Resort News, May 2022 by Multimedia AU/NZ

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Issue 309 | May 2022 | $13.75 inc. GST

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Proﬁle Peninsula Airlie Beach Person of Interest – Ben Orton: From pool builder to making a splash with prestige properties management rights • hotels • motels • resorts • holiday parks • time share • hosted SPECIALISTS IN ACCOMMODATION FURNITURE FF&E AND JOINERY Custom made furniture including packages

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Inside our May issue FRONT DESK Editor’s Note: What happens in Vegas? ............................05

INDUSTRY ARAMA Report .......................................................................... 06 State Report ............................................................................... 06 SCA Report ..................................................................................08 BCCM Report ............................................................................. 09 Person of Interest – Ben Orton: From pool builder to making a splash with prestige properties ....................... 10

MANAGEMENT Legal Ease..................................................................................... 12 By All Accounts .......................................................................... 14 Motel Market ............................................................................... 16 Building Relationships .............................................................17 Thinking MR................................................................................. 18 Software Solutions.................................................................... 18 Good Governance .....................................................................20 Revenue diversification: Holiday parks are perfectly located for exquisite events .................................................................. 21

TOURISM Tourism Report ...........................................................................22 Queensland Tourism Industry Council update .............23

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

EVENTS & APPOINTMENTS Events.............................................................................................24 Appointments .............................................................................26

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

CONTRIBUTORS Trevor Rawnsley, Col Myers, Kristi Kinast, BCCM Commissioner, Amy McKee, Jonathan Hanaghan, Andrew Morgan, Kelley Rigby, Mike Phipps, Sylvia Johnston, Lynda Kypriadakis and Daniel Gschwind.

DEVELOPMENTS Development News .................................................................. 27

PROPERTY

The Chaussy due to settle .....................................................28 Evoke & Motif sale goes unconditional ............................28 AccomProperties Sales Report ...........................................28 Airlie Beach buying a golden investment ........................32

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

PROFILE Peninsula at Airlie Beach: Peninsula wins rave reviews for MR first timers ...........38

PREFERRED SUPPLIERS Preferred Supplied Directory ................................................42 FRONT DESK

32 ResortNews | May 2022

Welcome to the May edition of Resort News, it’s a very special one. This month we celebrate 30 years of ARAMA, and the massive contribution it’s made to the MLR industry. In the pull-out supplement read about the history of ARAMA and recognise its many achievements. Take a walk down memory lane and remember those industry pioneers who, as Trevor Rawnsley says, “dug the well” to provide the rewards the sector reaps today. We not only fondly remember those characters who paved the way, but also shine a light on those who continue to illuminate a path to the future. ARAMA often leads the way and shines bright in times of trouble; this was especially highlighted throughout the COVID crisis.

owner Ben Orton who is certainly making an indelible mark. We also talk to Paul and Francine Tuddenham about their first foray into management rights at their resort, Peninsula at Airlie Beach.

Mandy Clarke, Editor editor@accomnews.com.au

Every month Resort News shines a light on ARAMA members, onsite managers and MLR professionals, we tell the story of how each individual creates their own unique path within the sector. This month we bring you an interview with management rights business

Meanwhile, back at ‘Clarke HQ’ I am working even more remotely than usual as I write this note from Las Vegas! I am having a short, unexpected international trip because I was called upon to attend the Expedia conference EXPLORE 2022. It all kicks off tomorrow and I will be reporting on my adventures on AccomNews. This time what happens in Vegas won’t stay in Vegas (well mostly). However, just getting to Vegas in a pandemic from Brisbane was an adventure, it involved navigating plenty of paperwork, plus organising (and sweating

NUMBER

over) 24-hour PCR tests, not to mention the traumatic (hours and hours) queuing at Sydney Airport, and there was also a lost bag. This is a story for another time but for now I feel relaxed, also revelling in some fun time in Vegas and it does feel great to be an international traveller again. However, the dark cloud of the return flight looms.

EDITOR'S NOTE

What happens in Vegas?

So here is my advice on international travel for now, if you want a relaxed travel experience stick to a stress-free domestic flight, continue to discover your own backyard and delight in all the beautiful MR resorts that we are so lucky to have in Australia. Enjoy this issue, hopefully I'll get back in time for our June deadline! Cheers, Mandy.

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Project Management Inhouse quality control Freight and logistics management Full installation Commercial warranties Servicing Australia and Internationally

www.hotelinteriors.com.au Dennis Clark MDIA

ResortNews | May 2022

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ARAMA REPORT

Resident managers are the cool heads in a crisis The recent unprecedented flooding across Queensland and New South Wales devastated areas of both states.

The massive downpours created trauma and turmoil, but at least those properties with a resident manager were in capable hands. Sadly, resident managers have had to become really good at disaster management in recent years. No one knows a building or its occupants better than a resident manager, and they are always on the spot to deal with a crisis immediately.

STATE REPORT

In the last few years, our ARAMA members have had to manage just about every kind of natural and economic disaster. Their effectiveness is one of the reasons that Management and Letting Rights businesses

Because of the floods, the luxurious Riverside Hotel in South Brisbane was closed for 10 days and had no power.

Our resident managers are at the pointy end of natural disasters.

Guy Elliott, ARAMA’s national president, manages a large property of about 100 twostorey townhouses in a gated community on the canals at Mermaid Waters. Most of the living quarters were upstairs but at least one of the residents was sleeping downstairs and woke up with water flapping around his bed. It was like somebody put a hose in a bathtub and the water just kept rising.

Many of them at high rise complexes during the floods had to drag cars out of flooded car parks, knock on doors (particularly for some of the elderly residents) and help organise groceries and food drops. The work our managers do during disasters highlights their crucial role in a building. They are often unsung heroes

Before long Guy was organising a massive clean-up and being on the spot, he could help people as they needed it, check on any emergency situations, and then organise the recovery straight away. We have an internal website called “marketplace” for anyone who needs help, and we sent out messages to all our members.

Staff were fishing cars out of the car park after the Brisbane River did its dirty work. But we recently turned up for an ARAMA function there and it was as though nothing had happened. Less than a month after it closed due to floods, Riverside was back to full occupancy.

Trevor Rawnsley, CEO, ARAMA

continue to rise in value no matter how much trouble envelops the tourism and accommodation industries. In recent years we’ve had cyclones in North Queensland, we’ve had drought, and then bushfires on the south coast of New South Wales, and we’ve had devastating floods. We’ve also had the ongoing COVID-19 pandemic.

who can respond quickly and rally volunteers together.

Update on caretaking agreements in NSW Community Title What is Community Title?

the parking area. These areas are known as “community property” (same as “common property” in strata subdivisions).

I recently wrote an article that explained the difference between community title and strata title in NSW. To recap, a good example of a community title is a gated community estate where there might 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, just like a traditional 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

Col Myers, Small Myers Hughes

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

A community title scheme is created by the registration of a community, neighbourhood or precinct plan and (much like a strata scheme) caretakers are often appointed by the community association to maintain the community property, including all recreational facilities, gardens and parklands.

strata complexes to no more than 10 years (including options), similar changes were not made to the Community Titles legislation. Accordingly, agreements between community associations and caretakers could still be for terms of 25 years, and often were.

Term of caretaking agreements in Community Title

However, this has changed in late 2021 when the Community Land Management Act 2021 (the “New Act”) commenced on December 1, 2021. The New Act is designed to bring the legislation for community title into alignment with, and ensure consistency with, the Strata Schemes Management Act 2015.

When the Strata Schemes Management Act was amended in 2003 to limit the term of caretaking agreements in

Under the New Act, caretakers became known as “Facilities Managers” and are defined in the New Act as any person

INDUSTRY

ResortNews | May 2022

I got the idea for this call-out to ARAMA members during the 2011 floods. I was helping with the recovery at a townhouse complex at Ipswich that was completely inundated. The living areas were downstairs and there were kitchens, dining areas all covered in mud. At the same time there was another scheme at Jindalee (60 odd townhouses) and we did a call out to tell our members ‘look if you can, grab your ute, grab your wheelbarrow, grab your hoes and shovels and brooms and get out there.’ I was out at Ipswich all day shovelling mud but late in the afternoon I called into the scheme at Jindalee where about a dozen ARAMA members had been working all day. This older guy starts yelling at me while shuffling up the road. He said, ‘Are you from ARAMA someone told me you organised the workers here.’ He gave me a huge cuddle. He was the chairman of the body corporate, and he couldn’t thank us enough for turning up at the point when he didn’t know how this huge mess was going to be cleaned up. I was expecting a lot of calls for help with the recent floods but this time our resident

who assists with one or more of the following functions (except as a volunteer, casual or committee member): •

Managing association property.

•

Controlling use of association property by persons other than owners/occupiers.

•

Maintaining and repairing association property.

These duties capture all of the traditional roles of an on-site caretaker. Most importantly, the New Act prescribed that the maximum term of these agreements moving forward, was now 10 years. It also prescribed that: 1.

The proposed facilities manager must disclose interests, including connection with the original owner and any pecuniary interest, in the association.

ResortNews | May 2022

managers such as Guy Elliott just organised people themselves and got it all sorted. Resident managers are indeed cool heads in a crisis. During the most destructive phase of Cyclone Debbie in 2017, Jo Matthews at the Toscana Village Resort at Airlie Beach, showed once again the vital role of a resident manager. Most people had evacuated and gone home before the cyclone arrived but there were still people ready to ride it out – residents who lived there looking over the Whitsundays, and a couple of tourists who couldn’t get a flight. Jo knew exactly where they all were. She put the garden furniture in the swimming pool so it didn’t blow away, and baked muffins, delivering them to people in their apartments on the afternoon the cyclone was coming. She warned everyone what would happen when the cyclone hit, made sure they got everything in off the balconies and reassured the residents and guests that, while they would lose power, they just had to hang in there and sit tight no matter how hard the wind

NCAT is empowered to make variations to, or terminate facility management agreements in certain circumstances; and

If authorised at a general meeting, an existing facility management agreement can be transferred to another entity.

roared. She told them it would be traumatic for a few hours but the storm would eventually pass. Jo gave them torches and matches and supplies to keep them comfortable. Cyclone Debbie roared into Airlie Beach, the power went out, and the noise of the wind was deafening. It stopped about 9 o’clock. Most people thought it was over, but Jo warned them that it was only the eye of the storm. The tail came back and was even more intense, slamming into the Toscana like a freight train. Jo lost a lot of foliage and there was a lot of broken glass but largely thanks to her efforts as the resident manager, there were no injuries to people staying there. Then, during the bushfires around the NSW south coast areas such as Merimbula and Ulladulla, roads were cut, services were cut, and power was out. Resident managers were able to accommodate people when needed including firefighters and emergency rescue personnel, because the managers were on-site and knew immediately

facilities manager agreement for the purposes of the New Act and the agreement is deemed to expire 10 years after the commencement of the New Act, i.e., they will terminate by December 1, 2031.

What about caretaking agreements already existing at the commencement of the New Act?

what was available and how to best help residents and the wider communities. Then, almost immediately after the bushfires, COVID swept through the country, and two years later it continues to cause harm. And once again, resident managers are essential in protecting each building and their guests by implementing COVID safe plans. In some markets such as the Sunshine Coast, COVID has been so well managed that it’s been record business since about July 2020, and that’s extraordinary since it’s come during the worst set of conditions possible for the Australian tourism and accommodation industry. For a few short months early in 2020 the government actually made it illegal to have a holiday in Queensland. But two years later, sales brokers are enjoying record demand in an industry that has withstood all these natural and economic disasters. Much of the credit for that fightback must go to ARAMA and our resident managers.

of their agreement term. If the caretaker is entitled to “exclusive possession of a lot or association property in the scheme”, any caretaking agreement in force immediately before the commencement of the New Act is not taken to be a “Facilities Management Agreement” for the purposes of the New Act and therefor the 10-year term limitation does not apply to that agreement.

Unfortunately, the New Act did not grandfather all existing caretaking agreements so they could continue to operate in accordance with the old legislation.

Is there a loophole in the new legislation?

In other words, the owner of the caretaking business must be the same entity as the owner of the lot where the business operates, or there must have been a lease in place prior to December 1, 2021, that grants the caretaker exclusive possession of the lot or community property where the business operates.

In fact, it provided that a caretaking agreement in force immediately before the commencement of the new legislation is taken to be a

There is one exception contained in the transitional sections of the New Act that may exempt some existing managers from this harsh new write down

If you are a caretaker or service provider for a community title it is strongly recommended, you seek advice on this issue relevant to your circumstances.

INDUSTRY

SCA REPORT

The challenges of incorporating post-COVID changes I am pleased to inform readers of Resort News that the COVID-19 Legislation expired (without further extension) on April 30. This means a return to business as usual for the vast majority of Queensland industries, including strata. Combined with the recent re-opening of the West Australian border, it appears the federation has been restored with no turning back. But as much as ‘business as usual’ fills me with a sense of comfort and relief, I can’t help but reflect on all the positive changes we have seen evolve so rapidly, as a result of the pandemic. COVID-19 forced us all into very quick adaptations on how we do business, and it was incredible to witness just how agile and forward-thinking many industries and businesses were in developing new policies and processes to ensure business could continue as efficiently and effectively as possible. As we see the restrictions of the last two years start to fall away, our next challenge is to incorporate these positive changes in a post-pandemic society. Let’s not lose these amazing adaptations as we settle back into the ‘normal’ or is it the ‘new-normal’? way of doing things.

and harassment, between lot owners, of committee members, and of body corporate service contractors such as caretakers and strata managers.

Kristi Kinast, President, SCA (QLD)

active, enthused, and engaged committee leads to better outcomes in strata properties. Remote attendance at body corporate meetings and an enhanced utilisation of digital technology has substantially improved engagement from lot owners who may have previously been disinterested or apathetic in relation to body corporate matters. We have seen a significant increase in the number of lot owners attending their Annual General Meeting, as well as expressing interest in common property improvements or maintenance. On top of that, as people have spent more time in and around their homes, we’ve also seen the number of applications for renovations and for pets sky-rocket. Unfortunately, with this increased engagement and interaction from lot owners, there has also been an increase in reports of bullying

With any major series of changes, such as that which we all experienced over the course of the pandemic, comes a level of uncertainty, and a heightened sense of anxiety. We, as individuals and as a society, can often lose a sense of control in many of the normal day-to-day aspects of life which we so easily took for granted… “What do you mean I can only leave my home for exercise?” “Isolate? In my home? By myself? For 7 days?!” “What do I need to do to find some toilet paper in this town?!” And while it’s normal to search for aspects of life that we feel we can exert some influence or control, being a bully is simply, never acceptable. The strata sector has shown incredible resilience throughout the pandemic, and I commend you for it. And while resilience is a key part of the solution, we need to do more to limit the prevalence and impact of bullying and harassment within strata. SCA (Qld) is committed to supporting our members in this respect and I encourage you as readers to join

Working from home arrangements are perhaps one of the most prevalent of these adaptations, with thousands of businesses across hundreds of industries incorporating these arrangements as part of an ongoing commitment to a permanent change in the way we do business.

Similarly, some of the positive adaptations we have seen in the strata sector have resulted in a huge uptake in the positive engagement by unit owners in their home or investment property. More engaged lot owners lead to more enthusiastic committees, and I think all strata managers will agree that an INDUSTRY

the good fight! As we advocate for change with government and other strata industry partners, I encourage you to stand against any form of bullying and harassment within your own strata scheme: don’t be afraid to remove rude participants from meetings, put protocols in place to limit the quantum or length of over-the-top correspondences, and stand together with those who may be the recipient of any such harassing behaviours. We can learn a lot from the retail sector who have led a strong campaign against bullying and unacceptable behaviour. By speaking often and publicly about it, we can learn to stand together in neither tolerating nor accepting this behaviour. On the back of all the changes (good and bad) that COVID-19, its restrictions, and its adaptations have brought, SCA (Qld) continues to push relentlessly for ongoing and positive reforms in this space. Our commitment is to ensure that any reforms to laws governing bodies corporate have increasing engagement by owners and occupiers as well as community autonomy at their heart. Community autonomy is not just a catch phrase, it makes strata living infinitely more attractive and will help expand the sector significantly. A housing crisis is beginning to form in many parts of our state. To help solve this problem, strata needs to be sufficiently attractive so that people can work, live and raise a family in an apartment. Promoting modernisation and flexibility in strata will continue to be an SCA (Qld) priority. As we have already seen, such adaptations result in greater community engagement, higher functioning committees, and better results for strata communities. As we move together towards whatever-version-of- ‘normal’ this is, I encourage you to embrace this new season: certainty is good, but positive change is even better. ResortNews | May 2022

Common property maintenance is a regular source of contention in bodies corporate. Understandably, it can be frustrating for residents when they see that the common property is not being maintained in good condition. However, often this frustration is mistakenly directed towards the caretaker for the scheme. When speaking to clients, we caution the assumption that all common property maintenance is shouldered by the caretaker. In this article, we will clarify the role of the caretaker and the body corporate concerning maintenance responsibilities and highlight possible ways to help minimise any conflict surrounding this issue.

Who is responsible for maintaining the common property? The regulations state that the body corporate is responsible for maintaining the common property in good condition. It is important to understand that this reference to the ‘body corporate’ does not mean the caretaker. Notably, the members of the body corporate are all lot owners in the scheme - the caretaker is not the body corporate. The misconception that the caretaker is responsible for all common property maintenance can perhaps be attributed to the fact that in the capacity of a service contractor, the caretaker is engaged to supply services (not including administrative services) to the body corporate for the benefit of the common property. Some examples of these services may include maintaining areas of common property such as gardens, lawns, pools, tennis courts or barbeque areas. It is vital that residents and committees have a clear understanding of the caretaker’s responsibilities. Contrary to common opinion, there is no ResortNews | May 2022

of their maintenance responsibilities, while the committee (or residents) may view the terms differently.

list of caretaker duties in the body corporate legislation. The scope of the caretaker’s duties regarding maintenance is defined by the terms in their contract. The caretaker is not obliged to perform maintenance tasks beyond the terms of their engagement with the body corporate. We regularly encourage residents who contact us with complaints about the caretaker to first access the contract and confirm the responsibilities of the caretaker before acting.

The BCCM Office has no jurisdiction to determine contractual disputes. Disagreements about the terms of an engagement may be determined by the Queensland Civil and Administrative Tribunal or by a specialist adjudicator appointed by the Commissioner. Legal advice may also be advisable in contractual matters to have a full understanding of the options available. In the first instance, it is always preferable for the caretaker and the committee to discuss the matter to try to avoid conflict and resolve the issues. If any amendments are to be made to the caretaking service contractors’ engagement, they must be approved by a motion

passed by ordinary resolution at a general meeting. Poor communication and insufficient information are arguably two of the key factors fuelling misconceptions and conflict.

BCCM REPORT

Caretakers and maintenance responsibilities

To foster a healthy working relationship between the caretaker and residents, it is imperative that the caretaker’s duties concerning maintenance are well-defined. A clear understanding of the caretaker’s responsibilities means there is less room for wrong assumptions and unreasonable expectations. Further information about maintenance issues in a body corporate could be found at: https://www.qld.gov.au/law/ housing-and-neighbours/ body-corporate/maintenance

It follows that the responsibility for common property maintenance, that is not covered under the caretaker’s contract, falls back to the body corporate. Any common property maintenance that is the body corporate’s responsibility, must be approved by either a committee decision (if it is within their spending limit and there is provision in the budget for the expense), or the owners at a general meeting.

What if the terms of the contract are unclear? Unfortunately, it is not always as straightforward as checking the terms of the contract to confirm the caretaker’s duties. In some cases, an additional layer of confusion is thrown into the mix when the terms of the contract are unclear and open to different interpretations. Grey areas in caretaker contracts naturally trigger conflict, as the caretaker may have a particular understanding

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

INDUSTRY

1300 ARAMA Q (1300 27 26 27)

PERSON OF INTEREST

Ben Orton: From pool builder to making a splash with prestige properties By Grantlee Kieza, Industry Reporter

Ben Orton entered the management rights industry 11 years ago and his family company, Prestige Residential, is making an impact within the industry. Prestige Residential focuses on the management of upmarket complexes of residential apartments and luxury homes. Ben says his company is committed to the consistent delivery of superior levels of property and building management, to optimise the financial returns and quality of living for both residential investors and residents. Talking to Grantlee Kieza, Ben revealed that he began his

We treat our management rights as a property management business and run it that way working life helping his father build commercial swimming pools on the Gold Coast, before gaining more experience in building projects in London. He now has several major management rights properties under management but is also involved in others through various investments. Some of the major MR complexes managed by Prestige Residential include Atrium at Buderim; High Street at Sippy Downs; Tingirana at Noosa; On The Beach Noosa; Ephraim Island off Paradise

Point on the northern end of the Gold Coast; River Reach Apartments plus Riverscape Apartments, the Yungaba complex and The Point Apartments at Kangaroo Point in Brisbane. The management rights to both Atrium Apartments and High Street Apartments complexes in Buderim were purchased last year from leading developer Habitat. Both resort-style complexes are perfectly located near schools and between two large shopping centres, feature several inground

INDUSTRY

swimming pools, BBQ areas, and children's playgrounds - all just 12 minutes from some of the Sunshine Coast’s best beaches. Tingirana Apartments and On The Beach Noosa are both short-term properties on the popular Hastings Street in Noosa, and offer outstanding absolute beachfront locations. Ephraim Island is a luxurious residential island, developed by Mirvac, with a total of 385 chic residences on a 9.6-hectare site, and is one of the largest developments on the Gold Coast. The Housing Industry Association (HIA) named Ephraim its “Residential Lifestyle Development of the Year”. Its five precincts are a mix of luxurious apartments, villas and homes. Three-quarters of the island is dedicated to parkland, with lakes, inlets, and a conservation reserve. ResortNews | May 2022

The island lies adjacent to Sovereign Island and facilities on Ephraim include swimming pools, a gym, a marina for over 100 boats, a spa, sauna, steam room, BBQ and meeting facilities for residents. The Kangaroo Point properties all offer luxury and stunning city views, with Yungaba’s Apartments set amongst 3000 square metres of heritage-listed gardens protected under the Queensland Heritage Council. Riverscape Apartments, Riverreach Apartments and The Point Apartments are all located along the river opposite the Riverside complex and Brisbane CBD. Ben, 38, now lives on the Sunshine Coast but grew up on the Gold Coast, where he helped build swimming pools at Q1, Circle on Cavill and several other high-rise buildings. “After doing that for a while I moved to London for two and a half years,” he said, “and I was working on big construction sites overseeing work for a company called Farcon. I worked on places such as the London Palladium and the London Metropolitan University. We also refurbished the Sheraton Belgravia, a 10-storey building we took back to a concrete structure and then totally refitted. At first, I was supervising just the steel and concrete formwork, but then I ended up across everything. I oversaw plumbers, bricklayers, and multiple teams of laborers, it was a huge responsibility for me to manage such large teams. I don't know why they threw me into the deep end, but I guess they could see I could do the job well, and I was keen to do the work! There was a massive amount of construction going on in London at the time because it was just prior to the 2012 Olympics.” Ben returned to Brisbane to help run a short-stay apartment building in Spring Hill for Warren and Patricia Daniels, the parents of his wife, Emma. “We started off with that one building, a short-stay property, and we built the income up for the family,” Ben said. “We then purchased another couple of buildings, Frisco Apartments in Brisbane, and Vine Apartments in South Brisbane. We used those funds to purchase some perfectly located long-term buildings in Kangaroo Point which are still in our portfolio.” ResortNews | May 2022

The Yungaba complex – Image Supplied

been great, but two people have been instrumental in our success and that’s Kylie English and Kiefer Toland.

Ben had not been involved in management rights before but growing up on the Gold Coast he was always aware of the MR industry. “My in-laws had been managing hotels for over 40 years in London, Melbourne, PNG and in Brisbane,” he said, “but they wanted to take a step back and let us take over the reins. They were able to retire a year later pretty much, while my wife and I kept growing the portfolio. “Management rights is a great industry for the right person. It's definitely not for everybody, it’s hard work. If anyone tells you it's not, they’re kidding. “We have managers in every building now, and we work very closely with them. It’s a matter of fine-tuning the businesses so they are well run. Some locations lend themselves to people thinking that management rights are a lifestyle job, but it’s still a lot of work, even if you are in a great environment. Even though our properties are in great locations, we don’t treat this as a lifestyle job. We treat our management rights as a property management business and run it that way.” Ben says his 11-year run in the industry has been enjoyable, increasing the efficiencies and income of the buildings in his portfolio. He credits many people for this success, especially Warren and Patricia Daniels who gave him and his wife Emma “a great start”. He said: “All our managers are hand-picked and have

“Kylie is the group general manager and Kiefer is our group operations manager, and they work with me directly. They oversee a lot of the operations and management and work very closely with our onsite managers at each property. “Atrium, Buderim and High Street, in Sippy Downs are just 200 metres apart, as the crow flies. In addition to the onsite managers, we have several grounds and office/letting staff members across them.” Ben’s advice to anyone wanting to buy into management rights, even on a small scale, is “do your research”. He said: “Make sure you employ MR industry accountants and lawyers, to give you the right advice. Then engage people who are experienced in the field and take their advice the best you can.” He explained: “While Prestige Residential is always looking for opportunities, we have no immediate plans to buy more management rights." He believes the ‘tightly held’ buildings at Noosa continue to offer great potential. “Everyone loves Noosa", he said, it is such a welcoming place. “At the moment we’re concentrating on our current properties and improving their performances where possible. We’ll assess any

INDUSTRY

new properties as they come along. I think in the future we will see larger companies and syndicates becoming involved in management rights. “The potential income and levels of financial returns make them very exciting investments and more companies will look at them. I think the industry will keep growing. “Furthermore, there are more and more buildings going up in Southeast Queensland, and the buildings are getting bigger. Once, 30 or 40 years ago, a building might have had 20 walk-up lots but now they are more likely to have 100 on a similar sized block. For the bigger schemes, the involvement of large companies and syndicates could force the earnings and multiples even higher. Big investors are focused on returns, and generally speaking, the bigger the scheme - the better the returns.” Once an avid golfer and road cyclist, Ben’s leisure time has been curtailed with the growth of the business. He said: “I might be able to sneak out for a game of golf three times a year now. I ride the bike as much as possible, but the weekly game of golf is a thing of the past. We also have three children who are always on the go. They are aged five, four, and one. They keep us busy but are great fun and at a stage where they need our attention.”

LEGAL EASE

Short-term letting issues for managers Whether a manager is entitled to let out a lot in a community title scheme (for short term purposes) is not always easy or simple to determine. There are a number of factors that must be taken into account, including: •

The terms of the planning or development approvals, which will outline what uses are lawful and unlawful.

•

The terms of the relevant planning schemes for the local government area, which can change over time.

•

The local laws in any particular local government area regarding short stay accommodation.

•

The terms of the letting appointments with owners and the letting authorisation with the body corporate (which potentially can prohibit short-term letting); and

•

compliance with the managed investment provisions of the Corporations Act.

In any case, the class of the building is irrelevant. Under current laws, a class 2 building and a class 3 building can both be used for either short or long term residential use. Furthermore, there are inconsistencies between Queensland and other states, so each case needs to be considered on its merits. We outline some of the rules below…

Brisbane Under previous town planning schemes, a strata title unit complex was generally considered an “apartment building”. The definitions failed to include any requirement or element of long term or permanency about it. As a result, it was previously widely accepted it was lawful to use those units

Unfortunately, determining if a lot can be used for shortterm letting is never going to be clear and easy Amy McKee Partner, Mahoneys

or apartments for any duration of residential use, being either short or long term, serviced or otherwise. The council today will not necessarily accept this view. However, things changed with the introduction of Brisbane City Plan 2000 and changed again under Brisbane City Plan 2014. The Brisbane City Plan 2000 changed the relevant term to "multi-unit dwellings" where the definition included an element of permanency. It also introduced the concept of “Short Term Accommodation” for use of premises for short term accommodation (typically not exceeding two weeks) for tourists and travellers, giving serviced apartments as an example. The Brisbane City Plan 2014 changed the term to "multiple dwelling" and introduced a new definition of "short term accommodation" (three months or less). The effect of these changes is that any building approved as "multi-unit dwelling" or "multiple dwelling" is not permitted to be used for short term accommodation without a further approval.

Gold Coast Similar terminology and changes have also affected the Gold Coast. Previously under the Gold Coast Planning Scheme the use of an "apartment" did not have any reference to the length of the residential use. However, the Gold Coast City Planning Scheme was amended in 2016 to introduce a new

concept of "short-term letting" which created the same issues as Brisbane. As a result, an approval for an apartment alone (without any other approval for short-term letting) will not allow that apartment to be used for short term letting.

Noosa The Noosa Plan came into effect in 2020. It also introduced a new definition for "short stay accommodation". This introduction had similar effects as in Brisbane and Gold Coast. To determine if short stay accommodation is permitted it is now necessary to look at the approvals currently in place to determine what those approvals allow and see if those uses fit within the current definition of short stay accommodation. Additionally, in February this year a new local law was introduced requiring operators to hold an approval for "short stay letting" except for certain specified addresses which are excluded from the local law (for example Hastings Street precinct). The purpose of this is to manage lawful short-term letting to reduce impacts on permanent residents and have a code of conduct for operators as well as guests. The application can be made free of charge until June 30, 2022. There is a number of conditions on approval which will include 24/7 availability, residing or having a place of businesses within 20km of the premises, being able to respond within 30 minutes of a complaint and certain insurance requirements.

MANAGEMENT

NSW Late last year the NSW Government's STRA (short term residential accommodation) rules came into effect. Unless a lot has been approved for "tourist and visitor accommodation" the new rules will apply, including the managers will be required to register on the NSW STRA register; make sure the property meets the new fire safety standards; abide with the Code of Conduct; and take note of the number of days that the property can be rented for short term accommodation. If the property is in Greater Sydney, Ballina shire or certain areas in Clarence Valley and Muswellbrook, short term accommodation will be limited to 180 days a year which will be monitored via the STRA register. Additionally, unlike in Queensland where a by-law cannot directly prevent short term accommodation, in NSW a by-law may prevent short-term letting.

Next steps for managers Unfortunately, determining if a lot can be used for short-term letting is never going to be clear and easy. It may require both legal and town planning advice. Managers should ensure such advice is obtained. If short-term letting is prohibited, then it is possible to make an application to the relevant council for a material change of use. This may or may not be an easy and/or costly process depending on the property involved and the relevant attitudes of the council. ResortNews | May 2022

REI

“Go to REI CLOUD, go today!” Marianne Wallis

Manager, Victoria Square Apartments

www.reicloud.com.au/WatchVideo

1800 671 179

BY ALL ACCOUNTS

Warning employee or contractor? Do you engage in the services of independent contractors? Have you given thought over the possibility that they could be employees? Getting it wrong can land you big trouble. Following the GFC, Australia has experienced an incredible surge in the amount of contract, temporary and freelance work, dubbed ‘the gig economy’. The underlying force behind an increase in contract related work vests on the grounds of higher flexibility, and lower costs associated with outsourcing work to a third party. The difference between an employee and an independent contractor and an employee is not defined by a fine line. The relationship between yourself and your independent contractor is called a contract for service. On the other hand, a contract of service is the relationship set between yourself and your employee. This is certainly a subtle difference but should not be considered lightly.

•

Jonathan Hanaghan, Director, Jonathan Grant Accountants

•

An employee is mostly provided with tools and equipment by their employer. Contractors mostly provide their own tools and equipment.

Commercial risks of worker •

Businesses are responsible for their employees work and so employees do not take on commercial risk. Contractors will be personally liable to rectify any defects.

Control over the work. A business has full discretion over what work needs to be completed by their employee and how it is performed. Contractors can decide how their work is done provided it is within the terms of the contract.

Independence of worker •

Employees form part of the business and therefore are not independent. Contractors operate their own business independently, they can accept or refuse additional work.

Other important factors to consider is the exclusivity of the worker and if the worker advertises themselves ‘to the world at large’. Exclusivity asks whether the worker is hired by numerous businesses or must remain exclusive to their employer. Advertising ‘to the world at large’ would likely mean that the contractor has

For example, in Rabba v OekeGuy Pty Ltd T/A PeleGuy [2013] FWC 70, the worker was a salesperson who was required to sell products to convenience stores and petrol stations. The features that supported the salesperson as an employee was that he worked exclusively under their employer, was unable to engage others to perform his work, was subject to the supervision of the employer, and selling goods was a vital part of the business of the employer. These facts were weighed up against the fact that the worker submitted invoices, paid for the cost of their motor vehicle fuel, was not subject to PAYG tax, would determine his own hours, and was paid by commission on sales. Perhaps a normal person would be led to believe the worker is a contractor as employees do not invoice their employer and do not determine their own hours. However, the inability of the worker to subcontract, and the fact that he was not conducting his own business when he performed the work gave the court no option but to conclude that the worker was an employee.

To determine whether your worker is performing a contract for service (contractor) or a contract of service (employee), the court system will analyse several factors, which is known as the multi-factor test:

Avoid the myths

Ability of the worker to subcontract/delegate.

Myth: If a worker has an ABN they're a contractor.

•

An employee can’t pay someone else to do their job, but a contractor can.

Fact: The existence of an ABN does not confirm that a worker is a contractor.

•

Basis of worker’s payment.

•

An employee may be paid for the time worked, or per item, activity, or on a commission basis. Contractors are paid to achieve a specific result.

•

a business name and logo in place, they have a work uniform with their own logo, and they have a storage shed or office that they can operate from.

Equipment, tools and other assets provided by worker or provided to worker. MANAGEMENT

An employer may force an employee to obtain an ABN to make them look like a contractor and hence mitigating super and tax obligations. This is known as sham contracting. Breaching the sham contracting provisions under the Fair Work Act 2009 will land severe penalties and contraventions. ResortNews | May 2022

Myth: If a worker is a contractor for one job, they will be a contractor for all jobs. Fact: The working arrangement and specific terms and conditions will determine whether a worker is an employee or contractor for each job. A worker could be an employee for one job and a contractor for the next job. It is paramount to make an ongoing effort to ensure there are no differences between your worker’s contract and their actual working conditions. If you hired a contractor last quarter, and suddenly their job role has turned in to an employee, you must immediately start withholding PAYG tax on their behalf, pay the super guarantee minimum, and obtain work cover. Myth: If a worker submits an invoice for their work, they're a contractor. Fact: The existence of an invoice for completed work does not confirm a worker a contractor. You must examine the working conditions of the worker, many court cases are not decided over whether the worker has an ABN, if there was a contract in place, or if the worker submitted

an invoice, they come down to the factors mentioned before (multi-factor test) such as the exclusivity of the worker.

Do I have to pay my contractor’s super? Even after you have confirmed that you have hired a contractor you may still be liable for super contributions on their behalf. The Superannuation Guarantee (Administration) Act 1992 (Cth) states that a contractor is entitled to superannuation contributions if they work under a contract that is “wholly or principally for the labour of the person.” Employers will have to pay the 10 percent Super Guarantee minimum provided that the contractor

has earned $450 (before tax) for any calendar month. Note this minimum threshold is being scrapped shortly. If you incorrectly classify an individual as an employee or contractor, you may be liable for: •

superannuation charges,

•

additional payroll tax,

•

penalties and interest,

•

unpaid annual and long service leave,

•

compensation for unfair dismissal or other remedies

Since the induction of taxable payments annual reports (TPARs) to the building and construction industry in 2014, the ATO has

continued to strengthen their resources in order to close the gap of non-compliance. Recently, the ATO has broadened this scope to several other industries and their businesses. Businesses providing cleaning services must now lodge a TPAR. Clearly this has implications for our businesses in management rights. If you have a management rights business and 10 percent or more of your income is for cleaning services, you must lodge a TPAR. Although, if you fall under this threshold, it is still a wise decision to lodge a TPAR nil report to avoid questioning from the ATO later down the track. If you have a business and wanting to ascertain whether you have an employee or contractor relationship, I recommend that you use the ATO decision tool. Note that it is not designed to be used for individual workers: https://www.ato.gov. au/calculators-and-tools/ employee-or-contractor/. If you are still unsure if your worker is a contractor or an employee, please seek professional guidance from your accountant.

The Management Rights Lawyers

y Buying and selling y Legal due diligence y Agreements and variations y Options and top-ups y Dispute resolution ARAMA

ARAMA2021 TOPAWARDS

Service Provider

SERVICE PROVIDER OF THE YEAR

OF THE YEAR WINNER

2019, 2020 & 2021

Brisbane L 18, 167 Eagle Street Brisbane Qld 4000 07 3007 3777

Gold Coast L 2, 235 Varsity Parade Varsity Lakes Qld 4230 07 5562 2959

www.mahoneys.com.au

ResortNews | May 2022

MANAGEMENT

We all know the internet allows anything to be advertised and found at the click of a button. It makes life so much easier than trying to find things ‘the old fashion way’. However, when it comes to advertising, one of the best mediums for any business positioned on a main road, or anywhere there is a large amount of passing traffic is the exterior presentation and property signage. Motels are generally located where there are large amounts of passing traffic every day, for example a main road, highway, CBD, and so on. The impact to the potential customer/guest and value of this advertising medium can be easily underestimated. It raises the question, why is one of a motel’s biggest assets and advertising opportunities so often neglected? Motel exteriors/frontages and property signage are often tired, faded, obsolete or even falling down, and in many cases do not make a motel property look appealing from the street. Items such as discoloured painted walls, faded signage, damaged driveways, and lawns that need manicuring.

MOTEL MARKET

Boost your appeal

the year? How many vehicles, therefore potential guests and referrers would see it, and either be impressed or unimpressed by the signage? How many direct room sales, indirect room sales and value towards market awareness would be achieved?

Andrew Morgan, Queensland Tourism and Hospitality Brokers

The ‘off the street’ accommodation market is basing their split-second decision to stop the car at a particular motel largely based on this presentation and signage (as part of the entire exterior appeal). This market is there for the taking, the demand is there, the supply is there, it comes down to who appeals the most. Regarding signage, it would have to be one of the most costeffective advertising mediums available. This means taking into account the volume of travellers and commuters that see it every day, the capital cost, market positioning and differentiation and enhanced presentation. Cost vs benefit against other advertising mediums over the effective life of the signage would make it look inexpensive. For example, a $30,000 property sign with an effective life of say 10 years equates to $3,000 per annum. How many potential guests would see this over

The signage inserts would have exceeded their useful life before this time due to fading or the information becoming obsolete. The cost of replacing only the sign inserts on a more regular basis is very cost effective for the benefit gained. A motel’s exterior look and signage is largely what its perception in the market is based on. Those driving past that have never been inside the units, can only make an assessment on what they see for a brief moment. The first impression of good, bad or indifferent is made and that’s what they will run with. In that person’s mind, this is what they can expect to find inside the property. They may be the best rooms in town but unless potential guests or the general public are attracted from the outside, who would know. Studies show that customers are more likely to purchase from, and recommend, businesses with which they are familiar. If a person is travelling the same route, past the same properties regularly and even if they are not actually aware of it, the vision, signage and prompts they see along the way are making an impression. They

MANAGEMENT

are therefore more likely to comment on those properties they are familiar with and those with exterior appeal that has left them with a good impression of what lies within, when making recommendations or comments. The large capital cost is often the biggest issue for renewing property signage. In the case of leases, the Lessee would like to do a brand-new sign to improve the image of the motel. They want to improve the street appeal of the business and hopefully capture more ‘passer-by’ trade thereby increasing the occupancy and income of the business. This also strengthens the Lessor’s investment by having a stronger tenancy arrangement in place. Often the signage is a large structure that belongs to the Lessor as part of the building and the Lessee maintains it. The Lessor’s responsibility is then replacement. The inserts however (if easily replaced) would be more likely the Lessee’s responsibility. A well-presented and attractive frontage with prominent, eye-catching signage provides continual exposure to thousands of potential guests, building brand awareness and guiding traveller’s decisions on where to stay. I know it’s an old cliché but street appeal and property signage really is the silent salesperson, working hard to promote a business all day, every day. ResortNews | May 2022

Last month ARAMA invited Letts Rebuild to be a guest speaker on their infamous educational webinar. The topic was “how to protect and defend your letting pool” where I spoke about the techniques we use to try and ‘win back’ outside investors.

Winning over an investor and building a relationship takes time and consistency Kelley Rigby, Managing Director, Letts Rebuild

I wish I could proclaim that Letts Rebuild had created a magic potion or remedy that instantly wins over your outside investors back into your rental pool, unfortunately we have not. What I can do is pass on a few insider tips and tricks for you to implement into your daily/weekly/monthly routine.

investors, such as, phone calls, text messages, email, post and video marketing. The content within these different strategies can range from educational information through to monthly give aways or offers. You may just find that some of these investors didn’t even know that you ran a property management business onsite. The thing we must remember is not everyone is familiar with the industry we know and love, so sometimes it takes a little bit of educating.

Winning over an investor and building a relationship takes time and consistency. At Letts Rebuild we create what we call a marketing schedule which pans out over a six-month period. In this schedule we have different strategies to target these

Some of the roadblocks that do come up, are when the investor is generally happy with the property manager they have in place, this is where patience comes in. The timeframe of a property manager in one company or job from my experience is never very long.

This webinar was in such high demand I thought I would put ‘pen to paper’ or ‘fingers to keyboard’ and write up an article on just that.

BUILDING RELATIONSHIPS

Winning over your outside investors

Be sure to keep consistent with your marketing, WHEN not IF but WHEN these property managers leave the company or make a critical error, you want to be in the forefront of the investor’s mind. The other common obstacle is if the investor has a portfolio of properties and has them all looked after by an outside agent. In this case seeing as you the manager would obtain a full real estate licence, I would offer to look after them all for them, not only winning one investment but multiple.

Top tips to help win over your outside investors: 1.

Educate them on management rights and the benefits of YOU.

Listen to what they are looking for in a property manager and what matters to them.

Communicate with them regularly, always be at the forefront of their minds.

Learn more about them on a personal level and be sure to show them how important their business is to you.

Side note: Did you know that the big agencies hire what they call a BDM (Business Development Manager) and their sole job Monday to Friday is to bring in rentals to the company’s portfolio. You managers need to make sure you are doing the same.

Accountants to the accommodation industry. Call 07 5430 7600 or visit holmans.com.au

ResortNews | May 2022

MANAGEMENT

THINKING MR

Happy wife: Happy life There’s a bloke in France working on an idea to use commercial passenger jet cargo space for paying guests.

SOFTWARE SOLUTIONS

Apparently if the idea works, passengers will get some sort of view from a converted loading door and the space will be designated as premium. As cargo bays are pressurised there’s plenty of oxygen so all that needs doing in order to be comfy is some form of temperature control. Cargo bays get a bit cold and moist at 30,000 feet, I’m told. I had cause to reflect on all this previously useless information recently… we’ll get to that!

occasion and the need to mark the event with many diamonds and a few days stay in some luxurious location. Apparently love will keep us together, but only if accompanied by some form of material appreciation.

This year marks an important milestone in the life of the ‘Managing Director’. I am not permitted to state the number, under pain of death but let’s just say it’s a big ‘O’ year. It will come as no surprise to learn that I have been left in no doubt as to the importance of the

Hamilton Island in the Whitsundays is a nice spot. Long favoured by sailors, holiday makers and international men of mystery, it’s a top spot to unwind and relax, albeit a very challenging place to run a resort. The weather is unpredictable, cyclones regularly ravage the

Made my day. We were collected by the resort shuttle and delivered to check in. The sneaky buggers who run the resort met us at reception with champagne and

the sort of smiles people who know they’ve ‘got you’ tend to exhibit. A relaxed and very happy vibe ensued before we were tipped into our golf buggy and pointed in the direction of our villa. To our delight we were allocated the exact room I had asked for when I explained the importance of the occasion to the reservations staff. Our luggage was already in situ and a bottle of the aforementioned champers was on ice. Of course, it was addictive and having got a taste we couldn’t help ourselves. The subsequent grand reveal of the price per bottle caused what felt like a momentary stroke, but what can you do? I’ll tell you what you do… Take a frantic drive to the bottle shop next morning to purchase a replacement at half the price before housekeeping turn up is what you do! But I digress. We unpacked and settled in. I opened my suitcase to be confronted by what appeared, at first assessment

4 Ways to keep potential guests on your website Attracting a prospective guest to your booking form is only half the battle. Keeping them there to complete the booking process can prove just as tricky. Did you know that 87.08 percent of online travel bookings are abandoned at the booking stage, with 37 percent of these leaving the site to compare prices on other booking sites? With this in mind, it is important to consider how you can increase the stickiness of your website and booking form to ensure your guest completes the booking process.

Mike Phipps, Director, Mike Phipps Finance

place and maintaining quality staff has got to be difficult. COVID hasn’t helped or, so we are told. The ‘MD’ is very fond of the place and in particular Qualia on the north western side of the island. I booked a few nights and calculated that if I work until I’m 98 I’ll get the credit card cleared. We flew from Brisbane with Virgin and had a great experience. Hassle free check in, nice lounge, nice staff and smooth flight. The last 10 minutes over the water coming into what looked like a too short runway was quite exhilarating. I wonder how often the planes must go around for a second attempt. There was a young fella on board having his 4th birthday and once we were stationary, he got an invite to go up front and check out the flight deck.

want to encourage potential guests to leave your site in order to search for relevant information elsewhere.

Sylvia Johnston, Senior Executive, HiRUM Software Solutions

Remember ‘a picture paints a thousand words’ and great photos on your booking platform will give your potential guest more information than reams of text. Written information needs to be concise and accurate to clearly state your property’s features and amenities. 2. Provide clear pricing

1. Correctly display what your property has to offer Clearly display your offering by making sure all your property information is easily accessible on your site. You do not

Be clear on the price throughout the booking process. No one likes a nasty surprise when they get to the final step only to discover hidden additional charges.

MANAGEMENT

3. Make the booking process simple We’ve all experienced booking platforms where the process is so convoluted that in the end you give up in frustration and find an easier place to book. Don’t fall into this trap. You want your prospective guest to have a seamless, quick, and easy booking experience. 4. Don’t make your guest shop around, use a rate comparison tool Price-conscious travellers abandon bookings at the last minute to check out prices on OTA sites that may be perceived to offer better rates. An inbuilt live rate comparison ResortNews | May 2022

Of course, the suitcase remained full of coffee granules which needed to be tipped out. No problem, we had a deck overlooking the water, so I just tipped the case upside down and thought ‘all will be well’. I’m not sure what came next, the ‘MD’ cautioning me to check the case or the sight of the contents of unzipped compartments falling into the bush far below. The recovery mission seemed to provide amusement for those who witnessed it, but by then I’d lost my sense of humour.

Perhaps it was the series of unfortunate events, maybe the biblical rain but I found myself in a reflective mood. What struck me most profoundly was the lack of COVID excuses exhibited by our chosen airline and our accommodation provider. If recent press reports are anything to go by the Virgin cabin crew have every reason to be less than content and yet they exhibited professionalism, good humour and a touch of the spirit so valued by their founder. It would be easy for an airline to hide behind recent financial troubles and COVID impacts as excuses for a poor customer experience. They didn’t! Likewise, the experience on Hamilton Island. The resort has been well maintained and to our surprise plenty of competent staff, many from foreign lands. We are told that the destination is very popular with visitors from Melbourne and Sydney and forward booking demand is strong. If management are facing supply chain, trades, and staffing challenges they are doing a great job of shielding guests from any negative experience.

Virgin cabin crew have every reason to be less than content and yet they exhibited professionalism, good humour

to be the aftermath of having smuggled a small animal with bowel issues in my case. Given that I packed for an island holiday, and am a complete wanker, many white linen items, were mostly now caked or flecked with a brown, sticky substance. It was at this point that my recently acquired knowledge of passenger jet cargo holds collided with my desire to carry my own preferred brand of instant coffee. Yep, the lid had come off the coffee bottle mid-flight. What a mess! We salvaged what we could and sent the rest off to be laundered.

It seems to me that COVID has certainly presented challenges, particularly for tourism and hospitality operators. The catch cry “due to COVID” has become code for “get ready for a bad experience”, admittedly in some

cases fully justified. However, our experience on this short break suggests that well managed leisure-oriented businesses are in robust good health. May they long continue.

tool on your website collects your property’s rates from other distribution channels and displays these rates next to your own.

the market, enabling you to adjust your rates accordingly, without the hassle of having to manually research pricing on each of the OTAs.

By introducing the rate comparison tool into the early stages of the customer’s journey, you eliminate the need for them to leave your booking form to check prices elsewhere and shop around for that potential ‘better’ rate.

Remember, that a ‘sticky’ website and booking engine is your goal. Provide your potential guest with all the information that they need to make an informed purchase decision via accurate information, great photographs and informative and engaging text. Ensure that your booking engine is as simple and easy to use as possible. Include rate comparisons on the booking form itself using a rate comparison tool.

This in turn increases your buyers’ trust in your offering by providing them with up-todate transparent data from other distribution channels. If your guest leaves your site to seek comparison prices you run the risk of them booking through an alternative distribution channel and you losing revenue by having to pay the associated commissions. Worse still, you run the risk of losing the booking altogether as ResortNews | May 2022

Image Supplied by HiRUM Software Solutions

they will be faced with listings from competitor properties, and an alternative property or deal may catch their eye.

A rate comparison tool can also benefit you, as the property manager. It helps you stay aware of your own pricing within

MANAGEMENT

By ensuring that the booking process is as simple as possible and that the buyer’s experience is seamless, you will have far less chance of the potential guests moving from your booking form and a much greater likelihood that they will book direct with you.

GOOD GOVERNANCE

Water leaks:

Are you still under warranty? With all the recent rain we’ve had you may have discovered water leaks that you’ve never seen before. Or perhaps there has been an annoying reemergence of old leaks that you thought were fixed. A professional project manager is the key to a managing a successful warranty claim for your leaks. An effective project manager does not just do an inspection of the leaks to prepare a remedial scope of works, but they ensure the body corporate has a reliable warranty on file for any relevant works. That is to say, the project manager checks to see if a warranty is still on foot and claimable.

What is a warranty? Leaks into habitable areas are considered a structural or major defect and claimable under the warranty. There are two common types of warranties relevant to capital upgrade works on common property that the building owner will be able to draw upon in the event of a leak.

building but there has been a re-roof project, or waterproof membrane or roof repairs and they are now leaking, there may be a claim under the trade contractor’s statutory warranty. If the building is outside the defect liability period for either original construction work or any retrospective trade contractor repairs or upgrades, then the repairs are unlikely to fall to any warranty.

Roof or waterproof membrane leaks The first step for repairing roof leaks is to determine if the roof is still under warranty. If not, your project manager will follow these steps: •

Investigate exact cause of the leak (this may require invasive surveying of the roof, ceiling space and removal of roof sheets, and insulation).

•

Prepare a remedial scope of works for tendering.

•

Obtain ‘apples-for-apples’ quotes from trade contractors (make sure the trade contractors are suitably qualified, licensed and willing to provide a warranty certificate for the work).

Lynda Kypriadakis, Diverse FMX

These statutory and voluntary warranties apply to both the supplier (of the materials, plant and/or equipment) and the contractor (for workmanship). It is important to obtain warranty certificates whenever works are done on common property and for the committee to keep these warranties on file until they expire.

What warranty should we have? When your building is experiencing water leaks your project manager will first check to see if any warranties apply. If your building is new and still within the defect liability period after construction, there will be a claim to be made under the builder warranty. If it is an older

•

Vote on repair works and go to contract.

•

Obtain a warranty for the repair works upon completion.

If water is coming in via windows or doors (or any other point of ingress) the same process applies as roof leaks in getting the leak fixed.

How long should a warranty be? All structural works, including waterproof membranes, roof and windows/doors are warranted for six years and six months

Voluntary warranties: These include extended warranties, usually offered by materials suppliers.

MANAGEMENT

A sub-contractor’s warranty is required for any works done by the trade contractor, for example, waterproofing. The waterproof membrane applicator should be providing you with a workmanship warranty for the waterproofing work. A great project manager will ensure the best warranties available are provided to the body corporate at the end of the works. It is the project manager’s role to ensure these warranties are harvested and passed on to the body corporate prior to release of final payment for the works. The supplier’s warranty is a voluntary product warranty offered by the supplier or manufacturer, generally applied in accordance with consumer legislation. Again, an excellent project manager will only include fully warranted products in their tender scope/ specification and ensure supplier warranty certificates are harvested for the best interests of the body corporate.

Is there an exemption for severe weather events under the trade contractor warranty?

Window or door leaks

Statutory warranties: These include the mandatory warranty under the builder or trade contractor license.

under the QBCC statutory builder’s warranty in Queensland. Check with your state-specific building industry regulator for details outside Queensland.

Sometimes weather events are so severe that they void a ‘normal’ trade contractor warranty. For example, a catastrophic flood or cyclone. It is not likely that a roof or window warranty will be upheld if the building is flattened by a cyclone. The best way to discover if the trade contractor warranty is voided due to a severe weather event is via consultation with the building insurer. If the insurer believes the construction element (roof or window for instance) should have performed and stayed watertight during the weather event, then any claim will go to the trade contractor, if still within the warranty period. If the trade contractor states that the construction element was unable to perform because the weather conditions were extreme, and outside ‘normal’ weather tolerances, then it becomes a bit more complicated, and the building owner will need to get professional and legal advice on claim options. ResortNews | May 2022

Revenue diversification:

Holiday parks are perfectly located for exquisite events By Grantlee Kieza, Industry Reporter

Australia’s caravan and holiday parks occupy some of the most spectacular areas in Australia and they are increasingly luring guests for major events. Margaret Shannon, a board member from the Caravan Industry Association of Australia, runs the spectacular Tiona Holiday Park, just outside Forster on the NSW mid-north coast, and in 18 months has increased the number of weddings there from 20 to 70 a year. She is also hard at work driving corporate traffic to the lush setting between Wallis Lake and the Seven Mile Beach. Ms Shannon says every time Tiona hosts a wedding its 30 cabins are filled. There are often two weddings a weekend and in the past year there was even one weekend with three.

“We have taken on a second wedding coordinator because our original wedding coordinator was just being inundated with enquiries,” Ms Shannon said.

“Functions and events have become a significant part of our business. The previous operators didn’t see the value of events and they had sold the rights to an event manager for weddings, but we have since bought back the wedding business.

“That area of the business is now that big, but while the weddings are popular on the weekends, we’re hiring an event sales co-ordinator, too, because we want to fill the mid-week space with corporate events.

“I know of at least three other parks in our area who are now starting to use event hire companies because they have a large amount of spectacular space. They are starting to put up temporary marquees and are bringing in caterers.

“We’ve already started conversations with Destinations North Coast to look at ways of drawing these big corporate events to our venue. “We have the facilities and the location to do that.”

“But we have our own purpose-built events centre, the Palms Pavilion.”

ResortNews | May 2022

Ms Shannon said Tiona was a perfect location for retreats and conferences. Guests could start the day with yoga on the foreshore, with the sun slowly peeking through the trees, while private family events could take place as well-wishers watched the sunset turn the lake shades of red and orange. “Our Green Cathedral is a unique open-air chapel style venue by the lakeside,” she said. “It’s very popular for weddings and we have had a lot of people getting married there and then having the reception and staying on site.

PROGRAMME

Tiona is situated on The Lakes Way at Pacific Palms, a 10-minute drive south of Forster and about 30 kilometres north of Seal Rocks. The accommodation park comprises about eight hectares on a lush property of more than 30 hectares. While the park hosts 70 weddings a year, there are also large gatherings for Christmas parties and family reunions.

ASBESTOS REMOVAL BATHROOM RENOVATIONS BODY CORPORATE MANAGERS MANAGEMENT RIGHTS AGENTS PAINTERS & DECORATORS SOLICITORS

“A lot of holiday parks around Australia are in beautiful settings so it makes sense that they use these amazing locations to their advantage,” said Ms Shannon, who with business partner Rob Jeffress have overseen $1.8 million in refurbishments at Tiona

to create startling results. “The hosting of big events is a trend happening at a lot of other parks, too, they are definitely looking at revenue diversification.

MANAGEMENT

Zero Asbestos Shower Sealed Body Corporate Services Resort Sales Texspec Pty Ltd Flood Legal Small Myers Hughes

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

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

By Grantlee Kieza, Industry Reporter

A continuing reluctance among Australian holidaymakers to travel overseas augers well for tourism operators in the Sunshine State this year. Queensland Tourism Industry Council Chief Executive Daniel Gschwind says that he is confident Queensland operators will experience strong visitor numbers this tourism season. “Although international borders have reopened, we’re continuing to see a reluctance in Australian holidaymakers to venture overseas,” Mr Gschwind said. “Overwhelmingly, Australian travellers are choosing to stay closer to home. They are preferring to enjoy destinations and experiences that are on their doorstep or perhaps a little further in neighbouring states. “As the glorious Queensland winter weather arrives, it is not only the traditional caravanning retirees making their way north. More and more we’re seeing young families and couples enjoying our state for a weekend getaway or holiday. “This provides Queensland operators with the perfect opportunity to shine and encourage more visitors to our diverse Sunshine State destinations.” Mr Gschwind leaves the CEO role this month (April) and his successor Brett Fraser takes over as the tourism market makes a strong recovery in Queensland.

TOURISM REPORT

Tourism market heats up the ‘Sunshine State’

Matt Stoeckel, the CEO of Visit Sunshine Coast, said: “Overall, the Sunshine Coast recovered strongly in Q1 2022, with our strength in the domestic leisure market at the heart of the industry’s revival. We were without international visitors (who make up some 11 percent of our market normally) but that was largely replaced by an increase in intrastate and interstate visitors. “There was definitely significant ‘substitution’ happening, with couples and families who may have travelled overseas opting for the Sunshine Coast instead. Rates were at a premium across the upscale sector, and lengths of stay increased. “We have emphasised the Sunshine Coast’s nature, adventure attractions, highquality restaurants, and wellness, and it is complementing our traditional strengths in the family market. “The region benefited strongly from a return to full direct services into Sunshine Coast Airport and we are looking forward to increases in frequencies over the next six months, including a resumption

of services from Auckland in July.”

Queensland for the start of 2022.

Mr Stoeckel said an encouraging aspect of the performance had been the steady resumption of meetings and events, culminating in the hosting of the Australian Tourism Awards at the Sunshine Coast Convention Centre in March.

“After relying almost exclusively on the Queensland market for the past 18 months (which at least enabled us to keep most of our workforce) we were ready with a fully renovated resort to rebuild our interstate market, and it has been incredibly rewarding.

“Once we see a full resumption of business events,” he said, “the Sunshine Coast will return to almost pre-COVID levels. We will be able to target this sector even further with the opening of the Holiday Inn Express Hotel and Suites in May in the new Maroochydore city centre.”

“Since January momentum has been building and with Gold Coast Tourism’s ‘Stay and Play’ campaign we have sold over 2000 room nights in four weeks from interstate. It is clear that the Gold Coast name still resonates with Australian travellers, especially families.

Dr Jerry Schwartz, Director of Schwartz Family Company, and owner of Hilton Surfers Paradise and Paradise Resort Gold Coast, said that the recovery on the Gold Coast had been even better than anticipated.

“Traffic to Paradise Resort’s website has been the highest experienced since pre-COVID with the geo-source primarily showing maximum growth from Sydney and Melbourne.

“Guests continue to be predominantly leisure and we are also seeing an increase to the visitor length of stay. We see ongoing strong demand from intra-state travel as well as interstate travellers predominantly from Greater Sydney and broader NSW and Victoria. “The one sector that is lagging is the meetings market, which is still taking some time to recover. “Leisure is king on the Gold Coast, so it is not surprising that Paradise Resort Gold Coast has been one of the best performing hotels in © Weiqi Xiong - unsplash.com

For Q1 2022 the Sunshine Coast was achieving occupancies in both hotels and self-hosted shortstay accommodation in the high 70 percent range, with January over 90 percent. The figures could have been higher, but for the rainstorms affecting visitation in February and early March.

“During March we have exceeded expectations, writing over $2.6 million in new bookings, and April 2022 is now expected to be our busiest April on record with package inclusions being the most popular option, including add-on of internal activities, meals, external theme parks and other local attractions.

“In the 5-star segment, in Q1 2022, our Hilton Surfers Paradise has tracked ahead of pre-pandemic levels,” he said, “and April looks outstanding.

TOURISM

“Currently, our holdings are over 90 percent budgeted occupancy for the first six months of 2022, which reflects the fact that domestic holidays are still dominant in the minds of most Australian families.” Accor Pacific’s new CEO, Sarah Derry, said while COVID-19 continued to create some uncertainty about borders, and a lack of international tourists had supressed demand, the group’s Queensland hotels had ridden out the storm by targeting the drive markets. The group’s properties in the Sunshine State recorded an average of 70 percent occupancy, three per cent more for the same period in 2019 well before the unwelcome arrival of the pandemic. ResortNews | May 2022

Queensland Tourism Industry Council update It has been a wild and distressing ride for our industry over the last two years and it is perhaps too early to declare the crisis over, but not too early to recalibrate our outlook to a more optimistic setting. If I needed any more inspiration to reach that conclusion, it was on March 18 at the Qantas Australian Tourism Awards held at the Novotel Twin Waters on the Sunshine Coast. The joy of coming together again, in person, as a national industry was palpable in the room. More than 700 guests from all states and territories (welcome back WA!) celebrated the state and territory award winners, as the national gold, silver and bronze winners in 25 categories were announced. Every single entrant in the awards is a shining example of the extraordinary determination and commitment of operators in persisting against overwhelming odds during the multiple challenges of the last few years. A common theme during the acceptance speeches was the loyalty and support of operators and their staff. It goes right to the heart of what our industry is about and what makes us so strong. We are, of course, especially impressed with the Queensland national award recipients:

QLD Gold Winners Adventure Tourism: Red Cat Adventures

Daniel Gschwind,

Festivals & Events: Isaac Regional Council - Economy and Prosperity Department

Tourism Wineries, Distilleries & Breweries: Bundaberg Rum Distillery Visitor Experience (Hall of Fame)

Tourism Retail & Hire Services: Pelican Boat Hire

Hosted Accommodation: Narrows Escape Rainforest Retreat 4 to 4.5 Star Accommodation: Empire Apartment Hotel Major Festivals & Events: Beef Australia Limited Aboriginal & Torres Strait Islander Tourism: Spirits of the Red Sand

QLD Silver Winners Major Tourist Attractions: Currumbin Wildlife Sanctuary Business Event Venues: Empire Apartment Hotel Major Tour & Transport Operators: Red Cat Adventures Caravan & Holiday Parks: Julia Creek Caravan Park Self-Contained Accommodation: Pinnacles Resort

QLD Bronze Winners 5 Star Accommodation: InterContinental Hayman Island Resort

Bundaberg Rum Distillery Visitor Experience

ResortNews | May 2022

Qantas Australian Tourism Awards, Empire Apartment Hotel

Chief Executive, Queensland Tourism Industry Council

Visitor Information Services: Longreach Visitor Information Centre Congratulations to all award entrants, state and national, we can all be proud of their achievements. Meanwhile, QTIC continues to advocate and work with state and federal governments to direct necessary and targeted support measures to our tourism and hospitality sector to accelerate the recovery.

This, of course, includes the federal election. In partnership with the Australian Tourism Industry Council (ATIC), QTIC has set our election priorities, based on what our industry has identified as the key opportunities for the future. Tourism is and must be a bipartisan priority and we hope the next government will recognise the enormous potential that this sector offers economically, environmentally, and socially.

We recognise the partnerships and investments that governments have offered our industry during the most desperate times, including recent additional programs from the state government and the Commonwealth.

Finally, I take this opportunity to introduce my successor in this role as Chief Executive of QTIC. Brett Fraser, Brett is highly credentialled and well-placed to guide QTIC into a new era, building on the partnerships we have in the industry and with stakeholders in government and other sectors. We have a highly professional QTIC board and team in place that will work with Brett to continue to deliver value to our members and the industry.

Nevertheless, the entire community will benefit from an ongoing government investment in our industry’s recovery and QTIC will continue to make that case at every opportunity.

Personally, it has been an absolute privilege to lead QTIC over the last 21 years and work with so many inspiring and inspired people in an industry that will always be part of me.

Narrows Escape Rainforest Retreat

TOURISM

Spirits of the Red Sand

EVENTS

CIAA celebrated 30 years at its National Conference Congratulation to all award winners:

Images courtesy of the Caravan Industry Association of Australia

By Mandy Clake, Editor

CIAA put together an extraordinary event to celebrate 30 years from when the Caravan Industry Association of Australia (and its previous iterations) was founded. The conference opened on March 30, 2022, with masterclasses followed by

a buzzing trade expo and an official opening attended by over 800 delegates. It concluded with an industry night of nights, the National Conference Gala Dinner, was a roaring success. Hosted by MC the Hon. Jo Palmer MLC. The awards presented on the night included the industry’s most prestigious awardthe Eric Hayman Award for Excellence, along with the

Richard Davis OAM Award, Gerry Ryan OAM Award for Innovation and the Future Leaders Award that recognises the outstanding contributions made to strengthening the future of our industry. The awards night brought a week-long of conference activities to a close, some highlights included insurance panel for caravan parks, demographic learnings from Bernard Salt, an economic

CIAA Conference & Awards

•

Chris Goddard, the Eric Hayman OAM Award recipient.

•

Chris Johnson, the Richard Davis OAM Award recipient.

•

The Newbook team, the Gerry Ryan OAM Award recipient.

•

Andrew Hewitt, the Apollo Future Leaders Award recipient.

•

Blue Sky Caravans, the 2022 RVMAP People’s Choice Manufacturer of the Year Award recipient.

•

BIG4 Great Lakes at Forster Tuncurry, the 2022 ReviewPro People’s Choice Caravan Park of the Year Award recipient.

review by Australian Retirement trust Chief economist Brian Parker, a look at the future of tourism with Gus Balbontin and inspiration from Matina Jewel and Michael Crossland. This year’s conference proved to be the largest and most successful one yet.

CIAA Award recipient

EVENTS & APPOINTMENTS

ResortNews | May 2022

What about Women In Management?

The first Brisbane luncheon of 2022 was an absolute hit, the location of Maya Mexican Rooftop Restaurant and Bar provided a lush tropical vibe. The food was delicious, drinks were flowing, and effortless networking took place. Founder, Marisa Millane said: “I want to send out a big thank you to all the ladies for making the afternoon such a successful one.” If you would like to attend these luncheons, please head to www.womenin.com.au

ResortNews | May 2022

EVENTS & APPOINTMENTS

APPOINTMENTS

Queensland Tourism Industry Council farewells dedicated and inspirational industry leader

Welcome to new QTIC Chief Executive Brett Fraser Brett will lead the tourism industry at an exciting time with Brisbane 2032 on the horizon. He comes to QTIC after leading the Brisbane Economic Development Agency (BEDA).

Estate Lawyer; and both John and Amy O'Donnell were recognised as leading Queensland Leasing Lawyers. Doyle’s Guide is a well-known independent organisation that rates and recommends firms and lawyers based on interviews with their clients and peers. Mahoneys is proud to sit alongside some of the biggest names of the Queensland, and Australian, legal market.

Ward Commercial move to Yeppoon Peter Ward, Director of Ward Commercial (incorporating Ward Commercial Hotels division) is a well-known industry veteran of 35 years, including the last 20 years based on the Sunshine Coast.

Daniel Gschwind

After over 21 years in the job, the Chief Executive of QTIC, Daniel Gschwind is moving on. Daniel’s passion and commitment to the tourism industry has never faltered and most recently he led the sector through one of its most tumultuous periods, always offering wise guidance and support. Thank you, Daniel from the Resort News team, we wish you the very best.

QTIC Chief Executive Brett Fraser

Doyle's Guide to the Australian Legal Market, 2022 recognises Mahoneys John Mahoney has been recognised as a leading Queensland Property & Real

Peter Ward

to relocate to Yeppoon on the Capricorn Coast in March 2022.

Although a significant share of business during that time has been coastal Queensland mainly between Brisbane and Airlie Beach.

However, they will continue to maintain a presence on the Sunshine Coast. Peter confirmed that most of the company’s business is in the hospitality sector mainly sale of resorts, hotels, motels, caravan parks and management rights.

In recent years Ward Commercial has seen a noticeable increase in regional and particularly coastal activity in Central Queensland and this trend is increasing, hence their decision

They have also been involved in a number of significant land sales to clients in the manufactured home park sector plus acted as buyer’s agents for a number of major residential developers.

2022 ARAMA INDUSTRY EVENTS CALENDAR For registration and/or event information please contact us on 1300 ARAMA Q (1300 27 26 27), email national@arama.com.au or visit: https://www.arama.com.au/

BRANCH

EVENT TITLE

DATE

TIME

LOCATION

REGISTRATION

ALL

WEBINAR: Meet the Board

Wednesday, 18 May 2022

11am

ONLINE

Opening Soon

ALL

ARAMA 30th Anniversary Golf Day

Thursday, 19 May 2022

12pm

Twin Waters, Sunshine Coast

Open

ALL

ARAMA 30th Anniversary Celebration Dinner Friday, 20 May 2022

6pm

The Island, Surfers Paradise

Open

Gold Coast

Gold Coast - Social Lunch

Tuesday, 7 June 2022

11.30am

TBA

Opening soon

Sunshine Coast

Sunshine Coast - Social Lunch

Wednesday, 8 June 2022

11.30am

TBA

Opening soon

Brisbane

Social Event

Friday, 17 June 2022

4pm

Slipstream Brewing, Yeerongpilly

Opening soon

ALL

WEBINAR: Update from the Professionals

Wednesday, 22 June 2022

11am

ONLINE

Opening soon

ALL

MRITP

Thursday, 23 June 2022

8.30am - 4.00pm

Riverside Hotel, Brisbane

Open

Townsville

Risky Business

Thursday, 14 July 2022

6pm

Cowboys RLFC

TBC

ALL

TOP Awards Dinner

Tuesday, 26 July 2022

6pm

Brisbane City Hall

Opening soon

ALL

MRITP

Thursday, 18 August 2022

8:30 am to 4:00 pm Riverside Hotel, Brisbane

Open

Gold Coast

Trades & Services EXPO

Tuesday, 13 September 2022

6pm

Southport Sharks

Opening soon

Sunshine Coast

Trades & Services EXPO

Wednesday, 14 September 2022

6pm

Mooloolaba SLSC

Opening soon

Brisbane

Trades & Services EXPO

Thursday, 15 September 2022

6pm

Brisbane Broncos

Opening soon

Byron Bay

Training & Education CPD

Tuesday, 18 October 2022

6pm

Byron Bay Services Club

Opening soon

ALL

AGM and Members Forum

Thursday, 27 October 2022

10:30am

Riverside Hotel, Brisbane

Opening soon

ALL

MRITP

Friday, 28 October 2022

8:30 am to 4:00 pm Riverside Hotel, Brisbane

EVENTS & APPOINTMENTS

Open

ResortNews | May 2022

“This is a major milestone for the local community and we’re proud to collaborate with the Queensland Government and Hutchinson Builders on this landmark project, to help Brisbane meet growing demand in the lead up to the 2032 Olympic Games.”

DEVELOPMENT NEWS

Brunswick & Co

Following October’s announcement that Hutchinson Builders has been appointed as construction contractor, up to 290 workers will now be employed during the project’s construction phase. Scott Hutchinson, Chairman, Hutchinson Builders says “We’re very pleased to be starting work on site with Frasers Property and providing jobs for hundreds of people in the construction industry. “Over time Brunswick & Co. will evolve as a fitting addition to Brisbane’s Fortitude Valley, so we’re particularly excited to deliver a project of this calibre and contribute to the local landscape.” Brunswick & Co

Construction commences on Frasers Property’s first Build-to-Rent project in Fortitude Valley, Brisbane, to be known as Brunswick & Co. As the company’s first foray into the emerging sector, the wellconnected site at 210 Brunswick Street is set to be transformed into 366 studio, one- and two-bedroom apartments across 25 levels. Residents will enjoy exclusive access to a substantial amenity just 2km from Brisbane’s CBD. With its rooftop pool and dog park, outdoor terraces, library, cinema/karaoke room, cocktail bar, dining and entertainment areas, to co-working office areas, fitness centre and treatment room, Brunswick & Co. will provide people with a new way of renting in one of Brisbane’s most vibrant, diverse pockets. Brunswick & Co. conveniently sits adjacent to the $500 million Valley Metro redevelopment, where its ground level retail and integrated lobby café and bar will blend seamlessly into the thriving and revitalised Brunswick Street precinct. Cameron Leggatt, Executive General Manager Development, Frasers Property Australia says the company is excited to move into the construction phase of the project. “Frasers Property is committed to redefining renting at Brunswick & Co. with a focus on customer experience, world-class amenities and a sense of belonging through community development, all delivered in one of Brisbane’s most emerging and vibrant precincts,” he said.

Brunswick & Co. forms part of the Queensland Government’s Buildto-Rent (BTR) Pilot Project, providing affordable housing options to the inner-city and solidifying the asset class in Brisbane. Treasurer and Minister for Trade and Investment Cameron Dick says the development will help drive investment in infrastructure which is crucial to the ongoing delivery of economic recovery plan for Queensland’s Build-to-Rent sector, increasing housing supply and supporting over 290 construction jobs and more through the supply chain,” the Treasurer says. He said: “This project will offer 366 apartments exclusively for renters, with approximately 40 per cent to be made available at a discounted rent through a subsidy from the Queensland Government. “This will enable city-based workers to access affordable rental housing closer to their jobs and provide a better lifestyle for their families. “The first residents are expected to be moving into Brunswick & Co. in 2024, with the development to offer easy access to public transport, co-working offices, shared dining areas and a fitness centre.”

A significant period of expansion for The Veriu Group An innovator in apartment hotel and micro-apartment space, The Veriu Group has announced the launch of four new Victorian properties. Two new apartment hotels, Punthill Essendon North and Punthill Geelong, are set to open in August 2022 and May 2024 respectively. Also on the horizon are the Group’s first two Victorian Veriu Hotels, Veriu Collingwood and Veriu Queen Victoria Market, both expected to open later this year. The construction of a further five properties expected to commence in the second half of 2022 will boost the Group’s overall portfolio to almost 1,320 rooms and apartments operating or in development across 20 sites under the combined Veriu Hotels & Suites and Punthill Apartment Hotels brands.

‘Adult only’ luxury beachfront hotel proposed for Gold Coast

Brunswick & Co

ResortNews | May 2022

A recent proposal lodged with the Gold Coast City Council promises serenity at a 41-storey residential and adults-only hotel beachfront tower. The proposal for a site on Garfield Terrace has been filed by family owned KTQ Group, headed by billionaire Queensland philanthropists, Brian and Peggy Flannery. DEVELOPMENTS

The Chaussy due to settle

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

MANAGEMENT RIGHTS Gold Coast Park Breeze Luxury Apartments Lani Furlong

Southport

Miami Villas

Brett Flynn

Miami

Miami Links One and Two

Brett Flynn

Miami

The Grange Villas

Chris Feng

Capalaba

Verde Monte

Ming Kai Chan

Mount Gravatt

The Chaussy – Image Supplied

Brisbane

The sale of this sensational brand-new ‘caretaking only’ business, presented to the market by ResortBrokers is due to settle, end of May. The Chaussy comprises two architecturally designed, mid-rise buildings with a sublime rooftop with plunge pools, BBQ and seating areas, boasting city skyline views. Located in Lutwyche one of Brisbane's high demand neighbourhoods, it offers the perfect blend of city-fringe convenience and vibrant, suburban charm. Uniquely positioned opposite Prentice Park, and close to Brisbane CBD, the 68 luxuriously appointed apartments with panoramic park views were offered with a strong Body Corporate Salary and a brand new 25 year Caretaking and Letting Agreements.

Evoke & Motif sale goes unconditional

MRS

Sunshine Coast / Wide Bay / Fraser Coast Riviera Golden Beach

Delltora P/L

Golden Beach

TMR

The Plaza Central Apartments

RSG

Maroochydore

Pacific Beach Resort

C&O Taylor Management

Mooloolaba

Affina

Brett & Katie Steele

Mountain Creek

Aquarius

Joey Wang

Birtinya

Culgoa Point Resort

Noosa Blue Lakes Property Management P/L Noosa Heads

RMS

North Queensland Solarus Apartments

Jeremy Wright

South Townsville RB

MOTELS & OTHER Queensland ResortBrokers presented this exclusive and rare opportunity to acquire the permanent management rights to three premium, off the plan townhouse developments. The complexes boast a total of 126 townhouses and are all of exceptional quality, and backed by a robust net profit and up to 80 percent projected investor profile plus a brand new 25-year Caretaking and Letting Agreements.

Fishery Falls Hotel

Birch Hotel Group

Fishery Falls

Sunray Motor Inn

K. Antoine

Toowoomba

Abode 37

Karen Bradshaw Projects P/L

Emerald

Cardwell Beachfront Motel

Michelle & Lee Chapman

Cardwell

Jolly Knight Motel

Le Ho

Casula

Moruya Motel

Nick Joseph

Moruya

May Chen

Ghan

New South Wales

Nothern Territory Kulgera Roadhouse

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

Evoke & Motif – Images Supplied

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

PROPERTY

ResortNews | May 2022

Sales

Working together, working for you. This Months New Listings...

Hervey Bay QLD

ID: 8679

Caloundra QLD

ID: 9041

Luxury Beachside Complex

Convenient ‘Bulcock St’ Area

Price: $1,150,000 Nett: $208,045

Price: $1,325,000 Nett: $168,305 Contact Mark McKay 0428 865 120 markmckay@mrsales.com.au

Contact Richard O’Connell 0477 013 006 richard@mrsales.com.au

Gold Coast QLD

ID: 9052

Port Douglas QLD

Exclusive: Prestigious Permanent

Four Mile Beach Vicinity

Price: $3,804,000 Nett: $400,000

Offers Over $850,000 Nett: $133,000

Contact Phil Trimble 0418 478 966 phil@mrsales.com.au

ID: 8992

Contact Antonio Curulli 0488 030 853 tony@mrsales.com.au

www.mrsales.com.au | 1300 928 556 | info@mrsales.com.au

Your Management Rights Investing and Financing Experts Management and Letting Rights Quarterly Pulse • April 22 • Twelfth Series

Management Rights for Sale - Market Snapshot - April 2022 Data provided by The On-Site Manager website STOCK LEVELS - The total dollar value of listings has dropped this quarter Sept 2019

January 2020

June 2020

October 2020

January 2021

March 2021

June 2021

Sept 2021

January 2022

April 2022

$1,010m

$985m

$863m

$717m

$646m

$576m

$565m

$616m

$679m

$620m

739 Properties on the market

716 Properties on the market

641 Properties on the market

518 Properties on the market

500 Properties on the market

463 Properties on the market

444 Properties on the market

436 Properties on the market

481 Properties on the market

424 Properties on the market

Contributing to the value drop is the decrease of listed businesses specialising in permanent letting Sept 2019

January 2020

June 2020

October 2020

January 2021

March 2021

June 2021

Sept 2021

January 2022

April 2022

Holiday

343 Permanent

335 Permanent

283 Permanent

239 Permanent

219 Permanent

187 Permanent

186 Permanent

216 Permanent

223 Permanent

336

328

311

245

238

234

220

214

234

178

Multipliers have slightly decreased this quarter BUSINESS MULTIPLIERS (Avg) OVER $1m Purchase Price 4.1x

4.3x

4.25x

4.46x

4.35x

4.31x

4.27x

4.29x

4.39x

4.38x

The days on the market have held steady this quarter DAYS LISTED Sept 2019

DAYS LISTED January 2020

DAYS LISTED June 2020

DAYS LISTED October 2020

DAYS LISTED January 2021

DAYS LISTED March 2021

DAYS LISTED June 2021

DAYS LISTED Sept 2021

DAYS LISTED January 2022

DAYS LISTED April 2022

74 Days

105 Days

65 Days

58 Days

57 Days

45 Days

53 Days

67 Days

66 Days

Market Movers

The Holiday market in the Gold Coast and Sunshine Coast has not been able to prop up the reduction in Permanent listings this quarter. Anecdotal evidence points to a large increase in the demand of Permanent Complexes and a corresponding high sales rate, which has reduced the supply rapidly. A rise in Multipliers has taken place as well.

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1300 886 103

ƼRI\ME GSQ EY

MRJS$ƼRI\ME GSQ EY

GSQTER] ƼRI\ME WIGYVMXMIW

*MRI\ME 7IGYVMXMIW 0MQMXIH %&2 LSPHW ER %YWXVEPMER *MRERGMEP 7IVZMGIW 0MGIRGI RYQFIV ERH TVSZMHIW KIRIVEP EHZMGI SRP]

Management and Letting Rights Quarterly Pulse • April 2022 • Twelfth Series

Management Rights for Sale - Market Analysis - April 2022 Letting Pool Coverage – proportion of the total units to those within the Pool Agreement Coverage – refers to % of total agreement term available upon purchase. Total stock ($)

Total stock

Days listed

Average price

Multipliers

Gross return %

Letting pool coverage

Agreement coverage

Resort / Holiday

$381,493,826

223

$1,710,735

4.15

25%

61%

80%

Permanent

$216,601,513

178

$1,216,862

4.69

26%

39%

76%

Corporate

$7,759,000

$1,939,750

5.00

20%

64%

88%

Off The Plan

$7,765,301

108

$970,663

4.02

25%

40%

100%

Caretaking

$5,845,660

$649,518

3.75

30%

25%

89%

Retirement

$1,360,000

107

$680,000

2.24

51%

95%

90%

$620,825,300

424

$1,464,211

4.37

26%

52%

79%

Grand Total or Average

‘On the Market Analysis’ - Market Pulse

Historical Comparison of the Market Total properties on the market has hit another record low

Comparison by Agreement Type - April 22

Brisbane

$102m in Properties for Sale ($109m in Jan 2022) 83 in Properties for Sale (98 in Jan 2022)

739

716

700

641

650 600

529

550 500

501 463

450 400

62 Permanent (79 in Jan 2022) 8 Holiday (4 in Jan 2022)

484 444

436

424 Apr 2022

Standard Agreements multipliers have increased from an average 4.11x to 4.31x. Accommodation Agreements have dropped back from an average of 4.45x to 4.38x.

750

Jan 2022

$1,454,206

Sep 2021

4.38

Jun 2021

Accommodation Agreements

800

Mar 2021

$1,503,079

Jan 2021

4.31

Oct 2020

Standard Agreements

NUMBER ON THE MARKET

Jun 2020

Avg Purchase Price

Jan 2020

BUSINESS MULTIPLIERS (avg)

Sep 2019

Purchase Price

216

223

65 Days on Average Listed (76 in Jan 2022) 4.58 Average Multiplier (4.86 in Jan 2022)

311 328 283

250

64 Holiday (78 in Jan 2022) 64 Days on Average Listed (66 in Jan 2022) 4.48 Average Multiplier (4.44 in Jan 2022)

1300 886 103

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150

234 187 220

219

186 214

234

187

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178 Jan 2022

17 Permanent (30 in Jan 2022)

200

Jan 2020

89 in Properties for Sale (117 in Jan 2022)

238

247

Sep 2019

Sunshine Coast

$162m in Properties for Sale ($200m in Jan 2022)

244

Apr 2022

343

335

Sep 2021

4.91 Average Multiplier (4.61 in Jan 2022)

300

336

Jun 2021

66 Days on Average Listed (57 in Jan 2022)

350

Mar 2021

53 Holiday (51 in Jan 2022)

400

Jan 2021

61 Permanent (85 in Jan 2022)

Oct 2020

117 in Properties for Sale (138 in Jan 2022)

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

Jun 2020

Gold Coast

$157m in Properties for Sale ($186m in Jan 2022)

Airlie Beach buying a golden investment By Grantlee Kieza, Industry Reporter

Cairns-based Geoff Ellis from Premier Business Sales has a contract about to settle on the Boathouse at Airlie Beach, which has been managed by Mantra for the last decade or more. He says properties on the gateway to the Whitsunday Islands deliver much greater returns than those in more populous destinations in South East Queensland.

“There’s certainly a lot of interest in Airlie Beach management rights and as COVID gets further behind us and tourism recovers things will certainly come back.”

eyes as they were far beyond what was achievable at Airlie Beach. But the consolation, is what he calls “a far better return on your investment”.

Mr Ellis says the “six and even seven-times” earnings multiples of the Gold and Sunshine Coasts “brought tears” to his

“That’s the bottom line,” he said. “A lot of buyers are attracted to South East Queensland, but North Queensland areas

such as Airlie Beach will give investors a significantly better return on their business.” Townsville-based Des Fagg, from ResortBrokers, has been selling in Airlie Beach for eight years, and says anyone who has bought management rights in the area has made a great rate of return.

“The Boathouse is a significant sale, there are 56 lots and most are in the letting pool. Mantra don’t manage the small stuff,” Mr Ellis said.

Airlie Beach is one of the most alluring travel destinations in Australia and few places deliver as much bang for a buck in the management rights industry.

PROPERTY

ResortNews | May 2022

He sold first-time managers Paul and Francine Tuddenham the rights to the Peninsula at Airlie Beach last year for $2.35 million. “We had long discussions with Des, and he was terrific,” Mr Tuddenham said. “We realised the great potential of the property. Even though Des was acting for the vendor, he was extremely helpful to us in making sure we knew everything about the property to make our start in management rights a success.”

Management rights for the Airlie Summit Apartments sold in February last year for $1.86m and the Shingley Beach Resort went for $1 million at about the same time. Whitsunday Reflections went for $1.72m in February 2020. “The Peninsula sold on a multiple of 4.2 while the others were in the 3s,” Mr Fagg said. “Despite COVID the market is strong in Airlie Beach and I can’t keep up with the demand for properties. “The location is as beautiful as anywhere in the world and when you can pick up a luxury property with multiples in the 3 and 4s, that's a pretty good return.” At the moment Mr Fagg is marketing the Azure Sea Whitsunday Resort which offers spectacular ocean views and 30 well-appointed apartments. The management rights are on offer for $1,302,000 with a promised annual return of $325,350. Mr Fagg is also marketing the Beach Court Holiday Villas at Cannonvale, and the Coral Cove Apartments at Bowen, properties which are both in the vicinity of Airlie Beach and which promise excellent returns. Alex McCowan, a Director of Accom Valuers, says there are big sales happening in Airlie Beach and the multiples should get even better as trading improves with more international tourists. “The reason people are buying there, is that Airlie Beach is a great location that provides excellent returns,” Mr McCowan said. “Even during the most difficult times with COVID the properties did ok. They had terrible ResortNews | May 2022

The Peninsula sold on August 3, 2021, during a busy time for Mr Fagg, even though COVID had disrupted tourism and sales.

dips like everyone else when everything was locked up, but they came back and the state government actually put money into discounted flights that got things going again.

“The strength of the market right now is obviously not normal coming out of COVID, but there have been good sales recently and multiples will come back to what they were pre-COVID.

“During COVID, the Whitsundays drew people who might not have holidayed there before, and the owners are now getting those guests back every year because it is such a lovely place to visit.”

“The properties represent excellent value. I’ve sold plenty of businesses here that if they were in South East Queensland would have cost the buyer a million dollars more.

Mr McCowan said the sale of the Peninsula highlighted the strength of the Airlie Beach market and the opportunities it afforded. “The Peninsula was quite a big sale. It’s another good business, in a good spot. We valued that property, and we were looking at not just what it had done recently but what it had done through the last three years.

“From a buyer’s point of view if you’re looking to move to Queensland from the southern states, you might as will move to where you will get the best return on investment. And if you’re looking at business fundamentals, North Queensland is the best place to be.

“We’ve been collecting three years of financials right through COVID and that gives us a really good idea on how a business is performing. “Airlie hasn’t done too bad during the pandemic.”

“There are still not a lot of places for sale and my recommendation to managers over the last couple of years has been not to go to market yet. That might sound odd coming from a broker but it’s my job to do the right thing by my clients.

Geoff Ellis said that through the COVID years the sale of management rights in Airlie Beach had slowed, as it had done in many other areas relying on tourism. But businesses were bouncing back.

“I told them ‘if you’re looking to get a fair price don’t go to market now. I actively discouraged people from going to market with the aim of getting a better price when conditions improved.” Mr Ellis said he advised clients not to become a victim of COVID twice. “Some management rights businesses have been under the pump with COVID, and some owners wanted to give it away at the worst possible time,” he said “My advice was ‘look, if your health is good and you can do another 12 months stay, because I don’t want you to go to market and get a million dollars less than what your business is worth’. Thankfully tourism is opening up again now and buyers have the chance to obtain a property at a fair value which will give them excellent returns on their investment and in a beautiful location as well.”

QLD - NSW - VIC - WA

Mr Ellis has been a business broker for over 20 years, with more than half of that time selling in Airlie Beach. “There hasn’t been a lot of people willing to sell during COVID because they know they are not going to get a fair price,” he said. PROPERTY

YOUR PARTNERS IN SUCCESS MANAGEMENT RIGHTS OPPORTUNITIES IN NORTH QUEENSLAND Consider the advantages - better multipliers, better yields & better choices

PALM COVE – FREEHOLD BEACHFRONT

Great Opportunity, Mainly Freehold, Holiday Property. Beachfront Apartment Hotel Palm Cove. Good mix of quality Studio & 1 bedroom apartments.

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (1 brm):

34/34 (29 owned by seller) 25/23 years $62,000 $300,000 (Projected) $300,000 (1 brm & off ice)

Great potential to fully Freehold or Onsell 29 Units.

SMITHFIELD – TOP PERMANENT

$3,600,000

Total Price:

Stunning Permanent. Residential Gated Community Complex. Quality property. High demand rental area. Close to the University. Delightful 3 brm, 2 bath mgr Villa. Off ice & Garage, 203m2 on title. Little Covid impact and very stable rental pool.

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (3 brm):

111/95 25/20 Years $154,440 $358,000 $495,000

$2,200,000

Total Price:

CONTACT CALVIN - 0414 889 593

CONTACT ALEX - 0414 835 128

CAIRNS - CBD HOLIDAY PROPERTY

YORKEYS BEACH – PERFECT HOLIDAY STARTER

Urgent Sale on the Cairns CBD fringe. Excellent 2 bedroom well presented apartments. Great $101,000 salary & 22 year on the

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (3 brm):

41/11 25/22 Years $101,000 $149,727 $350,000

Agreements. Top growth ability & very well priced at 3.6 multiplier.

$899,000

Total Price:

Very tidy Beachfront holiday property. For you to live the dream. Well presented 1 bedroom & Studio Apartments. Large 3 bedroom manager’s Apt with Off ice & Reception on title. Perfect Starter and great lifestyle for those new to the industry.

CONTACT CALVIN - 0414 889 593

Contact: Mobile: Email:

Calvin Bailey LREA 0414 889 593 calvin@cbmr.com.au

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (3 brm):

18/11 25/22 years $39,000 $79,000 $399,000

Total Price:

CONTACT ALEX - 0414 835 128

Postal Address: PO Box 266 Palm Cove, QLD, 4879

Contact: Mobile: Email:

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

Australian Resident Accommodation Managers’ Association Member

www.calvinbaileymanagementrights.com.au All information/figures are supplied by the seller and are subject to check by intending purchasers

$649,000

PARADISE ON QUEENSLAND’S SOUTHERN GREAT BARRIER REEF

Yeppoon Lagoon

Great Keppel Island

CORAL INN BOUTIQUE HOTEL, YEPPOON Yeppoon is located on the Capricorn Coast which forms part of Queensland’s fabulous Southern Great Barrier Reef precinct and is the Coast’s major town. Yeppoon has retained its village style appeal yet offers a variety of wonderful restaurants, accommodation and shops. Yeppoon’s Rosslyn Bay is a major harbour and departure point for many of the Coast’s fabulous islands which include Great Keppel arguably one of the best islands in Queensland and which is accessible by a 30 minute Ferry transfer from the mainland. The Capricorn Coast is exciting, diverse and breathtakingly beautiful. Visitors and locals alike enjoy a wonderful climate of 300+ days of sunshine a year which is a major plus for tourism. Run under the same ownership for 12 years this is an extremely rare opportunity to acquire a very well established and successful freehold going concern boutique award winning 12 room Hotel business in central Yeppoon. A major plus is the sale includes a stand alone substantial and extremely well presented 4 bedroom Managers residence. The owners have taken great pride over their years of ownership to develop the Hotel and business into something very special, being intimate in scale and design and creating the ambience of being a guest in a private home rather than just being a guest in a Hotel. •

Rated 4.5 star by the Queensland Tourism Industry Council in the category of Hosted Accommodation and fully Eco certified

•

Great facilities including Saltwater swimming pool and Bar in tropical garden surrounds

•

Fabulous very comfortable Air-Conditioned Hotel rooms with a contemporary vibe and modern design décor

•

Strong trading history and forward bookings

•

This Award winning Hotel enjoys a very special niche in Yeppoon’s accommodation sector

•

Net Profit $328,743

The freehold going concern of Coral Inn Boutique Hotel (including stand alone residence) is offered for sale by negotiation with Exclusive Agents Ward Commercial Hotels. Please note inspections are strictly by appointment. Exclusive Agent: Peter Ward, Director 0412 001 700 sales@wardcommercial.com

Ward Commercial Hotels

OVER 1,000

LISTINGS FROM ALL THE LEADING BROKERS ON THE ONE WEBSITE

Ward Commercial

“A website for buyers/sellers such as Accom Properties has been well overdue for years. Buyers don’t want to view multiple websites to see what is for sale in a particular region or town, they want all properties on the market with relevant criteria at their fingertips now and you’ve been able to provide a platform which is fantastic. Well done.” – Brett Salter, National Accommodation Manager, ALH Group Limited

www.accomproperties.com.au

Management Rights

Are the experts always right? - An expert’s opinion Now all the restrictions are lifted for Covid what does this mean for the Management Rights industry? All it means is we can do our jobs easier and with less restrictions. What a relief! In other news, banks are taking their time. I had a chat with a leading banker recently at an industry forum and his opinion was… “Why don’t you guys have a 60-day finance clause (as does all other commercial transactions) and let it be from that date, as all the date restrictions you put in are irrelevant for us. All we want is a sign off from the lawyer and accountant valuers etc with enough time for us to do our thing (3 weeks).

This would eliminate all the extensions that seem to plague our industry.” It is, in my humble opinion, irrelevant what the industry specialist suggests, as the banks will tell them what they want. They have the gold, so they make the rules! Another thing that has now snuck in is claw back on all MR Contracts. I have mixed views on this, but the golden rule in MR has always been you can only sell what you own. So, to this extent we should have claw back. What then happens if the vendor gains a rental? Should the buyer pay more? Historically this has not happened. The problem with this, is that the bank may then have to loan more than they originally thought they were going to.

On other matters, there are still certain lawyers charging outrageous costs for BC work for vendors. The vast majority of lawyers charge reasonable fees, but a small group are gouging vendors. Make sure you talk to your BC managers and ensure they get three quotes. Next is the issue of no qualifications required for BC managers. Everyone else in MR must have some sort of qualification. Why do they not have to? This means anyone can become a BC manager tomorrow. Then there is the BC committee. Again, no expertise required (not even the BCC course) and they control a BC budget that can run into the millions.

Last but not least, be it I am not a lawyer, accountant or valuer (I only have a business degree), but I don’t understand the requirement for two schemes. I have a huge problem with the unfairness of a 10-year scheme in so many ways. I am told by the experts that it is what it is! There are plenty of buyers, not enough listings, multipliers are still high (some would say too high) so all the same. If you are a seller now is a great time as interest rates are going to go up so with that multipliers are bound to start coming down. By Robert Collins, Director of Sales, Management Rights, RAAS Property Group

Brisbane & Gold Coast Properties For Sale REDLAND

BAYSIDE COMPLEX IN CLEVELAND Outstanding opportunity! Easy managed complex with BC salary of $110000K and within walking distance to beautiful Cleveland CBD. Top up will be looked at if needed. Price is reasonably negotiable. 8 outside rentals not included but will be fairly negotiated $9,849 income. Weekly rents from $375 to $425, never has vacancy.

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

GOLD COAST HOLIDAY COMPLEX IN COOLANGATTA No office hours required! Come and live in the beautiful Rainbow Bay with a short 2 minute walk to the beach (one block) from your very own 2 bedroom/2 bathroom apartment. This successful and “steady” complex has an income of just over $124K. Repeat guests and the biggest 3 months they have ever had, it seems everyone wants to stay in Rainbow Bay. Walking distance to cafes, Coolangatta and Point danger. Rainbow Bay has a sense of community and all managers get together and help each other out.

Contact: Kerrie Lush, kerrie@raas.com.au, 0416 084 693

GROW YOUR BUSINESS • INCREASE YOUR INCOME • PROTECT YOUR INVESTMENT

07 5593 0007 raasrights.com.au

Images Courtesy of Peninsula at Airlie Beach – Photography: J. D. Bush

Peninsula wins rave reviews for MR first timers By Grantlee Kieza, Industry Reporter

Paul and Francine Tuddenham couldn’t have chosen a more idyllic location for their first foray into management rights. Paul spoke to Grantlee Kieza from the couple’s 5-star resort apartment complex, Peninsula at Airlie Beach. What experience did you have in management rights before taking on the Peninsula? None. Fran’s background was working at Westpac for 20 years, and I had a mortgage broking business. Before that my background was in management accounting and I worked for some large firms. In 1999 I was elected as a councillor for

Wingecarribee Shire Council, taking in the Bowral, Mittagong and Moss Vale areas south of Sydney. I was on the council for 13 years until we decided to make our home in Queensland.

We planned to retire after renovating a house at Robina, which had a granny flat. However, we changed our minds because it seemed the perfect time to move into management rights instead.

So how did you know about management rights?

What was the process like?

The first place we stayed on the Gold Coast, when we moved to Queensland was a gated community called Botanical Park at Elenora. I became intrigued by the industry after talking to the managers there, and they enthusiastically told me, “you have to get into a business like this, it’s great.” I began to investigate management rights, but we were not in a position to go any further at that point. We then moved to Emerald Lagoon at Robina and talking to those managers piqued my interest once again, but again the timing wasn’t quite right.

Initially, Fran wasn't keen because she didn't know much about management rights, but we started to look around for a property. It was when we travelled up to Airlie Beach for a break that Fran fell in love with the area.

You certainly picked a stunning location. It was while we were staying here that I noticed this property was for sale and I rang the broker. Fran had a lot of conditions on what she was looking for, and this place ticked all the boxes. It was more a fear of the unknown that was holding us back. We saw the potential of this property, and we

PROFILE

believed we could do a lot with it. After a bit of soul searching, we decided to have a go. We took over on July 1, last year, so we’ve been here nearly 12 months.

What was it about the Peninsula that got you hooked? The location was the prominent thing, it’s stunning, and literally right on the water. It's a 5-star resort too, and we love the size of the units. At the first viewing we realised the resort hadn't been as loved as it could have been. But after having a long talk with Des Fagg from ResortBrokers, and advice from others in the industry, we believed we had the potential to build on it. We were both happy to move north. Fran hates the heat with a passion, but she got through her first summer unscathed and we love living here.

ResortNews | May 2022

Francine and Paul Tuddenham

You can sit on the balcony with a glass of wine and watch the sea turtles swimming past. I don't know many other places where you can do that What sort of accommodation do you have? The apartments are spread across two buildings and every room has a view of the marina or the Coral Sea. The two-, three- and four-bedroom units are all exceptionally large with king beds. There are 42 units in total, and we have 17 to 18 units in the rental pool. The water is the biggest attraction, but another great factor is that we are very close to town. We don't have a restaurant on-site but we're

less than a five-minute walk to cafes for breakfast and lunch, or 10 minutes to nice restaurants for dinner. Guests enjoy their morning walk to breakfast because it's a beautiful oceanside stroll.

10% discount for Resort News readers when booked direct

Fran has built up some great relationships with the tour operators and we are setting up our web page so guests can book through our website before they arrive. We’re also upgrading the Foxtel system so guests can book from their rooms. Here, you can sit on the balcony with a glass of wine and watch the sea turtles swimming past. I don't know many other places where you can do that.

144 Shingley Drive, Airlie Beach Qld 4802 (07) 4964 1600 info@peninsulaairliebeach.com www.peninsulaairliebeach.com

ResortNews | May 2022

PROFILE

Who are your guests? We specifically target a market that doesn't include schoolies, bucks, or hens parties. We make sure that we tell guests when they check in about our ‘no noise policy’ after 10.30pm because we have residents living on-site. We've gone for a different market, and it's worked well. If people want to have parties, there are other properties where they can do that. We’re more interested in honeymooners, couples, or families coming for a relaxing holiday. We have had wedding anniversaries and birthday celebrations and that’s great, but they don't involve waking people up late at night. There are 15 owners living permanently on-site, they want

to have their own peace and quiet and they're entitled to it.

You had to do a lot of work when you ﬁrst moved in. What was the biggest job? Learning the business. We really had to learn management rights on the job. We had to learn the booking system and to get on top of it took a fair bit of time. Then there was COVID. That was a terrible way to start, we had more than 400 cancellations in the first six months of being here. It was hard because they were on the books when we took over and then we had to tell the investors these guests weren't going

to show up, it affected a lot of things, especially cash flow.

expectations and establish a good working relationship with them.

We also had to learn how to work with the body corporate and understand their requirements,

Two things we really focus on is our customer service and the cleanliness of the property.

by Austr Australia Post Print Registered Regis

PROFILES ARE A FANTASTIC OPPORTUNITY TO: • Impress your unit owners • Receive recognition for your hard work (and that of your staff) • Lift the awareness of your property within the industry • Help build relationships with other managers • Lift the profile of your property for when you are ready to sell

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Profile Lanai Riv e Apartm rside ents Person of Kristine Interest Lehman n

WHO WRITES THE ARTICLE? The article will be written by one of our qualified journalists.

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PROFILE

ResortNews | May 2022

We have exceptional cleaners who take a great deal of pride in whatever they do. If you get those things right most of the other things fall into place.

What advice would you give to someone coming into management rights?

After almost a year in management rights, how are things tracking?

First, get a solicitor who understands management rights and is experienced in that field. We were very fortunate we had Frank Higginson.

We set ourselves a five-year goal and we are on track for where we hoped to be after our first 12 months. Fran is an absolute natural at this job. She is exceptional with guest services and customer relations because of her background in the bank and she's getting stunning reviews.

ResortNews | May 2022

You need an accountant who will help you understand the cash flow and the anomalies of it. You've got to have someone you can trust from a broker's viewpoint, too. Joining ARAMA is very important and by attending their functions and seminars they will guide you and help you as much as they can.

You can talk to other operators, as well. Most people we've spoken to have been very helpful. Even though they’re competitors they still want to help everyone

PROFILE

in the industry, and we will do the same for other newcomers. We're all in the one boat together. My message is don't be afraid to ask for help.

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BUILDING MAINTENANCE SERVICES

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ResortNews | May August 2022 2021

Look for the sign of an Industry Specialist PREFERRED SUPPLIER DIRECTORY

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FINANCE

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fresh finance... Mike Phipps

0418 765 257

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

0448 813 090

mike@mikephippsfinance.com.au

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

ENERGY MANAGEMENT CONSULTANTS & SERVICES

Cameron Wicking

0477 776 859

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Red

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info@kudosfurniture.com.au

www.pcsfinance.com.au

FURNITURE

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A U S T R A L I A

Management Rights Finance Specialists

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

W I D E

nick@redtenfinance.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

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

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

PREFERRED SUPPLIER DIRECTORY

Look for the sign of an Industry Specialist ResortNews | May 2022

- SUNSHINE COAST MAIL BOXES

The Management Rights Specialists

Quality Aust Products to meet All Building & Government Standards

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

SUNSHINE COAST ®

MANAGEMENT RIGHTS AGENTS

Matt Campbell 0410 343 219 Barry Davies 0438 554 995

contact@managementrights.com

We’ve got you covered 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

AFSLN 246986 ABN 31 009 179 640

www.managementrights.com

Property Bridge MANAGEMENT RIGHTS

PAINTERS & DECORATORS

RESORTS

 Discreet Silent Listings  Free Market Appraisals

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

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

www.rcabusinessbrokers.com.au Specialising in Motel & Resort Sales Qld wide

info@propertybridge.com.au propertybridge.com.au …When you need us most! MGA was founded in 1975 and has since opened up 38 offices around Australia, offering Insurance products for:

1800 888 518

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

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SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS

1800 111 622

INTERNET SERVICES

WWW.STRATACORP.COM

Think Management Rights

• Grounds Maintenance & Landscaping • Signage & Branding

Wayne & Linda Stoll 0452 181 505

wayne@thinkmanagementrights.com.au

• Electrical Services

Narelle Filmer 0459 229 744

WORLD CLASS INTERNET ACROSS QUEENSLAND RESORTS

• Painting

• Audio Visual

narelle@thinkmanagementrights.com.au

www.thinkmanagementrights.com.au

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

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YOUR PARTNERS IN SUCCESS

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Call 1800 620 911 or 07 3718 1600 programmed.com.au

LINEN &/OR LINEN GOODS

Calvin Bailey LREA

0414 889 593 calvin@cbmr.com.au

info@mainlinen.com ResortNews | May August 2022 2021

0414 835 128 alex@cbmr.com.au

CALVINBAILEYMANAGEMENTRIGHTS.COM.AU

Australia’s Leading Hotel Bedding Suppliers

07 5437 8544

Alex Barker-Re LREA

Look for the sign of an Industry Specialist...

Supporting and servicing the needs of both buyers and sellers of management rights throughout Tropical North Queensland

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

PO Box 1037 Gordonvale 4865 • P 07 4056 6366

info@resortsales.com • www.resortsales.com

PREFERRED SUPPLIER DIRECTORY

PLUMBERS & GAS FITTERS

- SUNSHINE COAST -

Look for the sign of an Industry Specialist

LOOKING FOR DRAIN PLUMBING & GAS ? BLOCKED

SPECIALIST

• • •

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24/7 EMERGENCY RESPONSE

SHEET METAL

OUR

SOLICITORS

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.

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Ph 07 5593 4183

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M 0413 432 294 adrian@sheetmetalimprovements.com.au

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

1300 HIGGINS www.higgins.com.au

www.accomnews.com.au/business-directory

MORE THAN

SERVICES

• MAINTENANCE PAINTING SOLUTIONS

Whatever, Wherever, Whenever!

SIGNS

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

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Buying or Selling Renewing or Reviewing Negotiation & Dispute Resolution We are recognised experts in our field, always outcome focused.

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

ASBESTOS REMOVAL QUEENSLAND WIDE

FREE CALL

1800 766 366

FREE QUOTES &ADVICE

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New Agreements or Variations

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Look for the sign of an Industry Specialist...

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

PREFERRED SUPPLIER DIRECTORY

Leading Sunshine Coast Law Firm

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

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

ResortNews | May 2022

SWIMMING POOL SUPPLIES/REPAIRS

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Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588 Level 7, Wyndham Corporate Centre, 1 Corporate Court, Bundall Q 4217 Email: paul.jones@spglawyers.com.au

Call Paul Jones on 5570 9306

CERVETTO COURTICE L AW Y E R S QUEENSLAND

Management Rights Sales & Purchases Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: cervettocourtice@outlook.com

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

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

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

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admin@accomvaluers.com.au

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

RTO Number 31303

TV & VIDEO HIRE/REPAIRS

Appliance Rental Specialists

Personal Service. Trusted Advice.

Gold Coast: (07) 5592 3344

Look for the sign of an Industry Specialist

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Sunshine Coast: (07) 5447 1210

Look for the sign of an Industry Specialist

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

Save time... Do it Online! Whatever, Wherever, Whenever!

www.accomnews.com.au/business-directory ResortNews | May August 2022 2021

PREFERRED SUPPLIER DIRECTORY

OVER 1,000

LISTINGS FROM ALL THE LEADING BROKERS ON THE ONE WEBSITE

Ward Commercial

Resort News, May 2022

Articles inside

Development News

Peninsula wins rave reviews for MR fi rst timers

Tourism Report

Queensland Tourism Industry Council update

Revenue diversifi cation: Holiday parks are perfectly located for exquisite events

Motel Market

SCA Report

BCCM Report

Good Governance

By All Accounts

Legal Ease

Building Relationships

Person of Interest – Ben Orton: From pool builder to making a splash with prestige properties