Resort News, July 2021

Registered by Australia Post Print Post No. 100023799

Issue 299 | July 2021 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Profile On The Beach Resort, Bribie Island Person of Interest Gayle O’Sullivan

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The legal stuff...

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

Advertising Conditions The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement.

The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material.

Inside our July issue FRONT DESK Editors Note: And to think everything WAS looking so rosy................05

INDUSTRY News In Brief .............................................................................. 06 ARAMA Report ...........................................................................08 State Report ............................................................................... 09

Disclaimer Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein.

Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law.

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Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties. © 2021 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the written consent of the publisher.

SCA Report .................................................................................. 10 BCCM Report .............................................................................. 12 Person of Interest: Gayle O’Sullivan................................... 14

14

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

By All Accounts ..........................................................................20 Motel Market ............................................................................... 21 Thinking MR.................................................................................22 Employment: Significant changes to casual employment arrangements ..................................................24 Building Relationships ............................................................26 Private Cloud: Time for a great nights’ sleep and extra $$$ in your pocket................................................. 27 Good Governance .....................................................................28

34

Direct is not always best: The benefits of working with OTAs ....................................................................30 Intonet ...........................................................................................32

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

INDUSTRY REPORTERS

Grantlee Kieza

DESIGN & PRODUCTION

Richard McGill

David Carroll ADVERTISING SUBSCRIPTIONS

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

CONTRIBUTORS Matthias Dybing, Arvo Elias, Jonathan Hanaghan, Sylvia Johnston, Lynda Kypriadakis, John Mahoney, Robert Marsden, Amy McKee, Andrew Morgan, Col Myers, James Nickless, Mike Phipps, Trevor Rawnsley, Kelley Rigby and Michelle Scott.

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

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Channel Managers....................................................................32

TOURISM Tourism Report ...........................................................................34 Tourism International ..............................................................36

EVENTS & APPOINTMENTS Events.............................................................................................38 ARAMA Industry Events Calendar .....................................39

38

DEVELOPMENTS Developement News ...............................................................40

PROPERTY AccomProperties Sales Report ...........................................42

PROFILE On The Beach Resort, Bribie Island: Managers go “hammer and tongs” to improve guest experience .....46

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

46 ResortNews | July 2021

Someone once said (possibly just me) beware when everything starts to come up like roses because roses can quickly begin to stink!

Lesson learned this week.

As I was putting this edition together, my mood was buoyed.

I stopped to smell the roses and rejoice in all the positive news across our sector. Then wham, a snap lockdown was announced and from then on, it’s been a doozy of a week.

First the good news…

In tourism we welcomed whispers of the possibility of more international travel bubbles, and we cheered when Queensland regional airports added more Air New Zealand flights. About the economy we felt reassured by reports that Queensland’s recovery

like jumping for joy) that England are on their way to bringing home the European Cup. Like every other Brit on the planet this week I am convinced that “Football’s coming home”.

And then I remembered my roses stink line…

Mandy Clarke, Editor editor@accomnews.com.au seems to be ahead of most other states. Those of us with a vested interest in property also revelled in the news that the sales and rental market is positively booming.

Personally, I also enjoyed the news that the full bid for the 2032 Olympic Games could be just weeks away from being secured for Brisbane. Secretly, my inner Brit is also a tad excited (more

This week, COVID emerged once more in Queensland causing a snap lockdown for much of the state. I felt her pain when Premier Annastacia Palaszczuk said that she was “absolutely furious”. I felt angry not only for those who may catch and suffer from COVID but for all those business owners and operators across the Sunshine State and especially those in regional and coastal tourism towns who will miss out so much on cancelled school holiday bookings.

Even more worrying was the confirmation that it was the highly infectious Delta strain of COVID that has been out and about across Queensland for the

last 10 days. With this news I fully expect the three-day lockdown will be extended and I hope a support package for tourism businesses is on the cards.

EDITOR'S NOTE

And to think everything WAS looking so rosy As for the vaccines, what is going on? The federal government needs to truthfully answer some hard questions about the poorly handled roll out. Until there are mass vaccinations in Australia our whole tourism industry will be on a hapless merry-go-round.

I have an update on my own AstraZeneca jab fears. Other than an achy arm I had zero side effects and will happily get my second jab.

As for Resort News, it is full of the good stuff this month.

Packed with expert advice and a wonderful interview with industry leader, Gayle O’Sullivan. I think you will enjoy this edition.

Please get in touch, as I always welcome feedback.

Cheers, Mandy

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FRONT DESK

05

NEWS IN BRIEF

New Air New Zealand flights to boost Queensland’s tourism recovery More international Air New Zealand flights are being added to regional Queensland airport schedules to support the Palaszczuk Government’s COVID-19 Economic Recovery Plan. Year-round trans-Tasman flights have been secured for the Sunshine Coast, Gold Coast and Cairns.

Minister for Tourism Industry Development and Innovation and Minister for Sport, Stirling Hinchliffe said: “The deal we’ve sealed with Air New Zealand is great news for Kiwi travellers and Queensland tourism operators.

“By extending direct flights through to May 2022 from Auckland and Christchurch we expect to support almost 250 jobs and deliver at least $17 million to Queensland’s visitor economy.

“The new flights add more than 26,000 seats to the flight schedules of three regional international airports as part of

popular destinations. “In 2019, around 500,000 trips were taken from New Zealand to Queensland, and Air New Zealand flew around half of these customers,” he said.

“We know Kiwis love to escape to Queensland’s warmer climes during the cooler winter months, and many Australians already take advantage of the ski season in New Zealand. the Palaszczuk Government’s commitment to helping tourism to rebuild better.

He said: “Queensland’s Good to Go campaign has been screening across the ditch.

“It’s part of our investment of more than $860 million in direct support for the tourism industry’s Economic Recovery Plan.

“The iconic images of reef snorkelling and rainforests can be experienced in real life, here in Cairns, within just a few hours of departing Auckland.”

“We’ve been able to move to year-round flights across the ditch because we’ve followed the expert medical advice to make Queensland a safe travel destination.”

Member for Cairns and Assistant Tourism Minister Michael Healy said the extended flight schedule followed $10 million in the budget for securing aviation routes.

Extended scheduled seasonal services with Air New Zealand include Auckland to Cairns, Auckland to the Sunshine Coast and Christchurch to the Gold Coast. Air New Zealand General Manager Sales Australia Paul McLean said the airline is delighted to be able to offer its customers year-round access to some of Queensland’s most

For Queenslanders, extending to year-round direct services means good connections onto our domestic network and the chance to explore other parts of the country during the shoulder season.”

For the Sunshine Coast the announcement of a year-round service was a strong vote of confidence in the region. The service will begin on June 28 and end on October 30. Winter seasonal flights will fly on Monday, Wednesday, and Saturday. The new internationally capable runway will allow the service to operate without weight restrictions.

New website delivers Sunshine Coast travel inspiration at lightning speed As domestic travel competition intensifies, Visit Sunshine Coast (VSC) has upped the marketing ante by launching a new website that delivers travel inspiration at lightning speed to book a Sunshine Coast holiday.

Visit Sunshine Coast markets and promotes the Queensland region that covers the area from Caloundra and the Glass House Mountains in the south to Noosa and Gympie in the north.

The VSC’s new website has been redeveloped for faster performance with options to ‘book now’ at the forefront of each operator listing.

Its launch coincides with a mega marketing blitz for the region.

VSC CEO Matt Stoeckel said: “We are incredibly proud to officially launch the new website, which is designed to reflect how consumers think, putting content around things to do, places to visit, trip ideas, events and latest deals at the forefront.

“The new visitsunshinecoast. com also seamlessly connects visitors with our local operators, giving options to click through and book local tours, attractions and accommodation.”

On average the site attracts 350,000 page views a month and 65,000 monthly active users, making it one of VSC’s most important digital assets.

Images courtesy of Visit Sunshine Coast

06

INDUSTRY

ResortNews | July 2021

Queensland closer to securing 2032 Olympic Games Queensland’s full bid for the 2032 Olympic Games has been made public and could be just weeks away from securing.

16 sports and disciplines within 5km of the Brisbane central business district.

Across the three Greater Brisbane and coasts zones are seven venue clusters or precincts, which include “iconic beachfront, breathtaking rural hinterland and city centre locations”. In addition football preliminaries and quarter-final matches will be staged in Toowoomba, Townsville and Cairns.

Australian Olympic Committee (AOC) President John Coates says Brisbane 2032 now faces final scrutiny from International Olympic Committee (IOC) members at the July 20 and 21 sessions ahead of the start of the Tokyo Games.

According to an independent economic assessment released along with the IOC executive decision, the Games would deliver a total benefit of $8.1bn for Queensland and $17.61bn for Australia.

Mr Coates said: “As we emerge from the economic setbacks of the COVID period, this is exactly the panacea Queensland and Australia needs. Economically, socially and for the health and wellbeing of the state and

© Chaay_tee - stock.adobe.com

beyond.” A re-development of the Gabba is proposed to take place if Brisbane wins the rights to host. As Australians are already such a sport loving nation many Olympic events would be held in existing or upgraded facilities.

According to the venue’s masterplan, Brisbane, Ipswich, Moreton Bay, Scenic Rim and Redland along with the Gold Coast and Sunshine Coast will host 28 Olympic sports within 32 venues, with

Along with the Gabba, the new Brisbane Arena would host the swimming, Victoria Park and the RNA could be used for equestrian events and Southbank for archery and basketball.

Among others, the rowing would go to Wyaralong, sailing to Manly, kiteboarding to Alexandra Headland on the Sunshine Coast and beach volleyball to the Gold Coast.

New “Get to the sunshine by lunchtime” campaign To support the launch of the direct flights, Visit Sunshine Coast (VSC), Tourism Noosa (TN) and the Sunshine Coast Airport (SCA) are launching an integrated multimedia campaign, in partnership with Air New Zealand, to attract Kiwis across the ‘ditch’.

The campaign is aimed at encouraging Kiwis to fly direct to the Sunshine Coast and highlights the fact that travellers can depart Auckland in the morning and be dipping their toes in the famed Sunshine Coast waters by lunchtime.

It also showcases the many activities, from dining to adventure, on offer across the region from Caloundra and Mooloolaba to Noosa and the hinterland.

Visit Sunshine Coast CEO Matt Stoeckel said prior to the pandemic, New Zealand was the region’s number one international market with 84,000 annual visitors, 650,000 room nights, and an economic value of $110 million.

Tourism Noosa CEO Melanie Anderson said: “The direct flights from Auckland to the Sunshine Coast provides a welcome opportunity to increase visitor nights and spend into Noosa.”

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INDUSTRY

07

ARAMA REPORT

The success of advocating for government support It is hard to imagine a year has passed since ARAMA wrote an open letter to Queensland Premier Anastacia Palaszczuk reminding the premier and her government of the need for a balanced approach as part of our continued advocacy for borders to open and stay open. Here we are now, over a year later.

We have spent countless hours advocating directly and indirectly with key stakeholders, appeared on the today show and in various print and news media for the free travel of Australians across state borders to resume

where (at the time of writing this) Australians can travel freely throughout the nation.

With the success of the $99 flights to Proserpine, ARAMA has been long advocating for further subsidised interstate flights to help stimulate business in the regions and to keep the pressure on states and territories to keep their borders open.

Trevor Rawnsley, CEO, ARAMA

and continue. ARAMA had a clear strategy and our message for both the federal and state governments was to subsidise flights into North Queensland, Keep the state borders open and to create an incentive to travel such as the voucher system.

We have now arrived at a point

The Whitsundays is a great representation of the positive outcome from the government subsidised flights into Proserpine. Travellers took advantage of the flights with the confidence to travel, creating a revitalised feeder market for the Whitsundays. The region went from occupancies as low as 5 percent to a solid performance of 80 percent.

These initiatives that ARAMA spent time advocating for have aided in keeping tourism alive and top of mind for both state and federal government.

There has been a total of $8 billion worth of subsidised flights across Australia. This saw bookings light up in regions that needed the tourism dollar the most, and as we saw in North Queensland, the explosion of tourism again. Accommodation providers increased from record low occupancies, to achieving targets. For some, they probably felt like the day would never come, however for many it is now a welcomed and new reality.

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)

08

Looking forward, we continue to advocate for further recovery of the tourism industry and help rebuild the wider visitor economy. There is much work to be done by the federal and state governments. Case by case, country by country, international travellers must eventually return to Australia commencing with overseas students and those who yearn for a working holiday down under. As we see vaccinations rolled out across the globe, the natural yearning and hyped anticipation for the opening of international INDUSTRY

borders builds. After all, how long as a country can we remain closed off to the world. It is not viable, and we must adapt to realisation that COVID will not be eradicated even when the borders open. It is a new world that must be embraced.

ARAMA’s major emphasis on the economic recovery has been deliberately related to tourism accommodation and there is good reason for this.

A negative impact on tourism and hospitality affects the entire management rights industry and not just short-term letting operators. Let’s thank our lucky stars that ARAMA has been at it from the outset and every day since in order to protect and advocate for the very industry that you have so heavily invested in.

Some final words to all management and letting rights operators and particularly those who are reliant on the visitor accommodation industry. We all should celebrate the recent success of subsidised flights and travel vouchers because this is helping to get Australians on the move again but more importantly, operators should be doing everything in their power to use this boost to set themselves up for success.

Whether that’s increasing adspend to reach potential guests, renovating rooms, or investing in better tech platforms to track bookings and manage guests.

Regardless of government assistance, accommodation providers that provide the best possible experience for guests will find themselves in the strongest position.

Long term recovery will come to operators who continue to market themselves during and after the government stimulus.

Complacency is not an option.

ResortNews | July 2021

We have all heard about the appalling building defects that have occurred in a number of new strata buildings in Sydney in recent years.

Complexes such as “Opal Tower” and “Mascot Towers” are shocking examples of innocent mums and dads buying their dream residence, only to find that their unit and their complex were shoddily built and their dream has turned into a financial nightmare.

Karen Stiles, from the Owners Corporation Network (which represents apartment owners) has said: “it beggars’ belief that buildings so badly built received occupation certificates which allowed developers to settle on apartments.” How was this allowed to happen?

Design and construct contracts Contractual arrangements for multi-storey projects differ, but commonly developers engage a builder to undertake a designand-construct project. This means the builder is responsible both for the development of the design and the construction of the building. Whilst the developer might initially engage architects and engineers to prepare early designs to obtain planning approvals, these consultants then become subcontractors. Once contracted, the builder will work to find efficiencies and cost savings in the development of the design and construction of the building.

Although building approvals are required, the nature of a design-and-construct project means that many aspects of the design change after the initial approval is obtained. Many certifiers approve, allow, or are not aware of, variations that have been made. The result is that changes to approved design occur frequently, at the discretion ResortNews | July 2021

It beggars’ belief that buildings so badly built received occupation certificates which allowed developers to settle on apartments.”

Col Myers,

STATE REPORT

Fixing the lottery that is building defects in NSW

Small Myers Hughes

or fail to lodge the documents on time. Disciplinary action will be able to be taken against practitioners who improperly make these declarations. The building commissioner will not need to sign off on building plans;

of the builder, project manager and/or contractors and without independent certification.

The Shergold Weir Report commissioned by the NSW government found that inaccurate designs mean that certifiers can never fully ensure compliance because they then must rely on inspections and some of the most important safety elements are hidden from view and a point-in-time inspection cannot properly assess essential construction processes.

3.

Changes implemented The NSW government has supported the vast majority of the report’s recommendations and has (or is) implementing the following major reforms across the construction industry: 1.

Appointment of an expert building commissioner to act as the consolidated building regulator in NSW;

2.

Putting in place new laws that require building practitioners involved in designing buildings to submit building plans to the commissioner (so that they may be audited), declare that the plans are BCA compliant and meet other relevant requirements and provide reports explaining why that is the case for performance solutions. Builders will also have to declare that their buildings are constructed in accordance with these plans. It will be an offence to knowingly or recklessly declare non-compliant plans

4.

The building commissioner will register the building practitioners who can lawfully make a declaration that plans are compliant or make a declaration that plans accurately reflect a building’s as-constructed design. These practitioners will have to maintain the necessary skills and insurance to meet the registration requirements and will be subject to disciplinary action for professional misconduct; Ensuring that building practitioners owe a duty of care to owners corporations and subsequent titleholders of residential developments, as well as unsophisticated construction clients who are small businesses. This means that homeowners will have a right to pursue compensation when they suffer damage because of a building practitioner’s negligence.

From July 1, 2021, most of these changes took effect for Class 2 buildings. These are typically multi-unit, multi-storey residential buildings where people live above and below each other.

The NSW government see Class 2 as the highest priority right now, but the NSW Government will expand the reforms to other classes of construction in the

INDUSTRY

future. Also, previous changes to the Strata Management Act relating to residential strata properties that are four or more storeys now require that: 1.

Developers must lodge a building bond equal to 2 percent of the building contract price, before an application is made for an occupation certificate;

2.

evelopers must give documents to the building inspector that help with their inspection;

3.

There is a means for the developer and owners to agree on the amount of the building bond to be released for repairs, if they can’t agree;

4.

A debt recovery mechanism has been put in place that enables the recovery of unpaid or insufficient bonds from a developer.

Conclusion Strata building defects have resulted in enormous extra workloads for strata committees and building managers, not to mention the emotional and financial hardship caused to unit owners.

David Chandler was appointed the NSW Building Commissioner in 2019 after an impressive forty-year career in the Australian construction industry.

Hopefully, he is the right man to clean up all of this shoddy construction, workmanship and design in strata buildings.

09

SCA REPORT

Leading through advocacy Strata Community Association (Qld) has finalised its three-year strategy, aiming to further its position in the industry, improve member services and create a professional environment for all those who work and live-in strata.

James Nickless, President, SCA, Qld

Following our revised accreditation pathway, we are putting a greater focus on providing more best practice resource, advocating for industry reform, and improving education and training.

The goal of this new strategy is to guide the board and management of SCA (Qld) to achieve the outlined priorities for the next three years. One of the main priorities for SCA

(Qld) has always been to set a standard of professionalism in the sector, among both body corporate managers and suppliers in the industry. Strata titles are not only investments but homes for many and are an area of great importance in many Queenslanders’ lives.

One of our set priorities is to enhance our advocacy efforts to deliver a registration

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framework within the next three years. The introduction of a regulatory framework for body corporate managers has been a priority since SCA (Qld)’s inception, and in 2021 we have finally put this firmly on the agenda of the government.

The recently established Community Titles Legislation Working Group is a result of our continuous advocacy over 2020 and is just the start of our increased advocacy presence.

Our other priorities include strata insurance, scheme termination, bullying reforms and caretaking agreements.

I’m quite confident that this working group will successfully implement benchmarks required of professional strata managers to operate.

Our other focus areas include an improved education agenda for members by providing high quality speakers and content and providing multi-dimensional digital and interactive offerings.

As remote working and learning become greater parts of every professional’s working life, it is important that SCA (Qld) evolves with the changing technologies, to ensure we remain leaders in the industry.

Part of our improved education agenda is our accreditation pathway which is a voluntary education and qualification pathway our members can undertake to show their dedication to professionalism in the industry.

Recently we partnered with the Australian College of Professionals to ensure we provide members an easily accessible Certificate IV in Strata Community Management, a major part of our new accreditation pathway.

As education delivery changes, so does event delivery. Our annual conference has always followed a traditional layout, with two streams of content to allow members to take in different elements of education based on their needs. For our future conferences we will be offering two different

INDUSTRY

streams with different education levels to allow for the education of all body corporate managers, no matter the level of experience. We will be ensuring our members are always presented with an array of high-quality speakers.

Our conference has traditionally had lecture style presentations, with limited audience participation, however to adjust to new learning methods, we will be introducing workshops to our program. A workshop will allow the audience to work up close and personal with the presenter and gain greater insight to the industry from a leading professional.

Our member base will continue to be primarily body corporate managers as our purpose is to lead through advocacy, best practice and professionalism for strata communities. We aim to provide an accreditation pathway and successful continuing professional development program in the absence of a regulatory framework for the industry.

Over the years at SCA (Qld) we have continuously educated and helped contribute to the further professionalism of the body corporate industry.

By improving and pushing our advocacy agenda further than we have before, we are accelerating the body corporate industry on the forefront of the government’s agenda. With topics such as combustible cladding, insurance, and a regulatory framework on the agenda of the newly established Community Title Legislation Working Group, it is clear our voice is getting louder and our voice is being heard.

With six of our seven election priorities on the agenda of this working group, it is clear our dedicated advocacy resources are getting us the results for the growth of the whole body corporate industry.

ResortNews | July 2021

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BCCM REPORT

Maintenance versus improvements © Jaboo2asay - stock.adobe.com

Bodies corporate embarking on works to common property may assume that if works are undertaken for the betterment of the scheme, it is irrelevant whether the works are classed as maintenance or improvements.

However, this article will highlight that this distinction is key in determining the type of approval required under body corporate legislation.

This article explains how the classification of works dictates the approval needed and with the help of recent orders made by adjudicators sheds light on the hazy and sometimes contentious distinction between maintenance and an improvement.

How the distinction between maintenance and an improvement determines the type of approval needed There is a regular misconception that approving common property works is simply a question of confirming whether the cost of the works is within the committee’s spending limit, or whether an ordinary resolution at a general meeting is needed. However, this is only the case if the works are classed as maintenance.

12

Michelle Scott Commissioner, Body Corporate & Community Management

Under Section 186 of the Standard Module, additional steps are involved when working out the correct approval type for an improvement. For an improvement, the type of approval required ranges from committee resolution to as high as a special resolution, depending on which of the following applies: •

basic improvements limit (committee resolution)

•

ordinary resolution improvement range (ordinary resolution required)

•

other (special resolution required).

The cost of the improvement is a major factor in determining which of these categories the work falls into (Section 186).

Basic improvements limit The committee can only authorise an improvement to the

common property by the body corporate if it is within the basic improvements limit. The cost of the improvement cannot be more than the number of lots in the scheme multiplied by $300 to be within this limit. However, this is subject to the general requirement that the cost of the improvement is also within the committee’s spending limit. If the cost of the improvement is within the basic improvements limit, but over the committee’s spending limit, the committee cannot approve the works.

However, even if the committee’s spending limit has been increased at a general meeting and the work is within that spending limit, if the cost is over the basic improvements limit, then the committee cannot approve the work. Basically, the committee can only approve a body corporate improvement if the cost is within the basic improvements limit and within the committee’s spending limit.

Ordinary resolution range If the improvement cannot be authorised by the committee, the next question is whether it can be approved by an ordinary resolution at a general meeting.

The cost of the improvement must not be more than $2,000 multiplied by the number of lots in the scheme, to be within the ordinary resolution range.

INDUSTRY

Importantly, the body corporate can only approve an improvement within the ordinary resolution range once in a financial year.

Other If the cost of the improvement is over the ordinary resolution range, or one improvement has already been approved within the ordinary resolution range in the financial year, the body corporate must pass a special resolution at a general meeting to approve it.

Before approving any common property works the initial question for the body corporate should be: are these works more accurately identified as maintenance or an improvement?

At first glance, the difference between common property maintenance and an improvement seems relatively simple.

Some obvious examples of maintenance include painting a wall in a similar shade if the old coat is peeling or replacing a dilapidated wooden fence with a similar wooden fence.

On the other hand, installing a new swimming pool or upgrading from a wooden fence to a coated metal version would clearly be classed as an improvement.

Unfortunately, characterising common property works as either maintenance or an improvement is not always this straightforward.

ResortNews | July 2021

How the legislation defines maintenance and improvement Schedule 6 of the Body Corporate and Community Management Act 1997 (the Act) states that an improvement includes: •

the erection of a building; and

•

a structural change; and

•

a non-structural change (for example, installing air conditioning).

Section 36 of the Acts Interpretations Act 1954 states that a ‘change’ includes additions, exceptions, omissions, or substitutions. While these provisions provide some initial guidance on what constitutes an improvement, they do not provide an exhaustive definition. Also, there is no equivalent definition of maintenance in the legislation.

Adjudicators have distinguished between maintenance and improvements In situations where the line between maintenance and improvements is blurry, past orders of adjudicators can be a useful tool, being mindful, of course, that any references to these orders are intended to serve as a guideline, not precedent. Each decision has been based upon its own unique set of circumstances.

There are several recent orders made by adjudicators which explore the distinction between maintenance and improvements.

We will highlight some useful points raised by the adjudicators in each of these decisions.

Carmel By the Sea (2020) A motion passed by ordinary resolution to refurbish a common property indoor pool area was disputed as invalid on the basis that the wrong resolution type was used. The applicant contended that a special resolution was needed to pass the motion. The correct resolution type ultimately hinged on whether the work constituted maintenance or an improvement. While it was concluded by the adjudicator that the project required a special resolution, the issue was complex, as elements of both maintenance and improvements were involved in the work.

ResortNews | July 2021

The adjudicator emphasised the body corporate’s obligation to act reasonably. It was observed that if the work is largely maintenance but includes ‘small or incidental components’ that constitute an improvement, it may be reasonable to class it as maintenance. On the other hand, where ‘a significant or appreciable component’ of work in the one motion concerns improvements, the work should be passed as an improvement.

Importantly, while the adjudicator accepted that parts of the refurbishment project addressed maintenance issues, they determined that the degree that the project moved outside the scope of maintenance could not be viewed as small or incidental.

In highlighting how significantly the work in the motion moved beyond just maintenance, the adjudicator referred to specific parts of the project.

The installation of acoustic fins was singled out as the clearest example of an improvement owing to the absence of any existing fins. The adjudicator held that even if the installation of the fins may be desirable to address noise problems in the area, there was nothing supporting (or even proposing) that having no fins amounted to a failure of the body corporate’s obligation to maintain the common property in good condition. The adjudicator further observed that the cost of the acoustic fins compared with the remainder of project was not insignificant – being 16 percent of the total cost of the project.

The committee submitted that even if the fins should have been classed as an improvement, the cost of the fins as a separate motion would have been within the ordinary resolution range anyway. The adjudicator acknowledged that this line of argument may have warranted further consideration if the fins were the only element of the project constituting an improvement.

However, it was determined that various components of the project could not properly be regarded as maintenance. When explaining why it is more fitting to deem these elements as improvements, the adjudicator noted that they ‘improve the use and functionality’ or the appearance of the area. Another key indicator of an improvement is adding something not yet in

existence, specifically adding in new bench seating where there was no seating originally or tiling a previously untiled wall.

The Presidents Lodge (2018) It was asserted that a motion passed by ordinary resolution to effect building repair work, roof restoration and painting of the building should be declared void.

As in the order discussed above, it was again argued that the works were not purely maintenance, but rather, comprised elements of improvements as well. However, the adjudicator dismissed the application, holding that the work was properly classed as maintenance and that an ordinary resolution was sufficient to pass the motion.

While we have come to view an improvement as synonymous with ‘change’, the adjudicator in this order interestingly observed that maintenance work often involves a change of some type for example, ‘the replacement of something with a modern equivalent’ which might also “enhance the appearance”. The adjudicator noted that these factors alone do not necessarily make the work an improvement under the legislation.

The adjudicator viewed the installation of metal support poles as maintenance work rather than an improvement. Although it required the addition of new poles where there were none previously, the adjudicator concentrated on the reason for the installation, namely, “to ensure the structural integrity of the existing pergola structures”. Similarly, the installation of new flashing to gable tile edges was held to be an obvious case of maintenance, as a report indicated that the gable ends were being impacted by water penetration previously.

The applicants also argued that a proposal to pressure clean, repair and paint the roof involved an improvement, as only the pointing needed repairs. The adjudicator again classed the work as maintenance, factoring in the age of the building and the fact that the roof had not been painted before.

When discussing the proposal to apply a sealer to balcony decks, the adjudicator made some useful observations (with reference to other relevant orders) about

INDUSTRY

a function of maintenance as being ‘preventative’ instead of waiting until something “falls out of condition’, essentially it involves keeping something ‘in a state which enables it to serve the purpose for which it exists”.

Admiralty Towers II (2019) The applicant sought an order that a motion passed by an ordinary resolution be declared void. The first ground submitted by the applicant (and the key one for the purposes of this article), was that the proposal for lift modernisation and upgrade works constituted an improvement, in which case a special resolution was required for the motion to pass.

Citing other relevant orders, the adjudicator made the critical point that maintenance is not strictly limited to the idea of ‘like-for-like’ replacement, rather, maintenance can involve “a degree of increased benefit or improvement”. The main argument posed by the applicant supporting their characterisation of the work as an improvement was the change of the gear mechanism to a gearless system.

The adjudicator determined that this factor was not enough to stop the work being classed as maintenance, as it did not “substantially change the nature and use of the lifts” and was not “unduly directed to improving the value of the scheme”. Other differences identified by the applicant were deemed as incidental by the adjudicator.

Consequently, it was resolved that the lift works did not require a special resolution, as it was not an improvement.

We hope that the discussion of these recent orders provides some direction on those more complex questions. As these orders illustrate, it is by no means a black and white distinction between maintenance and improvements, various points may need to be weighed up in coming to a decision.

The body corporate must do its best to act reasonably when making decisions based on the circumstances of each situation.

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PERSON OF INTEREST

Gayle O’Sullivan:

Management rights: from peril to perfect

By Grantlee Kieza, Industry Reporter

This month Grantlee Kieza interviews industry leader, Gayle O’Sullivan…

Gayle O’Sullivan has had a fascinating career in management rights. She reveals she has experienced everything from economic peril to helping catch a crooked cop in a police sting!

You’ve had a great career in management rights but it got off to a rocky start?

Yes, it could have gone to disaster early. We purchased management rights as 80 percent silent partners at the Pacific Resort in Broadbeach in 2002. The people we purchased it with had 20 percent of the business and they were the working partners. They only lasted eight weeks before they threw their hands up and said we can’t do this.

I couldn’t live on site because I had three young children and I was based in Brisbane. All of a sudden it was sink or swim. I wasn’t prepared to lose all my money so we got some managers in, different managers, relief managers to try to help us, and we ended up getting through. I basically learned the business from them, but for a while it was a real shambles.

What were the most important lessons you took from that experience?

I reached out to a lot of people.

The Broadbeach tourism body were very helpful. Larry Maloney from South Pacific Plaza was very supportive and suggested I join ARAMA because of the library facility there. Networking with people from ARAMA, asking questions on everything and learning from scratch about the

Getting your full licence is a step that I suggest all management rights people take and not just stick to their letting agreement. business taught me a lot. Shaun is still an active member of ARAMA.

So, what attracted you to the industry in the first place? Did you have a background in accommodation?

No, I came from an insurance background. I grew up in

Brisbane but after Shaun and I married, we moved around quite a bit because of his work.

When we bought our first management rights in Broadbeach it was showing an 18 percent return. We thought it was a great idea and after we got the business up and running I fell in love with the industry, the focus on people and customer service.

How come?

They were a couple and they couldn’t work together.

They had no idea about living on site and how involved it could be, because running a property is a very demanding job. Some people think it’s a retirement job - it’s anything but. That couple actually broke up over it.

Where did that leave you and your husband Shaun?

We nearly lost everything. We now had an 80 percent share of this holiday letting business and no experience whatsoever in management rights.

We had a baby, a two-year old and an eight-year-old. Shaun is a captain with Jetstar so he was away working a lot of the time.

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Gayle with husband Shaun and sons Zachary, Bryce and Matthew

INDUSTRY

ResortNews | July 2021

Then you were involved in helping with a police sting?

working with, but I soon realised that I was doing all the work. So now I’ve got my full licence.

Getting your full licence is a step that I suggest all management rights people take and not just stick to their letting agreement.

This is because in most cases owners will prefer to give you the listing and you know the building better than anyone else.

We bought the management rights for our first off-the-plan development, the Miro apartments in Fortitude Valley. It was right at the start of the GFC in 2008 and it was hard to get up and running for a little while, so we had to do all sorts of things to try and fill it up. We converted a lot of apartments to short term by offering leasebacks and furnishing the apartments.

The Crime and Misconduct Commission became involved in an investigation over a corrupt policeman who was organising to stay at the Miro. The police had traced his calls and knew he had booked for the weekend, so they set up infrared cameras to catch him in the act of selling drugs.

That’s Hollywood stuff?

Yes. It was quite daunting at the time, no one was allowed to know, not even my manager.

They set up cameras everywhere and they caught him. I got a big bunch of flowers from the police for helping, as a reward.

You helped manage other properties, too?

Yes, I helped at the Astor apartments and then I went to the Abbey apartments, and I got into the corporate side of it which I really loved. I did a fair stint with Q Resorts and then after selling the Miro I got bored and I went to work for Devine, helping them as a client service representative renting apartments on their behalf for developers. I had a short stint at Oaks Hotels and Resorts and then as the Business Development Manager at Quest at the Story Bridge. Then I helped Metro ResortNews | July 2021

We try to run the Austin as a family business and a lot of people say they like renting here because of that family atmosphere. We get a lot of referrals; a lot of people from America such as medical students doing their final year studies. Most go back but then their friends will come over. We work for the apartment owners obviously, but we also want to work with the tenants to make sure they have a good experience.

Properties lease their apartments quickly at Madison Heights in Bowen Hills. I enjoyed that and in the meantime the management rights for the Austin Apartments in Grey Street, South Brisbane came up and I’ve been here since 2014.

I love the building; I love the location. It’s only a permanent letting building and even though my forte is short term we’ve kept it as permanent at this point given the Airbnb and COVID situations.

Your three sons have grown up in the business?

Because we got thrown in at the deep end when they were very young, they’ve learned the business inside and out. Bryce, the eldest, was only eight when we started. My middle son Matthew was doing vacuuming on weekends, then one day a bond cleaner didn’t turn up and Matthew got thrown into doing a bond

clean. He did a better job than the professionals! Now he’s a secondyear plumber and is going to come in very handy once he’s licenced.

My little one, Zachary, has been helping us with quite a few odd jobs and he’s just got a cadetship with Qantas so he’s starting there in August.

How many apartments do you look after at the Austin?

There are 138 in the building and we’ve got 116, we’re also selling some. Bryce has a couple of years’ experience with L.J. Hooker and he brought his selling skills here.

Bryce’s expertise with marketing has been a huge benefit. We’ve taken over the majority of the sales in the building because we have that rapport with the owners.

Back in the days when we had Pacific Resort at Broadbeach we had a salesperson we were

INDUSTRY

What advice do you have for someone starting out in the industry?

Put the effort in because it really does pay off in the end. You need to build a rapport with the owners, build that trust. You must also understand that it’s hard work and not a nine to five job. When I first started in the business I was still talking to owners at 11 o’clock at night. They would tell me to go to bed but if you love the business it shows. You cannot really turn off.

The best thing I ever did was make friends in the industry. Frank Higginson from Hynes Lawyers helped us with our first business, and he’s always been there by our side. He is very knowledgeable.

You must surround yourself with professionals for good advice.

I have been told that I’m a workhorse. However, it comes back to the fact that you get out what you put in.

15

INVEST IN MANAGEMENT RIGHTS FINEXIA DIRECT

ACCOMMODATION INCOME FUND Finexia (ASX:FNX) is pleased to invite Wholesale and Sophisticated Investors to participate in the Finexia Direct Accommodation Income Fund which will invest in a portfolio of resorts and apartment complexes initially located in Queensland.

Through its geographic and product diversity, the Fund aims to provide Investors with a sustainable and stable monthly income with the potential for a significant liquidity event as the portfolio grows and matures.

An accommodation business that is domestically focused offering hotels, resorts, serviced and permanent residential apartments.

Strong history of revenue generation in a ‘cash’ business with FY22 normalised forecasts based on very modest FY19 uplifts and at current occupancy and room rate levels.

Portfolio initially consists of Four Properties; 2 x Short Stay Properties focussed on the Holiday, Leisure and Convention markets. Located in Broadbeach on the Gold Coast and Noosa on the Sunshine Coast capturing prime Australian holiday destinations.

2 x Permanent Properties located in outer Brisbane taking advantage of vacancy rates less than 1% on average.

The Fund provides liquidity and investors can redeem their investment twice per annum (conditions apply).

The mangers have been in the industry for more than 20 years.

Management contracts with bodies corporate average 22 years.

They currently have 88% of the maximum allowable term on the agreements. The business does not own the hotels, resorts or apartment properties themselves instead it owns the contractual rights to operate the business on behalf of the apartment owners and bodies corporate.

Business is now achieving outstanding future bookings and performance as COVID and domestic economy provides strong tail winds.

The portfolio is focused on the domestic guest market. Around 90% of guests are from Australia and NZ. Strong growth story with a further portfolio of assets under control and ready to include in the Fund now or after commencement.

Timing depends on initial subscription levels.

12%-14% p.a.* Forecast Return net of fees

Monthly Distributions

Regular Redemption Available**

Experienced Management

WWW.FINEXIA.COM.AU/STAYCO Investor Returns

Forecast distributions of 12% - 14% net p.a. paid monthly in year one*.

Liquidity

Investors may request to realise their investment and redeem their units twice per annum. The Fund will seek to maintain sufficient liquidity to allow units to be purchased, redeemed, and transferred upon request.

Investment Structure

Investment Structure: Open Ended Pooled Unit Trust Investment Amount: Minimum investment amount $10,000 Borrowing: The initial funding structure will be based on an anticipated trust gearing level of 50% - 65% LVR at settlement while maintaining a property Interest Cover Ratio of 5+ times in year one.

Equity Required: The Fund is seeking to raise at least $13m of equity.

Eligibility: Investment open to Wholesale & Sophisticated investors only. Contact us to see if you qualify.

Key Dates

Targeted completion of the initial portfolio is anticipated to be 31st July 2021.

The Key Dates will be detailed in full in the Information Memorandum.

www.finexia.com.au/stayco * Forecast Returns and Distributions are subject to a number of assumptions that are detailed in the Information Memorandum. You should read a copy of the Information Memorandum before deciding to invest. Returns are quoted post management fees. **Redemptions are subject to approval and will depend upon the liquidity at that time.

This investment is only available to Wholesale and Sophisticated investors as defined by the Corporations Act 2001 (Cth). To access this offer you must provide Finexia with a Sophisticated Investor form, certified by your accountant confirming that you have (i) Net Assets of at least $2.5 million; or (ii) Gross income of at least $250,000 per year for the last two financial years. As a wholesale client, you may need to make your own evaluation of the investment opportunity and without being provided disclosure documents such as a Prospectus or Product Disclosure Statement (PDS). The information is general in nature and does not constitute financial advice. FINEXIA has not taken into consideration the objectives, financial situation or needs of any investor.

LEGAL EASE

Victorian term limitation update As we reported in early 2020 the Victorian government introduced legislation which sought to limit the term of management rights put in place by the developer to a maximum term of three years.

Whilst seemingly designed to overcome unduly onerous agreements put in place by developers, predominantly with strata managers and infrastructure service providers for substantial and often grossly inflated fees, the proposed legislation also covered caretaking and letting agreements.

Rather than follow the position in Queensland where there are strict disclosure requirements, specific contemplation of a developer establishing the management rights and a procedure for the review of the remuneration and the duties in caretaking agreement, the Victorian legislation sought to impose a blanket term limitation of three years.

The new laws were originally set to commence early 2020 but as a consequence of intense lobbying by industry representatives including Mahoneys and ARAMA and the intervention of Covid-19, the legislation did not pass through parliament until early 2021.

Fortunately, the proposed retrospective commencement on January 1, 2021, was removed

18

the section will be treated as covering contracts with an owners corporation that are entered into at a time when the developer controls the owners corporation. In other words, the section will catch service contracts and letting agreements entered into at the inaugural general meeting where such contracts benefit the developer.

John Mahoney, Partner, Mahoneys

and at the time of writing the legislation is yet to be proclaimed so has not yet commenced.

However, it will commence no later than December 1, 2021.

As reported previously the legislation is poorly worded and arguably does not achieve the outcome sought but it is likely that lawyers and others will assume that the new laws will be interpreted by VCAT to have their desired effect. The legislation will continue to have a huge impact on developers selling management rights off the plan.

In relation to management rights the relevant section provides that if the developer enters into a contract (other than an owners corporation management contract) which relates to the owners corporation and benefits the developer, any term of that contract must not exceed three years.

To achieve the objective of the legislation it is likely that

It is also likely that “benefits” will be given a very wide meaning and will extend to contracts with entities in which the developer has any type of financial interest including where the developer receives a benefit from causing the owners corporation to enter into such contracts – exactly the case in an off the plan management rights agreement.

Whilst the language used is open to other interpretations which do not have the dramatic consequences that this article suggests, experience to date shows that financiers and potential buyers of management rights off the plan are treating the legislation to limit the term of new management rights agreements to three years.

One of the concessions we gained from the government during our intense lobbying was an exemption for caretaking and letting agreements (and related licenses for the use of common property) for a hotel, resort or services apartment complex. Such agreements are exempt from the

MANAGEMENT

three-year term limitation if the agreement “complies with the prescribed requirements (if any)”.

These “prescribed requirements” are to be set out in the regulations to the act, but the regulations are yet to be enacted. It is expected that they will contain certain protections for owners corporations to ensure that the terms of those agreements do not adversely impact on the owners corporation. Given that the legislation is yet to commence and we are yet to see how the regulations will deal with caretaking and letting agreements in hotels, resorts and serviced apartment complexes, things are still very much up in the air.

However, where it can be said with certainty that within the next couple of months that a new complex will be completed, the owners corporation formed and the inaugural general meeting at which new management rights agreements are approved and entered into, a person buying the rights off the plan ought be confident that the term will not be limited to three years.

However, as we get closer to the likely commencement date of December 1, 2021, the level of uncertainty for all buyers off the plan will increase. For buyers of off the plan rights for hotels, resorts and serviced apartments, only when we see the regulations and how they apply will that uncertainty subside.

ResortNews | July 2021

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BY ALL ACCOUNTS

Are you ready for the tax man?

Happy new financial year!

concerns regarding the security of taxpayer’s highly confidential financial data being transmitted back and forth overseas.

Every year from July 1 all Australian resident taxpayers need to provide the deputy commissioner of taxation with a compliant tax return declaring all amounts of assessable income and the associated expenses they have incurred in earning this income.

For some this is quite a simple affair but for most trading within the accommodation industry it can be more complicated.

More often than not an entity tax return i.e., trust, company or partnership must be completed as well, as at least one individual tax return.

I will now go through a stepped approach that should be useful in collating the required information and ensuring you meet your taxation reporting obligations.

Step one, due date for lodgement Find out from your accountant or tax agent what your due date for lodgement is. This due date will range from October 31 to May 17 the following year. For most businesses lodging with an accountant their due date will be May 17.

Step two, obtain a checklist or information request Contact your accountant

Agreeing on the time frame for completion is even more important if you require your tax returns for a finance application, an annual bank review or are part of a corporate agent partnership.

Jonathan Hanaghan Director, Jonathan Grant Accountants

for this. This may be a standard checklist or a more customised and detailed list of the information required.

Step three, agree on timing and logistics Discuss how, when and where your work will be processed.

Your accountant should have a standard processing timeframe.

You may also want to confirm that your work will be completed in your accountant’s office and not via an offshore processing office. There is a growing industry trend for Australian accounting firms to outsource accounting and tax work to cheaper overseas countries.

This is fine as long as you (the client) are aware that your accountant is doing this and are comfortable with it. I personally do not agree with this new trend as I believe in protecting and creating local jobs for Australian accountants and I have grave

QLD - NSW - VIC - WA

Step four, ensure your bookkeeping software program is accurately reconciled to June 30 Whether you use MYOB, QuickBooks, Xero or another program you need to ensure that your data is accurately reconciled to June 30 of the relevant financial year. This is important as it provides the starting point for your accountant to begin processing your work. Those that have their books kept internally by their accountant’s in-house bookkeeping services don’t need to worry about this step.

Step five, collate supporting information as per your checklist or information request This may require getting copies of bank and loan statements, purchase and sale contracts for assets bought and sold (including property, shares, motor vehicles etc.). You may need to contact your bank, solicitor, stockbroker, or real estate agent.

This can take time, so it is best to get onto this as soon as possible.

Step six, make sure all ATO payments have been made and are up to date Ensure that any outstanding amounts of income tax, GST or PAYG have been paid. If this is not the case you will need to advise your accountant.

Step seven, forward all information to your accountant This involves sending all

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MANAGEMENT

requested information to your accountant together with any other written instructions including details to who is best to deal with any queries that may arise.

At this point you may also be required to sign an engagement letter or similar document outlining both party’s roles and responsibilities. If you are unsure on any matter, contact your accountant before sending. It is better to not start an engagement until all relevant information is with your accountant.

Step eight, dealing with queries Make yourself available via phone or email to deal with any queries from your accountant.

Most taxation compliance jobs have transactions that require clarification. It is best to deal with them as quickly as possible.

Step nine, debrief This can involve a meeting or a phone call to discuss the resultant financial statements and tax returns. It is important that each client understands the contents of the tax returns as each taxpayer is ultimately responsible for the contents of their own tax return.

This is also a good opportunity to discuss any other issues or questions you may have i.e., changing software programs or even selling the business.

In summary the taxation system in Australia is based on selfassessment so each taxpayer needs to take care when preparing their tax returns.

This all starts with the quality of the information supplied to your accountant and the planning that goes into the process.

A smooth engagement with minimal or no queries will always result in a much better outcome for client and accountant.

ResortNews | July 2021

MOTEL MARKET

If I was 10 years younger, has never been a phrase I have felt the need to use in the past.

However, as time goes on I have found that one can find themselves thinking it, and it is an easy trap to fall into. It is a very common phrase that people often use simply as an excuse.

A reason to talk themselves out of doing something that they want to, or at least believed at some stage that they wanted to.

I think in many ways this phrase is often made, not necessarily as an excuse (because there is always a reason behind an excuse), but it is probably more about procrastination.

Procrastination is often the worst enemy in holding one back from achieving more than they could, in any given situation, whether it be in their business/ employment, personal life, sport, recreation, and so on.

I am loathed to bring it up, but Covid-19 has in many ways changed behaviours, including in some part, pushing people towards removing some of this procrastination. The easy example of caravan sales comes to mind. The sale of caravans has gone through the roof since mid-2020. I think a big reason for this is that prior to, many people had the want to buy a caravan and get out to ResortNews | July 2021

the so many good reasons.

Andrew Morgan, Queensland Tourism and Hospitality Brokers

see the country, but there was that procrastination factor.

That thought or excuse in one’s head that, “perhaps we should have done it ten years ago, well, things have changed and let’s just do it”. As a consequence, the excuse goes out the window and the decision is made. A decision that may not have been made before now, using caravan sales as an indicator.

The same goes for investing in the hospitality industry, which includes accommodation. The many good reasons for investing in the accommodation industry are commonly discussed. The reason many hold back, wait, or procrastinate, is often a simple one of not taking the leap of faith.

Finding excuses not to move forward and give it a go, such as being 10 years younger, or maybe next year. I think sadly it can be allowed to take precedence over

We consider these good reasons for buying into the accommodation industry based on things such as the industry itself, the strength of the accommodation market, wider economic factors, financial, family, personal considerations, and many others. The opening line can be considered in many ways, an easy or convenient excuse not to act, or invest in this case, for reasons such as, having too many aches and pains, the lack of motivation, too old, etc.

It is an easy way out in one’s mind for not making a positive decision when all the facts point toward it being a great idea. Opportunities lost are always recalled after the fact and filed under “hindsight” in months or years down the track and are always regretted.

“Yeah, I looked at buying a motel years ago, wish I did”.

Over the last twelve months it would appear that many have taken this throwaway line and done exactly that. They have asked themselves the question, what are we waiting for. Let’s buy that caravan, let’s buy that house, or let’s buy our own business and do something for ourselves for once. “Let’s give it a go and build a motel business into something better, something more than what it is now”.

MANAGEMENT

I have been very fortunate to have worked with some fantastic people over the years who have bought and sold motels and worked as much or as little as they wanted to as opportunities presented themselves. A number who are not so young anymore (let’s not put an age out there), continue to buy and sell accommodation businesses, and are great examples that you are never too old. They never stop looking for the next business challenge to work on.

They enjoy the opportunity and challenge and may not work the businesses on a day-to-day basis anymore, but they are still heavily involved. These people immediately come to mind when anyone much younger than them says to me “if I was 10 years younger, I would buy it”.

Buying one’s first motel is the biggest step. In many cases it is a major change of life decision, in both career and lifestyle.

Procrastinating about it, not taking the step, then regretting it later down the track is never a good feeling, no matter what it is one’s talking about. Time creeps up on us very quickly. Therefore, do not put these things off any longer! Procrastinating about it now will ultimately drag on for another 10 years.

I am not sure if it’s still around or not, but to use the old Nike brand motto, “Just Do It!”

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THINKING MR

Fiercely independent team players? That’s us!

The term ‘Chinese Wall’ as it is used in the business world, describes a virtual barrier intended to block the exchange of information between departments or businesses if it might result in business activities that are ethically or legally questionable.

A recent conversation with a client got me thinking. The person, who got my name from an agent, made a comment to the effect that all the people he had been recommended to use were working together. The inference was a suspicion that the industry specialists were somehow plotting together to bring about a settled purchase come hell or high water. The comment reflected a concern that the client’s best interests were being subjugated by the self-interest of his advisors.

While a detailed discussion around the entire purchase

Unscrupulous parties in any of the professions don’t last long and I think buyers can gain a level of comfort that nobody wants them to fail

Mike Phipps, Director, Mike Phipps Finance

process put my client’s concerns to rest, I think it’s worthwhile exploring the dynamics that present themselves when specialist industries have a virtual closed shop of recognised expert professionals. Of course, I’m not referring to closed shop in any collusive sense, but simply stating the obvious.

Specialists in the disciplines associated with acquiring these businesses gravitate toward that specialisation over time, prove themselves as trustworthy and reliable, are recognised by lenders and assume a preferred

position as service providers. In this regard the dynamic is little different to that which exists between general practitioners and specialists within, say, the medical profession. For first time entrants to the industry purchasers often bring with them relationships of long standing with their accountant, lawyer, bank, realtor and associated advisors. The need to engage new relationships must be quite confronting and I think it is incumbent on all of us to explain our place in the process and address any concerns that the buyer may have.

In this context I’d argue that the ‘Chinese Wall’ concept in business can be extended to include intertwined relationships between parties to a transaction.

Certainly, in transactions associated with specialised assets like management rights and motels there exists the real risks that the ‘Chinese Wall’ concept was designed to mitigate. In my profession we are legally obligated to act in the best interests of the client and to declare any conflict of interest.

This means that regardless of who has recommended us we are compelled to give the client accurate advice. If that advice means a transaction cannot proceed then so be it. I believe the same is true of bankers, accountants and lawyers.

Let’s take a look at the individual roles involved in the transaction and what buyers should expect from those who make up their team…

Photo by Peggy Anke on Unsplash

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MANAGEMENT

Often the first person the buyer will meet is the agent. It’s important to be mindful that the agent works for the vendor. As such the primary obligation the agent carries is to achieve the best result for his or her client.

That said I think it’s important to appreciate that, as a buyer, working with a professional and savvy agent brings enormous benefits. An industry expert agent will present accurate information from the outset and potentially save the buyer much angst (and money) by ensuring ResortNews | July 2021

no unpleasant surprises during the purchase process.

A specialist agent will also be experienced in assisting with negotiations both at the outset and on the way through the transaction. The give and take that is an essential element in any purchase requires careful and sensitive management and the very best agents do this well.

The agent will often recommend experts in law, accounting and finance as part of the initial interactions with a potential buyer. These parties will be fiercely independent and compelled by both professional standards and the law to act in the best interests of the buyer.

Unlike, for example, motor dealers, where the salesperson, the service manager and finance and insurance person work in the same business, the sales function in management rights and motels is entirely disassociated from the advisory function provided to the buyer.

This is as it should be and ensures no conflict of interest.

Indeed, the banking royal commission looked at so called ‘point of sale’ finance in 2019

and while laws are yet to be enacted we expect a review of the situation in 2022. The commissioner, quite rightly, had concerns regarding client best interests and conflicts of interest in situations where the business selling a good or service also provided services critical to the completion of that transaction.

All of this should put buyer’s minds at ease in respect of professional referrals regardless of which side of the transaction the referral comes from. In fact, for buyers, I believe the more confronting situation would be advice to avoid a particular industry expert. Such advice raises the question of why the referring party might be attempting to keep a party from that advice.

In any event, let’s take a brief look at the individual roles of finance, accounting and law…

After the agent, we are generally the next port of call for new buyers. Getting pre-qualified (not pre-approved, there’s no such thing) is a critical step and one that’s essential to ensure the buyer doesn’t waste a stack of their time (and the agent’s). We

collect information, provide the buyer with feedback on how the asset class works and advise a likely maximum purchase capacity. Many buyers ask for this assessment in writing and many share that information with the agent. I think that’s a good thing. Proven capacity to execute a transaction makes the buyer a more credible party and certainly assists the agent when presenting an offer.

The buyer will have subsequent discussions with industry lawyers and accountants and hopefully take on board the advice they receive. Until a live transaction is afoot there’s not a hell of lot the lawyer or accountant can do except offer general advice. Once a business has been identified and negotiations commence the lawyer and accountant can add significant value by anticipating any likely hurdles and having those issues on the table from the outset. As with the finance function the lawyer and accountant are obligated to raise any identified concerns from the outset and ensure the best interests of the buyer are adhered to.

To put it bluntly, it’s a team effort.

We encourage buyers to build their team, trust their team and understand what each team member brings to the game.

Now, here’s where I contradict myself. The agent should form part of your team. Yes, they work for the vendor but, in my experience, the agent can add tremendous value for a buyer.

The previously mentioned closed shop actually works in the buyers favour in this regard.

Unscrupulous parties in any of the professions don’t last long and I think buyers can gain a level of comfort that nobody wants them to fail. We all make our living in this industry and buyers going broke would most certainly be a very bad look.

I’ve always liked this quote. It kinda confirms my suspicion that if you focus on your client your own success takes care of itself.

“It is literally true that you can succeed best and quickest by helping others to succeed.” – Napolean Hill

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

TheManagement Rights Lawyers BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

DISPUTE RESOLUTION

Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business?

We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry.

Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.

ARAMA Service Provider of the year 2019 & 2020

www.mahoneys.com.au ResortNews | July 2021

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

MANAGEMENT

23

EMPLOYMENT

Significant changes to casual employment arrangements Recent amendments to the Federal Fair Work Act 2009 have changed the workplace entitlements and obligations for casual employees. The changes came into effect on March 27, 2021.

There are three broad changes to the Fair Work Act: •

A new definition of casual employment;

•

A new pathway for casual employees to become full-time or part-time (permanent); and

•

A “casual employment information statement”.

Definition of casual employment From March 27, 2021, a person is a casual employee if they accept a job offer from an employer knowing that there is no firm advance commitment to continuing and indefinite work according to an agreed pattern of work.

Once employed as a casual, an employee will continue to be a casual employee until they: •

•

•

become a permanent employee through what is termed ‘casual conversion’; are offered and accept full-time or part-time employment; or stop being employed by the employer.

For existing employees, an employee will be deemed a casual employee if they met the new definition of casual employee when they were originally employed in their initial employment offer (ie. their initial contract of employment).

24

Amy McKee, Partner, Mahoneys

Casual conversion Employers’ obligations to offer casual conversion The National Employment Standards now include an entitlement for a casual employee to become a full-time or parttime (permanent) employee in certain circumstances. This is known as casual conversion.

Different rules apply to small business employers (employers with less than 15 employees) than to employers who have 15 or more employees.

Except for small business employers, employers are required to offer casual employees who have worked in their employ for 12 months the option to convert to full-time or part-time (permanent) if the employee: •

•

has worked a regular pattern of hours on an ongoing basis for at least the last six months; and could continue those hours as a full-time or part-time (permanent) without significant change to their hours of work unless the employer has reasonable grounds not to make an offer.

The offer must be made within 21 days of the end of the employee’s 12-month anniversary. The amount of hours that the employee has worked over the previous six

Photo by quan le on Unsplash

hours as a full-time or parttime (permanent) without significant change to their hours of work, and none of the following must apply in the previous six months:

months will determine if the offer must be for full-time or part-time (permanent) basis.

Employees right to request casual conversion Eligible casual employees (except if they are employed by a small business employer) can also make a request to convert to permanent employment from 21 days after their 12-month anniversary.

An eligible casual employee who works for a small business employer can make a request at any time on or after their 12-month anniversary.

To be an eligible casual employee in either circumstance the casual employee must: •

•

have been employed by the employer for at least 12 months; have worked a regular pattern of hours on an ongoing basis for at least the last six months; and be able to continue those

MANAGEMENT

•

the employee must not have refused an offer to convert to permanent employment;

•

the employer has advised in writing that an offer of casual conversion will not be made as there are reasonable ground;

•

the employer has refused another request for casual conversion based on reasonable grounds;

•

that an offer of casual conversion will not be made as there are reasonable ground.

An employer is required to respond to that request by writing to the employee within 21 days. If the employer refuses the request, they must tell the employee their reasons why in their written response.

ResortNews | July 2021

Employers cannot refuse a request unless they have consulted the employee and have reasonable grounds to refuse the request.

Reasonable grounds for refusal of casual conversion Reasonable grounds for not making an offer include if in the next 12 months the employee’s position will not exist, the hours will significantly reduce, or the days and times of work will significantly change and cannot be accommodated within the employee’s days or times for work.

If an offer is not being made the employer must still write to the employee within 21 days of the employee’s 12-month anniversary explaining that no offer will be made along with the reasons why.

Existing casual employees Except for small business employers, employers must assess whether any of their existing casual employees who were employed prior to March 27, 2021, are eligible to convert to permanent employment.

Within 21 days of the assessment occurring the employer needs to make a written offer to convert employment or an explanation as to why that offer will not be made. The assessments and any explanation as to why the offer will not be made must occur by September 27, 2021.

Employees must respond to any offer within 21 days of receiving the offer. If no response is given an employee is deemed to refuse the offer.

Small business employers are not required to make an offer to convert their casual employees to permanent employment.

Casual employment information statement (CEIS) A CEIS is a statement prepared by the ombudsmen and published in the Government Gazette. The CEIS has information about: •

the definition of a casual employee;

•

when an employer is and is not required to offer casual conversion;

•

when a casual employee can request casual conversion;

•

casual conversion entitlements; and

•

the role of the Fair Work Commission to deal with disputes about casual conversion.

The CEIS can be downloaded from the Fair Work website.

There have been two versions of the form published to date.

Employers need to ensure they are using the most current form published May 20, 2021.

A CEIS must be provided to each new casual employee before or as soon as possible after the employee starts their new job.

Small business employers are required to give their existing casual employees a copy of the CEIS as soon as possible after March 27, 2021. Other employers are required to give their existing casual employees a copy of the CEIS as soon as possible after September 27, 2021.

What does this mean for management rights operators?

All management rights operators will need to consider on what basis they employed their staff

in the past and how they will make offers for employment for the future. If an operator wishes to engage an employee on a casual basis, then it must be made abundantly clear from the outset and that offer must be accepted by the employee.

If an operator has any casual employees, then the manager must ensure that a CEIS is provided to all new and current casual employees.

If an operator has less than 15 staff, the operator is not required to offer casual conversion to its eligible casual employees, however, if an employee has been employed for 12 months the employee may ask for conversion. In that case the operator must consider and respond within 21 days.

If an operator has 15 staff or more, the operator must offer casual conversion to its eligible staff or give a written explanation as to why such an offer is not being made. The operator must ensure that assessments and offers have occurred by September this year.

­

ResortNews | July 2021

MANAGEMENT

25

BUILDING RELATIONSHIPS

You can be a successful

sales agent for your complex In January’s Resort News I wrote about residential sales within your complex.

Here’s a quick recap: I wrote about the positive contribution managers make during the sales process even when receiving no compensation or payment. I acknowledged that buyers approach you for information due to the agent having an extreme lack of knowledge about the complex.

This month I wanted to talk about residential sales again, this time to give you a gentle/firm nudge of encouragement into becoming the ‘complex sales agent’.

Let me be straight up, in no way would I call myself an expert in real estate, but I can say that I am heavily involved in residential

What a great time to be a real estate agent!

Kelley Rigby, Managing Director, Letts Rebuild

sales within management rights throughout Queensland and evidence is showing we are in a booming market.

Buyers are flocking to purchase property and are willing to go over and above our sellers’ expectations. What a great time to be a real estate agent!

Management Rights Solicitors Management Rights Buying (existing businesses and off the plan), selling, renewals, new agreements and dispute resolution

Hotels & Motels Franchised, leasehold or freehold Property All aspects of commercial and residential property

We have offices conveniently located in Brisbane and the Sunshine Coast.

(07) 3226 3944 Matthew Russell,

Vanessa Sciortino,

mjr@nicholsons.com.au

vas@nicholsons.com.au

Partner

Special Counsel

www.nicholsons.com.au 26

The word on the street from those pesky outside agents and I do still have contact with a few of them, purely to source as much information as I can (I hope none of them read this, if so please retract my previous sentence).

They are telling me what I already know, that selling a property is as easy as selling candy to kids.

What I did not know is that it is hard for them to get properties to sell, agents are finding it extremely difficult to get their foot in the door. A phenomenally successful principal at a large agency recently told me “a monkey, a really slow monkey could sell in this market, they just need to find the stock”.

Now I am going to state the obvious, as the experts of your complex you are in the prime position to know when an owner is thinking of selling, sometimes even being their first point of call. I do not even know how to express the advantage you have in today’s market. If the hardest part of selling right now is getting the stock/listing and you are getting this handed to you, do you really want to hand ball it to some agent or would you rather grab that ball and kick goals?

I hear the line “I am not really a real estate agent” from onsite managers more than I would like to say. However, you must remember that although you wear many hats, one of them is 100 percent that of a real estate agent and you wear it a hell of a lot better than 90 percent of others in the field. You are knowledgeable, have a vested interest in achieving

MANAGEMENT

the best result, you have relationships with tenants and owners, and you are on site 24/7 to do inspections. There is a long list of reasons why you are by far the better agent for your owners.

Money advantages aside, being the complex sales agent gives you the opportunity to ensure the right buyer is purchasing in your complex. I do not mean “only to investors” (although we do try) I also mean buyers like John and Kathy who have three grown up children all with a vehicle wanting to buy a one car garage townhouse. They will be using the garage as a bedroom and leaving their cars in visitor spots, which is against the complex bylaws. You as the knowledgeable agent would be able to inform them of the parking situation so they are aware of all the facts, would an outside agent do this?

Not only does this ensure you have the right buyer, but it also ensures that the people buying it are not purchasing something that does not suit their needs.

If you are reading this and thinking “When am I going to find time to do sales?” The answer is simple… get help!

There are many companies and people that can help guide and train you through the process, all you need to do is ask. The benefits to simply giving it a go far out way the negatives, so put that sales hat on and you may surprise yourself on how successful you can be.

Remember, be kind, be honest, be grateful and you will never lose.

ResortNews | July 2021

PRIVATE CLOUD

Time for a great nights’ sleep and extra $$$ in your pocket

By Sylvia Johnston, HiRum Software Solutions and Robert Marsden, Addictive Technology Solutions

The actual dollar savings are also substantial. On-premise computing can cost as much as $3,000 per year, per user, whereas a private cloud should cost approximately one-third of this; improving the bottom line of your business whilst improving the end solution.

I am certain every savvy business owner is constantly on the lookout for ways to save costs in their business but without increasing their risks or losing productivity.

Most hear that moving to the “Cloud’ is the answer, without fully understanding what cloud truly is. Many don’t understand what it really brings to their business and how clouds themselves vary dramatically, in the same way, real clouds do. It’s time to demystify the cloud and highlight the only safe cloud solution you can introduce to your business, private cloud.

Cloud is simply a term used to indicate that the software you use lives somewhere other than on a computer in your office. Essentially it lives on someone else’s computer, in a data centre, somewhere in the world. This computer may in turn be managed by a completely different company to the company you have engaged to provide the relevant product and services.

This means you really don’t know where your critical business data lives, who looks after it, who keeps it secure and who could possibly gain access to it without your knowledge.

A “Private Cloud” eliminates all of this uncertainty and enables you to benefit from the cost savings it brings, whilst ResortNews | July 2021

providing an even higher level of security over any other cloud solution on the market today.

Moving to a private cloud reduces most of the technical cost of having efficient hardware in your office to run your daily operations. It is fully maintained by the vendor, who also takes care of all the maintenance for you. They install the latest critical software updates, include the best anti-virus on the market, implement firewalls for you as an extra line of defence and ensure your back-ups are completed daily. They also provide a secure connection for you to access your data and system from any device, anywhere, whenever you need to.

For business owners the benefits of moving to a private cloud are immeasurable. Operating as if everything is on-site wherever you are, whilst having access to the best IT professionals whose core business is data protection, is invaluable, especially to those in the hospitality industry.

Knowing someone else is looking after all the security needed to keep your PC clean from viruses and malware, ensures that all backups are also protected to a completely different level. Sleepless nights become a thing of the past and the high-ticket cost when your own computer decides to have a melt-down disappears forever.

MANAGEMENT

It’s important not to confuse private cloud with self-promoted cloud or browser based software solutions, especially in the hospitality space. These should be avoided at all costs as they in essence place your data in a giant cloud along with many other customers.

Your data shares space with other businesses, increasing the attractiveness to online hackers and phishers. Especially if you are tied into one specific browser such as Google Cloud is just one example.

If you engage with a solution that has no choice of where it can reside, essentially you are reliant on that platform operating as expected. If it goes down for any reason, then you have nowhere to turn until it comes back online, rather like a power cut to your electricity supply. In the meantime, customer service suffers, as does your business, through no fault of your own.

Private cloud ensures business continuity no matter what, priceless for any business and the only option if you truly want to reduce your costs whilst simultaneously improving your security, operations and business mobility.

27

GOOD GOVERNANCE

Safe work at height:

WHS rules for caretaking agreements Not a month goes by that someone doesn’t contact our office to get help on a workplace health and safety question, and it’s no wonder, given the 1,500 plus pages of act, regulation and associated codes of practice.

Working at height and the requirements therein are key among these questions.

Caretaking duties that may require working at height Common duties in almost every caretaking agreement include tasks such, which are likely to require some form of work-at-height, such as: changing light globes, trimming hedges, removing dead palm fronds, pruning trees, attending to garden beds raised within terraces or planter boxes, dusting horizontal surfaces, cleaning pipework in the basement, cleaning windows, de-webbing (removing cobwebs) and so on…

These kinds of duties (on face value) appear no different to the type of housework you might need to do around your own home in the suburbs from time-to-time, so why does this

28

A caretaking services provider under a caretaking agreement within a strata scheme is most definitely defined as a PCBU and the body corporate or owner’s corporation are also most likely defined as a PCBU.

Lynda Kypriadakis, Diverse FMX

sort of work under a caretaking agreement in a residential strata complex take on a different slant when it comes to workplace health and safety?

Because the common property of a strata scheme is considered a workplace when work is occurring on it.

Your private home is not.

The legislation The Work Health and Safety Act (WHS act) and Work Health and Safety Regulations (WHS regs) is easily downloaded for free on the internet and defines a liable party as a person conducting a business or undertaking or (PCBU). If you are a PCBU then you have a primary duty of care and obligations under the act, regulations, and associated codes of practice.

Note: Even if the strata scheme does not believe it is a PCBU, it is important to understand that should an adverse event occur in the common property workplace, an ensuing investigation may treat the body corporate or owners corporation as if they were a PCBU, so it is best to have the necessary records and evidence of diligence in safe work management in place beforehand – even if you don’t believe you are a PCBU. The best way to determine if your corporation or entity (or you as an individual) is a PCBU under the act is to get legal advice.

Your lawyer will take the time to review the details of your entity, any workplace agreement(s) you are bound by and provide sitespecific legal advice on PCBU status. You will also need to procure a site-specific WHS Plan and ensure it is reviewed annually and stakeholders inducted.

Duties of the PCBU The fundamental duty of each PCBU (apart from holding relevant insurance and

MANAGEMENT

qualifications for their work!) is to demonstrate a primary duty of care, which starts with the development and implementation a “documented safe system of work”, commonly known as a WHS Plan, or Safe Work Plan or WHS Compliance Management Plan (refer to ABMA Building Management Code for more details on residential strata WHS requirements). The documented safe system of work will provide an audit trail of vigilance in risk management in the workplace, which will be asked to be produced should an investigation or audit occur.

The common property of a strata scheme becomes a “workplace” whenever work is occurring on it, so how do those that have control and influence over the common property workplace implement a plan to demonstrate a positive safety culture?

The best way to demonstrate safe work practices and a positive safety culture is through record keeping via a WHS Compliance Management Plan.

Risk management Managing risks in the workplace is a duty for each individual PCBU. Understanding what these risk management duties are may be supported via the various WHS codes of practise, also ResortNews | July 2021

available for free on the internet.

Codes of practice assist workers and those who have influence over a workplace in figuring out how to do a higher-risk activity safely. In subject of working at height, the PCBU may refer to the Code of Practice for managing the risk of falls at the workplace.

Once the worker (i.e., the caretaker and/or its employee(s), who is a PCBU) has reviewed the Code of Practice he/she can undertake their own risk assessment to determine if they are competent to do the work-at-height or not.

Risk assessment comes down to responsible assessment of risk, evaluation of competency (to do the work safely) and implementation of safe work procedures, keeping records, etc.

Caretaking duties If the agreement has a duty to change light globes and this duty requires work from a ladder, the step-by-step process for the caretaker in terms of risk management under the WHS Act is: 1.

Read and understand the duty (get legal advice and consult with your insurer if not sure whether you have to do the work-at-height)

2.

Read and understand the WHS Code of Practice for managing the risk of falls at the workplace (get consultant advice if not sure how to do the higher-risk task safely)

3.

4.

5.

Complete a “Pre-Start Risk Assessment” to evaluate whether: higher-risk activities are necessary to complete the works; and the caretaker holds the necessary skills and/ or equipment to complete the works safely Develop a Safe Work Method Statement (SWMS) for how the caretaker intends to undertake the works safely (get approved by a WHS consultant if not sure) Undertake the works, or engage someone with the necessary skills, equipment, and insurance to complete the works safely.

This systematic approach to work-at-height needs to be ResortNews | July 2021

applied to any duty that requires the caretaker to do work on an elevated work platform (EWP).

Note: There is no minimum fall height restriction noted in the WHS Code of Practice for managing the risk of falls in the workplace. Any work from an elevated platform (e.g., stepladder, extension ladder, scissor lift, boom lift, rope access abseils, crate and so on) or any workplace above ground (e.g., raised planterbox edge, roof, step bank or sloping embankment) would be considered higher-risk work.

The code of practice says you must only use or work from a ladder if you have been trained in inspecting, testing, settingup and using ladders safely.

Determination So, to determine whether work-at-height is a duty under a caretaking agreement check three things: 1.

Prescribed duty, is there a specific or detailed duty that clearly states that workat-height must be done by the caretaker? For example, replace failed light globes on common property; or trim hedges and maintain shape.

If there is a prescribed duty within the agreement, then the caretaker must deliver the duty, either in person or via their own engaged contractor that will do the duty for the caretaker.

2.

Insurance: make sure the caretaker’s public liability insurance covers all the duties, including duties undertaken at height.

3.

Risk assessment: follow the step-by-step process to determine whether you can deliver the work-atheight (i.e., do you possess the competency to do so).

If not, either do training to build capability or delegate the task to someone who has the capability.

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SWIMMING POOL SUPPLIES/REPAIRS

Note: If there is no specifically worded or prescribed duty under the caretaking agreement that compels the caretaker to do work-at-height, then the duty would fall to the specialist contractors exemption under the agreement. Get legal advice to determine this!

MANAGEMENT

The Mattress Company Green Finance Group Kudos Universal Pty Ltd EBM Insurance & Risk ANP Painting Contractors Higgins Coatings Pty Ltd Hirise Maintenance Noosa Pool & Spa Centre

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

29

Direct is not always best:

The benefits of working with OTAs For some, what I am about to cover may seem somewhat contentious.

For those who know me, this will not come as a surprise, as I care about hoteliers and their bottom line more than I care about the ‘direct is best’ approach.

Recently, I have read about the increasing rumblings of anti-OTA sentiment, notably about the commissions we pay them.

My role as a revenue and distribution expert is to help the industry improve its revenue and I would say that the current negative mindset around thirdparty distribution such as OTAs could narrow a hotel’s profit potential, simply because of the fact that consumers love them, search on them and are more likely to book on them.

In fact, I would argue that hoteliers need to think of OTAs as a tool in their marketing toolbox.

One tool, among many others, that can help hotels thrive at a time where most major Australian markets face increased hotel supply, as well as competition from alternative accommodation providers like Airbnb.

To clarify, I am not saying that hotels should solely rely on OTAs as a distribution channel! Good hotel distribution is about balance and working with multiple offline and online channels, as well as multiple distribution partners.

Hoteliers should still aim to promote their most profitable channels; however, it is ill advised and unrealistic to think that consumers would only search and book direct and that direct channels are always the most profitable. It is not the case and this is why…

I do not listen to lobbyists promoting hotel brands and

30

Hoteliers need to think of OTAs as a tool in their marketing toolbox views. Hoteliers should look to leverage all channels including the reach of the Expedia Groups and Booking.coms of the world.

Matthias Dybing, Revenue Management Expert, Nuvho

‘book direct’ services and technology, who may have an interest to make you think OTAs are bad for your business.

In my role, the most common question hoteliers ask me is: “what’s the best way to increase my hotel revenue?”

The long answer is very complicated (and reliant on individual variants), but at a very top level, it’s about capturing the highest paying travellers, in the right way, on the right channel, at the right time. Good hotel distribution is about balance and working with multiple offline and online channels, as well as multiple distribution partners.

Hoteliers operate in a very cyclical industry where demand levels can be very high one day and very low the next. Even in the best-performing markets, hoteliers are unlikely to sell all their room inventory over at least four months of the year, and this is just thinking of school holidays and long weekends in corporate markets; and incidentally, the opposite to the above is true in leisure markets.

These situations happen globally and not just in Australia.

Therefore, I believe that hoteliers should use all distribution channels at their disposal with a long-term view in mind, rather than making short-sighted decisions based on hearsay and someone else’s experiences and

For a geographically challenged country, with a population of only 25 million people, Pre-COVID Australia greatly depended on international travellers, who represent over 35 percent of room nights across the country. The data showed that the inbound visitor numbers are growing, that they pay an average of 10 percent higher daily rates, stay 0.5 days longer and book 35-plus days in advance.

As such, Australian hoteliers need support from OTAs and other distributors to capture this growing demand in key international markets. The reason I say this, is because consumers will search and book on OTAs, and through other channels, for reasons other than price. It is often generational think: Baby Boomers visiting grandkids and those who organise a trip of a lifetime from the other side of the world, where multiple flights and hotels in multiple destinations are being booked.

The simple truth is that an independent hotel in Cairns, and even perhaps a hotel brand, will not necessarily have the unbiased choice that international consumers expect to have all in one place. This is when OTAs and other distributors are useful to travellers to find what they need and want. They are convenient to search hotels and travel options all in one place, including accommodation, flights and activities.

Metaphorically, and to get to

MANAGEMENT

the point, hoteliers are paying online distributors such as Expedia and Booking.com for displaying their properties on the travel sections of the Yellow Pages of the 21st century – which ultimately are there to provide exposure, visibility, reach and bookings from international and domestic travellers, who in turn, are looking for convenience and have little or no interest to spend hours finding and trolling individual hotel websites.

Yes, commissions are part and parcel of the OTA game, but marketing exposure, visibility and consumer reach has a cost whether direct or indirect. We must also not forget that Australia is blessed with some of the lowest OTA commissions in the world.

While some may tout a perception that OTAs are making profits at the expense of small Australian business, I would argue that the reality is that they are an essential marketing channel, and it is largely a misconception to imagine that an independent Australian hotel could achieve similar exposure at a cost of 15 percent per revenue delivered, particularly in the international inbound markets.

Personally, I would look to work closely with OTAs in order to develop a transparent and fruitful relationship with them to gain as much exposure as I can. Having said that, I would try to squeeze every cent from the commissions they charge through pushing the direct leads they generate to my website (the billboard effect).

Put simply, I would use OTAs to my advantage as an effective tool for marketing my hotel globally.

ResortNews | July 2021

INTONET

A word or two John Mueller is Google’s Senior Webmaster Trends Analyst and worries about web page ranking brought about by a website’s language.

Language is a tricky thing.

Words have definition, meaning, grammatical rules, nuances and interpretive differences. That is true of Shakespearean odes as much as it is true of your web pages.

That complexity is compounded when several languages are involved as they are in constructing your web page. Not only do you have the legible text which is the first language we all see. To render that prose there are at least three other languages forming the scaffolding for the words to cling to.

Google’s John Mueller answered a question about the impact of poor HTML, spelling and grammar on search rankings.

He gave two answers because HTML is a technical issue and spelling, and grammar are quality issues that can

Google’s John Mueller answered a question about the impact of poor HTML, spelling and grammar on search rankings.

Arvo Elias, Cybercons

impact the user experience.

The question: “Do Google’s search algos check the broken HTML or spelling mistakes or grammatical mistakes, taking into account the search ranking?”

I will now quote directly from the interview.

Some questions have a clear answer and John Mueller will typically answer right away. For this question John Mueller paused to think a moment before answering.

Mueller: “Those are kind of different situations. Uh… for the most part we don’t care about HTML if it’s broken or not. Most of the web does not have valid HTML and we have to live with it. The main exceptions that I know of with regard broken HTML is if it’s really broken in a very bad way in the sense that if we can’t recognize that a page is mobile friendly.

Impact of Broken HTML on Search Rankings. He answered first about broken HTML, explaining that HTML has to be so broken that Google can’t make sense of it.

“Or if we can’t recognize that this is a title or a heading then obviously, we can’t do a lot of things with the HTML. That’s … kind of the one case there and usually those kinds of broken

pages are very broken in the browser too. So if you look at the page and they don’t even load properly then probably you need to fix that. However if you look at the page and it looks normally in the browser, then even if there’s broken HTML probably that’s okay.”

Next John Mueller answered the second part of the question that dealt with poor spelling and grammar in the context of search performance. He notes that poor spelling or grammar is something that users see and thus becomes a quality issue.

Mueller: “With regard to spelling errors, grammatical errors, I think that’s something

Channel Managers:

Demystifying the benefits

By Sylvia Johnston, HiRum Software Solutions

Once a confusing term, ‘channel management’ is now a household name, at least in the hospitality industry. And if you want to increase the profitability of your business, you simply can’t run your business without one, even if you only have three rooms.

They are a sign of the changing times of selling your available rooms.

32

But how do you know which one best suits your business?

Are they all basically the same or does one size not fit all?

First introduced in the early 2000s, by now channel managers should all have the same basic core functionality. These include: •

Connect to the top five performing channels

•

Provide a slick booking engine for your own website

•

The ability to set different pricing across different channels

•

Realtime updates as bookings come through

From here, things need to become a little more tailored depending on your business model and market segment. A channel manager that suits a hotel may not be of any use to a business that runs vacation rentals or one that services backpackers unless the channel manager itself can seamlessly handle a business blend.

Since COVID, businesses have had to adapt, and the model of your business may have changed substantially. Having a flexible channel manager results in less business disruption for you and your team. Connections to the top five performing channels need to be the top five relevant to your business and not come at an additional cost because your channel manager has already decided these for you.

The connections required, the pricing strategy, along with the market lead time, all differ substantially across hospitality sectors. Your channel manager needs to be just as diverse too.

Your channel manager should also include demand-driven pricing tools that are inbuilt as opposed to added on through a third party, again, often at additional cost.

•

Full PMS integration

MANAGEMENT

ResortNews | July 2021

that’s a bit more of almost like a gray zone in that on the one hand we have to be able to recognize what a page is about. And if we can’t recognize that because there’s so many errors on the page in the text, then that makes it harder.

“The other aspect is also that we try to find really highquality content on the web and sometimes it can appear that a page is lower quality content because it has a lot of …kind of… grammatical and technical mistakes in the text.

“So that’s something where from my point of view if you’re aware of these kinds of issues I would just fix that. I would almost say… like… spelling and grammar is probably for most websites a higher priority than broken HTML.

identify page elements like titles and headings or even to identify where the content is.

grammar can impact rankings because it impacts users and is thus a quality issue.

Some HTML is so poor that page elements like <div> bleed into the visible part of the web page. Something like that could make it difficult for Google to understand the web page.

HTML that doesn’t conform to web standards is normal and Google (and web browsers) can make sense of that.

That is similar to his answer in another “Office Hours” hangout about auto-translated content that results in awkward grammar and would probably have a tough time ranking because of quality issues.

John Mueller provided a rule of thumb test that if a web page can’t be rendered well in a web browser, then it probably needs fixing. Next Mueller explained that bad spelling and poor

However, and despite Mr Mueller’s style what surprised me, while following his interviews, is that he does approve of plagiarism. That to me and all authors, and indeed teachers I know, is akin to committing homicide which would ultimately have suicidal

“But it’s… I mean… it’s really hard to compare because they’re very different things in that one is more of a technical issue, the HTML side, and the other is more almost like a quality issue and something that users tend to see so it’s like kind of different things.”

The booking engine for your website needs to convert quickly and simply. Trying to upsell by showing too many ResortNews | July 2021

He suggests that the original content may be on a poorly designed or structured site. If that is so, then copying that on a superior site would be acceptable to Google. The grounds for such acceptance would be that, as alleyways Google strives to present the best possible content in its search rankings.

An interesting twist to expectations but then we are dealing with the digital world.

Personally, I would be very careful in approaching this interpretation for several reasons. First, it goes against the grain of my indoctrination into the use or abuse of be it language, fact or rightly earned kudos; second, because I would have a hard time convincing myself that I could second guess Google.

So there you have my transcript and some interpretation of the horse’s strapper even if it is not directly from that mighty equine.

For you I hope that you will pay attention to this detail but please let your webmaster worry about that scary coding stuff.

HTML has to be very bad before it impacts rankings because it makes it difficult for Google to make sense of the web page because it can’t

No matter how good these tools may be, they are never as good as single platform seamless technology, designed to work as one. Without demand-driven pricing, your business could underperform compared to your competitors by as much as 20 percent. The bulk of bookings are made outside of general business hours, often when no one is monitoring the uplift in occupancy. Your distribution platform needs the ability to modify prices in line with demand. If your pricing can’t pivot on the fly without involving you, your bottom line will suffer.

consequences be it with or without due process.

options at the time the guest has entered their requirements, could prevent the guest from converting. We live in a demanddriven frantic world; customers want to complete their booking within 3clicks. Anything longer than this causes frustration and also leaves them with too much time to reconsider their decision. Hook them quick and convert them even quicker!

at options and insist on a model that works for you.

The cost of the channel manager needs to adapt to your business model. COVID has taught us that flat fees don’t work well when there isn’t money coming through the door. Performancebased pricing keeps everyone accountable and is where modern technology is heading.

Bear this in mind when looking

Ensure you can filter the information quickly and easily so that a last-minute decision can be an informed decision based on real-time information.

If your current solution doesn’t offer this, start shopping now to ensure your business has the competitive advantage required in today’s market.

Finally, you need business insights at the tip of your fingers, especially when trying to make pricing decisions in real-time.

Make sure your solution comes with an easy-to-read dashboard, giving you everything you need to make the right decision as soon as you log in.

MANAGEMENT

To summarise what to look for over and above the basics: •

Demand-driven pricing

•

Flexibility to incorporate a variety of business models within the one system

•

Easy to book website booking engine

•

Flexible pricing models to suit your business

•

In-depth reporting to make sure you’re making the right decisions

Anything less than this and your business is behind the game in the world of distribution.

33

TOURISM REPORT

Gold Coast ready to ride new wave

Hilton Surfers Paradise

By Grantlee Kieza, Industry Reporter

The green shoots of recovery for Gold Coast tourism are starting to emerge with simultaneous marketing campaigns in Australia and New Zealand.

And in a great sign that the accommodation industry is well on the road to recovery, Hilton Surfers Paradise General Manager Fiona Pryde said her business has returned to pre-pandemic levels with the strongest demand occurring on weekends and in school holiday periods.

The hotel recently won the QHA Award for best redeveloped hotel.

there is pent-up demand to play, and reconnecting with family and friends is so important for our wellbeing.”

Sanctuary Cove International Boat Show. Both reported solid attendance with the latter event drawing a record crowd.”

“Border closures have a large impact, though fortunately we are seeing a swift V shape recovery when borders are reopened, and some certainty restored.”

“The Gold Coast continues to be one of the most searched holiday destinations online across a number of booking platforms,” Ms O’Callaghan said, “and we have simultaneous campaigns in market domestically and in New Zealand to convert this demand and attract more visitors to Australia’s favourite playground.

Ms O’Callaghan said there had been “a redispersal of tourism dollars that would have otherwise gone overseas with Aussie holidaymakers exploring all that’s on offer in their backyard.”

Destination Gold Coast CEO, Patricia O’Callaghan, said research had shown that “there is more than just a pent-up desire to travel,

“In May, occupancy peaked above 85 per cent specifically on weekends, which coincided with signature events Blues on Broadbeach and the

“There has been very strong interstate travel demand particularly from NSW, and unrestricted domestic travel is going to be critical for continued recovery,” Ms Pryde said.

34

Hilton Surfers Paradise winning QHA Award

“Anecdotally, we have seen a resurgence of travellers to the Gold Coast venture out to ‘green behind the gold’ hinterland experiences, splash out on luxury accommodation, as well as revisiting nostalgic experiences of the nation’s most

TOURISM

famous holiday haven.” She said Destination Gold Coast was “committed to rebuilding visitation through effective marketing, restoring aviation access, advocating for new tourism infrastructure and ongoing collaboration with industry and stakeholders.”

Recovery would be a multipronged effort, Ms O’Callaghan said, and would include such critical initiatives as Destination Gold Coast together with the Queensland Government, announcing the extension of the Holiday Dollars program to the Gold Coast, which launched on June 7.

ResortNews | July 2021

The federal government’s halfprice subsidised flights had also been snapped-up quickly, with the Gold Coast emerging as the leading beneficiary to date.

“I think there was some scepticism about investing in upgrading product at a time of travelling uncertainty, but that decision has put the two hotels ahead of the pack, and we can compete against the new builds coming on stream.”

Ms O’Callaghan said she was anticipating a “solid winter school holiday period” for the Gold Coast, with tactical marketing as part of domestic campaign activity.

The debut of Destination Gold Paradise and Paradise Resort Coast’s first international Gold Coast, saying that both campaign in a year to lure “excelled in terms of location Kiwis back to the Gold Coast and potential, but both required was launched in April and extensive work to make the the successful delivery of most of that potential.”

ACCOMPROPERTIES many domestic business “Fittingly, the Hilton Surfers and leisure events in a Paradise recently won COVID safe environment had the Queensland Hotels returned in great numbers.

Association award for Best The Gold Coast’s recovery Redeveloped Hotel in the really kicked in from Christmas State,” Dr Schwartz said.

Categories Price Location / State as borders became slightly “It was testimony to the more certain, and while the foresight and work the team recent Victorian situation has put into the upgrade. The has been a set-back, the Kiwi only disappointment was that market is already beginning to Paradise Resort was also a pump and will be significant finalist, but with upgrade works throughout the winter. continuing throughout this Dr Jerry Schwartz, the director of year, we’re hopeful they can the Schwartz Family Company,A C C O M win P R Othe P E Raward T I E S - for M Anext K E Yyear, OURSELF AT purchased the Hilton Surfers because the refurbishment is

truly transforming the resort.

“Even with COVID and the cessation of international travel I was confident that the Gold Coast would succeed in the longer term. It is a holiday playground for Australians and Kiwis who want golden sands but who also want good restaurants, entertainment and attractions for the family.

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“The upgrades to the SEARCH Hilton and Paradise Resort took place largely during the COVID-induced close-down, so by the time borders were re-opening and most of the southern States wanted to head north to Queensland, we were ready with the right product HO M E I N Tin H Ethe A Cright C O Mplace M O D Aand TION suitable for the right markets.

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Dr Schwartz said initially, the Gold Coast market was all about domestic leisure, including a large percentage coming from the drive market.

“But that is evolving,” he said.

“More certainty with borders is helping, plus our guarantees of easy-rebooking in case of lockdowns, but in the end it is about the attraction of the Gold Coast and our hotels.

“Importantly, we have upgraded our product so while a couple or family may have looked to go overseas for a holiday because of the perception of higher quality of accommodation and facilities, our hotels on the Gold Coast deliver that quality but with the convenience and value of a domestic location, complemented by some of the best beaches in the world.

INDUSTRY

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35

TOURISM INTERNATIONAL

Global hospitality staffing crisis hitting hard

© Davit85 - stock.adobe.com

By Mandy Clarke, Editor

recovery visa for lower-skilled workers who don’t meet the point-based system (but) who are crucial to the recovery.”

The hospitality staffing crisis is not a just home-grown problem.

It is holding back economic recovery across the globe. In response, many hospitality businesses are cooking up creative solutions to a crippling shortage of talent, with chef, wait staff and housekeeping jobs the most affected.

A recruitment nightmare began for the industry as work dried up during the pandemic and many chose to leave the sector. On top of this, there is a mass shortage of international applicants. Because everyone is recruiting at the same time, competition is also sky-high.

The UK has the same recruitment issues we have, but also suffered the “Brexit Effect” alongside another very British problem. As explained in The Times UK by Caroline Taylor, the Australian general manager of upmarket Novikov restaurant

36

© Rawpixel.com - stock.adobe.com

in Mayfair: “Brits don’t really like doing service.” Why? “They don’t like being subservient.”

Of the central London restaurant’s pre-pandemic workforce of 350, only half-adozen were “born and bred in the UK” she admitted that a recent recruitment drive only attracted a “couple of Irish girls”.

The latest figures from global recruitment firm Broadbean Technology found that in April,

vacancies in UK hospitality soared 77 percent from the previous month. However, compared with April 2020, the number of applications slumped 82 percent.

Kate Nicholls, CEO of industry body UK Hospitality, told the Sunday Times it was time for the government to review its “shortage occupations” list.

She said: “We’ve also suggested an Australian-style coronavirus

TOURISM

On the other side of the globe the USA sector has similar issues, when New York City hospitality venues began to open after more than a year of being hard hit by the pandemic, they were overjoyed with a 100 percent customer capacity. However, a severe shortage of staff left them scrambling to stay open.

Pat Hughes, owner of Manhattan bar Scruffy Duffy’s, told Reuters that his bar would not reopen until he found a good bartender, but pandemic assistance benefits made it difficult to recruit.

He said he would need to pay higher wages to attract employees, but those costs would be passed on to the consumer. “And how much more is the customer willing to pay for a hamburger or a Bud Light? It’s already expensive.”

ResortNews | July 2021

New Zealand operators are also struggling, Kiwi industry insiders reveal it is one of their biggest headaches right now.

to work for them and big bonuses for those who recruit a friend.

The Sunday Times, reported the chairman of recruitment giant Reed saying the jobs pendulum had swung back in favour of workers.

According to a survey by Tourism Industry Aotearoa (TIA), just over half (53.23 percent) of the 318 respondents reduced staff numbers in response to the COVID-19 pandemic. But ahead of the usually busy summer season, 60 percent of respondents have sought to employ additional staff over the past three months, with 45 percent saying it has been difficult to find suitable candidates.

In response to the crisis, the World Tourism Organization (UNWTO) launched a global hospitality network the “Jobs Factory”. This platform to connect talent with employers across the sector, could be one possible global hospitality recruitment solution.

The Jobs Factory matches candidates with suitable positions, both locally and internationally. Jobseekers create a profile, search for positions that match their experience and skills, and set up job alerts to be informed of the latest opportunities. The platform also helps tourism businesses and organizations to find and recruit the best talent.

Talking about operators’ difficulties when trying to recover, TIA Chief Executive Chris Roberts said: “Getting the staff they need is a considerable challenge. The ‘lumpy’ nature of domestic tourism, with demand happening at weekends and school holidays, means many of the roles that need to be filled are part-time and temporary.”

The labour shortage in the Australian and New Zealand (ANZ) accommodation sector has been a humbling experience for senior hotel managers who have been ‘multitasking’, some even went back to their housekeeping roots or waited on tables. Highly respected industry CEOs met at the Hotel Leadership Summit at NoVacancy last month and discussed the crisis.

Dave Baswal Managing Director ANZ Ovolo hotels revealed that the pandemic was a humbling experience for CEOs because the COVID situation really highlighted how very important people are to this business, he said not just guests but also all staff must be valued, trained, rewarded, and retained.

Summing up, he said that in a post-COVID world people must be at the top of our list of priorities alongside reigniting passion for careers in the sector, investing in technology, and offering good accommodation experiences.

Geoff York CEO of Crystalbrook Collection admitted that the group had been offering salaries above and beyond award to attract talent. They also offer a financial incentive to workers who recommend friends for jobs in a bid to fill staff shortages.

ResortNews | July 2021

Photo by Nathan Dumlao on Unsplash

The labour shortage in the Australian and New Zealand (ANZ) accommodation sector has been a humbling experience for senior hotel managers...

This type of scheme has been used in other global hotel brands with some businesses even emailing customers with a promise of gift vouchers if they introduce suitable candidates.

Right now, the global hospitality group Accor, is busy trying to recruit for over 1000 jobs at almost all 400 hotels in ANZ and has launched an internship program.

Accor Pacific CEO, Simon McGrath, said: “This is a rapidly returning sector and we are now recruiting for roles at most of our hotels, apartments and resorts across the Pacific. It is an opportunity to create dramatic positive change by bringing in great talent that will enrich our industry’s future forever.”

In the UK, a well-known pub chain has offered cash bonuses

TOURISM

UNWTO Secretary-General Zurab Pololikashvili said: “The pandemic has hit global tourism hard. Up to 120 million jobs are at risk. However, tourism has a long history of adapting and embracing innovation. The Jobs Factory will be a great help to the millions of people who depend on tourism.”

At home, recent news of the addition of chefs to the Priority Skilled Migration Occupation List was welcomed as a “bright light in an otherwise bleak time for the accommodation sector”.

The two main areas of immediate concern for the accommodation industry are housekeeping and chefs.

Accommodation Association CEO Dean Long said: “The Accommodation sector has been significantly impacted

by COVID-19, losing 50 percent of its workforce at the commencement, with further reductions due to the prolonged nature of the pandemic. As we emerge from the pandemic with international borders closed, the industry is seeking to meet the fluctuations in demand, with employment a direct function of rooms sold.”

AHA National CEO Stephen Ferguson said the addition of chefs could not have come at a better time.

37

What about Women in Management Rights?

We had an exceptional afternoon, enjoying waterfront views at the beautiful Rico Bar & lounge for our Brisbane Women In Management Rights luncheon.

A huge thank you to the sensational Vanessa Sciortino from Nicholson’s Solicitors for sharing her knowledge with the group and providing great pointers for management right owners.

I would also like to acknowledge and thank Tania Stewart & Zoe from SSKB for explaining the new legislation and strata tips.

All in all, it was a fun and fabulous afternoon with the Brizzy gals.

The crowds are all gone... The material is all spent...

Now get some added exposure for that fantastic event!

To have your event featured in Resort News, please send your event information and images for consideration via email to events@multimediapublishing.com.au. - You just may be in the next Resort News!

38

EVENTS & APPOINTMENTS

ResortNews | July 2021

The 2021 ARAMA TOP Awards the industry’s night of nights

John O’Sullivan joins TTNQ Board Tourism Tropical North Queensland (TTNQ) has appointed Experience Co Chief Executive Officer John O’Sullivan to the Board of Directors.

and Fox Sports, and has extensive leadership capabilities and experience in the sports, entertainment, media, travel and tourism sectors on a local and global stage.

TTNQ Chair Ken Chapman said he was delighted to welcome Mr O’Sullivan whose marketing experience made him an outstanding addition to the board.

Mr O’Sullivan is currently a Commissioner of Tourism Western Australia. He holds an Executive MBA and is a Graduate Member of the Australian Institute of Company Directors.

He said: “John heads a very large publicly-listed tourism business and has phenomenal marketing experience.”

Mr O’ Sullivan said there was tremendous opportunity for tourism growth in Tropical North Queensland.

Mr O’Sullivan has more than 25 years’ experience in the tourism and related industries sector including being the Managing Director of Tourism Australia for five years.

He said: “I am excited to have been invited on to the board to share my experience and support the region.

He held senior executive roles with Football Federation Australia, Events Queensland

“I look forward to learning further from the team and also helping to deliver great results as Australia continues to open up for business.”

The team at Resort News and Accom Properties will be joining ARAMA for a night of celebrations, when the 2021 ARAMA TOP Awards and dinner takes place on Tuesday July 27 at the Victoria Park Events Centre.

The event is always an exciting celebration of all those stakeholders who have been instrumental to the strength and success of the management and letting rights industry, from resident managers in rental properties and holiday resorts to sales brokers and service providers.

The 2021 event will be an especially poignant one, after a year of such uncertainty for our industry.

The initiative will showcase the professional skills, experience and opportunities within the

management and letting rights industry and recognise excellence among leaders, the positive contributions that this industry makes to strata title communities and strengthen the success of the industry. The TOP Awards dinner will commence at 6:00pm for networking with industry over well-earned drinks and mouth-watering canapes. The formalities will begin at 7:00pm with dancing to end at 11:00pm.

We hope to see as many of you there as possible and let’s have a ball!

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

All All All All Gold Coast Online All Brisbane Byron Bay Online All Sunshine Coast Gold Coast Mackay Airlie Beach Port Douglas Carins Brisbane All Online Gold Coast

EVENT TITLE

TOP Awards Dinner Brisbane Expo Gold Coast Expo Sunshine Coast Expo Members Social Lunch Educational Webinar Management Rights Industry Training Program Drop in for Drinks Roadshow Educational Webinar Management Rights Industry Training Program Sunshine Coast Roadshow Gold Coast Roadshow Mackay Roadshow Airlie Beach Roadshow Port Douglas Roadshow Cairns Roadshow Brisbane Roadshow Management Rights Industry Training Program Educational Webinar Members Social Lunch

ResortNews | July 2021

DATE

Tuesday, 27th July 2021 Tuesday, 17th August 2021 Wednesday, 18th August 2021 Thursday, 19th August 2021 Tuesday, 7 September 2021 Wednesday, 15 September 2021 Tuesday, 28 September 2021 Tuesday, 28 September 2021 Thursday, 7 October 2021 Wednesday, 20 October 2021 Wednesday, 27 October 2021 Wednesday, 3 November 2021 Thursday, 4 November 2021 Tuesday, 9 November 2021 Wednesday, 10 November 2021 Tuesday, 16 November 2021 Wednesday, 17 November 2021 Tuesday, 23 November 2021 Monday, 29 November 2021 Wednesday, 1 December 2021 Tuesday, 7 December 2021

TIME

6:00pm - 11:00pm 6:00pm - 9pm 6:00pm - 9pm 6:00pm - 9pm 11:30am - 2pm 11am - 12pm 8:30am - 4pm 4:30pm - 6:30pm 6:00pm - 9:00pm 11am - 12pm 8:30am - 4pm 6:00pm - 9:00pm 6:00pm - 9:00pm 6:00pm - 9:00pm 6:00pm - 9:00pm 6:00pm - 9:00pm 6:00pm - 9:00pm 6:00pm - 9:00pm 8:30am - 4pm 11am - 12pm 11:30am - 2pm

EVENTS & APPOINTMENTS

LOCATION

Victoria Park Events Centre Kedron Wavell Southport Sharks Maroochy RSL Nighjar Burleigh Heads Register Online Riverside Hotel Riverside Hotel Byron Bay Services Club Register Online Riverside Hotel Kawana Surf Club Surfers Paradise SLSC Lanai Riverside Apartments Toscana Village Resort Oaks Port Douglas Brothers Leagues Club Colmslie Hotel Riverside Hotel Register Online TBC

REGISTRATION

Open Open Open Open Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon

39

DEVELOPMENT NEWS

Kennigo Hotel Brisbane rebranded Entertainment Limited (EVENT) announced the latest addition to its expanding portfolio of independent hotels, under the Independent Collection by EVENT, with the group securing the management agreement for the previously branded Mantra Richmont Hotel Brisbane.

The new agreement comes on the back of rapid growth and marks the tenth property to be secured under the group’s “Independent Collection”.

room, a patio area, event space and a new restaurant and bar (in development).

Norman Arundel, Director of Hotels and Resorts at EVENT said, “We’re thrilled and excited to welcome the newly branded Kennigo Hotel to the Group.

EVENT has the secured a full management agreement for the property and will lead its relaunch into market, taking control from 27 July 2021.”

Kennigo Hotel Brisbane features 107 modern and stylish rooms with original wall art, and floor-to-ceiling windows with

city or courtyard views, as well as rooms with balconies, patios and a rooftop terrace.

Amenities include an exercise

An announcement regarding the general manager for the property will be made in the coming weeks.

Prime waterfront site earmarked to become a $95 million retail, dining and residential precinct Henzell Property Group is set to lodge its proposal with Sunshine Coast Council for a two-stage development in Caloundra.

The group recently acquired a site nestled between Bulcock Street and Omrah Avenue where it plans to create a “marquee” lifestyle destination.

The project, called Verre Caloundra, will combine highend retail and dining on its street level with 39 residential owneroccupier apartments above.

Henzell Property Group sales director Marcus Muir said the company had been eyeing off the site for about 12 months and was determined to secure it. He said if approved, construction would start in June 2022 with the first stage

40

apartments over 10 levels that will boast exceptional views over Caloundra.

“We have chosen to release the most boutique offering to the market first to cater for exceptional demand for luxury residences by owner-occupiers,” he said. ©gmcphotopress - stock.adobe.com

expected to be completed towards the end of 2023.

as they have been waiting for the perfect location.

He said the development would combine luxury homes within an entertainment precinct that would attract high-end lifestyle operators from across Queensland.

“We have been speaking to a Brisbane operator who has a large presence in retail.”

“We have already started discussions with a number of dining and retail operators and there are many more who have yet to move to the Coast

“We plan to have a laneway running through the site which will have a funky coffee shop and a high-end restaurant like in James Street in Brisbane.”

The first stage of the development will comprise a boutique collection of 39

DEVELOPMENTS

“Stage one will comprise a collection of two and three-bedroom residences along with a penthouse collection, resort-style pool and tranquil poolside areas.”

The site currently houses a motel and large vacant block of land, which Mr Muir said would be demolished as part of the project’s second stage.

Henzell Property Group is also behind the $200 million development The Cove at Pelican Waters.

ResortNews | July 2021

©Martin Valigursky - stock.adobe.com

Surfers Royale Hotel Gold Coast Experienced developer David Devine plans to turn Surfers Royale Hotel into a 38-storey apartment building on the Gold Coast. The developer paid a premium for this prime beachfront site at Surfers Paradise and if approved completion is expected to take three years.

Luxury apartments at the $450,000,000 Mondrian Gold Coast at Burleigh Heads have fully sold out and construction has commenced Contractors commenced demolition of the White Horses, Glistening Waters and Burleigh Court buildings on site. The $200,000,000 construction job is set to take 26 months and will generate over 500 jobs for the Gold Coast construction sector.

The five-star ultra-premium apartments were sold by luxury apartment marketing agency TOTAL Property Group.

Brisbane’s Quay Waterfront by Mirvac, Newstead is set to begin construction in the coming months The $180 million development of 143 residences is already over 50 percent sold prior to its official market launch. The 25-storey tower will be one of Newstead’s tallest buildings, situated on Waterfront Park and will offer gorgeous river views. These incredibly strong sales are another example of Brisbane’s burgeoning residential market, and the building will be another stellar addition to the thriving Newstead area.

Brisbane’s fasttracked development Right now Brisbane’s property market is reported to be surging due to increased interstate enquiries and limited development completions.

Mondrian Gold Coast at Burleigh Heads

In response to demand Brookfield Properties have fast tracked the release of their $140 million Cottee Parker designed residential development ‘Rivello’. The 21 storey, 150 apartment building

in Hamilton will boast 50 metres of absolute river frontage with impeccable river and city views.

Sammut Developments unveil plans for a 6 star, 35-storey tower at 43 Garfield Terrace in Surfers Paradise The proposal, dubbed ‘COAST’ features 49 apartments, with 36 half floor villas, 2 double storey sky homes, 10 full floor sub-penthouse and a huge three-storey penthouse.

Mondrian Gold Coast at Burleigh Heads

ResortNews | July 2021

Cottee Parker designed residential development ‘Rivello’.

DEVELOPMENTS

The project is being undertaken in conjunction with property investment company Alceon Group, with a goal of creating “one of the most iconic, highend luxury apartments the Gold Coast has ever seen”.

41

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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 | July 2021

Management Rights – The Smart Choice ID 8662 ESTABLISHED BROADBEACH RESORT

ID 9017 FAMILY FRIENDLY – ROBINA AREA

EXCLUSIVE AGENCY

• • • • • •

Medium rise resort Great Broadbeach location 17 apartments in the letting pool Organised & well run complex 3 bedroom manager’s residence Covid-19 adjusted profit & loss

• • • • • •

NET PROFIT: $341,179 ASKING PRICE: $2,458,000 CONTACT: Phil Trimble – 0418 478 966

ID 7921 MIXED LETTING IN MERRIMAC

Permanent complex Upside with rents increasing Central location Salary over $100,000 3 bedroom residence Pet permitted with BC approval

NET PROFIT: $167,536 ASKING PRICE: $1,389,000 CONTACT: Gerard Dixon – 0433 617 515

ID 8343 BOOMING PORT MACQUARIE

EXCLUSIVE AGENCY

• • • • • •

Stunning waterfront resort No set office hours Low workload 2 bed, 2 bath residence Central Gold Coast location Inspection will not disappoint

NET PROFIT: $172,857 ASKING PRICE: $1,515,000 CONTACT: Gerard Dixon – 0433 617 515 Phil Trimble – 0418 478 966

• • • • • •

ID 9021 CARETAKING ONLY – MIAMI

Small holiday resort Genuine lifestyle business Close proximity to the beach Ideal for 2 person team 3 bed, 2 bath residence Strong coastal growth market

NET PROFIT: $341,179 ASKING PRICE: $1,160,000 CONTACT: James Carrick – 0498 965 005

ID 8667 GATEWAY TO NORTH QUEENSLAND

EXCLUSIVE AGENCY

• • • • • •

Caretaking only opportunity Boutique building of 27 units Close to the beach Easy care grounds & gardens Quiet and secluded location 2 bed, 2 bath residence

NET PROFIT: $33,725 ASKING PRICE: $695,000 CONTACT: Gerard Dixon – 0433 617 515

• • • • • •

Gladstone management rights No requirement to live onsite Immaculate & well maintained No set office hours 3 bed, 2 bath residence One of a kind accommodation

NET PROFIT: $70,958 ASKING PRICE: $589,000 CONTACT: Amanda Rowe – 0427 413 319

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

Your Management Rights Financing Experts Management and Letting Rights Quarterly Pulse • June 21 • Twelfth Series

Data provided by The On-Site Manager website

Market Snapshot - June 2021

STOCK LEVELS - The total dollar value of listings continues to fall August 2018

January 2019

September 2019

May 2019

January 2020

June 2020

October 2020

January 2021

March 2021

June 2021

$1,040m

$969m

$914m

$1,010m

$985m

$863m

$717m

$646m

$576m

$565m

728 Properties on the market

697 Properties on the market

697 Properties on the market

739 Properties on the market

716 Properties on the market

641 Properties on the market

518 Properties on the market

500 Properties on the market

463 Properties on the market

444 Properties on the market





















The number of Holiday Businesses for sale is currently around half that was it in January 2020.

Brisbane is responsible for all of the falls in general listings and the market has reached new record low for stock on the market.

The fall during this period does appear to be slowing.

August 2018

January 2019

May 2019

September 2019

January 2020

June 2020

October 2020

January 2021

March 2021

June 2021

Holiday

Holiday

Holiday

Holiday

Holiday

Holiday

Holiday

Holiday

Holiday

Holiday

355  Permanent

358  Permanent

330  Permanent

343  Permanent

335  Permanent

283  Permanent

239  Permanent

219  Permanent

187  Permanent

187  Permanent

338 

309 

336 

336 

328 

311 

245 

238 

234 

220 

Multipliers have had a slight decrease again this quarter BUSINESS MULTIPLIERS (Avg) OVER $1m Purchase Price 4.4x

4.3x

4.2x

4.1x

4.3x

4.25x

4.46x

4.35x

4.31x

4.27x





















DAYS LISTED August 2018

DAYS LISTED January 2019

DAYS LISTED May 2019

DAYS LISTED September 2019

DAYS LISTED January 2020

DAYS LISTED June 2020

DAYS LISTED October 2020

DAYS LISTED January 2021

DAYS LISTED March 2021

DAYS LISTED June 2021

Has decreased by 16 days to 71 days*

71 Days

72 Days

74 Days

105 Days

65 Days

58 Days

57 Days

45 Days

53 Days





















The days on the market has risen slightly which is likely to be a result of the lack of overall stock in the market impacting the numbers.

Market Movers

The Gold Coast and Sunshine Coast markets have finally reached the bottom it would seem and have grown slightly or flattened respectively. The Brisbane market that has continued to fall and the reason for this is unclear from the numbers alone, noting its largely a Permanent Letting market; is COVID still impacting the market OR are operators not listing their properties as they sense better times coming with ultra-low vacancy rates?

*Remained 79 days for Holiday and Permanent

1300 886 103

finexia.com.au

info@finexia.com.au

company/finexia-securities

Management and Letting Rights Quarterly Pulse • June 2021 • Twelfth Series

Management Rights for Sale - Market Analysis - June 21 Letting Pool Coverage – proportion of the total units to those within the Pool Agreement Coverage – refers to % of total agreement term available upon purchase.

Total stock ($)

Total stock

Days listed

Average price

Multipliers

Gross return %

Letting pool coverage

Agreement coverage

Resort / Holiday

$272,114,292

187

52

$1,455,157

4.10

21%

59%

81%

Permanent

$250,914,460

220

53

$1,140,520

4.47

23%

40%

80%

Corporate

$12,944,376

8

65

$1,618,047

4.44

24%

66%

86%

Off The Plan

$11,367,000

9

86

$1,263,000

2.16

104%

23%

100%

Caretaking

$13,037,000

16

29

$814,813

3.77

28%

1%

74%

Retirement

$3,510,000

3

60

$1,170,000

3.64

28%

77%

75%

$563,887,128

443

53

$1,272,883

4.27

23%

48%

81%

Historical Comparison of the Market

97 in Properties for Sale (114 in Mar 2021)

626

650

716 641

603

600

529

550 500

501 463

450 400

83 Permanent (91 in Mar 2021) 1 Holiday (2 in Mar 2021)

444

Jun 2021

Brisbane

$104m in Properties for Sale ($122m in Mar 2021)

674

671

Mar 2021

Standard Agreements multipliers have dropped from an average 4.18x to 4.13x. Accommodation Agreements have fallen slightly again this quarter from an average of 4.33x to 4.30x.

700

Jan 2021

$1.25m

739 695 694

Oct 2020

4.30x

725

750

Jun 2020

Accommodation Agreements

800

Jan 2020

$1.36m

Sep 2019

4.13x

May 2019

Standard Agreements

NUMBER ON THE MARKET

Jan 2019

Avg Purchase Price

Aug 2018

BUSINESS MULTIPLIERS (avg)

May 2018

Purchase Price

Total properties on the market has hit another record low

Jan 2018

Comparison by Agreement Type - June 21

Oct 2017

‘On the Market Analysis’ - Market Pulse

Jun 2017

Grand Total or Average

63 Days on Average Listed (55 in Mar 2021) 4.61 Average Multiplier (4.63 in Mar 2021)

4.38 Average Multiplier (4.29 in Mar 2021)

1300 886 103

finexia.com.au

info@finexia.com.au

company/finexia-securities

250

187 220

219

Permanent

Resort / Holiday

Jun 2021

Mar 2021

Jan 2021

187 Oct 2020

150

244 238 234 247

200

Jun 2020

53 Days on Average Listed (60 in Mar 2021)

311

283 260

Jan 2020

63 Holiday (65 in Mar 2021)

336 343 328

Sep 2019

22 Permanent (26 in Mar 2021)

309

307 278

330 336 335

May 2019

Sunshine Coast

93 in Properties for Sale (97 in Mar 2021)

355 358

338

300 250

$142m in Properties for Sale ($137m in Mar 2021)

328

346

Jan 2019

4.44 Average Multiplier (4.44 in Mar 2021)

350

337

Aug 2018

49 Days on Average Listed (52 in Mar 2021)

359

May 2018

56 Holiday (56 in Mar 2021)

400

Jan 2018

81 Permanent (82 in Mar 2021)

Oct 2017

144 in Properties for Sale (142 in Mar 2021)

NO. OF BUILDINGS ON THE MARKET BY TYPE (Holiday & Permanent)

Jun 2017

Gold Coast

$184m in Properties for Sale ($182m in Mar 2021)

On The Beach Resort, Bribie Island

Managers go “hammer and tongs” to improve guest experience What was it about the management rights industry that attracted you?

By Grantlee Kieza, Industry Reporter

Matthew and Dionne Marsh are the managers of Bribie Island’s spectacular On the Beach Resort - their first holiday letting management rights business.

Matthew says: “We like working with people and to be honest we saw it as being easier than working in the floor covering industry. The lifestyle looked very attractive, and it seemed like a business that you could generate a good income from, as well as live in a nice location.

They talk to Grantlee Kieza…

46

Matthew reveals: “This is our first holiday property, but we are not new to the management rights industry. We managed two permanent properties on the Sunshine Coast before we came here, Caprice at Peregian Springs and a large off the plan property for a major developer. At it’s completion it consisted of 220 properties and certainly kept us busy”.

the management rights industry Matthew and Dionne owned a floor-covering business in Gladstone for almost ten years.

because we moved to the

How did you get involved in the floor covering business?

thought would take off and that

Matthew and Dionne started out in Laidley in the Lockyer Valley, they met in high school before embarking on some overseas travel. Long before taking on

Matthew says: “We were looking to get into a business and Gladstone was about to experience a big mining and housing boom. We were lucky

between 2004 and 2013. It was

Matthew and Dionne Marsh

city and the business at the perfect time. The floor covering business was something we we could make a good go of it.

“We owned the business a steep learning curve, but we knew that with hard work we could improve the business and that’s what we did.”

PROFILES

“We bought the management rights to Caprice at Peregian Springs. Caprice was permanent complex, and it had 89 individual homes. We had to learn on the job as we didn’t have any management rights experience, but we knew it would be easier than the floor covering business and we learnt quickly. After selling the management rights at Caprice we managed a large permanent complex during the construction period.

“When the development was finishing, we were given the opportunity to purchase the ResortNews | July 2021

management rights however we decided to move into the holiday resort sector instead of permanent. It was an opportunity for change from the permanent letting sector and that’s when we came to Bribie Island.”

You’ve found a really beautiful part of the world on Bribie Island!

Dionne wholeheartedly agrees: “Yes. We absolutely love the property and enjoy living in paradise here on Bribie Island.

There was a lot of uncertainty with “COVID and it knocked us around for a while, like it did everyone, however being so close to Brisbane leaves us in a fortunate position and we are now extremely busy with it being back to business as usual which is great.”

What was it about Bribie Island that you really liked?

Dionne explains: “The location for starters. Having grown up in the Lockyer Valley we felt at home on Bribie, which has a

country town sort of feel, but it is right on the water. The building itself is really beautiful.

It is a unique setting. We had seen quite a few properties before settling on this one.”

Currently there are 25 spacious, stylish and contemporary self-contained two and three-bedroom beachfront apartments and villas in the letting pool, with 37 on title.

On the Beach Resort, Bribie Island has a Balinese themed design and its pool, gardens and the building all really appeal to the senses. The resort offers luxury beachfront Bribie Island accommodation for those seeking a perfect Queensland holiday, and it’s positioned right beside the only lifesaver patrolled beach on the island at Woorim.

It has been a hard year for the accommodation industry, how did COVID-19 affect your business?

Matthew shares: “We hadn’t been here very long when it hit, so it was a bit of a rude introduction. When we didn’t know how long the closures were going to last it was a real

concern, but we’re grateful it lasted for only two months.

“We were lucky to accommodate a large number of essential workers during the COVID period of April and May 2020. However, since Queensland reopened holiday accommodation in June 2020 we’ve been completely ‘flat out’.

Being so close to Brisbane we are very lucky to be in such high demand. People want to stay somewhere quiet by the ocean in a location that’s under an hour’s drive from the city and that makes us really attractive to visitors.”

“The install was fast, efficient and professional and the customer service is great. Our guests are really happy.

The wifi is exactly what we were looking for and we recommend Time Out Internet.”

- Matthew and Dionne Marsh, Resort Managers, On the Beach Resort

1300 55 77 54 sales@timeoutinternet.com www.timeoutinternet.com We are delighted to have Matthew and Dionne as valued clients. Best wishes from Cameron and all the team.

ResortNews | July 2021

PROFILES

47

Is Brisbane your biggest market?

the shops and the cafes, they are all within walking distance.”

Matthew says: “Yes most of our guests come from Brisbane however we also have a large number coming from regional areas like the Darling Downs. I think the reason for this is the country feel that Bribie Island offers, it really appeals to them.

What’s the average length of stay for your guests?

“People love the area because it’s so laidback. You can simply park your car in our secure carpark downstairs and walk everywhere.

From the hotel to the surf club,

48

waters around you with hardly anyone else around becomes very appealing for guests.”

What do you do away from the resort to relax?

Matthew says: “Weekends are obviously very popular however midweek stays are also busy as we have a large amount of return guests wanting to take advantage of a quieter island without the day visitors from Brisbane on weekends. Being able to walk along the beach watching dolphins play in the

Matthew admits: “We don’t get to travel much anymore.

“However, with things a bit quieter during the cooler months I do get to play golf at the Bribie Island course – it’s a great course and has been voted one of the best in Queensland! We also are able to get away and visit family

PROFILES

and friends and we often make use of Bribie’s many bike paths.”

What advice would you give to someone just starting out in management rights?

Dionne sums it up well when she says: “You must have a passion for customer service and love what you’re doing. I always look at a business and say, ‘get in have a go and do the best you can’.

We went into our management rights businesses looking to make it a better complex for

ResortNews | July 2021

the owners and to improve the guest experience as well.

“To do this you must also be prepared for the hard work. At On the Beach Resort, Bribie Island, in a fairly short amount of time we have made a series of improvements and completed several renovations. Our work has helped us increase returns for the owners.

“We completed a brand-new website with new images of the resort. We installed new wifi throughout the complex and updated the phone system making it NBN compatible.

“We also renovated the gardens and now all the grounds are fresh and beautifully presented. Furthermore, we fitted new carpet in many of the rooms, with fresh paint and new modern furnishings.

“We’ve really been going ‘hammer and tongs’ at the resort so that it is exceptionally well presented for our guests and gives them the holiday experience they deserve.

“We are very proud of the results so far and are very excited to see what the future holds.”

Phone 07 3400 1400 3-9 North Street, Bribie Island, QLD 4507

info@onthebeachresort.com.au www.onthebeachresort.com.au *Mid Week Special Sunday - Thursday for Resort News readers only, Stay 3 nights and only pay for 2. Not available weekends, school holidays or public holidays.

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The profile read well and told our personal story as well as that of our business and the building. It was surprising how many people saw it and commented back to us.

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the owners and the body corporate committee members. They were really proud to see their building highlighted in the industry magazine.

Thanks for helping us to raise our profile with the Oscar on Main feature and for making it a quick and easy, professional process.

– Angela, David & Sonya Oscar on Main, Main Beach Thanks to the team at Resort News for profiling our property. We are really happy with the results, and the feedback from owners has been fantastic.

The article was great, and accurately reflected both our property and everything we are trying to achieve.

Very much appreciated!

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PROFILES

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ACCOUNTANTS & AUDITORS Contact Michael Beddoes Partner & Management Rights expert mbeddoes@mbapartnership.com.au

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FURNITURE - OUTDOOR ACL (364 314)

Suppliers of Quality Commercial Outdoor Furniture & Accessories

• We clean carpets, tiles, mattresses and upholstery • Professional maintenance and emergency cleans • Water extraction and flood restoration

• New Chairs • Tables • Sun Lounges • Umbrellas • Cushions & Accessories • Prompt Service Guaranteed REPAIRS - RESLINGS AND SUPPLY OF REPLACEMENT SLINGS TO P.V.C AND ALUMINIUM OUTDOOR FURNITURE

Across the Sunshine Coast Call 0438 302 591 www.firstresort.com.au

CLEANING

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ELECTRICAL APPLIANCES

RESORT & COMMERCIAL CLEANING

Quality Electrical Appliances

SERVICING THE SUNSHINE COAST FOR OVER 15 YEARS

David: 0421 618 566 jporter01@bigpond.com

Personal Service. Trusted Advice.

Gold Coast: (07) 5592 3344

COMPUTER SOFTWARE

Sunshine Coast: (07) 5447 1210

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ELECTRICAL CONTRACTORS Reservations and Trust Accounting Daily Reconciliation – Systematic Distribution Holiday Resident Puma Light No trust accounting

Year 1 $1,100 Year 1 $990

Year 2+ $599 Year 2+ $440

CURTAINS & BLINDS

0448 813 090

Paul Grant 0448 417 754 paul@mikephippsfinance.com.au Cameron Wicking

0477 776 859

cameron@mikephippsfinance.com.au 4/31 Mary Street, Noosaville, Qld - 07 5470 2194

www.mikephippsfinance.com.au

Professional & friendly service Over 30 years finance experience Accommodation funding specialists

info@kudosfurniture.com.au

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

www.pcsfinance.com.au

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

ENERGY MANAGEMENT CONSULTANTS & SERVICES

AUSTRALIA WIDE BEST PRICES

Nick Smith - 0450 179 677

(07) 5591 9191 QLD LIC. 9107 NSW LIC. EC29426

LARGE INVENTORY FOR FAST DELIVERY

F I N A N C E

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

Repairs - Maintenance - Installations Testing & Repairs of Emergency Lighting Appliance Repairs

SUPPLYING ALL TYPES OF COMMERCIAL QUALITY FURNITURE, UMBRELLAS & SUNBEDS

Red

Management Rights Finance Specialists

Phone (07) 5446 2135

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

mike@mikephippsfinance.com.au

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

Motels, caravan parks etc. from $220 to $330 p.a.

www.pumasoftware.com.au

Mike Phipps

coastalcasualoutdoors@gmail.com

W I D E

LIFESTYLE

Look for the sign of an Industry Specialist...

fresh finance...

FURNITURE

A U S T R A L I A

CLEANING CONTRACTORS

0418 765 257

www.casualfurniture.com.au

Commercial Specialist Direct Importers Sales, Service & Repairs ¾LARGEST RANGE¾FURNITURE ¾UMBRELLAS¾SUN LOUNGES Cnr Main Drive & Nicklin Way, Warana, Qld 4575 | Ph 07 5493 4277 Acres Centre, 1/37 Gibson Rd Noosaville 4566 | Ph 07 5449 9336

www.daydreamleisure.com.au sales@daydreamleisure.com.au

GLASS INSTALLATION/REPAIRS

Expert Advice • Great Range Friendly Service • Quick Turn Around

M 0476 327 736 darrensbsc@bigpond.com

darrensblindsshutterscurtains.com

Look for the sign of an Industry Specialist

52

Specialising in furniture for hotels, motels, serviced apartments, resorts and refurbishments

1300 876 055 dennis@hotelinteriors.com.au www.hotelinteriors.com.au

PREFERRED SUPPLIER DIRECTORY

ResortNews | July 2021

LINEN &/OR LINEN GOODS

GYMNASIUM EQUIPMENT

We get results.

Pure & simple.

Management Rights, Motel, Hotel and Caravan Park sales.

Australia’s Leading Hotel Bedding Suppliers

1300 665 966

We’ve got you covered EBM is your Management Rights insurance specialist.

07 5437 8544 info@mainlinen.com

YOUR PARTNERS IN SUCCESS

MAIL BOXES

As industry partners and members of ARAMA, we are proud to support the Management Rights sector.

1300 755 112 | ebm.com.au

INSURANCE

AFSLN 246986 ABN 31 009 179 640

Calvin Bailey LREA

Alex Barker-Re LREA

Quality Aust Products to meet All Building & Government Standards

0414 889 593 calvin@cbmr.com.au

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

CALVINBAILEYMANAGEMENTRIGHTS.COM.AU

DELIVERIES QLD WIDE – INSTALLATION & SERVICE IN SE QLD

0414 835 128 alex@cbmr.com.au

MANAGEMENT RIGHTS AGENTS

…When you need us most!

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

INTERNET SERVICES

WORLD CLASS INTERNET ACROSS QUEENSLAND RESORTS

Property Bridge MANAGEMENT RIGHTS

RESORTS

 Discreet Silent Listings  Free Market Appraisals

“Always passionate, committed and professional, you can trust the team at Property Bridge.”

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

www.rcabusinessbrokers.com.au

The Management Rights Specialists

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

 OPTIC FIBRE & COAX SOLUTIONS  NOT NBN  ENABLE FOXTEL BUSINESS IQ  USE YOUR EXISTING CABLING  FREE AUDIT

SUNSHINE COAST

Matt Campbell 0410 343 219 Barry Davies 0438 554 995

contact@managementrights.com

www.managementrights.com

CONTACT ANNIE MECKLEM 0410 607 846 | 1300 GIGABYTE

Specialising in Motel & Resort Sales Qld wide

LIGHTNING PROTECTION

Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au

Supporting and servicing the needs of both buyers and sellers of management rights throughout Tropical North Queensland PO Box 1037 Gordonvale 4865 • P 07 4056 6366

Look for the sign of an Industry Specialist ResortNews | July 2021

MOTELS, CARAVAN PARKS, HOTELS & MHE’S NATIONAL COVERAGE sales@tourismbrokers.com.au 1300 512 566 www.tourismbrokers.com.au

PREFERRED SUPPLIER DIRECTORY

info@resortsales.com • www.resortsales.com

Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

53

Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS

ASBESTOS REMOVAL QUEENSLAND WIDE

FREE CALL

1800 111 622 WWW.STRATACORP.COM

1800 766 366

HIRISE

Think Management Rights Wayne & Linda Stoll 0452 181 505

wayne@thinkmanagementrights.com.au

Narelle Filmer 0459 229 744

narelle@thinkmanagementrights.com.au

www.thinkmanagementrights.com.au

PAINTERS & DECORATORS

FREE QUOTES &ADVICE

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

Ph 5520 1256

www.anppainting.com.au

MAINTENANCE PTY LTD HIGH RISE/COMMERCIAL RE-PAINT, ABSEIL ACCESS INSTALLATION & CERTIFICATION, WINDOW CLEANING, ALL ROPE ACCESS MAINTENANCE

0435 818 380

www.hirisemaintenance.com.au vince@hirisemaintenance.com.au

PEST CONTROL Servicing Brisbane & Gold Coast

PEST

PEST-NETT SERVICES

CALL TODAY TO GET YOUR PEST PROBLEMS SOLVED

Residential &Commercial

Call Now 07 3206 6721 www.terminett.com

QBCC Lic No 1050861 NSW Lic No 179886C

SOLICITORS

MORE THAN

JUST

LAWYERS EXPERIENCE COUNTS We have the largest team of management rights lawyers across Queensland and NSW. We guide you through management rights every step of the way.

GET THE RIGHT ADVICE Don’t put your accommodation industry investment at risk. Our industry knowledge is second to none.

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

OUR

SERVICES • GENERAL PAINTING • PROJECT MANAGEMENT • MAINTENANCE PAINTING SOLUTIONS • NATIONAL MULTI-SITE PAINTING • SPECIALISED ACCESS • BUILDING SERVICES

• Painting • Grounds Maintenance & Landscaping

• ANTIMICROBIAL SANITISING 1300 HIGGINS www.higgins.com.au

PLUMBERS & GAS FITTERS

- SUNSHINE COAST -

LOOKING FOR DRAIN PLUMBING & GAS ?

BLOCKED

SPECIALIST

• • •

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

GENERAL PLUMBING DRAINAGE PROBLEMS GAS-FITTING & MAINTENANCE

24/7 EMERGENCY RESPONSE

CONTACT US 0418 883 752

SHEET METAL

• Signage & Branding • Electrical Services • Audio Visual • Data Communications

Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work

• Sustainability

Ph 07 5593 4183

Call 1800 620 911 or 07 3718 1600

M 0413 432 294 adrian@sheetmetalimprovements.com.au

programmed.com.au

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

BRISBANE: 07 3007 3777 GOLD COAST: 07 5562 2959

info@mahoneys.com.au

SIGNS

Whatever, Wherever, Whenever!

Whatever, Wherever, Whenever!

www.accomnews.com.au/ business-directory

Look for the sign of an Industry Specialist

54

www.accomnews.com.au/ business-directory

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

PREFERRED SUPPLIER DIRECTORY

SAVE TIME DO IT ONLINE! ResortNews | July 2021

Whatever, Wherever, Whenever!

Management Rights, Body Corporate and Property Law Specialists 10/1 Lanyana Way, Noosa Heads T 07 5474 5777 E info@siemonslawyers.com.au siemonslawyers.com.au Buying & Selling

New Agreements or Variations

General Advice

All at Fixed Fees

SWIMMING POOL SUPPLIES/REPAIRS

www.accomnews.com.au/business-directory

TV & VIDEO HIRE/REPAIRS

Appliance Rental Specialists

Personal Service. Trusted Advice.

Flood Legal offers all the experience & expertise of a big firm while delivering accessible, personal & affordable service that comes with dealing with a small firm.

Gold Coast: (07) 5592 3344 Sunshine Coast: (07) 5447 1210

Heat Pumps

Proudly installed and serviced

Call Sharon Flood, Director 0459 070 871 or 02 6674 5118 sharon.flood@floodlegal.com.au www.floodlegal.com.au

think

management rights, think...

w w w. L M g o l d s t a r. c o m . a u Buying or Selling Renewing or Reviewing Negotiation & Dispute Resolution We are recognised experts in our field, always outcomes focused and offer flexible fee options.

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

Management Rights Lawyers

(07) 3226 3944 mjr@nicholsons.com.au / vas@nicholsons.com.au www.nicholsons.com.au

Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588

20 Leading Sunshine Coast Law Firm

Matthew Russell, Partner Vanessa Sciortino, Special Counsel

VALUERS - REAL ESTATE

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

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

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

Classes from Coolangatta to Cairns REAL ESTATE LICENSING COURSES

MANAGEMENT RIGHTS VALUATION SPECIALISTS Australian Valuers have proven to be the No.1 choice for this highly specialised work. Our valuation team operate on a national level providing advice to the majority of Australia’s Banks

australianvaluers.com.au mlr@australianvaluers.com.au 1800 664 094 The only specialist Management Rights valuation company in Australia (with 25 years experience)

Valuations for all purposes - National Coverage Major Lenders - Consultancy - COVID-19 Advice WHEN EXPERIENCE MATTERS

Griffiths Parry Lawyers

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

Alex McCowan 0417 405 115 or Alison Sun 0416 181 285 admin@accomvaluers.com.au

www.accomvaluers.com.au

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

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

or Anywhere via Zoom

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

Call John Punch on 5570 9322

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

CERVETTO COURTICE

ENROL Today (07) 3878 8513

Management Rights Sales & Purchases

Valued up to $2000 per annum (conditions apply)

L AW Y E R S QUEENSLAND

Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

ResortNews | July 2021

Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: cervettocourtice@outlook.com

Whatever, Wherever, Whenever! www.accomnews.com.au/ business-directory

Bonus FREE CPD Workshops & Ongoing Support for Graduates

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

PREFERRED SUPPLIER DIRECTORY

RTO Number 31303

Look for the sign of an Industry Specialist

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