Resort News - December 2021

Registered by Australia Post Print Post No. 100023799

Issue 304 | December 2021 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Profile Toscana Village Resort Person of Interest Lachlan Hoswell management rights • hotels • motels • resorts • holiday parks • time share • hosted SPECIALISTS IN ACCOMMODATION FURNITURE FF&E AND JOINERY Custom made furniture including packages & finance solutions.

Dennis Clark MDIA Hotel Interiors

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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.

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

Inside our December issue FRONT DESK Editor’s Note: Bris-business is booming ..........................05

INDUSTRY ARAMA Report .......................................................................... 06 SCA Report ..................................................................................07 State Report ................................................................................08 BCCM Report .............................................................................. 10 Person of Interest: Lachlan Hoswell .................................. 12

MANAGEMENT Legal Ease..................................................................................... 14

By All Accounts .......................................................................... 14 Thinking MR................................................................................. 16 Motel Market ............................................................................... 16 Good Governance ..................................................................... 18 Intonet ...........................................................................................20 Building Relationships ............................................................ 21 5 ways to use your guest data for Smart marketing....24 Storage wars no hit for managers.......................................26

Mandy Clarke editor@accomnews.com.au

INDUSTRY REPORTERS

Grantlee Kieza Mike Parker-Brown

DESIGN & PRODUCTION

Richard McGill

ADVERTISING SUBSCRIPTIONS

Tourism Report ...........................................................................28

EVENTS & APPOINTMENTS Events.............................................................................................30

AccomProperties New Manager Profiles ........................36 AccomProperties Sales Report ...........................................36

Gavin Bill subscriptions@accomnews.com.au

Brisbane Management Rights Spotlight .........................39

Trevor Rawnsley, Kristi Kinast, Col Myers, Michelle Scott, John Punch, Lel Parnis, Mike Phipps, Andrew Morgan, Lynda Kypriadakis, Arvo Elias, Kelley Rigby & Sylvia Johnston

29

Brisbane market update .........................................................49 Management rights multipliers on the rise in Brisbane ...................................................................................52

PROFILES

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!

04

PROPERTY

Stewart Shimmin advertising@accomnews.com.au

CONTRIBUTORS

12

TOURISM

Appointments .............................................................................30 EDITOR

10

Toscana Village Resort; Slice of heaven with a splash of Tuscany in paradise ..................................................................54

PREFERRED SUPPLIERS Preferred Supplied Directory ................................................58 FRONT DESK

34 ResortNews | December 2021

November was a busy month, but December promises to be crazier at Multimedia HQ. We have three magazine deadlines before our break that begins December 23, alongside a multitude of industry events we’re grateful to have been invited to attend.

This season is a stark contrast to the very quiet Christmas party season of 2020, but hopefully it’s a sign of things to come in 2022.

Let the fun begin!

In other news, Brisbane’s real estate and management rights sector seems to be going gangbusters. This is borne out, not only by one expert after another in Grantlee’s special report on Brisbane’s management rights sector (and it’s a banger) but also by the roaring success of the PRET Australia Awards event.

Next month in Resort News, make sure you tune in for Grantlee’s deep dive into the Gold Coast’s management rights industry

Mandy Clarke, Editor editor@accomnews.com.au In my opinion, Bris-business is booming with much more to come for the thriving city.

Next month in Resort News, make sure you tune in for Grantlee’s deep dive into the Gold Coast’s management rights industry.

Like you, I have questions. I’m very keen to find out what the experts say, because I see the ‘Goldie’ as an iconic Aussie holiday location that’s very reliant on international travellers.

Therefore, what is the future?

In this issue of Resort News, we have our usual monthly writers and contributors offering no-nonsense guidance, tips, and advice for the sector. I want to thank them ALL for their support and wonderful articles throughout 2021.

We really feel we get a glimpse into the life of some of our columnists. After reading this month’s contribution from Mike Phipps, I contacted him for an update on his wife’s health and he reports that she is doing okay. Wishing you all the best for a full recovery, Lee-Anne.

We have the best team, many have written for Resort News for decades, like one of our oldest friends, Arvo Elias.

EDITOR'S NOTE

Bris-business is booming

Sadly, the January edition will feature Arvo’s last column, we wish him well for his retirement.

This edition, we have an interview with Maroochydore based, Lachlan Hoswell, from Minor Hotels, who talks “boom times ahead”. We also have one of my favourite type of profiles and, I mean, a great interview with great managers and breathtaking images. What a property!

I hope you enjoy this edition of Resort News, wishing you all a very merry Christmas and a wonderful New Year, from me and all the team.

Cheers, Mandy

SPECIALISTS IN ACCOMMODATION FURNITURE FF&E AND JOINERY Custom made furniture including packages & finance solutions.

Dennis Clark MDIA Hotel Interiors

www.hotelinteriors.com.au info@hotelinteriors.com.au | 1300 876 055

ResortNews | December 2021

FRONT DESK

05

ARAMA REPORT

Real estate licensing and the importance of development October 2021 saw the official launch of the Office of Fair Trading’s new training requirements for people wanting to enter the real estate industry.

The new training, which now forms part of initial licensing requirements, is an outcome from an independent review of the national property services training package.

increased the educational requirements for operators to get licensed.

The industry and government have both been advocating for a more complex educationbased licensing regime.

The government was not satisfied that the educational requirements for the licensees was sufficient and therefore

This was not done without thorough consultation with a range of industry bodies such as the Real Estate Institute of Queensland (REIQ), Australian Livestock and Property Agents Association (ALPAA) and, of course, ARAMA.

The change in licensing has huge impacts for our members, because every one of us is required to hold a licence, either a resident letting agent (RLA) licence, or a full license commonly referred to as LREA. This is the licence that qualifies them to be a licensed real estate agent.

Trevor Rawnsley, CEO, ARAMA

In Queensland, it was historically easy to get an RLA in two or three days and there were about nine training organisations that could do it online, via correspondence or face to face. LREA on the other hand was a little more complicated, but nevertheless it could still be processed quickly. So that's now changed.

ARAMA has been working with Fair Trading policy writers for the last couple of years to make the educational requirements more difficult and more relevant to the operator’s role as a licensed real estate agent. When you’re charged with selling or managing what’s likely to be our most important asset, people have an expectation for the credentials that qualify you for that role.

The review and subsequent updating of licensing education for resident letting agents in Queensland has resulted in a modern, more relevant set of training requirements offering more flexibility and more opportunities for skills transfer.

These improvements will result in better education for agents and ultimately better outcomes for the consumer. Anyone wanting

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

to obtain a real estate licence will now be required to complete the new training ahead of applying for the licence classes: limited real estate agent – affordable housing, limited real estate agent – business letting, real estate agent, real estate salesperson and resident letting agent.

The important thing to recognise with licensing is that it is going to cost more and take longer to apply for, than it otherwise would for new licensees. For existing licensees, we've been working with Fair Trading on a continual professional development otherwise known as CPD. Queensland is the only remaining state that requires continual professional development to be undertaken for licensees. The rest of Australia already has it in play.

In ARAMA’s view CPD is a good thing, because it will continue the education of licensees, and ARAMA is ideally positioned to deliver that education. ARAMA sees this as an additional benefit for its members and that members will obtain their CPD points from industry experts. It will provide continual training in subjects that are relevant. It's ARAMA who is training licensees in industry language which is important for them to put into practice in their business to make it better. These improvements will result in better education for agents and ultimately better outcomes for the consumer.

QLD - NSW - VIC - WA

For membership enquiries:

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

06

INDUSTRY

ResortNews | December 2021

The announcement of the Brisbane Olympics represents a tremendous opportunity not just for Brisbane, but for the whole of Queensland.

SCA REPORT

Brisbane Olympics a historic opportunity for Queensland The chance to be on the world stage encourages all levels of government to put their best foot forward to represent our country to the world. Whilst the ‘Games’ are to be hosted by Brisbane the events are to be held right across the South-East Region.

Queensland will have the eyes of the world upon it and the chance for an economic, cultural and social windfall is immense.

Olympic Games traditionally have an audience in the billions: this is a marketing opportunity for all of Queensland that is truly once in a lifetime.

Resort News readers will be acutely aware of the potential windfall that comes with an influx of international arrivals at an event like the ‘Games’; but of course, there is also a chance for longer-term marketing for our state. To maximise this opportunity, we must have foresight about what will make the best impression on the globe.

Tourists who visit will either be impressed by the built environment, infrastructure and amenity or be underwhelmed.

The state’s built environment will be immediately recognisable to those watching, and it is important that our cities be up to standard in this regard.

A good local example of how an Olympics can fundamentally change a city is of course Sydney. There was an influx of development and a population boom over the decades following their Olympics. This has seen Sydney become a global city to rival New York and London.

The eyes of the world will be on Brisbane for the Games.

The population is set to surge prior, and whilst I don’t have a crystal ball, I’d suggest the population is likely to surge even more once the world is exposed to our Sunshine State.

ResortNews | December 2021

©lazyllama - stock.adobe.com

building defects must be a top priority for the government.

The last thing we want to see when the world is watching is a building collapsing in the middle of an Olympic Games.

Kristi Kinast, President, SCA (QLD)

From a strata perspective, the development boom fuelled by this population explosion in postOlympic Sydney has not been well managed. One only needs to look at the disastrous Opal Tower, in Sydney Olympic Park of all places, to see what can happen when population growth isn’t managed properly. The recently appointed New South Wales Building Commissioner has released a report that states almost 40 percent of new apartment buildings in New South Wales have serious defects, costing hundreds of thousands on average to fix.

As part of ensuring that Queensland isn’t embarrassed on the world stage and for the Olympic Games to go ahead in a safe fashion, we need to ensure that the booming high rise building sector is held to a high standard. This means extending protections for

The Queensland Government is on track to ensure that standards in the built environment continue to rise. With the Community Titles Legislation Working Group, we see the potential for higher professional standards for body corporate managers and other important consumer protection measures.

Reforms to the Queensland Home Warranty Scheme are also afoot. SCA (Qld) will work with the government cohesively to ensure these reforms are delivered in a way that benefits all Queensland in the lead up to the Olympic Games.

As mentioned above, the Opal Towers disaster which occurred in Olympic Park has put the whole Sydney apartment sector on notice and under strain. A compromised building sector could potentially embarrass Queensland and even deter tourism and migrants prior to and following the Olympics.

This is why positive reform is so important not just for the 16 days of the Olympic Games, but for Queensland's future.

The COVID pandemic and the initial Olympic buzz have driven countless people to

INDUSTRY

Queensland. Projections for population growth in the state's south east corner are massive and post-COVID most wouldn’t be surprised if it accelerates beyond the already exponential rates predicted. Inevitably, with the South-East Queensland regional plan favouring infill development, the vast majority of population growth will end up in strata properties. It would not be unforeseeable to suggest that near half of South- East Queensland Residents will end up in strata properties by the time the Olympics rolls around. Investment in public transport will also encourage infill strata development in the south-east, Olympic Games infrastructure will become the peoples’ infrastructure.

While managing population growth and the challenges of the Olympics can create challenges, equally they provide a tremendous opportunity for the tourism and strata sectors.

A boom in high-density lots managed by a professional sector of property professionals and built by a robustly regulated and skilled building sector means better cities and more affordable housing. This is a massive part of ensuring Queensland continues to be the great state of opportunity, which has been our reputation for the past 50 years.

07

STATE REPORT

Updated NSW letting and COVID-19 requirements and relief packages

©Vitalii Vodolazskyi - stock.adobe.com

Building managers in NSW who conduct residential letting must be aware of the updated COVID-19 residential support package that now applies to eligible COVID-19 impacted tenants and landlords.

In my May article this year, I set out the requirement for termination of residential tenancies during the transitional period from March 2021 to November 2021.

What happened after November 11, 2021?

Following the end of the freeze on evictions, a further transitional period will run from November 12, 2021, until the end of February 12, 2022.

During this time, COVID-19 impacted tenants who accrued arrears during the moratorium period ( July 14, 2021 and November 11, 2021) are exempt from provisions that would allow them to be evicted for those

08

with NSW Fair Trading, and, it is otherwise fair and reasonable in the circumstances for the tenant not to be exempt.

Col Myers, Small Myers Hughes

arrears unless: if the landlord and tenant have agreed to an arrears repayment plan, and the tenant fails to make repayments in the amounts and at the times required by the plan on two or more consecutive occasions, and it is otherwise fair and reasonable in the circumstances for the tenant not to be exempt.

Or If the landlord and tenant have not agreed to a repayment plan and, the landlord and tenant have participated in good faith in a formal arrears’ repayment negotiation process

In considering whether it is fair and reasonable in the circumstances for the tenant not to be evicted, the tribunal must have regard to: the steps taken by the landlord and tenant to negotiate a repayment plan, any payments made by the impacted tenant towards the arrears, the nature of any financial hardship experienced by the landlord or tenant - including the general financial position of each party, the availability and affordability of reasonable alternative accommodation for the tenant, whether the landlord has applied for or received any financial assistance or land tax rebates available to landlords who reduce rent, and any special vulnerability of the tenant.

Exclusions The freeze on evictions does not apply to social housing tenancies as these have their own processes for dealing with arrears.

INDUSTRY

Financial support for rent reduction The Residential Tenancy Support Payment assists COVID-19 impacted tenants and their landlords to maintain tenancies and reduce financial hardship.

A landlord can make a claim for either this payment or the COVID-19 land tax benefit (which is an offset of the land tax liability equal to the rent reduction granted), but not both.

The Residential Tenancy Support Payment has been increased from $1,500 and now provides up to $4,500 per tenancy agreement. Landlords who have already claimed up to $1,500 or $3,000 can make a further claim for reduced rent up to a total of $4,500.

Landlords can make separate claims for each premises they own.

Landlords cannot ask tenants to repay the reduced amount of rent that has been paid to them under the Residential Tenancy Support Payment or land tax benefit.

ResortNews | December 2021

Tenants can make application for assistance From November 11, 2021, COVID-19 impacted tenants whose weekly household income reduced by 25 percent or more since July 14, 2021, can apply for up to $4,500. This is only available if the landlord or agent has not already applied for the maximum amount available.

The government believes that opening applications up to tenants as well as their landlords will help clear rental arrears and will also help to avoid disputes and recovery action for rent during the moratorium transitional period.

Tenants wanting to make an application from November 11, 2021, will need to: arrange for all tenants listed on the tenancy agreement to sign the application for the residential tenancy support payment, and obtain the consent of their landlord and/or agent to provide their personal and rent account details.

Claims can only be paid into a managing agent’s trust account or a landlord’s rent account (not the tenant’s personal account).

The amount for each tenancy is capped at $4,500.

Eligibility for support payment An applicant is eligible for this payment where: there is a residential tenancy agreement with a tenant/landlord (as proof, you will need a rental bond number and/or a written tenancy agreement), the tenant is an eligible COVID-19 impacted tenant, and the applicant agrees to be bound by the terms and conditions for the payment.

ResortNews | December 2021

unless you and the tenant agree to a lesser rent payment.

Additionally: the property that is the subject of the application must be the tenant’s principal place of residence, residential premises that are being used for commercial purposes, such as short-term rental accommodation or as a serviced apartment, are not eligible for the payment, residential premises that are being used as a boarding house or other shared accommodation arrangement are also not eligible for the payment.

Tenants are permanently protected from being listed on tenancy databases.

What happens with arrears owing from the previous moratorium period?

What should landlords and agents do?

Apply for financial assistance

Negotiate with your tenants. Landlords and agents are encouraged to negotiate in good faith.

An online application for financial assistance is now available.

As mentioned in my May 2021 article, in March 2021, the government put in place the following measures to assist COVID-19 impacted tenants who accrued rent arrears between April 15, 2020, and March 26, 2021 (the previous moratorium period).

Landlords are only able to evict for these arrears if they have first attempted in good faith to negotiate a repayment plan. It also must be fair and reasonable to evict.

The tenant cannot be evicted unless they have failed to meet the agreed payment on two consecutive occasions.

These measures ended on September 26, 2021.

Under the freeze on evictions, if a tenant is currently COVID-19 impacted, the landlord is unable to take action to terminate the tenancy for arrears accrued during the previous moratorium period until after November 11, 2021.

To confirm a tenant is an eligible COVID - 19 impacted tenant you can request reasonable evidence such as: payslips or bank statements showing reduced income, documentation from an employer showing job termination/stand-down or reduced hours, evidence of a business closure or business records showing loss of takings, Centrelink confirmation of eligibility for financial assistance, medical certificates.

Tenants and landlords will continue to be able to apply to the NSW Civil and Administrative Tribunal (NCAT) to terminate tenancy agreements on the basis of hardship.

You can consider a range of variations to the agreement including: waiving rent for a period of time, reducing rent now and repaying this later in addition to usual rent payments, repayment of existing arrears over a period of time or a combination of these.

Existing agreements about the waiver or deferral of rent payment are not affected.

Note: Only rent waived from July 14, 2021, is eligible to be claimed as a payment.

Landlords cannot evict using the ‘no grounds’ eviction process unless it is fair and reasonable to do so.

COVID-19 impacted tenants must pay 25 percent of the usual rent to remain eligible for the eviction protections

INDUSTRY

Note that if you apply for the payment for reduced rent, you will need to provide written consent from each tenant to provide their personal information to the NSW Department of Customer Service.

Complete the “Consent to Provide my Details” form and make sure it is signed by each tenant.

Only the landlord or their managing agent can claim the payment, which is paid direct to the landlord’s account or agent’s trust account as nominated by the applicant.

You will be asked to provide proof of the residential tenancy arrangement, including the rental bond number or, if no bond has been lodged, a copy of the residential tenancy agreement.

If you don’t have either, you can still apply. The department will contact you to discuss your application and ask you to provide other proof that a tenancy agreement exists.

Payments made to managing agents are treated as any other rent payment and will be subject to the usual fees applied under the managing agency agreement.

In most instances, the department advises that payments will be received in a short period of time where the details of the tenancy agreement can be verified against rental bond data.

09

BCCM REPORT

Removing committee members Committees are made up of lot owners or their representatives and are elected each year, usually at the annual general meeting, to represent lot owners and make decisions on behalf of the body corporate.

From time to time, a body corporate may, for various reasons, decide to remove a committee member or members from office. In this article we outline the ways that the body corporate can achieve this.

The two ways provided in the Body Corporate and Community Management Act 1997 to remove a committee member are: by passing a motion by ordinary resolution of the body corporate at a general meeting (see section 44(2)(f) of the Standard Module), or for breach of the code of conduct (see section 44(2)(g)).

General meeting resolution Proposing a motion to remove a committee member from

Michelle Scott Commissioner, Body Corporate & Community Management

office, or in some cases multiple committee members, at a general meeting is by far the simpler of the two mechanisms available to bodies corporate under the Act. At any time, a body corporate can pass a resolution to remove a person from any voting position on the committee.

and so it follows that owners are free to remove a committee member for any reason they wish, or without giving a reason.

removed from office for that reason, the process set out in section 45 of the Standard Module must be followed.

The submitter of a motion to remove a committee member also does not need to substantiate the basis for the motion. See for example: Marcoola Beach [2017] QBCCMCmr 251.

The body corporate must pass a resolution to give the committee member a written notice.

It is important to note however, that if the submitter of the motion specifies that the reason for the removal is because of a breach of the code of conduct, the process in section 45 of the Standard Module (below) must be followed.

The notice must state: 1.

That it believes the member has breached a stated provision of the code.

2.

Details sufficient to identify the breach (not exceeding 600 words).

3.

That the member may, within 21 days of being given the notice, give other owners a written response (not exceeding 600 words).

4.

That the body corporate will pay the member the postage and photocopy costs of giving their response to other owners.

5.

That the body corporate will consider a motion to remove the member from office at the next general meeting (which must be after the 21 days allowed for the member to respond).

Code of conduct breach

As with all decisions that a body corporate makes, it must act reasonably. Whether a particular decision is unreasonable will depend on the circumstances.

All voting members of the committee are bound by the code of conduct for committee voting members in Schedule 1A of the Act. Committee members are taken to have agreed to comply with the ‘Code’ on being appointed.

Generally, adjudicators have found that voters do not need to give reasons for why they vote for one candidate over another,

If an owner (or the committee) believes that a voting member has breached the code of conduct and should be

©alfa27 - stock.adobe.com

10

INDUSTRY

ResortNews | December 2021

Notwithstanding, consideration is sometimes given to using this method if there is a lack of awareness among lot owners about the committee member’s breaches of the code of conduct.

This is because, unlike a general meeting motion which may provide no reason at all for a committee member’s removal, the process highlights the issues that have occurred with other lot owners. However, the process is not commonly used.

Filling vacancies If a position becomes vacant due to either of the above processes being followed, the legislation provides that the vacancy must be filled.

It is often a good idea for the person who is submitting a removal motion to decide on who they consider would be a good replacement and confirm their interest beforehand, so they can have that person named in a motion appointing them to the committee at the same meeting.

Other issues Sometimes owners and bodies corporate will try to control who can be appointed to a committee in future. For example, a body corporate may try to pass a motion that Mr Jones is not included in any nomination or election for any future committee.

However, this is not permissible under the legislation.

The body corporate can appoint an eligible person to fill the vacancy without the need to conduct an election.

Adjudicators have held that a body corporate cannot resolve that an individual cannot be nominated for or elected to the committee at a particular meeting or in the future.

Commonly, the motion to remove a committee member will be followed by a motion to appoint an alternative person to fill the vacancy created by their removal.

Even if a person has been removed from office, if the person remains eligible, they can be nominated and elected again at any time in the future.

There is also nothing to prevent the submitter of the motion to remove the committee member from also having the position declared vacant and the appointment of a new committee member included in the same motion.

Attempts to pass such restrictions would conflict with the legislative provisions regarding eligibility, nominations, and elections. (See for example: Jewel of the Reef Palm Cove Condominiums (No 3 - Residential Precinct) [2020] QBCCMCmr 476).)

If the vacancy is not filled at the same meeting, the usual processes for filling a casual vacancy, which are provided for in section 48 of the Standard Module, apply.

This section states that the vacancy must be filled within one month and that this can be by a decision of the committee, provided the number of committee members has not fallen below the number required for a quorum. If there is no longer a quorum of committee ResortNews | December 2021

If you’re not reading

Choosing not to fill a committee vacancy created by the removal of a committee member at the same meeting that removed them can give rise to a risk that they will be re-appointed if there are no other nominations for the vacant committee position at the next general meeting.

then you’re losing the advantage.

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

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Profile Lanai Riversid e Apartments Person of Inte rest Kristine Lehma nn

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It is important for bodies corporate to have a full and robust committee to make decisions.

Print Post No. 100023799 99

As can be seen, the process for removing a committee member from office for a breach of the code of conduct is much more involved and requires two general meeting decisions.

members, another extraordinary general meeting must be called.

Regis d by Austr Registere Australia Post

If the notice is given and the 21-day period has passed, the body corporate must include a motion on the agenda for the next general meeting to remove that member from office and include a copy of the notice given to the member.

Visa

Card No.

This does not mean that committee members will always see eye to eye or get along.

Name.

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Date:

It is often more helpful to focus on trying to resolve particular issues instead of removing committee members, especially if it is going to be difficult to find replacements.

INDUSTRY

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11

PERSON OF INTEREST

Lachlan Hoswell

Minor Hotels a major

global player

By Grantlee Kieza, Industry Reporter

Then I went to Bond University and studied corporate law. I was working at a medium-sized law firm on the Gold Coast and after a few years of gaining experience I went to Daikyo. I was there for a couple of years.

Lachlan Hoswell, the Maroochydore-based General Counsel and Commercial Officer for Minor Hotels, tells Grantlee Kieza there are boom times ahead in the accommodation business.

Daikyo is a massive developer of residential buildings in Japan, but it had issues during the Global Financial Crisis and sold out their interests in Australia. Then I went to work for Wyndham.

Minor Hotels sounds like it’s a chain of small, boutique establishments.

But it’s not?

Much of your work at Wyndham and Accor Vacation Club involved acquisitions?

We have more than 550 hotels in 55 countries and that equates to more than 75,000 rooms. We have 57 properties in Australia and five in New Zealand. Minor also has 2,229 food and beverage outlets including the Coffee Club. In South-East Queensland, our accommodation brands are Oaks and Avani Residences, the group’s founding brand is Anantara, which is really ultraluxury experience hotels.

The Anantara Uluwatu Bali Resort is a luxury property on world renowned surf break and at The Golden Triangle in Thailand elephants actually walk around the resort with you. They are really exotic destination experiences.

Then how come it’s called Minor?

Bill Heinecke, an Americanborn Thai businessman who is chairman of Minor, started his business career when he was an under-age minor. He has kept the name all the way through.

It is now the 18th largest global hotel group. Minor is a listed company on the Thai stock

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One of the properties we acquired was the Worldmark at Rotorua in New Zealand and it led to me being named employee of the year in 2005. While I was there, we also acquired sites in Port Macquarie and Coffs Harbour that we developed hotels on.

Both locations were close to Nambucca Heads that gave me a great chance to catch up with my parents.

Lachlan Hoswell

exchange with headquarters in Bangkok. The group has big-name brands including Oaks, Tivoli, Avani, NH and the luxury resorts of Anantara.

in Cairns where they had the Cairns International, Matson Resort and the Green Island Resort. They had reef boats, reef pontoons, the Paradise Palms golf resort, and they had other developments on the go, too.

How did you start in accommodation industry?

I started off as legal counsel and company secretary with a Japanese company called Daikyo which had properties such as the Gold Coast and Cairns International Hotels. I was based

Is Cairns your hometown?

No. I grew up at Nambucca Heads near Coffs Harbour, which is a beautiful part of the world. I surf and it was a great place to do that.

INDUSTRY

At Accor Vacation Club we acquired a resort in Bali, which was a great place to visit for work.

You just celebrated 10 years with Minor?

Yes. At Minor Australia, we have a mixture of hotels we own, lease or manage, and we have a lot of management rights in our portfolio. We bought a hotel in Darwin for $57 million and we’ve built hotels in places such as Gladstone. We own a good portion of the Cypress Lakes Resort in the Hunter Valley of NSW, and we own a large portion of Oasis Resort here on the Sunshine Coast.

ResortNews | December 2021

There's no doubt Australians love to travel and any chance they've got to travel outside of COVID lockdowns they have.

The late, great rugby league player Norm Provan had the management rights at Oasis?

Yes, and Norm also owned a good portion of the apartments, too. We've gone through a refurbishment and put in a water park and it's now one of the top family resorts in Australia.

How did COVID affect your business around Australia?

It’s been tough for the last two years. In Melbourne we have three big hotel leases, and they have bit hard during COVID with low occupancies. But you have to take it on the chin. The landlords were good, and we brokered deals with each of them to assist us through, but it's been a tough couple of years for us. Regionally our business has been very strong.

There's no doubt Australians love to travel and any chance they've got to travel outside of COVID lockdowns they have.

On the Sunshine Coast the Oasis Resort and Seaforth Resort have been strong and so too has Hervey Bay. Cypress Lakes Resort and our waterfront properties in Port Stephens have done well. People in cities have gone out and travelled so long as they haven’t had to travel too far. But the corporate market has been a massive challenge.

Our businesses in the city relied on corporate travel and I think even next year it will take some time before the corporate market really recovers. People are more comfortable with working from home now and they can have Zoom meetings as opposed to face to face.

Conference organisers are still holding back but that will change. But people still want to escape, so I think we'll see regional centres still doing well.

ResortNews | December 2021

Things are starting to look up and people are talking about international travel now. How do you see the next couple of years in the accommodation industry?

Next year will be strong for the holiday market. We see COVID as a blip that will be behind us eventually. After that I think it’s back to good times especially in Australia where we’ve largely controlled the pandemic and we have high vaccination rates.

Many Australians will have a reluctance to travel overseas but will travel domestically. We should see a lot of overseas visitors supplementing our domestic travellers who will see us as being COVID safe.

Management Rights Transactions Damian Quinn

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

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

• Property Law • Retirement Villages • Body Corporate

SUNSHINE COAST & QUEENSLAND WIDE

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

So, with that in mind, are you acquiring new properties to add to Minor’s portfolio?

PROGRAMME

Selectively we are. We were very bullish pre COVID, but we've held back a little bit for the time being, though we are still actively looking for properties if the right opportunity comes up. During COVID we took over a Quest property in Sydney and it’s now the Oaks North Ryde. We have signed an NH Collection deal to build a luxury hotel in Wentworth Street in Sydney.

There will also be another NH hotel coming to Wollongong.

What do you do when you’re not acquiring hotels and giving legal counsel?

I live close to the beach on the Sunshine Coast. My wife and I have two boys Austen, 17, and Jensen, 15. We play Oztag, which is like touch footy. And I’ve shared my love of surfing with them, so we are out riding waves every chance we get.

This months suppliers to the programme ACCOUNTANTS & AUDITORS BROCHURE DISPLAY CLEANING CONTRACTORS FINANCE MANAGEMENT RIGHTS AGENTS PAINTERS & DECORATORS SOLICITORS

Crest Accountants Sunshine Coast Brochure Display Lifestyle Cleaning PCS Finance First National Think Management Rights Programmed Property Services Cervetto Courtice Solicitors

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

INDUSTRY

13

LEGAL EASE

Tips on how to protect your management rights Based on recent experiences of my firm’s clients and my knowledge of management rights, extending back over more than 45 years, I offer the following tips on the fundamentals of the conduct of management rights…

Tip 1 Establish strong, personal and professional relationships with all the parties involved and work hard to maintain them, within the environs of the body corporate.

Management rights is a people and legal industry. The people you deal with in the area of lot owners (both those who let their

those of all the owners.

John Punch Partner, Short Punch & Greatorix Lawyers

lots and those who do not) plus those people who operate in the administration or management of the body corporate, have needs that you must understand and freely assist with. It is not just the chairperson and committee members, although they are very important to both your interests and

In establishing a relationship with the body corporate manager, try and emphasise that you and they have parallel needs and interests, and where you can assist them and they you. Be prepared for changes in the personnel of the body corporate manager, as you will find the people in such organisations may be constantly turning over and every time your body corporate manager has a new person, you will need to get alongside them to explain the special needs or events in your building that they need to understand to work with you.

Then there is the establishment with the chair and other committee members of a mutual respect and appreciation, where reliance on you for the

physical needs of the scheme occurs as a matter of trust which must be established. To do this you also need to keep an eye out for those lot owners who might be encouraged to engage in the formation of a committee, rather than relying on lot owners who might have their own agenda, or egos, which lead them to seek to be the chairperson and members of the committee. Volunteers need encouragement, prodding and the promise of assistance and cooperation for their role, to become committee members.

Your relationship with the letting owners is particularly a commercial one. Where an absentee owner not only expects you to maintain their lot physically, whilst producing a financial return to them, but also be their eyes

BY ALL ACCOUNTS

Director ID number:

A simple tick off your to-do list before Christmas A director identification number is a unique 15-digit identifier that a director applies for once and will be linked to that individual forever If you are a director of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation, you will need a director ID. Sole traders will not require a director ID number.

Director ID numbers are intended to help prevent the use of false or fraudulent identities and to create a fairer business environment by improving data integrity and

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consult the community about if and when this should change.

Your director ID will confirm your identity and trace your relationships to companies.

Your director ID will confirm your identity and trace your relationships to companies despite not currently set to be publicly available information.

Lel Parnis Principal, Holmans

confidence in knowing who the directors of a company are.

There are strict rules around how director IDs can be used. For now, your director ID will not be searchable by the public. The Registrar will

It is important, now more than ever, than you understand your role and responsibilities under the law as a director.

The date you must apply depends on the date you became a director: from November 1, 2021 all new company directors must apply for a ‘Director ID number’ within 28 days of appointment, directors appointed on or before

MANAGEMENT

October 31, 2021 have until November 30, 2022 to apply.

Penalties for non-compliance are severe. Failure to have a director ID by the date you are required to do so carries maximum criminal and civil penalties of $13,200 and $1.1m respectively.

There are also other large civil and criminal penalties associated with actions which undermine the Director identification number regime, such as providing false identification documents. Given these penalties, it is crucial organisations and directors (or prospective directors) stay up to date with the new laws to ensure Director identification numbers are obtained when required.

ResortNews | December 2021

and ears on the spot at the building as a source of proper information. That is also where sending regular newsletters to owners is important.

Tip 2 Read and reread your agreements and ask your lawyer for answers to any questions of how the law, the BCCM Act, is applied. The terms of this agreement are particularly important to give you an ongoing stable platform for your business and its goodwill.

I am amazed at how many managers do not know the scope of their daily, monthly, quarterly and annual duties or do not properly record a justification for how well they have performed. Nor do they often understand how their remuneration for their duties is properly earned from the body corporate as calculated for their services and explained to the body corporate, which consists of all the lot owners.

There is a lot of ignorance among committee members as to the limits of the managers

duties, with the relevance of the remuneration calculated to the extent that the duties or services apply. There can be an attitude that no matter what is needed by the body corporate for maintaining the building and the common property, it must be supplied without limitations by the manager for the monthly remuneration.

That attitude needs both the on-site manager and the body corporate manager to provide subtle and informative education to committee members and owners. The manager needs to reinforce that it is purely a contractor for a calculated remuneration and not an employee for a salary!

Tip 3 The three components of management rights ensuring a stable legal and financial basis are: •

an agreement for caretaking the buildings and common property, with the body corporate

•

an ownership of a lot in the scheme to cover the

areas where the manager’s commerce and residential needs are covered, as well as giving a legal right of involvement in the body corporate owners structure and decision making, and •

the elements needed for the conduct of an on-site letting agency, as per the Property Occupations Act, covering real estate agents’ licences and businesses in QLD.

This tip is to understand and maintain all of those elements, particularly of the letting agency, for the building, which has its foundations in the letting agreement from the body corporate (a letting agents’ formal authorization under the BCCM Act) and reliance on proper forms of letting agents appointments in the government stated form 6.

Failure to meet all of the legal and accounting requirements will be fatal as the Queensland government, through the Department of Fair Trading, constantly checks on the letting agents’ compliance.

Tip 4 Become involved in the organisation set up and run by managers, to represent and protect this industry, Australian Resident Accommodation Managers Association (ARAMA).

As the saying goes, ‘There is strength in numbers” and this industry representation group embodies coverage of the management rights industry’s needs, fully. As a lawyer who has worked continuously to assist ARAMA, from its formation many years ago right up until now, I know how its accumulated knowledge, has given it the ability to assist with ongoing representation of all managers for their needs.

I hope that these tips serve a reminder to everyone of the basics that are relied on to successfully continue the business of the management rights they own. It is a great and important industry in Queensland particularly, and has a solid legislated for structure, that these tips all apply to.

You need to apply for your director ID yourself to verify your identity. No one can apply for you.

How do you apply?

The fastest way to do this is online using the myGovID app.

You need to have this set up for accessing your personal MyGov site or Online Services for Business (previously known as the Business Portal) if you don’t currently access your ATO data via these online portals, get yourself set up now, kill a few birds with one stone.

Step 1 Download the MyGovID App on your Smart phone/device and follow the prompts to setup your MyGov ID.

Step 2 Be ready with the following information: Tax File Number, residential address (as on file with the ATO), information from two documents to verify your ID (a recent notice of assessment, bank account details, dividend statements, Centrelink/PAYG payment summary etc) ResortNews | December 2021

©terovesalainen - stock.adobe.com

Step 3 Once you have a myGovID with a standard or strong identity strength, and information to verify your identity, you apply for your director ID via www.abrs.gov.au/directoridentification-number/applydirector-identification-number.

The application process should take less than 5 minutes.

If you can’t get a myGovID with a Standard or Strong identity strength, the best way to apply for a director ID will depend on your situation. You can apply via phone or paper form and more information in this regard can be found on the ABRS website.

My advice, do it now – don’t let it slip fall to the bottom of your list and end up costing you.

MANAGEMENT

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

15

THINKING MR

The genie is out!

More on the genie later, but first…

I write this month’s life reflections from the comfort of the “Quiet Room” at the Sunshine Coast Private Hospital. It’s the room they send stressed out finance brokers to, while their ‘Managing Directors’ are having surgery.

It is, as the name suggests, quite relaxed and tucked away from the world outside. A nice spot to reflect, maybe even meditate while ‘she who must be obeyed’ faces the knife.

In preparation for the days ahead we’ve been (how shall I say) getting our affairs in order. I’ve been trained in how to feed the fish, look after the puppy, and make sure the budgie remains upright and in full squawk.

It’s been quite the blessing really. I’ve even been taken to a room in our home that I didn’t know existed. It’s filled with large white machines of various

Mike Phipps, Director, Mike Phipps Finance

complexity, and I’ve been advised to get used to using them.

Turns out there’s more to clean clothes than throwing them in the hamper… who knew?

Most concerning of all has been my introduction to ‘The Bell’. I am told that upon it’s ring I am to drop everything and present myself front and centre, with a positive attitude to ensure the MD’s every need is catered for. If the demands

seem extreme, I am to remain composed and alert to the needs of the patient. No matter the provocation, there can be no negativity and certainly no anger. I’m all good with this because I love and fear my wife.

She did not wish the injury upon herself nor was it self-inflicted.

service, force customers into long, mind numbing queues (both real and virtual) know for sure that the strategy is going to make people angry and then put up a sign saying anger and frustration won’t be tolerated. If ever there was an example of the self-fulfilling prophecy, this is it.

As always, this brings me to a point of reflection. Increasingly I am confronted by businesses and institutions who do seem to be the cause of bad outcomes.

These companies use signs and messages to encourage me not to be angry and aggressive.

Unlike my wife, I am not in love with any of these people and frankly my patience is wearing thin. Not my patience with the poor buggers on the front line whose lot it is to smile and serve.

I fear for the mental health of workers and public servants who have to spend their day dealing with customers who are at their wits end, and I reckon company directors who allow this to happen should be held accountable.

No, my beef is with the decision makers way further up the food chain. It’s a simple plan executed by simple people. Cut back staff, place zero importance on

Of course, there is a silver lining.

For tourism operators being able to offer an escape from the madness is an increasingly compelling proposition. Research tells us that as holidays loom many punters find their stress levels at all-time highs. The planning and logistics combined with needing to have work and life under control before

MOTEL MARKET

Annual motel market wrap up: 2021 Another interesting and exciting year has gone by in the blink of an eye. At the end of each year, we cast our thoughts back as to how the industry performed throughout the past 12 months. Did our predictions play out as planned, or did we get it completely wrong?

Again, I repeat what I said one year ago, this year has been a very different one for obvious reasons! Some enjoyed the year with strong occupancy rates whereas others unfortunately found things more difficult with stifled bookings and numerous stops and starts with lock downs and border closures.

The end of 2020, one year ago, had such promise and an air of excitement based on improved activity and trading conditions. Let’s consider 2021 by quarters and recap to see just how things transpired.

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was classified as improving.

The majority of businesses gaining buyer interest were freehold in tenure, with a few leases selling, but the volume was lagging well below freehold.

Enquiry numbers confirmed why, with interest in freehold properties gaining the majority share in a landslide victory.

Andrew Morgan, Queensland Tourism and Hospitality Brokers

As 2021 kicked off in early January activity was busy with interest in the accommodation sector continuing to follow in the footsteps of the end of 2020.

Momentum had been building and the Christmas break did not get in the way, which it often does. Enquiry levels were solid with genuine buyers looking for opportunities. A number of motels, resorts and caravan parks were marked “Under Contract”.

Inspection numbers were increasing, and sales activity

On the back of the improvement of the first quarter there was much increased listing activity early on in the second quarter of the year. Many owners were making enquiries about selling and listing numbers increased as a result. Inspection numbers continued to be solid and there had also been an increase in enquiries for leasehold motels.

The leasehold sector was starting to get a roll on with an increase in enquiries and business sales starting to transact. We did find however investors were experiencing issues with gaining suitable finance, and many were eager to buy, but not being able to finance at levels they

MANAGEMENT

expected they could. This did result in a number of contracts not progressing to settlement.

Moving forward into the third quarter activity continued to grow with contracts being negotiated and settlements pending, until we hit July 17.

That fateful day when Victoria was no longer welcome to enter Queensland. This then flowed on to Sydney, then most of NSW, then the ACT. At this point in time with the lack of certainty about reopening the borders, etc, the tap was turned off, again! People wanting to move to Queensland from the southern states to invest their money into a motel, resort or caravan park were not able to do so. Those who had flights and accommodation booked and appointments made for inspections, had to cancel everything. Again, things were turned on their head. Relying on just the intrastate market meant the majority of the market for accommodation businesses ResortNews | December 2021

of confidence are reflecting significant improvements but let’s face it. If you kidnap someone, lock them in a car boot, drive around for a while and then set them free of course you’re going to get a positive response. So, it is with COVID.

switching off seems to instil a kind of pre-holiday breakdown.

The manifestation of this unique mental condition can be observed upon arrival at the holiday destination. Nothing like six hours in a car with three restless kids and a vocal navigator to put the nerves on edge. The really great resort operators get this situation and manage it magnificently. The arrival and check in process is relaxed, forms can wait, if necessary, the guest is greeted with a calm and understanding approach and nothing seems to be too much trouble. The increasingly popular guest lounge is put to good use if the room is not ready or the guests are early, in no time the travellers are in holiday mode, and you guessed it.

They’re coming back next year, they’ll book direct, and the new tariff will be accepted with thanks. In successful resorts I’ll bet there’ll be no sign in the lobby that says we have no staff; we don’t care if you have to wait and if our process is so bad that it makes your head hurt you are not allowed to be annoyed.

©ZoneCreative - stock.adobe.com

And now, the genie Earlier this year we suggested that it’s pretty much impossible to print a stack of money when an economy is in the doldrums and not end up with an inflation breakout. Having seemingly abandoned cash rate pledges the Reserve Bank appears to have arrived at the same conclusion.

I reckon we are headed for the perfect storm. There’s a lot of liquidity in the system that’s not matched to economic output and that’s not a good thing.

Labour shortages both skilled and unskilled are starting to bite and supply chain disruption means that the goods we can

get our hands on are dearer than before. Fixed interest rates are on the rise and I expect the banks to move on variable rates even if the RBA leaves the cash rate alone. It’s concerning to note that even a cursory look at worldwide inflation rates suggests that we are lagging behind global trends with the worst to come.

The real kicker and potential balancing dynamic in all this is, consumer confidence. Received wisdom suggests that when consumers are confident, they spend and prices inflate to match demand. I think this time round things might be different. No doubt surveys

While a lot of us have been spending a few bob on renovations it seems the average family in the ‘burbs’ has been saving like crazy and paying off property debt. This is no surprise given the shock of COVID and the apparent desire of many people to get ready for the next rainy day. In fact, with current household savings nationally at $1.2 trillion the banks are hardly under competitive pressure to lift deposit rates, to attract retail funds.

Maybe, just maybe, we’ll see rising consumer confidence without an inflation blow out. I give it 1 in 5 odds.

In closing, I spotted a sign on a trade vehicle recently, “Service worth waiting for”, says it all really.

was not accessible. Again, this meant a substantial part of the market was stuck sitting on the sidelines playing a waiting game.

The latter part of 2021 (the fourth quarter) initially continued to be relatively subdued. Although enquiries were at an average level, those being made from the southern states started to increase. More freedoms for those in formerly locked down areas and a light at the end of the Queensland border closure tunnel, saw a resurgence in enquiries as the quarter wore on. Moving forward, the final quarter has seen a muchimproved level of activity with mid-October and November improving considerably with many more enquiries, inspections and contracts of sale being entered into, particularly for freehold motels, resorts and caravan parks. More than one investor vying for the same business has resulted in unsatisfied demand, therefore continuing to look for other accommodation opportunities.

Moving forward, how do we think 2022 will go? If momentum is anything to go by, we will say ResortNews | December 2021

©fotogestoeber - stock.adobe.com

the new year ahead looks very positive for the industry. Being able to access travellers from the southern states, mixed in with more “closer to home” demand for accommodation is expected to be strong. With this comes increased demand for the

acquisition of accommodation businesses from investors looking to enter the industry or expand a portfolio. Don’t forget about international border blocks starting to slowly be released as the year goes on. Hopefully this will bring an

MANAGEMENT

increase in holiday travellers, workers and those looking to relocate more permanently.

All of us at Queensland Tourism and Hospitality Brokers (QTHB) wish you a happy, safe and prosperous 2022 throughout the accommodation industry.

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GOOD GOVERNANCE

©christian cantarelli - stock.adobe.com

Caretaker’s guide to managing by-laws on common property One of the common complaints we hear from committees relating to the performance of a caretaking services provider is a perception that the caretaker has failed to properly manage by-laws on the common property.

Sometimes the perception of failure is misconceived because the committee may not realise that it’s not actually the caretaker’s duty to enforce the by-laws, but in some cases, the caretaker is simply not doing anything to monitor, supervise or report by-law breaches and are therefore potentially in breach of their caretaking agreement.

with the by-laws is mandatory.

Occupants can be evicted for failing to comply with by-laws in certain circumstances, so there can be serious repercussions for offenders.

So, what are the caretaker’s duties when it comes to managing by-laws?

Lynda Kypriadakis, Diverse FMX

By-laws are akin to a fourth level of government (federal, state, local and body corporate) where they set down “laws” or “rules” for how occupants and visitors are permitted to behave while in the community property. By-laws are essential to order, control and safety for all stakeholders and compliance

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Caretaking agreement prescribed duty Most caretaking services agreements will have a clause that says something like: “Supervise the observance of the by-laws of the body corporate by the proprietors and/or the occupiers including their guests and licensees…”

What does this mean in practical terms when it comes to the duties of the caretaker? Let’s break down this sample duty and we see a number of “inferred duties” are implied within the wording.

“Supervise”, this term is defined in the ABMA Building Management Code glossary as: “To observe or direct the correct execution of a task”. This does not mean take remedial action against any potential offender, however there are other duties inferred within the term “supervise” if the caretaker is to deem to satisfy this duty. The term “supervise” would require the following actions on the part of the caretaker: being aware of the by-laws and having good knowledge of them, having a presence on the common MANAGEMENT

property that would enable the supervision to occur, having an informal process for bringing any potential breach to the attention of the offender (faceto-face discussion or telephone call). Being able to explain to the offender how they may have breached a by-law (explain what the unacceptable behaviour is that requires remedy, and how it breaches the by-laws). Being able to describe to the offender how they might remedy their breach (explain what acceptable behaviour is required to resolve the breach). Give a timeline for the requested remedial action to occur.

“Observance” (of the by-laws) this term is defined in the ABMA Building Management Code glossary as: “The practise of watching or noticing whether certain requirements are being complied with or achieved”.

Again, this term infers certain duties will be undertaken by the caretaker, including and in addition to those duties listed above: Being able to determine or measure when a by-law is being contravened (understand what behaviours are acceptable and/or not acceptable under the by-laws). Having a log or register to record potential breaches of by-laws, and keeping these records, having a more formal process for issuing a written notice of breach upon an offender, and keeping these records. Having a reporting mechanism for communicating persistent ResortNews | December 2021

breaches to the committee for the body corporate and keeping these reports on file.

Things can become tricky and political for caretakers in circumstances where committee members or other individuals in influential positions become by-law breach offenders. Where the caretaker seeks to maintain a positive working relationship with the committee and their letting pool lot owners, this goal to maintain a positive working relationship may come into conflict with the duty to manage by-law breaches.

We never said it was easy being a caretaker!

Common by-law breaches observed during caretaking performance audits The top five by-law breaches include: 1.

Misuse of visitor carparks.

Lot occupiers and/or their guests using the visitor carpark spaces for long term stays.

2.

Storing household items in carparks. The carpark is not your backyard shed, so household items should not be stored in the carpark, especially if it means your vehicle protrudes dangerously into the circulation aisle of the carpark or driveway area because of all the personal items blocking vehicle access.

3.

4.

5.

Noise or glass at the pool.

Summer is coming and so are the poolside gettogethers, so caretakers should expect to be kept quite busy supervising by-laws, especially during school holidays.

Oil leaks. Lot occupiers are responsible for keeping their exclusive use carpark bays free from oil spills, dirt, rubbish, and stains.

It is not a caretaker’s duty to clean EU areas, but the caretaker is required to notify the lot occupier when their car is leaking oil and causing damage to common property.

Decorations on doors or balconies. Lot occupiers must get permission from

ResortNews | December 2021

notifications – ensure that you reference the by-law identification number when communicating by-law breach or compliance information 3.

Keep a by-law breach register - maintain a log of by-law breaches as you observe them, including comments on the actions taken to correct the breach, and/or notify the committee when the offender fails to remedy

4.

Report persistent breaches to the committee – if you have spoken to the offender and issued them with a written request to comply and they still fail to do so, report persistent by-law breaches to the committee who will enforce them.

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the body corporate if they want to decorate their apartment door or balcony balustrade. Even letting a pot plant vine grow over common property needs permission from the body corporate.

Politics at play

manage the by-laws in the best interests of everyone. A reasonable person would not take this personally nor hold it against the caretaker.

Checklist for caretakers to keep records of vigilance in by-law management 1.

Persons who hold influence and control over the maintenance and care of common property have a duty to act reasonably and with the best interests of all lot owners considered.

This is especially important for committee members, strata mangers and caretaking services providers.

Acting fairly and reasonable includes equally managing observance of the by-laws.

This includes ensuring all lot occupiers are equally compelled to comply with by-laws. While it may be uncomfortable for the service contractor to have a discussion with the chairperson about their caravan being parked in the visitor parking bay for nine months of the year, in order to be seen to be impartially managing the bylaws and compliantly delivering the duties under the caretaking agreement, the caretaker must take this step, have the conversation and record it.

If the chairperson persists with their breach, despite the informal notification issued by the caretaker, the caretaker will need to report the persistent breach to the committee (in writing) for good order’s sake.

The good news is that while the difficult conversation may be uncomfortable to have, 99 percent of people are very reasonable and understand it is the caretaker’s duty to

By-laws displayed - ensure the full set of By-Laws are displayed prominently on common property and that your tenants are provided with a copy at the outset of the tenancy agreement

2.

Reference by-laws in

For further information on gaining assistance in managing By-Laws on the common property, please first contact your lawyer, then review your ABMA Building Management Code.

Problems Prevented - Problems Solved

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS Over 40 years of service to the Management Rights industry, providing assistance in: Buying and Selling Ensuring Agreements Comply with the Law Agreement Negotiation with Bodies Corporate Representation to Licensing Authorities ‘Body Corporate & Community Management Act’ Advice Employee Dispute Resolution For expert advice please contact: Paul Jones Phone: 5570 9327 Fax: 5539 8745 paul.jones@spglawyers.com.au

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John Punch Phone: 5570 9322 Fax: 5539 8745 john.punch@spglawyers.com.au

Jeff Su Phone: 55709 367 Fax: 5539 8745 jeff.su@spglawyers.com.au

Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164 GCMC, Bundall, QLD 9726

19

INTONET

Has anyone seen Rudolf?

Reindeer, Stollen, sox, pork crackling, wrapping paper and white beards!

Some of the words that came to mind when I saw a job advertisement for 600 jolly Santa’s helpers.

You really do not need to be reminded what time of year is approaching.

Then came that vexing annual question of what to buy for whom? And so, my search began.

To my great regret the web has become somewhat of a cesspool filled with misinformation, incredible bias, hate and volumes of downright stupidity and bile.

A hot topic did appear but not for a present. Facebook being renamed to Meta. So what was it and what is intended?

Last week, Mark Zuckerberg, head of Facebook, said it would rename its business Meta Platforms, Inc. Metaverse, generally, is the idea for a new internet based on virtual spaces and virtual reality products.

It has become a subject of much discussion this year.

So, what is a metaverse?

The name was chosen to echo the key product that Mr. Zuckerberg hopes Facebook, now Meta, will be represented by, the metaverse, the name for a shared online 3D virtual space that a number of companies are interested in creating as a sort of future version of the internet.

“In this future, you will be able to teleport instantly as a hologram to be at the office without a commute, at a concert with friends, or in your parents’ living room to catch up,” Zuckerberg wrote in a letter announcing Facebook’s re-branding as Meta.

Actually, this concept already exists and even has psychologists worrying about our mental health.

Now, I am very much a sceptic when web hosted businesses make platform changes. To

20

geographically but your eye movements are also being recorded and analyzed. So far, no more damage than what is already happening every time you surf the web, eye-tracking aside.

I do not know about you, but here I do start to feel uncomfortable.

Arvo Elias, Cybercons

me the underlying reason is always profit. Not just fair-trade margins but numbers which, to me and probably most of you, are incomprehensible.

So, I dug a little further. Today’s technology is quite astounding and one which impresses me greatly is Google Earth. What a great magic carpet ride is there to be had with that amazing data base and coding.

Yet here we go again with what I believe is misuse of a brilliant facility.

One of the intended features of Meta appears to be to take us out, not only to view the world but visit shops, entertainment centres, attend concerts and the like and as the steak knife add says “much much more”.

Seems innocent enough until it becomes clear that other technology already in very wide use can be incorporated.

Imagine you are visiting New York and you wander down 5th Avenue and there is Tiffany’s famous store. If you don’t know that great city you most certainly will have seen images of that wonderful, huge, Christmas tree which is erected just near there each year.

So, what is wrong with that? Nothing!

How can they track my eye movements? The answer is simple: aside from the familiar goggles soon to become defunct your computer, phone or tablet are all equipped with cameras; and don’t we use these for selfies? Of course we do; we are a very vain lot! And that becomes our downfall in this scenario.

When your eyes linger on that magnificent diamond ring or even just that hand beaten silver money clip, Click! The metaverse now knows what appeals to you.

No, actually Meta knows this and is happy to sell that information to the highest bidder. You will very soon receive coercive text or email messages, or your currently viewed web page will become swamped with images of what you glanced at whilst in virtual Tiffany's. The inundating adverts will not necessarily come from that famous store but from the similarly stocked local supplier of such baubles.

The concept also allows for overlays which bring along other avatars to chat with, be guided by their opinions and perhaps even incorporating “live” walking, talking images of your friends.

Perhaps you are happy with that? I am definitely not, because I still prefer to make my own choices and decisions without intrusive and possibly misleading suggestions whilst yet again having become the unwilling commodity for sale.

Who has gained?

If for no other reason than curiosity you decide to have a browse of their display window or maybe even enter the store?

Nothing wrong with that either!

What you do not realise is that you are not only tracked

Mr. Zuckerberg, who can afford to lose many tens of billions of dollars and not flinch. Once more his mountain of cash will grow and you and I will become poorer because we are being outsmarted and led by a virtual hand into a virtual world I, for

MANAGEMENT

one, do not want a part of.

All these things can happen because we are snowed under by endless apps which are required to manage our lives in this ever more convoluted world.

All this is possible because we almost never set the permissions options for all these apps.

Many of us do not even know about the options available and blindly assume all is well.

Once more, please be aware!

But at least you can visit Gunther VI and feel better.

To continue from my earlier digression, like last time, the web became my shopping mall but was it really like last time?

The answer to my rhetoric's has to be no! Looking for a soft toy for my furry friend I found a very stately puppy dog!

Never have I heard of a dog being a multimillionaire! This canine multimillionaire is selling his plush $46.5 million Miami mansion that was once owned by Madonna.

Gunther VI, a German Shepherd, inherited the eight-bedroom property along with a vast half a billion-dollar fortune from his grandfather Gunther IV. The lush nine-bedroom home sits on a 4,800 square metres of water frontage with full views of Florida’s Biscayne Bay. It also features a swimming pool and its own private dock.

The Tuscan-style villa went on sale for $46.5 million on Thursday at a huge markup from the $12 million purchase by the popstar over two decades ago.

So much for that web search; who can compete with that chef pampered pooch? And they call it a dog’s life?

So ends another year but it gives us, my furry friend Muddy and I, great pleasure to wish you and yours a great Christmas and perhaps, with some relief from our fetters, also a profitable year for your endeavours. Me? I’m still looking for presents.

Merry Christmas!

ResortNews | December 2021

If you read my articles, first I would like to thank you, second, you may notice that this month something about my column is a little different.

I asked my favourite editor, Mandy Clarke to change my profile picture and add a few more of me in my natural habitat with a couple of additions to the team, Ryder age two and his new sister Harley.

Now, I pose a question to you, which profile picture do you connect with more? Is it my usual professional headshot or this personal family picture?

Undoubtedly, this week’s picture is raw, it’s me two weeks post-natal, without makeup, wearing my specs and in workout attire. Dressed in gym gear but certainly not because I have been to the gym (I forget what a gym even looks like these days) but purely for convenience.

I have two beautiful children, three beautiful stepdaughters, a loving husband that works FIFO (sometimes away for seven weeks at a time). I work hard every day on my business and at motherhood, I make mistakes, I HATE making mistakes, I am fiercely independent, I am stubborn, I very much dislike losing, I am an optimist and can also tend to look through rose coloured glasses, I am an introvert (which some people find surprising) and I can be a bit of a control freak when it comes to my business…

Don’t be afraid to be unapologetically flawed Kelley Rigby, Managing Director, Letts Rebuild

relationship but, in my opinion, being true to who you are is how you build solid relationships. Your clients want to know YOU, not the you that you think they want you to be (gee whiz there was a lot of YOU in that sentence).

The authentic quirky, quiet, eccentric person that you are is what people will connect with and appreciate. If you try to be someone that you are not, the relationships you form are doomed from the start both professionally and personally.

Here is an idea, when chatting with your clients try to always be genuine and don’t shy away from discussing your kids, dogs, cats, place of birth and so on.

It’s mind blowing the things you discover you have in common with your owners and how much that will help build a relationship.

My dad would call it “finding a common denominator”, but I like to think it is more about creating connections and being true to who you are. Bring back the personal touch to your business.

When I first started my business, I avoided talking about having young kids because I thought people would assume I might be unfocused or judge me for being a working mum.

Once I started to ‘own’ and celebrate that I was a dynamic businesswoman, as well as a fantastic (ok that might be a

stretch) mother I was amazed how much my clients and their clients (outside investors) would respond and connect with me.

Moreover, don’t be afraid to be unapologetically flawed.

We are all humans, and we all make mistakes and yes, we all have our faults, but it’s best to own them. If you aren’t great at something, work on it, but ‘own’ your imperfections, don’t shy away from them.

The moments when I have made instant connections is generally when I have been vulnerable in a conversation with someone, shown them I am human. Funnily some have been after I’ve made a catastrophic mistake, owned it and apologised for it.

Some people think honesty, authenticity, and empathy in business is weak. I strongly disagree, in my experience it is what will make you stand out from the rest.

This edition brings us to the end of 2021, and what a year it has been. Thank you to Mandy, Patrick, Stewart, and the team at Resort News for giving me the opportunity to write this article every month.

I bring to you my authentic self, being unapologetically me.

Why am I telling you all this? Because this is how to effectively connect with people, by being who you are and showing all of you, the good, the bad and the ugly.

To say I appreciate it would be an understatement. I can’t wait to see what I put together for 2022, if you will have me!

Our family wishes you all a Merry Christmas and Happy New Year.

We all know that communication is the key to starting a ResortNews | December 2021

BUILDING RELATIONSHIPS

Being authentic & unapologetically you

Lots of Love the Rigby Tribe.

MANAGEMENT

21

Want to get the best deal on your next repaint?

It might be easier than you think!

Luckily, if you follow these 6 simple rules, you’ll have all the tools you need to choose a high-performance painting solution, without the high price tag.

1. Get a detailed, independent scope of works This may sound obvious, but you’d be surprised how often it’s skipped, leaving bodies corporates with 3 different prices for 3 totally different scopes of works! This often leads to frustration for all stakeholders involved as a clearly defined scope must then be created further down the track and quotes resubmitted.

How do you get a scope of works?

You could engage with a project manager; however, this often comes with a big price tag, and the scope tends to include a lot of frills which drive the cost of the job up, whilst providing little value to your end result.

A more cost-effective way is to engage with a reputable paint supplier such as Dulux or Taubmans. They will be more than happy to assess your building and provide you with a tailored paint specification, which you can then pass on to your contractors.

If you require a comprehensive scope for your repairs, you can simply scan the QR Code at the end of this article. It will ask you a few simple questions about what you see on your building and instantly generate you a free scope of works – without having to speak to a salesperson.

22

Rope access painters – Raffles, Mooloolaba

Items such as “access systems” may be included by one company, but slapped on later as hefty extra by another later on down the track when it comes time to do the job.

and improves your chances of getting the paint job you paid for – not the old “1 coat wonder.”

Don’t accept line items such as “concrete spalling repairs” on your proposal, unless the contractor has provided a detailed breakdown of the exact process that they plan on using to carry out the repair.

If you’re looking for longevity out of your paint work, you should avoid going with colours that are too dark – especially on areas exposed to direct sunlight.

Darker colours absorb more UV, causing the pigments to break down much faster which results in premature fading.

It costs a lot more to carry out a repair the right way, so don’t get caught out by companies who are simply slapping a Band-Aid on the issue, which isn’t going to last.

3. Know who’s doing the job

2. Compare apples with apples

It can be much more profitable for a major painting company to contract out the work to the lowest bidder, rather that completing the works “in-house.” Whilst there is usually some oversight in the form of a project manager, it’s common for the quality of the work to suffer as sub-contractors look for ways to cut corners in order to meet tight budgets.

As the old saying goes “the devil is in the detail.” Pay attention to your inclusions, and perhaps more importantly, your “exclusions.”

Going with a company who manage their own internal painting staff ensures more accountability over the end result

4. Choose the right colours

Don’t want your building to look like a fashion disaster in 10 years’ time? Stick with lighter, neutral colours and avoid the urge to go with the bright, trendy schemes.

Your future self will thank you!

5. Leverage rope access

6. Time it right Many common substrate issues increase in severity at an exponential rate. Whilst it might seem like a cost saving idea to prolong the paint job for another year; leaving remedial issues such as concrete spalling untreated can allow it to spread at an alarming rate.

If there are budget constraints that prevent you from going ahead with a full repaint, speak to your contractor about spreading the scope out over several years, allowing you to nip urgent repairs in the bud now and paint later.

If you’d like a FREE customised scope-of-works for your building, use your smartphone camera to scan the barcode below. It only takes 5 minutes to answer the questions, and puts you in control of your project!

Scaffolding and swinging stages can be costly and have a negative visual impact on your building.

Abseiling is a great way to not only lower access costs, but also reduce the impact of the operation on your residents and guests.

Improvements in rope access methods have paved the way for even complex repairs and largescale high-rise painting projects to be carried out entirely via rope.

MANAGEMENT

ResortNews | December 2021

5 ways to use your guest data for Smart marketing

© apinan - stock.adobe.com

When it comes to hotel or accommodation management, the most important item after revenue is data. In this current day and age this might not be surprising, but are you using your data to maximise occupancy, increase revenue and improve your guest experience?

First things first, who actually owns your guest data?

You? Or a third party?

Guest bookings can drop into your hotel or accommodation business in a multitude of ways; from direct bookings, OTA, GDS, metasearch, wholesale and more. Whilst having a third-party strategy is healthy and necessary to complement your direct booking strategy, are you relying too heavily on third parties? Are you perhaps missing out on valuable data that they’re collecting from your guests and which they’re not sharing with you?

After you determine what data you own, you need to focus on growing your data capture

24

Sylvia Johnston, Senior Executive, HiRUM Software Solutions

as this will give you a bigger “data pool” to work with.

Third-party conversion strategy (data growing) As I mentioned earlier, you’ll most likely have a split of direct and third-party bookings. Your third-party bookings don’t allow you to own the guest data, even though they are your guest, staying at your property. The data from these guests belongs to the booking channel through which the guest made their reservation.

So how can you obtain that data?

There are a few ways to convert third-party data to direct data, one of which is at the time of check-in. When the guest fills out the registration form, ask

them whether they would like to join your mailing list by using a check box on the form. If they have opted-in to the mailing list, you can then add them to your database. Another method is to implement a third-party conversion strategy to make sure your guests see how appealing it is to book directly with you next time. This could be as simple as a direct-booking best-price promise, through a value-add or anything else that convinces the guest that booking direct with you is more appealing than using a third-party. This will result in you owning the guest data from the point of booking rather than when they arrive at your property.

Get creative, have fun and remember beating a third-party price by offering value adds isn’t discounting your rate, it’s saving you from paying commissions.

Now that you have that data here are 5 ways to utilise it Studies have shown that loyal guests stay longer and pay more. So, ensure you’re turning every guest into a loyal guest and make their stay memorable, for all the right reasons. As important as data is, the guest

MANAGEMENT

experience will retain the guests.

Here are 5 ways you can utilise that data to retain guests: 1.

Remarketing: During quiet periods you can use your past-guest data and send them an enticing offer to stay again. As it’s to a Closed User Group (CUG), your offer can be as sharp as you want it to be, as it’s not advertised publicly on other distribution channels

2.

Guest Experience: Use your data to find out personalised information about your guests to improve their experience with you. Are they a red wine drinker? Include a voucher for a glass of red for them on check-in. have you noticed that they always book an entry-level mountain view room?

Upgrade them to the next room type FOC as a value add. Do they like to eat out, dine in or use the spa facilities? Create specialised offers to appeal to them specifically, and in turn encourage them to book direct. Keep in mind guest experience begins from the moment they book ResortNews | December 2021

with you and you begin communicating with them 3.

4.

wifi to improve guest experience. Cleanliness or service letting you down?

Collate the information and use the data to improve your property and service.

Geotargeting: Geo what?

You can use your data to see the location your guests are coming from in order to maximise your marketing spend. Are most of your guests coming to you from a ‘drive market’, within a oneto-three-hour drive? Then stop wasting money on interstate or international advertising, and instead focus on building your base business by increasing your marketing spend in this area Maximise Revenue with Trends: Does your historical data show trends that you can use to forecast and maximise occupancy and revenue? For example, what is your average booking window? Use this information to strategically plan campaigns or offers to your CUG. Is your average length of stay (ALOS) short stay or long stay, greater than 7 days? What can you do to extend short stay bookings? Look at historical

© apinan - stock.adobe.com

data when a large event is coming to town and use it to help you set the right rate to maximise your occupancy and revenue.

Was it a sell-out event last year? Did you fill early on, due to demand? Then you can probably afford to lift your rates even earlier again this year 5.

Guest Sentiment: Data doesn’t have to be all numbers and stats. Online reviews can be a love/ hate relationship with accommodation providers.

However, outside of responding to the reviews, the best way to tackle them is to use the reviews to your advantage. Use the positive ones to understand why guests come to you (view/ service/location and so on) and maximise on this. Share these great reviews on your social channels. Even the negative ones are valuable, use this information and understand your guest sentiment - if the slow wifi repeatedly gets mentioned, it’s time to look at your

To guarantee you are getting the most out of your data, it is important that you are using the right software for your business.

Ensuring that all your software is integrated seamlessly, preferably all built by the one provider, will give you cleaner and more qualified data to work with. Using add on products through various providers will only provide a basic outcome. Whereas using tailored products built from the get-go to work cohesively as one, will always ensure you have total control over your business.

Data can be overwhelming and daunting, but it is invaluable to your business as it enables you to deliver strategic and smart marketing. Take onboard what the data is showing you and use it to your benefit, to always be one step ahead of your competitors.

MANAGEMENT & LETTING RIGHTS VALUATION SPECIALISTS

Management Rights Transactions

1800 664 094

Damian Quinn

quotes@australianvaluers.com.au www.australianvaluers.com.au

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

AUSTRALIAN VALUERS SPECIALISE IN: Holiday Complexes Corporate Complexes Permanent Complexes Student Accommodations Manager Unit Valuations & Rights Time in Motion Reports & Rent Rolls Body Corporate Salary Market Assessments

ResortNews | December 2021

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

25

no hit for managers

By Grantlee Kieza, Industry Reporter

that it was not only the by-law that was being breached, but safety regulations that put the whole property scheme at risk of liability through injury hazard.

Storage wars is a popular American reality television series that has been running for 13 series. But storage wars have also turned carparks into the battlefields of property management.

Requests to install storage structures and the enforcement of by-laws when boxes or structures are put in place without approval, can be a management minefield.

The most common problems concern underground carpark spaces.

Trevor Rawnsley, the Chief Executive Officer of the Australian Resident Accommodation Managers Association (ARAMA) said arguments over parking were one of the ‘Big Ps’ in strata management disputes along with “parties, pets, passive smoking and personalities”.

“People can do the strangest things when it comes to possessing space,” Mr Rawnsley said, “and parking and storage create an almost unlimited amount of argument and conjecture.

“I’ve seen ridiculous things that are just wrong. I’ve seen people build cages around their car park and the poor bugger next door can't get his car door open because the cage cuts into his space.

26

A copy of the Workplace Health and Safety (WHS) audit report was an effective communication tool to reinforce a property’s by-laws.

Mr Rawnsley said another recent area of dispute in carparks was the installation of EV (electrical vehicle) charging ports.

Image courtesy of Boxed Storage

“And I've seen storage organised really well where it is contained within the lot. I’ve seen people put in elevated storage so they can still park a car under it.

“If stored items don’t fit within the by-laws of a property’s parking regulations, they need to go in a storage unit.

“Some of these disputes are not easily resolved and that’s why the by-laws have to be clear so that everyone is on the same page.

“Sometimes there are simple solutions, too. The last scheme I had for example, the body corporate in its wisdom decided not to allocate any parking at all. They decided to remove the occupational authority, so it became a matter of first in best dressed in terms of parking.

“There were 65 units 65 car parks, and you could park right next to the lift if you were the first car in and I tell you what

that was a bloody great idea because no one took permanent possession of a space.”

In an article called ‘Settling Car Park Storage Wars’ Grant Mifsud of Archers Body Corporate Management, said if a resident was storing their property in their car park it was important to check the by-laws to see if the exclusive use area was designated as a car park, storage or both.

Often the car park was allocated only for the parking of a vehicle, Mr Mifsud wrote.

The storage of items, particularly without approval, was therefore a breach of the by-laws.

Mr Mifsud wrote that while the occupant of the lot may have the opinion that items inside a car space weren’t bothering anyone, an effective way to communicate the reasons for enforcement was to highlight

MANAGEMENT

“There's a scheme I know of where two owners have installed electric vehicle charging without approval,” he said. “The body corporate is saying ‘hang on we don't have the electrical capacity to instal an electrical vehicle charging port’ and the counter argument is ‘well it's in my allocated parking space and I can do what I bloody well please’.”

Mr Rawnsley said one of the problems for property managers, especially in gated communities, was more cars than car parks, meaning cars were often congesting visitor parking areas and surrounding driveways.

“Some landlords are even converting their garages to bedrooms making the problems worse,” he said.

“The landlord doesn't care where the people park because he doesn't live there.

“From a management rights point of view, it causes real problems because the resident manager is then seen by some of the residents as parking police, ResortNews | December 2021

©Rashevskyi Media - stock.adobe.com

Storage wars

even getting calls in the middle of the night, and that’s not the role.”

Mr Mifsud wrote that if a resident wanted to install a cupboard or cage in their car park and those by-laws allow for storage within the exclusive use area, “a set of standards can be adopted to maintain a uniform approach for either the entire car park or for particular car park types”.

He said that by-laws allowing storage and car parking in the same space were usually allocated “on the basis that there was sufficient room for both”.

If there wasn’t enough space to park a vehicle and install the proposed storage device, Mr Mifsud wrote that “declining the request … would be considered reasonable in most cases.”

ResortNews | December 2021

He said examples of some bylaws that have settled storage wars included stipulating that the storage box was to be an “over bonnet type” no wider than the allocated car park and that they were to be uniform colours such as cream.

The lot owner was to be responsible for any council, building, fire safety or any other required certifications prior to installation and that all items to be stored within the approved device must be non-hazardous.

If the locker had to be removed due to non-compliance with the by-laws, removal would be at the owner’s cost.

Property Manager Georgina Bishop, from Brisbane’s Newstead Terraces, said it was important to let residents know

Images courtesy of Boxed Storage

as soon as possible if they were in breach of by-laws.

“Those by-laws have to be written in plain English so there is no doubt or dispute over them,” Ms Bishop said, “and I think every committee should have its by-laws reviewed so that they are appropriate for the building and enforceable.

“If carparks are allocated just for parking cars, it should

MANAGEMENT

immediately stop any resident from storing cupboards and other things in that space.”

Mr Mifsud wrote that in his experience, the most productive way to settle any storage war was for the decision-making process “to be flexible enough for individual needs and future circumstances with a consistent approach to by-law enforcement when the standards set for all are not met.”

27

TOURISM REPORT

©Romain Terpreau on unsplash.com

Summer fires up hopes for Gold Coast revival

By Grantlee Kieza, Industry Reporter

in visitors – one our tourism operators truly deserve.

The Gold Coast is gearing up for a bumper summer after almost two years of COVID chaos.

“We hope this summer will be the turning point for Gold Coast tourism as our state’s borders open and our industry heads into recovery mode.”

Even though a serious COVID outbreak in Moree in northern New South Wales saw Queensland tighten its border rules last month, Queensland deputy premier Steven Miles says the state plans to reopen on December 17. It has now been confirmed, at that time the gates will fully open to the double vaccinated.

COVID has caused a massive economic haemorrhage on the Gold Coast which lost $3.2 billion in the last financial year after lockdowns and border closures.

Destination Gold Coast CEO, Patricia O’Callaghan told Resort News: “We know our southern states have missed the Gold Coast as a holiday destination.

“The Gold Coast is Australia’s number one playground and top searched destination across booking platforms. So, this summer, we anticipate a boost

28

Visitor expenditure was down almost $1billion for the September quarter compared to the same period in 2019, while Tourism and Transport Forum research shows Gold Coast tourism jobs have been cut by 20 per cent.

Federal Minister for Employment, Workforce, Skills, Small and Family Business, announced that the Federal Government and the Queensland Government in partnership had extended a further $70 million into the tourism industry, $40 million for a second round of the tourism hardship fund, and an extra $30 million for major iconic attractions, that had “revenues north of $50 million, attractions that have been down in attendance and revenues by up towards 60 to 70 per cent.”

He said the announcement guaranteed thousands of jobs.

Clark Kirby, the Group CEO of Village Roadshow, said the tourism industry, had likely been the hardest hit industry throughout the pandemic.

There are 4600 tourism businesses on the Gold Coast, with 35,000 businesses relying on tourism dollars.

Things are starting to look sunnier for them, though.

In September, Stuart Robert, the

“And it's been month after month after month of really just doing it very, very tough, he said. “… we want to just be able to open our gates to all

TOURISM

of Australia, to be able to start bringing more people on, even creating more jobs than we ever have before. Putting more investment into Queensland and really welcoming everyone from all around Australia.”

The high hopes for a tourism revival on the coast could be tempered by the State Government’s refusal to open borders to international arrivals until a 90 percent vaccination target is reached.

But the Coast has received a huge boost in reputation internationally after global travel authority Lonely Planet named the Coast’s Scenic Rim hinterland as one of the world’s hottest destinations for travel next year.

The Scenic Rim, just 30 minutes from the heart of the Gold Coast, is the only Australian destination on this exclusive list. It placed number eight on Lonely Planet’s top 10.

ResortNews | December 2021

The most welcome Queensland schoolies yet! ©Luca Laconelli on unsplash.com

By Mike Parker-Brown, Industry Reporter

Described by authorities as one of the bestbehaved schoolies weeks ever with the worse injuries seen across the annual rite of passage being experienced on the dance floor plus a few hangovers.

Certainly, Queensland’s school leavers, the only ones allowed to attend this year’s event while their counterparts in other parts of the country looked on with green-eyed envy, have left an overall very good impression on the Gold Coast and Sunshine Coast after an almost two-year absence.

Schoolies.org.au director, Dominic Mapstone said the long-suffering accommodation industry saw the schoolies as “probably the most welcome group of tourists seen in Queensland for quite some time.”

While the Queensland-centric numbers may not be reaching the numbers of previous years prior to COVID when the rest ResortNews | December 2021

of the country was allowed to come and play, a sizeable chunk of the Sunshine State’s 53,000 school leavers hit the Gold Coast and Sunshine Coast this time around and certainly made their presence felt.

According to Mr Mapstone’s figures, a total of 15,800 schoolies registered for this year’s Gold Coast event with 12,550 of that number actually collecting the wristbands required by those wishing to attend special alcohol-free events taking place across the week.

Numbers on the Sunshine Coast, he said, would probably be well under the 5,000 figure being touted in the media.

“It’s a lot more relaxed environment on the Sunshine Coast and most of the schoolies heading there actually prefer Mooloolaba,” he said.

“But wherever they went, it’s unlikely in recent times that any group of tourists has been made more welcome by Queensland’s accommodation sector.”

Mr Mapstone said that while large numbers of schoolies traditionally made their way to the Gold Coast every year, not

everyone wants to join big groups of young people celebrating the end of their school years.

Gold Coast Acting Chief Superintendent, Rhys Wildman said the change was good to see.

Many, he said, like to do their own thing away from the organised events.

"Looking back at the last five years … the figures so far reveal that this cohort of schoolies are actually the best," he said.

“People need to remember it’s all about spending special time with your friends before you head off into a new life and you don’t need to be on the Gold Coast, or in Fiji or Bali to be able to have that celebration.

“The schoolies experience at its core is the mad dash down the beach with your mates and the jolting emotional relief when you dive in the ocean and realise school is finally over.”

Schoolies Advisory Group chairman Mark Raeburn said volunteers had reported "respectful" interactions with school leavers, as well as witnessing them helping out mates and others outside their friendship circles.

Police say the majority of the weekend's minimal issues stemmed from ‘Toolies’, with only six school leavers among 27 arrests, all of which were for minor matters, including public nuisance.

TOURISM

The annual rite of passage ran until November 26, with teenagers travelling from all over Queensland to celebrate at Surfers Paradise and on the Sunshine Coast.

Around 600 Red Frog volunteers were once again high-profile, handing out over five tonnes of Allen’s Red Frogs this year, cooking 50,000 pancakes, organising hundreds of walkhomes and taking 10,000 calls in the Red Frog call centre.

Visit Noosa chief executive, Melanie Anderson was reported as saying not all accommodation providers had accepted schoolies bookings, but those who had felt positive about the event.

November, she said, is traditionally a quieter period outside of the official school holidays, so the additional bookings were fantastic.

29

What about “Women In”?

APPOINTMENTS

EVENTS

The last luncheon of the year was held at the beautiful Greendays Restaurant & Bar.

30

Marisa Millane said: “The atmosphere was light and joyful. As we arrive at the end of another unusual year, it was such a lovely time where we could all gather our thoughts, share our stories and celebrate our wins. I would like to wish everyone a very Merry Christmas and I look forward to seeing everyone in the new year."

Brett McCracken appointed as new Business Valuations Director, Australian Valuers Brett has been working as a Property Valuer for over 25 years. Brett has been in the management rights valuation business for the last 15 years.

EVENTS & APPOINTMENTS

Adrienne Readings is named Destination Gold Coast’s new Chairperson Adrienne is the General Manager of the Gold Coast Convention and Exhibition Centre. Her appointment follows the step-down of former Destination Gold Coast Chairman Paul Donovan, who held the position for 17 years.

ResortNews | December 2021

ARAMA on the road Last month Trevor Rawnsley took the 2021 ARAMA Roadshows to Mackay, Airlie Beach, Port Douglas, Cairns, Sunshine Coast, Gold Coast and Brisbane.

Special thanks to Sandra from Nuvho Hotel Services & Management Company and all the guests who produced educational presentations. If you didn’t make it to any of these events, look out for the exciting ARAMA Roadshows to come in 2022.

36th annual Queensland Tourism Awards 2021 The Queensland Tourism Industry Council (QTIC) presented a total of 81 awards across 31 categories. The big winners were the Sunshine Coast and Outback Queensland winning a combined total of 21 of the 81 categories, including nine Gold Awards.

ARAMA attended the Queensland Tourism Awards 2021

The Queensland Tourism Awards 2021 - Trevor Rawnsley (ARAMA CEO), Sue Watson and Brent Jones (GOLD Winners - Pinnacles Resort).

The Sunshine Coast Social Lunch Event on the 19th of October at Alex Surf Club.

Looking for directions? ARAMA President Guy Elliot and ARAMA CEO Trever Rawnsley with the voice of Siri - Karen Jacobsen.

The Airlie Beach Roadshow Sandra Swatton (Nuvho), Chris Traill (EBM) and Jo Mathews (Toscana Village Resort).

The last ARAMA Roadshow of the year for 2021 at Brisbane Comslie Hotel, 23rd Nov

ARAMA Brisbane Roadshow presenter Chris Traill (EBM).

ARAMA Brisbane Roadshow presenter Sandra Swatton (Nuvho).

Barefoot Bowls Social Event with Australian Valuers Like-minded MLR colleagues kicked off their heels alongside the Australian Valuers team at Mooloolaba Bowls Club.

Everyone enjoyed an afternoon of drinks, nibbles and of course a friendly bowls competition!

ResortNews | December 2021

EVENTS & APPOINTMENTS

31

EVENTS

The 2021 PRET Australia Awards night Photography: Candy Vision

Generosity was overflowing at one of the biggest nights in the Brisbane management rights and real estate industry calendar. Resort News was privileged guests alongside over 350 attendees from across the industry who arrived in style, to the beautiful Grand Ball Room in W Hotel Brisbane.

PRET specialises in mentorship and training for the Queensland real estate industry and the awards were an opportunity to celebrate Brisbane’s rising real estate stars, onsite managers, and top real estate agents.

The event also highlighted the generosity of this community of industry professionals who made incredibly generous donations to the worthy charities, raising over $70,000 on the night for The Lord Mayor’s Charitable Trust, The Mater Foundation and the Small Steps for Hannah movement.

PRET CEO and the MC for the night Paul Shih put together a full and fantastic industry celebration.

Paul is one of the most wellknown Property Investment Advisors in the Brisbane Chinese community, and he actively shows a commitment to giving back.

34

PRET Award winners The Top Agent Awards winners: Owen Chen of Place Sunnybank, Claire Dai of Kollesche, Eric Li of Ray White Sunnybank Hills, Leo Liu of NGU Real Estate, Sally O’Neill of Belle Property Hope Island.

Rising Star Award winners: Rick Chen of Ray White Sunnybank Hills, Andy Guo of Place Sunnybank and Leo Li of All Properties Group North Lakes.

EVENTS & APPOINTMENTS

ResortNews | December 2021

ResortNews | December 2021

EVENTS & APPOINTMENTS

35

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Tourism Brokers’ Victorian Sales Executive, Andrew Cronin, successfully settles another property, with the sale of Rose Garden Motel, Geelong, from Ken & Helen Walsgott to the new owners, Vinnie Sidhu & Iqbal Singh Sidhu.

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Victoria

Russell Rogers, Senior Executive Broker with new purchaser Pritpal Singh.

Note: Agent/Broker involved in the sale is listed last.

Resort Broker's Russell Rogers has just completed another deal ... the sale of the Colonial Lodge Motor Inn at Yass which was bought by Pritpal Singh from vendors Chris & Maryanne Copeland.

36

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

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The team at MR Sales would like to wish all of our clients and colleagues a very Merry Christmas. Best wishes for a safe and prosperous 2022.

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OFF THE PLAN 198 APARTMENTS

70% PROJECTED INVESTORS

25 YEAR AGREEMENTS

The Marker

Melbourne, VIC On the rise - Melbourne’s newest off the plan mangement rights.

We are delighted to present the off the plan management rights to The Marker. A stunning trio of residential buildings designed for short-term and permanent occupation. Located in a vibrant neighbourhood nestled between the CBD and Docklands, this large-scale development has superb inter-city connectivity and access to an array of eclectic amenities.

Beautifully designed and impeccably styled, on-site facilities include a garden courtyard, resident lounge area with kitchenette and dedicated dining space along with conference and meeting rooms. There are five retail tenancies on the ground floor and Aldi has been secured as a key tenant.

The Marker is an ideal opportunity for an experienced operator to establish a sizeable short-stay business in a high-quality building. Directly adjoining the main foyer is a freehold operational space, ideal for reception / back office / back-of-house etc, ensuring an efficient and secure operation for the purchaser moving forward.

This coveted opportunity comes with brand new 25 year Facilities and Letting Agreements, a strong 70% projected investor profile and is underpinned by a solid $200,000 Owner’s Corporation Salary.

Three buildings comprising a total of 198 apartments Good mix of 1, 2 and 3 bedroom layouts Designed for permanent and short-term occupation 25 year Letting and Facilities Management Agreements Projected 70% investor profile based on sales to date Construction is well-progressed and due to complete in Q2 2022 $200,000 Owner’s Corporation Salary Designated freehold operating space adjoining main foyer Cleaning and storage rooms Five retail tenancies on ground floor

Price Expression of Interest

Tim Crooks

Alex Cook

Director

Director

0417 544 562

0467 600 610

tim@resortbrokers.com.au

alex@resortbrokers.com.au

M A N AG E M E N T R I G H TS S POT L I G H T

DECEMBER 2021

The gold goes to Brisbane with “Magnificent Seven” ©Brisbane Local Marketing on unsplash.com

Brisbane has won the rights to host the 2032 Olympics and ten years out from the sporting extravaganza permanent management rights businesses in the river city are proving to be gold medal performers.

in Bowen Hills which are returning $1.95 million. They are expected to be the first buildings to achieve above the “Magnificent Seven” multiplier.

The guide price is $14 million.

In February 2017, Tim Crooks, the Director of New Developments Nationwide, for ResortBrokers, achieved a $26 million sale to Mantra of FV by Gurner, the first Peppers in Brisbane.

“The reason it’s taken four or five years to break the previous multiplier record is because any of these permanent businesses returning more than say $800,000 to $900,000 are just so tightly held. They are such great stable businesses with great incomes and people don’t want to let go of them. It’s exciting to get another property where we can reach the elusive seven times multiplier.”

The property, spread across three towers, contained 918 apartments and 72 hotel rooms making it the largest off-the-plan management rights ever sold in Australia.

There was little change from $10 million when Mr Crooks sold management rights to Central Village in Bowen Hills, a $1.5 million net profit building that went for a then record 6.6 multiplier.

But Mr Crooks says in Brisbane’s booming market, that multiplier will be smashed with the sale of very large permanent management rights buildings with two body corporates

40

“Already two parties have indicated they are willing to transact at that level,” Mr Crooks said.

since we set the multiplier of 6.6 and although we hold the record, we are confident we will break the record with these latest properties. It’s exciting to think we will soon reset the top of the market."

While CBD properties relying on corporate travel and tourists have struggled through COVID lockdowns, permanent rental properties in Brisbane are on top of the podium as profitable businesses that continue to rise in price and popularity.

Mr Crooks said the multipliers across the industry had strengthened since he sold Central Village.

“We are now selling $500,000 properties at multipliers between 6.1x and 6.4x,” Mr Crooks said.

“Anything over $1 million net profit we call ‘Super Rights’, highlighting the super large properties.

The market has moved on

John Mahoney

John Mahoney, a founding partner in the law firm Mahoneys, ARAMA’s top service provider of the last three years, says permanent management rights in Brisbane will “go from strength to

PROPERTY

strength” over the next decade.

“There are more and more buildings popping up every day,” Mr Mahoney said, “and anyone in the permanent rental market in Brisbane is doing very well.

“Rents are rising, vacancies are low, and the multipliers are high, so the businesses themselves are going well and they are very much in demand to purchase.

“Unfortunately, those managers who have complexes in and around the CBD which are used for short-term rentals are still struggling because of the closure of the borders. They have been hit as hard as any other tourism area in Australia and have also suffered from the drop in corporate travel.

“There was some response when the borders were opened, and things picked up dramatically but the borders closed again and those businesses have struggled since.

“I think when the borders are reopened though, there will be a resurgence of visitors to Brisbane.”

Mr Mahoney said the majority of properties under management rights in Brisbane ResortNews | December 2021

were permanent letting properties in the suburbs.

“In the permanent space where there is little volatility, they represent great businesses and that is why they are in such high demand,” he said.

Mr Mahoney has been involved in management rights for some 30 years.

“Some first-time buyers do not fully understand what they have bought, but that is changing fast, and most buyers now realise that you just don't buy management rights and watch the money come in. It can be hard work, and you have to work at it to keep everybody on side.”

“I got involved about 15 years after the business of management rights kicked off in the late 1970s,” he said.

“The price of management rights in Brisbane was always under that of the Gold Coast and you were looking at multiples of three in those days. The multiple has more than doubled in that time and there are a much larger number of big complexes in Brisbane now generating those high profits pushing the multiples even higher.”

Mr Mahoney said another major change in Brisbane property management rights in recent years has been the large number of Asian investors purchasing management rights businesses.

He estimates that as much as 80 percent of management rights in Brisbane are held

by Asian investors.

“These buyers perceive management rights as being sound investments, looking primarily at the returns these businesses achieve,” Mr Mahoney said.

“However, it is important that first time management rights investors understand how much work is involved in achieving the outcomes rather than just focus on the return.

“I think word of mouth has been a biggest factor to attract Asian investors to become involved in management rights in Brisbane and there are some very active brokers selling management rights to this market. Word gets around. It is an attractive business with good returns that also meets visa requirements, and there are not too many businesses that you can buy with such big returns alongside a long-term contract with the body corporate.

“However, all people investing in management rights need to understand that a body corporate is not going to pay you a $150,000 salary to do very little.

ResortNews | December 2021

Trusted Business Advisors to the Management Letting Rights Industry Specialist Business Advisors to the Management and Letting Industry Robert Collins

Leading RAAS broker Robert Collins purchased rights to three high rise towers in 2003 in what was arguably the largest privately owned MR in Brisbane.

• Due Diligence Reports • Trust Account Audits • Structure Advice & Tax Compliance

As a first timer in the industry then, he says he now always recommends newcomers to the industry complete a course for new managers, such as that overseen by ARAMA. He maintains that management rights is one of the safest havens for investment.

“COVID didn't affect permanent management rights in Brisbane at all, and it was the same when the GFC hit,” Mr Collins said.

Build your business Gain personalised support, proactive solutions, and trusted advice to fast-track the growth of your business.

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“What other business can you buy where a large part of your income is governed by CPI going up each year? In southeast Queensland there's less than 1 percent vacancy rate for permanent letting.” Mr Collins has sold more than 400 management rights and the multipliers are rising.

“I've got one coming up which is a $700,000 income apartment complex very close to the city with a 6.5 multiplier and it will go for that as most of the big ones are tightly held and not coming back onto the market,” he said.

“Two big ones I've sold were Belise which was an $8 million deal on Saint Pauls Terrace, and Harbour One and Two at Hamilton which was a $1,225,000 income off-the-plan.”

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Smiljan Jankovic 0423 595 910 SmiljanJ@agredshaw.com.au

www.agredshaw.com.au 41

Alex Cook

Alex Cook, a Director of ResortBrokers, who focuses on larger management rights transactions nationwide, said even with COVID lockdowns, permanent letting properties had remained “very stable businesses” throughout the pandemic.

“Our company was doing big management rights deals when Australia was in a national lockdown just after COVID broke out,” Mr Cook said.

©Casey Schackow on unsplash.com

“COVID hasn’t damaged their performance at all and if anything, it's probably pushed multipliers up in the permanent sector.

“The six times multiplier was always a bit of a benchmark in Brisbane, but you only got to that with the really big management rights. That’s changed over the last three or four years. We sold a portfolio of three smaller management rights, three

completely different businesses - netting about $450,000 and we sold that at 6.3 times whereas going back four years you would need to be netting $800,000 to $900,000 to get that figure.

add-on businesses, properties that might be netting 60 or 70 grand with no unit attached”.

“Certainly, at the bigger end of the market now, anything netting over $300,000 profit there's very little stock and that's pushing up multipliers.”

“They are really popular,” he said, “but probably where the market hasn't grown a huge amount is the smaller management rights that are netting a $100,000 to $200,000 and where you have to live on site in a fairly expensive unit.”

Mr Cook said there had been strong activity with “little

But Mr Cook said when it came to the short-term rental buildings

Anton Chou: Key to success is finding the right guidance Anton Chou was introduced to management rights by a client who was a building manager.

Anton told us: “He knew I was struggling with my worklife balance in my previous career and suggested I would achieve more balance in the management rights industry because not only is it safe and secure, but it also offers agreed hours and clear professional boundaries.

42

Anton chose to buy a management rights business in Brisbane because he considered it to be a lower risk location compared to other states and the city also offered more choice of complexes.

“Robert Collins from RAAS helped me to avoid common errors and he offered guidance on the best industry training from ARAMA,” he said.

He said: “The city location was a priority, but I also wanted convenience and a lifestyle that suited me.”

“I visited four management rights business before I made my decision. To save time, I was clear on the location, and size of the business before inspecting any buildings.

Being new to the industry, Anton says the key to the success of his purchase was finding the right agent, industry professionals and vendor.

“I chose this West End building because it was at my price point, and I loved the area. It sits the centre of an exciting and developing urban hub

PROPERTY

with supermarkets, schools and Brisbane City all within walking distance but most of all the building’s residents are warm and respectful.”

Anton believes it’s essential to meet and work with respected industry professionals so that you are armed with accurate knowledge.

He added: “I was lucky to find Hynes Legal and my agent Robert Collins to give me the best advice.”

ResortNews | December 2021

funding. The debt servicing of the $1.0 million apartment plus the business essentially has to come from the net profit.

start making good returns next year once the borders open.”

Brisbane rents have risen by anything from 5 to 20 percent according to Smiljan Jankovic, the Managing Director and management rights specialist for the accounting and business advisory firm Archer Gowland Redshaw.

“This means that you have to find a good deal of cash at the outset, as it’s very unlikely the bank will lend you the normal 70 percent.

Businesses that have this issue were difficult to sell before the present boom conditions and now with strong market movements, it has only served to exacerbate the problem.

“The rising rents have been driven by people wanting to come to Brisbane where there's work and where there is more security,” Mr Jankovic said.

Smiljan Jankovic

in Brisbane there had been little joy and few sales during the last two years of the pandemic.

“City apartments have traditionally relied on international tourism, corporate travel and major events and all three of those have been curtailed by COVID,” he said.

“Fortunately, everyone knows that things are going to come right eventually.

“People with short-term management rights are sitting tight and I expect they will

“There's a shortage of rental properties in Brisbane which is good for the management rights business because operators are getting more on commissions and from rentals.

“The industry is going to grow even stronger in Brisbane. The Olympics will help that with more demand for properties and more focus on the city.

There is also the big casino development happening in Brisbane and that's going to make the market even stronger.

“Even with higher multipliers,

Greg Jorgensen

people will still be grabbing for good complexes.”

Rising real estate values in Brisbane can be counterproductive in the management rights field, according to Greg Jorgensen, the founder of Management Rights Brokers Australia.

“When you've got a unit worth a million dollars and the net profit is only $100,000, then you've got a more difficult business to sell, “Mr Jorgensen said, “with the principal issue being bank

TheManagement Rights Lawyers

“At the other end of the scale you have properties returning $400,000 to $600,000 net profit, and the real estate attached to it is only $500,000 to $600,000.

Then you have a good level of income to service the loan. In these situations, and as long as they're reasonably priced the market is paying somewhere between a 6.0 and 6.5 multiplier.

We can't get enough of properties like that to sell.

“Return on investment is the key!

Average returns on investment for management rights is somewhere between 15 and 18 percent per annum.” P46

MANAGEMENT & LETTING RIGHTS VALUATION SPECIALISTS

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www.mahoneys.com.au ResortNews | December 2021

quotes@australianvaluers.com.au www.australianvaluers.com.au AUSTRALIAN VALUERS SPECIALISE IN: Holiday Complexes Corporate Complexes Permanent Complexes Student Accommodations Manager Unit Valuations & Rights Time in Motion Reports & Rent Rolls Body Corporate Salary Market Assessments

PROPERTY

PROUD MEMBERS OF

43

The Resort Accommodation and Sales (RAAS) Brisbane team

Robert Collins, Director of Sales Management Rights

Mathew Anderson, Senior Management Rights Broker & Unit Sales Executive

Robert Collins, Director of Sales Management Rights

Mathew Anderson, Senior Management Rights Broker & Unit Sales Executive

Robert Collins is an Associate Fellow of the Australian Institute of Marketing, with a degree in management majoring in marketing. Robert has been a fully licensed real estate agent since 2003 and a qualified Justice of the Peace.

After working overseas for 18 years, running international breweries for Heineken and Warsteiner, Robert returned to Australia and in 2003 purchased the management rights of three high rise towers at Dockside, which at the time was arguably the largest privately owned MR in Brisbane.

Robert and his wife managed this business for three years, after it sold Robert joined RAAS. Over the last 14 years Robert has sold over 400 MRs, this means 109 managers are currently running MR which he has sold!

He is a specialist in ‘Off The Plan’ as well as both large and small management rights including some of Brisbane’s most iconic buildings, including Harbour 1 & 2 and more recently Belise, an almost 300 room corporate MR. Robert is well respected by both buyers and vendors for being frank and honest with his appraisals. Accountants, lawyers, valuers and financiers know him as a consummate professional he is happy for

44

ResortNews | December 2021

Qualified in business and marketing and with a background in sales coaching and consulting, Mathew´s knack for employing the latest technologies to effectively market property gives his clients a winning edge.

Matthiew Hogg, Senior Management Rights Broker & Unit Sales Executive

you to check out his bonafides with any MR professional.

Robert says: “If you are wanting to sell or buy or just have an honest appraisal of what your business is worth, give me a call.”

Matthiew Hogg, Senior Management Rights Broker & Unit Sales Executive Matthiew Hogg holds a Bachelor of Business Management (Real Estate and Development) from the University of Queensland and is also a fully licensed real estate agent (principal).

Matthiew recently acquired a new management rights business after also selling his last one early in 2021 and still maintains his organically grown rent roll and property business around Brisbane.

He previously worked at a

large financial organisation in their property department, at different times being directly responsible for industrial, commercial and retail properties nationally. Additionally, he has extensive experience with residential property, body corporates, management, renovations and sales. Mildmannered but determined, he is quickly building a reputation of success and cites integrity, honesty and authenticity as key to his success.

He has experience working closely with stakeholders and delivering strong and positive outcomes.

With his career and business experience, along with his passion, drive and commitment to helping others, Matthiew Hogg says he can help you today, so “let’s get started”.

PROPERTY

He says: “By harnessing the power of the marketing technology now literally at our fingertips we can optimise property campaigns to maximise results for you, in your suburb.”

Mathew likes to provide tailored client property solutions in each suburb and make them stand out in the market, rather than a one size fits all approach.

Career highlights include Top 100 Australia Salesperson in 2018 as well as coaching and consulting award winning businesses including Telstra Small Business of the Year 2014 NT, Winner Australian Small Agency of the Year 2015, Real Estate Institute of Australia.

By keeping his finger on the pulse of the latest trends and movements in the Brisbane real estate market, Mathew offers his clients top-notch guidance from start to finish, ensuring the entire process is seamless, efficient and rewarding.

ResortNews | December 2021

01

Management Rights

Times are now a changing The Brisbane market is a changing scene, it is constantly evolving.

When I first started years ago, many things went through to the wicket keeper but not today. I believe this is not a bad thing.

Buyers are much better protected. I don’t think the Due Diligence accountants and lawyers have changed much but banks now take their time to do their thing.

We used to get finance approvals in 7 days, now it is up to 30 to 40 days.

The Body Corporate appointed lawyers were all much the same, but today their prices vary by up to 300% depending on who you get.

Be wary and please talk to your Body Corporate

manager and give them 3 to 4 options so as you are not stuck with a high price lawyer.

Agreements were easy to get topped up. In many cases they are still easy as long as you are a good manager. So again, I am fairly neutral on this as usually it is the average managers who have trouble.

As far as the market is concerned, what we are seeing is fewer listings. Most web sites are reflecting one third of the stock that they were prior to COVID. Vendors are hanging on to their properties longer, multipliers are still going up.

Management Rights has always been an industry that wants between 18% to 25% return on investment.

This in essence, means the maximum any astute buyer will pay is a 6.5 multiplier for a very large income.

Buyers want 20 plus years on the agreements, preferably, no unit to buy, no office hours etc. Unfortunately, less than 5% of Management Rights fall into this category and can command a much larger multiplier.

Choose your broker carefully, check their credentials and track record. Management Rights is still one of the safest businesses to buy and gives you one of the best returns as well. I feel very fortunate that I have been involved in this industry for the last 15 years..

Brisbane Properties For Sale Wakerley

Fabulous Bayside Complex

A must see home and business with bayside living. Motivated vendor to retire. All serious offers considered You will fall in love with the Managers residence. Excellent condition. Long term (22.5 years) still to run on Agreements, great catchment area for tenants, larger than normal rental properties, no vacancies all year round close to Moreton Bay, schools and shopping centres. Excellent Body Corp Committee Beautiful & easy to run complex by one person. Do not let this one slip through your hands. Owner may have pet with B/Corp approval. Neat and tidy complex. Close to shopping centre with Medical & Dental and supermarket facilities. Both internal and external rentals are included in the price.

Contact: Robert Collins, robertc@raas.com.au, 0404 678 792

Income: $141,000 Business: $699,000 Home: $659,000 Total Price: $1,358,000

Nundah Two complexes close to each other (5 minutes apart)

These two complexes 10 minutes apart are sold as one. There is only one unit to buy and one office.

Total complex could be run by one person. Manager’s unit is beautiful. Close to all transport and shopping. This is a great opportunity to purchase a bigger complex that is new.

Contact: Robert Collins, robertc@raas.com.au, 0404 678 792

Income: $286,526 Business: $1,691,000 Home: $699,000 Total Price: $2,390,000

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management rights to recover further. Whilst they’re all experiencing solid trading results, almost across the board, potential buyers remain wary that there could be more COVID induced lockdowns.

Simply, the concern is no guests equals no business.”

Mr Jorgensen went onto say that Brisbane holiday/ corporate businesses are “trading their heads off and have been the last 18 months”. ©Steven Ungermann on unsplash.com

P43 “That’s a great return when considering what your money is returning in the bank right now, which is more in the 2 percent range.”

Mr Jorgensen said he was optimistic about the future of management rights in Brisbane.

“We've got an incredibly buoyant residential real estate market at the moment with places selling within a week or two, without issue” he said.

“I'm not putting management

rights in the same category as houses or units, we are in a different world. But, when people start coming over the border again, there will be an awful lot of people coming and wanting to change their lives.

Management rights could well provide them a great opportunity.

“That migration is going to keep the residential real estate market very buoyant for most of 2022 and for the foreseeable future. People are going to want to live in Queensland when the borders reopen!

“The positive benefit for management rights owners, of this increased migration, will be strong rental demands and my predictions is that rents will rise markedly. Additionally, this will entice more investors into the Southeast Queensland market.

“That will be great for property managers and management rights throughout Southeast Queensland and will have a flowon effect for most of the state.

“I would love to see the buyer demand for shortterm corporates and holiday

The future: Professional residential complex management Duncan Allan is the CEO of Resplex, a professional residential apartment complex management business.

Recently Duncan added to his company’s management rights business portfolio when he purchased two more complexes, HQ and The Edge Apartments, residential buildings located in Chermside, Brisbane. With a background in real estate and property management, Duncan told us that buying management rights felt like “a perfect fit for his skill set which were easily transferrable” to this sector.

Duncan now owns six MR businesses in Brisbane, and he plans to continue to add more buildings if they fit his strict criteria.

46

where he works, so that he can easily attend meetings and build relationships with the bodies corporate, residents and investors.

He looks for permanent management rights buildings with a good mix of owners and investors, alongside secure rentals in a stable rental pool offering good returns for investors. He has a minimum salary that will be acceptable to him in order for him to employ staff, and he only buys the MR business not the real estate, so that they can be managed offsite.

Duncan Allan

Duncan is very clear about the management rights businesses he will consider.

Location is the priority, he only buys in Brisbane because he likes his properties to be near

He said: “Agents were given my criteria and I waited for them to proactively come back to me with suitable properties.

Greg Jorgensen from MR Brokers understood what I was looking for and presented HQ

PROPERTY

“Most of my short-stay clients are booked out for the Christmas and New Year period, plus a number of them have great forward bookings through to Easter 2022,” he said.

“The 2022 Easter bookings is a strong signal of a very strong year ahead. The management rights market survived the GFC and came out of that reasonably unscathed. History is repeating itself and again we are seeing limited effects only for the wider industry.

“The industry we work in is highly resilient.”

and The Edge Apartments.

Once under contract Greg very much brought the two parties together as opposed to the ‘Mexican standoff ’ often experienced when using other agents. This made the process a lot more enjoyable and practical it was a real value add from MR Brokers.”

Duncan recommends working with professionals who are knowledgeable about the industry.

He added: “I am keen to double my portfolio of management rights businesses in the Brisbane area because I believe in the future of management rights and the strength of the rental market. I think the sector will continue to be strong. I believe owners and stakeholders want and deserve to receive professional residential apartment management. We are in this for the long haul and will continue to purchase suitable buildings when they become available.”

ResortNews | December 2021

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Enoggera Townhouse built in 2008 and consists of 39 townhouses units which 24 are in the current letting pool. All townhouse units come with 3 bedroom and 2.5 bathroom and 1 garage. Included in the sale, a larger standalone managers unit with 3 bedrooms, 2.5 bathrooms, office room, double garage, and additional designated car park space for manager. Kelvin Grove Apartments is a business only apartment consisting of 18 units with 12 units in the letting pool. The location is superb which is situated right next to QUT Kelvin Grove and Kelvin Grove college attracting both students and workers. A very small common area with minimal duties which can be easily managed and maintained.

This absolute riverfront business, offering a mixed range of lettings, including permanent, holiday and corporate, is on the market for the first time in many years. In the last 12 months the seller has obtained brand new agreements, built a brand new website with an automated booking system, experienced some sensational short-stay occupancies and tariffs - This business is humming! Unfortunately, the seller is unwell and now needs to sell.

The figures have been verified by Tony Rossiter at Holmans Accountants and confirm the nett profit at $255,000. There are 22 short-stays and 6 permanent let apartments, allows flexibility to meet the short-stay market. The complex has a good mix of unit types.

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Return on Investment of 15.4% on the business!

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©Romain Terpreau on unsplash.com

48

PROPERTY

ResortNews | December 2021

Brisbane market update ©Kenishirotie - stock.adobe.com

The management rights market experienced a strong uptrend in buyer activity after a low point in 2013 reaching a peak in 2017. The market then plateaued over 2018 and remained steady during 2018 to early 2019.

In late 2019 the market recorded historically high multipliers for management rights businesses as sales and stock levels remained tight and the number of buyers increased.

This trend was temporarily suspended between March and June 2020 due to the sudden coronavirus outbreak however recent transactions indicate the management rights market has been rather resilient with minimal effect on permanent business multipliers. Initial indications are that the strength of the permanent management rights market has continued into 2021 aided by historically low business lending rates.

It appears that the businesses netting above $200,000 are in high demand and attract strong multipliers. Various agents call it a “seller’s market”. Historically high multipliers continue to be paid for high netting businesses in advantageous locations, which are viewed as scarce product. We note that vendor price expectations remain high.

Businesses netting less than $200,000 are generally attractive to the first-time buyers. Various agents call it a “buyer’s market”, considering the current economic climate.

Given our outlook on the current market, we would recommend caution be exercised.

ResortNews | December 2021

and domestic investors, with and without previous management rights experience.

This demand creates a “market within a market”, which is considered to be above markets established in other suburbs.

Ekaterina Ivandikova, Australian Valuers

We note that there are areas in Brisbane which are considered to be attractive to the Asian community, which seem to be willing to pay a premium to secure management rights businesses in these enclaves (Sunnybank, Runcorn, Calamvale, Upper Mount Gravatt, Richlands and others).

Long term let businesses with high remuneration component appear to be in particular demand as reported by various agents. These Asian purchasers comprise a mixture of overseas

Net Income Brackets

It appears that the management rights businesses with no requirement for the manager to reside on-site have gained increasing interest from purchasers during 2018/2019 (this trend continues through 2020) and this has resulted in a high number of transactions.

These businesses are usually purchased by experienced operators who like to add another small business to their portfolio of similar businesses.

There is an opportunity for the operator of multiple similar businesses to reduce operating expenses. Agents have been reporting a high amount of offers from prospective purchasers for this type of product.

We also note that businesses

$0 to $200k

$200 to $400k

with high concentration of letting pool units (owned by investors) are in demand and attract higher multipliers compared to businesses with high concentration of owner occupiers. However, there is a risk that a business with 80 percent to 90 percent of units in the letting pool will gradually lose some of the units to outside agents or owner occupiers. The value of the business, therefore, may decline substantially.

It appears that the management rights businesses with a caretaking only component (no letting) has gained increasing interest from purchasers during 2018/2019 and this has resulted in a reasonable number of transactions. We note that the multipliers are wide ranging which will mostly be determined on size of complex, location, whether a unit has to be purchased in the scheme and if the manager has to reside in the unit. $400 to $600k

$600k +

Gold Coast - Short/Mixed

3.98 to 4.57

4.59 to 5.43

N/A

N/A

Gold Coast - Perm

3.90 to 5.23

5.50 to 6.45

6.62

N/A

3.6

4.93 to 5.30

5.1

N/A

3.28 to 5.68

5.47 to 6.20

5.27 to 6.27

N/A

Brisbane - Short/Mixed Brisbane - Perm

3.58

4.00

N/A

N/A

Sunshine Coast - Short/Mixed

Brisbane - OTP

2.41 to 4.35

4.27 to 5.88

N/A

5.40 to 5.77

Sunshine Coast - Perm

4.54 to 5.01

N/A

N/A

6.1

Townsville - Short Term

N/A

N/A

N/A

4.9

Townsville - Perm

4.12

3.86 to 4.0

N/A

N/A

Cairns/Pt Douglas - Short

3.98 to 4.15

4.00 to 4.25

4.04 to 4.80

4.03

Cairns/Pt Douglas - Perm

3.9 to 4.14

4.1 to 4.14

N/A

N/A

* Standard Module **Large NRAS ^Not Settled

PROPERTY

Source: Australian Valuers

49

Off the plan opportunity seized by dynamic management rights duo

By Mandy Clarke, Editor

Kimi says: “The complex’s modern architecture and design, perfectly suits professional workers and families who want to reside in a quiet living space.

The location in McDowall and Bridgeman Downs is always attractive to army officers (Enoggera Military is just 5km away), alongside families who want to downsize and young city professional couples seeking better value rents.”

The young and dynamic Brisbane management rights operators Kimi Ying and Kevin Li, Gold Fortune Property Pty Ltd already owned three existing management rights before recently purchasing an ‘Off the Plan’ business.

Why? Because they consider management rights businesses to be “a solid and stable investment type business with massive potential”.

Kimi told us: “I have been in Brisbane for many years, I really like where I live, and I believe Brisbane has a very bright future.

We have just purchased our first ‘Off the Plan’ complex this year with the help of Tim Crooks and

Kevin Li

Kimi Ying

Jeff Keast at ResortBrokers.

Their professionalism and deep knowledge about this industry were the keys that made everything happen.”

other types of properties, such as apartment hotels and short-term businesses but felt the ‘Off the Plan’ townhouse development offered so much more, with potential to increase the multiplier.

Kimi and Kevin did look at

Kimi also suggests that COVID attracted investors to the management rights market due to it being considered a “stable investment” and this has “pushed the current market to record high”.

However, he adds: “I suspect the market will fall back a little bit and then hold at that level over the long term.”

Meet the ResortBrokers Brisbane team

50

Nathan Eades

Jeff Keast

Jessie Shi

Frank Matus

Nathan Eades has established himself as one of the premier management rights brokers in Australia and he’s also widely regarded as one of the most respected and hard working professionals in the business.

He has settled on more than 80 properties since starting with ResortBrokers in 2016 with a total value of more than $140 million. As confirmation of his success, Nathan was named Sales Broker of the Year in 2020 and again in 2021 by the Australian Resident Accommodation Managers Association’s (ARAMA).

He started his career with ResortBrokers just weeks before the start of pandemic border closures and lockdowns in March 2020, and Jeff Keast showed his ability and tenacity by completing some major deals during one of the most chaotic business periods in history. Cold hard results tell the story – in just over a year, Jeff has 18 properties either sold or under contract with a total value of more than $25 million. His superior negotiating skills and determination to help all parties in a deal are the key attributes which has led to his business success.

Her commitment to delivering positive outcomes for her clients has resulted in Jessie achieving more than $17 million in sales in just over 18 months with most of these deals achieved during COVID-19. For three years up until she joined ResortBrokers, Jessie owned and operated her own management rights business in the Brisbane CBD and this means she understands, perhaps better than most, what it’s like to run an accommodation business and the processes involved in buying and selling one.

Frank joins ResortBrokers’ Brisbane management rights team with perhaps the most diverse sales and marketing backgrounds, from an equally diverse range of locations, of any broker who has joined us.

He’s directed numerous sales, marketing and event projects in a range of sectors such as event operations, aerospace, building, construction, information technology,, finance, gaming, mining, luxury travel, sustainability and wine.

This passion to continually learn and challenge himself has led him to the Middle East, China, Europe and Australia.

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Management rights multipliers on the rise in Brisbane

©Zstock - stock.adobe.com

By Resort Brokers, Brisbane Team

As Australia’s longest established and most experienced specialist agency operating in the accommodation and hospitality sector, we’re finding that demand for management rights in Brisbane is at extremely high levels, thanks mainly to a combination of tightening rental vacancy rates and low interest rates for borrowers.

Since July 1, 2020, the ResortBrokers Brisbane team of Nathan Eades, Jessie Shi, Jeff Keast and Frank Matus settled on 36 deals with a total value of $47 million and have another 14 under contact for just over $20 million. The reason for this?

Brisbane’s rental market is experiencing one of the strongest periods in many years.

Off the back of the impacts which resulted from oversupply a few years ago, we are witnessing some of the lowest vacancy

52

rates and highest rents ever.

The bounce back in Brisbane’s letting market has been swift and quite pronounced and hard data from multiple analytics firms, and the sheer volume of inquiries we’ve received, indicates that the much publicised over-supply of units in Queensland’s capital from before COVID-19 has now been absorbed. In June 2020, the Brisbane rental vacancy rate did blow out to 5 percent during the height of the uncertainty and that’s been dropping rapidly since then as interstate migration to Queensland began in earnest. In October 2021 it was at 1.4 percent across the city, according to SQM Research. Beyond Brisbane’s CBD, rental vacancies around the city’s middle ring remain extremely tight, and in Capalaba it’s at 0.2 percent and in Wynnum Manly it’s 0.4 percent.

What we’re seeing on a daily basis confirms this. In some cases there are waiting lists for rentals and these permanent lettings don’t stay on the market for long. Based on this, we are receiving a high number of enquiries from existing managers looking to expand their portfolios

in addition to the already extensive number of people looking to get into the industry.

This creates an unprecedented level of depth to the buyer market and, quite simply, this means there is more demand for Management and Letting Rights and naturally this puts upward pressure on prices.

The post COVID shortage of good management rights stock coupled with all-time low interest rates has driven demand to record levels and throughout 2021 we have seen most management rights multipliers climb between 0.25X to 0.5X and much lower ‘days on market’ for nearly all sales.

The ever strong Business Only category has continued to hit a note with buyers because they offer a substantially higher return and, again, this has forced multipliers further up. While 12-24 months ago we regularly saw properties in excess of $500k profit reaching the 6X level and beyond, we are seeing properties in the $300-400k net profit category reaching this benchmark now.

PROPERTY

Furthermore, at the lower end of the market, businesses netting less than $100k, which have traditionally seen much lower multipliers, are regularly being sold at 5X and above. This is up by 1 to 1.5X from a few years ago. While we don’t see an end in sight in the immediate future, it’s always prudent to “expect the unexpected”.

One final point to consider RBA Governor Philip Lowe has dismissed market pricing for a rate increase next year as “a complete overreaction”, although he has softened its stance a little on its previous schedule of “not before 2024”. Against a backdrop of a bullish economic outlook, he said: “Borrowers need to be aware that rates will rise again – not quickly, and not next year; the most likely case is 2024, but it’s possible it’s 2023”.

So, what does that really mean?

It means that for those who are thinking about selling, it might be a good time to get your ducks in a row. The cheap money is out there right now, which is really helping fuel this demand. But will it be there after next year?

ResortNews | December 2021

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Toscana Village Resort

with a splash of Tuscany in paradise

By Grantlee Kieza, Industry Reporter

breathtaking views across the sparkling waters of the Coral Sea and the Whitsundays.

Jo Mathews looks up from her desk in the reception of the Toscana Village Resort at Airlie Beach and gazes at a vision of paradise.

The islands of the Whitsundays seem to glow in the distance as boats bob lazily around them in an azure sea.

The Toscana resort overlooks the Whitsunday Islands, a sublime gateway to the Great Barrier Reef that is among the most beautiful locations in Australia.

Jo and her partner David Cummings have operated the Tuscan-themed property since 2007 and each day – as they thank their good fortune for living beside such a

54

There are four pools, a barbeque area, enchanting gardens, and no better place to relax than around Jo and David’s new self-playing baby grand piano, that because of COVID restrictions took 11 months to arrive from Japan.

The resort had a licenced café that the couple now use for functions such as weddings, birthdays and even ARAMA get-togethers.

Jo Mathews and partner David Cummings

supermarket, restaurants, coffee shops and a marina.

magnificent stretch of water – they are also preparing for a great wave of visitors once international borders re-open.

The Toscana Village Resort has 27 apartments in a heavenly location, but with all the down-to-earth amenities nearby, including a Woolworths

Toscana is a family-oriented resort featuring spacious, well-equipped, self-catering apartments in idyllic grounds.

The resort sits on a hill and the superb apartments offer

PROFILES

They have been at Toscana for 14 years, but they have loved Airlie Beach for much longer than that.

Jo was born in Mossman, north of Cairns, but grew up in Ipswich.

She was a schoolteacher at the infants’ school in Nambour as well as at Redbank Plains, west of Brisbane and at Beerwah in the Sunshine Coast hinterland.

ResortNews | December 2021

“The company had a property on the Gold Coast, and we worked there for a few years.

We were then asked to manage their property in the middle of Cairns and later to run their property at Holloways Beach, which was their first foray into management rights.

“After teaching, I moved to the ocean where my heart always was,” Jo told Resort News.

“I travelled to Airlie Beach with a girlfriend and worked in the local pub before I met David and we moved to the Islands.

We worked on Hook Island in the Whitsundays throughout the early 1980s. Then Heron Island the Solomon Islands and finally Bedarra Island when Qantas owned it.

“David was an electrician and our work at the resorts offered us wonderful lifestyle.

It suited young couples who were happy to work hard, it was very rewarding and we were also able to save.”

Jo and David entered the management rights business after a stint working for Harvey World Travel when the company was investing in holiday properties.

“Harvey World Travel was a great company to work for,” Jo said, “it taught us the importance of working hard and it was good to receive appreciation for that hard work.

“We eventually bought the management rights from them in the early 2000s. The property wasn’t even in the phone book when we started but we built it up to 81 percent occupancy.”

In 2006 the couple sold their management rights in Cairns and travelled around Australia looking for the perfect location to manage another property.

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56

However, Jo admitted: “We always loved Airlie Beach. It’s just the prettiest area and there is such great camaraderie among the residents. Broome has a similar feel but the islands here are magical.”

our reception area looks straight out over the Whitsundays, and you walk a few steps up to our unit and it has a 180-degree view that is just breathtaking. Living here was a lifestyle choice as well as a business decision.

Jo and David found the view from the Toscana instantly captivating.

And they still do. Jo laughed: “Many management rights properties have a manager’s office and unit that is hidden away at the back of the resort, or it has a view of the car park! But

“We felt we would be spending 24/7 here and thought it would be hard to find a better view or location anywhere. Cairns has always been known for the Barrier Reef but the ‘Best Job in the World’ campaign a few years ago brought an

international focus onto Airlie Beach as a Great Barrier Reef destination as well as the gateway to the Whitsundays.”

The beauty of their home has helped sustain Jo and David during recent tough times in the industry.

“The first three months in COVID lockdown were hard,” Jo said, “but we still had contracts for caretaking so we had an income even when guests couldn’t get here. We have owners

PROFILES

who live at the resort, and we have permanent rentals as well as holiday apartments.

“We had a lot of cancellations, but many have rebooked for next year. I’ve even had enquiries from one of the big overseas wholesalers who used to book a lot with us.”

Jo says one of the best things about working in management rights is that she can work from home and her customers come to her.

ResortNews | December 2021

“I certainly don’t have to worry about traffic going to work,” she chuckled, “but anyone getting into management rights has to realise that it is a lifestyle job. You can’t switch off like some jobs and forget about it until the next day.

“Every job has its ups and downs, but I don’t find too many downs in management rights.

“It’s a great lifestyle for a family because you can also teach kids about work and responsibility in a home business. I would advise anyone looking to get into the business to get involved with ARAMA because it’s the

group that does so much for the industry. ARAMA has like-minded people who are always ready to share advice. You need that help when you’re starting out.

“It’s also crucial to find a place where you really want to live. That’s what we did.

David and I really love Airlie Beach and we feel so lucky to live and work here.

“Even when I’m pulling out weeds from the garden and it’s hot and sticky I look up and take in the view. I say ‘aren’t we so lucky to be here. We really do live in ‘paradise’.”

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P: 5456 4018

Phone 07 5534 4333

Eagle_Dad_Print.pdf 1 31/03/ E: renee@rcbaccounting.com.au W: rcbaccounting.com.au

holmans.com.au

- NORTH QUEENSLAND When your Business Needs a Tune or a Service

• Bookkeeping

C

• Marketing

Specialist Advisers to the Accommodation & Hospitality Industry

• Business Management

info@hostrata.com.au www.hostrata.com.au

58

M

Y • Human Resources

Where Value & Service are No.1!

www.businessmechanic.com.au (02) 6583 8386

CM

Accounting – Audits – Taxation Due Diligence Reports

07 5631 6900

Accounting & Taxation Trust Account Audits Tax Planning & Structures

MY

CY

Chartered Accountants & Business Advisors

CMY

T: 07 5449 9992

K

Specialist Advisors to the Accommodation Industry

info@pbbconsult.com.au | www.pbbconsult.com.au

PREFERRED SUPPLIER DIRECTORY

ResortNews | December 2021

AIR CONDITIONING

BEDS & BEDDING

BEDSPREADS & BEDCOVERING PRODUCTS

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

A H A P PY GUEST

BROCHURE DISPLAY

STARTS WITH

A GOOD N I G H T 'S R E S T

Sunshine Coast Brochure Display The regions’ original and leading brochure service and provider of information displays

0412 587 288

1300 654 000 ahbeardcommercial.com

info@suncbd.com.au

Supplying the Gold Coast, Southern Brisbane and Northern New South Wales regions with quality air conditioning services since 1977.

www.SunshineCoastBrochureDisplay.com.au

Call 07 5522 1044

enquiries@climatecontrol.net.au

MANUFACTURERS OF QUALITY BEDDING QUALITY WITHOUT COMPROMISE FACTORY DIRECT PRICES

www.climatecontrol.net.au

- SUNSHINE COAST -

DON’T LOSE YOUR COOL PROFESSIONAL AIR CONDITIONING CLEANING & MAINTENANCE CONTACT US RESORTS - HOTELS - RESIDENTIAL - COMMERCIAL

TODAY FOR AN OBLIGATION FREE QUOTE

• Delivering the highest standard of product designed to give long life and superior comfort • Two sided mattresses used across the entire commercial bedding range • We use only the best quality fire retardant fabrics and foams which also include pest resistant treatments, as well as conforming to Australian standards Sunshine Coast ph 07 5446 7541 Cairns ph 07 4032 5133 sales@themattresscompany.com.au www.themattresscompany.com.au

Commercial Bedding Specialists ASBESTOS REMOVAL ALL ASBESTOS REMOVED - QUEENSLAND WIDE

Personal Service. Trusted Advice.

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

Look for the sign of an Industry Specialist

BODY CORPORATE MANAGERS

DO YOU WANT TO CHANGE YOUR BODY CORPORATE MANAGER? IT’S EASY CALL...

1300 845 176 www.bcssm.com.au

w w w. L M g o l d s t a r. c o m . a u

Risk or Repair?

ASSET MAINTENANCE

• CONCRETE FATIGUE & CRACKING? • WATER INGRESS? • POOL JOINTS FAILED; TANKS? • BASEMENT LEAKING; RISING DAMP? • ROOF MEMBRANES FAILED? • CAR PARK JOINTS?

CIWREMEDIAL.COM.AU



BATHROOM RENOVATIONS

1800 425 903

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1300 88 53 70 service@ciwremedial.com.au

WINDOW CLEANING PRESSURE CLEANING ANCHOR TESTING AND INSTALLATION CONCRETE REPAIRS BUILDING MAINTENANCE AND PAINTING SIGNAGE REMOVAL AND INSTALLATION HIGH-RISE WINDOW SEALING

sleepmakercommercial.com.au

ResortNews | December August 20212021

BUILDING MAINTENANCE SERVICES

Look for the sign of an Industry Specialist

PREFERRED SUPPLIER DIRECTORY

FREECALL 1800 306 316

MB 0433 369 351 W www.ghom.com.au

59

CARPET & FURNITURE CLEANING/PROTECTION

Red

F I N A N C E

Look for the sign of an Industry Specialist...

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

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

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

ENERGY MANAGEMENT CONSULTANTS & SERVICES

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

Nick Smith - 0450 179 677 www.redtenfinance.com.au nick@redtenfinance.com.au

Management Rights Finance Specialists

Look for the sign of an Industry Specialist...

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

CLEANING CONTRACTORS

www.pcsfinance.com.au

Whatever, Wherever, Whenever!

NING

CLEA LIFESTYLE

www.accomnews.com.au/business-directory

RESORT & COMMERCIAL CLEANING SERVICING THE SUNSHINE COAST FOR OVER 15 YEARS

Look for the sign of an Industry Specialist

SUPPLYING ALL TYPES OF COMMERCIAL QUALITY FURNITURE, UMBRELLAS & SUNBEDS

FURNITURE

LARGE INVENTORY FOR FAST DELIVERY

David: 0421 618 566 jporter01@bigpond.com COMPUTER SOFTWARE

AUSTRALIA WIDE BEST PRICES FR

EE

d an d o io ad m er lo de ial p wn tr do a vi

Daily Reconciliation – Systematic Distribution Holiday Resident Puma Light No trust accounting

Year 1 $1,100 Year 1 $990

FINANCE

Year 2+ $599 Year 2+ $440

ACL (364 314)

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

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

Phone (07) 5446 2135

www.pumasoftware.com.au FURNITURE - OUTDOOR

ELECTRICAL APPLIANCES

Quality Electrical Appliances

Suppliers of Quality Commercial Outdoor Furniture & Accessories Personal Service. Trusted Advice.

Gold Coast: (07) 5592 3344 Sunshine Coast: (07) 5447 1210 w w w. L M g o l d s t a r. c o m . a u

fresh finance...

Mike Phipps

0448 813 090

mike@mikephippsfinance.com.au

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

Look for the sign of an Industry Specialist

Cameron Wicking

0477 776 859

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

www.mikephippsfinance.com.au

60

A U S T R A L I A

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

Reservations and Trust Accounting

W I D E

info@kudosfurniture.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

• 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

0418 765 257

www.casualfurniture.com.au

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

PREFERRED SUPPLIER DIRECTORY

ResortNews | December 2021

We get results.

Pure & simple.

GYMNASIUM EQUIPMENT

Management Rights, Motel, Hotel and Caravan Park sales.

Look for the sign of an Industry Specialist

We’ve got you covered

MAIL BOXES

EBM is your Management Rights insurance specialist.

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

1300 665 966

YOUR PARTNERS IN SUCCESS Quality Aust Products to meet All Building & Government Standards

DELIVERIES QLD WIDE – INSTALLATION & SERVICE IN SE QLD

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

MANAGEMENT RIGHTS AGENTS

Property Bridge MANAGEMENT RIGHTS

Calvin Bailey LREA

0414 889 593 calvin@cbmr.com.au

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

CALVINBAILEYMANAGEMENTRIGHTS.COM.AU

RESORTS

 Discreet Silent Listings  Free Market Appraisals …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

“Always passionate, committed and professional, you can trust the team at Property Bridge.” info@propertybridge.com.au propertybridge.com.au

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

www.rcabusinessbrokers.com.au

The Management Rights Specialists

1800 888 518

WORLD CLASS INTERNET ACROSS QUEENSLAND RESORTS  OPTIC FIBRE & COAX SOLUTIONS  NOT NBN  ENABLE FOXTEL BUSINESS IQ  USE YOUR EXISTING CABLING  FREE AUDIT CONTACT ANNIE MECKLEM 0410 607 846 | 1300 GIGABYTE

LINEN &/OR LINEN GOODS

SUNSHINE COAST

Matt Campbell 0410 343 219 Barry Davies 0438 554 995

contact@managementrights.com

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

Australia’s Leading Hotel Bedding Suppliers

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 | December August 20212021

07 5437 8544 info@mainlinen.com

PREFERRED SUPPLIER DIRECTORY

info@resortsales.com • www.resortsales.com

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

61

SOLICITORS

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

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

FREE QUOTES &ADVICE

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

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 Painting, High Rise, Interior & Exterior and Building Rectification Brisbane – Gold Coast – Sunshine Coast W. Wilkopainting.com.au P. 1300 945 564

PLUMBERS & GAS FITTERS

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.

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- SUNSHINE COAST -

LOOKING FOR DRAIN PLUMBING & GAS ?

BLOCKED

SPECIALIST

• • •

OUR

SERVICES • GENERAL PAINTING • PROJECT MANAGEMENT

GENERAL PLUMBING DRAINAGE PROBLEMS GAS-FITTING & MAINTENANCE

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

24/7 EMERGENCY RESPONSE

CONTACT US 0418 883 752

SHEET METAL

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

• Painting • Grounds Maintenance & Landscaping

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

• Signage & Branding

Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work Ph 07 5593 4183

• Electrical Services

M 0413 432 294

• Audio Visual

adrian@sheetmetalimprovements.com.au

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

• Data Communications • Sustainability

SIGNS

BRISBANE: 07 3007 3777 GOLD COAST: 07 5562 2959

info@mahoneys.com.au

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

Whatever, Wherever, Whenever!

New Agreements or Variations

General Advice

All at Fixed Fees

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.

www.accomnews.com.au/ business-directory www.amalgamatedgroup.com.au info@amalgamatedgroup.com.au

62

Buying & Selling

PREFERRED SUPPLIER DIRECTORY

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

ResortNews | December 2021

Look for the sign of an Industry Specialist

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

TV & VIDEO HIRE/REPAIRS

Appliance Rental Specialists

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

TRAINING & DEVELOPMENT

Classes from Coolangatta to Cairns REAL ESTATE LICENSING COURSES

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS Short Punch & Greatorix

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

1800 080 349 www.propertytraining.edu.au LIVE CLASSES

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

SWIMMING POOL SUPPLIES/REPAIRS

Sunshine Coast: (07) 5447 1210 w w w. L M g o l d s t a r. c o m . a u VALUERS - REAL ESTATE

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

Call John Punch on 5570 9322 CERVETTO COURTICE Management Rights Sales & Purchases

Gold Coast: (07) 5592 3344

MANAGEMENT RIGHTS VALUATION SPECIALISTS

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

L AW Y E R S QUEENSLAND

Personal Service. Trusted Advice.

at Logan Central

or Anywhere via Zoom

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

ENROL Today (07) 3878 8513

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

www.accomvaluers.com.au

Bonus FREE CPD Workshops & Ongoing Support for Graduates

Heat Pumps

Proudly installed and serviced

Buying or Selling Renewing or Reviewing Negotiation & Dispute Resolution

Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588

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

Griffiths Parry Lawyers

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

ResortNews | December August 20212021

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

RTO Number 31303

We are recognised experts in our field, always outcome focused.

Leading Sunshine Coast Law Firm

Valued up to $2000 per annum (conditions apply)

Look for the sign of an Industry Specialist

Save time... Do it Online!

Whatever, Wherever, Whenever!

www.accomnews.com.au/business-directory PREFERRED SUPPLIER DIRECTORY

63

OFF THE PLAN 198 APARTMENTS

70% PROJECTED INVESTORS

25 YEAR AGREEMENTS

The Marker

Melbourne, VIC On the rise - Melbourne’s newest off the plan mangement rights.

We are delighted to present the off the plan management rights to The Marker. A stunning trio of residential buildings designed for short-term and permanent occupation. Located in a vibrant neighbourhood nestled between the CBD and Docklands, this large-scale development has superb inter-city connectivity and access to an array of eclectic amenities.

Beautifully designed and impeccably styled, on-site facilities include a garden courtyard, resident lounge area with kitchenette and dedicated dining space along with conference and meeting rooms. There are five retail tenancies on the ground floor and Aldi has been secured as a key tenant.

The Marker is an ideal opportunity for an experienced operator to establish a sizeable short-stay business in a high-quality building. Directly adjoining the main foyer is a freehold operational space, ideal for reception / back office / back-of-house etc, ensuring an efficient and secure operation for the purchaser moving forward.

This coveted opportunity comes with brand new 25 year Facilities and Letting Agreements, a strong 70% projected investor profile and is underpinned by a solid $200,000 Owner’s Corporation Salary.

Three buildings comprising a total of 198 apartments Good mix of 1, 2 and 3 bedroom layouts Designed for permanent and short-term occupation 25 year Letting and Facilities Management Agreements Projected 70% investor profile based on sales to date Construction is well-progressed and due to complete in Q2 2022 $200,000 Owner’s Corporation Salary Designated freehold operating space adjoining main foyer Cleaning and storage rooms Five retail tenancies on ground floor

Price Expression of Interest

Tim Crooks

Alex Cook

Director

Director

0417 544 562

0467 600 610

tim@resortbrokers.com.au

alex@resortbrokers.com.au