Resort News - January 2022

Registered by Australia Post Print Post No. 100023799

Issue 305 | January 2022 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Profile The Landmark Resort & Spa Person of Interest Alex Cook

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.

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

Disclaimer

Inside our January issue FRONT DESK Editor’s Note: Omicron news and my hopes for 2022 looking ahead ............................................................05

INDUSTRY ARAMA Report .......................................................................... 06 SCA Report ..................................................................................07

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

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

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Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties. © 2022 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the written consent of the publisher.

State Report ................................................................................08 BCCM Report .............................................................................. 10

12

Person of Interest: Alex Cook ............................................... 12

MANAGEMENT

By All Accounts .......................................................................... 14 Legal Ease..................................................................................... 16 Motel Market ................................................................................17 Thinking MR................................................................................. 18 Good Governance .....................................................................20 Building Relationships ............................................................22

24

Marketing......................................................................................23

TOURISM Tourism Report ...........................................................................24

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

EDITOR

Mandy Clarke editor@accomnews.com.au

INDUSTRY REPORTERS DESIGN & PRODUCTION ADVERTISING SUBSCRIPTIONS

Grantlee Kieza Richard McGill

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

EVENTS & APPOINTMENTS Events............................................................................................. 27 Appointments ............................................................................. 27

DEVELOPMENTS Development News ..................................................................30

27

PROPERTY

CONTRIBUTORS Trevor Rawnsley, Kristi Kinast, Col Myers, Michelle Scott, Jonathan Hanaghan, Amy McKee, Andrew Morgan, Mike Phipps, Lynda Kypriadakis, Kelley Rigby, Chris Bram and Brent McCraken.

AccomProperties Sales Report ...........................................34 Gold Coast Management Rights Spotlight.....................35

PROFILES

KEY Commercially funded supplier profile or supplier case study

The Landmark Resort & Spa: Landmark defies

Supplier information or content

lockdowns to hit the heights ................................................54

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

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

35 ResortNews | January 2022

This issue of Resort News should drop into your letter box just several days into 2022. I hope everyone had a happy holiday and the countdown to New Year was full of happiness and hope!

However, as I write this note, a coronavirus variant called Omicron is consuming world news headlines, in Queensland the number of cases of COVID doubled since yesterday, and masks have been reintroduced.

My family are all double jabbed, but instead of being relaxed and excited to celebrate together, we are rattled.

COVID has taken so much from us all, but most of all it stole time.

Now we’ve reached the crucial 80 percent double dose vaccination

states. Resorts up and down the southeast coast were fully booked for months ahead, it seemed that attracting guests was not the biggest worry for the sector. The elephant in the room though has been concerns there may not be enough staff to service those guests.

Mandy Clarke, Editor editor@accomnews.com.au rate I hope we can begin to take back some stolen time. To spend time with family, to take time for travel and time to appreciate what we once took for granted.

In December, many of you reported solid bookings over the summer season and stated you were more than ready to welcome back guests from other

Our sector is not alone in this dilemma, due in part to the much-anticipated global ‘great resignation’, a recent Microsoft report found that 41 percent of the global workforce is likely to consider leaving their current employer within the next year.

On top of this, Queensland experienced its own ‘great resignation’ December 17, when non-vaccinated staff left the industry rather than adhere to COVID safe health regulations and get vaccinated.

It will be interesting to see how the staffing crisis continues to impact our sector. If you are

struggling to retain staff, please tell us how you cope and how you plan to recruit this year.

EDITOR'S NOTE

Omicron news and my hopes for 2022 looking ahead In our first edition for 2022, we continue our series of reports on the management rights industry. This month we have a whopper for you! There is so much to talk about regarding the iconic Gold Coast management rights sector--sales, struggles, successes, and more.

Grantlee interviews Alex Cook, the successful management rights specialist and Director of ResortBrokers as well as Associate Director of ARAMA. Elsewhere, we also profile the Landmark Resort & Spa in Mooloolaba and catch up with manager Brett Thompson.

Enjoy this first Resort News of the year, stay safe, and let’s hope 2022 is a good one!

Cheers, Mandy

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

Dennis Clark MDIA Hotel Interiors

ResortNews | January 2022

www.hotelinteriors.com.au

info@hotelinteriors.com.au | 1300 876 055 FRONT DESK

05

ARAMA REPORT

Certainty over borders needed for industry fightback Here’s a message for the Queensland government.

It’s a bit like a sailing ship.

When the sails are full, the ship powers ahead, but when the wind is knocked out of those sails it takes a long time for the ship to build momentum again. For almost two years the Queensland government has been loosening the sails as though we were sailing through a COVID cyclone. But COVID is not a cyclone. It can be controlled.

The sale of management rights produces $150 million in stamp duty every year for your treasury and with the opening of borders expected to produce a tourism goldrush in Queensland, that amount will grow rapidly.

As ARAMA prepares to celebrate its 30th anniversary in May, it’s prudent to remember the amount of money management rights generates for Queensland.

Politicians, public servants and policy writers in the Sunshine State should consider that, any time they think of tampering with legislation around our industry.

Those management rights millions should also make politicians aware that in Queensland what our industry needs more than anything else is certainty.

Trevor Rawnsley, CEO, ARAMA

Certainty equals value. It creates consumer confidence and is the foundation for a flourishing economy. That’s why the Queensland government, having opened its borders, must now keep them open no matter what. When a state government turns on the flow of domestic travel and then turns it off like a tap, the industry is stalled in the doldrums of uncertainty.

Border closures and the restriction of movement knocked the wind out of a lot of holiday properties in southeast Queensland, especially on the Gold Coast which has traditionally relied heavily on tourists from the southern states.

Even with the reopening of borders in December, there are still people from interstate who have no confidence to book a holiday in Queensland because they're not sure if the borders will suddenly snap shut again.

ARAMA is a not-for-profit representative group and industry advocate, but we create a pasture where lawyers can make plenty of money, brokers can sell good businesses, operators can make very good returns and their guests/tenants can be well looked after.

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

For membership enquiries:

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

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Most of all the business of ‘Management and Letting Rights’ delivers increased returns for lot owner investors, enhanced security and responsiveness for lot owner occupiers and above all else all the lot owners in the body corporate get more bang for their buck with enhanced cleaning and maintenance by the on-site management team.

We don’t want anything that will create uncertainty or lead to diminished returns, so ARAMA works hard protecting and defending the industry, and to make sure legislative changes aren't harmful to our business model.

Now we need the Queensland government to guarantee freedom of travel for the long term, to protect all those management rights holders who have invested their time and INDUSTRY

capital in Queensland businesses.

Closed borders have affected everyone in the Queensland accommodation business, even those managers running long term rental complexes, because many of their tenants are involved in hospitality - in restaurants, cafes, hotels and retail.

Two years ago, no one would have been worried about booking a trip to Queensland or travelling across the border to visit friends or family. People should now not have to think twice about it or fear more lockdowns. Freedom of travel within Australia must not be at the whim of governments.

Queensland obviously brought in tough measures thinking they were in the best interests for the health and welfare of the people.

But ARAMA and many other associations have been telling the government that border closures were not the right way to go. We feel that those measures discounted the mental and economic stress they caused.

We have a very risk averse state government, but it must realise you cannot live in the risk-free world. Everyone takes calculated risks in life, including anyone who has ever taken out a mortgage or invested in a business.

ARAMA’s position has been to encourage people to get vaccinated because that's what the government said was needed to ensure that borders remained open. Those vaccination rates are now very high and while the government can enforce COVID rules and safety procedures to the fullest, and punish those people who act irresponsibly, it must not go backwards, trying to eliminate the virus by shutting down borders again.

Governments must lead us to a better economic future or get out of the way. Guaranteed freedom of travel is the thing that will breathe life back into Queensland tourism and create an economic boom for management rights here.

And you can certainly be certain of that.

ResortNews | January 2022

I am unashamed in my view that Queensland is the best state in Australia to live. From Cape York to Coolangatta, a beautiful coastline, wonderful climate and a powerhouse economy that generates opportunity for all, there is plenty to love about our state.

One of the negative side effects of our warm tropical climate is of course tropical storms.

Whilst the Northern Australia Reinsurance Pool offers hope for those worst affected by this, all strata communities, particularly in coastal Queensland are at risk if unprepared.

Communities can take a variety of steps to ensure they are prepared, even if this cyclone season is fairly tame, a severe summer storm can be quite damaging. A strata community can take plenty of action to ensure they are best prepared.

First and foremost, we encourage all strata communities to liaise with their local strata manager to work through any potential maintenance backlog.

A well-maintained scheme is of course a more resilient one.

Managers are often abreast of issues unique to a particular region, and those most affected in the north, will be very aware of how best to get storm ready.

Whether it's as simple as cleaning gutters or as complex as significant maintenance to stormwater drains and filters, all maintenance makes a difference and helps build resilience.

Strata managers are also able to help communities plan and prepare for evacuation procedures, including marshalling points and of course, preparing for potential power outages. The Queensland government provides general advice but of course, strata managers are professionals who know their schemes and will be best placed to offer ResortNews | January 2022

SCA REPORT

Summer storms, strata and safety Preparedness is a small price to pay for avoiding a catastrophe

Kristi Kinast, President, SCA (QLD)

the specific advice and plan needed for each scheme.

The Bureau of Meteorology also provides flood maps and storm information, and we encourage all lot owners to investigate these issues and also for managers to examine these maps and alert schemes that are at high risk. A little proactive action early can go a long way to ensuring a scheme avoids serious damage and claims.

Owners can also make a difference by doing little things around schemes to prevent damage, like taping windows, tying down loose items such as: bikes, tables, and chairs, and trimming trees. These are small issues that owners can easily action that will make a huge impact in the event of a storm. Even these small actions can make a big difference.

This year promises to potentially be more severe than usual, with a La Nina recently declared by the Bureau of Meteorology.

particularly those north of the Tropic of Capricorn. We encourage all buildings to get assessed in this regard, and if financially viable, upgrade to this standard of construction. It is the best way to prepare your assets from the most serious threat to your scheme. One of the major threats to a scheme is water ingress. Once water gets into the roof or walls of a scheme, it can quickly be a case of ‘game over’ for the scheme.

Repair costs can quickly spiral out of control from that point.

storm preparedness. South-east Queensland is not immune to flash flooding, and they are just as much of a threat to schemes as a cyclone. Ultimately, we know that strata managers are committed to the assets they manage and will do their best across the state to ensure that their schemes are prepared for any eventuality. Strata managers value to the insurance and maintenance of schemes across the state has been demonstrated time and time again.

Whilst the Strata Title Resilience Pilot Program should hopefully help fund works for the most vulnerable schemes in the north of the state, south- east Queensland is not immune to severe storms and we encourage communities down in this corner of the state to be extremely vigilant and get up to date with

We know that strata managers will again stand tall like the professionals they are over this summer storm season and encourage all readers of Resort News to work collaboratively to achieve the best possible outcome. We cannot control the weather, but we can control how we prepare for and react to it.

La Nina brings with it exceedingly wet weather. It was a La Nina that drove the unfortunate and severe 2011 floods. Whilst the current position of the Bureau is that such events are unlikely given the severity of the current La Nina, preparedness is a small price to pay for avoiding a catastrophe.

QLD - NSW - VIC - WA

A resilient strata community is needed to ultimately ensure that schemes stay relatively unharmed by storms.

Category 5 cyclone construction is critical for all strata communities in Queensland, INDUSTRY

07

STATE REPORT

Understanding the differences between title systems of property in NSW There are different title systems for ownership of property in NSW. The following is a snapshot summary of those different ownerships.

Old System Title In the early years of the NSW colony, there was no system for recording land transactions. In some cases, brief particulars of a sale were written on the back of a land grant but in many cases, ownership changed hands without any evidence at all. This changed in 1802 when the Judge Advocate invited parties to record their land dealings, forming the first book of the Old Register. From then on, landowners would have to show a ‘good chain of title’ to prove their ownership to land. This was (and still is) called Old System Title.

Under Old System Title, a landowner had to retain (as evidence) the complete chain of documents that ultimately led to that person’s ownership of a property. This chain of documents would often go back over many generations.

These days, we see very little Old System Titles in NSW.

Torrens Title The Torrens Title system was introduced into NSW with the commencement of the Real Property Act 1863. Torrens

Col Myers,

©taras vyshnya - stock.adobe.com

Small Myers Hughes

Title is based on the notion of ‘ownership by registration’.

You register your ownership of land with NSW Land Registry Services (LRS). Essentially, if you have registered your name as the owner of land then you are deemed to be the rightful owner, despite any other claims. Your ownership is said to be “indefeasible”.

Torrens Title is the most common form of land ownership in NSW, being your traditional parcel of land or your house/land package.

Company Title Under Company Title, the building is owned by a company.

When purchasing a unit within the building, buyers do not actually own the unit. They are effectively buying ‘shares’ in the company, which in turn allows them the right to occupy a particular unit. You also receive a ‘Share Certificate’ rather than a title deed.

The strata system was invented in Australia in 1961 and has since been adopted globally.

The good thing about Company Title units is that they are generally cheaper to buy and, because of the restrictions on shareholders, many company titled properties are occupied only by the owners, meaning less turnover and less risk of noise and other issues that occur with short-term rentals.

The downside with Company Title is that you do not actually own the unit, but rather you own ‘shares’ in the company.

Also, banks are more reluctant to issue loans for company titles units and interest rates are generally higher.

Renting your apartment out may not be possible (or could involve limitations) depending on each company’s constitution (which can vary significantly).

It is my experience that Company Title works very well in certain limited situations. It is ideal for smaller complexes, where owners want control over who their neighbours may be and also don’t require bank funding to purchase their property.

Strata Title The strata system was invented in Australia in 1961 and has since been adopted globally.

• • • • •

08

INDUSTRY

ResortNews | January 2022

Strata Title is ideal for ownership of larger, multi-level buildings, where ownership of each unit is separate, but no unit owner owns the physical building which comprises the units or the land on which the building sits.

The building itself and the adjoining land is referred to as ‘common property’ and includes things such as entrance ways, hallways, swimming pools, tennis courts, driveways, lifts, and so on. No single unit owner will own any of these areas. All the unit owner owns is the cubic space inside each unit, other than the paint on the walls.

Common property is managed through the creation of an Owners Corporation. All of the owners of the individual units automatically become members of the Owners Corporation and have a right to participate in the decision-making of the Owners Corporation. The Owners Corporation is created as soon as the strata plan of subdivision is registered with the LRS. The Owners Corporation is responsible for maintaining and repairing common property, taking out relevant insurances, managing the Owners Corporation finances, keeping records and administering the by-laws.

The Owners Corporation is financed by the levies that are raised against each of the units.

Levies are usually paid every three months. The levies that a particular unit owner will need to pay will be determined by the ‘unit entitlement'. When the developer of the strata development first registers the strata plan of subdivision, he or she gives the entire building an

ResortNews | January 2022

Photo by Lynda Hinton on Unsplash

‘aggregate unit entitlement’ (e.g.

100 unit entitlement). A share of the unit aggregate is then attributed to each unit based on their individual value, which involves a consideration of unit size, location, aspect, rules attributable to the unit and so on.

In most cases, the allocation of unit entitlements will need to be carried out by a qualified valuer.

The higher the unit entitlement allocation for a particular unit, the more that unit owner must pay in levies to the Owners Corporation. The unit allocation can also affect voting rights, so it is important that the allocation is done properly and fairly.

Community Title A Community Title in NSW relates to properties with at least two lots that share a common area, such as a driveway or recreational land. Community Title is often used in developing large estates, which could include residential lots, as well as commercial and retail outlets.

A good example is a gated community estate. Within the estate there may be 20 houses, each separated by boundaries and each owned by different people. The owner of each

house will own all of the building and all of the land on which the building is situated, like a traditional Torrens housing lot.

At the centre of the estate there may be a tennis court, swimming pool and parking area. To enter the estate, you need to pass by an electric gate, which is monitored by a security company.

In this example, each owner still owns their individual house and adjoining land, but they all share common amenities, including the security system, the entrance gate, the tennis court, the swimming pool and the parking area.

A community title scheme is created by the registration of a community, neighbourhood or precinct plan and (much like a strata scheme) is managed by a body corporate consisting of all lot owners, known as the ‘Community Association’. All common areas (including all roads, recreational facilities, promenades and parklands) are referred to as association property. Unit entitlement is based on site values, which determines unit owners’ voting rights and

INDUSTRY

contributions to maintenance and insurance levies.

The management of a community title scheme can be complex and multi-tiered. Usually found in big developments and complexes, they can often span large areas of land and consist of a mix of commercial, residential and retail lots with conflicting interests. Much like in strata titles, everything is managed via association meetings. The community scheme committee deals with day-to-day issues and general meetings are held for larger issues, which each individual lot owner may attend.

Community Title lots can be subdivided by strata titled buildings, which means that sometimes the by-laws of both the strata scheme and the community scheme apply.

All by-laws in a community title scheme are detailed in a ‘Management Statement’, which differs with each plan.

As every community scheme varies in nature, the by-laws are therefore far less standardised than strata scheme by-laws.

09

BCCM REPORT

Revisiting the amendments

© Visual Generation - stock.adobe.com

As you are aware, the new regulation modules have been in effect since March 1, 2021. As with most things new, complete smooth sailing is unlikely and, in the beginning, there are bound to be a few small waves.

For the most part, judging from interactions with our clients and stakeholders, these initial months have proven to be relatively straightforward. It is our hope that the community education material from our office prior to the commencement of the new regulations has eased the transition.

In this article, we will attempt to clarify some of the recurring issues we have observed over the last few months.

Giving of documents The enquiries we have received from owners to date suggest that there is some resistance to the body corporate sending documents by email. Under the current regulations, if a lot owner gives their email address

10

It is important for owners to recognise that they are not locked into this arrangement. We will endeavour to highlight some possibilities for the owners who wish to opt out of email receipt of their body corporate documents.

First, the regulations simply state that a lot owner may nominate an email address as part of their address for service, it is not mandatory. It follows that an owner can contact their body corporate and request that their email address is no longer included as part of their address for service on the roll.

Michelle Scott Commissioner, Body Corporate & Community Management

to the body corporate as part of their address for service, that owner is consenting to receive all documents, notices, or other information from the body corporate via email.

Despite benefits such as efficiency and modernising body corporate communication, not all residents are equally comfortable with the transition.

Our office has noticed a few concerns arising in relation to this amendment, namely, that emails are being diverted to junk folders or overlooked amidst an influx of spam, or people irregularly checking inboxes.

Alternatively, there is considerable flexibility in the new provision which allows an owner to enter into an agreement with the body corporate about the way they are to receive documents.

If an owner’s preference is to receive documents from the body corporate in a way other than by email, that owner and the body corporate can agree upon a mutually acceptable means of communication. For instance, if an owner thinks emails are unreliable, they can approach their body corporate about options such as an online file-sharing website

INDUSTRY

from which they can download and access documents instead.

Six or more owner motions to the committee There are now explicit rules governing owner motions to the committee. Previously, the regulations were silent on this subject. These changes were implemented predominantly to balance owner involvement and protection of the committee from unreasonable requests.

Nonetheless, there are still concerns from owners about the part of these changes that seems to be regarded as the ‘sixmotion cut-off ’. When submitting motions to the committee it is incorrect for owners to adopt the view that it is six strikes and you’re out. The intent of the legislation here is not to unduly prevent legitimate motions being submitted by owners.

Admittedly, the rationale behind the inclusion of the provision about six or more owner motions is to afford a degree of discretion to committees when they are faced with an excessive number of owner motions.

ResortNews | January 2022

However, the regulations simply provide that the committee is not required to decide a motion if within the last 12 months an owner has submitted a motion about the same issue, or six or more motions.

Importantly, if another motion to the committee tips an owner over six motions within the last 12 months, it can still be submitted. Although the committee is not obliged to decide on an owner’s motion in this situation, the legislation always requires the body corporate to act reasonably when making, or not making, a decision.

Consequently, if an owner submits a legitimate motion to the committee and the committee chooses not to make a decision purely because the owner has already submitted six motions in the last 12 months, it may be open to that owner to lodge a dispute resolution application to have the committee consider their motion, after sufficient efforts to resolve the dispute internally.

Voting outside a committee meeting Notice to owners Some of the regulation changes were included purely to provide clarity, specifically, changes to structure, not content. One such example is splitting the process for voting outside a committee meeting into two separate

sections. Prior to March 2021, voting outside a committee meeting was contained in a single section. The need to notify lot owners at the same time as committee members of a motion to be decided by a vote outside a committee meeting is, perhaps, one of the most frequently overlooked provisions in the regulations. There is now a section devoted entirely to the necessary notice to be given to owners. While the content is not new, it brings the requirement to give notice to owners to the foreground. Committee members and body corporate managers are sometimes surprised to learn that the need to notify owners at the same time was in the former regulations too.

It is vital for committee members and body corporate managers to remember that a vote outside a committee meeting is no different from a committee meeting when it comes to transparency. Voting outside committee meetings should not be viewed as a means of limiting owner involvement in decisions. It is only in emergencies that more leniency is afforded when voting outside committee meetings, as notice only needs to be given to lot owners as soon as practicable.

Returning votes within 21 days of notice being given The regulations now provide that the votes of committee members must be given within

21 days after the notice is given for a vote outside a committee meeting. We have observed that this provision is being interpreted incorrectly to mean that the committee must wait 21 days for all members to return their votes before there can be a decision. This is not the case.

Specifically, a motion for a vote outside committee meeting is taken to be decided where either the majority of all members that are entitled to vote agree, or do not agree, to the motion. Also, it is deemed decided if onehalf indicate that they do not agree with the motion, as there would be a tied vote (at best) and the motion would be lost.

The 21 days (referred to as the ‘relevant period’) was introduced to address concerns raised under the former regulations.

Previously, a vote outside a committee meeting had the potential for a decision to be delayed indefinitely, or worse, not decided at all. There is now certainty that if there has been no decision in the relevant period, the motion is deemed to be declined.

Maximum number To finish, we will touch briefly on inviting nominations from the floor of the annual general meeting where the maximum number of committee members has not been reached. The main point we wish to stress is that it is not a choice for bodies corporate about whether

to invite nominations in this situation, it is a requirement.

The new regulations stipulate that when deciding ordinary member positions, the person chairing the meeting must invite nominations at the meeting if the total number of voting committee members is less than the maximum number.

Discussions with our stakeholders indicate that some schemes seem to be ‘picking and choosing’ whether to invite from the floor when there is less than the maximum number because they prefer to have a smaller committee or because they do not want particular individuals on the committee. However, disregarding this requirement undermines the key intention of the amendment to encourage greater owner representation on the committee.

We hope that this article serves to dispel some of the uncertainty and misconceptions that have surfaced since the amendments have been in effect.

Confusion is often a key ingredient for most of the disputes lodged here. Striving for a more solid understanding of the regulations is, arguably, one of the best ways to improve communications in your body corporate and avoid unnecessary disputes, as there is less room for contention when the rules are adhered to.

© DragonTiger8 - stock.adobe.com

ResortNews | January 2022

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11

ALEX COOK

PERSON OF INTEREST

Hitting

By Grantlee Kieza, Industry Reporter

What’s ARAMA’s most important role?

One of Australia’s most experienced and successful management rights specialists, Alex Cook, first came to Australia as a DJ and music promoter.

Now he’s a director of ResortBrokers and has sold more than $250 million in management rights, including some of the biggest sales in Australia.

I think a lot of people look at ARAMA as simply an educational facility, just a management school system and a website with lots of information, or a place to call for advice. But it’s much more important than that, it is the advocacy side of the industry.

Recently Alex was appointed to the ARAMA board and this month he talks to Grantlee.

Congratulations on becoming an Associate Director of ARAMA. Thanks, it’s a great honour after my first decade in the industry.

I've always been a big proponent of ARAMA, and if you are active in the management rights industry, I really see it as your duty to be an ARAMA member.

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all the right notes

Management rights is built on legislation and legislation can be changed. It’s critical to have a professional body protecting and defending the industry against those who would benefit from its demise. A lot of people out there don't like management rights, either they don’t get it, or they're jealous of it, and they try to make changes to it that can devalue the industry. There are ongoing threats from groups such as the Unit Owners Association, campaigning for a variety of changes to management rights legislation, perhaps most concerning and noteworthy, to reduce maximum length of agreements from 25 years down to as low as three years.

This would obviously have a seismic change on the industry. In situations like this ARAMA does a wonderful job of representing the industry and getting our position across.

Even experienced managers need to consider ARAMA as an insurance policy for all the money they have invested in the industry.

You successfully engaged a lobbyist to help make an amendment to a bill in Victoria?

The Owners Corporation and Other Acts Amendment Bill 2020 passed through the Upper House of Victorian Parliament on Dec 1, 2021. ResortBrokers led a campaign to amend part of the original legislation which proposed restricting developers from entering an owner’s corporation into any agreements (capturing caretaking and letting agreement, intentionally or not) for more than three years.

Without an amendment, the legislation would have killed

INDUSTRY

new off-the-plan MR operations in residential apartment buildings throughout Victoria.

We engaged with key ministers including the Victorian Treasurer, Minister for Tourism and the Minister for Consumer Affairs and successfully achieved an amendment to the Bill. The amendment essentially exempted shortstay/service apartment/hotel buildings from the three year restriction. This was a great result for all stakeholders, as it maintained the security of tenure required by shortstay operators to invest the significant amount of time and capital necessary to establish a successful and professional short-stay operation.

Traditionally Victoria hasn’t been a big market for management rights.

But you helped changed that?

Yes. Three or four years ago my brother-in-law Tim Crook, and I, made the decision to forge a way into the Victorian market.

ResortNews | January 2022

We met with developers and explained the management rights model to them. In the two years before COVID we had some really big sales in Melbourne. We sold one building, AVANT to the Minor Group (owners of Oaks), which they branded Avani. We also sold Australia 108, the tallest building in the Southern Hemisphere, to Michael Song of Arise Hotels. And we sold the management rights to several other landmark buildings, such as Collins House, Collins St and Sky One, Box Hill.

Huge real estate deals are a bit of a detour from studying history at the University of Bristol?

It is. I was born in London, then I lived in Canada until I was about 10 and then I grew up in Buckinghamshire, a county west of London. I went to the University of Bristol where I studied history and developed a love for writing. I was really into electronic music and I used to DJ and promote music events while at university.

After I finished studying, I had an opportunity to pursue that in Australia and that's what brought me here in the first place. I was based in Sydney (running club nights in Kings Cross) and once a month a music promoter would fly me to Brisbane for a DJ gig, his best mate was Carla Crooks who is now my wife Carla Cook!

How did you start in management rights?

Through marriage.

ResortBrokers was set up by Carla’s father Ian Crooks about 35 years ago. Carla and I met in Brisbane, but then we spent seven or eight years in London where I worked in commercial property. We came back to Brisbane in 2011 right after the GFC. I was given the northern Gold Coast as my area. There wasn't a lot selling at the time, but it was a really good opportunity to move around, talk to managers and learn the industry. About two years in, market conditions improved, and I started to sell. By my third year I was doing well. I got appointed to sell Soul at Surfers Paradise for the receivers PricewaterhouseCoopers in 2015, which I look back on as ResortNews | January 2021

really kick-starting my career.

It sold to Mantra for $25.7 million which was one of the highest prices ever paid for management rights at the time.

I also sold Beach Apartments, which was built by the Anthony Moreton Group at Broadbeach, to Minor (branded AVANI); that sold at $70,000 per key in a deal well over $10 million, which I think was a record per key price at the time. Little Group’s ‘Signature’ at Broadbeach which we sold to Ultiqa came shortly after and was another great sale.

How do you see the future of management rights?

From a commercial point of view, it's very positive.

Management rights as an industry is becoming increasingly commercialised at the top end with more syndicates, corporates and private equity groups bringing in more money and expertise. They are primarily interested in maintaining the value of the asset and getting a return on their money, so the quality of operators is getting better as is the price people are willing to pay.

During COVID, management rights still proved to be very viable businesses, which highlights what a strong and resilient industry it is. Where I have concerns is around changes to legislation and the increasing power of bodies corporate, both of which potentially cause managers a lot of problems. I feel that bodies corporate are getting more and more empowered and I would like to see them become more professionalised and regulated. And I’d also like to see ARAMA and other key industry leaders given better backing and more tools to help protect the industry.

You live in West End, not far from your office?

I love it here. We have three girls, aged eight, six and four, so I lead a pretty busy life. I spend as much time with my girls as possible and I love to cook for the family. We enjoy bike riding and I go to the gym most days. I DJ’d until about five or six years ago but there just wasn't enough space in my life for it anymore. It was great fun at the time though.

INDUSTRY

13

BY ALL ACCOUNTS

Purchase process:

Buying an MLR business Happy New Year!

Step 3: Find the right complex & negotiate price

Thinking of buying a management and letting rights business?

This will solely depend on your circumstances. Discuss your offer with the applicable agent and hopefully you will have a verbal agreement. It’s not uncommon for the offer and acceptance process to take some time.

This article is aimed at the firsttime buyer into the industry.

I will now go through a basic staged plan to assist with the process. This list is by no means exhaustive but a general guide.

Step 4: Engage an industry specialist accountant and lawyer

Jonathan Hanaghan

Some of you may require a more detailed approach or if you’re luckily enough maybe even a simpler approach.

Director, Jonathan Grant Accountants

and wanting to purchase a larger short-term complex or perhaps something that has been run down and in need of some TLC.

Pre-contract Step 1: Do your homework Review as many businesses as you can. Get a feel for the type of complex that ideally suits you.

You may want a permanent with minimal office and garden hours or you may be chasing a dollar

Step 2: Find out what your budget is Seek advice from an industry specialist financier or finance broker to determine how much you can borrow and what your budget is.

You will need both to assist you with the process, but immediate priority needs to be the establishment of a business ownership structure. This can be either as a sole trader, partnership, company or trust or a combination depending on your circumstances. Taxation and asset protection circumstances generally weigh in heavily with this choice as they vary widely.

Typically, your accountant will establish the structure then your lawyer will document the contract and advise you on the details.

Post Contract Step 5: Sign the contract

Management Rights Transactions Damian Quinn

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

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• Property Law • Retirement Villages • Body Corporate

SUNSHINE COAST & QUEENSLAND WIDE

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14

Generally speaking, the contract will contain three major conditions.

First income verification, second finance and third legal due diligence (which also covers body corporate approval). Making sure you understand each is crucial.

In essence this gives you three get out of jail cards, should you need them, or your circumstances change through the process.

Step 6: Income verification Your accountant will complete the income verification in accordance with the contract for sale. This will be for a recent twelve-month period (or projection if off the plan) with the view to verifying an actual net operating profit figure as specified in the contract.

This profit figure is usually the number the vendor’s accountant has calculated for the same or similar period.

Owner letting agreements are also checked and any variances in letting pool numbers during the verification period are also reported.

MANAGEMENT

Step 7: Obtain finance Your financier will require a copy of the income verification report and various other documents.

Your financier may also require amendments to the body corporate caretaking agreement.

Step 8: Follow your solicitor’s advice Your solicitor will guide you through legal due diligence including obtaining body corporate approval.

Unconditional contract Step 9: Statutory and licensing requirements Make sure all applicable ATO registrations are in place as Australian Business Numbers can take up to 28 days to be processed.

OFT licensing can also take longer than expected so make sure this process is well advanced.

Step 10: Record keeping Careful consideration needs to be given to record keeping for the trust and general bank accounts.

We recommend specialised software be purchased or leased.

Advice from your industry recognised accountant should be sought before just going with “what the vendor was using”.

Settlement Step 11: Hand over process You will need to negotiate the hand over process with the vendor which commonly is one week prior to and one week following settlement. Try to extract as much knowledge from the vendors as possible during the agreed period.

I also recommend having a coffee or similar with the chairperson of the body corporate as soon as possible following settlement.

After all the body corporate committee can be your strongest advocate or your worst nightmare.

In summary always stick to and take advice from your industry experienced accountant, financier, solicitor and sales agent and the purchase process should run as smoothly as possible. Good luck to all those readers looking to purchase sometime soon!

ResortNews | January 2022

“Onsite Property” empowers managers Onsite Property is the leading service provider to Australian Resident Unit Managers and property investors.

We provide cost effective services and infrastructure to resident unit managers to assist them in operating their management business.

marketing to property investors all the way through to our rental marketing services.

We assist and help our managers to have a successful journey in the management rights industry and can assist in protecting and growing their asset and assisting in operating at a reduced cost, through to their eventual sale of the asset.

From our origins in Brisbane in the early 2000’s – through our founding companies Viking Project Marketing, Viking Management Rights, Viking Strata, Property Economists and seqsales.com.au – to a single branded operation, Onsite Property has enjoyed a reputation for excellence providing leadingedge property insight and on-the-ground delivery focusing on the core value of client profit.

We can help you maintain and grow your management rights asset through saving you money on essential services, whilst protecting your rent roll asset like no other through strategic investor marketing and sales.

We protect and grow resident unit managers rental pools by providing a sales solution for the building or complex,

1.

Resident unit managers join Onsite Property via an annual low-cost subscription starting from $299 per year which allows them: Use and access to a number of tools for your every day running of rentals and sales using leading

edge technology and our vast internet portals (to over 20 various real estate internet portals including realestate.com. au and domain.com.au).

2.

A dedicated salesperson to service the complex or building from Onsite Property, who is provided sale referrals as they arise by the Resident Unit Manager. This Onsite Property salesperson will conduct strategic investor marketing for any properties they are referred, aiming to provide first class outcomes for the vendor. Sales are conducted with the least possible disruption to tenants, protecting the Resident Unit Managers rent roll by marketing to property investors, who are buying through Onsite Property generally because of the fact that properties with Onsite Management

are promoted. The Resident Unit Manager receives a service fee for each referral given on settlement.

Onsite Property Reviews “Managing a number of complexes and being in the industry for many years, Onsite Property is an essential tool to my business. The support they have are second to none, I am a fully licensed agent but prefer to use my complex representative John Diprose to help my owners sell properties to new investors”.

– P & S Rowney, Sunnybank Approach “I have been involved with another company offering similar services for onsite managers but decided to join Onsite Property for their better tools (user friendly) and lower cost. I am very happy to recommend Onsite Property”.

– R. Marshall, Rosegarden Manors

Onsite Managers Advertise Your Rentals and Sale Properties From Only $299 Per Year!

Join the leading service provider to Onsite Managers and access all the leading-edge tools to help run your business for less cost.

Advertising and marketing for sales and rentals to over 20+ National Real estate web portals site, including realestate.com.au and domain.com.au

Instant tenant and buying matching emails automatically emailed out to all prospective investors and tenants from our data base as soon as you/we list a property

Full unlimited use and access to Real Works from any computer for all property forms

Unlimited access to property data to create CMA’s through RP Data

National tenancy database, access free high-quality, in-depth information

Utilities Connection service for your tenants – you earn extra income

Ability to create your own databases for marketing (CRM)

Ability to create E-marketing newsletter, printed property brochures and stock lists

Social media marketing to Onsite Property’s Facebook account and your own Facebook and Twitter site

Full admin and sales support on our standard packages. Our investors receive a monthly stock list/newsletter updating them on great Investment properties available.

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Please feel free to contact John Diprose for a private and confidential chat on phone 0412 189 736 or john@onsiteproperty.com.au

ResortNews | January 2022

MANAGEMENT

15

LEGAL EASE

Advertising expense versus advertising charge The way that a form 6 letting appointment is written will make all of the difference to whether or not a manager can profit from advertising.

Traditionally, when calculating the net operating profit, it was considered by accountants, and probably valuers and banks, that a manager cannot profit from advertising levies. The rationale for this was that monies paid to the manager for advertising was to reimburse the manager for advertising expenses incurred by the manager. Previously that made sense when advertising took the form of paid advertisements in newspapers, magazines, brochures and other publications. However, in today’s world advertising consists of much more than that.

Today, whilst there might be some paid advertisements, for most managers the majority of advertising will be undertaken online, where the website and social media are the critical and main tools for advertising and promoting accommodation at a complex. Developing, maintaining and utilising a website and partaking in other social media promotions and activities are just some of the labour-intensive work that a manager does to advertise, market and promote a complex.

At Mahoneys our view is that if advertising, promotion, and marketing provided by

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© Bro Vector - stock.adobe.com

Amy McKee Partner, Mahoneys

the manager is a charge rather than an expense in the letting appointment then the manager can include the relevant amount as income in the letting appointment. It is the terminology used in the letting appointment that is vital in making that distinction.

In a letting appointment, if advertising is shown as an expense, then the manager may only retain the actual

expenditure of advertising and cannot retain any amount above that as payment for time and effort for organising that advertisement. For example, if the manager expends $500 placing an advertisement on realestate.com.au or in the local paper then the manager may only recover $500 from the owner.

If the manager has collected $600 from the owner, it must either refund $100 to the owner or actually spend another $100 on advertising in the future.

Conversely, if advertising is shown as a charge, then that is considered a fee for the services provided by the manager including labour, time and effort.

Where advertising is treated in this way there is no need to account separately to owners for any actual expenditure. All advertising levies collected belong to the manager and any excess above what might

MANAGEMENT

be actually expended should be taken into account for profit calculation purposes.

Managers need to be careful, as with any other charge, the manager can only provide proper service to owners through the labour of the manager or the manager's staff. Managers should not assume that the entire advertising or marketing charge is net operating profit as it will be necessary to deduct labour expenses from the advertising and marketing charge. How much to deduct will always be contentious.

It is important that the fee or charge be properly described, that the form 6 letting appointment is properly completed and that there is proper disclosure of these things in the letting appointment (for example in the ARAMA addendum drafted by Mahoneys).

ResortNews | January 2022

It seems appropriate based on the strength of the current market for this tenure of motel ownership to revisit it and consider the many reasons for the current and continued strong attraction in owning and operating a freehold motel.

Not having to answer to anyone or having anyone else involved in the business is the goal of many.

This is no different to renting a house but ultimately wanting to buy one’s own home, own castle.

All the decisions made are the owner's, with no one looking over their shoulder and questioning why. Any decisions made in the owner’s opinion that are the best for the business and property going forward, are their own. Backing oneself and thriving via the decisions one makes provides a lot of personal satisfaction.

Leasehold ownership has been popular for the last 25 years or so, due to the lower capital outlay required to enter the industry and the higher returns on investment available. The demand for passive investment motel ownership has been strong for many reasons, but it has also benefited from those investors outside the industry seeing the benefits available, thereby increasing the demand for an asset short on supply.

The freehold going concern operation has been largely left to those wanting to operate the business themselves, however this has been evolving more recently, with many accumulating more than one motel and operating them under management, whilst they play the role of overseeing each.

This provides a higher level of flexibility and lifestyle options.

As a result of the popularity and growth of the leasehold tenure over time, freehold operations that have been available on ResortNews | January 2022

Andrew Morgan, Queensland Tourism and Hospitality Brokers

the market have diminished.

Lower levels of supply mean that inevitably pressure will be placed on values to go up.

Capitalisation rates have largely held steady over many years, however good quality properties and businesses will always achieve lower yields. The return on investment expected for coastal freehold going concerns has been anywhere between 13 to 16 percent depending on location, clientele, standard of presentation and so on. Inland going concern capitalisation rates have been slightly higher.

strong rewards can be achieved within a short time frame. It would have to be said with the recent increase in demand for tradespeople this has probably been a bit more difficult to achieve in the past twelve months. The benefits of owning a freehold property outright are attractive, therefore the demand grows, with an ever-changing market. The pride of ownership in the property, the ability to do whatever one likes with the land and buildings without question or requiring permission, the ability to expand the size of the complex, the taxation benefits available and the ultimate right to lease the business at any time in the future is helping fuel the increased demand.

Changing dynamics in any industry force attitudes and therefore behaviours to change.

These dynamics can be major

Opportunities are available, particularly where properties have been run down over time by either lessees, owners, or passive owners, where each has been reluctant to maintain their assets and not spend on maintenance and/or refurbishment, as a result damaging the value of the asset. In recent times, savvy buyers have been able to take advantage and ultimately buy a lower priced freehold going concern that has much upside potential with renovation. Other opportunities include those where the business is operated on a ‘caretaking’ basis rather than a professionally managed one. Working day to day at the business rather than working on how to gain increased market share has, and is, providing some great buying opportunities for those investors who can then buy low and work on growing the business thereafter. Investing funds and time back into the property is a major benefit to the freehold asset owner, and MANAGEMENT

events or a number of more minor things. A dominant freehold going concern market can force change where a Lessee wants to sell and a Lessor wish to sell, but one or both markets may be a little soft. The best way forward may then be to offer a package of both, to attract this dominant freehold market by amalgamating the two. Market demand drives the supply and changes invariably occur and the industry starts to change and evolve again.

MOTEL MARKET

Freehold motel businesses

Finally, when the time comes for the owner operator to make a change and move on, the options available include putting management into place or selling the leasehold business.

Both provide their own benefits and burdens, depending how involved one wants to be.

TheManagement Rights Lawyers BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

DISPUTE RESOLUTION

ARAMA Service Provider of the year 2019 - 2021

www.mahoneys.com.au 17

THINKING MR

The 85% rule: It’s all in the mind “There are known knowns -there are things we know we know,” Rumsfeld said in February 2002, when asked for evidence that Saddam Hussein tried to supply weapons of mass destruction to terrorist groups. “We also know there are known unknowns - that is to say, we know there are some things we do not know. But there are also unknown unknowns, the ones we don’t know we don’t know.” Donald Rumsfeld, former defence secretary to George W Bush.

As we enter a new lap around the Sun I always like to look back and reflect on lessons learned.

As I’m sure many will do, I’ll make resolutions regarding alcohol intake, diet and exercise and promise myself to be a kinder nicer person. Most of all I’ll say a little prayer in the hope that the ‘Managing Director’ finds it in her heart to put up with me for another 365 days, 5 hours, 59 minutes, and 16 seconds. Knowing my luck, I will fall at the 16 second mark!

To say that 2021 was a challenging year would be some sort of understatement. However, I think we can take heart that it appears we may have escaped the worst of health and economic crises, and as such I enter 2022 with a degree of optimism. Let’s take a closer look at reasons to be happy and see if it’s all just delusion on my part.

Covid-19 isn’t the first pandemic the world has faced, and it won’t be the last. But it is the first one we’ve had to deal with in a modern world context and on balance I reckon we did ok. Sure, the politicians and public servants got some stuff wrong and there was a fair bit of bumbling, but we’ve emerged much better equipped to handle the next one, both on a public health and economic policy basis.

I suspect as a society we will take on a less risk averse mind set post pandemic as we learn to live with this and other emerging issues.

In my view that’s a good thing.

Interest rates are low albeit as I’ve pointed out previously that’s

18

Mike Phipps, Director, Mike Phipps Finance

not necessarily a good thing. We predict variable interest rates will rise in the latter part of 2022.

Having said that, the cost of debt will remain extraordinarily low by historical standards with the sort of assets we fund showing significant multiples of return as compared to cost of debt. I can’t see the use of ‘good’ debt to acquire strong incoming producing assets falling off in 2022 and I don’t expect lenders to be turning any taps off. As a finance broker that’s a very good thing indeed.

Banks have woken up to fundamental issues with basic service delivery. It’s true that underinvestment in technology combined with a less than service focused attitude has been a real challenge for borrowers in recent years. What’s becoming apparent is the loss of market share being suffered by the banks who have failed on service and process and the benefits accruing to those who’ve taken these things seriously. We’ve been telling the banks for years that there’s no point in having fancy products if you can’t deliver them in a timely fashion. I suspect the traditional banks are also looking at the non-bank lenders and the tech they use and have realised the revolution is not on its way, it’s here. Our expectation is that we’ll see a significant improvement in loan approval and settlement time frames from the major banks in the second half of 2022. I’ve got to call out our biggest bank as the current top performer on service and reliability in the space we play in. You know who you are guys, well done.

International travel looks set to resume at some level in 2022. I expect a bumpy ride with many Aussies preferring the relative certainty of domestic adventures.

© retrostar - stock.adobe.com

This is good news indeed for leisure-based management rights, regional motels, caravan parks and lodges. I’m particularly optimistic that the Gold Coast will rebound on the back of open borders and a rediscovery of what the region has to offer, particularly for family holidays.

negative outcomes on corporate culture, collaboration and efficiency. I won’t be surprised to see a “let’s get our people together” corporate strategy emerge as whole workplaces are vaxxed and people start to miss the collegiate benefits of meeting regularly in a team environment.

Permanent rentals in Southeast Queensland are in huge demand and that’s not going to change.

The area is an aspirational place to live, and I expect inward migration to supercharge that demand. On a cautionary note, I don’t expect rents to increase at the same pace as demand albeit the economic theory would suggest they will. I expect new developments to soak up some supply pressure while a lack of any substantial real wage growth suggests that rents must have some sort of economic ceiling.

We’re not sure we’re on the ceiling yet but it’s best to appreciate that there probably is one.

For me there remain a couple of known unknowns. One is our relationship with China and the other is climate change. On the one hand we know our relationship with China is not good and we know the weather is changing. On the other I’m not sure we have the first clue about what to do about either issue. But one thing I know for sure. The choices we make will absolutely impact every facet of our lives and potentially render my predictions meaningless. That is unless an unknown unknown happens to pop up! Let’s hope for unexpected happy news.

Corporate accommodation will remain challenging in 2022 but even here I see some good news.

I expect the Zoom and work from home trends to soften as companies realise that a virtual work existence has significant

MANAGEMENT

Five hundred years ago, Michel de Montaigne said: "My life has been filled with terrible misfortune; most of which never happened."

More recently researchers have put the never happened worry at 85 percent. I suspect the other 15 percent are the unknown unknowns.

ResortNews | January 2022

Archer Gowland Redshaw The trusted advisor to the MR industry For over 25 years’, Archer Gowland was recognised as a leading and highly trusted professional services firm servicing the Management Rights industry and operators throughout Queensland.

However, mid-2020 brought a new direction for the firm in the midst of the global pandemic, with the business undertaking a merger with another leading Brisbane-based accounting practice and establishing their new firm as Archer Gowland Redshaw.

Now over 12 months’ on from the exciting change that saw the existing Archer Gowland leadership team of Ian Walker and Smiljan Jankovic joined by new partner Valda Glynn, the firm is focused on cementing their new name within the industry.

Managing Director, Smiljan Jankovic

After three years’ as a Director with Archer Gowland, the merger presented an ideal opportunity for Smiljan to take the next step whilst also building on his specialty assisting the MLR sector.

Now as Managing Director, Smiljan confidently leads the firm’s Management Rights service offering, championing MLR operators to maximise returns from their business operations, obtain the latest advices on ResortNews | January 2022

multipliers and legislation changes and providing clients with bespoke accounting and advisory support.

Speaking about the change and how this will better support MLRs, Smiljan offers that the benefit of a larger team will provide assurance to operators that they have access to well-informed professionals and the backing of the business throughout their venture.

on in 2022 to better serve the industry and it’s operators. “I’m excited to continue providing value-add insights which in turn will hopefully allow operators to gain a true understanding of their business. Equally, the hope is the return of regular networking events and forums where possible, which I’m keen to attend, participate or even host!”.

Similarly, he reiterates his commitment to furthering his one-on-one relationships with operators, helping to provide more strategic and holistic business advice that will have long-term benefits on top of that related to day-to-day operations and management.

“I’ve been fortunate in my career servicing management rights, that I’ve connected with experienced MLR operators who have built successful complexes and who have allowed me to learn about how they operate. As a result, I’m now able to pass on my knowledge and expertise in my heightened role as Managing Director to new entrants and confidently identify & recommend new opportunities for existing operators to grow and develop their business or portfolio.

Across his career, Smiljan has built a strong reputation as a respected and knowledgeable practitioner – deeply engaged in supporting owner/operators throughout their Management Rights venture. In doing so, he has been recognised as an ‘industry-preferred supplier’ – an honor in which he says “it’s always great to be individually acknowledged, but the real recognition goes to the firm as a whole and our history. Likewise, the achievement gives credit to all the effort the team puts into building long-standing relationships and our commitment to maintaining a high level of service”.

Alongside all this, the year gone saw Smiljan release regular insights on critical MLR matters and continue connecting with other leading practitioners for their commentary as part of their popular ‘Building Your Business’ podcast, something that he is eager to continue working

His experience has helped address various tax and accounting compliance matters across the lifecycle of a complex, as well as undertake due diligence assignments and trust account audits.

Greg’s keen interest in being able to gain an overview of a MLR business and its ‘health’ has allowed operators to better manage their dealings and he is proud to provide tailored advice where needed to help build their business.

In commenting on his work with owners, he says “I’m proud that in my position I have the ability to offer timely and relevant advice from beginning to end, seeing the big picture and playing an active role in their success.

Management Rights Advisor, Greg Rankin

Joining Smiljan as one of the firm’s lead advisers for Management Rights is Greg Rankin – a fully-qualified Senior Accountant with over five years’ experience working within the industry.

In his role, he actively works closely with Smiljan to support the Management Rights sector, regularly involved in engagements for permanent and short-term complexes.

Additionally, it’s terrific to support MLR operators at different stages in their business – especially when they are newly commencing their management rights journey or where it comes ‘full circle’ and we’re assisting them to start the next chapter in their lives”.

In highlighting what’s next for Greg in 2022, he is looking forward to continuing to build his relationships with owner/ operators across Queensland as well as mentoring new staff on the MLR industry – developing their interest and knowledge of the industry and the accounting and tax obligations attached.

TRUSTED BUSINESS ADVISORS TO THE MANAGEMENT LETTING RIGHTS INDUSTRY Specialist Business Advisors to the Management and Letting Industry • Due Diligence Reports • Trust Account Audits • Structure Advice & Tax Compliance BUILD YOUR BUSINESS

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

Level 3, 345 Ann Street Brisbane QLD 4000 Smiljan Jankovic - SmiljanJ@agredshaw.com.au

MANAGEMENT

07 3002 2699 0423 595 910

www.agredshaw.com.au

19

GOOD GOVERNANCE

Construction:

Are you keeping an eye on quote validity dates?

Nobody will argue that we are living through unprecedented times.

COVID, climate change and the multitude of global social awareness movements are changing the way we live, think, and view the world.

For those of us entangled in the construction industry we have recently been experiencing not only a construction boom, but unprecedented price increases and stock shortages for materials and products. The body corporate sector is now starting to be affected by this.

When a body corporate takes months to approve quotes, especially for expensive capital upgrades or structural repairs, the builders quoted prices may expire. Most builders provide a 30-day or threemonth validity date on their quotes. In most cases three months is not enough time for a body corporate to discuss the works at committee level, convene a general meeting, vote, and raise funds before entering into contract.

Where previously a builder would have absorbed a price increase or substituted quoted materials for more expensive materials due to availability issues, to honour the quote expiry date, this is no longer able to happen.

Construction materials price increases At the moment the price of structural steel is going up around 5 to 10 percent every couple of months in Australia, which has a huge flow on effect to the cost of remedial works in residential strata. It affects anything that contains steel, such as concrete works, fire protection system components, and plumbing items. Last year

20

Price cost-control checklist To manage the pricing of your capital works projects, bodies corporate and their onsite building managers or strata managers are encouraged to check the following: •

Qualification of the project manager: Well trained and qualified people are your best chance of getting the works done compliantly and for the best price

•

License class for the builder: Ensure the builder and project manager hold the same license class as the class of building they will be working on

•

Validity dates on quotes: Ensure the quotes have at least a three to four month validity date to ensure they hold until the voting occurs, and contract is signed

•

Contingency sum set aside: In addition to the quoted sum for the capital works, set aside a 10 to 15 percent contingency for any unforeseen issues that may arise during the works.

these particular projects, by the time the voting has occurred the project costs will have escalated and added more than 10 percent on to the price of the project.

Lynda Kypriadakis, Diverse FMX

the cost of reinforcing steel was almost half the rate it is today. Now, more than ever, bodies corporate need to ensure there is a sufficient validity period on the quotes received from builders to ensure the price is held until the voting protocols have been observed.

We know of capital projects for bodies corporate that have a heavy percentage of structural steel material included, with 30-day validity dates on the builders’ quotes. This is simply not sufficient time for the body corporate to vote via general meeting to approve the engagement of the builder. For

It is not always possible for a builder to absorb price increases. Right now the escalation in structural steel prices is unprecedented, so it’s a good idea for the project manager to require three to four month validity dates on quote submissions as a condition of tendering to ensure the price is held long enough for the body corporate to sign a contract.

Construction materials shortages Following on from the COVID factory shut downs and border closures of 2020 and 2021, a number of building materials that would normally be very readily available for purchase off-the-shelf are now low on stock or not available at all.

Material shortages are causing delays in completion of works and/or imposing extra costs on projects as substitute materials are opted for, to keep the project going. Construction

MANAGEMENT

material shortages may impose extra costs on projects if the builder has to substitute a ‘cheaper’ material with a more expensive one so as to finish the works within the contract period. This unanticipated substitution may result in an after-contract variation claim by the builder and extra costs to the body corporate, so it is a good idea to have a contingency sum included in the motion to award the capital works contract (recommend 10 to 15 percent contingency sum).

Builder competency At the end of the day price increases are kept to a minimum when dealing with competent builders and project managers who are qualified, skilled, experienced. They can keep abreast of these things and manage costs to secure fixed prices for the longest possible time.

Getting high quality builders with the right license to quote on complicated remedial works projects in strata complexes is getting increasingly difficult. If your building is Class 2-9 construction (an apartment block as opposed to townhouses), you need an unrestricted builder or ‘Open Licensed Builder’ to do work on that class of building. Holders of low-rise builder’s licenses cannot work on Class 2-9 complexes, so make sure you check the license before entering into contracts.

Check with your project manager to make sure the builder’s license is adequate for the works.

NOTE: The project manager also needs an ‘Open Builders License’ if they are project managing works on Class 2-9 buildings, or alternatively an engineer or architect can legally be your project manager. Other license classes may not be adequate for the works. Check with the licensing authority if in doubt.

ResortNews | January 2022

BUILDING RELATIONSHIPS

Pick your battles Welcome to 2022!

I hope you all had a fabulous festive season and are gearing up for a prosperous and productive year ahead.

You don’t want a retired, grumpy person upset with you, they have all the time in the world to battle

“It is better to be happy than right”.

I say this phrase to myself on the very rare occasion that my husband and I have a disagreement, “is it better to be happy or right in this situation?” and 99.9 percent of the time I choose happy. He walks away thinking he was right, and I walk away knowing I was right… just kidding (I hope he doesn’t read this month’s article).

Too often I hear about disagreements in our industry that have blown out into World War three, all because someone chose to be right instead of happy.

It normally starts over something as simple as a whinging owner complaining about a wrapper on the pathway, and then the manager telling the old bird to pick it up herself, let the battle begin.

Now before I continue, in no way am I saying let the bullies in your complex get away

Kelley Rigby, Managing Director, Letts Rebuild

with hurtful and destructive behaviour. If you feel you are being mistreated, then I wholeheartedly agree you should go into battle with all the ammunition and armour necessary.

However, in this industry you do need to pick your battles wisely, if the whinging ‘old bird’ asks you to pick up the wrapper my advice would be to pick it up, thank her for being so observant then continue to chat about her cats. You don’t want a retired, grumpy person upset with you, they have all the time in the world to battle and it never ends well.

The management rights industry is a people business, you must learn to navigate your way around different personalities and use those amazing people skills to build and nurture even the most difficult individuals.

Sometimes you might find those with the most difficult personalities can sometimes be the best allies.

Here is a little tip that I use when I feel that a confrontation may be ahead. I ask myself “Will this affect me for 10

mins, 10 weeks or 10 years” if it is 10 mins I generally walk away, 10 weeks I try to compromise, 10 years, well I am putting on my armour and starting to look like Mel Gibson in Braveheart.

Perspective is a powerful thing to have in life, especially in conflict.

To start the new year, I want to challenge you all to step back and look at the confrontations you are having (if any) and do the 10,10,10 rule. If it really isn’t that important it might be the time to be happy not right.

Remember it takes 43 muscles to frown and 17 to smile: “Mr Google”. Life is too short, let’s smile more.

© Людмила Короткова - stock.adobe.com

22

MANAGEMENT

ResortNews | January 2022

MARKETING

Email design trends ready to take over 2022

By Chris Bram, Vice President of Customer Experience, Cendyn

So, without further ado, let’s explore the design trends ready to invade your inbox in 2022.

Trend 1: Soothe your audience with soft gradients We’ve seen this trend grow steadily over 2021 and for good reason.

The combination of softly blended colours (especially in pastels and lighter shades) paired with a subtle background can set an instantly relaxing tone for your emails, putting the reader at ease - just like a getaway. You can use soft gradients to craft spa promotions, entice previous guests back to a place of natural beauty, or simply lull your audience into a vacation state of mind. Using soft gradients to portray a sense of tranquility and wanderlust can provide just the right nudge towards the book button.

Trend 2: Go minimal for maximum impact People are busy and inboxes are crowded. To offer some visual relief and keep readers from glossing over your content, go Zen and strip down your emails to create a clean, minimalist design with a straightforward message and simple details. Abandon the typical marketing fluff and deliver clear, thoughtful content ResortNews | January 2022

© Sergey Nivens - stock.adobe.com

With 2021 in the rear view mirror, it’s time to look ahead and get ready for a fresh start in 2022 beginning with your email design. While several trends from last year are poised for growth in the months ahead (like dark mode and soft gradients), we are also seeing new opportunities for marketers to get creative and encourage guests to connect with your brand in new, exciting ways. centred on a single promotion, event, or other highlight. It’s also important to include a generous amount of white space paired with unobtrusive accents.

Sometimes less really is more.

Trend 3: Amp up engagement with micro-interactions Hotels are all about creating rewarding guest experiences, and those experiences can begin in your email with micro-interactions.

Just like the name suggests, micro-interactions ask readers to perform a small but meaningful interaction with your content.

This is a great option to create some 1:1 engagement without the burden of hosting large files that can slow down email load times.

Some examples of microinteractions in emails include: •

Using a ‘Hover’ effect to make your buttons change colour

•

Asking readers to like, share and/or save your content

•

Include common social media interactions like swiping and clicking

Trend 4: Do not fear the dark side (or dark mode) If white space isn’t really your

thing, consider embracing the dark side, or at least dark mode. This 2020 trend has been steadily increasing in popularity since it’s easier on the eyes, makes content easier to read, and truthfully - black backgrounds just look really cool.

Email clients including Gmail, Apple-Mail, Yahoo Mail, and even Outlook have all started offering dark mode, which means marketers can get creative and create separate emails designed specifically for light and dark mode.

Trend 5: Illustrate your intentions More subtle than photography or video, the right illustrations can add a sense of delight and whimsy to your email campaigns.

Illustrations like line drawings can be used as seamless transition to break up content blocks or as a storytelling tool that lets people envision themselves at your property in a different way.

Just don’t overdo it. Overcrowding your emails with too many images, whether they are illustrations or traditional photography, can create visual clutter that obscures your content.

Trend 6: Get animated While minimalism has its rewards,

MANAGEMENT

some brands are made to stand out. For those properties, animation offers a fun, attention grabbing way to shout your message to the masses (or at least your email subscribers).

There’s a reason savvy marketers love animated emails; it’s been proven time and again how animated emails can drive conversions, when paired with the right message and tone. With the ability support 24-bit colour as well as 24 bit transparency, we also predict that that APNG files will end up replacing GIFs as marketers favoured format for email animation in 2022.

2022: Your best email performance year yet While we can’t predict everything that will happen in 2022, the importance of email marketing cannot be overstated. Your subscribers are looking for authentic brand engagement, and your emails represent the type of experience guests can expect at your property. Every part of your email, from the colours and images you use to the way your content is laid out, becomes part of that brand story. We hope these trends help ignite your creative spark and set you up for a positive and engaging 2022.

23

TOURISM REPORT

Queensland tourism keeps up the fight into 2022

By Grantlee Kieza, Industry Reporter

The Queensland tourism industry has shown extraordinary resilience over the last two years and even though the new Omicron variant of COVID threatens its recovery, consumer confidence is coming back and the desire to travel is growing.

Rising vaccination rates and projected border openings are two of the bright lights at the end of a tunnel which has often seemed endless in recent times.

Daniel Gschwind, Chief Executive of the Queensland Tourism Industry Council, told us: “If anything, the difficulties of the past two years have shown Queenslanders how resilient their tourism industry is.

“Despite tremendous uncertainty and closed borders, our industry has rallied and is already showing signs that it will come back more resilient and even more successful than it was before the pandemic hit our shores.

“As the nationwide vaccination rate climbs higher, the tourism industry eagerly awaits borders opening to our interstate family and friends, and international travellers.

“Consumer confidence is coming back and the desire to travel is growing. Studies show that Australians are bringing forward their interstate holiday plans, with many holidaymakers already planning their next trip across state lines.

“While our industry has certainly lived through some dark days, the future of Queensland tourism is bright. Ensuring that vaccination rates continue to climb and that borders remain open will see holidaymakers travelling throughout our Sunshine State once more”.

24

Photo by Jeremy Bezanger on Unsplash

will be a busy Christmas period.

The Gold Coast has been subject to strict border rules, which are set to ease due to the 80 percent double dose vaccination rate.

Patricia O'Callaghan, the Destination Gold Coast chief executive, told the ABC that the Christmas/New Year period was critical for the industry and that tourism operators had their fingers crossed for a “business as usual” holiday season.

The Gold Coast has been subject to strict border rules, which are set to ease due to the 80 percent double dose vaccination rate.

Gold Coast accommodation providers say they are about 70 per cent booked for the Christmas period.

But Mr Gschwind said the state’s battered tourism sector was also nervously watching developments around the Omicron variant of COVID ahead of the state’s planned reopening.

He said while Omicron might throw another twist into the COVID story the industry had known for some time that with new variants or not, it would have to learn to live with the virus.

Mr Gschwind told The Sydney Morning Herald that Omicron’s emergence was “a discouraging development” that would likely

affect global travel, which is not what the industry was hoping for after such disruptions over the last two years.

The Omicron variant has also rattled travel industry stocks with Qantas, Flight Centre and Webjet experiencing sharp falls.

With no international tourists expected this summer, Mr Gschwind said any delay to Queensland reopening to the rest of Australia would be a “devastating blow” to the industry.

Flight Centre managing director Graham Turner said new bookings had dipped as the public waited for government announcements.

The Gold Coast's peak tourism body says the emergence of the new Omicron COVID variant in Australia has left the industry on edge ahead of what it hopes

MANAGEMENT

But he said initial indications were that the Omicron variant caused only mild symptoms in vaccinated people so it was hoped that widespread border closures or lockdowns would be unlikely.

ResortNews | January 2022

Tourism forcast:

The long road to our postpandemic reality underway © PX Media - stock.adobe.com

By Mandy Clarke, Editor

Australia’s tourism and hotel industries have begun their long journey toward recovery according to the latest edition of Deloitte Access Economics’ Tourism and Hotel Market Outlook.

The report suggests the sector is travelling out of a spiral of immense losses caused by the COVID pandemic. But it says the road will “remain rocky for some time yet”.

Deloitte Access Economics partner and Deloitte national tourism leader, Adele LabineRomain, said: “Australia has achieved so much in combatting the pandemic, but success on the health and economic fronts has imposed a particularly heavy burden on our tourism and hotel sectors.

“They were the first to be impacted by government public health COVID responses, they will still be among the last to recover, and that recovery remains highly uncertain and reliant on many factors, from local and international economic developments and COVID’s ongoing unpredictability.

“With travel restrictions gradually easing for most parts of the country, and the lifting of our international travel ban, the recovery can hopefully gain traction, but the industry will remain under pressure until ResortNews | January 2022

borders are fully open again and the relatively free flow of people into, and within, Australia can resume.”

Tourism has been shattered Labine-Romain said. “As states and territories shut their borders to non-essential trips in March 2020, there was, of course, an immediate decline in domestic tourism, with overnight trips and spend down by 67 percent and 80 percent respectively in the June quarter.

“There were then early signs of recovery from the September 2020 quarter, as restrictions began to ease in some states, albeit more in the leisure than business segment. This continued through to most of the June 2021 quarter before the start of Delta-induced lockdowns and border closures.

They may have been trying to contain Delta’s spread, but they stopped the domestic tourism recovery almost in its tracks.

“Globally, a significant share of consumers are still not ready to head overseas. Other than India, less than 30 percent of consumers across Australia’s key source markets are showing a likelihood to travel internationally for leisure purposes, an indication that the effects of the pandemic on global tourism will take some time to unwind, and a slower recovery for our inbound, and export dollar generating, travel industry.”

On the outlook?

return to 2019 levels in 2025.

“It’s fair to say Australians are desperate to travel, especially heading into the traditional peak holiday season, and well into 2022,” Labine-Romain said.

“To offset the shortfall in international visitor spend, any increase in domestic travel by Australians needs to be above already high levels of domestic tourism activity. It would take around seven domestic overnight trips to generate the equivalent spend of one international visitor. And this would need to be in addition to the average 14 domestic trips Australians typically take in a year. This represents a significant challenge for policy settings and the sector.”

“There is increasing hope for Australian tourism’s recovery given our relatively high vaccination rates and state and territory re-opening plans.

“Some market segments are expected to recover more quickly than others, led by the holiday segment and those looking to reconnect with friends and family, and initially from short haul source markets in the region.

“Virtual meeting technologies, cost savings and organisations’ growing consciousness around sustainability will see corporate travel face a slower return than leisure travel.

“Overnight trips in Australia are forecast to grow to 94 million by the end of 2021, down on earlier forecasts thanks to Delta setbacks, and expected to surpass 2019 levels and reach 124 million trips by the end of 2022, and 132 million trips by 2023.

“The recovery of international tourism is going to be slower than expected, and than the industry would like. While arrivals are forecast to reach around 6.6 million by the end of 2022, 76 percent of 2019 levels, this early recovery stimulated by pent up demand is expected to moderate after 2022, and only

MANAGEMENT

Hotels devastated “Delta lockdowns in Sydney and Melbourne have devastated hotel markets in these cities,” Labine-Romain said.

“They pulled occupancy rates down to the 20 percent range and placed further pressure on smaller markets such as Adelaide, Canberra, Darwin and Hobart dependent on interstate travel demand.

“That said, state and territory government incentive schemes to encourage intrastate and territory travel were warmly welcomed by the sector and had a strong and positive impact on occupancy rates.”

Tourism and Hotel Market Outlook uses the forecasting, modelling and analytical expertise of Deloitte Access Economics and also draws on Deloitte’s real estate industry experience and insights, and a range of other sources, including hotel performance and pipeline data collected by STR Global Limited.

25

TOURISM REPORT

Resilient Sunshine Coast tourism pivots for recovery In December, when Visit Sunshine Coast (VSC) held its Annual General Meeting it was joined by 150 members and the Queensland Minister for Tourism Industry Development, The Hon Stirling Hinchliffe, for an end-of-year event.

At the AGM, VSC Chair, Mr David Ryan, reported that while 202021 had been one of the most challenging years ever for tourism operators on the Sunshine Coast, the region had been able to deliver record expenditure from the domestic market and was optimistic for a strong revival in interstate and eventually international travel with the imminent re-opening of borders.

finished the 2021 financial year as the most resilient tourism region in Queensland – and one of the best performing regions across Australia.”

Mr Ryan confirmed that two member-elected Directors, Jennifer Swaine and Zoe Sparks, had been re-elected to the Board, while Skilled Based Directors, Mark Skinner and Rodger Powell, had been re-appointed to the Board.

Visit Sunshine Coast CEO, Matt Stoeckel, said that with borders opening in a few weeks’ time to NSW and Victoria it was a time to be confident, but not complacent, with significant work to do to re-establish these markets.

Visit SunshineCoast CEO Matt Stoeckel with Queensland Minister for Tourism, Stirling Hinchliffe

“When we compare the year ending June 2021 against the year ending June 2019, domestic visitor numbers declined by 7 percent, and if we add in the loss of international travel, the region suffered a 13.9 percent decline in overall visitor numbers,” said Mr Ryan.

Victoria that remained closed for much of the period.

“Of our sectors, business travel was the hardest hit with a 40.8 percent decline. The loss of corporate and conference travel particularly affected mid-week performance and yield.

of Covid19, for the year ending June 2021, the Sunshine Coast achieved a new record of $2.8 billion in domestic overnight visitor expenditure. This was a 24.5 percent increase year on year and a 7.7 percent increase compared to 2019.

“It shows just how tough the year was for the tourism industry. The hardest hit were our international markets, as well as our primary interstate markets of NSW and

“But there were some highlights in the region’s tourism performance during the period.

One of these was that despite the unprecedented disruption

“So despite this hugely challenging environment Sunshine Coast was able to get on with the job at hand and from a performance point of view, we

“The upcoming summer holiday season is anything but ‘back to normal’ as yet, and we have plenty of capacity in the second half of January, but our members are reporting increased optimism for the year ahead with the return of more stability,” said Mr Stoeckel.

“One of the reasons for the resilience of our performance in 2020-21 was the agility and effectiveness of our marketing campaigns, and we are already looking ahead to 2022 with a range of campaigns to rebuild and revive the market.”

Image courtesy of Visit Sunshine Coast

26

MANAGEMENT

ResortNews | January 2022

EVENTS

Mike Phipps Finance Team’s Merry Christmas gathering Mike and the team welcomed guests on December 10, to a casual get together on the deck at Northcliffe Surf Club, Surfers Paradise.

It was a wonderful informal evening where drinks flowed and delicious nibbles were devoured, alongside friendly banter and lots of laughter.

Hynes Legal, continues to strengthen its offering to clients with the appointment of Vanessa Sciortino as Associate Director.

Vanessa brings with her almost two decades of professional experience in

ResortNews | January 2022

property and strata law with a particular focus on all facets of management rights, from acquisition and sales (off the plan and established), whether standalone businesses or franchised, to drafting variations and extensions of variations management rights agreements.

Vanessa is a member of ARAMA and a committee member of

ARAMA’s Brisbane branch, is an Australian Building Management Accredited (ABMA) industry practitioner and sits on the ABMA Building Management Code review panel. She was also recently appointed to the Property Law and Community Management Committee of the Urban Development Institute of Australia Queensland (UDIAQ).

EVENTS & APPOINTMENTS

APPOINTMENTS

Hynes Legal is delighted to welcome Vanessa Sciortino to their team

27

ARAMA, Gold Coast EVENTS

Everyone let their hair down at the ARAMA Gold Coast Christmas social event on December 7.

HOTA’s rooftop was a beautiful venue to celebrate the end of a challenging year with music, laughter, delicious food, and a few drinks.

Special thanks to sponsors Col Myers from Small Myers Hughes Lawyers, Felicity Frewin from Capitol Body Corporate Administration, Darren Brent and Bobo Qi from Property Bridge (Australia) and John Punch from Short Punch & Greatorix. Not forgetting a huge thank you to Kelley Rigby from Letts Rebuild who helped organise the wonderful night and to performer Hannah Rigby whose beautiful vocals made the night quite special.

ARAMA, Sunshine Coast It was also a wonderful night at the ARAMA Sunshine Coast Christmas event held on December 9 at the Duporth Tavern.

Sponsors included Adam Thomas from Direct Hotels, Michael Kleinschmidt from Stratum Legal Pty Ltd, and Hayden Rooney and Alex Knight from Financial Strategies Group. Not forgetting a shout out to Chenoa Daniel from ResortBrokers who organised the event.

28

EVENTS & APPOINTMENTS

ResortNews | January 2022

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DEVELOPMENT NEWS

Development round-up and outlook for 2022 Around 3,700 new rooms were added to the accommodation market in 2021, these were hotel projects in development in the years preceding the pandemic.

In Melbourne, new brands included the W Hotel, which opened in early 2021 and the Hyatt Centric, which came online in December.

The Marriott’s The Tasman opened in Hobart, and Sofitel made its debut in Adelaide.

There are more developments due to open in 2022

The Tasman, a Luxury Collection Hotel, Hobart

Deloitte Access Economics partner and Deloitte national tourism leader, Adele LabineRomain, said: “Looking ahead, there is the potential for around 15,000 new rooms in likelihood adjusted terms to be added to the room stock across the country in coming years, with around 5,000 of these expected to open in 2022.

Quest Apartment Hotels 375 Wickham Terrace

30

DEVELOPMENTS

ResortNews | January 2022

“These are significant numbers, especially so in some markets with 60 percent of the new stock concentrated in Melbourne, Gold Coast and Sydney. The pipeline is weaker than our outlook earlier in the year, due to a shift of some developments from hotel to residential, and delays in commitment from investors of projects not yet in final stages of planning or construction.

“The pace of recovery for hotels will vary across the city markets. Brisbane, Perth, Gold Coast, Canberra and Darwin are expected to see occupancy rates return to 2019 levels by 2023.

“Sydney and Melbourne will take a little longer due to their high pre-pandemic occupancy rates, their greater dependence on demand from international tourists and corporate travellers, and significant new supply coming on line.

“Average room rates are expected to recover more quickly than occupancy, returning to 2019 levels ($194) by the end of 2022 for all markets, given properties mostly maintained rates even in periods where demand was restricted.”

Other development news from Quest Quest Apartment Hotels will be the tenant of a new hotel currently under construction at 375 Wickham Terrace, Spring Hill.

Quest Apartment Hotels, an aerial view from the Wickham Terrace

According to Quest’s Head of Growth & Capital Strategy, James Shields, Quest on Wickham Terrace will “service a broad range of traveller segments including a large medical community, with numerous health providers already in the area and Wickham Private coming soon”. Brisbane is set to experience an infrastructure and investment boom, with the 2032 Olympics now secured.

A fantastic new motel for bushfire and COVID ravaged Batemans Bay The Isla motel, will open its doors in the coastal town of Batemans Bay this summer, reviving the retro motel for the modern traveller.

Designed by friends, for friends, the boutique motel is a nod to nostalgic holidays of the past,

while offering modern design and amenities to appeal to a new generation of travellers.

Retro motels are having a cultural moment right now, inspired by Netflix shows such as Schitt's Creek and Motel Makeover and a growing appetite from travellers seeking renewed pleasure in exploring Australia’s nostalgic coastal towns.

Quest on Wickham Terrace will bring 81-rooms to Brisbane’s inner north, with the hotel occupying 5 levels of the 15-storey mixed use property being developed

by Barber Property Group.

The development will also include a premium medical facility called Wickham Private which was announced in May 2020, construction commenced in October 2021, and is expected to be completed in November 2023.

Quest will provide a mix of one, two and three-bedroom apartment style hotel rooms, as well as a ground level reception, business lounge, conferencing facility and a rooftop pool.

Retail, food and beverage offerings will also be available upon completion.

ResortNews | January 2022

The Isla motel Batemans Bay

DEVELOPMENTS

31

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

MANAGEMENT RIGHTS Gold Coast

Management Rights Transactions

Matthew Beckett

Palm Beach

RB

Cashelmara Beachfront Apartments

Anthony Richardson

Burleigh Heads

RB

Pelican Sands

Mark & Dana Osborne

Tugun

Surfers Palms Central

Jonathan Yim

Benowa

RB

Devcorp Porfolio

Christina Zhang

Kangaroo Point

RB

Marquise Apartments

Ann Zhou

Kangaroo Point

RB

Sierra Nuvo

Ke Ke

Highgate Hill

RB

MRS

Brisbane

Sunshine Coast / Wide Bay / Fraser Coast

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

Acqua Apartments

Currimundi Lake Villas

Garry & Faye Gibson

Currimundi

Horton Resort

RSG

Maroochydore

MRS RB

Island Waters Apartments

Accurate Property Group

Birtinya

RB

Chris de Closey

Yeppoon

RB

Central Queensland Bayview Tower

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SUNSHINE COAST & QUEENSLAND WIDE

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MOTELS & OTHER Queensland Beachcomber Peregian Beach

Strelva P/L

Peregian Beach

Best Western Marco Polo Motel

Garry Singh

Mackay

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Billabong Lodge Motel

Riley Dwyer

Townsville City

Centre Point Mid-City Motor Inn

Hayward

Warwick

Chinchilla Motel Inn

Birch Hotel Group

Chinchilla

TB

Chinchilla Motor Inn

Rob and Steph Bergamaschi

Chinchilla

RB

Citywalk Motor Inn - Investment

Shane and Kylie Manski

Rockhampton City

RB

Citywalk Motor Inn - Leasehold

Shane and Kylie Manski

Rockhampton City

RB

Crown Hotel

Jain

Home Hill

CRE

Joe’s Waterhole Hotel

Gage Roads

Eumundi

CRE

Park House Motor Inn

Gregory John Flint

Oakey

RB

Pegasus Motor Inn

Will Creedon

Hamilton

RB

The Jolly Swagman Motor Inn

Martin Croad

Goondiwindi

RB

RB RB CRE

New South Wales

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

Central Caravan Park

C. Rose

Kempsey

Comfort Inn Country Plaza Taree

Bains

Taree

CRE

TB

Grenfell Motel

Yeetender Gutpa

Grenfell

CRE

Kinross Inn

R&M Clark

Cooma

Narromine Tourist Park

Hennock

Narromine

CRE

Settlers Motor Inn

Grimes

Tenterfield

CRE

South Coast Retreat

Brendan Read

Greenwell Point

RB

Tweed Harbour Motor Inn

J&S Vincent

Tweed Heads

TB

Aurora Cottages

Prakash Patel

Pomonal

Beachcomber Motel & Apartments

Linda Cooney

Apollo Bay

CRE

City Square Motel

Fengying Xuan

Melbourne

CRE

Glider City Motel

Gurpreet Singh Mann

Benalla

CRE

Kyabram Country Motel

Katharine Jenkins

Kyabram

CRE

Mahohany Motel

Marty Williams

Warrnambool

CRE

Manifold Motor Inn

Svapnil Patel

Camperdown

CRE

TB

Victoria CRE

Paruna Motel

B. Pekin

Swan Hill

Southern Ocen Motor Inn

John Nunan

Port Campbell

TB

The Port O Call Motel

Alexa Cook

Port Campbell

CRE

Woodlands Rainforest Retreat

Andre Vududala

Narbethong

CRE

CRE

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

Agent - KEY: RMS - Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RB - ResortBrokers; RS - Resort Sales; TO Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH - Ward Commercial Hotels. * In conjunction

34

PROPERTY

ResortNews | January 2022

Gold Coast

MANAGEMENT RIGHTS SPOTLIGHT

JA N UA RY 2 0 2 2

© Photo by Alejandro Alfaro M on Unsplash

Gold Coast prepares to bounce back now

By Grantlee Kieza, Industry Reporter

short-stay MR businesses are in trouble due to ongoing challenges. He confirms this idea is “a myth” as most businesses in the sector are now doing well.

The Gold Coast management rights industry is like a tightly compressed spring, primed for 2022.

Six years ago, ResortBrokers’ Alex Cook sold Soul to Mantra for $25.7 million with a seventimes-plus multiplier. Industry experts say that while the Coast is unlikely to see a seven-times multiplier any time soon, given COVID’s carnage, good times lay ahead.

Over the last two years of the pandemic, the Gold Coast management rights industry has largely been a two-paced economy, with permanent complexes bearing up well and shortterm holiday lets broadsided by uncertainty over border restrictions and lockdowns.

The Gold Coast holiday market is still largely geared for international tourism, however.

So, while the opening of the

36

Paul Mueller

Steve Campbell

Queensland border to other states will help, the operators of short-term accommodation buildings are crying out for overseas tourists.

The rocky road through the pandemic has also been littered with other complications for operators including additional cleaning and sanitising procedures, the closing down of pools, and compliance matters over COVID rules. Plus, there has been the added burden of booking cancellations and refunds. More people working from home has also added additional demands on the caretaking duties in

permanent complexes.

Despite the challenges faced by the sector over the last 18 months, now is the perfect time to buy a short-term management rights business on the Gold Coast, says Paul Mueller from ResortBrokers.

“Occupancy levels are now back up to pre-COVID levels,” he reports. “But there is a shortage of short-stay stock because vendors are waiting to provide a full year profit and loss with higher figures expected due to the strong last 12 months occupancy and average daily rates.

“However, these vendors will be ready to sell in early 2022 and it will be a great time for smart buyers to snap them up.”

He reveals: “We have many keen buyers waiting for Gold Coast short stay management rights businesses to come onto the market.”

Additionally, he notes: “I expect multipliers will stay the same, but profits will shoot up, it’s the perfect time to buy and add easy value to your business because it’s not going to be hard to fill rooms next year.”

However, he warns, it is a mistake for buyers to assume there will be many bargains available because they mistakenly think

Fellow ResortBrokers colleague Steve Campbell agrees that now is a good time to invest in a management rights business.

PROPERTY

ResortNews | January 2022

YOUR MANAGEMENT RIGHTS SPECIALISTS DEDICATED TEAM full-time, dedicated

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“I think there's going to be some uncertainty for a while until things really return to normal. The border reopening will certainly help but with the uncertainty still around testing I think it’s going to take a while to get back to pre-COVID times.”

Jonathan reports that permanent complexes on the Gold Coast had largely fared well during COVID “and if anything, it's driven rent up”.

Jonathan Hanaghan

© faris-kassim-IDP1eRjKtho on unsplash.com

He says: “I cover the Surfers and Broadbeach area where management rights businesses have been hit the hardest, but I am beginning to see a bounce back. Short-stay managers are reporting high occupancy levels from January onwards.

Steve adds: “On top of high holiday demand, I foresee a shortage of short-stay room stock due to an increase in owner occupiers and an uptake of long-stay rentals. A shortage of vacant rooms will lead to higher nightly rates and give operators decent figures.

“The 2022 calendar year is looking really strong.”

“I predict a strong 12 to 24 months ahead for the MR sector.”

Jonathan Hanaghan, a director of Gold Coast-based Jonathan Grant Accountants, says the reopening of the Queensland border is a light at the end of a two-year COVID tunnel after the short-term rental market in Surfers Paradise and Broadbeach was reduced to “a bloodbath”.

“Certain pockets of the coast have done okay,” Jonathan told Resort News.

He says: “Burleigh is doing okay short term, Palm Beach isn't too bad, and Mermaid Beach is good because there is less supply. But the big holiday areas have struggled.

“Good permanent properties are still achieving multipliers of more than six, but I don't think you're going to get that number on a holiday property for a while,” he says.

Jonathan, who has spent 20 years in management rights, stresses that with unprecedented times having affected the industry, it is imperative for anyone in the sector to use specialist advisors in the field.

He says: “Three or four times a year, I would get calls from someone who's had a nonspecialist accountant trying to do a verification on a

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38

www.redtenfinance.com.au PROPERTY

ResortNews | January 2022

property, only for the bank to reject financing it.”

permanent complex, and in the last 12 months its letting pool has been reduced from around 120 units to 110. They have lost 10 percent of their letting pool.

Jonathan admits that in the early stages of COVID, there was a lot of uncertainty, even over whether people would be able to pay their rent.

“It's a combination of baby boomers downsizing from big houses into units and younger people who, in order to buy a house, have to move out to the back of the Gold Coast to find something affordable.

“Now, there are waiting lists for people to rent these units because the Gold Coast is a such a desirable place to live,” he says.

Nick Smith, director of Red10 Finance, spent 30 years in banking in England, Ireland, and Australia. He says that despite the COVID threat, boom times await the Gold Coast.

“It's a very buoyant atmosphere, with the expectation that there will be great trading ahead.

“Some holiday businesses have even managed to trade very well throughout the pandemic by offering special deals to the point that my wife and I spent our wedding anniversary at Coolangatta which is just a 15-minute drive from home. It was a great break, and we didn’t have to worry about jet lag.

“From a banking point of view,

Nick Smith, Red10 Finance

David Jackson, Hospitality & Strata.

management rights is a resilient industry. Not too many things can go wrong. The business model itself is fantastic and probably not repeated in any other industry globally.

Without a doubt, it would also be one of the lowest risk businesses to any financier.”

forward to those great times when all the signs on the Gold Coast say ‘Sorry, No Vacancy’.”

In particular, Nick predicts “an absolute boom” for Surfers Paradise in spite of economic challenges during the pandemic, due to the incoming a flood of festive holidaymakers.

“We are seeing a trend in both holiday and permanent complexes where the letting pools are actually decreasing,” says David, who spent 40 years in the construction, property, and tourism sectors.

“Border closures have affected people, but we are looking

The rush to the Gold Coast, though, has caused problems in permanent complexes, according to David Jackson, senior partner in Bundall-based accounting firm, Hospitality & Strata.

“We recently did work for a large

SPECIALIST ADVISERS TO THE ACCOMMODATION & HOSPITALITY INDUSTRY

“Instead, many of them decide to stay close to facilities and buy a two-bedroom unit. Is that trend going to continue? I'm not sure but the trend has been there for the best part of three years.”

David predicts domestic tourism will be strong for the next few years especially on the Gold Coast, but he says diminished letting pools are a risk for anyone entering management rights.

Another rising trend in permanent complexes, he recalls, is body corporates becoming “more demanding of managers”.

He explains: “We are seeing this particularly in buildings that are predominantly residential. P42

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

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PROUD MEMBERS OF

39

The Resort Accommodation and Sales (RAAS) Gold Coast team

Kerrie Lush, Senior Management Rights Broker You may know Kerrie as the daughter of Rusty Lush the founder of RAAS, she has been involved in the industry since 2003 after purchasing her first holiday complex.

40

Anna Liu, Senior Management Rights Broker & Unit Sales Executive

Jonathan Yim Senior Management Rights Broker & Unit Sales Executive

David Lennard, Director of Projects and Senior Management Rights Broker

Originally from China Anna has been living on the Gold Coast for nearly 20 years and she is proud to work for RAAS Property Group.

Jonathan is recognised as a highly motivated and efficient real estate sales agent, with a customer orientated mindset excellent in achieving the highest level of customer satisfaction.

Dedicated Project Sales professional, David specialises in all aspects of project marketing, including the creation of off the plan management rights businesses within the projects being marketed. This allows developers the ability to incorporate the Management Rights sale into the project financials at inception. David brings several decades of senior management, and managing high performance sales teams, in highly regulated environments.

Kerrie was a hairdresser for 28 years, the owner of two successful salons before moving on to buy, sell and manage her own complexes and a motel.

Anna has extensive connections with Chinese communities here in Australia and in China. Her personal data base makes her successful in the real estate business.

Kerrie began working within the RAAS organisation in 2010, assisting RAAS members/management rights owners to sell units within their own complex.

Anna has an enviable reputation for professionalism and honesty for which she is well known amongst the growing Chinese buyer market.

She told us: “I was also a shoulder to cry on when needed, I looked after over 350 managers, answered their questions and helped with tricky situations when needed.”

She has been in the real estate industry for over 10 years, and has provided excellent service to customers, particularly with bilingual abilities (English and Chinese).

Kerrie decided that selling management rights was the next step because of her knowledge of, and strong connection to the industry, this is a role she has embraced.

Anna also boasts a Masters in Accounting, which enables her to provide a thorough and accurate market analysis for clients. Her guidance leads to a successful outcomes for her clients.

“I love my career and I am successful because I keep it simple. People tend to overcomplicate the industry, but it doesn’t have to be that way, sure there are hurdles but you just need to keep your eye on the end goal,” she added.

Anna is professional, ethical and full of passion to assist people when going through the process of purchasing or selling management rights and properties. Her customers find her easy to talk to and they trust her.

ResortNews | December 2021

A good communicator with a pleasant approach, he is able to connect well with people from all walks of life through his enthusiasm to learn and undertake new challenges in the fast changing multinational society.

Jonathan is highly qualified with diversified skills holding two bachelor degrees in engineering and computer science, as well as two master degrees in business management and finance.

He is able to communicate fluently in English, Japanese, Mandarin and Cantonese with excellent customer service and sales experiences in the Asia Pacific region including Australia, Japan, South Korea, China and Hong Kong.

He is passionate about home DIY projects and always explores the latest home design and technical requirements, a self-initiated handy man transforming practical dwellings to dream home at leisure.

PROPERTY

Honing his skills in the financial services arena across Asia, he grew the business from a small office in Sydney to a business spanning Asia. David’s outstanding results soon saw him seconded from Sydney to the Gold Coast. David’s background sees him bring fanatical organisational, process and sales skills to the table. From the developers perspective, this gives confidence that there is consensus building and communication between all stakeholders on the vendor side, whilst giving the Management Rights purchasers comfort that they have a highly skilled, and deeply knowledgeable sales professional to guide them through the sometimes daunting “off the plan” process.

ResortNews | January 2022

01

Management Rights

Things change monthly COVID has certainly brought about some very interesting times within our industry.

the good ol’ facetime. Same goes for the Management Rights. Purchasers are looking to buy a different lifestyle, live near the beach, near their kids’ schools or generally just to try something COMPLETELY DIFFERENT! It is a re-assessment of people’s lives because of the pandemic, so where do people want to live?...

Queensland’s South East.

Real Estate prices and sales of Management Rights have prompted a very big year for most offices on the Gold Coast, including ours, and with people essentially “buying themselves a career”, it has also been a great incentive for buyers to “get into the market” having a nice salary to pay off their loans. In my opinion the Managers units have not had the same luxury of hiking price rises, they have still fetched good prices for the outgoing Manager and made up for the not so rising of the Multipliers.

Gold Coast has seen a boost in local holiday makers and week-enders. Our southern Holiday buildings have suffered, particularly Rainbow Bay being so close to the border but the Managers have soldiered on and let’s hope that this Christmas pays off for all.

People from the Southern states are flooding in and buying real estate sight unseen in many cases, other than the usual photos and

Without the traditional population growth, we are now in a completely different situation. Construction is everywhere currently in areas where people

are migrating to in great numbers we have already seen developers move swiftly to secure sites and we see a growing numbers of cranes of the horizon and new developments well under construction.

That also means Off the Plan Management Rights. Gold Coast has certainly topped the market in Residential and Management Rights sales, higher than the Sunshine Coast and Brisbane, but we have all benefited that’s for sure.

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You cannot get any closer to the water - waterfront complex - moorings available so bring your boat and jet ski - relax, fish and enjoy the tranquillity alongside the river - a spot desirable by many. Spacious, professionally valued and renovated ground floor 2 bedroom unit - large open plan lounge / dining room / kitchen, main bedroom with en-suite, separate laundry, some storage, lock-up garage for Manager, swimming pool and BBQ facilities overlooking the water. No recorded working hours!! Take advantage of a good business in a vibrant and expanding area and enjoy a lovely home... Call for an inspection.

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“We’re seeing that many people who have units on the coast are now occupying them while they're building homes or simply moving into the units, so that is having an impact on the letting pools.

P39 Units are being sold from the letting pool by investors who have been largely absent. Now owner occupiers are moving into many of the permanent buildings and imposing more demands on managers.”

In previous years, David’s company has had a large volume of due diligence work through the buying and selling of short-term management rights properties, but he says that “to be honest, the due diligence work has been pretty much non-existent in the shortterm sector since COVID hit.

“I can literally count on one hand the number of short-term sector jobs that we have done recently.

“Thankfully, we haven't had any clients fall over. But some have got pretty tight.

He admits: “One of the things that has helped sustain many in the management rights industry through COVID is the caretaking fee. That obviously varies. If it's a predominantly holiday let building the caretaking fee in terms of the overall income is maybe not that high because traditionally those

“A shortage of accommodation also means an increase in rent and that puts pressure on the operators who have to then increase their prices.”

Michael Philpott, MR Sales

Phil Trimble, MR Sales

He says despite the industry going through a “correctional stage”, there was a very strong future ahead.

operators get letting commission and other holiday incomes.

But you get a lot of buildings which are now predominantly residential, and the caretaking fee is actually quite a large component of the income.”

going to make a lot of money”.

“But anyone who is selling now is really at the bottom of the market,” he says, “because there has been so much uncertainty during COVID.

“Money is cheap at the moment,” Michael admits, “and syndicates are still jumping on anything with a $500,000 net profit and above.

We are seeing multiples well into the sixes for good properties.”

David adds: “The industry is quite resilient and if you were new to an area and wanted to buy a business that was COVIDproof, management rights stand up well even though it has been knocked around.”

“Permanent buildings have been showing very strong returns but there has been a big impact with a lot of units being lost to owner/occupiers,” Michael says.

Between them, Michael and MR Sales colleague Phil Trimble have 40 years’ experience in the management rights sector.

Broker Michael Philpott, from MR Sales, says it’s all good news going forward on the coast “because a lot of people are

“There were 30,000 (11,000 on the Gold Coast) or so, people moving to Queensland in 2021 and it’s predicted there will be another 53,000 in 2022. That will put more pressure on permanent units.

Phil says that “uncertainty” over border closures had been the key concern for short-term properties on the Gold Coast during COVID, and rising real estate prices and a loss of units in the letting pool had hit permanent complexes.

New managers for Pelican Sands Beach Resort New to the management rights industry, Mark and Dana Osborne are now the very new managers of Pelican Sands Beach Resort, in Tugun on the Gold Coast.

After what Mark describes as a “lengthy” purchasing process which began in April 2021 they were able to take over the management of the resort on Dec 1, admitting they have dived straight into the deep end of a “very busy” holiday season. “Que sera sera”.

Pelican Sands Beach Resort is a cute, beachfront, boutique resort with quality family sized holiday apartments that boast breathtaking beach views over the Gold Coast.

The enviable location of the property initially caught Mark and Dana’s attention, but a suitable manager’s unit

42

along with the large office space sealed the deal.

Of course, outstanding future business potential was also a factor that contributed when they finally decided to buy.

Mark is a valuer by profession, and so he knows a bit about property, and Dana is an IT engineer, but when they decided to change career, they sought expert advice on management rights businesses from Phil Trimble at MR Sales.

Mark said: “It is important to consult experts when you are about to make such a big decision. We are new to management rights, and we depended on the help and advice we received from MR Sales throughout the whole process. Our agent Phil is very professional, he provided an excellent support network to us; he is very knowledgeable about the industry.”

Dana and Mark Osborne

Mark grew up on the Gold Coast and chose to stay local after also considering MR businesses on the Sunshine Coast, but he was also fulfilling one of his wife’s desires, which was to relocate

PROPERTY

to the southern end of the coast. Mark said: “Sure, this is something new, but having been involved in professional boxing in one capacity or another, I look forward to the challenge.”

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“Once you get a situation where the manager’s unit is a lot more expensive compared to the business the traditional management rights concept becomes a little more difficult,” he says.

“Who wants to pay $2 million for a unit when the business is costing much less than $1,000,000 and only getting around $150,000 net?

“But there are good opportunities for people coming into the industry because it is the bottom of the market, and I guess the story is to watch this space next year when things will settle down.”

It looks like the future of Queensland's residential property market is coastal.

The QBE's Australian Housing Outlook 2021 - 2024 prepared

by BIS Oxford Economics Report predicts both the Gold Coast and Sunshine Coast are on track to outpace Brisbane property prices by 2024.

Cameron Wicking and Paul Grant, from Mike Phipps Finance, say that while COVID has been challenging for many short-term properties on the Gold Coast,

Cameron Wicking, Mike Phipps Finance

the market represents good buying, although they expect some savvy operators will be holding on to their businesses to build up their asset value with the imminent return of good times and visitor numbers.

Cameron and Paul expect both experienced local operators and southern state migration to fuel demand for leisure assets in 2022.

Paul Grant, Mike Phipps Finance

“But I think we are coming into a period of consolidation on the coast and current operators might hold tight for a while until such time as they have good numbers behind them, particularly over what is going to be a good Christmas and New Year.

“After that, I think we might see some good activity in terms of sales and purchases.

“I'm seeing and hearing from buyers who may have been jogging on the spot for a while and they are now getting into a position where they are looking to buy now with the borders reopening,” Paul says.

“I can certainly see the plus $1,000,000-net profit, rock solid businesses commanding mid-six multipliers without a doubt.

That's not too far away and if the market goes berserk, who knows it could go even to the sevens.”

Sharon Flood, Flood Legal

Cameron says even with some units being lost to owner/ occupiers in permanent complexes, it has only been “a hurdle” for the industry and banks were still keen to look at transactions because of the reliability of management rights and the popularity of the Gold Coast.

Management rights specialist lawyer Sharon Flood from Flood Legal says. “In terms of the permanent side of the business I've never seen so many transactions.

“The strength and resilience in the Gold Coast management rights market in the last year has been unbelievable.

Full house at Columbia Holiday Apartments On November 1, Matt, and Lauren Palmer bravely “jumped into the fire” when they became the new resort managers of the beautiful and busy Gold Coast beachfront resort, Columbia Holiday Apartments.

look at management rights businesses after a friend suggested they investigate opportunities in the sector.

It is easy to see why this popular holiday resort is experiencing such a “full house” over the summer season, because it offers guests spacious two- and three-bedroom apartments with magnificent ocean views of Rainbow Bay, Snapper Rocks and pristine beaches, all the way up to Surfers Paradise.

“When we met Kerrie it all fell into place,” Matt said.

Matt told us: “We have 39 units in the letting pool and right now they are all full of the most wonderful guests, many of them have been returning to Columbia Apartments for a fantastic Gold Coast holiday

44

After missing out on a resort in early 2021 they contacted Kerrie Lush, Senior Management Rights Broker at RAAS Property Group who put forward the Columbia Holiday Apartments.

“The sales process happened quickly, and Kerrie held our hand throughout. I can’t speak highly enough of her helpful expertise, and I can only describe her follow up service as second to none.”

Columbia Holiday Apartments

experience for many years.”

Matt is a Kiwi and a plumber by trade. He met Queenslander Lauren on the Gold Coast and they moved to New Zealand where they both worked in

tourism (for Wyndham Hotels & Resorts) before moving back to Queensland just months ago.

They first considered a move back to the Gold Coast about 18 months ago and began to

PROPERTY

Now life has become very interesting for Matt and Lauren, even more so with such a bumper season ahead.

Matt laughed: “We don’t do things by halves, but we couldn’t be happier and are enjoying the challenge.”

ResortNews | January 2021

The experts in Management Rights Flood Legal prides themselves on being regarded as experts in management rights.

What you can expect from engaging Flood Legal: Trusted experience: Our legal practice director Sharon and experienced paralegal Brit have been providing advice for well over a decade to the management rights industry.

We achieve this through industry experience and always having our clients’ best interests at heart.

Real support:

Real fixed fees:

Our clients deal directly with us from start to finish. Our team makes sure their clients feel comfortable with each stage of the buying and selling process which can often be daunting and challenging. We also support you once you own your business and give advice on the day to day operation of your business.

There are no hidden surprises when it comes to fees. We understand the importance of knowing what your fees are going to be and work on genuine fixed fee quotes. You won’t get charged for emails or phone calls, extensions or those little added extras that a lot of other firms charge for.

Our client testimonials speak for themselves: “I have retained Flood legal in the purchase of 6 management rights complexes and the sale of two complexes. Sharon, Brit and the team have always been very knowledgeable, accessible (easy to chat to on the phone), professional and also easy to deal with. I would highly recommend Flood Legal.”

Geoffrey Long, Palladium Apartments

“Sharon Flood is amazing at what she does, her service and expertise in the industry are second to none. I am so thankful I used Sharon as my solicitor when purchasing my first Management Rights Business. Sharon was there for me day and night to answer and assist with all my questions and concerns. Couldn’t thank you and your team enough, I would definitely recommend Sharon when purchasing or selling Management Rights.”

Shara Janiak, San Mateo

“We have worked closely with Sharon & Brit at Flood Legal over the past few years across multiple sales. They were a pleasure to deal with, very professional, diligent, communication and updates were great and always had time if we ever had any questions. Would highly recommend Flood Legal to anyone looking to sell/buy Management Rights.”

“Professional and excellent services! We have Flood Legal to look after the settlements and the sales for our management rights business in the past 5 years. Sharon and Brit are always helpful, quick response to all our enquiries and well organised for every single matter. We recommend Flood Legal to all our business partners and friends.”

James & Tina, Precinct Apartments & Savvi Apartments

Jenna Trickett, Developer & Seller

“We have recently purchased a Management Rights business and we used Flood Legal for the legal process.

We could not have been happier and more satisfied with the quality of service, value for money, responsiveness to all issues and the professionalism of staff at Flood Legal.

Sharon and Brit are a great team and they performed all processes with efficiency and empathy towards us as anxious purchasers. We wholeheartedly and enthusiastically recommend Flood Legal for all Management Rights contracts and, for that matter, any legal procedures.”

Gary Fox, Costa Dora “I have engaged Flood Legal on multiple management letting rights matters including purchase, extensions, exercising options.

I have always found whomever I am dealing with in the office to be prompt, professional, and very helpful.

“We cannot thank Sharon enough for going above and beyond. Sharon’s attention to detail, frankness, coupled with her in-depth knowledge of the management rights industry we have found to be second to none.”

“5 Star service all the way everyday. No question too hard, or too inconsequential. Great team where each member is a superstar at their profession!”

I never feel rushed when dealing with Sharon and her team and feel they go over and above in their efforts to inform and support me in all my dealings. Highly recommend.”

Mike Bell & Sue Newman, Magnolia Apartments

Pam Gilbert, Cote D’Azur & Amarna Luxury Beach Resort

Al Hudson, Fairways Golf & Beach Retreat & Koongamiah

Buying and Selling

Agreements or Variations

General Advice

All at Fixed Fees

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

www.floodlegal.com.au

© City of Gold Coast on Unsplash.com

Understandably, due to the economic effects of COVID there have been limited holiday complexes coming onto the market but what that's meant is there has been pressure on the permanent complexes to sell.

“People who may not have been ready to sell have realised that this is a good time and you've got buyers galore, a lot of them coming from Victoria and NSW. Of course, there's an element of rising real estate from the seller’s perspective and in terms of the buyers they are acknowledging how safe management rights businesses are compared to other businesses available for purchase.

“Just like the property market

we have seen more Victorian and NSW buyers flocking to Queensland. It's made those transactions more complicated because we've had to deal with things like our clients not being able to cross the border for inspections or body corporate interviews or them having to go into quarantine before they could settle. We had to think outside the box to get those transactions settled for the benefit of both the seller and buyer.”

Sharon says it is imperative for anyone entering management rights to use specialists in the industry. With a background in real estate, she graduated in 2006 with first class honours of a post graduate law degree from Bond University and since then has

specialised exclusively in property law and management rights.

“Using an industry expert is crucial now more than ever,” Sharon says.

Having her own business now for over six years she approaches servicing her management rights clients differently.

“Management rights is a very specialised industry and it’s important that your lawyer not only is there to protect your interests when buying or selling but explains the whole process along the way. Especially for new entrants we are there to hold our client’s hand through the entire process and give them those extra little bits of information that they need.

“I have a lot of return clients and many new entrants into the industry as well, and our job is to make sure regardless of their experience that they are comfortable with their transaction. Management rights involves complicated transactions, and we aim to make the process as easy and smooth as possible.”

She says COVID demonstrated that MR businesses are extremely resilient and reliable, no matter what.

“If you do a good job and meet the expectations of the body corporate, management rights is a great business which offers owners flexibility and certainty in a business,” she says.

Local Focus with a National Coverage

46

PROPERTY

ResortNews | January 2022

MR

Sales

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short-term properties have struggled big time,” Paul says.

“The multiples are still holding, but definitely with short term rentals, if you wanted to sell you would be losing a fair bit of your capital on your original purchase price.

“Instead, we're hoping that with the borders opening up things will return to normal.

Paul Gaffney, The MBA Partnership

auditing needs to ensure the business remains on track.

© Photo by Vanja Matijevic on Unsplash.com

Michael Beddoes, Partner at The MBA Partnership, believes a specialist analysis is critical to the buyer’s success at the time of sale. Management rights specialist and fellow Chartered Accountant, Paul Gaffney explains: “We go through the books, the trust accounts, the general accounts and find out all the pros and cons of operating that business based on what we see in the records and interviewing the vendor.

He says: “We've done 5000 to 6000 management rights deals and there have probably

“We have a big stable of clients, we know the industry backwards, and we give advice on structuring each business on a case-by-case basis.”

only been two where we haven't found something for the buyer to negotiate over.

“If I’m paying more than a million dollars for a business, I want to know exactly what that business is making. It's a specialist industry and you need a specialist accountant, a specialist lawyer and a specialist broker or financier.

“We like to do the verification of the profit on the business and then help the buyer through to settlement and look after their ongoing tax and

Paul says short-term letting had “copped a caning” on the Gold Coast during COVID, because the Gold Coast was primarily a “fly to market” rather than a “drive to market” like the Sunshine Coast which had done comparably well during COVID. “There has been a bit of weekend and three-day letting on the Gold Coast but without government support from JobKeeper, those

“There are good bookings from down south and the tariffs are pretty good, so we expect a solid recovery over the next 18 months.

“Management rights is a pretty foolproof industry. It survived the Global Financial Crisis and though it took a while to build back up, the multipliers have grown strongly - anything over $500,000 net profit you’re getting a six-times multiplier.”

Paul says anyone entering the management rights business on the Gold Coast most likely needed to have 40 to 45 percent of the purchase price to cover all the incidentals involved, including legal fees.

“You might still be able to get

© Photo by City of Gold Coast on Unsplash.com

48

PROPERTY

ResortNews | January 2022

© Photo by City of Gold Coast on Unsplash.com

 Structuring  Income Verification  Accounting/Taxation  Superannuation  Audit a 70/30 Loan to Value Ratio, though 65/35 are becoming common,” he says. “We used to settle transactions in three months, now it's up to 120 days with the biggest hold-up being finance.”

RAAS Property Group agent Kerrie Lush is buoyant about the market, suggesting the Gold Coast’s MR businesses over the next few years will follow the booming residential real estate market.

“I think the Gold Coast market is going to be better than ever,” says Kerrie, who bought her first management rights business in 2003. “Some holiday properties on the coast have still done well despite COVID. Kerrie adds: “I just sold a couple of holiday properties at Rainbow Bay, and I know others at Broadbeach that are doing really well because of good management.

“What I’m finding though, is that some people in management rights think because the real estate prices have gone up, they are going to cash in ResortNews | January 2022

Kerrie Lush

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

expecting the same rise in their business component.

But that’s not the case… yet.

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

“I think management rights businesses will do very well on the coast over the next few years, though.

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

“People are going to be nervous for a long time about travelling overseas in case they get stuck there. Instead, they can bring the whole family to the Gold Coast for a fraction of what it costs to travel overseas and have a really wonderful experience.”

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

PROPERTY

49

Gold Coast market update The Gold Coast management rights market experienced a strong uptrend in buyer activity after a low point in 2013 following the global financial crisis to reach 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 stock levels remained tight and the number of buyers increased.

At this time several large apartment developments were being completed with the developers retaining the management rights to the buildings. The market subsequently saw a number of these management rights businesses with net operating profits over $1 million offered to the market with multipliers reaching over 6 times after a sustained period of lower multipliers.

Entering 2020 vendor price expectations remained high and negotiations were weighted towards the seller.

This trend was temporarily suspended between March and June 2020 due to the sudden coronavirus outbreak however transactions over late 2020 and 2021 indicate the management rights market has been rather resilient with minimal effect on permanent business multipliers.

However, short term business multipliers have been affected

by COVID-19 to varying degrees depending on the source of guests (corporate, international, or domestic leisure) and the location of the business.

Features of the market over 2021, are as follows…

Management rights businesses without a real estate component and with no requirement for the manager to reside on-site have continued to gain increasing interest from purchasers and this has resulted in a higher

50

difference in achievable multipliers below this level.

Brett McCraken, Australian Valuers

number of these transactions. The businesses are usually purchased by experienced operators who look to add a further management rights 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 with a higher 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 over 90 percent of units in the letting pool may gradually lose several of the units to outside agents or owner occupiers and the value of the business may decline.

Buyers are generally prepared to pay a premium for businesses netting above $300,000 and there is a significant

Net Income Brackets

It appears that the management rights businesses with a caretaking only component (no letting) have gained increasing interest from purchasers 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.

Locations such as Byron Bay and the Sunshine Coast are leading the recovery from COVID-19 in the short-term accommodation sector. Regions such as the Gold Coast, Far North and Central Queensland are experiencing a slower recovery with ongoing state ordered lockdowns and border closures having a significantly higher impact on trade.

Those short-term businesses that have been sold on the Gold Coast during 2021 have generally transacted at lower multipliers than during the preCOVID market environment.

Those locations between Burleigh Heads and Coolangatta have feared better than the tourism locations of Broadbeach and Surfers Paradise. In most cases the losses generated by the business sale have been somewhat compensated by an improvement in the residential market which has flowed through to higher managers unit prices.

$0 to $200k

$200 to $400k

The management rights market is showing resilience within the permanent letting sector; however the majority of shortterm accommodation businesses continue to experience varying trade on a month to month basis as outbreaks of new COVID variants effect business conditions. Those managers who have a high number of leaseback agreements or performance rental guarantees in place with unit owners, have had to renegotiate the fixed returns to owners or incur significant losses due to the downturn.

This has mainly been confined to those businesses reliant on the corporate and international visitor accommodation sectors which have suffered the greatest downturn.

For the remainder of 2021 and early 2022, a sustained recovery in the accommodation market is dependent on the opening of interstate and international borders. Based on current vaccination take up rates and indications from state leaders, management rights operators are likely to experience an improvement in profitability from increased occupancy and room rates. An increase in cashed up buyers from the southern states over coming months is also likely as they seek an improvement in lifestyle while generating an attractive return from a management right business. $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

ResortNews | January 2022

ResortBrokers

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From ski resort to Kirra Beach resort Last year, when Steve and Jodie Newman returned to the Gold Coast after living in New Zealand for several years, they immediately began to look at management right businesses, and last month they settled on the high net holiday management rights business, Kirra Beach Apartments in Coolangatta.

Originally from the UK, Steve moved to the Gold Coast in 1995 with his Australian wife Jodie, whose family were long-time management rights operators.

Jodie’s mum and dad, Graham and Robyn have owned several big management rights on the coast for over 25 years.

Steve told us: “We lived in New Zealand for several years where we owned freehold backpacker

complex would not overwhelm us, the 50:50 mix of permanent and holiday units was a perfect fit and the manager’s unit suited our lifestyle.”

Steve and Jodie say they contacted ResortBrokers because they consider them to be experts in the field of management rights and their agent Todd has been a constant support to them throughout the purchasing process, which only took four months. and accommodation businesses in ski resort towns on both the South and North Island.

However, when the pandemic hit, our family ties pulled us back to Australia and as soon as we could we returned to the Gold Coast. We needed to buy a business and because of our family’s history in the sector, it was natural for us to consider management rights a great opportunity.”

Steve and Jodie were already

on the ResortBrokers mailing list and contacted agent Todd Warner who showed them a few small permanent and holiday resorts before Kirra Beach Apartments came onto the market.

On what attracted them to this resort Steve said: “Kirra Beach Apartments is in the perfect beachside location, and the timing was right. As we are new to management rights, we felt that the size of the

“I think we have purchased management rights at a very good time, and I predict a bright future ahead for the Gold Coast,” Steve said.

“By Easter next year I expect that travel will be back to normal, and there will be a pent-up demand for Gold Coast holidays. I am also excited for the New Zealand borders to open, so we can welcome all those Kiwi visitors who will be very keen to soak up the Queensland sun.”

Our Gold Coast team

gets results, pure and simple Meet the ResortBrokers Gold Coast team Paul Mueller

0439 255 507

With 50 deals sold and settled to the value of more than $70 million since joining ResortBrokers in 2016, Paul Mueller has established himself as one of Australia’s most experienced and successful management rights brokers in the business. Paul joined ResortBrokers with a successful background in IT, financial computer programming and business turnaround behind him. With terrific analytical skills and a strong head for business, he was ideally placed to move into management rights sales.

Todd Warner

0438 170 763

Since joining ResortBrokers in 2017, Todd has delivered some outstanding results and has successfully sold and settled 58 businesses totalling more $78 million in sales. His achievements so far have seen him awarded the ResortBrokers’ Rising Star Award in FY18/19 and the number one Volume Broker of the Year in FY19/20 and FY20/21. Todd joined ResortBrokers as an experienced sales professional with a proven track record of sales leadership within the liquor and construction industries over more than two decades.

Steve Campbell

0407 220 668

This is Steve’s “second career” as a specialist broker with ResortBrokers which all began in 2011 and, in between his two stints, he successfully ran the management rights and renovated a landmark Brisbane building which was in desperate need of TLC and a new direction. He’s a broker who understands better than most what it takes to run a management rights business and also what it takes to buy and sell one, which means he is perfectly equipped to help vendors and purchasers.

RESORTBROKERS.COM.AU

52

PROPERTY

|

1300 665 966

ResortNews | January 2022

Demand for MR on Gold Coast continues to rise

By ResortBrokers, Gold Coast Team

some of the lowest vacancy rates and highest rents ever.

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 on the Gold Coast is at extremely high levels, thanks mainly to a combination of tightening rental vacancy rates, low interest rates for borrowers and people looking for a sea change in the wake of lockdowns.

Renting on the Gold Coast is now more expensive than choosing Sydney, according to SQM Research. Statistics show rental costs for all dwellings on the Gold Coast rose by 20.2 per cent, while unit costs are 17 percent higher.

Since the start of 2021, the ResortBrokers Gold Coast team of Paul Mueller, Todd Warner and Steve Campbell has settled on 22 deals with a total value of $20 million and have another 23 under contract for a further $35 million.

The reason for this?

Gold Coast’s rental and residential market is experiencing one of the strongest periods in many years.

Thanks mainly to interstate migration, we are witnessing ResortNews | January 2022

The median average rental price for a Gold Coast unit is $530 per week, while in Sydney it's $473 and the report says rental prices will continue to increase as a "very strong" interstate migration ramps up into Queensland.

Vacancy rates on the Gold Coast have lifted to around 1.5 percent after being as low as 0.9 per cent during the winter months and SQM Research says the record high rental yields would continue to attract investors to the coast.

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, especially in the permanent and mixed complexes, and naturally this puts upward pressure on prices.

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, especially from the southern states. Our enquiry levels are up by 33 percent.

There are also strong signs that the holiday-only and short-term market are set for a rebound after a particularly rough 18 months. Todd Warner recently sold and settled on Kirra Beach Apartments which is the first high netting holiday property to sell post-COVID. The short-term businesses have obviously been hit hard by the border closures and lockdowns and now it seems there is light at the end of the tunnel.

A large section of that increased level of enquiry has come from the southern states where the lockdowns were long and hard.

We were fortunate to escape those lengthy lockdowns and this has driven some of the demand, along with the fact that people have probably embraced the ‘work from home’ revolution and are now looking to be their own boss in a management rights business,

PROPERTY

and can you blame them?

What this all means is that the multipliers for permanent and business only complexes have risen over the past 12 to 18 months while the multipliers for the short term and holiday businesses have actually held firm despite the difficult trading conditions. The fact that the short-term market has held up despite the pandemic provides plenty of optimism as we roll through 2022.

One final point to consider RBA Governor Philip Lowe has dismissed market pricing for a rate increase this year (2022) 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 in 2022; 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 this year?

53

Landmark Resort & Spa

Landmark defies

lockdowns

to hit the heights

By Grantlee Kieza, Industry Reporter

Brett Thompson first made his mark as a rugby league player in Brisbane.

Now he’s kicking goals at the Landmark Resort in Mooloolaba.

The Landmark Resort is a very big holiday property?

We have 132 residential apartments, and we also have the caretaking rights to the commercial premises. There are 12 commercial units, most are owned by the developer

At Cassels Strata, we make it our business to ensure your body corporate service needs are met to the highest standard.

Brisbane P (07) 3726 0050 CREATING A COMMUNITY

54

Painting

Sunshine Coast P (07) 5406 0248

www.casselsstrata.com.au

FǢƼǿƲţǪ

Signage & ×ŀȝɯƲţƐƲƄ

Graeme Juniper. They include the Waterfall Day Spa, G.J. Gardner, and the restaurants: The Beach Bar and Grill, Dirty Moes, Quarterdeck and the Fish & Chippery, there is also a 7-Eleven.

You were based in North Queensland for many years.

What attracted you to Landmark Resort?

My wife Maree and I were in Rockhampton and Cairns, and then we operated Mariners North in Townsville for ten years.

We were in Townsville whilst our children completed high school at Townsville Grammar.

Turf & Lawn

ǿƐƧţƐƲƄ ǢƼơūŜǷǪ

«ŜŀƲчǷƼчɯƲţ out more 1800 620 911 ǟǢƼƄǢŀưưūţϯŜƼưϯŀǿ

PROFILES

ResortNews | January 2022

But, after 20 years in the north, we wanted to return to the Southeast Coast be closer to my family as I have an elderly mother living in Brisbane.

I responded to an advertisement for a manager to run the Landmark Resort property. In this role I’ve been allowed to run the business as if it was my own, with no administrative interference. I work for a partnership with Dreamtime performing the marketing.

This arrangement has worked out really well for both myself and the partners, considering I hadn’t worked for anybody else for over 20 years, I am happily embracing the change.

What are the best features of the property?

they prompt every guest to leave a review. Based on 2460 reviews on Booking.com, our location is rated 9.7, staff at 9.1, and then cleanliness is 8.6, facilities 8.6, comfort 8.6, and value for money at 8.4. As you can see, we have very good solid ratings.

Our greatest asset is the location, but we also prioritise customer service. We sit directly opposite the main patrolled beach, so we have location, location, location.

You look outside our front door and it's only 200 metres to the beach. But we also pride ourselves on making our guests feel very welcome.

What’s the key to keeping guests happy?

Accommodation is driven by ratings, and we've won a TripAdvisor award for the last three years, this positions us in the top 10 percent of hotels.

Booking.com is our highest volume third party agent and

We use the old KISS maxim “Keep It Simple Stupid”. When people want to book a motel room or a room at a resort, they want to be made to feel welcome and they want to have clean sheets and a clean apartment.

This confirms that location is our greatest asset, and our staff are not far behind.

Dreamtime Resorts are professionals with many years of extensive experience in marketing solutions within the travel industry. Our operations team amounts to a wealth of expertise crossing over all generations. Specialising in website strategies, sales, digital development, social media marketing, revenue management, online distribution and sales and marketing development for you to maximise results. Our portfolio consists of premier resorts and self-contained apartment properties along Queensland’s East Coast from Cairns to the Gold Coast.

Call: 07 5565 0700 | Email: info@dreamtimeresorts.com.au Website: www.dreamtimeresorts.com.au

ResortNews | January 2022

PROFILES

They’re the basic principles. We try not to complicate things and do the basics well.

Landmark Resort may not be brand new; it is 22 years old, but we make sure that it’s the first impressions that count. When guests enter our property, they feel very welcomed because our staff are so friendly and helpful.

When guests get a feel-good check-in experience, they immediately feel positive about the resort, and they will have a good stay. If there are any complaints, we act quickly and ask the guest what would resolve the issue for them. We might offer them a voucher to one of the restaurants or a bottle of wine.

Landmark Resort & Spa

Reflections Coolangatta Beach

Turtle Beach Resort

The Wave Resort

55

We also supply complimentary bubbly and chocolates to anyone who is celebrating an event such as an engagement or birthday.

was created with our pool. The cascading waterfalls of the pool is the backdrop for the day spa, and it’s a very relaxing environment.

lost 80 percent of our business for three or four months. But JobKeeper allowed us to bring our staff back for the rebound.

Does the Waterfall Day Spa attract guests?

Are you coming out of the pandemic well?

How did COVID affect guest numbers?

Yes. I would say it's an added bonus. I introduced it into our branding when I arrived in my role. When Graeme Juniper first built the complex, it was fully integrated into resort.

From July last year we had probably one of our best financial years ever and our 25 staff are all back. The majority who returned are cleaning staff, but also maintenance and some front office staff. At one stage, because of COVID lockdowns we were down to three staff, the front office manager, the maintenance manager, and me.

During lockdown we probably

Last year was an extraordinary year for us. We operated at 80 percent, so we are a high occupancy/high volume property and that obviously comes down to our product.

We wouldn't be able to retain that sort of occupancy if it wasn't for customer service.

I always ask my staff, “what's the difference between us and other properties”?

The Waterfall Day Spa is located on the first level outside of Landmark Resort’s foyer and so it is an integral part of the property.

There is a beautiful waterfall feature behind the spa that

We are all commission salespeople. We only get paid a commission in management rights. We get 12 percent for every dollar and that's $12 every $100.

So, you have to be hungry. I have an important rule, it is that my staff acknowledge every single person who walks past the counter (even if that person walks past six or seven times in a row) we all make eye contact and communicate with them. I also make sure that the housekeeping and maintenance staff who engage with the guests always “say good morning” or “good afternoon, how are you going”?

• • • • •

56

PROFILES

ResortNews | January 2022

How much of your business is repeat business?

We have a very high repeat business, probably up to 30 percent. For our repeat guests we like to provide them with Landmark Resort slippers, and a little note that says, “thank you for coming back to Landmark Resort, we value your business”.

Actually, I just got a review from a repeat guest this morning. It said: “We visit Landmark yearly because of its location and

fantastic pool area. In the past we've had a few complaints but this year I could not fault them. It's great to see that past issues were addressed.

Friendly and efficient staff.

The apartment was also very clean... Well done, Landmark team see you next year.”

I was very happy to get this, and it reinforced to me that what we are doing, we are doing well.

With borders reopening the future looks very bright for the Landmark Resort.

15% discount for Resort News readers when booked direct

(07) 5444 5555 stay@landmarkresort.com.au 11 Mooloolaba Esplanade, Mooloolaba Qld 4557

www.landmarkresort.com.au

ResortNews | January 2022

PROFILES

57

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www.agredshaw.com.au

erika thomas & associates MANAGEMENT ACCOUNTANTS

management rights income verifica�on management rights trust account audi�ng prepara�on of bank review/re-finance figures

Verification Reports Structure & Taxation Advice Trust Account Auditing Risk & Superannuation Tax & Accounting

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

phone 07 5575 9649 | mobile 0411 841 868 erikathomas@bigpond.com

Paul Shannon

www.managementrightsauditor.com.au

Management Rights Specialist

07 5538 0999

info@crestaccountants.com.au

www.crestaccountants.com.au

- SUNSHINE COAST “YOUR GUIDING LIGHT ON MANAGEMENT RIGHTS”

Your Sunshine Coast

Management Rights Specialists FOR OVER 20 YEARS

Verification Reports - Due Diligences Tax Planning & Structures For Sale Figures - Auditing Tax & Accounting

Specialist Management Rights Accountants

Contact : PETER MEYERS

holmans.

Accountants to the accommodation industry.

155 Varsity Pde, Varsity Lakes, Qld 4227 t : (07) 5630 6559 m : 0402 943 549 e : peter@pmag.com.au

FIRST INTERVIEW FREE! Greg Kamp FCPA FTI

07 5443 7789

“Holbrook House” 48-50 Sugar Road Maroochydore

www.pmag.com.au

info@kampba.com.au

www.kampba.com.au

Call 07 5430 7600 Structuring  Income Verification  Audit Accounting/Taxation  SMSF  Estate Planning Email: jhanaghan@jonathangrant.com.au

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 | January 2022

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

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

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 | January August 2021 2022

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 | January 2022

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 | January August 2021 2022

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.

QBCC Lic No 1050861 NSW Lic No 179886C

- 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 | January 2022

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 | January August 2021 2022

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!

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www.accomnews.com.au/business-directory PREFERRED SUPPLIER DIRECTORY

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