Resort News, June 2022 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 310 | June 2022 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Proﬁle Bali beauty brought to Bila Vista Special Report Calls to licence body corporate managers management rights • hotels • motels • resorts • holiday parks • time share • hosted SPECIALISTS IN ACCOMMODATION FURNITURE FF&E AND JOINERY Custom made furniture including packages

CEO, Dennis Clark

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

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

Advertising Conditions The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement. The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material.

Inside our June issue FRONT DESK Editor’s Note: Content is king but to edit is wise ......................................05

INDUSTRY Special Report: Calls to licence body corporate managers .................... 06 ARAMA Report ...........................................................................08

Disclaimer Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein. Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law. Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties. © 2022 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the written consent of the publisher.

State Report ................................................................................ 10 BCCM Report ...............................................................................11 SCA Report .................................................................................. 12

Person of Interest - Pat Bell: From beneath the waves to high-rise returns ............... 14

MANAGEMENT Q&A: Working from home & businesses-in-strata arrangements.............................................................................. 16 Interveiw – Jim Li: From management rights to taming the dragon .......... 18 By All Accounts ..........................................................................20 Motel Market ............................................................................... 21 Thinking MR.................................................................................22

Legal Ease.....................................................................................23 Good Governance .....................................................................24 Software Solutions....................................................................25

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

Building Relationships ............................................................28

TOURISM Tourism Report ...........................................................................29

EDITOR

Mandy Clarke editor@accomnews.com.au

INDUSTRY REPORTERS DESIGN & PRODUCTION ADVERTISING SUBSCRIPTIONS

Grantlee Kieza Richard McGill

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

Events.............................................................................................32 ARAMA Industry Events Calendar .....................................35

DEVELOPMENTS

CONTRIBUTORS

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

Trevor Rawnsley, Col Myers, BCCM Commissioner, Kristi Kinast, Lel Parnis, Andrew Morgan, Mike Phipps, Peter George, Lynda Kypriadakis and Sylvia Johnston.

PROPERTY

AccomProperties Sales Report ...........................................38 Agent Profiles..............................................................................39

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!

EVENTS & APPOINTMENTS

PROFILE Bila Vista: Bali beauty brought to Bila Vista ....................42

PREFERRED SUPPLIERS Preferred Supplied Directory ................................................46 FRONT DESK

39 ResortNews | June 2022

Welcome to the June edition of Resort News. Yes, I made it back from Las Vegas, and unfortunately COVID didn’t stay in Vegas. I survived the ‘spicy cough’, with an investment of three COVID jabs and a ﬂu shot, for me it wasn’t so spicy and to be honest felt more like a (well earned) hangover.

it’s all in the editing so it’s wise to look between the lines.

Mandy Clarke, Editor editor@accomnews.com.au

Talk about hangovers, I joined many of you to celebrate ARAMA’s 30 years. A frolicking fun filled night was had in the Gold Coast, for the Resort News team it was a chance to get out from behind keyboards and phones to embrace a warm hello. I was able to thank many of our contributors in person,

those who have diligently provided interesting and educational MLR content for many years. After all, content is king, and I’ve said this before, but words are everything and wield immense power. In our current climate, it’s the norm to send out negative soundbites and twist words to suit any agenda or raise any profile, but readers beware because

Today, more people have a voice than ever before, you just need to click on the comments section of any mainstream article or social media post to prove this point. Many do not edit before voicing opinions, perhaps they don’t have the skill, or just don’t care. There is an uptake in ‘keyboard warriors’ using hurtful or controversial words and they need to take time to pause and edit. Apart from being (at best) unkind (at worst) bullying, words can also be litigious and cost you a lot more than respect. So “authors beware” in the words of our legal contributor Peter George from Short Punch & Greatorix Lawyers. In his column this month he reveals the impact of defamation in bodies corporate and highlights how loose words could cost you many thousands of dollars.

NUMBER

In the meantime, Resort News aims to provide industry news that is free of negative sound bites.

EDITOR'S NOTE

Content is king but to edit is wise This month, you will find regular contributor, Andrew Morgan’s tips for selling motels, while Chris Irons answers timely questions about working from home in strata. Also, get to know Pat Bell, our person of interest and read some wonderful stories from onsite managers Warren and Malisa Horwood at Bila Vista as well as Jim Li, an ex-onsite manager from a residential complex in Brisbane whose extraordinary career change is set to capture your attention! Enjoy this issue of Resort News as we head into another busy month for ARAMA’s social calendar. And, hey, don’t forget to come and say hello to me at the 80 Twenty Hotel Conferences, which will be held in the Gold Coast on June 14 and in Brisbane on June 16. Cheers, Mandy.

OUR SERVICES Furniture FF&E design concepts

IN HOTEL FIT OUTS

3D Rendering & Furniture Overlays Custom furniture and joinery manufacture Turnkey packages

SPECIALISING IN FURNITURE FOR HOTELS, MOTELS, SERVICED APARTMENTS, RESORTS AND REFURBISHMENTS.

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 | June 2022

info@Hotelinteriors.com.au

1300 876 055

FRONT DESK

0420 257 022

SPECIAL REPORT

Calls to licence body corporate managers

By Grantlee Kieza, Industry Reporter

Industry leaders in strata management are calling for stricter requirements for body corporate managers in Queensland. Unlike other states, body corporate managers do not require licensing or qualifications in Queensland, even though they may be in charge of a scheme’s funds totalling millions of dollars. Strata Community Association (SCA) Queensland President Kristi Kinast told Resort News that it was “clearly unacceptable” that “you can be a builder or baker on Friday and a body corporate manager on Monday.” “It is well past time for body corporate managers to have compulsory ethical and professional standards to protect consumers from inappropriate conduct,” Ms Kinast said. “Billions of dollars are under management in an industry that is totally unregulated.

“SCA (Qld) offers high educational standards and has a professional standards process, but we do not have total coverage of the industry and membership with us is voluntary. We have no recourse against non-members. “A regulatory barrier to being a body corporate manager must be created – this is essential to consumer protection.” Ms Kinast said anyone could get a free ABN online and call themselves a body corporate manager with no regard for professionalism or ethics.

typically includes meeting management, managing the financial affairs of a body corporate, negotiating and renewing contracts and agreements and arranging regular maintenance. In Queensland there is no government-controlled licensing or registration requirement for body corporate managers. However, SCA (Qld) members are required to fulfil eligibility criteria to join and have ongoing requirements to maintain their membership. Despite this, body corporate managers can still enter the industry with no specific qualifications.

“This is frightening,” she said, “considering body corporate managers manage billions of dollars of other people’s money across the state.”

Todd Garsden, a partner at Mahoneys lawyers, told Resort News: “There is plenty of training out there but no requirement to take that training, and they are not necessary qualifications or minimum standards.

The SCA describes body corporate or strata managers as professionals “who assist a body corporate in administering their scheme.” The body corporate committee engages a manager on a contract basis, defining the services included in the Standard Administration. Their work

“So effectively the position of body corporate manager is completely unregulated. “The SCA is pushing quite hard to actually require licensing

INDUSTRY

Todd Garsden, partner, Mahoneys lawyers

to a minimum standard and that would require training to receive those qualifications. The intent is to make licensing a requirement for body corporate managers in Queensland rather than an option. “Obviously there have been some issues in the past with managers who have run off with body corporate funds. And we are talking about huge amounts of money. “Some managers out there have very little experience in body corporate management and just see it as an add-on to an existing business.” ResortNews | June 2022

Ron McDonald, a Principal Media Officer with Queensland’s Department of Justice, told Resort News that while not required to be licensed in Queensland, a body corporate manager must comply with the code of conduct for body corporate managers and caretaking service contractors, which is automatically included in their terms of engagement. Mr McDonald said: “Under the code of conduct, a body corporate manager must have a good knowledge and understanding of the Body Corporate and Community Management Act 1997 and the code that applies to their functions; act honestly, fairly and professionally in doing their job; act in the best interests of the body corporate (if lawful to do so); not be fraudulent or misleading; not unfairly influence the outcome of a committee election; and keep records as required by the Act.” But that “good knowledge” is open to interpretation, according to Todd Garsden. “And even though that code applies to someone who is a body corporate manager, what are the consequences of breaching it?” Mr Garsden asked. “Nothing. “You can have your agreement terminated or you can be forced to sell it to someone else, but that's it. “There are professional companies specialising in body corporate management but there can be serious issues when someone inexperienced takes on the role. “You and I could turn around tomorrow and say we're body corporate managers and start getting clients, but really we might have no idea about how to run that type of business. “When it comes to the actual management of funds and decision-making over large sums of money, that aspect needs regulation and oversight just as it does in a real estate office. “Whether that's done through a licensing system or something else it would make sense. There’s not much argument against licensing for body corporate managers and a lot of argument for it. ResortNews | June 2022

“It would be a real safeguard for the industry.” ARAMA CEO Trevor Rawnsley said all practising ARAMA members were required to hold a real estate license. “There are consequences if any of our guys break laws because they could lose their license and if they lose their license they could lose their business, which could run into millions of dollars,” he said. “But for a lot of unlicensed body corporate managers there are no consequences for poor performance. “The SCA educates body corporate managers but there is nothing quite like compulsion to ensure that the industry is properly regulated.” Chris Irons, the SCA (Qld) Senior Vice President, was Queensland’s Commissioner for Body Corporate and Community Management for five years. He said that every strata manager he had spoken to would be "very comfortable” if the industry was regulated. “It always depends on what that licensing would look like,” Mr Irons said, “and what you are actually hoping to achieve. “Speaking from my personal experience one of the main things that should happen is that there has to be some form of continuing professional development because strata laws change all the time and you have to have a strata manager who is up to speed with that. “An interesting point to make, though, is that just because you regulate something doesn't automatically mean everything is magically better. The real estate industry must be one of the most heavily regulated industries in Queensland if not the world and yet real estate agents frequently find themselves in the news for something going wrong somewhere. “The other point that everyone needs to remember is that regulation costs money. The government has to enforce it, the managers have to spend money to achieve the basic minimum, and then the cost must be passed on to someone. “That someone will be the unit owners.”

Col Myers, a principal of legal firm Small Myers Hughes, told Resort News: “I think it's a horses for courses issue.

things being done to a standard.

“If you're talking about some of the big inner-city complexes, the high-rise towers with quite sophisticated systems with lifts and fire rating issues, I can see a reasonable argument for someone taking over the management of those needing higher qualifications than someone doing caretaking in a suburban townhouse complex.

“Whatever form that recognition of skills takes I’m in support of that for any industry.”

“The argument from managers is that even though it is their duty to look after those things they can engage specialist consultants to do that sort of work and pay for it out of their costs. “That's probably what's happening a lot these days. “Being a body corporate manager on some of the big inner city buildings requires a higher level of knowledge like running a facilities management business. “These days a lot of facilities managers look after big commercial properties in the cities.

“You have to be qualified and competent to do that properly.

But Grant Mifsud, a partner with Archers, The Strata Professionals, says he’s under no illusion that regulation or licensing would fix “problems that are reported from time to time” with body corporate managers. “In any industry you have good and bad operators,” Mr Mifsud said. “There is licensing among real estate agents, accountants and solicitors, but bad operators still come along from time to time. “Archers, The Strata Professionals agree that licensing or regulating body corporate managers would be a good tool to improve the industry and we support that by voluntarily getting the qualifications required by the SCA Qld.

“Body corporate managers in big complexes need to lift their qualifications to be up there with the work that those facilities managers do.” Lynda Kypriadakis, the Managing Director of the Diverse Group Of Companies & DPX Projects, says any specialist consultant selling services should be competent, and those same rules should apply to body corporate managers, and especially building managers and caretakers. “There should be a form of accreditation in recognition of skills for both body corporate managers and building managers,” Ms Kypriadakis said. “I actually think there is more vulnerability around regulatory compliance with an unqualified building manager than there is with an unqualified strata manager. “The caretaker and facilities manager or building manager needs a qualification because they're coordinating and arranging maintenance of essential services infrastructure that is subject to over 100 Acts and regulations that mandate

INDUSTRY

Grant Mifsud, partner, Archers, The Strata Professionals

“But we do not necessarily have the opinion that it’s going to fix everything. “Education is the key here, and look, with any goods or service that you purchase, you should be doing some background checks. “If the price is too good to be true, it usually is. That applies when you’re looking to appoint a body corporate manager. “Some opportunists see the role as a chance to make money because the entry barriers to the business are minimal. “And there are criminals who see being a body corporate manager as a chance to take advantage of unsuspecting unit owners who put their trust in them.”

ARAMA REPORT

Cheers for 30 years of protection for our industry What a night, and what a history ARAMA has had over the last three decades. On May 20, more than 250 people gathered at The Glasshouse inside The Island hotel at Surfers Paradise to celebrate our association's 30th birthday, and to honour all those who dug the well so that everyone in the industry could drink from it. It was May 20, 1992, when QRAMA, the Queensland Resident Accommodation Managers Association, was inaugurated on the Gold Coast. The association later became ARAMA, when the name “Queensland” was supplanted with “Australian” in line with our growth to other states and overseas. Our 30th birthday dinner was not just a celebration of the three decades spent building an industry and business model that is probably unmatched anywhere in the world, but it was also a chance to honour some of those who have been foundation stones for a business that generates $55 billion annually for the Australian economy. So it was that Mike O’Farrell, a genuine down to earth Aussie character who has done so much for the Management and Letting Rights (MLR) business in this country, was presented with Life Membership of ARAMA.

move luggage and they helped little old ladies down the steps, all that sort of thing. “Our industry continues to be attacked by those who don't believe in our model, but the model works. It really does. “ARAMA Members are the lifeblood for MLR. I’ve supported the industry for 30 years and I’ll continue to support it for the rest of my days.”

Trevor Rawnsley, CEO, ARAMA

Induction as a Life Member is regarded as ARAMA’s highest level of recognition, and it is awarded to individuals who have a lengthy and distinguished period of dedicated service, and outstanding overall contribution to ARAMA and its members. Mike joins Barry, Kim Cox, John Punch, John Gardner, John Anderson, John Mahoney, Chris Stolk, Peter McCall, Rusty Lush, Eric Van Meurs, Del Linkhorn (dec), Maria Duke (dec), Graeme Beattie (dec), and Dave Ruxton (dec) as the only people to have received the honour. “The MLR industry has been wonderful for my family,” Mike said, and this industry is all about families. “When I started it was all about mums and dads, and the kids, too. The kids helped

Mike joined the MLR industry in 1991 and has property interests in Brisbane and the Gold Coast. He established his company MLR Services in Brisbane to provide mediation services after seeing disputes between residents, contractors and body corporates escalate into financially disastrous situations. MLR also provides training for resident managers, caretaking service providers and body corporates. “The industry survives because of people like Mike,” Barry Turner told the audience at The Island. “Most of us have our life savings invested in our business and it means everything to us. Mike has been at the forefront of the fight to keep our industry strong.” The night also saw current ARAMA president Guy Elliott

Another life member Barry Turner presented Mike with the award.

And we were also graced on the night by the brilliant Kelley Rigby, a young mother of two and stepmother of three, who somehow finds time to run three businesses within the MLR realm. Kelley, our Gold Coast branch president, was superb as our MC for the birthday dinner, introducing among others John-Paul Langbroek and Ray Stevens, the state members for Surfers Paradise and Mermaid Beach. Between them, those state members have more strata letting properties in their electorates than anywhere else in the country. Both parliamentarians acknowledged the enormous contribution ARAMA has made to tourism and the Queensland economy, as well as the vital role in making the Gold Coast such a wonderful place to visit. I also would like to give a big thank you to ARAMA’s Alice Houston, our Membership Services Officer, who did such a great job organising what was a truly memorable and thoroughly enjoyable event. One of the night’s highlights saw life member John Punch explaining how the Gold Coast tourism operators and service providers initiated the system of management rights in its strata titled apartment buildings, which was quite fitting because, as Bernard Salt, the renowned demographer, pointed out, the Gold Coast has the

Barry told the big audience that with many MLR owners having their life savings invested in the industry it was men such as Mike who had helped develop the business framework to make their investments pay off handsomely.

paying tribute to all the past presidents from the last 30 years, and while it was duly noted that they were all men, we also acknowledged the incredible work being done in the industry by women such as Karen Nelson, who won a Top Award last year for mixed letting at the Lanai Apartments in Mackay.

INDUSTRY

ResortNews | June 2022

other managers, was John Gardner. He had successfully run many buildings as a management rights operator on the Gold Coast and had experienced people with both good and bad intentions. John was a very colourful businessman and never one to abandon a tough situation.

highest per capita number of self-employed entrepreneurial people in Australia. John gave young Frank Higginson a job in his legal firm 30 years ago, and Frank, now a successful lawyer himself, told the audience at The Island that he was amazed by his boss’s work ethic. “When you look at the effort required to start something as big as the MLR industry from scratch, it is just extraordinary,” Frank said. “And I now know what comes with the pressures of running your own business, looking after the needs of your clients, and looking after your family. "All at the same time John was trying to create something to protect an industry that is so important to so many. It was a humongous effort.” John was a founder of the legal firm Short Punch & Greatorix. He said QRAMA, and then ARAMA, grew out of the mushrooming development of strata titled apartments, produced for resort style use in the 1970s, with absentee and live-in unit owners having the need for both in-house management of the land and buildings plus the letting of their apartments.

rights was matched by Queensland's unique laws, the Building Units and Group Titles Act, operating since 1965, plus the real estate agents’ laws giving a restricted licensing for letting of units to onsite building managers. This all gave rise to the rights being granted, utilised and traded by people who bought the manager’s lot, and the industry prospered.” John said there were particular people who stood out as wanting security for the industry in the early days. “Dave Allen, who first came to the Gold Coast as a former Australian army lieutenant colonel, consulted with me to investigate the industry and to

buy his first management rights in the early 1970s,” he said. “In the area of body corporate management, Howard Stewart moved from being an assistant to a minister in the Queensland government to joining accountant Allen George, Peter’s father, in the running of a body corporate management company. “Both of these people were active over the years in calling on the Queensland government to have stronger more reliable laws, and out of this came the Green Paper issued by the Goss Labour government in the early 1990s. “The other person, who then stepped up for managers to form QRAMA with a group of

“John had us form the company known as the Queensland Resident Accommodation Managers Association, QRAMA, to become the representative of the industry. Today this organisation is now Australia wide and known as ARAMA." John said as an industry group, ARAMA had a constant and necessary role to responsibly, and in an alert manner, keep the industry strong and represented. “Without continued vigilance and representation in government circles, plus the education of the public and resident managers, the industry will have trouble surviving,” he said. “As a life member of ARAMA, I am very proud to have served its needs and to see that ARAMA has such an important role to continue with on its 30th birthday. “ ARAMA members, the political leaders in attendance and the many friends of the management rights industry have lots in common and we joined together in fine style in Surfers Paradise at ARAMA’s 30th Anniversary Celebration Dinner to celebrate, reminisce and to focus on the future.

“Previously, systems were tried for the leaseback of apartments to public companies, managing the building for its owner shareholders, and they failed to satisfy that need,” John said. “The giving of responsibility to the contracted, onsite business manager, working in conjunction with body corporate managers and committees, succeeded.

See you in 20 years for our 50th Anniversary Celebration Dinner!

“This formula for management

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

ResortNews | June 2022

INDUSTRY

STATE REPORT

The changing face

of management rights sales Management rights, like all industries, change and evolve over time.

These days, the stars need to align with the planets for a sale to be completed within 45 days

One of the biggest changes I have seen in recent years is the sale process itself. In the good old days, contracts were regularly prepared and settled on the basis of: •

Financial verification:14 days from contract date.

•

Legal due diligence: 21 days from contract date.

•

Finance: 28 days from contract date.

•

Body corporate approval: Prior to settlement.

•

Settlement: 45 days from contract date.

As soon as contracts were signed, the sellers would regularly go off and book that eagerly awaited European holiday, departing on the day after the due settlement date.

My, how things have changed! These days, the stars need to align with the planets for a sale to be completed within 45 days. So, what’s changed? Now, most sales take at least 10 to 12 weeks to complete. There are a number of issues that are impacting on the length of a sale that are becoming the new norm. For starters, body corporate committees are no longer rubber-stamping assignments, which is fair enough. Bodies corporate are being advised by their solicitors that they don’t have to accept whoever is brought forward by the seller and they are probing far deeper into the work history, character and finances of buyers. Police reports and business plans were never asked for in the past but are now par for the course. Committees, armed with predetermined

Col Myers, Small Myers Hughes

questions about what the buyer is going to do for them, now regularly conduct lengthy interviews with buyers and even have some buyers assessed by third party consultants. I have no problem with this process, as long as it does not become silly (like a body corporate solicitor recently wanting a buyer to justify how he could handle a 2 percent rise in interest rates, if it were to happen). Body corporate solicitors also play a much more involved role in the sale process and costs have ballooned as a consequence.

The timing problem Once sale contracts are signed, a three-step process begins for the buyer: • • •

Financial verification. Legal due diligence. Finance approval.

Once these steps are completed, the approval of the body corporate is then sought, with settlement to occur soon after. Regardless of the seller’s or the buyer’s wishes, the banks and the body corporate solicitors are ultimately determining the timing of settlements. In Queensland, assignments of management rights can be dealt with by the body corporate committee and they do not have to go to general meetings for approval.

In NSW, the approval must be given by an Owners Corporation at a general meeting. Financial verification is still usually completed within 14 to 21 days from the contract date. However, the banks are taking a lot more time to process loan applications. Valuers are engaged and they naturally take time to complete their valuations. Then the banks’ credit departments have to assess each application before an offer of finance is issued. Finance offers that used to be ready after one month are now usually taking two months. This has a cascading effect, as the process of obtaining body corporate consent for a sale is usually only sought once finance approval has been received. Sellers notify their body corporate of the sale, and it is at this stage that the body corporate appoints a solicitor to review and advise on the assignment documentation. In ideal circumstances, the body corporate consent is obtained in 30 days or less. In reality, this process is often taking over 45 days.

become a clash of self-interest. Each party must play their part. The sale is a process, and each party has a role to play to complete the process. When embarking on this process, the selling agent is the first point of contact and needs to condition both the sellers and the buyers as to what are reasonable time expectations for settlement. Sellers need to play their part by cooperating with buyers’ reasonable extension requests and being proactive in managing the sale process (particularly managing owners and committee expectations). Pressuring parties to adhere to unrealistic timeframes is counterproductive and, ultimately, can lead to the sale collapsing, leaving the seller to start the whole process all over again.

The role of the parties

Buyers likewise need to hose down their expectations as to when they can start earning income. We all understand that most buyers go for lengthy periods without income in the lead up to settlement, where it is all money out and no money in.

Throughout the sale process, there is a constant clash of competing interests. The seller, the buyer, the bank and the body corporate all engage lawyers to look after their interests. Obviously, this is fine as long as the clash of interests does not

And finally we solicitors, engaged by the buyers and sellers, also need to work cohesively, particularly in relation to satisfying the requirements of the body corporate’s solicitor. Yes, sales are taking longer but we do get there in the end.

INDUSTRY

ResortNews | June 2022

By-law enforcement is one of the tasks residents commonly attribute to caretakers. However, contrary to popular belief, the caretaker is not the ‘all-powerful’ body corporate sheriff appointed to enforce the scheme’s by-laws. In this article we will clarify the avenues available for enforcing by-laws, while highlighting who holds the reins when it comes to body corporate decision-making.

What is a contravention notice? A contravention notice is an official warning given to an owner or occupier stating that the body corporate believes they are breaching a by-law. The notice must identify the relevant by-law and how the body corporate believes it is being breached. It should also alert the person that non-compliance with the notice allows the body corporate to lodge a conciliation application through the Office of the Commissioner for Body Corporate and Community Management (BCCM) or commence proceedings in the Magistrates Court.

The role of the caretaker within a body corporate can sometimes cause confusion. As the caretaker is frequently onsite managing the scheme’s day-to-day issues, it can fuel the assumption that the scope of their responsibilities is wider than it is. contravention notice requires the person not to repeat the breach. For example, if someone has been using an area of the common property for about four months to store all the odds and ends from their garage, the body corporate would issue a continuing contravention notice. This is because the breach is ongoing and likely to continue. Alternatively, if someone has hosted a handful of disorderly parties, the body corporate would issue a future contravention notice, as they do not want the previous behaviour to be repeated.

What is the caretaker’s role in issuing a contravention notice? The caretaker has no authority to decide whether to issue a contravention notice, even if it is stipulated in their contract. A caretaker may still be obliged to perform associated tasks such as: •

Reporting potential breaches to the committee;

•

reminding residents of their responsibilities under the by-laws; or

•

sending out the contravention notice following the body corporate’s decision to issue it.

There are two types of contravention notice: •

The continuing contravention notice (BCCM Form 10).

•

The future contravention notice (BCCM Form 11).

Each notice must contain the information outlined above. The only factor distinguishing the two is that the continuing contravention notice requires the body corporate to set a timeframe for the person to rectify the issue, whereas the future ResortNews | June 2022

The extent of the caretaker’s duties to the body corporate regarding by-laws depends on the terms in their engagement. Only the body corporate can make a decision to issue a contravention notice to an owner or occupier. When we

refer to the ‘body corporate’, this does not mean ‘the caretaker’ for the scheme. Specifically, the decision to give someone a contravention notice can be made by the committee, who are authorised under the relevant legislation to make decisions on behalf of the body corporate – or lot owners in a general meeting.

Reporting potential breaches of by-laws Although caretakers do not have the authority to decide to give someone a contravention notice, they can assist the committee to enforce the by-laws. For example, they can notify the committee if they witness a contravention or are advised by another resident that a potential contravention has occurred. They can do this formally by issuing a prescribed notice (BCCM Form 1) to the committee, drawing attention to the potential breach and giving them an opportunity to issue a contravention notice. Alternatively, they can advise the committee more informally in writing, verbally or via another method, agreed to by the committee.

Reminding residents of their responsibilities under the by-laws There is often a misconception that when the committee is given a Form 1, they are required to issue a contravention notice. Importantly, the committee is not obliged to give someone a contravention notice after receiving a Form 1. The committee must exercise its own judgment and act reasonably in the circumstances when INDUSTRY

BCCM REPORT

By-laws and caretakers

deciding whether to issue a contravention notice. Instead of issuing a contravention notice, the committee may choose to enforce the by-laws by asking the caretaker to remind residents of their obligations to comply with the by-laws. For example, there may be new tenants who have just moved into the scheme and are not aware that they should not be parking on the common property. Sometimes a friendly reminder is enough to clear up any potential issues.

Sending out the contravention notice following the body corporate’s decision to issue it While a caretaker cannot make the decision to issue a contravention notice, they may be asked by the committee to send out the notice on behalf of the body corporate. It would depend on the wording of the terms of their engagement with the body corporate as to whether or not they can be asked to do it. More often however the body corporate manager is tasked with this duty. By-laws are in place to regulate the behaviour of residents, as well as their use of the common property and lots. In view of their importance, it is essential that the body corporate or owners and occupiers are under no illusions about the role of caretaker in this process. The confusion simply causes the committee and residents to expend unnecessary time and energy contending with the caretaker instead of taking appropriate action to enforce the by-laws.

SCA REPORT

The human cost of building defects The issue of poor construction quality in the high-rise building sector is one most readers of Resort News will be acutely aware of. The effects can be disastrous financially, personally and can even be potentially fatal. While facts, figures, and images of poor construction are what normally inform our discussions around these issues, the real focal point, like anything with strata, needs to be about the people. Tragically, 98 people died when Champlain Towers collapsed on the Miami beachfront last year. Many more were injured, lost their belongings, and were left without their home. Owners in Mascot Towers are facing ongoing exorbitant legal costs, loss on purchase price of 70 to 80 percent and in many instances bankruptcy. As we know, there is evidence that bankruptcy and this sort of financial stress leads to significant mental health issues. Former residents of Mascot Towers have repeatedly and publicly described their experience as “a nightmare”. The impact on people should not be underestimated: it is extreme.

QBCC will not issue a direction to rectify to a company in liquidation Kristi Kinast, President, SCA (QLD)

“I will start by stating that words and numbers on a page cannot adequately convey the human pain and suffering caused, firstly by the handful of individuals responsible for this sorry affair but also the environment within which they were allowed to operate. “Besides the financial cost, there is also a real hard to measure negative impact on time, health, relationships and ultimately quality of life in the past eight years for all concerned.” These are the real, human costs of poor-quality building that go well beyond what can be measured in dollars and cents or by construction codes. People can lose everything without doing anything wrong.

New South Wales held an enquiry into building standards a few years ago and the submissions of many residents were heartbreaking:

When Mascot and Opal Towers made headlines across the country for all the wrong reasons and shone a light on poor building practices, as a strata manager my first thought was for the affected residents. A home is supposed to be a place of sanctuary, where people feel safe and protected, yet these people have had their lives shattered through no fault of their own.

“I am now out of pocket over $550,000 (paid for by way of a mortgage) and I am still not living in my home due to major building defects, gross negligence, and unreasonable delay on the builders’ part… This whole situation has left me with medically diagnosed severe depression.

Currently, a large majority of Australians live in detached housing, so many of us don’t overly concern ourselves with the issue when we remain personally unaffected. However, this will change more rapidly than many think. Strata will dominate new developments, and this type of housing is where

a lion’s share of Queenslanders will make their home over the coming decade. We must make adjustments now to ensure all Queenslanders are safe, secure and able to trust the integrity of their home. Recent history has shown that protecting high rise building quality needs to be a primary focus in achieving this goal. Many homeowners (whether of a unit, townhouse, or detached house) often have close to their entire net worth invested into their property. It is unacceptable and untenable to leave them without appropriate insurance coverage, particularly in the present environment. Due to a variety of market factors, several construction companies in Queensland, have recently entered liquidation. SCA (Qld) has received anecdotal feedback that many apartment buildings constructed recently by some of these builders are already facing issues in seeking remediation and recourse given the QBCC will not issue a direction to rectify to a company in liquidation. Owners in these buildings now face significant financial hardship to rectify often serious defects caused through no fault of their own. This is unjust and un-Australian. Consumers have protection from defective goods and services through most sectors of the economy. If a person buys a chair

INDUSTRY

from a department store that breaks due to a defect, they can get a replacement or a refund. Most professions now mandate indemnity insurance to protect consumers from inappropriate professional conduct. There is no such recourse for what is often a person’s biggest purchase, a property in a new development of over three storeys. Apartments are increasingly the only option for many members of the Queensland community and to leave what often amounts to a huge portion of their net worth and substantial time, effort and emotional energy without any coverage is unacceptable. This needs to change. It needs to be understood that homes are an important source of stability and community for people, providing value that cannot necessarily be quantified. This should warrant appropriate consideration by policy makers. SCA (Qld) strongly supports and will continue to advocate to government for mandatory insurance for building construction above three storeys. SCA (Qld) believes that the best run strata communities engender and promote just that - a sense of community. Community can only be created in an environment where people feel safe and secure. ResortNews | June 2022

REI THE TRUSTED CLOUD PMS FOR MANAGEMENT RIGHTS

700 Apartments across 5 Resorts on the Gold Coast

“REI Cloud helps run my business better!” Adam Lill Operations Manager Coast Breakz Resort Group

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PERSON OF INTEREST

From beneath the waves to high-rise returns

Bel Air at Broadbeach – Image Supplied

By Grantlee Kieza, Industry Reporter

This month Resort News talks to Pat Bell who has risen from the ocean depths as a naval submariner to become a major player in the management rights industry. His company Stayco already controls four properties and has plans to run at least 15.

You are making big inroads into the management rights industry. What’s your background? I was a corporate banker. That’s probably a bit of a swear word for some people but I’ve had three main chapters in my life. I was a submariner in the Navy for 11-odd years and that was fascinating. I lived in Adelaide and Sydney and Perth, and obviously travelled pretty extensively. The second chapter was corporate banking at the Commonwealth Bank for another 11 years. Then I left the bank and for the next six or seven years I was involved in finance. The last few years I've gone from providing loans to specialising in investments and funds management and private equity businesses.

INDUSTRY

How did you become a submariner? When I was at school, I always wanted to join the Defence Force. My parents are ex-army people who served for over 25 years. I lived all over when I was a kid as they would change bases every couple of years. Both my dad and my stepdad were in defence. So, I went along to the recruiting one day and said I wanted to be in the Navy. I didn't even really know what a submarine was until I got on one for the first time. It was an awesome experience. The work was bloody hard, but I met friends for life. I spent a while on the HMAS Onslow which is now on display at Darling Harbour in Sydney. I've taken people there, including my two kids, to show them exactly what my life was like and how cramped the conditions were.

How did you transition from working on a submarine to working for the Commonwealth Bank? In the last couple of years before I left the Navy, I did my business degree at sea on a submarine. I was working six hours on, six hours off. In one of the six hours off I studied and exercised, and I decided to do a business degree. ResortNews | June 2022

I left the Navy, and I was working for the bank for a couple of years in country New South Wales and other places and I eventually made my way to the Gold Coast which is where I learned about management rights. I helped with some big organisations who were buying and selling management rights.

Then you decided to go out on your own? I left the bank in 2012 and went into business in finance. I live at Currumbin now. I always wanted to have a place where I could see the ocean. I’ve got a son who is almost 20 and a daughter who is almost 17. My son has just embarked on his own career at sea. He works in the Merchant Navy and travels around the Tiwi Islands delivering food in shipping containers. My daughter is a student at Miami High.

You’re a director at Finexia, an ASX listed company. Were you one of the founders? No, Finexia has been around for a number of years, and it bought out a small business that I ran with some partners. That business was called Creative Capital and we were private lenders. There were four partners, three of us working, and one silent partner who manoeuvred us into this listed business which was good for us. Finexia is a boutique financial services company. We do stockbroking, funds management and we have a licence to work with retail and wholesale investors. We provide all kinds of investment products, and we are about to launch a crypto product. We invest in infrastructure, childcare and private lending among other things. We are a wide spectrum financial services company and one of the key things we are definitely into is holiday accommodation.

and from an investment point of view it is really attractive.

You’ve gone out to the market and bought four management rights businesses and you are about to buy another four very soon? Yes, our aspiration is to build up to between 15 and 20 properties and then dispose of them either through an IPO or a trade sale. Stayco is the company that owns the buildings. We will be a holiday letting business going forward, that's where we think our future lies. Finexia has a fair percentage of Stayco. So we have a vested interest in its success.

Please tell us about your management rights buildings. We bought the first of them around September last year and we will buy the next round in July. After that we’ll continue to grow. The two holiday buildings we have now are Bel Air at Broadbeach and Ivory Palms at Noosa, along with two permanent-letting buildings in Brisbane. We are going through the due diligence now for the other four buildings. I can’t reveal their names at this stage, but as we build to at least 15 we want to have a vehicle which is large enough to get enough lift in the value and make it financially viable to sell it via an IPO or to another party. One of the advantages we have in getting the next four buildings is that we can market more effectively. We have more capital than most operators, so that allows us

to make better decisions than someone in a small business where money might be very tight.

So how do you go about running the buildings? The man who oversees these four businesses is Mike O’Farrell (who has just been made a life member of ARAMA). We have managers who have been involved in the industry for over 25 years.

You launched Stayco during COVID? It was a pretty tough time to do it but it's amazing how many good businesses you hear about that were launched during difficult times and have done well. We've paid our investors a 12 percent return since we started, and we pay them every month. Most of our investors live on that money and the investment is backed by a listed company. It’s going to continue as a good investment for them. The 12 percent is a great rate of return, a lot better than you can do at the bank. We have twice-a-year redemptions if people want to withdraw their money, but so far no one has wanted to do that because it’s such a great return. Our existing investors have all wanted to put more money in.

That fund for the first four buildings is fully subscribed now? Yes, but we are just about to launch another product which we will offer to retail investors at a target of 8 percent. We may pay even more, but we never promise more than we can deliver. It’s been a golden time for management rights over the last six months and we know things might get tougher. But we

are happy to offer the product based on our past performance. Going forward, retail investors have a different risk appetite to wholesale investors. Our bank gearing is very low, and we are never at risk of the bank coming along and asking us to change terms dramatically. Finexia is a public company, and we have other businesses and profits that support what we do. Everything we commit to say we’ll do for investors, we do it. Investors can put in as little as $10,000 so that’s attractive for a lot of people getting very little interest at the bank. Your investment model in management rights is different to many others? There are a lot of partnership deals in management rights, which are basically private people getting together. We are regulated in what we do, including regular reporting to the ASX on top of regulatory oversight from ASIC so we can’t make plans that we can’t meet. We have an Australian Financial Services Licence which is very valuable to us and allows us to invest for retail and wholesale clients, and also means we are rigorous in our reporting. We have a proper full independent audit every year. So, we are a genuine corporate business that operates under the regime of any public business or bank. That’s very different to partnerships or syndicates in management rights where you might have an arrangement with an accountant or finance broker who puts you into a business and where there are not the same protections as working with a listed company. We have much stricter requirements in how we invest and what we can offer.

Management rights is a good fit for your business? We see a future as a mini mantra with some key differences in focus and scale for the next few years. Holiday letting is such a natural business to sit inside an investment product because it provides great returns. We understand management rights ResortNews | June 2022

Ivory Palms at Noosa – Image Supplied

INDUSTRY

Q&A

Working from home & businesses-in-strata arrangements By Mandy Clake, Editor

We all know that ‘working from home’ is increasingly the norm for many of us, but what are some of the implications of working from home, and running businesses more generally, in strata? We asked Chris Irons, Director of Strata Solve, to help us out with some of the more common queries on these topics. Many of you may know Chris from his time as Commissioner for Body Corporate and Community Management. Now working in private practice, Chris delivers, through Strata Solve, solutions to clients that are focused on dispute prevention, dispute resolution and strategic advice to help resolve strata problems. He told Resort News: “Whatever things happen in society generally, they often become more pronounced and a bit trickier to deal with in strata. This is also true of working from home and businessesin-strata arrangements.” Disclaimer the following is general information only and not legal advice.

More people than ever are working from home, but in multiple dwellings what problems have you come across? In my anecdotal experience yes this is an issue. Working from home gives people more time and space to notice things with their lot and with the scheme, which in turn may compel them to follow-up (complain) where they might not have before.

Do you foresee any further issues cropping up in the future? More people working from home creates unexpected issues. For example, noise concerns might become more of an issue during the day, whereas historically, nuisance and noise has been more of an issue during the evening.

If someone wishes to work from home from their apartment or townhouse in a multiple dwelling, what is the law? It is probably more of an issue for the local council and its relevant zoning in the first instance. People working from home, especially

those having clients come to their home office, would want to check on that. Some schemes might have (or might prefer) a by-law regulating or prohibiting running a business from the strata scheme. Such by-laws may end up being invalid, depending on circumstances. So, it is difficult to give a conclusive answer.

The line can be blurred from those who do simple home admin work to those operating for instance, a nail or hair salon from their apartment. How can bodies corporate draw a line?

How does this impact bylaws?

See above. If a lot or common property is being used in a way that causes a nuisance or hazard, or the business is in breach of registered by-laws, the body corporate via its committee would be compelled to take action accordingly. It would need to have satisfactory evidence to support taking that action of course. Examples might include a log of incidents.

Following on from the above, section 180 of the Body Corporate and Community Management Act 1997 (BCCM Act) provides for what might make a by-law invalid. It is important to remember that a by-law has no effect unless it has been registered with the Titles Office. Generally speaking, a bylaw that outright prohibits a lawful activity would likely be invalid.

What sort of home businesses would require a homeowner/ renter to seek permission from the body corporate?

If a small home business (for instance retail) is set up and requires customers to come and go to the building what are the implications for bodies corporate and onsite managers?

See above. From the body corporate perspective, there might be a need to consider if the type of business impacts in a way which causes a nuisance or hazard (BCCM Act, section 167).

There are a few practicalities to consider, in addition to the issues noted above. For example, if the scheme has a secured entry, will business visitors be given access codes and how will

MANAGEMENT

ResortNews | June 2022

A lot of bodies corporate think that once they make a decision then that creates a precedent they must always follow

this impact upon security for the scheme generally? How will visitor parking and increased foot traffic generally be addressed?

If bylaws permit and permission is given for a small home business to operate could this set a precedent and open the door for a wider scope of businesses to open? A lot of bodies corporate think that once they make a decision then that creates a precedent they must always follow. Not necessarily: the body corporate should always make a decision based upon the individual facts and circumstances. Precedent doesn’t automatically apply.

What about Airbnb or pet sitting businesses in residential multiple dwelling apartment buildings, can these be stopped? Airbnb is a different story. Adjudicators in the Office of the Commissioner for Body Corporate and Community Management have consistently held that bylaws prohibiting short-term letting, such as Airbnb, are generally invalid. Pet sitting is different again and would likely be subject to by-laws about the keeping of animals in the scheme, as well as any issues of nuisance and hazard.

What are the implications for an individual business owner’s insurance and what about the building’s body corporate insurance? There are specific provisions for this depending upon the Regulation Module applicable. For example, section 207 of the Standard Module. Owners would need to make their own enquiries regarding the insurance cover they need to have. They may ResortNews | June 2022

find certain business activities would either not be covered in a strata scheme, depending on the nature of the scheme, or would come at a very high cost.

What about parking and common property being used by non-residents? For instance, a resident conducting swimming lessons in the pool or a personal trainer conducting training sessions in the gym? Common property should be accessible to all owners and occupiers (the term used to typically describe a tenant), within reasonable regulation. For things like gym or swimming sessions conducted like this for paying customers, this would suggest that the common property might only be available to those people paying for the service, to the exclusion of others. This would pose problems and the body corporate may need to investigate things such as a lease of common property to the party conducting this work, or an occupation authority. The process for this can be quite involved and depending on circumstances might require a general meeting of all owners to decide it.

If a resident or owner sets up a home business which is causing problems for other residents in the building what can be done? The very first step is to make an informal approach to the person running the business. You would be surprised how often this might make a difference, such as simply discussing with them the nature of the problem and why it is causing concern. A simple solution could be negotiated. If not, then it is open to an owner, occupier or the committee to take action, depending on the circumstances. This might

be a by-law enforcement or request to take action in relation to nuisance or hazard.

If a customer/visitor to a business in the building damages common property (for instance reverses into a boom gate) who is held responsible for the cost of repair? Typically, it is the person who causes damage who is responsible for reimbursement. Given that a body corporate will not usually have any powers in relation to a visitor or invitee, they may have to take legal advice to recover expenses against those parties. If an owner or occupier causes damage, then the body corporate can seek an adjudicator’s order in relation to that, and then recover the amount from the owner.

If permission is required for a home business what is the process bodies corporate need to go through to grant it? A body corporate must act reasonably in everything it does. So, if permission is sought, the committee (if it is authorised to make the decisions) cannot outright refuse without any reasons, for example. The committee is entitled to ask for further information (e.g., plans or similar) and can impose reasonable conditions. The committee has six weeks (and possibly a further six weeks if it needs to make more enquiries) to make a decision and if there is no answer in that period, it is deemed a refusal. If the decision has to be made by the body corporate (i.e., all owners), then the process will be subject to timeframes around general meetings (e.g., a minimum of 21 days’ notice to call the meeting).

MANAGEMENT

Chris Irons has an unmatched perspective on the strata sector, he is a thought leader for strata issues and dispute resolution. For over five years Chris was Queensland’s Commissioner for Body Corporate and Community Management, the only role of its type in the world. After working for a strata law firm, Chris is now an independent strata consultant, working under the banner of Strata Solve and helping clients to untangle their strata issues with tailored solutions. Chris brings to the table over two decades of leadership in public policy development and is a nationally accredited mediator. He is a frequent media and content contributor on strata issues. Chris is well-known for his ability to get to the heart of strata problems, focussing on cause rather than eﬀect, and also for his mantra of inform and educate. In strata, Chris firmly believes knowledge is power. Strata Solve combines Chris’s one-of-a-kind perspective, skillset and knowledge to help his clients save time, money and emotional toil. In his capacity as an independent consultant, Chris is Senior Vice-President of the Board of Strata Community Association (Qld), which is the strata peak body. Chris is also the President of Northside Connect, a notfor-profit community and legal services provider based on Brisbane’s northside. Chris is the human slave to a happily retired former racing greyhound, which has all necessary strata approvals.

INTERVIEW

INTERVIEW - JIM LI:

From management rights to taming the dragon By Grantlee Kieza, Industry Reporter

Architect Jim Li spent six years running the Lincoln Green residential complex at Eagleby, a suburb in the City of Logan, just south of Brisbane. After many early struggles, he reaped a bonanza there, and he is now hoping for a bountiful harvest running his 25-hectare dragon fruit farm. He says his first year in management rights was “hell” and his introduction to farming was even tougher. He lost 80 percent of his crop in the recent floods yet was determined to keep his pledge to support sick kids.

He lost 80 percent of his crop in the recent ﬂoods yet was determined to keep his pledge to support sick kids With help from Paul Shih, the CEO of PRET Australia (Professional Real Estate Training Pty Ltd) who taught Jim the business of management rights, and some of the PRET students, Jim still donated 2000kg of fruit in March to raise $10,000 for various charities including the Children’s Hospitals Foundation. Dragon fruit was introduced to Queensland in the 1970s and commercial production also takes place in the Northern

Territory, Western Australia and northern New South Wales. Jim knew very little about growing the fruit when he started, but just like his successful foray into management rights, he had to learn quickly. “My first year in management rights was hell,” Mr Li told Resort News, “but I eventually turned Lincoln Green into a good business. Dragon fruit farming is much tougher than I thought, but it is very interesting, and I am learning quickly.” Jim

was born in China but was raised and educated in Australia. “After I finished high school, I studied for two degrees and the second of them was in architecture,” Mr Li said. “I moved back to Shanghai to work as an architect there. But I felt it was not really the place for my family, so my wife and I decided to come back to Brisbane after a year, and we thought we would get into the business of management rights. “We contacted a local agent who was in the management rights industry, and he showed us three businesses. We chose the third one, the managed complex Lincoln Green, and we got into the business very quickly in May 2013. “But it was a nightmare.”

Jim Li farming dragon fruit. Image Supplied.

MANAGEMENT

ResortNews | June 2022

Lincoln Green had 103 units with 98 in the letting pool. “Thankfully I studied Paul Shih’s PRET course,” Mr Li said. “It was a very good course and Paul gave me the knowledge to run the business. I needed that and he gave me a really good education in management rights. “When we took over Lincoln Green there were a lot of issues, the main one being the quality of some of the tenants. In the first year I dealt with 20 or so insurance claims, I went to court six times, and I had to evict 30 tenants because of the problems they were causing. “That was the first year. “And it continued in the second year. It was hell, really hell. “But finally, we turned it into a very good business after years of struggle. “I had good luck in that I had a very good supporting committee, and the chairperson was very helpful, and the treasurer as well. They supported me making a lot of changes. I did have to make a lot of difficult decisions about getting some of the renters out because I was taking the risk of upsetting the owners. But, in the long run, the complex became a much better place because the bad tenants were replaced with good ones. And the owners eventually benefitted. “The other tenants were much happier there because they now had good neighbours. “But it was a double-edged sword because after I turned the complex into a very good place some of the owners came back to live in the property themselves, which led to a loss in numbers for the letting pool.” In 2019 Mr Li decided to sell his management rights after six years and pursue farming, having become fascinated by growing and nurturing plants at Lincoln Green. “Management rights is a very good business to run because it's flexible,” Mr Li said. “We had two kids while we ran Lincoln Green and after the second child was born, we thought it was time to do something else that we wanted to pursue. “The good thing about management rights is that you get a very stable income but ResortNews | June 2022

since my wife and I were both still in our early 30s we wanted to expand in another direction as part of our journey in life. “We knew if we did not succeed in our new venture, we could always come back to management rights because we had the knowledge, the skills, the experience, and the relationships to make a success of it again. “After we sold the management rights at Lincoln Green, we went to Japan for six weeks. It was a very good holiday after six years of hard work at Eagleby. But the pandemic was happening, so we decided to come back to Australia. I worked in a friend’s business doing retail for about a year but during that time I did enjoy doing a lot of gardening and I had my mind on farming.” Mr Li bought his 25-hectare dragon fruit farm through another of Paul Shih’s students who specialises in selling management rights. A friend of hers owned the dragon fruit farm and wanted to sell to concentrate on another property and some greenhouse research and development. “My family now lives on the farm right under Mt Tibrogargan in the Glass House Mountains, north of Brisbane,” Mr Li said. “We have over 52,000 dragon fruit plants. “I’m doing something that I really love, but farming is much more than I expected, and it is keeping me very busy especially with the recent floods, which ruined 60 tonnes of fruit and cost us $200,000. “Thankfully floods don't happen every year. “It is a bit like my start in management rights – very, very tough. But things got better there, so I think things will get better here too. “When I started growing dragon fruit, I didn't know much about them, but we are learning as we go, and I still have a very close relationship with the previous owner who helps me anytime I've got questions. “My children are five and a half, and four and a half. One of them really wants to help me on the farm while the other one is always saying ‘no, I don't want to help. And it is my right not to.’

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

For membership enquiries:

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

“All I can say is ‘okay’!” MANAGEMENT

BY ALL ACCOUNTS

Financial year end planning & changes As the 2022 financial year-end approaches, everyone wants to know what can be done to reduce their tax liabilities. A great question. But another question in return, does your business need anything? If so, buy what you need and yes there it may be tax effective to bring forward business related purchases prior to July to benefit from the tax deduction in the current year, a bird in the hand is worth two in the bush and all that jazz. But, if you are looking to spend money with the sole goal of saving tax, my answer will always be to save your money. Why spend a dollar to save cents in tax? In saying that, if you haven’t already turned your mind to tax planning, there are certainly some tax effective strategies you might consider prior to June 30… Immediate tax deduction for business asset purchases is available for assets acquired, installed and ready for use by June 30, 2023, with no limit to the cost of the asset, where the turnover of your business is less than $50 million. Immediate tax deductions for prepaid expenditure provided the period to which the expense relates is less than 12 months (think prepaid interest, insurance etc.,). Small Business Technology Investment Boost allows small businesses to claim a tax deduction for 120 percent of eligible business expenditure and depreciating asset purchases which supports them adopting digital service such as portable payment devices, cyber security systems or subscription to cloud based services. So, if you are looking to move your systems to the Cloud, and

Lel Parnis, Principal, Holmans why wouldn’t you? Then there’s an additional 20 percent tax deduction for eligible costs incurred from 7.30pm March 29, 2022, until June 30, 2023. For expenditure incurred between March 29, 2022, and June 30, 2022, 100 percent of the expenditure is claimed as usual in the 2022 income tax return with the additional 20 percent deduction clamed in the 2023 income tax return. For eligible expenditure incurred from July 1, 2022, the full 120 percent deduction will be claimed in the 2023 tax return. There is an annual $100k cap to each qualifying income year, so there is a benefit to spreading expenditure over 2022 and 2023 financial years. Any additional expenditure is still tax deductible under ordinary provisions, you are just capped for the 120 percent deduction. Small Business Skills and Training Boost similarly allows small businesses to deduct $1.20 for every $1 spent on external training courses for employees provided in Australia or online by registered training organisations. There is no cap on the 120 percent claim for eligible training expenditure incurred from 7.30pm March 29, 2022, and June 30, 2024. Note: The Small Business Technology Investment and Skills & Training Boosts were announced in the 2022 Federal Budget but are yet to be enacted.

Pay employee super by June 30, superannuation contributions are only ever tax deductible when paid, if paid on time. To ensure a tax deduction for employer superannuation contribution on wages for the final quarter of the 2022 financial year ensure superannuation contributions for employees are paid and cleared by June 30, 2022. The concessional superannuation contributions cap for the year ending June 30, 2022, is $27,500. Bear in mind when making any lump sum contributions prior to year-end, that concessional contributions include personal and employer contributions made on your behalf to avoid potential excess contributions taxes. If your super fund(s) balance is less than $500k you may be able to make additional tax-deductible concessional contributions for any unused cap amounts for the 2019, 2020 and 2021 financial years. So, if you made no concessional contributions to date, you may be eligible to claim a tax deduction for up to $75k (3 x $25k prior year concessional caps) plus the current year concessional cap of $27,500 totalling $102,500 in potential tax-deductible superannuation contributions.

Get ready for super changes from July 1, 2022 Removal of the $450 per month threshold for employer super contributions. From July 1, 2022, employees may be eligible for super guarantee (SG) regardless of how much they earn. For workers under the age of 18, super is only payable where more than 30 hours are worked per week. The super guarantee rate will increase from 10 percent to 10.5 percent on July 1, 2022. You will need to ensure the new

MANAGEMENT

rate is applied in your payroll system for any payments made from July 1, 2022, even where some or all pay period is for work completed prior to July 1. The SG rate is legislated to increase to 12 percent by 2025. Changes to the ‘work-test’ for personal super contributions from July 1, 2022 Currently the ‘work test’ requires persons aged 67-74 years to have been ‘gainfully employed’ for a minimum of 40 hours in a 30-day period during the relevant financial year in order to make voluntary (concessional and nonconcessional) contributions to their super funds. From July 1, 2022, the work test will be removed except where the individual intends to claim a tax deduction for the superannuation contribution. Further, individuals who were previously unable to access the bring forward nonconcessional contributions rule may be able to make additional non-concessional contributions from July 1, 2022. Please be advised, you should always liaise with your financial advisor and superannuation funds to confirm eligibility prior to making contributions to your fund(s) to avoid unintended penalties and/or excess contributions taxes. Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions, or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.   ResortNews | June 2022

Everyone loves a bargain. Well, I think most people get a bargain whenever they stay in a motel.

The difference between a well operated motel and a poorly operated one is very evident. The are some motels in need of a little TLC and their time comes around at some point whether the current owner or a new owner bites the bullet and completes a refurbishment. However, most motel operators understand the industry and what the guests in their particular market segment demand for their dollar. The room that is on offer for $85 per night against the one at $185 per night will differ considerably in size, standard, services available, etc. It has to, there is a $100 per night difference. What I have found is that each has its own personal characteristics that make that stay one of a kind, enjoyable and good value for money in some way. Perhaps it was the surprisingly large room for the dollar being charged, which was unexpected as I walked through the door for the first time. Maybe it was the renovated bathroom that had been completed by the new and enthusiastic owner/ operator since I stayed at the motel the last time. Perhaps the high-quality bed that helped get a good night’s sleep after a long drive or busy day.

Andrew Morgan, Queensland Tourism and Hospitality Brokers

the bigger scheme of things, seem to become stories that get repeatedly rolled out whenever the opportunity arises. Opposed to focusing on the positives of the experience.

the call of duty to help them find a larger parking spot, offering them a complimentary snack or beverage, or just making sure if they need anything, “come and see me and I will do what I can”.

Looking at it from a different perspective I believe the value for money available to travellers requiring short or medium-term accommodation throughout Queensland motels is excellent. Forget turning up to accommodation booked online where there is no manager onsite, can’t access the key, the place is dirty or does not present anything like it did online. The value for money a guest receives in general terms at a motel facility in Queensland is excellent in my opinion. Forget the ‘Fawlty Towers’ type comments people like to make. The owners and operators I know put their whole-hearted efforts into making sure every guest is looked after and goes away happy with the experience they had. They take pride in their work and genuinely want to make their guest happy. Often going above

The room rates throughout the state vary greatly depending on location, standard, etc. The amount of value for the guest packed into a let’s say $80 to $160 per night studio motel unit is a lot when you break it down. Let’s look at just some of the absolute basics of what one gets for their hard-earned dollar: •

•

Property management: An onsite manager who is at the guest’s beck and call, providing security and attending to any concerns, maintenance problems or requests on the spot that may arise during their stay. 20 hours of accommodation in a room/unit that has been professionally cleaned. 2pm check in to 10am departure and longer than that if requested.

It is often human nature, but people tend to focus on the negative with an experience they have, good or bad. This is no different with accommodation. The smallest of concerns that are not really an issue in ResortNews | June 2022

•

Freshly laundered linen and towels on quality commercial grade bedding.

•

Tea, coffee, milk and biscuits.

•

Kettle, crockery, cutlery and toaster.

•

Kitchenette for meals (in some cases).

•

Table, bench, chair and couch to work from or relax.

•

Television with free to air, Pay TV or streaming subscription.

•

Refrigerator and microwave.

•

Ensuite with hot running water, and guest amenities.

•

Air conditioning.

•

Alarm clock.

•

Cupboard hanging space and ironing facilities.

•

Under cover or non-covered off street carparking.

•

Pool and outdoor area.

•

Mini bar or convenience item facilities.

•

Wifi access (often free).

•

Laundry facilities.

•

Rubbish disposal.

When you break all that down what fantastic value for money. © Adobe Stock - stock.adobe.com

That’s not to say that every guest is always 100 percent satisfied, that’s just not possible. But in the main, what one receives for the cost of their room night is real value. I am continually impressed with just how good the product and service provided by the standard motel offering is. I can say without any doubt that more often than not, I come away from my stays extremely happy and thinking, what great value for money that was, for what I received.

I believe the value for money available to travellers requiring short or medium-term accommodation throughout Queensland motels is excellent

MOTEL MARKET

Motels: Value for money

MANAGEMENT

The value to the guest of having a manager on site or available for security and if something needs to be rectified or fixed it can be immediately, is worth the room rate alone. That’s the first dot point above, now start adding on all the extras below!

THINKING MR

How do you feel? “It’s the vibe of it. It’s the constitution. It’s Mabo. It’s justice. It’s law. It’s the vibe and ah, no, that’s it. It’s the vibe. I rest my case,” Dennis Denuto, Lawyer for the embattled Kerrigan family. The Castle, 1997 Australian Movie Classic. By the time you read this, dear comrades, we will either have the same government we have today, a new majority Labor government or, God help us, a coalition of the mad, the bad, the misguided and the plain crazy. However the numbers fall we can be sure of one inescapable truth, we live in a world where facts no longer matter, and the vibe holds sway. Don’t believe me? Here’s a simple example…

aircraft has 162 economy seats and 12 business seats. That’s a maximum of 174 passengers each requested to remain 1.5 metres from the next. The simple maths suggests that in spite of the vibe we’ll need 261 metres if the plane is full, and we comply with the social distance rule. According to Boeing the 737 is about 40 metres long of which the cabin is about 25 metres. You see the problem. While the vibe is great the maths doesn’t work. In fact, to maintain 1.5 metres in the aisle of a domestic airliner you would need to reduce maximum passengers to a point where the airline would simply go broke. And that’s my worry. The vibe in much of public debate now takes precedent over fact-based discourse and no one seems to be checking the maths. Take inflation as another example. We predicted some time back that excessive money printing

To make matters worse I believe we now live in a country where the tough decisions are avoided and the popular vibe rules.

Take the NDIS. No one with a heart would suggest that we should not look after our most vulnerable and challenged. However, with systemic rorting and cost blow outs expected to exceed $60B by 2030 (and dwarf Medicare spending) no one with access to a calculator could suggest that the scheme, in its current form, is sustainable. The maths doesn’t work but don’t hold your breath waiting for a politician to call it. The only way to fund such a scheme is increased taxes or print more money, maybe a magical combination of the two. In a perfect world we could fund all the initiatives that improve people’s lives. Sadly, the maths doesn’t work. I cling to hope that a political saviour with the guts and vision to call things as they are, will emerge from the swamp, but I’m not holding my breath. Here’s a few things to consider while we wait. Interest rates are going up. How far, who knows. If you believe the CEO of our largest bank (yes, a stretch I know) the cash rate will hit 1.35 percent later this year before levelling off at 1.60 percent mid-way through next year. To put that in perspective the cash rate prior to the last RBA board meeting was 0.1 percent (thank you Anthony, you may put your hand down now) and now stands at 0.35 percent.

Recently I had the pleasure of travelling on a domestic aircraft. A Boeing 737 800 in fact. The preflight check in included a request to remain at least 1.5 metres from other passengers while boarding. Seems reasonable in these days of Covid hysteria. The message even has the right vibe, you might say. Anyway, let’s set aside the obvious problem of being squeezed cheek to jowl once seated and concentrate on the 1.5 metre request. The

Mike Phipps, Director, Mike Phipps Finance

combined with supply chain disruption would ultimately put upward pressure on prices, and so it has come to pass. Setting aside a slight feeling of self-validation that I finally got a prediction right, this is good news for no one. Incredibly the response from some politicians has been to suggest wages need to keep pace with inflation. Ok, seems fair, cost of living going up, lets help working families, it’s the vibe. Again, the maths suggest otherwise. If it is true that inflation is a product of too much money chasing too few goods then one might quite rightly suspect that increasing wages, of itself, is akin to pouring fuel on an already raging fire. Increased wages are not going to magically fix supply chain issues, sort out our ongoing blue with China or improve productivity. More concerning, increases will reduce business profitability with a certain knock-on impact for business investment. These assertions can be costed and tested mathematically but no one seems to care. With businesses struggling to get back on their feet after COVID I believe all we need is a wages blow out to send us into recession. In fact, there are signs that it may already be too late.

MANAGEMENT

ResortNews | June 2022

Defamation alert:

CBA argue that rate rises within the range they expect will cool demand and put the inflation genie back in the bottle. I think they may be right. I’ve got a vibe. The property market is correcting. How corrected, who knows. What we do know for sure is that politicians want to get involved in home ownership. Some would have the government (taxpayers) do a joint venture in first home ownership while others would allow access to super. Make no mistake, the access super option also involves taxpayers. Less super at retirement equals more reliance on taxpayer funded pensions. Of course, if house prices rise substantially over the working life of the first home buyer and that buyer downsizes into retirement the whole thing just might work without imposing on the long-suffering taxpayer. Sounds a bit like government sponsored speculation or is it just the vibe? Mortgage defaults will explode. How big an explosion? Well actually, not very big at all. Australian borrowers do something that very few other borrowers do worldwide. They pay off debt faster than the credit contract says, and they build up advance payments for a rainy day. So far as statistics tell us only Canada has a similar borrower profile. In fact, new research from the Australian Prudential Regulation Authority (APRA), released recently, shows that Australian mortgage holders are on average 45 months ahead on their repayments. This is up from 32 months recorded prior to the pandemic. Investment decisions will be more critical than ever. How critical? Very! Here’s where I caution you not to rely on ResortNews | June 2022

Authors beware!

anything I say and to seek appropriate professional advice. I’m not a financial advisor, just a simple bloke who’s made and lost a few bob punting on various get rich quick schemes. It’s probably important to make one underlying confession from the get go. Most of the investments I’ve made over the years that relied on lots of analysis and many spreadsheets have performed modestly, while those decisions made more from a fundamental understanding of the asset, some emotion and the vibe have done significantly better. The lesson I’ve learned is that the more analysis required the less likely the investor has an understanding of the opportunity and asset class. So, if you’ve got a few dollars sloshing around in these troubled times might I suggest looking at asset classes you know, or industries you can study and understand pretty easily. It’s really important to know enough to sort the fact from the fiction. As an example, I know a bit about finance and economics but bugger all about anything else. What amazes me is that when I read commentary and research in the press from so called finance experts a lot of it is simply not accurate. For example, a senior economist at one of the major banks recently talked about fixed rate expiry refinance risk. Thing is, if you’ve got a 25year home loan and you come off a fixed rate after the first three years there is no refinance risk. You simply convert to variable or take another fixed rate option. This is not a refinance and to suggest to mortgage holders that they have such a risk is either reckless or, at best, careless. Bottom line. Do your research, make sure the maths works but don’t ignore the vibe.

It is widely known that bodies corporate have, for the most part, failed in attempts to terminate Caretaking and Letting Agreements in Schemes in Queensland. Generally speaking, tribunals (such as QCAT) have rejected claims that alleged substandard caretaker performance is a legitimate basis for termination. This can lead to resentment by certain body corporate members, who publicly express their disappointment or anger, and become what is colloquially termed ‘keyboard warriors’. They then engage in internet letter writing campaigns. Yet, unit owners may be surprised to know that the BCCM Act provides only limited protection from civil actions for damages for defamation. Many of the publications, that we have seen, are unguarded, defamatory, and open the door for claims that could result in substantial legal fees and damages. Recently, in the Supreme Court of Queensland decision of TLL Investment Pty Ltd v The Body Corporate for the Grange CTS 30993, an alleged author of an internet letter, sent to unit owners, was linked to a defamatory publication. If the matter goes to trial, and is determined against the author, this could result both in damages and legal fees, of tens of thousands of dollars. In this case, the author had, over the course of the proceedings, engaged

MANAGEMENT

LEGAL EASE

To make matters worse I believe we now live in a country where the tough decisions are avoided and the popular vibe rules

Peter George, Partner, Litigation Management & Consulting, Short Punch & Greatorix Lawyers

three firms of lawyers, and had in other periods been self-represented. In another case in which we are involved, publications have been made about a party in a strata scheme, which has resulted in complex and expensive defamation proceedings; all of which might have been avoided if the publishing parties had sought advice and taken greater care before making statements. In these times, with the prolific use of the internet and social media, people may unthinkingly make allegations with wide circulation, before considering the consequences of their statements. The broader the circulation, the greater the damages may be. Where bodies corporate have been unsuccessful in litigation, that does not entitle authors to carelessly make disparaging and damaging statements in retaliation. If a person feels so motivated to publish comments, then advice should first be taken, and there should be care to ensure that there will be no legal consequences arising from publication.

GOOD GOVERNANCE

‘Building Defect Assessment Review’ a statutory obligation As of March 1, 2021, most bodies corporate (except for 2-Lot Schemes) must put a motion forward for conducting a Building Defect Assessment Review. This ‘defect assessment motion’ must be put forward at the next general meeting of the scheme once the first Annual General Meeting is called. This requirement is legislated within the Body Corporate and Community Management Act (BCCMA) and is mandatory. The defect assessment motion must put forward a fee proposal from an appropriately qualified building defect inspector to conduct a site inspection and prepare a defect report to the Queensland Building & Construction Commission (QBCC) standard, including defects defined under the QBCC legislation and formatted to the QBCC requirements.

Why is this now legislated? The defect assessment motion mandate has been introduced to assist bodies corporate in managing their rights under the statutory builders warranty for defects on common property. The QBCC provides consumer

Lynda Kypriadakis,

Diverse FMX

protections (which aren’t always capitalised on) and bodies corporate sometimes find themselves voiding warranties and missing out on getting the builder back to fix. With this defect assessment motion mandate now in place, bodies corporate are becoming more aware of their rights and how to claim under the builder’s warranty.

What defects are covered? Any defect defined under the QBCC legislation in Queensland is covered by the defect assessment motion, which is why it is fundamental that an appropriately qualified and experienced building defect inspector is engaged to do the assessment review and prepare the defect assessment report. In Queensland there are two predominant defect types covered under the builder’s warranty:

QLD - NSW - VIC - WA

Structural Defects: Previously called ‘Category 1’ defects, these are major defects that have the potential to adversely affect the structural integrity of the building and include any water leaks, significant structural cracks, safety issues, any defect in an essential service or fire safety installation, etc. Non-Structural Defects: Previously called ‘Category 2’ defects, these are minor defects that are generally aesthetic in nature and don’t have the potential to cause any structural damage, including paint defects, carpet defects, fouling cupboards, flooring or tiling defects, etc.

What is the defect liability period? For structural defects there is a six years and six months defect liability period in Queensland, starting from the date of practical completion of construction. For non-structural defects there is a 12-month defect liability period in Queensland. Note: For full site-specific details and particulars on your defect liability period and other important facts relating to claiming defects under the warranty for your complex, legal advice is highly recommended. Once a defect is discovered the body corporate has three months to report the defect to the builder, demand rectification and if not repaired, lodge a complaint with the QBCC. It is important that bodies corporate act promptly, so as to capitalise on the warranty. Failure to act on defects promptly may result in the warranty being voided and the builder getting ‘off the hook’ for repairs. You may need legal advice to clarify these particulars.

How does the QBCC help? Consumers of building industry products in Queensland have

MANAGEMENT

the QBCC to turn to when a building defect is discovered, and the builder has not fixed it. The dispute resolution services of the QBCC are comprehensive (and complicated) so it is important that you follow all the requirements in order to get success with a defective building work claim. Once your complaint is lodged and accepted by the QBCC (i.e., you satisfy all the lodgement criteria), the QBCC will assign a case manager who will contact the builder and request that they return to rectify the defects reported on the complaint. The builder will provide an explanation of their view of the defects (e.g., they may dispute that defects exist, or they may say they were prevented from gaining access to site to fix, etc.) and the QBCC will listen to both sides of the story. If the QBCC is satisfied that defects exist, they will schedule in a site inspection and invite representatives from the builder and the body corporate to attend. The QBCC will assess each defect before preparing a ‘Decision Notice’, which may include a ‘Direction to Rectify’ being issued upon the builder for the defects. The builder will then have a set period of time to fix the defects before the DTR expires. Penalties may apply via the QBCC if the builder fails to rectify defects once directed. This QBCC complaints management process currently takes 14-16 weeks, so it is important that complaints about defective building work are lodged in plenty of time. For example, if your building is over six years old, you may not have time left on your warranty period for the QBCC to process a claim. Similarly for nonstructural defects you must lodge a complaint for these defects within seven months of ‘Practical Completion’ or the QBCC will not have time to process the complaint and issue the ‘Direction to Rectify’ before the expiration of the defect liability period. ResortNews | June 2022

When it comes to increasing the visibility of your hotel and maintaining maximum occupancy of your rooms, it’s vital that you have a wellplanned and diverse marketing strategy. Of course, you need to ensure that booking directly with you is as simple and easy as possible. However, the reality is that relying on your website alone to achieve this is a mistake. Online travel agencies (OTAs) and metasearch engines are playing an increasingly important role for consumers, particularly during the ‘research’ stage of the traveller booking journey. And if you want to reach as many potential guests as possible in both domestic and international markets, growing your OTA connections is a no-brainer. Here are three of the top reasons to increase your OTA connections.

Optimise your reach internationally Strategically distributing your inventory across a number of OTAs means you give your property the best opportunity to reach the broadest audience both in Australia and internationally. Different OTAs reach different audiences and geographic markets so it makes sense to diversify your connections.

Sylvia Johnston, Senior Executive, HiRUM Software Solutions

35 days in advance, it makes sense to ensure you expand your visibility in the overseas market too. As international visitor numbers are projected to continue rising significantly with the relaxing of COVID restrictions, it’s vital to explore the OTAs and other distributors with a strong footprint in key international source markets.

The Billboard Effect The majority of consumers engage with OTAs as a kind of one stop shop to enable them to search destinations, compare room prices and read reviews before narrowing down their search. OTAs make it easy for travellers to compare hotels instantly without having to open up individual websites, capturing them at the allimportant research stage.

However, after narrowing down their search many people will navigate directly to the hotel’s own website for more details including to browse more photos and see if they have any specific offers. And if you have a good website, with engaging content, easy navigation, and a booking engine, you will likely convert the customer and win the direct booking. This is known as the ‘Billboard Effect’ as the OTA acts as an advertisement for your hotel. OTA’s have huge marketing budgets, giving them an online visibility that would be completely unaffordable and unattainable for all but the biggest hotel brands. OTA listings dominate travel search results. This is why smaller, independent hotels cannot exclude OTAs and metasearch engines from their marketing mix: they provide a level of exposure for your property that you cannot afford to do without.

New market segments Reaching new market segments, including various traveller niches can be extremely expensive and time consuming unless you have significant marketing resources at your disposal. The huge variety of OTAs and metasearch engines now available mean that you can be selective about the distribution networks that

Smaller OTAs need to differentiate to compete and remain in business. So not only are they cheaper, but they can also help generate marketing exposure, visibility and consumer reach in niche market segments you may not currently have access to. Being focussed on a target market rather than a ‘spray and pray’ approach not only makes sense from a cost perspective but is also usually more effective in terms of booking conversions as you have fewer competitors. In summary, OTAs and metasearch channels need to be a vital component of your marketing mix and distribution channel strategy. They allow you to increase your online visibility and reach a huge number of potential guests locally, nationally and internationally, when they are in the early stages of the buying process. They spend enormous amounts of money promoting their own brands and enable you to achieve marketing efficiencies by gaining a level of market exposure more cost effectively than most other forms of advertising. Of course, there are the obvious leading OTA’s of the world, however, there are many online hotel distributors that can be equally as beneficial for your business. It is all about finding the ones that will work best for your business.

Listing your properties on Ctrip in China, HRS in Germany, or Holidu in Europe for example, will invariably increase your chances to generate room nights from these source markets at a relatively low cost in terms of real marketing dollars.

The ultimate goals for any hotelier are to drive more bookings, increase occupancy and grow your profitability. Without effective distribution management, you are very likely missing out on a huge opportunity to grow your business.

When you consider that international travellers pay an average of 10 percent higher daily rates, stay 0.5 days longer and book over ResortNews | June 2022

you work with. Different online distributors can help you reach different types of consumers and provide potential new market segments. OTAs have strong affiliate networks and provide booking capabilities from many and varied associates.

SOFTWARE SOLUTIONS

Three key reasons to grow your OTA connections

MANAGEMENT

BUILDING RELATIONSHIPS

Change your perspective to survive and thrive Sitting at the end of the hospital bed watching my twoyear-old struggling to breathe having caught COVID and unfortunately suffering from childhood asthma really puts the word perspective into a whole new light.

sometimes this can be hard but if you practise the art of perspective, I promise you will find that the small stuff stops escalating into the big stuff. Not focusing on the things that are out of your control for example someone else’s opinion or attitude, you will find you have much more time to focus on the more productive and positive aspects and relationships within your business and life.

Kelley Rigby, Managing Director, Letts Rebuild

In the world of management rights, I think perspective is a much-needed element to survive and thrive. We all know this industry can throw us curve balls, some much larger than others but looking deep into it all, is it life threatening?

to take the high road, because in the scheme of things, is it really worth it? When you receive a nasty email from a grumpy owner, or someone walks into your office ‘with all guns blazing’ I want you to stop and try to have perspective.

When friends/clients ring me and vent or ask advice on how to handle a tough situation most of the time I try to encourage them

Is the situation or argument really worth your energy or even more important your time? I understand in the heat of the moment

Finally, it wouldn’t be a Kelley article without a story (I might even start calling this section of my article story time with Kelley), so here we go… A friend/client had a real estate agent (not a friendly one) promise that if they sold to an investor that this said manager would receive the letting agreement. Throughout the sale the said manager was assisting with information as the agent really had

no idea. The property sold to an investor and the agent kept the rental. I’ll just let that sink in, as I know you have all been there. Anyway, the manager rang me and was about to start the Third World War with said agent and agency. We chatted about the issue for a while and after putting things into a little bit of perspective the said manager placed her grenades, rifles and all other weapons away as this was not a fight that needed to happen. Yes, it is heartbreaking, yes, it is very frustrating but not life threatening. And now for the happy ending… We got in contact with the new owner and discussed the services of the said manager, they are due to come back into the letting pool any day now. We focused that anger and energy on winning back the investor from said agent and we won!

PROGRAMME

Problems Prevented - Problems Solved

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS BEDS & BEDDING GYMNASIUM EQUIPMENT SIGNS SOLICITORS TRAINING & DEVELOPMENT

Sleepmaker GymWorks Australia SignXtreme Hynes Legal Property Training Australia

Over 40 years of service to the Management Rights Industry, providing assistance in:

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.

Buying and Selling Ensuring Agreements comply with the law Agreement Negotiation with Bodies Corporate Representation to Licensing Authorities ‘Body Corporate & Community Management Act’ Advice Employee Dispute Resolution For expert advice please contact:

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

Paul Jones Phone: 5570 9327 paul.jones@spglawyers.com.au

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

Wyndham Corporate Centre, Level 7, 1 Corporate Court, Bundall Q 4217 PO Box 5164 GCMC, Bundall, QLD 9726 www.spglawyers.com.au MANAGEMENT

ResortNews | June 2022

By Grantlee Kieza, Industry Reporter

Queensland’s trio of long-weekends combined with the end of lockdowns generated a staggering $2 billion boost to the State's visitor economy. Some holiday properties saw an increase of more than 50 per cent in REVPAR (Revenue Per Available Room). Queensland Tourism Industry Council CEO Brett Fraser told Resort News that accommodation providers across the state had reported high occupancy rates during the April tourism season, as holidaymakers took full advantage of the Easter period. “After a challenging past two years, our state’s tourism operators are benefitting from renewed consumer sentiment and a desire to travel which has seen thousands of Australians exploring our great regions,” Mr Fraser said. ResortNews | June 2022

The Gold Coast is experiencing a resurgence in the domestic market in 2022 not experienced since the 2015 to 2016 peak marketing campaign of “Australia’s Theme Park Capital”, when tourism levels were maintained throughout the year, and the domestic markets were clambering just to find enough rooms. During March and April 2022, interstate tourism from NSW and Victoria returned to the Gold Coast in droves, spending big on food and beverage, retail and entertainment, and highlighting the pent-up demand and euphoria of finally being let out to play. Paradise Resort encapsulated that trend, experiencing high demand across all areas of the resort, culminating in a 57 percent increase in RevPAR to $225.25. General Manager David Brook said food and beverage sales had been at an all-time high with massive demands for the myriad of activities, entertainment and facilities, including the everpopular Kids Zone, water parks,

laser tag and the property’s latest addition to the resort, the Pamper Parlour for hair braiding. “Looking forward, the forecast is for continuing strength in demand across the year ahead,” Mr Brook said. “Bookings for the coming July, September and December school holidays are well above anything seen for many years. Encouragingly, there is a trend of extended stays averaging more than six nights per booking.” On the Sunshine Coast REVPAR figures were up 15 percent in March 2022 compared to March 2021 and heading north. Matt Stoeckel, CEO of Visit Sunshine Coast, said that despite sometimes variable weather, the Sunshine Coast had enjoyed an outstanding April. “The combination of Easter, school holidays, three long weekends in a row and some major events lifted occupancy to over 85 percent for the month, according to STR figures,” Mr Stoeckel said.

TOURISM

TOURISM REPORT

Good things come in threes as Queensland travel booms

“This was across the hotel sector, while other short-stay accommodation and camping grounds reported similar or even higher occupancies. “It is difficult to compare with performance over the past few years, because of the impact of the pandemic, but the figures reflect the strength of the domestic leisure market. Major events are now back on the calendar, while business events are slowly returning, and we are looking forward to some large conferences taking place in June that had been deferred from the past two years.” Mr Stoeckel said international visitation was still a long way from recovering, but the New Zealand market was showing greater activity and the return of direct flights into Sunshine Coast Airport in July would help lift occupancy over winter. Queensland’s Tourism Minister Stirling Hinchliffe said great deals on getaways in the state had helped create record travel for Easter.

The Scenic Rim is picture perfect for Queensland tourism Images supplied by O’Reillys Rainforest Retreat

By Grantlee Kieza, Industry Reporter

in the shadow of the McPherson Range. They cleared some of the bush with axes and saws, and started dairy farming and timber cutting, but they struggled to make their hard work pay.

In 1937 farmer Bernard O’Reilly made headlines around Australia for his rescue of survivors from an aeroplane crash in the rugged McPherson Range on the QueenslandNSW border. Eighty-five years later the area is making world headlines as one of the best holiday destinations on the globe. O’Reilly’s family ran a small guesthouse as an offshoot for their dairy farm but in the process started a booming hospitality industry in the area that is now known as the Scenic Rim. Located about 90 minutes inland from the Gold Coast, the Scenic Rim was last year recognised as one of travel bible Lonely Planet’s top 10 regions to visit in 2022, alongside such iconic destinations as Burgundy in France and Vancouver Island in Canada. At the time, Daniel Gschwind, then the Queensland Tourism Industry Council chief executive, said the

O’Reillys Rainforest Retreat

or the surf and sand of the Gold and Sunshine Coasts, the Scenic Rim offers visitors stunning views, lush tropical rainforests and bushwalking experiences with an abundance of wildlife not seen anywhere else in the world.

area had "come into its own" during the COVID-19 pandemic. "There's a bit of a silver lining from COVID that people looked closer to home to explore," Mr Gschwind said. "With a consumer trend towards authentic, real, personalised experiences some destinations in the Scenic Rim are just hitting the mark."

There are some imports too, and Summer Land Camels at Harrisville is the third biggest camel farm in the world. Tourism started in the Scenic Rim after large parts of the area were classified as national parks and much of the astonishing countryside remains untamed.

As Queensland tourism is set to boom in the post-COVID era, the Scenic Rim looks set to be one of the State’s most popular destinations for a long time to come. While it might not have the vast array of accommodation options

In 1912, eight men from the O'Reilly family came to Queensland from the Blue Mountains in NSW to take up 40 hectares of cheap land

Sunset Experience at O'Reilly's

Then, in 1915 Lamington National Park was established around their farm, making their property an isolated island surrounded by bush. Rather than go under, the O'Reillys decided to use the situation for their advantage and founded their Rainforest Retreat, a small, humble guesthouse in 1926. Access to the guesthouse was an adventure in itself. Guests would generally arrive at Beaudesert by train and then travel by horse and cart to the Kerry Hotel, where they would stay the night. The next day they were met by one of the O'Reillys with a team of horses for the ride up to the guesthouse along a dangerous path called the Stockyard Creek Track, which the O'Reilly family had carved out themselves over the Sarabah Range from Canungra. It was a holiday only for the adventurous and it remained so even when the O’Reillys decided to expand their operation and splash out on a car to carry guests to their accommodation.

Canungra Valley Vineyards: Image credit Canungra House

TOURISM

ResortNews | June 2022

If you’re not reading

Against all odds, Bernard O’Reilly found two men still alive in almost impenetrable forest and arranged their rescue. Today, a life-size model of the big blue aircraft, and a statue of Bernard O’Reilly grace the guesthouse which has become an iconic holiday destination.

Australian actors Jack Thompson and Richard Roxborough starred in a film about the rescue of the Stinson survivors. These days the Scenic Rim is capturing the world’s attention for its stunning natural beauty.

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

The famed broadcaster Sir David Attenborough has filmed some of his documentaries there, showcasing the area’s unique birdlife and animals. The Scenic Rim now contains six national parks and many luxury getaway-from it all experiences. Among its best-known holiday properties are O’Reillys and Binna Burra Lodge, as well as farm cabins at Hazelwood Estate in Beechmont, and the luxury glamping tents at Nightfall Camp on Christmas Creek Road at Lamington.

Regis d by Austr Registere Australia Post

The guesthouse was thrust into the national spotlight in 1937 when an Australian National Airways aircraft disappeared nearby and all hope was abandoned for survivors. The Stinson Model A airliner was on a flight from Brisbane to Sydney, carrying five passengers and two pilots. Both pilots and two passengers were killed in the crash. One of the surviving passengers died beside Christmas Creek while attempting to get help to the others.

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then you’re losing the advantage.

Stinson Walk: Photo by Ben Southall

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TOURISM

EVENTS

What about Women In Management? Gold Coast Founder Marisa Millane reported that the Gold Coast luncheon was held at Mr Hizola in Burleigh, where Asian fusion was the menu. It was fantastic to see the Gold Coast so busy again with tourists everywhere. There were some positive stories

shared about accommodation booming and busy managers. The Sunshine Coast luncheon was held in Mooloolaba at Psari Seafood Restaurant. This event was hosted by Resly and it was a wonderful turnout and great to see so many managers, we even had a few men attend. Overall, it was a wonderful day of connecting and having a lot of fun.

Sunshine Coast

Coming up: The 80 Twenty Hotel Conferences These conferences are a fantastic forum for senior hotel management, owners, operators and anyone wanting to expand their knowledge and network while the sector prepares for more new openings, staffing issues, high demand and expectations from the domestic market.

The events provide attendees the opportunity to gain valuable insight from accommodation experts and industry leaders discussing problems and solutions from Market Performance, Operations, New Developments, Staffing, Sales, Marketing & Revenue to F&B, Health

EVENTS & APPOINTMENTS

& Wellbeing and Sustainability. The 80 Twenty Hotel Conference will be held in the Gold Coast at The Dorsett on Tuesday June 14 and moves to Brisbane at Emporium on Thursday June 16. For further information go to www.80twentyhotelmedia.com

ResortNews | June 2022

Accommodation industry Twin Waters golf day report These days are not possible without our magnificent sponsors.

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Although at one stage it looked like everyone would need to use canoes rather than buggies to get around the course, we managed to put the Twin Waters golf day in the books.

bit of rain but generally blue skies. Missing Sue O’Farrell after a nasty incident with a staircase (our beloved leader claiming innocence) we set off.

The day was a 4 ball best ball comp and first place with an excellent score, considering the conditions, of 48 went to Michael Mercalfe and Cherry Sutherland.

As carts were on paths it made for a long afternoon, especially if you got on the wrong side of the path and the cart stopped!

Albeit a bit damp, the golf course was surprisingly playable and 80 intrepid golfers braved a

This meant many had to finish in the dark, then it was in for a very tasty meal and prizes.

You could throw a handkerchief over the next 3 places, all scoring 44, so on a count back 2nd was Mark McIntyre and Andrew Taylor, 3rd to Tracey Taylor and Eddie Bartells and 4th to Greg Shepard and Anthony Barnett.

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Please support these companies wherever possible. Looking forward to the Glades on Thursday the July 21 at 12.00 noon for a special team competition. See you there!!!

We celebrated 30 years of ARAMA On May 20, more than 250 guests from across the management rights industry gathered in the Gold Coast at The Island hotel, Surfers Paradise to celebrate ARAMA’s 30th birthday. It was a memorable night, and everyone was excited to catch up with so many familiar faces.

Thank you to Trevor Rawnsley and his team for organising this 30th birthday dinner which was not just a celebration of ARAMA but also of our much-loved industry. It gave us the opportunity meet up face to face with colleagues and friends for a happy occasion after a troubling few years and it was also an opportunity to honour some of those who have worked so hard for the sector for many years.

EVENTS & APPOINTMENTS

Images Supplied

ResortNews | June 2022

ResortBrokers Industry Lunch Held at the Reef Hotel in Noosa, the ‘who’s who’ of the Noosa and surrounds management rights industry joined together over lunch to hear the latest updates from a recent management rights forum held in Brisbane.

Hosted by Resort Brokers and associates Mike Phipps Finance, Holmans and Pevy Lawyers. The event is one of many planned across the Sunshine Coast in the next 12 months. Trudy Crooks MD of Resort Brokers reported on the market across the country and where we may be in 12 months’ time. The event was well attended with over 35 resident managers and associated industry specialists attending. Images Supplied

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

Gold Coast

Gold Coast - Social Lunch

Tuesday, 7 June 2022

11.30am

The Arc at Nobbys

Open

Sunshine Coast

Sunshine Coast - Social Lunch

Wednesday, 8 June 2022

11.30am

Mykies by the Bay

Open

Brisbane

Social Event

Friday, 17 June 2022

12.00pm

Slipstream Brewing, Yeerongpilly

Open

ALL

WEBINAR: Update from the Professionals

Wednesday, 22 June 2022

11am

ONLINE

Open

ALL

MRITP

Thursday, 23 June 2022

8.30am - 4.00pm

Riverside Hotel, Brisbane

Open

Townsville

Risky Business

Thursday, 14 July 2022

6pm

Cowboys RLFC

Open

ALL

TOP Awards Dinner

Tuesday, 26 July 2022

6pm

Brisbane City Hall

Open

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

ResortNews | June 2022

EVENTS & APPOINTMENTS

Open

DEVELOPMENT NEWS

Game changing decision

by council will bring surfing to FNQ Port Douglas Shire Council has approved a 164-room hotel and resort, featuring a wave pool, freshwater swimming lagoon, aqua park, and 90 selfcontained villas and surf cabins on the Captain Cook Highway, south of the Mowbray River. The development, spear-headed by local businesses NorthBreak Developments and Hunt Design, is expected to inject more than $117.5 million worth of wages into the local economy over the construction period. Once operational, Northbreak estimates the resort will create 740 full time jobs, attract 128,680 visitor nights and generate $79.2m in direct expenditure each year. Douglas Shire Mayor Michael Kerr said the wave park would be a catalyst for a new era of tourism in Port Douglas and Daintree. “This transformative project will significantly lift summer tourism by creating a world-class surfing experience and year-round swimming option down the road from Port Douglas,” he said. “With no recognised surf breaks in the tropics, Council believes this once-in-a-generation development will attract a wave of new visitors and keep our beautiful pocket of the world at the forefront of travellers’ minds.” “The wave park fits in nicely with our sports tourism focus and is perfectly positioned in the Mowbray Valley to complement the Wangetti Trail development.” Council’s planning team has worked closely with NorthBreak and Hunt Design on the development application since late-2020.

Glenn Piper with his family at Hook Island. Photography: Steven Woodburn

A new eco resort promises a new lease of life for Hook Island Founder and CEO of Meridian Australia, Publican and Director at Harbord Hotel, Glenn Piper has acquired the leasehold Whitsundays’ spectacular Hook Island. The landmark sale will see Piper give the holiday destination, devastated by cyclones in 2011 and 2017, a new lease of life, as he transforms the property into a new world-class eco-lodge, with food and beverage at the heart of the experience. Hook Island, nestled between Hayman Island and Whitsunday Island, is a stunning idyll of lush national park, picturesque bays, secluded beaches, abundant wildlife and pristine fringe reefs. Since the closure of the popular holiday resort Hook Island Lodge in 2013, visitors have been restricted to the reefs around the island enjoying the beauty of the waters.

Now a blank canvas, the expansive 9.3-hectare area with an enviable water frontage and two private beaches property, will be given a new lease of life as a world class eco resort, with a food & beverage experience to rival the best in the world. This will be the only private operation on the island and will welcome the first visitors to the island in a decade. Glenn Piper said: “There’s nothing quite like it. Very few locations in the world can offer this level of natural wonder. I want to create an experience that befits the beauty of the Island, and the Whitsundays - respectfully and sustainably. I’m energised at the thought of creating a world class hospitality experience for this slice of paradise and cannot wait for the first guest to step onto the sand”. Having recently taken on the leasehold of Q Station, which sits on 30 hectares

The applicant has committed to a range of sustainability initiatives such as solar panels, rainwater harvesting and landscaping. NorthBreak is also required to meet their obligations to offset their demands on Council’s water supply and sewer network, as well as contributing towards planned trunk infrastructure to service the Shire. Mayor Kerr said the wave park development would play a vital role in helping the region recover from the economic shocks felt during the COVID-19 pandemic.“A key goal of our 2021-2024 Economic Development Strategy is to expand and diversify our tourism offering, particularly by capitalising on lucrative sports tourism and adventure markets,” he said. “I would like to congratulate the applicants and our planning team for the immense amount of work put into this game-changing project.”

Hook Island. Image courtesy of Tourism Whitsundays

DEVELOPMENTS

ResortNews | June 2022

Courtyard by Marriott is coming to Western Sydney Aerotropolis Marriott International has signed an agreement with 1990 Developments Pty Ltd to open the Courtyard by Marriott Western Sydney Airport, the first hotel expected to open in the Aerotropolis at Western Sydney International (Nancy-Bird Walton) Airport. Construction on the AU$70 million 200key hotel is anticipated to be completed in 2026, to coincide with the opening of Sydney’s second international airport.

Courtyard by Marriott Western Sydney Airport. Image Supplied.

on the headland on Sydney’s Northern beaches, Piper is committed to delivering and respecting iconic venues that hero Australian beach culture.

“Council always welcomes investment in new tourism products and experiences to enhance the already unique portfolio of what the Whitsundays has to offer”.

“It is a great privilege to act as the custodian of these sites and to preserve the rich history that each embodies. With it comes a huge responsibility and there are important environmental, historic and local factors to consider. We are currently in the process of extensive research and consultation as part of the work on Q Station and will soon begin a similar process for Hook Island; it is incredibly rewarding and inspiring to uncover the stories and facets that will shape its future”.

Tourism Whitsundays Chief Executive Officer, Rick Hamilton also welcomed the development commenting that “The new eco resort will further enhance the reputation of The Whitsundays and Queensland both domestically and internationally as the must do destination in Australia”.

The Hook Island acquisition closely follows Piper’s recent purchase of the Merewether Beach Hotel, an iconic beachside institution in Newcastle, as well as the transformation of the Harbord Hotel in Sydney’s Freshwater. All four properties have a close affinity to Australia’s coastline which Glenn holds close to his heart. “Whilst each property has its own unique soul and character, they all have a deep connection to water, rich history and community significance. I’m guided by an unwavering commitment to create experiences that live up to and celebrate their spectacular settings and have a meaningful place within their respective communities”. Whitsunday Regional Council’s Acting Major, Mike Brunker, said of the acquisition

Piper has partnered with a small syndicate of investors on the purchase. He will receive the keys in August and will immediately commence his research and consultancy process to inform the future vision and concept for Hook Island.

Sunshine Coast developer Scott Juniper’s Cube Developments has been given the green light It has been reported that a $75-million beachfront residential project with six penthouse apartments, has been given approval by the Sunshine Coast Council. The six-storey, 56-apartment development, Oasis will sit on the last remaining development site in Bokarina Beach between Caloundra and Mooloolaba. Juniper told The Urban Developer construction was expected to begin by late September with completion due in early 2024.

Hook Island. Image courtesy of Tourism Whitsundays

ResortNews | June 2022

DEVELOPMENTS

The Aerotropolis will serve as a hub of industry and innovation, attracting local and global companies drawn to the enormous potential of the Western Parkland City and the airport that serves it. Richard Crawford, Vice President, Hotel Development, Australia, New Zealand and Pacific at Marriott International said: “Western Sydney International Airport is one of Australia’s most important infrastructure projects, and today we are delighted to announce the first hotel to be part of the new Aerotropolis.” The new-build Courtyard by Marriott Western Sydney Airport will be designed by leading multidisciplinary architecture, design and urban planning firm, Hassell Architects. The hotel is expected to feature 200 thoughtfully designed guest rooms, an all-day dining restaurant, café & bar. Additional plans call for a well-equipped fitness center and 580 square-meters of meeting and ballroom space. Following a competitive operator selection process conducted by global commercial real estate and investment company CBRE Group, Marriott International was awarded a long-term Hotel Management Agreement to operate the first international hotel brand in the region. Courtyard by Marriott Western Sydney will be developed and owned by 1990 Developments Pty Ltd (controlled by the ASX listed Maas Group Holdings and Gibb Group). “We have been developing commercial, industrial and large format retail property for more than 12 years and are now very excited about being a new entrant to the hotel sector. We are thrilled to be collaborating with Marriott International on our first development and look forward to expanding our involvement with this market-leading company,” said Matt Gibb, Gibb Group Managing Director. “We look forward to being a part of delivering what is likely to be the first hotel servicing the Western Sydney International Airport. Our Architects Hassell and our in-house delivery team welcome the challenge of now designing and developing a most recognisable, yet functional hotel that Sydney’s travellers will benefit from for many years to come” said Matthew Thiselton, Gibb Group’s National Director of Development.

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MANAGEMENT RIGHTS Gold Coast Lakeside on Varsity

Betterall Holiday Management P/L

V arsity Lakes

MRS

Grand Bay

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Labrador

Sandringham Apartments

Risecorp P/L

Bundall

The Sun and Law Family Trust

Parkinson

Brisbane Parkinson Residences

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For membership enquiries: national@arama.com.au | www.arama.com.au

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MOTELS & OTHER

1300 ARAMA Q (1300 27 26 27)

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St George

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Kilcoy Motel

Redbank Plantation P/L

Kilcoy

WCH

Tropixx Motel

TOP 3W P/L

Ingham

Wanderers Holiday Village

Hampshire Property Group

Lucinda

Albert Hotel

S. Ende & M. Belle

Monto

Cairns Rainbow Resort

Vision Hotels P/L

Cairns

Oceanside at Hawks Nest

Frank Novella & Roslyn Mcerlane

Hawks Nest

Edward Parry Motel

M & L Kelly

Tamworth

Henry’s Quirindi

Quirindi One P/L

Quirindi

Inner City Melbourne

Shri Krishna Management P/L

St Kilda

Port Fairy Motel & Apartments

Undisclosed

Port Fairy

Dalvue Motel

Milind Patel

Terang

Comfort Inn & Suites King Avenue

Sagar Enterprises P/L

Sale

J-Corp Resort Investments P/L

Kununarra

Barry Clarke & Geoff Raines

Wallaroo

New South Wales

Management Rights Transactions

Victoria

Damian Quinn

One of the Sunshine Coast’s most experienced firms in on-site management rights transactions. • Commercial & Business Law • Litigation & Dispute Resolution • Wills & Estate Planning

Western Australia

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Kimberley Grande Resort

South Australia Wallaroo Beachfront Tourist Park

SUNSHINE COAST & QUEENSLAND WIDE

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

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

PROPERTY

ResortNews | June 2022

Ocean Side Motel ResortBrokers is proud to introduce the new owners of the Ocean Side Motel in the idyllic location of Hawks Nest. After seven years of owning this 31-room property, just 70 metres from pristine Bennetts Beach, Lindsay Feng has sold to experienced operators Frank Novella and Roslyn Mcerlane. The new operators are looking forward to their next opportunity and plan to perform immediate refurbishments. All parties were extremely happy with the outcome and serviced provided by broker Jacqueline Featherby. “Jacqueline was available 24/7. No questions or queries were a problem. Answers were quick and prompt. Your friendliness and attention to detail during the sale process was first class. Other brokers in the business should take a leaf out of your book” - Frank Novella From left to right; Frank Novella, Lindsay Feng, Jacqueline Featherby, Roslyn Mcerlane and Adrian Gordon.

Dalvue Motel, Terang

Comfort Inn King Avenue

After 35 years at the Dalvue Motel, Terang,

Tourism Brokers Agent Annette Adams & Reg

the owners are hanging up the keys to

Partington, welcome the Bhushan family

retire from their loving property. They will be sadly missed by their guests, suppliers and the local community, where they have formed long term relationships worth. Having deservedly earnt their long service leave, they are looking forward to sleeping in and attending to their hobby farm.

to the Comfort Inn King Avenue, Sale. A family with a growing commitment to the accommodation industry, already operating Comfort Inn Seymour through their thoroughbred stable. Not only in ownership, but also in skills, the hallmark vision of Joshi and his family is to supply their customers with a memorable experience that brings them back time and time again. Our thanks to vendors, Diana and Ziko Radjenovic

Both were very happy with the price, attention and service they

who brought to market such a noteworthy opportunity, and

received from Tourism Brokers, representative, Andrew Cronin.

now continue in the industry at their Frankston Motel.

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

ResortNews | June 2022

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

Bali beauty brought to Bila Vista By Grantlee Kieza, Industry Reporter

This month from the beautiful boutique property, Bila Vista Holiday Apartments at Bilinga on the Queensland-NSW border, onsite manager Malisa Horwood tells Grantlee Kieza how breaking her leg helped her find her feet in management rights. What was your experience in management rights before taking over Bila Vista? Mum and Dad had management rights at Surfers Paradise when I was growing up. My brother works in body corporate, and I worked in real estate when I first left school and so, it wasn’t anything new. I broke my leg two years ago and it made me reconsider what I was doing for work, after a career in retail with boutiques in Sydney I decided to return to real estate. After I completed my licence while I was convalescing for nine weeks when I couldn’t walk, my husband Warren and I began to take an interest in management rights again. When we decided it was the right time to proceed it took us 18

Warren and Malisa Horwood

months to find a property that we really wanted on this part of the coast. Warren is a carpenter, so we saw management rights as the ideal business for us to combine our skills. He enjoys the caretaking side of things, and I am well suited to the admin and front office duties because I like people and love a chat.

How long have you been running Bila Vista? Fourteen months. It’s been a good experience so far. It was a good

time to take over after the main onslaught of COVID had passed. We’ve had no trouble so far in the business and we can’t complain.

Are you from the Tweed area? No, I’m from Sydney but we moved to the Gold Coast 20 years ago. Our son Nathan was seven and our daughter Tabatha was three, and we made the decision to move up for the lifestyle. We’ve always lived around Currumbin and the Tallebudgera Valley. We prefer the southern side of

the Gold Coast because it’s still very much ‘untouched’ and a lot quieter than other parts of the coast. We don’t have the big highrise properties here, but we do have proximity to the airport and that’s handy. It’s a perfect spot for our guests and many of them just walk here from the airport, how about that for location! At Bila Vista our guests appreciate the homely feel of the spacious units and enjoy relaxing by our lagoon style heated pool and spa. They like nothing better than taking a walk along the ocean

Congratula�ons Malisa and Warren. Flood Legal are proud to partner with you as your trusted legal advisors. Thank you for your kind words. Leaders and experts in Management Rights

I couldn’t ﬁnd anyone more professional than Sharon, her knowledge of Management Rights is impeccable and is she is always available to answer questions. – Malisa Horwood, Bila Vista Holiday Apartments

Buying and Selling

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Contact Sharon Flood, Director | M 0459 070 871 | T 02 6674 5118 | E sharon.flood@floodlegal.com.au | W www.floodlegal.com.au

PROFILE

ResortNews | June 2022

to the North Kirra Surf Club to find the best view on the coast.

What was the appeal of management rights? We recognised that it was a business my husband and I could run together, and it would give us more time with each other. He was working as a carpenter, putting in long hours and I was working long hours too, so we never saw each other. I thought since I like people-oriented jobs and he likes building, working with his hands, and looking after places it would be a good fit. With our kids grown and off our hands,

we saw it as a business that we could put in as much time as we wanted and do it together. I was right because it does suit our lifestyle… I like that in the morning I can take the dog for a walk, go to the coffee shop, and plan out my day to suit. I like that we can pick and choose our hours. The flexibility is great but then when it’s busy we are always prepared to get stuck in. Of course, the good returns in management rights also attracted us to the industry. Coming from retail it’s great that

you don’t have to carry stock. It’s a lot easier in that regard.

domestic short stay business quickly and successfully.

How were you affected by COVID?

What was it about Bila Vista that enticed you to buy the management rights?

We dodged the worst of it. However, when we first moved in, we were still experiencing some border closures, but we worked around them by moving permanent residents into our holiday accommodation with six-month leases. This allowed us to ride the wave. It is a mixed building, we have 42 rooms, with 16 rentals and many of our holiday makers come from Brisbane, so we were able to restart the

I fell in love with the tropical feel of the property with all the palm trees. My favourite holiday spot is Bali, it is where we used to go on holiday two or three times a year. Bila Vista has the same sort of energy as Bali and the property is centred around the gorgeous tropical pool which is a very big drawcard for guests.

BILA VISTA

10% Discount for Resort News readers when booking direct

Ph: (07) 5536 9099 info@bilavista.com.au 37-43 Golden Four Drive, Bilinga Qld 4225 www.bilavista.com.au ResortNews | June 2022

PROFILE

What advice would you give someone buying management rights for the first time? Anyone who goes into management rights must be ready to work when you need to and then enjoy the time you have when it’s a bit quieter. Most importantly you need to be a people person, you can deal with anything so long as you get on with people.

What about when you and Warren want to go away for a holiday? How do you arrange things? I put my daughter Tabatha through the training to get her real estate licence and so, when we want to go away, she can step up and look after the place. The challenges of COVID taught us all that we can do everything by computer.

We can have self-check-ins and I think people have adapted to that. I use a self-checking system and it helps, regardless of COVID. Sometimes a guest will turn up late at night and be happy to check themselves in, they arrive off the last flight, walk across the road, check in without seeing anyone and are very happy to go to their apartment like they’re going home, especially if they’ve had a big day or a long flight and they’re tired. If I need a day off, Tabatha helps us out and if we’re tied down with cleaning (and you get days when you’re really busy) Tabatha rolls her sleeves up to give us a hand.

Are you saying that management rights is a great business for families? Absolutely. And we have some other great people who also help, I have a terrific cleaner who lives on site and that’s

The good returns in management rights also attracted us to the industry

such a bonus because good cleaners are really had to find.

What do you see as the future of management rights? I don't think it will ever disappear. I’m dealing with 42 owners now, and they all have different personalities. If you don’t have an

PROFILE

onsite manager, I don’t see how that would work. You need that person in the middle who can resolve things or take issues to a meeting, especially in the big buildings with a lot of owners. That’s why the business of management rights is so important.

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PROFILE

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

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ResortNews | June 2022

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

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Protect & Grow

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BRISBANE GOLD COAST SUNSHINE COAST NORTH QUEENSLAND

NORTHERN NSW

Resort News, June 2022

Articles inside

Bila Vista: Bali beauty brought to Bila Vista

Development News

Events

Soft ware Solutions

Good Governance

Tourism Report

Legal Ease

Thinking MR

Motel Market

By All Accounts

State Report

SCA Report

Person of Interest - Pat Bell: From beneath the waves to high-rise returns

ARAMA Report

Q&A: Working from home & businesses-in-strata arrangements

Interveiw – Jim Li: From management rights to taming the dragon

Special Report: Calls to licence body corporate managers

BCCM Report