can sometimes be difficult for applicants to prove their attempts at self-resolution with their committee, when they may be waiting indefinitely for the committee’s decision.

As well as accounting for difficulties experienced by owners, the new regulations consider matters through a committee lens. While some committees are admittedly unresponsive at times, some can also be challenged by owners who have excessive demands. As a safeguard against overloading committees, the new regulations do not require them to decide a motion if the owner has either submitted a motion about the same issue, or has submitted six or more motions, within the past twelve months. If the committee elects not to decide on a motion on one of these grounds, they must provide written notice of this to the owner. These changes endeavour to strike a reasonable balance between the interests of both owners and committees - weighing enhanced owner involvement and protection against the potential for an overburdened committee.

As an aside, it is worth noting that these changes about the “decision period” will not affect the timeframe the committee has to respond to a Form 1 submitted by an owner to the committee about a by-law breach. If an

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INDUSTRY

owner does not receive a response from the committee within fourteen days after submitting a Form 1, the owner can still choose to progress the issue to conciliation.

Finally, the new provisions about owner motions for committee consideration also highlight the committee’s limitations when deciding on these motions.

In part, the new provisions mirror the current regulations about ruling motions out of order at general meetings.

Specifically, the committee must not decide on a motion if it is about a “restricted issue”, or if it conflicts with the Act, regulations, by-laws, or a motion already voted on at the committee meeting. However, the new regulations also make it clear that a committee cannot decide on a motion if it is unlawful or unenforceable for another reason.

Electronic attendance, sections 61, 62 and 63 SM The new regulations allow for attending committee meetings by “electronic means” where there is committee authorisation to do so. Voting and non-voting committee members, owners or their representatives, or other persons invited to attend, may attend electronically.

Committee authorisation can extend to all meetings or specific meetings. Also, the committee can authorise use of a specific electronic means or any electronic means. Some examples have been provided in the regulations including email, teleconferencing and videoconferencing.

Having clear and flexible options for attendance proved to be important when there was uncertainty around gatherings and social distancing in the COVID-19 environment. Going forward, electronic attendance will support participation by owners, including those who may be interstate or overseas, ResortNews | March 2021

more generally. We are an increasingly busy society often juggling multiple commitments and the increased opportunity for owner involvement in committee meetings through electronic attendance promotes a more robust body corporate.

The current regulations about attendance at committee meetings by non-members only allow for attendance by an owner who submits the required written notice. Any other non-member wanting to attend needs to be invited by a majority of the committee. The new regulations extend the right of attendance at committee meetings to owner representatives as well, provided that the representative supplies specified information (along with the usual written notice) demonstrating their status as the owner’s representative.

Debtor members of the committee, sections 64 and 67 SM Our office has spoken to many owners who assume that owing a body corporate debt prevents a committee member from voting at or outside of a committee meeting. However, under the current regulations owing a body corporate debt does not affect a committee member’s ability to vote at the committee level, only their general meeting voting rights are displaced.

The new regulations deem a committee member who owes a body corporate debt, or who is nominated by an owner who owes a body corporate debt, as a “debtor member”. These members of the committee will be ineligible to vote at committee meetings or outside of a committee meeting. Also, debtor members will not be able to appoint another voting member as their proxy or exercise proxies for other voting members. This addition appears to bring the regulations into line with owner expectations on this issue and provides some symmetry between committee meeting and general meeting voting rights.

Even though a debtor member will not be able to cast a vote at a committee meeting, the regulations will not prevent ResortNews | March 2021

© Arlington Research on Unsplash

Attendance by owners and their representatives, section 63 SM

them from being included in the quorum count for the purpose of starting a committee meeting.

Voting outside a committee meeting, sections 68 & 69 SM The current regulations about voting outside committee meetings result in a considerable number of enquiries to our office. A key point of confusion is the requirement to give notice that a motion will be decided by vote outside of a committee meeting to owners at the same time as committee members.

Perhaps due to the inability of owners to vote in this process, many committees neglect the requirement to advise owners, and notice is given to owners as an afterthought, if at all.

The drafting of the new regulations highlights the need to also advise owners, by separating this requirement into a specific provision.

However, as is the case under the current regulations, there is no minimum amount of notice to be given, which leaves a certain amount of flexibility in the hands of the committee so as to preserve the responsive nature of a vote outside committee meeting process.

A further point of uncertainty under the expiring regulations about voting outside of committee meetings is the timeframe for voting. As it stands, committees can issue a notice that a motion is to be decided by a vote outside committee meeting, and then leave the matter suspended “in limbo” for an indefinite period. Committee members who unnecessarily

delay voting in these circumstances sometimes prove exasperating for their fellow committee members and owners alike. This is remedied in the new regulations by providing a clear timeframe for voting, committee members will be required to submit their vote within the “relevant period”, which is 21 days after notice is given that the motion will be put to a vote outside of committee meeting.

A motion put to a vote outside

a committee meeting will be deemed as declined if a decision is not reached within the “relevant period”. For further clarity, the new regulations also specify that a motion will be deemed as decided within the “relevant period” where either the majority of all members that are entitled to vote agree or do not agree, to the motion. If one-half indicate that they do not agree with the motion, there is a tied vote, and the motion is lost.

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17

LEGAL EASE

Want to sell but not decided on price?

The gardens are looking fabulous, and the pool is sparkling…

You have obtained a suite of new letting appointments since you purchased the business.

You have received a top-up and are getting along with the body corporate. You are thinking about selling and have decided on a sales agent and a multiplier you want to achieve. You have also been keeping an eye on the market and have decided on a price range for your lot.

You have decided that if the price is right then it is time to sell.

All your efforts are paying off when your hard-working agent finds a buyer who agrees to your business sale multiplier and price for your lot. Everything is awesome except that you do not have updated figures for the net operating profit and the buyer wants to sign a contract ASAP.

Amy McKee Partner, Mahoneys Gold Coast Office

confirm that the net operating profit for the business is the amount set out in the contract.

If the review confirms the net operating profit is the amount set out in the contract the parties move forward with any other conditions that may be included in the contract (such as legal due diligence and/or finance). If the net operating profit is less than the amount set out in the contract, more often than not, buyers and sellers will negotiate the price based on the multiplier that was determined and agreed at the outset.

So, what can you do if you have not determined the net operating profit for the business and have not decided on a sale price?

In general terms, the process was as follows…

The contract is subject to both the buyer and seller being satisfied with the amount determined as the net operating profit. If it is too high or low for any reason, either party may terminate the contract.

The buyer is required to engage an industry specialist accountant to determine the amount of the net operating profit of the business and provide a report. The buyer must provide the report to the seller.

If the seller or their accountant disputes the report for any reason then the seller can trigger

© phonlamaiphoto - stock.adobe.com

Traditionally, buyers and sellers enter a contract with an agreed sale price for the business, which is calculated by multiplying the seller’s net operating profit by a multiplier. The buyer then engages their accountant to

At Mahoneys, we have recently acted for a number of sellers who had buyers with agreed multipliers for the sale but no current net operating profit from which the price could be determined. In these situations, we assisted the sellers to change the timing of when the price was calculated. The buyer and sellers went to contract with an agreed multiplier and an agreed process to determine the amount of the net operating profit.

18

MANAGEMENT

discussions and negotiations between the buyer, seller, and their accountants. If the dispute is not resolved, then either party can terminate the contract.

If, following either the report being provided or the dispute being resolved, both parties are satisfied with the net operating profit; then this condition will be satisfied and the price for the business will be set as the agreed net operating profit multiplied by the agreed multiplier.

As can be seen, this approach is similar to the usual process but, instead of the buyer’s accountant verifying that the net operating profit for the business is the amount set out in the contract, the buyer’s accountant calculates the actual net operating profit for the business and both the buyer, and the seller, are given an opportunity to determine if they are satisfied to proceed based on that profit amount.

There is certainly not a onesize-fits-all approach, and, in the majority of cases, the more traditional method will be more suitable for buyers, financiers, and sellers alike. The above process carries risks for both buyers and sellers who need to engage accountants and lawyers before they know the sale price while giving the other party a right to terminate a contract if they are not satisfied with the price. However, this approach has proved successful for a number of Mahoneys clients in transactions where the sellers and the buyers were committed to a sale and purchase.

Amy McKee heads up Gold Coast office and specialises in property, management rights and motels with particular expertise in New South Wales and other Australian jurisdictions.

ResortNews | March 2021

The ATO is reportedly stepping up their data matching by collecting around 650 million data items annually from various entities, including banks, rental property managers, cryptocurrency exchanges, and sharing economy companies.

Remember, the ATO is watching!

What does this mean for individual taxpayers?

Hold off lodging returns until you are certain you have all information you are required to report.

The ATO will ‘auto-amend’ returns based on data matching information where you have missed interest/share or other income in your original submission. To avoid interest and penalties, and surprise tax bills, it is recommended you wait until at least mid-August before filing your tax returns.

Where you do end up with an ATO-initiated amended notice of assessment, it is important that you or your accountant review the documentation. While the ATO’s data matching systems have, no doubt, increased in sophistication: there is still room for error and the onus is on the taxpayer to refute mis-reported information.

Another area that the ATO is increasingly able to take advantage of is ease of access to data regarding private use of business assets, particularly motor vehicles. Where assets are registered with the department of transport in the name of your business entity, the ATO has access to this information.

Do you have a valid logbook substantiating business usage of the vehicle?

There may be Fringe Benefits Tax (FBT) liabilities, or at minimum substantiation requirements to document business versus private use of assets to ensure that you are compliant with the tax legislation.

ResortNews | March 2021

BY ALL ACCOUNTS

ATO data matching and getting online Lel Parnis Partner, Holmans Accounting

With the ‘instant asset write-off ’ threshold of $150k announced last year, many business owners replaced vehicles and assets in their business entities, enjoying the benefit of large tax deductions therefrom. Make sure that you are liaising with your accountant about any significant business purchases, including motor vehicles, so that you are clear about any ongoing tax considerations should there be any private use of those assets.

Remember, the ATO is watching!

The ATO is taking full advantage of the digital age about data matching, but also communication. You may have noticed inconsistencies with how you are receiving ATO communication (BAS/ ATO notices), and a significant reduction in the physical mail you get. There is a big push for all ATO communication with taxpayers to be sent via MyGov and online Business Portal profiles. This is for good reason: privacy. You are the only person who can access your online profiles, so you should set those up without delay if you have not done so already.

Not only to make sure that your private information is not misdirected in the post or via emails, but for your ease-ofaccess. How often do you find yourself needing access to the ATO ‘portal’ or ‘running balance’ reports for the bank? You must spend time ringing the ATO or your accountant and waiting for someone to provide you the information required. Once

you have your own ATO ‘portals’ (MyGov and Business Portal) set up, you have access to all of that information at your fingertips.

Increasing sophistication of data matching and the digital age means taxpayers cannot rely on shoeboxes of documents

to support lodgements. It is time to get online, keep your records in real time with online bookkeeping and recordkeeping solutions giving you confidence that any information required is available at the click of a button to support your ATO and bank submissions.

PROGRAMME

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SHEET METAL SOLICITORS VALUERS - REAL ESTATE

MANAGEMENT

Kamp Business Accountants RCB Accounting Capitol Body Corporate Administration PUMA2 Software RCA Business Brokers Resort Management Sales Tourism Brokers SheetMetal Improvement & Design Pevy Lawyers Simpson Quinn Lawyers Australian Valuers Pty Ltd

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

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

19

© iQoncept - stock.adobe.com

New real estate requirements will elevate standards

By Mandy Clarke, Editor

Did you know that on October 1, 2021 radical changes to licensing requirements for resident managers will come into force in Queensland?

Take note, because the training required to obtain a restricted lettings agent licence and a sales licence will significantly increase, and these changes will have ramifications for anyone who manages a property within the management rights industry.

Resort News investigates the new rules and how might the changes be mitigated...

What are the changes?

There will be changes to the number of training units you will have to complete, to the cost and to your time.

If you want to obtain the real estate salesperson license you will have to complete 12 updated units instead

20

of seven, and to obtain the residential letting agent licence you will need to complete 15 updated units instead of six.

limited real estate agent business letting, real estate agent, real estate salesperson and resident letting agent.

Why change?

The new training requirements will not impact people who hold current registrations and licences, and a transition period means OFT will continue to accept qualifications from the previous training package (the ‘CPP’ training package) until September 30, 2021.

The new training requirements for people wanting to enter Queensland’s real estate industry were approved by The Office of Fair Trading (OFT) following an independent review of the national property services training package.

The aim of the changes is to raise Queensland’s real estate training standards to match the scholastic level of other states.

How will this affect you?

According to OFT, anyone wanting to obtain a real estate licence from October 1, 2021 will be required to complete the new training units ahead of applying for the following registration and licence classes: auctioneer (property), chattel auctioneer, limited real estate agent - affordable housing,

However, from October 1, 2021, only the new training package will be accepted as the eligibility requirement for a licence or registration.

OFT consulted on the potential impact of the new training requirements with industry bodies and stakeholders including the Real Estate Institute of Queensland (REIQ), Australian Resident Accommodation Managers Association (ARAMA), and the Australian Livestock and Property Agents Association

MANAGEMENT

(ALPAA). Fair Trading executive director Brian Bauer emphasised how important the changes were and said they were made to ensure that qualifications for licence requirements meet the needs of industry and expectations of people using real estate services. Furthermore, the new training requirements also remove units of competency that are obsolete and duplicative.

Trevor Rawnsley, CEO of ARAMA, told us he endorsed the collaborative nature of the reforms in both Queensland and NSW (where changes are also afoot).

Talking about Queensland he said: “We were in consultation for about 18 months, and all agreed that the old licensing requirements did not adequately prepare licensees for a career in real estate. Through collaboration we came up with a set of training outcomes and subject matters that are more suited to a career in selling or renting real estate. In future, ResortNews | March 2021

real estate licensees will have higher educational standards that will match the standards already in place in other states.”

Trevor also advised that there will be more changes to come for the Queensland industry because discussion has also taken place to introduce compulsory “Continuing Professional Development” (CPD) for real estate license holders. Trevor suggested that by early 2022 annual training will also be necessary to retain your real estate licence.

He said: “Queensland is the only state to not have compulsory CPD therefore ARAMA supports the proposed changes to CPD because it will dramatically improve standards across the industry.”

Managers should not ignore these changes and Trevor warned: “If you are thinking about getting a real estate licence my advice to you is to do it now before the changes kick in. If you complete your training requirements before September 30 it will be easier and cheaper for you, but not necessarily better. “More importantly” he

changes are considered beneficial to the industry...

If you are a residential letting agent now is a jolly good time to upgrade to a full licence.

adds: “If you are a residential letting agent now is a jolly good time to upgrade to a full license.”

Resort News spoke to Dennis Mackenzie CEO of Property Training Australia, a registered training organisation (RTO) offering courses to meet the needs of the real estate industry in Queensland. From meetings with OFT and ARAMA there was recommendations presented on behalf of the strata accommodation industry. PTA strongly supports these changes to licensing requirements as it will encourage long-term employment and offer professionalism and qualifications to the

management rights and real estate industry.

He is prepared for these changes and his simple advice is: “It makes sense to complete or upgrade your licence as soon as you can, before September 30, 2021, ensure you lodge for your license application to allow for license processing time. PTA have been delivering professional training and advice to the real estate industry and committed to the management rights industry in Queensland for almost two decades.”

Queensland has approx.

14,647 licensed real estate agents and 19,659 registered salespersons. Overall, the

Brian Bauer said: “People using services provided by the real estate industry need to be confident their property and financial interests are protected by licensees operating with the right blend of integrity, expertise and professionalism.”

Antonia Mercorella, CEO of the REIQ said: “It’s pleasing to see the Office of Fair Trading’s new training requirements not only recognise the significance of the work undertaken by real estate professionals but also better reflect modern day real estate agency practice.

“The introduction of higher scholastic standards provide an enhanced understanding of consumer protections, improved professionalism and ultimately, a higher calibre of educated Queensland real estate professions.

“When you’re charged with selling or managing what’s likely to be our most important asset, people have an expectation for the credentials that qualify you to that role.”

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MANAGEMENT

21

MOTEL MARKET

Why do people keep coming back to motels?

Those who have been there before very often return after some time away.

There are many reasons for this, and the benefits that motel ownership offer are what keep people coming back to the industry. More than ever, current and former motel owners are active within the motel industry, searching for their next challenge, or to add to their portfolio. This is nothing new; however, different economic and worldwide events bring those who know the industry back for more.

Every business or industry has its pros and cons, so let us consider some of the benefits a motel can offer…

1. Lifestyle Working on your own terms and reporting to no one. The buck stops with the business owner, who makes the decision on what directions the business takes. Making the decisions on the operation of the business to determine its success. You are responsible for how well your business performs. Working in the air-conditioned office when needed and then outside in the sun as required. The mix of both makes for an interesting day as opposed to sitting in an office all day or working hard on the tools.

Flexibility is available if desired.

Some prefer to be able to get away, others chose not to.

2. Building customer relationships For those who enjoy their work and like to build customer relationships, motels can offer a lot of repeat clientele, if the guest is looked after. There can be a lot of satisfaction gained when a customer keeps coming back regularly because they are happy with the service being provided. It is confirmation of a job well done!

22

Every business or industry has its pros and cons, but motels are pretty special Andrew Morgan, Queensland Tourism and Hospitality Brokers

3. Return on investment The high return on investment available with a motel is there.

Factors such as location, economic strength of the region, standard of the property, strength of the business, profitability, clientele, etc., all play a part. The high return achievable allows for additional loan repayments to pay down debt and assists in the initial acquisition process with high loan serviceability favourable in the eyes of lending institutions.

4. Market activity There are always good buying opportunities available. Looking past the exterior façade and drilling down on business operation, as well as current and future opportunities are available to take the business forward, no business is ever operated at capacity. New owners always see things differently to the incumbent and make those moves to change or better the business.

5. Capital outlay Consider buying a four-bedroom, two-bathroom house for $800,000. Then consider buying a motel with 20 units, a residence, a Net Profit of $240,000 per annum and a large percentage of one’s living costs being tax deductible for $1.6 million. When compared to other property options, motels offer substantial value for money. On top of a high return on investment, they

also include a home/residence and the land generally sits on a prominent site with a large traffic volume past the front door. Any downside risk of the investment is generally low as it is underpinned by a strong land and building component.

Therefore, there is not a lot of ‘fresh air’ in the purchase price. It is predominantly tangible assets one is buying.

6. Financing Financial institutions are historically very comfortable lending for motel acquisitions as they are well regarded as solid and secure businesses. A low 35 percent deposit is required with the balance of the purchase price (excluding legal fees and stamp duty) able to be financed.

7. Taxation This is dependent on numerous factors such as how the ownership structure is setup. The tax benefits of living out of the business includes a large amount of the cost one incurs living in their stand-alone home such as insurance, electricity, food, beverages, phone/internet costs, rent/loan repayments, motor vehicle costs, property rates, etc.

8. Cashflow Upon commencing operating a motel there is a strong cashflow immediately, depending on the level of occupancy.

The business will achieve a solid level of cashflow the

MANAGEMENT

first day as many guests pay up front by credit card.

9. Stock on hand Motels carry very low amounts of stock. Those with restaurants will carry more, however the stock levels are generally no more than $10,000 to $15,000, depending on the size of the food and beverage operation.

10. Ready market When the time comes to sell, there is a competitive market eager to acquire good quality motel businesses and properties. The market may have its highs and lows but over the last 25 years, this has always been the case.

11. Under management Motels are comfortably managed by a couple or often one person, so if an owner/operator decides they would like to step back from the business short term, or more permanently, there are good managers available who can run a motel’s day-to-day operations.

12. Onsite residence This includes a home to live in onsite, allowing more family time while operating the business. Children can also get involved in different roles and start learning a wide range of skills around the business and property from a young age.

ResortNews | March 2021

Before I begin, a caveat...

If you recognise yourself somewhere in this article, please do not take offence. Any resemblance to real people or events is purely coincidental.

Also, guilty as charged, I have been known to pursue impulses and waste other people’s time. The managing director can confirm this pattern of behaviour, but we digress...

The plague seems to have triggered a lot of life assessment and reflection in the population.

My theory is that a combination of a once in a lifetime event (I pray that it’s once, that’s for sure) and people having time on their hands are the major causes.

We are seeing this national mindset manifest itself in an exodus from cities, crazy regional property prices and increased demand for discretionary and luxury goods and services.

Having looked into the abyss, I suspect a good many people are acting on what might once have been fairly vague longterm plans and daydreams.

Prominent among those plans and dreams, is a desire to escape the rat race and finally be the successful business owner you always wanted to be!

And what better business than something in accommodation and hospitality? This confluence of events gives rise to a variety of buyer profiles ranging from the delusional to the seriously heavy hitter, and everything in between. In an attempt to assist buyers in being self-aware, and not becoming that guy or gal, may I present our buyer profile and category summary:

The Friday night Chardi sipper Gets home from work, or more likely walks from home office to fridge, bored. Opens a nice bottle of chardonnay. Reflects on meaning of life. Asks partner for meaning, is told to stop whinging and do something about it. Googles businesses ResortNews | March 2021

Mike Phipps, Director, Mike Phipps Finance

in beautiful locations. Finds management rights or a quaint country motel. Sends agent enquiry. Sends finance broker enquiry at same time. Sales agent and broker respond over weekend. Chardi sipper has no recollection of making enquiry and is never heard of again. A shame, ‘cause they can be fun.

The dreamer Loves the idea of owning an accommodation business.

Does many business plans and even more spreadsheets. Talks to any industry professional who is prepared to chat for free. Constantly stalks online listings and even inspects a few. Combination of paralysis by analysis and lack of approval from husband/wife/life partner means they will never buy anything. Has no concept of the value of other people’s time.

Will move on to the investigation of boutique soy latte providers and craft beer brewers in due course.

Genuinely nice person, but…

The impulse buyer The dreamer is the total opposite. Falls in love with idea on limited research and makes multiple offers on a variety of businesses. Fails to think through process with inevitable train wreck resulting. Upsets many vendors and wonders why agents don not return calls.

May eventually buy something but it is going to be a wild ride.

Not to be confused with the sub-species, the decisive

action orientated buyer who is doing the deal and that is all there is to it! To be admired.

ledge in a blizzard in his budgie smugglers. Is carried to safety by industry professionals.

The selective hearing buyer

There are no thanks. But, over time, reflection on past events can result in a very loyal and valuable client.

A personal favourite. Has a long pre-qualification chat with us. Is told that based on info provided and available equity can go to $2.3 million. Is very excited. Fails to hear cautionary words relating to deals needing to be assessed for debt service capacity. Fails to hear finance broker say repeatedly, ‘each deal on its merits, $2.3 million is not carte blanche, let us do a detailed assessment when you find the right property’. Fails to read follow up email from finance broker summarising conversation.

Signs contract for $2.3 million inclusive of $2 million unit with four years to go on agreements.

Deal does not work. Finance broker’s fault! Buyer is sent hearing aid... does not get used.

The duck and weave buyer Typified by an inability to take responsibility for going cold on a deal. Can also be identified by a reluctance to take ownership in negotiations. In native habitat can be observed blaming banks/ lawyers/accountants when requesting negotiated terms.

Rarely leaves the nest to take ownership of decisions.

Basically, fearful of robust discussions but can respond well to constructive feedback.

The expert Never run a business but knows it all. No need for legal due diligence, did own conveying on last property purchase. No need for financial verification, does own tax. Picks everyone’s brain and then goes to local bank branch. Weeks, sometimes months later calls to advise deal has been a train wreck.

Asks industry professionals to drop everything and mount rescue mission. The ‘expert’ is subsequently found clinging to

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THINKING MR

Impulsive, wine loving dreamer? Who me?

The perfect buyer More common than many of the other species listed, thank goodness. Does enough research to understand the asset class.

Has pretty clear idea of what sort of business/location, etc., they want. Takes recommendation to use industry experts seriously and uses some of their time for free but gets the concept of billable hours. Understands that agents and finance brokers will help them for free and does not take advantage of the relationship. Is honest about financial position and gets prequalified for finance. Runs listings past finance broker to ensure they work. Invests time and money in courses and training.

Builds trusted advisor group and stays loyal.

In summary: Please take these observations in the tongue in cheek manner they are intended...

The fact is that there is a bit of all these buyer types in most people and that is ok. Industry professionals take enquiries seriously and try to treat everyone with dignity and respect.

I cannot stress enough that the finance pre-qualification process is no longer a cookie cutter approach. Every borrower and deal on its merits. If you are trying to get a handle on exactly what the banking industry wants on ever deal you will go certifiably insane.

This is particularly true of short stay accommodation assets such as motels and leisurebased management rights.

By all means, be a bit of all our buyer types but mostly, let us help you be the perfet buyer.

23

GOOD GOVERNANCE

Caretaker’s Guide to avoiding a remedial action notice Difficulties between the parties to caretaking agreements tend to arise for one reason, but persist for another…

How does a caretaking services provider find the time and resources to ensure the delivery of their duties is in accordance with the objective industry standard, while still making a profit?

© Adwo - stock.adobe.com

What can a caretaker do in circumstances where the committee holds the view that the caretaker is under-performing?

Prevention is always better than the cure!

Typically, difficulties arise in the following key areas: •

•

24

of the body corporate, instead of dealing with you like the professional services provider (contractor) that you are?

Vague schedules of duties within caretaking agreements, frequencies of duty, or scope of duty may not be clear or measurable. This this gives an opportunity for the committee to hold you to another standard.

•

Inferred duties versus specific duties within the caretaking agreement.

A specific duty (such as maintaining the gardens) may require a myriad of inferred duties to be discharged in order to prove compliance. These inferred duties may not be clearly understood by the parties to the agreement.

•

Misunderstanding between the parties about acceptable delivery standards, what is the objective measurable standard for cleaning, gardening, pool care, handyperson tasks, etc.

•

Outdated agreements. For example, perhaps legislation has changed over time and now imposes new or extra or intensified duties upon

Lynda Kypriadakis,

•

Diverse FMX

the caretaker under the agreement, which have to be done for compliance.

Are you clear on these extra duties? And are you being remunerated for delivering them?

•

•

Lack of skills. Perhaps the caretaker is new to caretaking and does not possess all the skills required to deliver the duties to the required standard. Caretaking is a people business, so interpersonal professional relationship building skills are important to have.

Is your committee mistaking you for an employee

•

Are you inadvertently using the wrong tools, plant, equipment and/or chemicals for the task and not getting the desired outcome as a result?

Cultural and language or communication challenges sometimes underwrite difficulties between parties.

Good, old-fashioned personality clashes sometimes underwrite difficulties between parties.

Any of these issues, alone or in combination, can give rise to difficulties between the caretaker and committee and may lead to a dissolution of the relationship, degradation of the condition of the common property, and issuance of a remedial action notice.

The easy solution Straight away, there is help for caretaking service providers that hold concerns that they are being targeted for some

MANAGEMENT

of the reasons above. Things like vague schedules, outdated agreements, lack of skills or inadequate delivery capability can be easily remedied with concerted action.

First, update the agreement.

Specialist body corporate lawyers are there to assist with reviewing agreements and ensuring they are current, and that you are fully capitalising on all your entitlements.

If your current Agreement pre-dates 2009, there will likely have been at least 10 significant changes to legislation and Australian Standards that impose extra duties and responsibilities on caretakers since then. These extra duties may now render your agreement schedules out-of-date, and perhaps your remuneration not quite what it should be. A quick call to your lawyer will help you to determine whether your current agreement is up-to-date and/or if there is an opportunity for you to update your agreement to your benefit.

Second, update the schedule of duties. Specialist consultants such as Barry Turner of BMCS ResortNews | March 2021

Next, get training and accreditation. Nowadays, there are readily available caretakingfocussed training programs delivered by the Australian Resident Accommodation Managers Association (ARAMA) and Australian Building Management Accreditation (ABMA). Courses produced

by ARAMA and the ABMA are specifically tailored to build capability in caretakers, so any individual aspiring to build skills and improve delivery to their client as an effective building manager can enrol in training programs all year round.

Look at the ABMA Building Management Code. Now in its sixth year of publication, is the all-inclusive guide to existing legislation and best practice standards for the maintenance and care of common property for the full life of the scheme.

Where the caretaking agreement is silent or ambiguous on delivery standards, the ABMA Building Management Code provides the objective, measurable standard. An objective standard is one that cannot be manipulated by either party to the agreement, so use the ABMA code as an argument stopper if the committee are holding you to an unreasonable or unjustifiable standard. ABMA Code subscribers can get free advice on duties standards.

Consider managing your relationship with the committee.

Industry consultants such as MLR Services (Mike O’Farrell) can go a long way to assisting you to rebuild trust and a positive working relationship with your committee if things have gotten off track. Do not feel you are alone when it comes to moving on beyond difficulty and disagreement, and do not be afraid to be the bigger person and take the first step toward reconciliation.

Mike can help you with this.

ResortNews | March 2021

© Boris Debusscher on Unspslash

are there to assist with reviewing agreements and ensuring a site-specific, fully detailed, and current schedule of duties is prepared. A quick call to Barry will help you to understand the benefits of reviewing your schedule of duties. You may be able to jointly appoint Barry with your committee and work together to agree to changes for the benefit of all lot owners.

First step toward success When difficulties arise out of differences in opinion about cleaning, gardening, handyperson works, etc. the first reference tool should be the ABMA Building Management Code. You need to get the facts on whether you are delivering your duties to the correct standard or not.

There is no point arguing with someone who is criticising you if you are not aware what the objective standards are, so get informed first. Remember, there is no smoke without fire, so you may find you have room for improvement once you get informed on the objective standards.

Getting clear on what the objective delivery standards are…

If you have studied the ABMA Building Management Code and you are still not sure that you are getting it right, consider engaging a performance auditor like Diverse FMX to audit your work. Even the Caretaker can commission an ‘audit’ of their performance to see how they are tracking. Performance audits double as site-specific training for caretakers, so getting a confidential audit done may be an investment in preventing a remedial action notice down the track.

knowledge about the building, more than anyone else. To test your regulatory compliance knowledge, try the ABMA online Self-Assessment Tool.

Where cultural differences appear to underlie difficulties, extreme sensitivity is encouraged. It has been observed that new Australians may not share the Aussie passion for fastidious gardens and landscaping, for example, so getting to know the objective standard for cleaning or gardening is an important step.

Finally, check your intention.

Why did you buy your management rights? Was it to provide a service and add value to the lot owners while helping optimise the return on everyone’s investment? Or was it for another reason?

Checklist for avoiding a Remedial Action Notice The most effective caretakers appear to share the following values and actions:

1.

Best-for-building focus and service-oriented approach to managing the client relationship.

2.

Full comprehension of the schedules within the Agreement (including inferred duties).

3.

Take steps to gain tertiary education and qualifications in building management.

4.

Resolution-oriented approach to emerging difficulties.

5.

A commitment to 100 percent compliance.

6.

Inclusivity and collaboration - keeping communication channels open.

7.

Reaching out for independent professional advice early and incorporating this advice strategically.

For further information on gaining assistance in avoiding a remedial action notice, contact Diverse FMX.

QLD - NSW - VIC - WA

Caretakers also need to know what legislative requirements affect their buildings so as to be trusted advisors to the body corporate. The caretaker should have the greatest depth of MANAGEMENT

25

© Kevin Ku on Unsplash

INTONET

Don’t let this happen to you!

My secret life as a Resort News columnist is usually made up of hours rummaging around the web to bring you sifted information, which hopefully will help you in your digital world.

the company can scoop up the recycling and make sure it actually gets recycled. The closed-loop recycling guarantee means that all the materials will be repurposed, and they will not end up in a landfill or the ocean.

This month, I present what was my article until drama found me. A drama that I will soon explain, and which nearly meant my editor would have had a blank page to print.

There are devices for measuring blood pressure, blood oxygen content, devices to ensure you do not leave the kids locked in a hot car and mountains of amazing electrical and electronic gadgets. Health and monitoring your wellness appear to be high on the list.

Even toilets were centre stage.

Importantly, it is a lesson you should all heed!

This month, Facebook and Google aside, was very mundane.

However, a major electronics exhibition took place virtually: the annual Las Vegas Consumer Electronics Show. I trawled through some of the reported new wonders to bring you a slightly different flavour.

As a warning: this is the M18+ section. I will quote directly from dezeen’s website whose lady author chose this as her lead topic. It is rather salacious but describes a whole new prize-winning range of bedroom toys that respond to programming from your smartphone, all coming to a store near your web browser!

Three models are described

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I hope this one comes to Australia!

Arvo Elias, Cybercons

– some you can even stream music to! One can only wonder and ponder what happens if one dials the wrong number?

But they did win an award!

Then there is a product that (according to the company) is the first closed-loop domestic recycling appliance. The machine has been public for just over a year, but it has been in development for more than 10. The idea is that you will feed it your recyclables, such as plastic, glass, and metal. It will steam clean them, remove labels to prevent contamination, intelligently sort the materials, and then quietly grind up the recycling material before depositing it in the internal storage bin. Once it fills up... three to eight times per year or so, you will get a push notification in its companion app to schedule a pickup so

The world’s largest toilet manufacturer brought a new lavatory concept to CES this year.

A wellness toilet designed to analyse what the user cares to deposit, to assess their health.

An accompanying app allows you to view the toilet’s assessments and offers information about how to improve your diet in the form of meal-planning suggestions. This toilet is expected on the market soon.

If you are in the market for a TV set be patient for a few more weeks. Samsung’s latest mini-LED system is about to hit the stores and the rave reviews laud it to be the greatest TV

MANAGEMENT

ever! Now there is something!

While I was browsing, I also noticed that some 300 million odd personal data files had appeared on the dark web. I did not expect this to be a single breach as the data base was too large, but it made me wonder how secure my email addresses were. Normally, I am advised via a subscription feed if anything in my backyard is amiss. No news for a while so I casually logged on just to reassure myself, only to find out that one of my personal accounts had been Pwned.

‘Have I Been Pwned’ allows you to search across multiple data sets for information on your mail addresses; something I have written about in the past.

Yes, you have guessed it! But why had I not received my notice? Long story short, a browser update had broken the feed link, hence the silence.

But my silence quickly ended.

My mobile number is only known to a few select people and it is set up to only answer those contacts in my address book that are given the privilege. However, this is where my story really starts.

The first warning was quite startling; my own number was calling my phone! No, that is not impossible as it even has ResortNews | March 2021

its own technical jargon, called ‘spoofing’. My assumption was confirmed not much later. Interstate numbers began calling me at various intervals with quite a few apparently originating from areas that certainly had never been in my address books of any flavour: postal, email, or phone.

So I did what you should also do if you have not been warned about this type of scam…

Let the call ring out and see if a message was left in my Telco’s message box. The idea behind this little ploy assumes that a genuine caller would leave a message.

But the game became trickier when the caller started to leave messages without speaking.

Annoying, as most message banks require the message playback to end before you can delete the message. This pattern continued until messages were actually left. They always consisted of my name being called, sometimes as if for help or a request that I return the call.

That stunt was not very clever at all. Why, or how, could the same small group of different voices manage to call me using dozens of different numbers. But it did force me to waste a lot of time clearing out my message bank: particularly so, since most were allowed to consume the full recording time allowed.

At call 274, I stopped counting and started to see what our anti-spam systems could do for me. The advice found all over the place is misleading. (Telstra may be an exception, which I have not tried.) Nobody is interested or willing to assist unless a crime has been committed.

Crime meaning identity or banking theft, etc. It appears that one has to suffer an actual loss before current schemes are prepared or allowed to assist!

So, days have been spent changing passwords on a myriad of accounts, including all the non-financial types because even the Puppy Shop has enough details on me to make it a threat if breached.

The final step? A new phone number sorts all the hassles created, particularly on transaction or financial sites.

Please visit the Pwned site and change your passwords using a decent password manager.

Many have the ‘crackable’ feature that lets you know how secure your choices of passcodes are. All of mine are set to require centuries to crack and consist of a mix of whatever keys are on my keyboard.

Please take heed!

© Alex Kotliarskyi on Unsplash

What was clever was that by using the information in the hack, they had also logged into my Google Drive account and set up their own locked directory and used that to disseminate what they now knew about

me to a string of their friends via Gmail. What they had forgotten though, was that the notifications they sent were automatically received by me.

This caused more headaches to recover and secure my Google cloud account. Fortunately, however, the critical data I had stored there was encrypted but it really was a close call.

ResortNews | March 2021

It takes a village to raise an industry In the months before Ryder, my son (or my menace as I like to call him) was born.

The phrase, ‘it takes a village to raise a family’ was conveyed to me on a daily basis. I would nod, politely smile but I did not really understand the significance behind its meaning.

Moving forward 15 months, I now find myself saying the exact same sentence to other expectant mothers, and it got me thinking…

This is also the perfect advice to give to expectant resident managers in our industry because, just like parenthood, management rights is not for the faint hearted!

Management rights is tough and can be particularly draining both mentally and emotionally, but we are all in it together.

Our community spirit is full of support, guidance, advice, and most of all peers that want to see you succeed. Keeping connected with the industry and the people in it, is crucial to running a successful management rights business… but why?

Let me share a scenario with you...

Mary and her husband Mark have just brought their first management rights. Before taking over, they were advised to complete the ARAMA MRITP training course, which they did.

They also attended several of the ARAMA educational evenings where they met and connected with industry specialist and veteran managers. Mary was also seen sipping on a few champagnes at the Ladies in Management Rights Luncheons!

It is fair to say that even before they began, they had made many good contacts and, I dare say, friends. In the first week of their new venture, they encountered a vast number of unexpected events: the events that no classroom can teach you. Mary consulted the stack of business cards she had collected and started to call her new friends for assistance.

Within the stack of cards, she found managers, lawyers, software companies, and consultants.

MANAGEMENT

Kelley Rigby, Managing Director, Letts Rebuild

You name it, she had it.

Thankfully, the curve balls that were thrown at them were averted with the help of a village. If Mary and Mark did not connect with the community in this industry, or had not taken the time to meet others, their first week would have almost broke them. Whether you are veterans or newbies in the industry, I believe it is vital to keep connected with your peers.

My mum always told me: “Everyone brings something to the table.”

I have learnt that not only is it valuable to get advice and ideas from others, but it is even more important to share and exchange war stories and realise we are not in it alone.

We are in it together. We are so fortunate to be provided with an abundance of different ways and events to stay connected.

So, here is my advice… Take your uniform off, put on a fancy frock, and go out to an industry event. (Disclaimer: You do not need to wear a fancy frock). This month’s article was inspired by International Women’s Day, so I feel there is no better way to conclude than by acknowledging and thanking the courageous, resilient, caring, and compassionate women of our industry.

The community we have formed is united, full of support, and encouragement towards each other and our goals. To say I am proud to be a part of our sisterhood is an understatement.

From me to you, thank you for always inspiring me to be the best I can be. – Happy International Women’s Day!

27

Four PMS priorities for modern property operators Your property management system (PMS) functions as the beating heart of your business.

Not only does it connect you to your guests, but it also works hard in the background to run your property more efficiently.

Yet, the full capabilities of a PMS are often overlooked by property operators, with many only utilising basic functions.

Your PMS is great for simplifying operations, automating dayto-day tasks, and collating guest bookings. But it can offer you much more, including the ability to nurture guest relationships, adapt to changes in booking patterns and integrate with relevant partners.

Make sure that you are harnessing the full potential of your PMS software by considering the following four points:

1. Optimise your tech stack to suit your strategy.

Elevate your PMS’s vast capabilities by integrating with partners who complement your business strategy.

Modern, success-focused PMS providers understand that each property’s business is unique, which is why they make it easy for you to build a tech

fostering return visits. This is no longer achievable with mass marketing and now requires a more personal and tailored approach. One of the easiest opportunities to gain valuable guest insights is through customer touches (such as free wifi), which collects and stores user data in the PMS. Hayley Yager, Marketing Designer, RMS Cloud

stack tailored to your needs.

Integrations enable you to dive deeper into other aspects of your business, such as revenue management, data intelligence, and customer interaction.

With these expert insights, you will be able to implement a data-driven pricing strategy, deliver an enhanced customer journey at key touchpoints, and gather extensive customer insights to help create tailored offerings. You will also have a competitive advantage over properties that are not equipped with these additional tools.

Your PMS should seamlessly connect to partners, either via an open API or within the PMS software itself, with browsable integrations that you can toggle to activate.

2. Utilise aggregated data from your PMS. Delivering an unmatched customer experience is key to

As well as your primary guests, there is a high chance of other people connecting to your wifi, such as partners of guests, onsite function attendees and restaurant diners. By tapping into this aggregated data, you can maximise your brand’s reach and better understand your guests and visitors. This also introduces revenue-boosting opportunities, such as encouraging guests to book directly, sending targeted emails with curated upsell options and increasing occupancy in shoulder seasons.

3. Deliver strong, guest-focused communications.

Effectively connecting with guests at key stages of their journey is crucial for driving an unrivalled experience. In today’s modern (and pandemicinfluenced) setting, contactless guest-facing tech is now considered an expectation.

Not only does it reduce physical interactions, but it also accelerates processes, such as checking in, making payments,

and adding extras to bookings.

A cloud-based PMS should seamlessly sync with these touch-free touchpoints, further closing the gap between physical processes and digitalisation.

A guest-facing portal that connects to your PMS is a great start to the customer journey.

Your staff can automatically trigger an SMS notification, inviting them to check-in early from their mobile and digitally sign any necessary forms (such as a health declaration if required). Activating twoway SMS enables guests to respond and initiates the relationship-building process that you can nurture during and after their stay.

Maintaining contact with your guests shows that you care and want to make their experience as positive and personal as possible. It also builds loyalty and inspires wordof-mouth recommendations, turning them into organic advocates for your brand.

4. Prepare to adapt to fluctuating demand.

As a result of sudden industry shifts caused by the global pandemic, smart operators have identified the opportunity to pivot their inventory to long-term, rapidly responding to unexpected downturns and short-term market collapses.

You can achieve what we call fluid inventory management within your PMS system, removing complexities and easily shifting your business model to target a comparative market.

In this example, switching to a long-term provider could attract alternative segments such as students, remote workers and short-term letting residents.

Take the time to dive into your PMS and update your tech stack to uncover hidden pockets of revenue and elevate your brand.

28

MANAGEMENT

ResortNews | March 2021

TOURISM REPORT

Sunshine Coast launches sub-regional marketing campaigns Each sub-region of Queensland’s Sunshine Coast has now launched a specific tourism promotion through Visit Sunshine Coast’s (VSC) COVID-19 Response Marketing Program.

It includes Caloundra, Kawana, Mooloolaba, Maroochydore, Hinterland, Nambour, Coolum, and Eumundi.

The programs, developed after local consultation, are designed to fast-track recovery of over 1700 grassroots tourism businesses.

VSC supported the creative development, media placement, and management of the campaigns, including radio, print, online, digital, and social media.

Visit Sunshine Coast CEO, Matt Stoeckel, said the sub-regional campaigns, highlight the breadth and depth of experiences across the destinations, and could not have come at a better time.

He said: “The campaigns undertaken across the subregions mostly targeted our drive market and complemented broader activities aimed at boosting our intrastate market to buffer the impact of COVID-19 on the broader destination.”

Numbers stack up for Gold Coast recovery

The Gold Coast is making an impressive fightback from the COVID pandemic that has devastated Australian life. Solid visitor numbers over the summer holidays have tourism officials optimistic about a rapid return to normal at the holiday destination known as “Australia’s playground.”

Destination Gold Coast CEO Patricia O’Callaghan told us: “We saw occupancy sit at 70 per cent post-Christmas and over the first few weeks of January, which variated with many holidaymakers booking last-minute deals.

30

Images courtesy of Visit Sunshine Coast

“Naturally, this was not on par with previous years’ performance but served as a much-needed boost for our tourism operators following a challenging year.”

“Encouragingly, the market has been buoyed by solid visitor numbers over summer, but we must ensure this momentum continues.”

Although the Gold Coast’s economy will take many years to recover from COVID, tourism will be a key contributor in leading the city’s recovery.

Destination Gold Coast’s post-COVID-19 marketing plan for 2020-21 was designed to entice visitors to come back and play to ensure the Gold Coast’s $6 billion tourism sector can get back on its feet as quickly as possible.

Caravan industry calls for tax incentives The caravan and camping industry, which represents the largest group of Australian holidaymakers, is calling for concessional funding for tourism operators and personal tax deductions for domestic travel.

The Caravan Industry Association of Australia says they are initiatives designed to encourage increased support of businesses rocked by COVID-19 and border closures and that any concessional funding could be paid back once a return to profit occurs.

With the everchanging environment of border closures, the devastating and long-lasting impacts of last season’s bushfires, and challenges with accessing insurance, many businesses still face the real prospect of closure.

The Association’s general manager insights and advocacy, Peter Clay, told us that tax and concessional initiatives could provide a massive boost for Australian tourism and should be coupled with increased access to business advisory TOURISM

services to help operators pivot to new opportunities and manage cashflow. “We acknowledge the need for government to move forward and to stop the handouts with more sustainable packages for businesses,” Mr Clay said.

“From a tourism perspective the caravan industry is not the hardest hit, we’re doing better than travel agents and providers who are relying on international trade.

“But there are a number of our businesses that are being impacted because of hotspots and border closures and what we are proposing is concessional loans similar to the university HECS loans so that when businesses return to profit, they can pay the debt back.

“It is not a handout – it is about helping cashflows. Some businesses might not be able to trade for a couple months, or they have lost the last six- or eight-months’ worth of business but now need to prepare for the summer season.”

Mr Clay said a tax incentive program was a long-term method of encouraging people to travel within Australia.

ResortNews | March 2021

Melbourne - is Australia’s most ‘liveable’ city on track for a cracking comeback?

The recent opening of the luxury W Hotel Melbourne comes as Melbourne gears up for what industry leaders say will be an eventual tourism bonanza.

Melbourne has 23 luxury hotels recently opened or coming onto the market, with 4775 new hotel rooms on offer.

Dougal Hollis, the general manager of Tourism Accommodation Australia (Vic), says that room number represents a 14 percent increase in total Melbourne hotel stock, in just two years. The luxury hotels are rising across Melbourne at what would seem one of the worst possible times for the Australian travel industry.

But Mr Hollis says investors have a “well-founded confidence in the Melbourne hotel market”.

He said: “Melbourne is a key Australian gateway city with

a stable political climate, offering historically strong returns on investment.

“And travel demand drivers for Melbourne remain strong, given the significant depth and breadth of its visitor attractions.”

Mr Hollis added: “The safe, clean, and green image of Australia” has been further enhanced given its relative success in managing virus outbreaks.

“Melbourne is well-positioned to benefit from pent-up international travel demand, once borders reopen. Experience-related travel will bounce back strongly.

The variety of lifestyle and luxury hotels currently under development across Melbourne reflects the changing preferences of these experience-seekers.”

While occupancy at CBD hotels remains a fraction of pre-COVID rates, the 294-room W Hotel Melbourne has just opened inside the East Tower of the $1.25 billion Collins Arch complex. It is the first major international five-star hotel to open in the Victorian capital since the protracted COVID lockdown and it recently advertised for people to fill 100 jobs.

© Pat Whelen on Unsplash

Melbourne may have been rocked by controversial lockdowns during the COVID crisis, but the word is out that its accommodation industry is ready for a surge of new business when travel restrictions end.

© Parchideaphoto - stock.adobe.com

Are we on the verge of our long-promised rebound?

ResortNews | March 2021

Recent TripAdvisor insights indicate that, having sacrificed vacation time in 2020, Aussies want to make this year count, and that means leveling up their travel plans by spending more on luxury accommodation and destinations. Out with the weekend backpacking and budget hotels, and in with the beachside villas and pictureperfect locations.

The predicted 2021 travel splurge is not just apparent in

TOURISM

the cost of each trip, but also the number of trips travellers plan to take throughout the year.

Nearly a quarter (22 percent) of Australian travellers surveyed said that they plan to take three or more trips in 2021.

Some of the projected increased travel spend seen on TripAdvisor may not just be down to the type of destinations travellers are booking, but also the type of accommodation they are choosing, as more than one in ten (11 percent) Australian travellers said that they plan to go luxe on accommodation in 2021.

In fact, travellers from Australia have already booked a luxury hotel stay in 2021, almost one in ten have already done so!

31

TOURISM INTERNATIONAL

Culture and creativity are superpowers At least, if they are used for tourism recovery, says World Tourism Organization (UNWTO).

In collaboration with United Nations Educational, Scientific and Cultural Organization (UNESCO), a new set of guidelines have been produced, focussing on the relationship between culture and tourism and how countries around the world can recover from the pandemic.

Virtual experiences

NZ hopes virtual tourism experiences will fill sector’s employee void Virtual travel and hospitality experiences are being used in Kiwi schools to inspire high school kids to enter a career in hospitality and save the sector from a skill shortage crisis.

The sector has always relied heavily on overseas and migrant workers to fill vacancies in hospitality but due to COVID, there has been a dramatic reduction in these workers.

This inspired initiative from the NZ tourism website, Go with Tourism began in term one of 2021 and offers 10-minute 360-degree virtual reality experiences that will become a regular feature of the educational programme. The students are given a taste of a career in tourism and hospitality through the eyes of an undercover agent

who is on a mission to prevent a catastrophic event. The headset wearer is thrown out of a plane and off a bridge, taken into a busy commercial kitchen, surrounded by a powerful haka performance group and more.

According to Go with Tourism programme director, Matt Stenton, one solution to filling future gaps in the workforce is by engaging rangitahi today.

He said: “We are at risk of not having enough talent for our industry when we recover. If we do not feed the funnel at secondary school level, we may find ourselves in a worse position than prior to COVID-19.”

The publication, ‘Make cultural tourism relevant in the recovery’, draws on the insights and expertise of two UN agencies to analyse the impact of the pandemic on their respective sectors. This includes how lost revenues are severely impacting communities, heritage sites, cultural events, spaces, and institutions, while also weakening destinations’ competitiveness and market differentiation. The guidelines on cultural tourism also stress the need for support from policymakers to ensure the relevance of culture in the emergency

and contingency planning within tourism destinations.

Alongside the new guidelines, UNWTO is urging the cultural tourism sector to create participatory governance structures, bringing together artists, creators, tourism and culture professionals, the private sector, and local communities for an open dialogue, data exchange and real-time solutions. The document also advocates for better urban–rural connections to ensure the benefits of both culture and tourism are enjoyed as widely as possible.

It is a fact that because of the pandemic, 90 percent of countries introduced total or partial closures of their World Heritage sites. In many cases, sites of special significance to humanity were closed to the public for the first time in decades. At the same time, the pandemic highlighted the relevance of both tourism and culture. The sudden fall in tourist arrivals has been felt across the globe, while millions of people have turned to virtual cultural experiences for comfort and inspiration.

Pre-COVID-19, New Zealand was heavily reliant on migrant workers to fill skill shortages in the tourism industry and an estimated 40,000 new workers were needed nationwide by 2025.

QLD - NSW - VIC - WA

World heritage site, Taj Mahal

32

TOURISM

ResortNews | March 2021

By Grantlee Kieza, Industry Reporter

It remains a hidden gem on the Australian tourism landscape…

And it is as pristine and picturesque as when Lieutenant James Cook and the fabulously wealthy botanist Joseph Banks took their first steps on Queensland soil more than 250 years ago.

The Town of 1770, named in honour of Cook’s landing that year, and the neighbouring town of Agnes Water, offer spectacular scenery, superb hiking, natural wonders, and luxury resorts in the still secluded Southern Great Barrier Reef destination.

A little more than hour’s drive north of Bundaberg, or about six hours leisurely motoring from Brisbane, the coastline is as wondrous as it was when Europeans, aboard the small, converted coal transport Endeavour, first gazed upon it.

On May 23, 1770, Banks recorded that the Endeavour “landed near the mouth of a large lagoon” and that the tropical vegetation was “a sure mark that we were upon the point of leaving the Southern temperate Zone”. Banks waded through mangroves where big green ants waited in ambush and when annoyed “revenged themselves ... very sufficiently upon their disturbers, biting sharper than any I have felt in Europe’’.

The sea abounded in fish, and pelicans flocked to the shoals and sand dunes. Banks carefully studied a bustard, a bird with a long, slightly curved white neck and a black-capped head.

The men shot one weighing eight kilograms and cooked it for dinner, and Banks declared he had eaten no bird to equal its taste since leaving England two years earlier on the great voyage. Cook named the place Bustard Bay. ResortNews | March 2021

Two and half centuries later, visitors to the town of 1770 can enjoy a 1.2km bush walking track in Joseph Banks Conservation Park that has spectacular views of Bustard Bay, where the Endeavour anchored.

This track is also known as the “butterfly walk” because of the masses of migrating blue tiger butterflies just like those that astounded Banks.

A little south of Agnes Water is the stunning Paperbark Forest Boardwalk, just 400m long but producing memories to last a lifetime.

THE LAST RESORT

Joys of exploring Southern Barrier Reef

Images supplied

This short but spectacular forest walk takes visitors into the heart of a very special type of forest, rarely seen in such pristine condition.

Visitors to Agnes Water can also enjoy a tour on a bright pink amphibian vehicle fondly known as the `LARC’ which crosses pristine waterways and travels along the coastline of deserted stretches of sandy beaches to the Bustard Head Lighthouse.

For the adventurous there is the chance to sandboard down towering 35m sand dunes.

Lady Musgrave Reef Cruises operate from the area and the open water contains some of the best table fish the Pacific has to offer including coral trout, red emperor, Spanish mackerel and yellowfin tuna.

The Lagoons 1770 Central Apartment Resort features the Anjea Day Spa and the Plantation Bar and Restaurant.

Many of the rooms are “swim out” studios, situated right over the lagoon-style pool allowing guests to sit on their back porch and slip in for a refreshing dip or to dive under the impressive water-play features including showers and big-dipper buckets.

TOURISM

33

Patrick Clarke, AccomProperties - industry partner

February ARAMA Roadshow event Alongside industry partners ARAMA provided education and training to its member branches.

ARAMA kept on truckin’ and visited branches in Brisbane, Gold Coast, Sunshine Coast, Whitsundays/ Mackay, Port Douglas and also travelled to members in Cairns.

The event speaker was Danny Little from MRAS who shared some great advice about the

34

Art of Caretaking. These were the first face to face events with many more scheduled for the coming year.

The feedback given by attendees to Resort News was very positive.

The consensus was the event provided not only a very valuable educational opportunity but also the chance to meet up with peers. It came at the perfect time for mangers, who have had a really tough year to make both professional connections and more importantly new friends.

EVENTS & APPOINTMENTS

ResortNews | March 2021

Women In Management kicked off their first luncheon of 2021 on the Gold Coast Marisa told us: “It was held at the wonderful Fu Manchu, Asian fusion inspired with a delicious array of flavours. It was wonderful to see everyone after such a long break and also a big welcome to all the newbies that joined us.

“Thank you Trina from L&M Electrical for chatting to us all about the history and services of the business, it was exciting to learn that L&M are now going into the resort furniture, a wonderful expansion to their forever growing business.”

The March luncheon in celebration of International Women’s Day is special and will be held on a luxury yacht, cruising the fabulous waters of The Gold Coast.

Tickets are limited for the event on Wednesday March 17, 2021.

Time: 12.30pm - 3.30pm.

Venue: Marina Mirage.

Cost: $80.00 per person, includes 2 drinks on arrival and canapé.

The luncheons for April and May are to be confirmed.

2021 ARAMA INDUSTRY EVENTS CALENDAR For registration and/or event information please contact us on 1300 ARAMA Q (1300 27 26 27), email national@arama.com.au or visit: https://www.arama.com.au/ BRANCH

EVENT TITLE

DATE

TIME

LOCATION

REGISTRATION

Gold Coast

Management Rights Social Lunch

Tuesday, 9 March 2021

11:30am - 2pm

Precinct Brewing

Open

Online

Educational Webinar

Wednesday, 17 March 2021

11am QLD Time

Register Online

Open

Byron Bay

Industry Update

Tuesday, 23 March 2021

6pm - 8:30pm

Byron Bay Services Club

Open

Sydney

Industry Update

Wednesday, 24 March 2021

6pm - 8:30pm

The Glasshouse

Open

Pt Macquarie

Industry Update

Thursday, 25 March 2021

6pm - 8:30pm

Adina Hotel Sydney

Open

Brisbane

Management Rights Industry Training Program

Tuesday, 30 March 2021

8:30am - 4pm

Riverside Hotel

Open

Brisbane

Drop in for Drinks

Tuesday, 30 March 2021

4:30pm - 6:30pm

Riverside Hotel

Open

Online

Educational Webinar

Wednesday, 21 April 2021

11am QLD Time

Register Online

Opening Soon

Brisbane

Management Rights Industry Training Program

Wednesday, 28 April 2021

8:30am - 4pm

Riverside Hotel

Open

Brisbane

Drop in for Drinks

Wednesday, 28 April 2021

4:30pm - 6:30pm

Riverside Hotel

Opening Soon

Online

Educational Webinar

Wednesday, 19 May 2021

11am QLD Time

Register Online

Opening soon

Brisbane

Management Rights Industry Training Program

Thursday, 27 May 2021

8:30am - 4pm

Riverside Hotel

Open

Brisbane

Drop in for Drinks

Thursday, 27 May 2021

4:30pm - 6:30pm

Riverside Hotel

Opening Soon

ResortNews | March 2021

EVENTS & APPOINTMENTS

35

Luxury hotels mushroom under the Brisbane sun A major hotel boom is taking place in Brisbane and industry leaders say it has the River City poised for a massive post-COVID bounce back.

The recent opening of Brisbane’s new five-star Hotel X along with the Ghanem Group’s new French dining destination, Bisou Bisou, on its ground floor, comes as Brisbane prepares to see the unveiling of at least five more topof-the range properties next year.

The internationally recognised brands together will offer more than 1000 premium hotel rooms.

The brands about to open their doors at the $3.6 billion Queen’s Wharf project are The Ritz-Carlton Hotel, Rosewood, Dorsett and the Star Grand hotel by lead consortium partner, The Star Entertainment Group.

The development will also introduce Brisbane’s first six-star hotels.

In addition, Hyatt has made a spectacular return to Queensland with the rebranding of a Salter Brothers-owned property in the heart of Brisbane’s CBD. The 292-room Hyatt Regency Brisbane marks the return of the chain to the Sunshine State after nine years.

Hotel X balcony, Photo: Justin Nicholas

The hotel is located at the former Next Hotel Brisbane and will undergo a full refurbishment that will see the guest rooms, public areas, event spaces and dining venues transformed over the next few months.

Hotel X, in the centre of Fortitude Valley, was launched by InterContinental Hotels Group (IHG).

The 146-room Brunswick Street development boasts exceptional views of the city

and amenities designed by fashion icon Karl Lagerfeld.

Michael Johnson, CEO of Tourism Accommodation Australia, says that while Australia still faces challenging times, “there’s going to be a fair bit of pent-up international demand for Australia – and Brisbane certainly fits that bill”.

“Brisbane has continued to grow over the last years and we’ve seen its infrastructure grow dramatically,” Mr Johnson

said. “It’s always a good thing for any city to get some more high-end product.

“It shows that investors are still prepared to invest heavily in the tourism industry and now is the time to certainly be building because the industry will have the product ready for when we are in that bounce back mode.”

Dean Long, CEO of Accommodation Association of Australia, said Brisbane’s infrastructure projects, such as a second runway at the city’s airport, were important factors in attracting overseas business.

“There are some great things happening in Brisbane,” Mr Long said. “Just like Melbourne it has a really good supply pipeline of new hotels.

“There have been some really good strategies from the Queensland Government about promoting tourism back into new markets. While COVID has been the hand brake on that, when we do get the borders open for international travellers there’s going to be a lot of new product to attract them.”

Hotel X guest room, Photo: Justin Nicholas

36

DEVELOPMENTS

Hyatt is also planning a new 170-room hotel in Woolloongabba scheduled to open in 2023.

ResortNews | March 2021

Construction began on a new Melbourne hotel, thrilling residents with the vibrant hotel offering Construction has begun on the highly anticipated Peppers Melbourne Richmond by prominent Melbourne developer, owner and operator, Amber Property Group.

Located on historic Bridge Road, the 80-room hotel will be nestled in the vibrant inner-city suburb of Richmond. It will elevate the accommodation scene of Richmond, offering exceptional facilities, including a state-ofthe-art gym and restaurant.

Peppers Melbourne Richmond, Photo: Supplied

The hotel will also be home to an incredible rooftop bar which will overlook Melbourne’s stunning skyline, the Melbourne Cricket Ground and Botanical Gardens.

CEO for Accor Pacific, said: “We are excited to be growing our presence in Melbourne within the suburb of Richmond, and we are proud to be developing our partnership with Amber Property Group who recently opened The Sebel Melbourne Ringwood.

Accor Pacific will operate the hotel. Simon McGrath AM,

Creating jobs and investing in the future of the tourism and

the rejuvenation of Bridge Road. Peppers is going to be a wonderful catalyst and hub for regional Victorian’s and interstate visitors alike to enjoy what Melbourne’s inner east has to offer. The guestrooms and facilities will set this hotel apart from others. There is a huge sense of community pride within Richmond and we are thrilled to be part of this, we are looking forward to bringing the people of Richmond on the journey with us.”

accommodation sector has never been more important and it is fantastic to see the sod being turned and construction underway.”

Peppers Melbourne Richmond will be the third Peppers hotel in the Victorian capital, joining Peppers Docklands and the acclaimed Shadow Play by Peppers.

General manager for Peppers Melbourne Richmond, Edmond Power, said:

During the construction phase, the build will create 350 jobs and, once open, Peppers Melbourne Richmond will employ over 40 team members.

“It is fantastic to be part of

Jamie Durie designs for Australia’s first Fairmont

Fairmont Port Douglas

ResortNews | March 2021

Luxury property developer, Chiodo, appointed Australian TV personality, horticulturalist and landscape designer, Jamie Durie OAM and his team, to create the architectural concept and landscape architecture for its new $300 million luxury resort, Fairmont Port Douglas.

DEVELOPMENTS

Nestled in a stunning location on the edge of two UNESCO World Heritage sites of the Great Barrier Reef and the Daintree Rainforest, the new Fairmont Port Douglas will be the first of its kind, in that it will be locally focused yet globally artistic, cultivating a celebration of the planet, sustainability and humanity.

The resort at 71-85 Port Douglas Road will be the first new hotel to be built in Port Douglas in 20 years.

37

Thinking About Management Rights? Look No Further EXCLUSIVE AGENCY

ID 9004 PERMANENT – KANGAROO POINT • No pool or BBQ to maintain • Generous 2 bed, 2 bath residence • Minutes from the Brisbane CBD

• 22 apartments • 6 in the letting pool • Light duties

EXCLUSIVE AGENCY

ID 7997 HOLIDAY – TWEED COAST • 20 apartments in the letting pool • Tweed Coast complex • Proactive committee

• Beach right on the doorstep • Ideal first time couples business • Renovated 2bd manager’s residence

NET PROFIT: $50,000

ASKING PRICE: $882,500

EXCLUSIVE BROKER:

Peter Ross - 0447 740 891

EXCLUSIVE BROKER:

Tony Johnson - 0433 335 679

LISTING BROKER:

Reg Partington - 0407 412 479

LISTING BROKERS:

NET PROFIT: $243,711

ASKING PRICE: $649,000

Amanda Rowe - 0427 413 319 Lyn Pearsall - 0425 168 244

NET PROFIT: $500,000

ASKING PRICE: $3,840,000

• Perfect lifestyle opportunity • Rentals up 80% this summer • State visitation is up by 22%

• No real estate to purchase • Can even be run remotely • Set your hours to your lifestyle

ID 9003 VICTORIAN HIGH COUNTRY – HOLIDAY RENTALS

NET PROFIT: $144,000

• Often sought, rarely found • Close to Bond University • The location is hard to beat

ASKING PRICE: $995,000

• Resort style facilities • Minimal vacancies • 3 bed, 2 bath manager’s villa

ID 8576 STUDENT / PERMANENT COMPLEX - ROBINA

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

MANAGEMENT RIGHTS RESORTS

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RUNCORN

NO NEED TO LIVE ON SITE

Upmarket permanent in Robina CBD precinct Superb 4 bed townhouse, dual living, double garage. Spacious office on title No set hours. Accommodation Module 23 years to run Low maintenance facilities & minimal grass. Pet permitted with BC approval

Townhouse complex close to quality shopping centres Walking distance to train and bus stations Popular South Brisbane suburb with high rental demand No office hours and supportive Body Corporate

■ ■ ■ ■

ER T D AC N R U NT CO

ER T D AC N R U NT CO

SPRINGWOOD

STRATHPINE

NEAR NEW PERMANENT COMPLEX

SIMPLE AND SECURE! ■ ■ ■ ■

ER T D AC N R U NT CO

ER T D AC N R U NT CO

ROBINA

Great Salary with 22 years to run on agreements Modern, low maintenance, townhouse complex built in 2017 Simple duties, close to all amenities and good schooling Spacious four-bedroom Manager’s home

■ ■ ■ ■

Permanent townhouse complex. Four years old. Popular with renters 21 years remaining on Management Rights agreements 3-bedroom Manager’s accom. Double garage. Office attached Located in a sought-after community, just north of Brisbane

Bobo Qi 0438 027 771

Rhonda Perkins 0418 767 115

Jim Lowe 0403 418 115

Jenny Zheng 0413 922 580

Selina Zhong 0468 886 010

bobo@propertybridge.com.au

rhonda@propertybridge.com.au

jim@propertybridge.com.au

jenny@propertybridge.com.au

selina@propertybridge.com.au

propertybridge.com.au | 1800 888 518

NARACOORTE HOLIDAY PARK | LIMESTONE COAST, SA

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

MANAGEMENT RIGHTS Gold Coast Sage at Merrimac

Ray & Louise Thom

Merrimac

RB

Vantage Place & Maxima

Promint P/L

Doolandella

MRS

Aquila Lodge & River Hills Grange

Promint P/L

Eaglby

MRS

Enclave

JCQ Realty P/L

Wynnum

RB

Alma Villas

Wendy Derbyshire

Dakabin

RB

Alma Terraces

Wendy Derbyshire

Dakabin

RB

Montree Villas

Wendy Derbyshire

Kallangur

RB

Terraces on Station

Wendy Derbyshire

Burpengary

RB

Villas on Mumford

Wendy Derbyshire

Narangba

RB

Villas on Waratah

Wendy Derbyshire

Morayfield

RB

The Shores Holiday Apartments

Terry Ohanlon

Blacks Beach

RB

Airlie Summit Apartments

PWC Financial P/L

Airlie Beach

RB

Brisbane

From left to right: Simon Fogerty (outgoing vendor), Leanne Simmonds (new manager), Ashlyn Guthrie (Edwards Group) and Lisa Milligan (new manager).

The leasehold to the Naracoorte Holiday Park on the Limestone Coast in South Australia has been sold by Kelli Crouch of ResortBrokers to the Edwards Group.

North Queensland

TheManagement Rights Lawyers BUYING/SELLING ASSISTANCE

MOTELS & OTHER Queensland BW Ambassador Motor Lodge

I & S Havlic

Pialba

TB

Camden Motor Inn

T. Yang

Mermaid Beach

TB

Hunter Gateway Motel

Tarhf 3 P/L

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RB

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Pathfinders Ltd

Armidale

TB

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Warrnambool

TB

The Edwards Group

Naracoorte

SA

New South Wales OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

Victoria Warrnambool International

DISPUTE RESOLUTION

South Australia

ARAMA Service Provider

Naracoorte Holiday Park

of the year 2019 & 2020

www.mahoneys.com.au 40

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

PROPERTY

ResortNews | March 2021

Resort News Agent Profile:

Introducing Peter Ross – MR Sales Peter Ross was previously involved in the management rights sector operating a 40-apartment complex on North Stradbroke Island.

Peter and his wife Christine purchased the business in December 2013. At that time, the complex was quite tired and run-down.

When the business was sold in October 2019, it had been improved by a factor of over 50 percent and realised a net profit in excess of $500,000.

With the purchase, ownership and management of this business, Peter developed many ‘hands on’ skills, which now place him well to assist both potential purchasers to this exciting sector and current operators who are ready to sell their business and move on.

Based on his own experience with the process of buying and selling, Peter strongly believes “the most important thing people should expect from their broker, whether buying or selling a management rights business is honest and open communication”. He says: “Until we found the broker that was right for us, so

many times, we were left in the dark, and had to chase information ourselves. Just a simple follow up call or email is so important to let clients know the state of play, and how things are progressing. It can be quite an emotional process with a lot at stake, and it is important to feel valued as the client in my opinion.”

Peter describes himself as a good communicator, and someone who is motivated to building relationships with clients, aiming for as close as possible to a ‘perfect fit’ between willing vendors and purchasers to achieve a positive outcome for all concerned.

Name: Mobile: Agency: Servicing: Web: Email:

Peter Ross 0447 710 891 MR Sales Brisbane www.mrsales.com.au peter@mrsales.com.au

LOOKING FOR A MANAGEMENT RIGHTS? Over 300 Listings to choose from...

From all the leading brokers The fastest growing accommodation listings website

visit accomproperties.com.au ResortNews | March 2021

PROPERTY

41

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

RICHLANDS

• • • • •

LARGE INCOME & EXTRA RENTAL INCOME $19,760!

Well-presented townhouses complex Great remuneration $130K with CPI increase Long agreements and very supportive BC committee No residing onsite requirement, no office hours, no gate Two large three beds manager residence, one in rental

NETT: $272,345

TOTAL: $2,245,000

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

Mercantile Dalgety Place:

Kindness and community in glorious Teneriffe

By Mandy Clarke, Editor

One-of-a-kind permanent property, Mercantile Dalgety Place sits on the Brisbane river, in the heart of historic Teneriffe.

You could say the complex offers the best of both worlds, with its laid-back riverfront living and sophisticated inner-city lifestyle.

Mercantile Dalgety Place was the first modern residential property built in Teneriffe, on the old Brewery site in 1996.

The landscape of Brisbane has

ResortNews | March 2021

changed greatly since then, and Teneriffe has quickly become one of the most sought-after and fashionable suburbs to live in, famous for its historic wool stores and quirky vibe.

With 84 units spread over three levels, Mercantile Dalgety is one of the most expansive modern properties in the area.

Just two years ago, industry first-timers Dong and Zoe Huang jumped at the chance to secure the management rights business and moved into their new two-bedroom riverfront managers’ apartment.

This month, Resort News caught up with Dong and Zoe over some barista-brewed coffee in trendy Teneriffe to hear their story. The couple struck me as charming and hardworking as they told me about their journey, having not only stepped into a new industry but a new city, and with two very young daughters, Isabella and Olivia. Remarkable!

an investment consultancy.

They spent a decade working in London before opportunities knocked and they moved to Bermuda...

Their story began when they met at university in Edinburgh, Scotland. Dong, an Actuary specialist in life insurance and Zoe still works today as an Actuary specialist for

“We decided to move to Australia and a tropical climate.

We lived in Melbourne for a few months (which was still too cold!) before settling in a much-warmer Brisbane.”

PROFILES

“We loved beautiful Bermuda and our daughters were born there, but when the time came to return to the UK, we knew that we didn’t want to go back to a cold climate,” Zoe told me.

43

Dong and Zoe knew they wanted to run their own business, but they were not sure which industry to invest in. After some friends told them about management rights, they did some research and with help from Shine Realty found Mercantile Dalgety Place. This management rights business: the complex, location, and its owners’ apartment suited their family perfectly.

Dong said: “The location of the complex is wonderful for us as Zoe still works full-time in finance and the great public transport links to the city makes her commute easy. The modern owners’ apartment is perfect for our small family and we love the riverfront garden, wide sweeping views of the river, and having direct access to the boardwalk.”

Flexibility to spend time with the kids.

The business of management rights has turned out to be an ideal choice for the couple, offering them financial certainty and flexibility to manage their own time so they can be present for their young children.

Dong explained: “Zoe loves her job, and this business allows me the flexibility to run my own business while spending time with our girls. This takes some pressure off Zoe and enables her to reach her career goals.

He added: “Don’t get me wrong, the first six months of business was very difficult. I was thrown in the deep end and given a very short handover from the previous owner. The learning curve was steep but once I learnt the basics, I was able to get on top of the role and sometimes I am even ahead of myself!

“I am very lucky to have been able to build great relationships with the body corporate and owners. Once they realised that I was consistent and there for them and the success of the complex they have bent over backwards to help me, and they have made our family

feel part of a very supportive and special community.”

Industry support has been a huge help.

Dong also shared his gratitude for the support he has received from Mahoneys’ Michelle Lim as well as ARAMA. He says they have been especially helpful to him and he enjoys the ARAMA meet ups, having made great connections with others in the industry. Dong and Zoe also read Resort News every month and are grateful to be part of Accom Properties.

Dong said: “AccomProperties has been very helpful to me in so many ways, not just helping with marketing and rentals but with practical advice and information on management rights and caretaking. I have also found the customer service to be excellent compared to my previous service provider.”

The externals of the building were freshly repainted before Dong and Zoe took over the business. However, Dong has overseen the internal painting of all walls and the replacement of carpets throughout the building and with 18 stairwell foyers it was a six-month project. Dong has a part-time gardener and a cleaner to help.

He reveals: “The next major upgrade is the pool. It will be a complete facelift to modernise the whole pool area, including architectural design sunroof and glass fences surrounding modern wooden decking.”

Family sadly separated

by COVID restrictions.

As for 2020 and COVID, Dong said that it barely affected the business itself, with only two renters asking for rent reductions, which he noted were easily negotiated.

However, he revealed personally that the last 12 months were excruciating for his family.

They were broken apart for an extended period due to COVID restrictions.

Plans for pool area upgrade

44

PROFILES

ResortNews | March 2021

Zoe told us their incredible story: “My youngest daughter Olivia was a fussy baby who didn’t sleep, we had just bought the MR business and I was also working full-time in the city.

“In 2019, my mother offered to take Olivia back to China for a couple of months. This was a generous offer that would give us time to get the business on track and to give me some much-needed rest. Sadly, COVID happened, and Olivia was unable to return home to us as planned.

“It was devastating for us to be away from her for so long and I made the decision to travel to China to be with her until we

could return together. In the end, it was a full year before Olivia and I returned to Brisbane.

In the meantime, Dong was managing our new business alone and looking after our older daughter who is now five.”

A very hard period for the family but...

“The community of owners and body corporate members at Mercantile Dalgety Place came to the rescue. They rallied around me and even helped me out with childcare!

Dong continued: “I will never forget the care and concern shown to us. It highlights how wonderful our complex is,

and our community. Zoe and I have made many friends here and, in return, I always try my best to make the complex as nice as possible and the living environment the best it can be.”

Dong is clearly a people person, motivated by helping others. He told me he likes to make a difference and enjoys when his efforts lead to a happy living environment.

Dong’s advice to others interested in the MR industry was to research the business inside and out before buying, and to be prepared for a challenge. He said: “Insist on a thorough handover from the previous owner, have

a good hard-working attitude and realistic expectations. Still, be prepared for a steep learning curve in the first six months!”

What does their future have in store?

“We named our company “Happy Life Begins Pty Ltd” as it is our greatest wish to bring happy life to all residents and investor owners. As the onsite manager, I will continue to do a great job at this complex,” said Dong. “I also aim to improve the building as much as I can.

“It would be nice to be able to play more tennis, though!

I love tennis and I do not get enough time to play!”

We are proud to be the trusted legal advisors to Dong & Zoe in relation to Mercantile Dalgety Place

We are proud to be associated with Dong & Zoe and wish them all the best for the future.

BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

AccomProperties actively recruits qualified Resident Managers in order to sell units and fill vacancies within their respective accommodation property.

RENEWAL STRATEGY

DISPUTE RESOLUTION

ARAMA Service Provider

REGISTER ONLINE TODAY!

of the year 2019 & 2020

www.accomproperties.com.au

www.mahoneys.com.au ResortNews | March 2021

PROFILES

45

Journey “written in the stars”

By Mandy Clarke, Editor

beach, Pt Cartwright, shops, an array of wonderful restaurants and a local cinema. We really are a five-star destination.”

Gracing the pristine white sands of Buddina Beach on Queensland’s sparkly Sunshine Coast, is Beachside Resort.

After spending many years in the busy corporate world as a business advisor, Julie was keen for a career change. She was looking for an “exciting people-centred opportunity” on the Sunshine Coast and walked straight into the management rights industry.

The glistening property offers seven stories of large and luxurious self-contained accommodation, with gorgeous views and spacious balconies.

Who has the privilege of managing this breathtaking resort?

Julie Laming and Simon Reeder became the new owners of the management rights for this property in March 2019 and say

46

they were both drawn to it, not only because it is so unique but also because it holds a special place in Julie’s heart.

of an exotic Mediterranean destination without the hustle and bustle of many other parts of the Sunshine Coast.

Julie says: “Our resort differs because it offers all the allure

“In terms of proximity, we are still very close to a stunning patrolled

PROFILES

“Having grown up in Buddina Beach since 1976, it was exciting to learn about management rights here at home. Even better, Beachside Resort was looking for a new custodian just as we were looking for a resort!”

ResortNews | March 2021

Simon Reeder and Julie Laming

For Julie, the timing was written in the stars and she reveals she had a long history and emotional attachment to Beachside in particular.

“I grew up here and as a teenager I remember watching the construction of Beachside Resort. In fact, my father Bruce Laming actually opened the resort back in the 1990s!

“Aside from having a family link to the resort, its beautiful facilities also appealed to me. It is not only a beautifully

I grew up here and as a teenager I remember watching the construction of Beachside Resort. designed property, but also has a full-size tennis court, heated pool, spa, and gym set in magnificent mature gardens.

“Recently, we also added an onsite café so that guests could enjoy a lovely espresso and some cake, served directly to their apartment.”

As new resort managers, the first six months spent in their resort management roles turned out to be a huge learning curve for Julie and Simon. Of course, teamwork prevailed!

partnership. Simon and I are very fortunate in the sense that I enjoy communication and client services and he is very competent at handling all of the maintenance work in house.”

“Management rights is such a diverse business that requires a unique skillset and

Julie and Simon are also fortunate to have a team who have worked at the resort for many years.

Fire Boar has been servicing the Sunshine Coast since 2008. tĞ dĞƐƚ͕ /ŶƐƚĂůů͕ DĂŝŶƚĂŝŶ Θ ĞƌƟĨLJ ĂŶ ĞdžƚĞŶƐŝǀĞ ƌĂŶŐĞ ŽĨ &ŝƌĞ /ŶƐƚĂůůĂƟŽŶƐ ŝŶĐůƵĚŝŶŐ &ŝƌĞ ^ƉƌŝŶŬůĞƌ ^LJƐƚĞŵƐ &ŝƌĞ WƵŵƉ ^ĞƚƐ &ŝƌĞ ,LJĚƌĂŶƚ ^LJƐƚĞŵƐ &ŝƌĞ ĞƚĞĐƟŽŶ ĂŶĚ ůĂƌŵ ^LJƐƚĞŵƐ ǀĂĐƵĂƟŽŶ ŝĂŐƌĂŵƐͬWůĂŶƐ

&ŝƌĞ džƟŶŐƵŝƐŚĞƌƐͬ,ŽƐĞ ZĞĞůƐ &ŝƌĞͬ^ŵŽŬĞͬhŶŝƚ ŽŽƌƐ Passive Fire ŵĞƌŐĞŶĐLJ ĂŶĚ džŝƚ >ŝŐŚƟŶŐ Fire Training

“Smoke Alarm 2022 Compliance” ŽŶƚĂĐƚ ƵƐ ƚŽĚĂLJ ĨŽƌ Ă ĐŽŵƉĂƌĂƟǀĞ ƋƵŽƚĞ͊

1300 11 2627 ϭͬϯϱ ŶƚĞƌƉƌŝƐĞ ^ƚƌĞĞƚ͕ <ƵŶĚĂ WĂƌŬ ƐĐƐĞƌǀŝĐĞΛĮƌĞďŽĂƌ͘ĐŽŵ͘ĂƵ ǁǁǁ͘ĮƌĞďŽĂƌ͘ĐŽŵ͘ĂƵ

ResortNews | March 2021

PROFILES

47

“Our team are the backbone of why our resort is unique.

Each team member is proud of the resort and we value each other’s contributions.

“Leah is the office manager, and she is certainly the wind beneath our wings. Leah ensures that the office is always humming away efficiently.

“The cleaning team has also worked here for years and take great pride in ensuring the apartments present as best they can. There is an immense amount of pride in the hearts of the whole team.”

that they enjoy the friendships they are building with the lot owners and the regular guests that frequent Beachside Resort.

“It’s also very enjoyable to be working each day in a beautiful resort environment with a team of people that you genuinely value and respect,” Simon adds.

“The feedback we receive from

However, he warns: “There is

guests is what motivates us to

always something to improve

continually provide the best

and work on!” The resort’s

guest experiences possible.

point of difference is how Julie,

When you have families returning

Simon and their team make

this year for their 20th family

guests feel from the moment

vacation, you know that you

they check in. They certainly

must be doing something right.”

make a good first impression!

Y STR DU

25 YEARS E ER

NC ERIE E IN XP

OV

Julie and Simon also reveal

Each day, we fill the resort and waterfall with fresh hibiscus and frangipani flowers, homemade biscuits, the aroma of incense and freshly brewed coffee

RA E ST TA IN TH

Reef Accountants has been providing specialist services and advice to clients in the Management Rights industry for almost 10 years.

Providing professional, personable and quality services to Body Corporate Lot Owners and Developers of Strata Titles Schemes.

Services include: - Financial Verification/Due Diligence - Financial Statements & Tax Returns - Structuring advice - Form 6 letting agreement advice - POA Trust Account Audit - Exit planning, including Adjusted Profit & Loss for sale purposes With combined experience in the Management Rights industry in excess on 25 years, get in touch with Hayden or Carol to discuss your requirements.

Hayden Rooney CA 07 5406 0382 Carol Woolfenden CA 07 5406 0388

hayden@reefaccountants.com.au carol@reefaccountants.com.au

4/146 – 148 Alexandra Parade, Alexandra Headland, QLD, 4572

Proud to be associated with Julie & Simon at Beachside Resort

07 5450 5300 admin@ssbcm.com.au

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p (07) 5326 3124 | e info@reefaccountants.com.au

PROFILES

ResortNews | March 2021

Julie says: “Each day, we fill the resort and waterfall with fresh hibiscus and frangipani flowers, homemade biscuits, the aroma of incense and freshly brewed coffee. DVDs, tennis, table tennis, beach toys and electric bikes are all available to add value to our guests experience.”

Who is perfect for a career in management rights?

Julie says: “It is a unique business model that requires a specific type of personality that enjoys meeting new people and ensuring that they feel good. If you can facilitate

this naturally, you will feel a lot of personal satisfaction.

If it starts to feel like ‘ground hog day’ it is probably time to work on your exit strategy.”

She adds: “The best advice I can give potential managers is to do your homework on why you are entering the industry. Create a spreadsheet categorising the key performance indicators of each of the businesses you inspect for sale.

“Finally, pick your opportunity so that it best serves what you’re wanting whether it’s more lifestyle or for a healthy bottom line.”

We are proud to be associated with Julie & Simon and wish them all the best for the future.

DISCOUNT

AccomProperties actively recruits qualified Resident Managers in order to sell units and fill vacancies within their respective accommodation property.

for Resort News readers when booked direct

(07) 5478 4000

REGISTER ONLINE TODAY!

info@beachsideresort.com.au 101 Pacific Boulevard, Buddina Qld 4575

www.accomproperties.com.au

www.beachsideresort.com.au ResortNews | March 2021

PROFILES

49

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