Resort News, January 2023

The legal stu ...

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

Advertising Conditions

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

Disclaimer

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

Resort News, its publisher, editor and sta , 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 permi ed 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.

© 2023 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the wri en consent of the publisher.

Welcome to the first Resort News of 2023. Are you ready to kick off an even bigger and better year?

Bigger and better is a ‘big ask’ because my 2022 bulged at the seams. It was an exciting year and not just professionally, our family celebrated one wedding, one engagement, our fourth child’s graduation from university, and ‘himself’ and I celebrated a ‘high five’ kind of marriage milestone, our 30-year anniversary.

Our publications, Resort News, AccomNews, School News, and our property portal AccomProperties continued to shine, and back-toback deadlines kept the team on its toes.

We were sad to say goodbye to our School News editor Rosie Clarke who left to focus on her PHD and academic career. It was over 14

years ago that she started writing for Resort News, she was a trainee while still at school, learning skills from respected original Resort News editor, Graham Vercoe RIP. Over time, Rosie has written for and edited all our publications, and she will be much missed.

Last year had me travelling, from Las Vegas to New Zealand and from coast to coast throughout

Australia, attending a plethora of events and the year ended on a high with Resort News attending the PRET Awards 2023 I was also given the honour of presenting awards to some of the best onsite managers in the business, on page 30 you can read all about this spectacular event. 2023 is likely to be just as jam packed for us all, with promises of bigger and better industry events and if predictions of tourism numbers and occupancy levels are to be believed, the management rights industry and the whole accommodation sector is in for an epic year.

One thing is for sure, 2023 will be a big year for news. Importantly Resort News promises to continue to keep you informed of the industry’s most pressing issues, including the ongoing battle led by ARAMA, against those who are keen to mess with MLR term agreements.

But what’s in this first edition of 2023?

Of course, you’ll find all the usual important industry updates and regular columnists but after welcoming Kelley Rigby back to ARAMA last month, we thought it would be the perfect time to feature Kelley in our Person of Interest article on page 14.

And onsite manager profile?

I love to meet new MLR managers and share their unique back stories and it’s even more enjoyable to find one who is not only a fellow Brummy but also an Aston Villa supporter! On page 46 read all about how Tina Sutton and her husband Mick Herden found their way to Carool Apartments in Coolangatta. Enjoy your January edition of Resort News Cheers, Mandy.

Mandy

Industry survey finds resident managers deliver better outcomes

By Trevor Rawnsley, CEO, ARAMA

Once again, I’d like to remind ARAMA members that the industry survey conducted by international accountancy group Deloitte, demonstrated better returns for owners from properties managed under the Management & Letting Rights (MLR) model.

Overall, the survey responses indicated that a resident manager acting in the role of an onsite letting agent delivers a better weekly rental return than an outside agent. The resident manager also performs the caretaking functions in a more cost-effective manner when compared to other professional outside alternatives.

The Deloitte Survey is available to members as a four-page fact sheet from the ARAMA website library.

One of the most striking outcomes from the report was that “onsite management rights models operating in strata and community title properties are understood to offer owners numerous advantages, including higher rental yields and lower caretaking costs.”

This is a powerful document that enables ARAMA members to debunk the incorrect assertions that are made by a small minority of owner-occupiers, those who continue to oppose MLR in the belief that it can save the scheme money.

The Deloitte survey demonstrates

that quite the contrary applies. Generally, MLR saves the scheme money and delivers better rental investment returns.

MLR is in the best interests of the scheme, and we consider that any attempt by committees or their advisors to remove them is not acting in the best interests of the scheme.

The Deloitte Fact Sheet has been produced to provide information that is of a general nature and should not be considered directly related to any one scheme.

Members may wish to undertake their own comparison of the rental performance of their onsite letting pool, versus those units which are managed by outside agents, either within their scheme or more broadly in the local market.

Sites such as Realestate.com. au or Domain.com.au can provide some easy to obtain comparisons to draw on.

Write to your current clients and point out the comparisons that are specific to your particular scheme and where you can demonstrate that you are outperforming the comparative rental market.

Members may wish to run a similar set of comparisons regarding the role they perform as a caretaking

service contractor. Members are encouraged to obtain comparative quotations from professional garden maintenance and cleaning contractors and compare the cost of engaging suitably qualified and capable outside service providers who can carry out tasks in association with the caretaking agreement and see how much more they will cost the scheme.

Measure the cost of security, preventative maintenance and general vigilance, and see how much the comparison is. Make sure those you compare costs to are fully insured, with all the relevant business registrations and licences, otherwise it’s not a fair comparison.

Members who have completed this ‘market comparison’ exercise are staggered at how much more outside service contractors would cost the scheme compared to what they provide as the onsite caretaking service provider.

Further research indicates that on 87 percent of occasions the onsite manager is found to outperform an alternative offsite service provider.

These ‘market comparison’ exercises are good to perform on a regular basis (perhaps even every five years) as they can assist a resident manager

to demonstrate the value that they bring to a scheme and to the unit owners in a proactive and tangible way.

The Deloitte survey is available for members in the ARAMA members resource library and available for members to access and send to their unit owners.

Members may also wish to review other industry data on the ARAMA Members Resource Library which is packed with useful information to assist them to market their business to their clients (unit owners) and/or potential clients.

Some of the resources you will find included in the section titled “Advantages of Onsite letting Management” are: a comparison of onsite versus offsite versus self-managed; suggestions for communications; and correspondence with lot owners regarding the benefits of a resident manager in a holiday complex and/ or a residential complex.

The Deloitte survey was completed by lot owners throughout Australia and the results, as outlined in the fact sheet, highlight the key benefits of onsite rental management in a management rights context, and estimate the added value that management rights bring to lot owners.

61 percent estimated that onsite caretakers save lot owners up to $500 per lot per month

More than 75 percent of respondents surveyed estimated that an onsite letting agent: generated higher yields than an offsite letting agent, and more than 97 percent of respondents surveyed estimated that onsite caretaking directly reduced costs for owners.

That’s understandable because resident managers typically have a large amount of skin in the game, both in their business and the unit in the complex they have purchased along with the management and letting rights.

As one of the lot owners surveyed remarked in the report,

resident managers “are handson and are the eyes and ears of my investment property. They have a true vested interest with a lot larger investment in the business than that of an individual lot owner.”

The survey respondents identified that the most common area in which an onsite letting agent added value to the owner was in their intimate knowledge of the complex.

In fact, 96 percent of the respondents strongly agreed that this enabled onsite letting agents to be proactive in addressing owner concerns.

Almost all the lot owners surveyed said that an onsite letting agent adds to the customer experience, being available for 24-hour response and assistance and offering first-hand knowledge of the complex and surrounding areas.

They said that this increased the customer return rate and resulted in higher occupancy rates and better yields.

They also said that because of the constant supervision provided by an onsite manager, the probability of rental breaches and poor behaviour from tenants and guests decreased.

It also meant a higher level of information was available for owners.

Almost all the respondents also agreed that because the resident manager acting in the role of an onsite letting agent had financial and vested interests in keeping costs down, they strived for the most costeffective means of marketing and maintaining the scheme.

Of all the survey respondents asked to estimate how much value a resident manager acting in the role of an onsite

caretaking service provider added to owners, 61 percent estimated that onsite caretakers save lot owners up to $500 per lot per month.

More than 25 percent of lot owners estimated the saving was up to $1000 per lot per month, while seven percent estimated that onsite caretakers saved lot owners between $1000 and $2000 per lot per month.

One of the respondents told Deloitte: “The onsite manager can and does arrange for maintenance to be carried out much quicker and usually much cheaper than that arranged by offsite service providers.

“An onsite manager interacts with tenants and can quickly identify a problem with a tenant or the unit which can result in less financial loss to the unit owner.”

The numbers were also impressive when it came to long-term rentals, with 64.7 percent of respondents surveyed considered that they received added value of up to $250 per lot per month due to the work done in relation to the efficient delivery by the onsite caretaking service provider.

and selling Legal due diligence Agreements and variations

Options and top-ups Dispute resolution

Be warned: Inspectors in NSW targeting property management

have issued non-compliant agents/managers with penalty infringement notices totalling $16,500. Failure to comply with the supervision guidelines (referred to below) carries a penalty of up to $22,000 for a corporation or $11,000 in any other case.

the withdrawal of funds from the trust account;

By Col Myers, Small Myers Hughes

Onsite residential property managers and building managers holding full real estate agents’ licences to conduct letting - beware!

The Office of Fair Trading has been taking compliance actions against agents (including onsite residential property managers) that do not meet their obligations. Inspectors

Under the Property and Stock Agents Act 2002 (“Act”), every place of business must have a Licensee in Charge (“LIC”). A LIC is responsible for the proper supervision of the business and must hold a Class 1 licence (noting however, that an Onsite Residential Property Managers licence is an equivalent of a Class 1 licence). Corporations or individuals who run a business under a Class 2 licence must employ a Class 1 licence holder to be the LIC of their business.

The key requirements when appointing a LIC are:

• all parts of a business must be supervised by the LIC;

• only a LIC can authorise

• the LIC must ensure proper supervision of the business in accordance with the Secretary’s Guidelines for the Proper Supervision of the Business of a Licensee (the “Supervision Guidelines”);

• if a nominated LIC is not available for whatever reason, NSW Fair Trading must be notified of the replacement LIC within 5 business days.

Why have the Supervision Guidelines been introduced?

Licensees who run a sales/ letting business have a legal obligation to ensure the proper supervision of their business.

The NSW government takes the view that it is vital that businesses are properly supervised, particularly as large sums of money in trust

accounts may be involved. Poor supervision can cause distress and financial loss for consumers. It can also lead to claims of negligence, misleading conduct and fraudulent use of trust money - for which substantial maximum penalties apply.

The Supervision Guidelines sets out the government’s requirements for proper supervision of a business, including the steps that a LIC must take to prevent fraud and misrepresentation.

These requirements include:

• supervision of employees engaged in the business; and

• establishment of procedures designed to ensure that the provisions of the Act, the Regulations and other relevant laws are complied with; and

• monitoring employees’ conduct to ensure that those procedures are being followed.

Every LIC must:

• Prepare and maintain a document as part of the operational procedures that clearly identifies the LIC of the business and the dates on which that person was the LIC;

• ensure that details of the LIC (including the dates that person commenced and finished being a LIC) are notified to the Secretary in accordance with the Act;

• prepare and maintain operational procedures for the purposes of providing adequate supervision of business processes and employee conduct across their business;

• ensure all operational procedures of the business are reviewed at least once each calendar year to ensure they are sufficiently robust and comply with the law;

• ensure all persons engaged in the business are familiar with, and comply with, all operational procedures;

• prepare and maintain written procedures for the review of their trust account and daily or next day banking practices with respect to the receipt of trust money;

• conduct a review of their trust account transactions at least once per calendar month to ensure that the amounts deposited into and withdrawn from the trust account have been verified using the relevant financial institution’s records as source documents, that all persons who have access to the trust account system have separate logins and their passwords are not shared with anyone and that any adjustments shown in an end of month reconciliation can be explained with evidence;

• ensure that all rental (and sale) money is paid into the trust account and rental money owing to a landlord under a residential tenancy agreement (less any authorised expenses) is paid to the landlord at the end of each calendar

month, unless instructed otherwise by the landlord;

• maintain a record of all cash transactions, including, at a minimum, the cash amount received, the name of the person who received the cash from the payer, the name of the person who prepared the daily banking of those funds, the name of the person who deposited the funds in trust at the financial institution and the trust account details;

• prepare and maintain written procedures for the verification of the identity of a party with whom it is proposed to enter an agency agreement and a record must be kept of all documentation relied upon to verify an individual’s identity;

• if applicable, in the case of a person who has the legal right to act on behalf of the owner and where that person is not listed on the certificate of title, ensure that the original or a certified copy of the document which confers the power of sale or management on that person is sighted and a copy of the document retained.

Requirements for verifying the identity of a person

In verifying the identity of a person, a licensee must sight an original or certified copy of:

• a primary proof of identity document; and

• two secondary proof of identity documents; and

• a document providing

proof of legal ownership of the property.

A “primary” proof of identity document is listed as:

• a current Australian driver licence; or

• a current photo card issued by a State or Territory Government agency; or

• a current Australian passport; or

• a current nonAustralian passport.

A “secondary” proof of identity document is listed as:

• a current Medicare card; or

• a current credit card; or

• a current passbook or an account statement from a bank, building society or credit union up to one year old; or

• an electoral enrolment card or evidence of enrolment not more than two years old; or

• a gas, electricity or council rates bill up to one year old; or

• a water rates notice up to one year old.

A document that is “proof of legal ownership” of the property is:

• the certificate of title for the property; or

• a current council rates notice up to one year old; or

• a land valuation notice, up to one year old.

A LIC must also prepare and maintain written procedures that ensure all communication during the provision of services under an agency agreement is with the owner of the property

or the person with the legal right to act on the owner’s behalf.

A LIC must also prepare and maintain written complaint handling procedures.

Employee supervision

A LIC must also:

• prepare and maintain written procedures outlining the respective roles and responsibilities of licensees and employed certificate holders in relation to the preparation and signing of agency agreements,

• be responsible for verifying that all persons engaged in the business have completed all continuing professional development courses they are required to undertake (according to the secretary’s requirements issued and notified to licensees and certificate holders under the Act), as well as ensuring that the applicable work experience requirements in accordance with the Property and Stock Agents (Qualifications) Order 2019 have been met, and also recording the length of time an individual has been engaged by the business.

Gifts and benefits register

A LIC must also prepare and maintain a register of all gifts and benefits received by persons engaged in the business in accordance with the Act.

What you need to do now!

If you haven’t already done so, every onsite manager needs to urgently comply with the Supervision Guidelines or risk a substantial fine if an inspector knocks on your door.

What are the key requirements of the Supervision Guidelines?

Committee spending limit versus major spending limit

Our Community Education and Information Unit has noticed the terms ‘committee spending limit’ and ‘major spending limit’ are increasingly being used interchangeably. While it is true that both terms relate to body corporate spending, they are not the same. In this article, we outline key information about both of these spending limits, while also highlighting their distinct functions.

the work if the cost falls within its spending limit.

It is open to the body corporate to set its own committee spending limit if it wishes. To set the committee spending limit, an ordinary resolution of the body corporate at a general meeting is required. No minimum or maximum limit is prescribed under the legislation.

If a committee is planning to refurbish the communal gym, for example, it may need to replace worn carpets, repair ceiling fans, and repaint walls.

whether a body corporate has budgeted for the expense.

By the Office of the Commissioner for Body Corporate and Community Management

Committee spending limit

The committee spending limit is used to determine how much money a committee can spend.

For example, if a committee obtains a quote for maintenance, a committee resolution will generally be sufficient to approve

If no committee spending limit is set by the body corporate, it is calculated by multiplying the number of lots in the scheme by $200 - therefore, in a scheme with eight lots, the relevant limit would be $1,600.

Dividing projects

The legislation prevents committees from breaking up a single project into separate components to bring costs within a committee spending limit.

As each of these tasks is under the umbrella of the gym renovation project, the committee must look at the cost of the whole project rather than the individual proposals that make up the project.

Committee spending that is not permitted

It is important to recognise that, even if the cost of a particular proposal is within a committee spending limit, that alone does not constitute an automatic green light for the committee to authorise the spending - there are other considerations.

Arguably, the most significant of these considerations is

Essentially, funds should be available before a committee can vote to spend them. If there is not enough in the budget for a particular expense, a special levy can be raised to pay for it at a general meeting by ordinary resolution.

Alternatively, the body corporate may consider voting to amend its existing budget at a general meeting.

The legislation also sets out ‘restricted issues’ for committees. A committee cannot vote on restricted issues, even if they involve spending within the committee spending limit.

For instance, where the legislation specifies that an ordinary resolution, special resolution, or a resolution

without dissent is required, the committee cannot approve these motions, as they are general meeting resolutions. A clear illustration of this point is the distinction between maintenance and improvements. On the one hand, a committee can authorise a motion about maintenance if the cost is within its spending limit and there is a provision in the budget. Conversely, if the motion is about an improvement to common property, the cost of the improvement determines which resolution range it falls into - the higher the cost, the more likely it is to require an ordinary resolution or a special resolution at a general meeting.

You can read more about restricted issues for the committee and improvements on our website.

Spending exceeding the committee spending limit

If the cost of a proposal exceeds a committee’s spending limit, it usually needs to be authorised at a general meeting by ordinary resolution. However, there are situations in which

a committee can approve spending above its limit without a general meeting. If all owners have given written consent, or the spending is needed to obtain or renew an insurance policy (and is not a restricted issue for the committee), or if spending has been authorised by an adjudicator to meet an emergency, a committee resolution is sufficient.

A committee can also authorise spending to exceed its limit if it is needed to comply with a statutory order or notice given to a body corporate, an adjudicator’s order, or the judgment or order of a court.

Major spending limit

In comparison, the major spending limit is only used to determine the number of quotes needed when considering a motion. Contrary to common misconceptions, it is not used to determine how much money can be spent.

A body corporate can set its own major spending limit by ordinary resolution at a general meeting. Again, there are no prescribed minimum or maximum major spending limits that can be set. If no

major spending limit has been set by a body corporate, it will be the lesser of $1,100 multiplied by the number of lots in the scheme, or $10,000.

Therefore, in a scheme with 11 lots, for example, the major spending limit would automatically be $10,000, as it is less than $12,100.

Spending exceeding the major spending limit

If the cost of a proposal exceeds a major spending limit, at least two quotes must be obtained.

However, if there are exceptional reasons why it is not practicable to obtain two quotes, for instance, if certain goods can only be obtained from a single source, one quote will be appropriate. The major spending limit needs to be considered when a motion is considered by the committee as well as the body corporate making a decision at a general meeting.

As with the committee spending limit, a body corporate cannot divide a single project into smaller proposals to bring it within the major spending limit. If the cost of the whole project

exceeds the major spending limit, two quotes are needed.

Where a proposal that exceeds a major spending limit is being considered at a general meeting, copies of the quotes must accompany the meeting notice circulated to owners, or, if the quotes are too large, summaries of the quotes and information about where the complete quotes can be inspected should be provided instead.

These proposals should also be listed on the general meeting agenda as a group of same-issue motions, as the two quotes are proposing alternative ways of dealing with the same issue.

We hope that this article has provided clarity on the distinct functions of the committee spending limit and the major spending limit. It is important for bodies corporate to grasp this distinction, as the incorrect application of these spending limits can result in unnecessary disputes.

You can read more about the committee spending limit and the major spending limit on our website.

Damian Quinn Isabella Mansell

Airbnb: Has time run out?

By Laura Bos, General Manager, SCA (Qld)

Former Prime Minister Malcolm Turnbull once spoke of wanting Australia to be more “agile, nimble and innovative”, before going on to reference his love for Uber, Airbnb, and other similar “sharing economy” platforms. This was almost a decade ago now, and certainly excitement was thick in the air about alternatives to traditional business models. The sharing economy was going to change everything for the better, or so it seemed.

Looking at this now, it probably feels a bit more like Enron than Google when it comes to a lot of these companies. Ridesharing is yet to really turn a profit and in the opinion of many, resembles the traditional taxi service it was purporting to replace through ‘superior service or pricing’. Food delivery apps have also rarely been profitable – notably Deliveroo has just exited the market. But perhaps the biggest cause for public policy concern out of all these sharingstyle apps is Airbnb.

Airbnb has been the cause of much disruption in our neighbourhoods and cities. As cities rush to find the regulatory solution to affordability problems, the Airbnb phenomenon is singled out as one of the key factors contributing to

disruption to neighbourhood, building amenities, and often property damage.

Put bluntly, a lot of people are not pleased with the current regulatory framework around Airbnb. Reports of disruptive parties, soaring rents, and anti-social behaviour are extremely common.

Various councils have tried, with what limited power they have, to reduce the number of properties being put into the short-term letting pool. The problem is though, councils do not have limitless resources to patrol every door, nor do we want them to. SCA (Qld) doesn’t support mass surveillance for any reason!

So, to paraphrase that muchloved tune from The Sound of Music: how do we deal with a problem like Airbnb?

Anecdotally, it is probably one of the biggest issues we face in the Queensland strata sector and there have been some very interesting solutions put forward.

Is management rights the solution?

The short answer is no. A management rights contractor

isn’t the solution, as they have no power to enforce by-laws generally, only monitor compliance with them. What are the alternatives then?

Empowering bodies corporate SCA (Qld) believes we need to empower committees. People who sit on body corporate committees generally live on site and committees have the power to enforce by-laws.

So the time is right to empower bodies corporate and their committees to substantially regulate or ban Airbnb within their communities. A threshold of a special resolution for such a bylaw would be a reasonable one.

Whether it’s an ability to outright ban, to enforce scheme by-laws against absentee owners of Airbnb let properties, or to regulate the fashion in which Airbnb is conducted in a scheme, the easiest way to deal with this problem is to grant lot owners community autonomy.

At present s 180(3) of the BCCMA reads:

“If a lot may lawfully be used for residential purposes, the

by-laws cannot restrict the type of residential use.”

This is a clear legislative prohibition on a by-law banning short-term letting, which has been upheld in adjudicators’ orders.

The law is fluid and society is too. At the time of its drafting, the BCCMA was world-leading legislation and the notion of pressing a few buttons on a smartphone to book a party house for you and 15 mates in a unit complex in suburban Brisbane sounded like stuff that belonged in Star Trek

Yet here we are. This exact hypothetical is now one of the most significant issues in Queensland, with the State Government announcing a broad and sweeping inquiry into Airbnb and its effects on the Queensland economy.

Whilst SCA (Qld) can’t preempt the outcome of that inquiry, what we can say is that we will be fighting hard to resolve this issue in bodies corporate and supporting the State Government to consider empowering them to solve this problem themselves.

Kelley Rigby: The unstoppable wonder woman of management rights

By Grantlee Kieza, Industry Reporter

One of the friendliest and most familiar faces working at the frontline of the management rights industry is Kelley Rigby. This month Resort News got to know her even more...

Despite her unlimited energy and contagious passion for Management and Letting Rights (MLR) Kelley is also immediately relatable. She has had a long history in management rights and is not only a successful, hardworking business owner but also manages to juggle the demands of motherhood with a multitude of MLR responsibilities that includes a monthly column for us here at Resort News

However, a big part of Kelley’s appeal is that she openly admits that trying to ‘do it all’ is a struggle, she says it’s an ongoing challenge to “find a good worklife balance” and shares that she suffers from an occasional moment of “crisis of confidence”. Incredibly, such is Kelley’s passion for this industry her responsibilities now include a new role as ARAMA’s Manager of Membership Services. But as busy and ambitious as Kelley is, her “blended” family is always her number one priority.

“Family is my top job,” she told us, “I’ve got two little ones, Ryder who is three, Harley who is one, and three stepdaughters Reese, Charlie and Lily. My husband Scott is a FIFO worker, he is not home very often but when he is I love spending precious time with him. He is my calm and my sounding board; he makes me belly laugh and allows me, to just be me.”

In her spare time, Kelley says she listens to audiobooks, “because I don’t have time to read”! Her favourite book is The Resilience Project by Hugh Van Cuylenburg, a book she turns to when she’s in need of “a kick up the butt” when she feels “her gratitude for life slipping”.

On quiet evenings, Kelley likes to binge on her favourite TV show, Yellowstone. It’s an epic show about a family fighting to save their ranch and she says it always leaves her wanting to buy a farm and move to the country before reminding herself that she “has no idea about any of that”.

On music, Kelley says her favourite song is ‘Unstoppable by Sia”… Of course, it is!

Three years ago, “Unstoppable” Kelley started Letts Rebuild, which continues to make a real name in the industry.

What is Letts Rebuild’s main focus?

It’s essentially a company that specialises in business development for onsite managers.

The typical real estate agencies have BDM’s (Business Development Managers) full-time looking after and building their rent roll, Letts Rebuild gives managers an opportunity to have someone doing that for them. Our marketing techniques range from telephone communication, video marketing, text messages, email, and post.

Not only does it focus on winning over the investor into the letting pool but it is also educating them on the benefits of having an onsite manager, and at the moment this is something we feel the industry needs.

Kelley Rigby

Yes definitely. Managers go above and beyond, not only for their clients, for their community but also, they seem to forget to shout about it and we are there to do it for them.

Lett s Rebuild started by simply helping a friend (manager) in crisis because she was being targeted by an outside agent. I am so passionate about the industry and the people within it, and Lett s Rebuild is a perfect reflection of that.

We also send out newsletters for our clients to keep their community informed and educated on what the manager has been achieving.

Of course, we always add in a litt le article saying: “Why would you use an outside real estate agent who has to put your address in their GPS when there is someone onsite to look after your interests, someone

who knows the building back the front?” It takes time to build relationships though, and that’s what we do.

What’s your background in property?

My family is very heavily involved in residential sales throughout the Gold Coast. My Dad owned and operated real estate agencies in Broadbeach Waters & Robina. From the age of fi ve, I was in the office on weekend mornings with

Dad waiting for the phone to ring. Back then that’s what you did, as there was no internet or mobile phones back then.

I stepped into being Dad’s PA on weekends when I was 16 and still at school. It’s funny to look back and realise that we were in the management rights community even then and didn’t even know it. I say this because 85 percent of our sales were in complexes and my Dad refused to have a rent roll in his office so we were always

very liked by all the managers. I never knew why they liked us so much, but I do now! We were their friendly agents.

How did you become involved in the industry?

It has been 11 glorious years of being a part of our management rights community. It all started when I got a job working with the infamous Rusty Lush from the RAAS Group.

You obviously saw a need for that service within the industry?

Getting hitched: Kelley with husband Scott on thier wedding day.

Doing it all is amazing and fills up so many cups, but it definitely isn’t easy

My dad was working with the team at the time and that is how it all came about. I started as the receptionist and worked my way into RAAS Care, then ended up managing that department. RAAS, Rusty and Kerrie will always hold a very special spot in my heart, and I have so much gratitude to them for introducing me to this industry that now runs through my veins.

After RAAS I did a few diff erent roles, mainly in residential sales until I started at ARAMA in 2018. It was an honour and a privilege to be part of team ARAMA, and one of the many reasons I am back working with Trevor, fighting the good fight.

Trevor

PERSON OF INTEREST

my past and not allow it to control my future. This is something I’ve worked on, and I am so proud of where I am now.

Who inspires you the most?

Mums. All mums. The ones that stay at home and slug it out day in and day out, those that balance the work-mum life balance and all the others in between. They all inspire me and have my utmost respect.

What is the best advice you’ve ever had?

Stuff what others think! My husband constantly instills this in me, to not care what others say or think because they will talk about you no matter what, so you may as well go and live the life you want.

When I spoke to other women in the industry, they were pushing for me to take the role. There are so many women running management rights businesses these days. In many cases, the women are the faces of the properties, and they are the decision-makers. When I send out contracts from Lett s Rebuild it’s usually the women whose signature goes on the deal.

Management rights is also seeing a lot of young blood coming into the industry, and they are bringing a lot of enthusiasm and excitement. It’s great that we are now mixing it up a litt le bit in leadership roles and we can do things a litt le diff erently. I am very much enjoying seeing the women in the industry step up and start using their voices. We are privileged to have so many powerhouse women in this industry, many of which I am lucky enough to call mentors and friends.

Management rights has been under att ack a lot lately with threats to cut terms and other legislative changes proposed. How do you see the future of the industry?

I can’t think of the exact saying, but I believe crisis can bind a community closer together. We are seeing an influx of managers and business owners become members of ARAMA

as they rally around and show support. Power comes in numbers so this is exactly what we need from our community.

I won’t mention everyone by name, but Team ARAMA and its volunteers are dedicating many hours to ensure that we are being heard, on behalf of our members.

You ask me how I see the future of our industry, always positively…

We off er an outstanding business model to unit owners, one that no one else could provide.

You

That’s easy, the people within it.

As I have mentioned my background is in residential real estate and although I loved the work the industry never aligned with my values. Management rights and the community of people that is home for me.

Besides finding time to ‘do it all’ what have been your biggest challenges?

In work life it has been finding my confidence, stepping into my light, and not shying away from it for the sake of others around me.

In both personal and business, it still upsets me that not everyone in this world wants to see each other win. This is something I struggle with but am learning that is just life and people have their own journeys. Personally, my biggest struggle has been to embrace

What are you most proud of?

My husband, although he works away, he is one of the best dads around. He might not be there for every event but when he is home, he is 100 percent present and would do anything for his tribe. His very large tribe! We are an amazing team, and I am so proud to call him my husband.

What are Kelley’s top tips for life?

Take a breath, try and be in the moment as much as you can with business and family.

Doing it all is amazing and fills up so many cups, but it definitely isn’t easy.

What is happening in 2023?

It is going to be a big year for the Rigby household, no more babies but we have many goals we want to achieve personally and professionally.

ARAMA is a big part of who I am, so to be back in helping the industry in a bigger and better role is a dream come true.

As for Lett s Rebuild, it will continue to grow and create new ways to help managers in their businesses. Lett s Rebuild also plans to release an online course to help managers learn how to do what we do, this is very exciting and you heard it here first!

We will forever be evolving and learning at Lett s Rebuild.

has been pushing for more women to be in leadership roles at ARAMA and you stepped up as Gold Coast branch president?

are so passionate about management rights, where does that passion come from?

LEGAL EASE

The length of the term

problem

majority of schemes with management rights have very competent managers who work cooperatively with their body corporate, diligently carry out their caretaking duties for a fair remuneration and work hard to achieve the best possible returns for their investor owners. The campaign also ignores the fact that so reducing the term would decimate the businesses of all managers.

By John Mahoney, Mahoneys

The campaign by opponents of the management rights industry to have the body corporate legislation amended to reduce the term of management rights agreements has been the subject of much publicity, in Resort News and elsewhere.

Those opponents would have us believe that most community titles schemes have poorly performing managers and that reducing the term of their agreements to three, fi ve or 10 years (depending on which opponent you listen to) would solve all the problems.

The campaign of course ignores the fact that the overwhelming

There are of course a small minority of managers who through poor performance cause problems for their body corporate. However, as a recent panel discussion at a breakfast gathering hosted by the Australian Building Management Accreditation (ABMA) showed, these problems are not the result of the length of the term of the agreements and nor will they be fi xed by a reduction in the term.

After hearing from a lawyer pushing the term reduction argument a panel discussion took place, the panel consisting of two chairpersons of large bodies corporate (one of whom supported the term reduction campaign) and a barrister who mediates disputes between bodies corporate and managers. Those in attendance at the breakfast gathering were a mixture of supporters and opponents

After considerable, and sometimes heated, and passionate, debate and discussion, the conclusion reached was that the problem of a poorly performing manager was not a consequence of the term of the agreement but rather the lack of clarity in the agreement around the duties (leading to a lack of accountability) and the failure of the body corporate to properly assess an incoming manager’s competence. Neither of these problems will be fi xed by reducing the term.

Opponents also complain that terminating a management rights agreement of a poorly performing manager through QCAT is impossible, so a shorter term would obviate that problem, the agreement would simply run out. They point to various instances where bodies corporate have spent vast amounts of money trying to terminate agreements with QCAT ruling against termination.

I suggest that they should instead be looking at the way those bodies corporate and their lawyers conducted those actions, rather than blaming the system. The legislation and the agreements themselves set out clearly the circumstances and processes to follow to allow a body corporate to terminate such agreements. We so often

see bodies corporate launch into QCAT proceedings without following those processes. No wonder they fail.

Of course, there are other ways that a body corporate with a perceived poorly performing manager can deal with the problem which does not involve expensive litigation. Consultation and mediation, rather than confrontation and aggression, are better tools to deal with the problem and will likely lead to a better outcome. Unfortunately, such an approach is not one that finds favour with a dictatorial committee or litigious lawyer.

Whilst the outcome of the legislation review and the campaign by our opponents is still some time away I am quietly confident that the arguments and proposals that ARAMA has been putt ing forward will be well received and that there will be no reduction in the terms of existing agreements. There may well be some limits placed on the term of agreements being put in place by developers, more opportunities for a body corporate or a manager to review duties and remuneration, and measures to increase accountability – all of which are things that will improve the industry without decimating many hundreds of businesses.

Warning: Employee or contractor?

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

Equipment, tools, and other assets provided by the worker or provided to the worker

By Jonathan Hanaghan, Jonathan Grant Accountants

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

Commercial risks of worker

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

exclusively under their employer, was unable to engage others to perform his work, was subject to the supervision of the employer, and selling goods was a vital part of the business of the employer. These facts were weighed up against the fact that the worker submitted invoices, paid for the cost of their motor vehicle fuel, was not subject to PAYG tax, would determine his own hours, and was paid by commission on sales. Perhaps a normal person would be led to believe the worker is a contractor as employees do not invoice their employer and do not determine their own hours. However, the inability of the worker to subcontract, and the fact that he was not conducting his own business when he performed the work gave the court no option but to conclude that the worker was an employee.

for completed work does not confirm a worker a contractor. You must examine the working conditions of the worker – many court cases are not decided over whether the worker has an ABN, if there was a contract in place, or if the worker submitted an invoice, they come down to the factors mentioned before (multi-factor test) such as the exclusivity of the worker,

Do I have to pay my contractor’s super?

Even after you have confirmed that you have hired a contractor you may still be liable for super contributions on their behalf.

Getting it wrong can land you in big trouble!

Following the GFC, Australia has experienced an incredible surge in the amount of contract, temporary and freelance work - dubbed ‘the gig economy’. The underlying force behind an increase in contract related work rests on the grounds of higher flexibility, and lower costs associated with outsourcing work to a third party.

The difference between an employee and an independent contractor and an employee is not defined by a fine line. The relationship between yourself and your independent contractor is called a contract for service.

On the other hand, a contract of service is the relationship set between yourself and your employee. This is certainly a subtle difference but should not be considered lightly.

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

Ability of the worker to subcontract/delegate

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

Basis of worker’s payment

• An employee may be paid for

Control over the work

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

Independence of worker

• Employees form part of the business and therefore are not independent.

• Contractors operate their own business independently – they can accept or refuse additional work.

Other important factors to consider is the exclusivity of the worker and if the worker advertises themselves ‘to the world at large’. Exclusivity asks whether the worker is hired by numerous businesses or must remain exclusive to their employer. Advertising ‘to the world at large’ would likely mean that the contractor has a business name and logo in place, they have a work uniform with their own logo, and they have a storage shed or office that they can operate from.

For example, in Rabba v OekeGuy Pty Ltd T/A PeleGuy [2013] FWC 70, the worker was a salesperson who was required to sell products to convenience stores and petrol stations. The features that supported the salesperson as an employee were that he worked

Avoid the myths

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

Fact: The existence of an ABN does not confirm that a worker is a contractor. An employer may force an employee to obtain an ABN to make them look like a contractor and hence mitigating super and tax obligations. This is known as sham contracting. Breaching the sham contracting provisions under the Fair Work Act 2009 will land severe penalties and contraventions.

Myth: If a worker is a contractor for one job, they will be a contractor for all jobs.

Fact: The working arrangement and specific terms and conditions will determine whether a worker is an employee or contractor for each job. A worker could be an employee for one job and a contractor for the next job. It is paramount to make an ongoing effort to ensure there are no differences between your worker’s contract and their actual working conditions. If you hired a contractor last quarter, and suddenly their job role has turned into an employee, you must immediately start withholding PAYG tax on their behalf, pay the super guarantee minimum, and obtain work cover.

Myth: If a worker submits an invoice for their work, they’re a contractor.

Fact: The existence of an invoice

The Superannuation Guarantee (Administration) Act 1992 (Cth) states that a contractor is entitled to superannuation contributions if they work under a contract that is “wholly or principally for the labour of the person.” Employers will have to pay the 10.5 percent Super Guarantee minimum.

If you incorrectly classify an individual as an employee or contractor, you may be liable for:

• superannuation charges;

• additional payroll tax;

• penalties and interest;

• unpaid annual and long service leave; and

• compensation for unfair dismissal or other remedies.

Since the induction of taxable payments annual reports (TPARs) to the building and construction industry in 2014, the ATO has continued to strengthen its resources in order to close the gap of non-compliance. Recently, the ATO has broadened this scope to several other industries and their businesses. Businesses providing cleaning services must now lodge a TPAR. Clearly, this has implications for our businesses in management rights. If you have a management rights business and 10 percent or more of your income is for cleaning services, you must lodge a TPAR. Although, if you fall under this threshold, it is still a wise decision to lodge a TPAR nil report to avoid questioning from the ATO later down the track.

If you are still unsure if your worker is a contractor or an employee, please seek professional guidance from your accountant.

Do you engage in the services of independent contractors? Have you given thought to the possibility that they could be employees?

Information: Relevant and transparent

By Andrew Morgan, Motel Broker/Partner, Qld Tourism & Hospitality Brokers

When it comes to the operation of any business, being able to access financial data is paramount. How can a business owner know what is happening within the business if the information is not available or it is unknown how to access it from the system?

It may be the case where the system being used can produce one hundred reports that all provide different information. That is great, but often I see business owners/operators really only finding three or four of these as being the most useful on a regular basis. Simple examples may be a profit and loss statement, a daily/monthly income or occupancy report, or a wages report. There are many more of course that provide relevant and useful information on a daily basis.

Accommodation programs are accessed daily by most motel operators and are nothing new, they have been around for decades. They provide many and varied reports for the motel operator. Access to these reports at the click of a button in the office or even off site via mobile access has changed how to operate an accommodation business.

This is a far cry from the ‘good old days’ of the manual booking system book were looking down the columns by date or room number and vice versa on the side, was seen as such

an easy system. Imagine when being away from the motel and lugging around the book today where every customer wants what they want right now!

Beyond the operational side of things let’s consider when one is selling their motel business, the importance of the ability to access said reports is without question. If someone involved in the sale process needs a report of some kind as part of their inquiries, due diligence, or whatever, saying no or not being able to provide it, is not an option, if one is serious about selling. Whether the potential buyer of the business is a ‘mum and dad’ investor or corporate entity, at various stages of the process, someone is going to ask for many and varied reports to provide information and support commentary or data supplied.

Imagine telling a potential buyer of a business that they may not have said report because “any old poor excuse can be inserted here”. Whatever that poor excuse is that one wishes to insert in the previous sentence, it will not be accepted by a prudent investor, advisor, employee, or anyone else involved. Where there is a commercial decision to be made and therefore a level of risk involved, said poor excuse will not be acceptable and the potential investor will either walk away or seek to

reduce the purchase price to take into account the additional level of risk that needs to be accepted. I will qualify that the type of reports that are being considered here are those relevant to the business not to the business owners that are of a personal nature. Thankfully it does not happen too often but every now and again we do witness potential sales or contracts of sale not proceeding (when there is no real reason they shouldn’t) due to a lack of reporting or inadequate financial data being supplied.

A common due diligence item conducted today is providing ‘back end’ access to one’s booking system and other programs to allow potential buyers and their associates to investigate the business operation from this perspective. Years ago this was not the case, however, with advancements in relevant industry programs, this can now assist in making the due diligence process easier and run more smoothly. It goes without saying that not having these industry programs in place makes life a lot more difficult for the prospective buyer to gain access to the required data.

Moving on from the program side of things, making sure all income goes through the bank account is a must for so many reasons. Of course, all business owners

do this, so it goes without saying, however for any that do not, this is to the detriment of the sale process and the ultimate result trying to be achieved. If a business owner mentions that there is a cash component to a business, it is not something that has any bearing on the price to be achieved. It does not exist and cannot be considered. Investors will immediately become closed off to this notion as it is not something that can be confirmed or checked in any way.

All employees and contractors should be fully accounted for and documented within the business. A wage component (depending on the type of motel business) would typically be approximately 12 percent of the accommodation income of the business. This will vary from motel to motel depending on size and other factors but is a good place to start. Therefore, when a prudent investor is considering the wage component required to operate the business and the percentage is showing 2 percent, red flags will go up. Alternatively, if higher at say 20 percent of income, then again, questions will be raised.

All the above items simply add up to making sure all is in place and organised within the business and above board. If so, the sale process and due diligence should be a breeze.

The numbers

Revelation in the same bulletin was just too hard to resist. Forgive me, please. Of course, if our mortgage rate hits 6.66 percent any time soon I’m outta here!

you your soul mate will have a very specific number in mind. Sadly, the number may be the beginning of the end for what was a wonderful relationship.

By Mike Phipps, Mike Phipps Finance

“Here is wisdom. Let him who has understanding calculate the number of the beast, for the number is that of a man; and his number is 666.”

Revelation 13:18 From the bestselling book of all time.

“Woe to you, oh earth and sea, for the devil sends the beast with wrath. Because he knows the time is short. Let him who hath understanding reckon the number of the beast. For it is a human number, its number is six hundred and sixty-six”

The Number of the Beast -, Iron Maiden 1982. From the bestselling album of the same name. The opportunity to quote Iron Maiden and the Book of

The use of numbers as a means of calculating and communicating goes back a way. The first known system with numbers as we would recognise them today dates to 3100 BC in Egypt. Bones and other artifacts with tally marks suggest that keeping a score or a record goes back even further.

Our world today would be unimaginable without numbers. All modern computers use binary numbers at the core of their operation. A virtual world of zeroes and ones is at the very heart of pretty much every bit of technology we interact with and every process we encounter. Numbers inform our lives and have very significant real-world impacts. From telling us a safe speed to drive to making our mortgage payments unaffordable; the numbers rule our lives. We can speak the truth with numbers, we can deceive, and we can lie. There is no part of our lives in which numbers don’t play a part. But wait, Mike, surely when my soul mate and I are in the throes of physical intimacy numbers play no part? Be done in ‘5’ minutes and I can guarantee

Like much in life, when it comes to numbers lots of people like fancy terms and definitions. For some, it’s just the default position after years in academia, for others a way to feel superior.

For a very select group that includes politicians and activists, it’s a way to hide fundamental lapses of knowledge and/or a complete lack of understanding of the subject matter. For our Reserve Bank governor, it’s a way to test if anyone is listening. Turns out plenty were when he promised no interest rate rises until 2024. Luckily, he apologised on the basis that he didn’t think anyone would take any notice. I think his number might be up. Nowhere is all this numeric malfeasance more evident than in the worlds of finance and economics. It has ever been thus and that’s a shame. The fact is that the average punter, thanks to a substandard education system, has the intellect but not the guidance to understand what’s going on. The result is a population who are largely financially illiterate.

This sad state of affairs is aided and abetted by a banking system

with a pretty poor record in transparency and a media that, for the most part, doesn’t seem to be able to report accurately. The final nail in the finance coffin is legislation that compels lenders to provide borrowers with an almost incomprehensible level of information and disclosure. In fact, our lawmakers appear to take the view that most people are stupid and need to be protected from themselves. Legislation assumes a complete lack of self-responsibility and financial education. It’s a mess.

So, in a one-man crusade to help here are a few thoughts on how best to see finance and economics through the prism of numeric simplicity. It works for me albeit I’m a pretty simple bloke.

Money

If ever there was a numerically based device less well understood I’m yet to find it. All that we do to plan our economic lives and measure the outcome stems from currency-based values. Here’s the thing though. Money, of itself, is worthless and as such needs to be seen for what it really is. That’s a way of valuing and exchanging things of value such as labour, goods and services, and assets. You could have a million bucks in the bank but if you can’t use that money to

trade for food, shelter and sports cars what’s the point? Start thinking of money as a numeric measure and you’re on the right road.

Interest rates

Rates go up and rates go down. By the time it’s clear they are on the way up the fixed-rate horse has probably bolted. If having rate certainty helps you sleep fix before the variable rate starts to move. It’s a punt because you will pay a higher fixed rate in most cases, and you will only be ahead of the game once variable rates rise past your fixed rate.

If variable rates don’t rise your punt is a loser. Even if variable rates eventually exceed your fixed rate you are only ahead for the balance term of your fixed rate. Until then you are behind the eight ball and may never get your fixed rate interest premium back.

If you are using interest-only debt to invest, be sure the return on that asset exceeds your interest costs. Remember, the return will comprise both day-to-day cash flow and capital growth. If your cash flow doesn’t cover your costs and there’s limited capital appreciation you are on to a loser. It’s called negative gearing for a reason.

Here’s a simple but useful little formula:

Debt x interest rate less income = negative number. Add expected annual asset appreciation = positive number = happy days. Add tax write-offs and happier days. Sell at a huge profit, take cost-base adjusted capital gain, and pay some capital gains tax = investment nirvana.

Shares

Like interest rates, shares go up and down. Rising interest rates tend to place pressure on share prices as the rates give improved returns on cash. If you are happy with your share portfolio don’t panic and sell at the bottom. People say they have lost money on shares they haven’t sold.

That’s a paper loss, not a real one. If you don’t need the dough, don’t crystallise the loss.

Unlike house prices, you can see the value of your shares down to the last cent every day.

This can create a sense of panic which tends to drive a sell-low, buy-high mentality in many investors.

Resist the temptation to look at them every day.

Return on Investment (RoI)

This is where the dreaded percentage calculation rears its ugly head. Percentages can be useful, particularly when comparing investment opportunities or tracking trends. Of course, percentages can also be used to quote Mark Twain, to tell lies, damn lies, and statistics.

Anyway, this is a simple calculation of gross return. Take the profit from the investment, divide by the price and multiply by 100. You end up with a number that you can compare with other investment opportunities. Importantly, you also end up with a number you can use to decide if the investment risk is reflected in the return.

Return on Equity (RoE)

Often confused with RoI but usually a very different beast. Most investors borrow after putting in some of their own coin. RoE is the calculation to determine what return that equity will achieve. Here we need to know the adjusted net profit after interest costs, from there it’s the same calculation as RoI. Adjusted profit divided by equity x 100. If you are in a syndicate, simply use your individual equity and your share of the adjusted net.

Leverage

Ah, the miracle of leverage. Put simply, leverage is an investment strategy of using debt to increase potential investment returns. Put even more simply, the more 5 percent debt you can get to

put into a 14 percent RoI asset the better. And yet, not. Just as leverage can multiply upside opportunities it can also greatly increase downside risk. I think over-leveraged and highly leveraged were two terms most used during the GFC. The trick is to find a balance point where leveraged return and gearing risk can be managed at acceptable levels. This is particularly true in an environment where interest rates have been at historic lows and are rising fast. If you want a benchmark to risk assess RoI, RoE and leverage strategies you could do worse than looking at bank deposit rates and returns on blue-chip shares.

Net present value of future cash flow

At the risk of lapsing into the esoteric, this one is important. If you are in the business of buying assets with term contracts attached (motel leases, management rights) then you are in the future cash flow game. Let’s say you pay a landlord for a few more years on a motel lease or spend some dough lobbying a body corporate for a 5-year top-up. Unless you are selling, in which case more years will improve your price, you have basically invested in a future cash flow. You’ve paid today’s money in order to derive a cash flow many years distant. That future cash flow has today’s money value and it’s important to appreciate the dynamic at play here.

Sadly, I’m not bright enough to explain the formula here and there are way too many variables

to make the explanation simple. Talk to your accountant.

Opportunity cost of employed capital

Another pretty simple concept that’s largely overlooked in the numbers game. In essence your choices on how you use your capital come at a cost. A good example is a do-nothing investment strategy. Let’s say your super fund is poorly run and returns are modest while other, more appealing super funds are available. The opportunity cost of doing nothing becomes the difference between the two funds.

I think every investment decision should be informed by a “what else could I do with the money” analysis which compares opportunities in the context of risk and return. Of course, if the investment is jewellery for the managing director, then the opportunity cost calculation looks more like this:

Mike says no = opportunity to live elsewhere – desire to retain current assets = visit to jeweller.

I’ll leave you with Albert Einstein, a bloke who I suspect could do a way better job of explaining numbers.

“Compound interest is the eighth wonder of the world. He who understands it earns it … he who doesn’t … pays it.”

Ok, now I feel superior. Feels good!

Roof leaks & water damage: Getting ahead of the problem

By Lynda Kypriadakis, Diverse FMX

Here we go again with the Queensland heavy rain over the summer months, as well as the tail-end of La Nina pouring down on the southern states. Every insurance company’s nightmare is coming into full focus at this time of the year: WATER LEAKS into buildings!

The penetration of water into habitable and structural areas of residential strata complexes is a structural defect that requires not only urgent, but specialist attention. Water leaks into new buildings that are still under the builders’ warranty is one of the most common defects discovered during defect inspections (refer to University research study undertaken in this area: An examination of building defects in residential multiowned properties, by Dr. Nicole Johnston of Deakin University June 2019).

Liability

Who is responsible for fixing water that leaks into habitable private property or the structure of the common property?

In a residential strata scheme the body corporate would usually be responsible for repairing the cause of any water leak into habitable or structural areas. The

body corporate is burdened with the responsibility to maintain the structural integrity of the scheme buildings, and nothing erodes structural integrity like water ingress. Before actioning any repair works tasks, it is important to check with the body corporate insurer as soon as a water leak is reported to get confirmation on who is liable for what.

What about if the building is still under the statutory builders’ warranty?

Any form of water leak is considered a major structural (Category 1) defect under the building contract and therefore claimable under the builder’s warranty. Before any repairs are done to the water leak defects it is important to check that there is no enduring warranty on foot.

Other warranties?

Metal roofing products come with manufacturer warranties so it might be worth checking the warranty certificate out

before undertaking repairs in case there is a claim against the manufacturer available.

Investigations

Once the liability chain is established and warranty conditions understood, the first step in dealing with the actual water ingress issue in the building should always be a thorough investigation into the cause of the leak. Commonly, a contractor is engaged to “fix” the leak without doing a thorough investigation to confirm the ingress point (ie., the defect) so the full extent of both the defect and the resultant damage (eg., damage, mould, rot, rust etc. in concealed spaces) is not always understood. Where repairs are attempted without a proper investigation beforehand there is a high likelihood that the repairs will fail at some point and the body corporate outlay will be in vain.

Water leak investigations are considered expert work and it is therefore recommended that highly experienced, qualified and specialist consultants are engaged up-front to properly determine the leak issue and whatever remedial actions are required to permanently fix the defect. It is not unusual for leaks to persist despite multiple efforts to fix, and this is usually because a holistic overview investigation was not conducted by an independent expert in the first instance.

Note: The independent expert will not be interested in offering a quote for the repairs. They will limit their involvement to inspecting and preparing the remedial works scope for tendering (and possibly Project Managing for the body corporate). It will cost money

to have a proper independent specialist investigation done because they will be qualified to prepare a reliable remedial works scope that can be used for tendering repairs to fix.

Water testing

A proper investigation into water leaks will always require flood testing or water testing unless the defect is extremely obvious (eg., roof sheets blown off in a storm). Thorough investigations include the expert consultant flooding the suspect area with water (eg., via a hose) and watching how the water behaves. The investigator will take steps to track where the water gets in and follow where it goes. Water testing is a highly effective strategy for obtaining accurate information on the point of ingress (defect), however it is not always easy to see where the water goes once it gets into concealed spaces, so invasive surveying should accompany the water testing.

Invasive surveying

In order to review the behaviour of the water ingress it is usual for

invasive testing to be done. This involves the expert consultant either removing roof cladding or cutting apertures in linings to gain visual access to concealed cavities such as roof/ceiling space, eaves overhangs, walls etc. While moisture reading devices and thermal cameras are very effective and tracking moisture in concealed spaces or lining materials, nothing beats seeing the water live with your own eyes.

The downside to invasive surveying of course, is that it leaves unsightly openings inside units, which can be inconvenient for the lot occupiers.

Other leaks

It may be that the source of the leak is not from common property, in which case it is unlikely that the body corporate would be liable. For example, the upstairs neighbour may overflow the bath or sink and that leak tracks into the unit below. Or a renovation upstairs has caused water leaks into apartments underneath. Also, retrofitted air-conditioning units

(installed privately) may leak, or lot occupiers may drill holes through the roof for solar panels or antennae, causing leaks. All these types of leak sources can be identified by the independent leak investigator before repairs are undertaken.

Mould

It is commonly held that mould is an indicator of water leaks, but this is not always the case. Most mould issues arise out of lack of light/ventilation inside

apartments. In cooler months when heaters are on inside the unit condensation can form on the windows and cause mould growth. In the hot summer months, the opposite occurs with condensation forming on hot windows when the air inside the unit is cold. Also, running the clothes dryer without adequate ventilation is a primary cause of mould inside units, so just check out ventilation in the unit if mould starts to occur.

Summary

The ideal process for attacking water leaks is as follows:

• Determine liability first;

• ascertain extent of any warranty claims available;

• engage an independent expert to conduct water testing and prepare the remedial scope of works

• ensure the quotes come from qualified and licensed roof plumbers; and

• ensure a water test is conducted upon conclusion of the repair works to confirm the leak is fixed (before final payment is settled for the works).

Are you looking for a pre-purchase nancial veri cation report, pro t and loss for sale or just an accountant who really understands your management rights business?

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

- NSW - VIC - WA

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

QLD

© Adobe Stockstock.adobe.com

Seven hints to prepare for next holiday season

By Sylvia Johnston, Senior Executive, HiRUM Software Solutions

In the blink of an eye another Christmas has passed, and the busy holiday season is drawing to a close.

Holiday periods tend to be busy for most people, but if you manage an accommodation property the additional demands of working with a ‘full house’ can take that busyness to a whole new level. Peak season means higher revenues, but that can be countered by the pressure of maintaining great service with more time pressure, and much more stress.

As occupancy levels start to calm down, it is a great time to take stock of how well prepared you were to hit the ground running this holiday season and assess whether you managed to maximise your revenue and opportunities throughout the period. A moment of reflection now to consider what worked

for you, and what could be improved upon, can enlighten you as to how best to prepare for the next holiday season.

Planning is key when it comes to deciding on and implementing tactics to capitalise on your seasonal peaks. It is difficult to make changes once you are in the midst of the madness and paddling like the proverbial duck under water. Be proactive rather than reactive when it comes to peak season preparation.

Here are 7 top tips to help you make the most of your next holiday season…

1. Gain insight from analytics and learn from experience

Study your analytics to glean insight into how your hotel has performed. Use the analytics tools offered

to you in your software, or via 3rd party providers, to gain greater understanding of your property’s strengths, and highlight opportunities for growth.

Look at metrics such as Revenue Per Available Room (RevPAR) and compare this to the same periods historically, to gather a clearer picture of performance. Average Daily Rate (ADR) will give you an idea of how you stack up against your competitors. By comparing this figure to last year, it will also give you a clearer picture of whether your rate changes are in keeping with economic factors that may impact your profitability, such as our current rate of inflation.

Consider metrics such as Booking Lead Time and Pick Up Analysis to help you to forecast when you should

initiate marketing campaigns in the lead up to next festive season, to ensure you achieve maximum occupancy. And of course, understanding the Geo Status of your guests will help you to target those marketing campaigns to exactly the right demographic to maximise the impact of your marketing dollars.

2. Get your distribution right

Long before peak season comes around, you need to work on ensuring you are making the most of all the distribution channels that suit your business. Make sure you have your property displayed where your potential guests are looking, whether that be Google Hotels, the major OTA’s, vacation rentals or meta channels.

BUILDING RELATIONSHIPS

2023: The year of kindness & mental health

By Kelley Rigby, Managing Director, Letts Rebuild

Welcome to 2023, I hope you and your family enjoyed the festivities and took some time to relax and recharge for the year ahead.

Talking directly to the shortterm buildings, I hope you were booked out and had 100 percent occupancy and are going to enjoy some R‘nR over the coming months.

Over the last few months, I have shared many, many tears with people in our management rights community. More than I ever have before. It has really shown me once again the complexity of this industry. But now it is a new year and so I will try to keep this as positive as possible, to begin on a high but the reality is, even the best in the business can struggle mentally in this industry.

I would like to challenge our community this year to take the time to check in more on your neighbour, reach out and ask if you need a helping hand or an understanding ear, and look after one another.

If there are buildings situated within close proximity why not pop in, say hello and start building a community and I dare say friendships. You never know what that small gesture might

3. Build your own database

Build and protect your own database of loyal guests. Make the most of every opportunity to garner Direct Bookings to maximise your profi tability. Harnessing the power of Direct Bookings will reduce your cost of acquisition, increase your revenue, give you the opportunity to control the guest relationship from the outset, and help you build your own valuable database for future marketing campaigns. Direct Bookings are booking gold.

4. Build an online presence

Work on a strong online presence throughout the year. Have a great website. It must be relevant, up to date, informative and Search Engine Optimised. Most importantly it must have a user-friendly secure booking form to capture those Direct Bookings.

Build a social media presence and connect with past and future guests in an engaging manner. Consistency is key when building a profile. You don’t need to post continuously, but you do need to post regularly.

5. Target campaigns to market effectively

Stay in contact with previous guests. Target them with campaigns providing loyalty bonuses and special off ers. Understand your guest’s demographic and Geo Status and specifically target the relevant locations with your campaigns. Time your campaigns according to the Booking Lead Times discovered through your analytics. Create season themed campaigns. Off er special packages that include activities suited to the festive season for instance, or that highlight special events in your area during that time.

mean to someone, it could just be the light they needed.

As I proclaimed at the start of my article it seems to be evident that now more than ever, we need to band together and help one another. We are so lucky to be in an industry where it isn’t unusual for “competitors” to help one another when in crisis, it is one of many things that make me so very proud to be a part of this industry we know and love.

If you are struggling ARAMA has a program called A-map available for members that may need guidance from a professional. It has seen much success within the community, helping our managers navigate emotions through the difficult situations our industry can sometimes present.

The management right industry and business model is one

that att racts those that excel in service and customer satisfaction. When all parties work together and have a ‘best for building’ att itude it makes for an unbreakable community.

The other phone calls or conversations I am privileged enough to receive and hear are from managers and unit owners that have made unbreakable bonds within their communities. This was especially apparent over the last few years when communities needed each other more than ever. In some instances, it was the manager that brought the unit owners together ensuring that everyone was ok.

Let’s make this year one where we choose kindness over cruelty and put our mental health as a number one priority.

Kindness and empathy.

7. Generate positive reviews even in peak season

Take care of your guests. Provide those litt le extras that the additional revenue makes achievable, such as a bott le of wine on arrival to celebrate the festive season. Make sure your staff are well trained and supported and have clear performance expectations regarding guest service.

Address any issues that do arise with empathy and resolve them eff ectively as quickly as possible.

6. Anticipate your staffing needs

Where possible, try to anticipate your staffing requirements for peak periods. Make sure staff are eff ectively trained and cross-trained during the quieter periods, to cover emergency absences and provide a contingency plan when occupancy ramps up.

Ensure that your staffing reflects the increased business demand. Reinvest some of the additional revenue in additional staffing resources, and you will have happier, less stressed staff and consequently happier guests.

Respond to online reviews. This is not the time to ignore them because you are busy. Make sure good and bad reviews are acknowledged and responded to eff ectively.

By considering the requirements of peak season well in advance, you will have the infrastructure in place in your business to eff ectively meet the demands of the busy holiday season. In doing this, you will make the most of the potential increased revenue and occupancy during the busy times, and your business will benefi t from greater profi tability and an enhanced reputation.

© Adobe Stockstock.adobe.com

A lesson in how to host ‘Schoolies’

By Grantlee Kieza, Industry Reporter

Thousands of teenagers spent the last few weeks of November experimenting with alcohol for the first time at Australia’s favourite playground.

It sounds like a recipe for disaster but according to ARAMA CEO Trevor Rawnsley, the threeweek rite of passage known as ‘Schoolies’ is the perfect partner for the management and letting rights industry, providing a safe environment for callow teenagers and bumper returns for accommodation operators.

“Schoolies can be a real boon for MLR operators,” Mr Rawnsley told Resort News, “and MLR businesses are the ideal hosts for Schoolies.

“Most MLR businesses are mum and dad small businesses or a family operation, and for a lot of kids playing grownups for the first time, these management rights operators

provide some semblance of home during the Schoolies break.

“These kids still need guidance and ground rules as they make their way into adulthood and MLR operators can provide that grounding.”

An estimated 25,000 Queensland graduates celebrated the end of their high school days at Surfers Paradise late in November with the largest Schoolies crowds since 2018.

Schoolies is estimated to

generate $42 million for the Queensland economy, with about $30 million of that spent on the Gold Coast.

Queensland Police acting chief superintendent Rhys Wildman told the ABC that while the number of arrests had increased on the coast over the schoolies period compared to previous years, that was understandable given the great increase in numbers visiting the Gold Coast in the post-pandemic boom.

He said that ‘the behaviour that’s been demonstrated is comparable to pre-COVID years when you look at the crowd numbers’, and he said the school leavers should be congratulated, with non-school leavers or “Toolies” being the main focus of arrests during the celebrations.

The school leavers holidaying on the Sunshine Coast this year generated a relaxed, rather than raucous vibe, preferring to read on the beach than rage in the streets.

Andy Gourley, the founder and director of Red Frogs, a Christian Youth charity that promotes responsible behaviour at youth events, told the ABC that he had noticed a major shift in Schoolies’ habits across the board.

Mr Gourley said, “probably 40 to 50 percent (of the school leavers) aren’t big drinkers these days”.

“We notice this in the cafes,” he said. “Back in the day at Schoolies locations, cafes would be empty, it’d be like a ghost town.

“Now, they’re full of Schoolies doing their smashed avo and lattes.”

Sunshine Coast police said there had not been any schooliesrelated issues in the region, while Visit Sunshine Coast chief executive Matt Stoeckel said schoolies visitors were coming to the coast for all the right reasons.

“We know that we attract a lot of young ones who want to come up here and just relax, connect, get among nature [and] spend time with their friends,” he told the ABC.

“The Schoolies do bring in economic benefit to the region, [they’re] spending at restaurants, bars, accommodation, tours, experiences, so it’s a great injection for us.”

Mr Rawnsley said while a lot of management rights properties didn’t host Schoolies because they lacked the necessary security protocols, his experience was that with all the checks and balances in place, Schoolies and MLR businesses were a perfect match.

And with statistics showing young people drinking less it was becoming a more attractive union every year.

“I managed a Schoolies building two years in a row,” Mr Rawnsley said

“If Schoolies is well managed and well organised, it is a fantastic opportunity for the kids to experience playing grownups in a safe environment.

Those management rights businesses that run Schoolies accommodation properly in bulk really do turn on a great event for the attendees.

“Occasionally Schoolies gets a bad rap and it’s usually because the kids are accommodated in Airbnb or other places where there isn’t any real support structure.

“Management rights has an ideal business model to host the Schoolies kids, organise their accommodation, and provide safety and security.”

Mr Rawnsley said while he wouldn’t like to host Schoolies every week “because it can be very taxing” accommodating the school leavers provided a cash windfall with great room rates and all the other extras that could be squeezed out of enthusiastic holidaymakers.

“From an economic sense Schoolies can make a lot of money for a Management and Letting Rights operator, and for the Schoolie a well

organised MLR business can really provide safety, security and a great experience for their entry into the adult world.”

Mr Rawnsley said like many managers who provided accommodation for the school leavers, he had “processes and procedures” to handle the influx of partying teenagers when he hosted them on the Gold Coast.

“One of the most important things that I did was to have two guards working 24 hours a day in eight-hour shifts,” Mr Rawnsley said.

“I had one guard on the main entrance to the building checking what’s called the Schoolies’ passports, checking the identity of who arrived and left.

“There were some residents who lived there so naturally, the security guard would pass them through, but we stopped people who weren’t registered in that building from entering that building.

“The other security guard would roam around the complex making sure no one was jumping the fence or having yahoo parties or anything like that – so we had 24/7 security for the period of Schoolies, which was very essential.

“Another essential is what I would call the ‘Schoolies induction’ – every good building has house rules for Schoolies and that’s a condition of booking. We would have a process of registration like a normal hotel registration but more elaborate for the kids.

“We would ask for that entire room to check in at the same time. We would give them one key only and go to the room to take photos to make sure everything was in order, with no damage, and nothing missing. That entry condition report would then be looked at when the kids checked out.”

For the induction, Mr Rawnsley would take 15 or

20 kids at a time and seat them around the barbecue, go over the house rules and give everybody a final warning about climbing on balconies.

“We would tell the girls to look after the boys because it was usually the girls who were the sensible ones.

“We’d remind them all to be responsible and look after their mates.

“Because they are fresh out of school most of the kids do follow the rules and take instructions. We wanted to make sure that the Schoolies weren’t affected by the ‘Toolies’ or the ‘Droolies’, the older ones or the ‘Foolies’, the younger ones, and that they had a good time in a safe space.

“If you were a Schoolie you were

registered, you had photo ID in the Schoolies passport and you had to show it all the time to the security guard to get in and out of the building. We had our complex as tight as a drum and as a result of that we didn’t have any drama at all in the two years even though there was some bad behaviour.”

One boy at Mr Rawnsley’s complex was caught trying to climb from one balcony to another.

“It was broad daylight and a security guard saw him. We evicted him, rang his parents and they came down and took him home back to Toowoomba.

“They were very grateful someone was watching over him.”

PROGRAMME

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

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

Honours for Five-Star PRET Awards 2023

By Grantlee Kieza, Industry Reporter

Paul Shih is already organising the 2023 PRET Awards but concedes it will be very difficult to top this year’s extraordinary night at the Brisbane City Hall.

One of the great events in the Management Rights industry, the 2022 PRET Australia Awards Night on November 26 drew a packed audience of more than 700 to the gala red-carpet event with a “red and white theme”.

The event was organised by Mr Shih’s Professional Real Estate Training and he and his generous guests raised an extraordinary $142,715 for three charities: the Lord Mayor’s Charitable Trust, the Mater Foundation and the RBWH Foundation.

More than $30,000 worth of raffle prizes were also won on a memorable evening.

The VIP guest list included Lord Mayor Adrian Schrinner and Lady Mayoress Nina Schrinner, RBWH Foundation CEO Simone Garske, Mater Foundation Catherine House Project Director Greg McGahan, former Lord Mayor Graham Quirk, who acted as guest auctioneer, John-Paul Langbroek, the State Member for Surfers Paradise, and Edward

Tao, the Director-General of the Taipei Economic and Cultural Office in Brisbane.

Lord Mayor Schrinner told the audience he was delighted with the event and the work of PRET Australia CEO Mr Shih.

“Each year the PRET Australia Awards Dinner celebrates Brisbane’s high achievers in the

real estate industry while also raising an incredible amount of money for important local causes,” Mr Schrinner said.

“This year, the Lord Mayor’s Charitable Trust was chosen as the beneficiary, with an incredible $38,675 raised for the annual Christmas Appeal and frontline charities.

“Thank you to PRET CEO and Lord Mayor’s Charitable Trust Ambassador Paul Shih for not only supporting the Trust but also the Mater and RBWH Foundation.

“Thank you for your incredibly generous donation.”

Cr Schrinner said whether it was seeing a child’s face light up because of a new toy or giving parents the certainty of a family feast, there was “something magical” about giving at this time of year.

Mr Shih, an industry leader in management rights, and Honorary Chair of Australian Property Management Alliance, is one of the best-known property

trainers in the Brisbane Chinese community. He admits to having a great interest in property since a very young age, through his family’s passion for property investment.

He has a master’s degree in project management, specialising in property and marketing, and joined PRET Australia founded by Ms Jade Harley as a qualified trainer in 2010 for the Australian Chinese community and became CEO in 2020.

He said the PRET Awards were designed to celebrate and recognise the achievements of the PRET graduates and training partners in the property industry, and to show everyone (particularly owners and committees) the importance of onsite managers in a complex.

Studies show that the work

of an onsite manager leads to lower costs and greater resident satisfaction.

“Despite this there is minority of unit owners are making a lot of noise at the moment attacking our industry,” Mr Shih said, “but it gave me great pleasure in reading so many very positive testimonials from complex residents about how great these managers are.”

The reason why some schemes can become toxic is often

due to poor communication between the body corporate and the onsite manager which can sadly lead to a “bullying” culture.

Mr Shih told the audience: “No onsite manager can focus on their job when the committees are trying to play politics and bully others.”

He quoted some fascinating facts from a recent survey by the Queensland Unit Owners Association.

It showed that:

• 75 percent of those surveyed in a toxic community were unhappy with their body corporate committees;

• 76 percent believed the bodies corporate committees had relationship problems with the owners;

• 72 percent believed body corporate committees have bad relationships with the onsite managers;

• 76 percent of committees had no training whatsoever; and

• 60 percent of all surveyed have witnessed interpersonal conflicts including bullying.

Cutting down the contract years is not the answer. It is just a naïve idea

5 Star Onsite Manager Award Winners

Monica Xu: Allura, Oxley Chase, Whitewood Place, Belmont Villas

George Lu: Allura, Oxley Chase, Whitewood Place, Belmont Villas

Vinh Le: Ansonia & Saratoga Apartments

Melissa Lin: Brentford Outlook

Kwan Yang: Carindale Views

Rebecca Huang: Chancellor Executive Apartments

Tia Vutilolo: Chancellor Lakeside Apartments

Trevor Leung: Desert Ash Grove, Ningi

Carl Wu: Freshwater Creek

Tracy Liu: Garden City Domain

Rui Jiang: Garden City Domain

Ning Zhang: Infinity Heathwood

Jill Chung: Jacksonrise Complex

Vincent Ko: Mari Court Resort

Jack Tsai: Mari Court Resort

Sierra Wu: Mari Court Resort

Yun Bai: Oaks Charlotte Towers

Alice Cai: Parkvista

Wensheng Luo: Parkvista

Linley Xu: Quartz, Amore, Aqua’ta

Julie Wang: River Park Central

Brenda Fan: Riverstone & Lumira Apartments

Jacky Lo: Riviera II Southbank Apartments

Johnson Shih: Richlands Outlook II

Steven Shih: Richlands Rise

Tran Vicky Phu: Royal Albert Hotel

Ella Xu: SeaScape

Louis Hou: Sunnybreeze Views

Jack Chuang: Sydney on Sydney

Mandy Gao: The Terrace on Gregory

Tom Wang: The Terrace on Gregory

Mandy Li: Willow Apartments

Kevin Li: Evoke McDowall

31

The survey clearly shows there are problems with bodies corporate. Mr Shih points out: “It is not the onsite managers that bully owners and body corporate committees.”

How do we prevent disharmony in schemes?

“The answer is simple,” Mr shih said, “by creating positive relationships between owners and onsite managers like those award-winning complexes.

“It is just like a boss mistreating employees, abusing them, harassing them, bullying them, how do you expect the worker to do a great job?

“Cutting down the contract years is not the answer. It is just a naïve idea that will create more problems with an imbalance of power. Only encouragement, appreciation, and the use of topups as incentives will give onsite managers job satisfaction and motivation to do a better job.”

Awards were presented to rising stars in the Property Sales industry and the top agents, but the first category was the Onsite Manager Awards, proudly sponsored by Resort News, and

presented by our editor Mandy Clarke. This Five-Star Award was to recognise any onsite manager achieving five stars.

Onsite managers earned their First Star of Professionalism by joining professional bodies such as ARAMA or APMA or doing continuous professional development with ABMA or PRET Australia. The Second Star of Caretaking Service came if their body corporate

committee was willing to give a letter of recommendation for their caretaking work.

A Third Star for Letting Service was awarded if they had testimonials from their landlords and tenants.

The Fourth Star for Residents Relations was awarded if they received references from residents in their complex.

The final Fifth Star of Social Responsibility came if they have supported PRET selected charities in the past twelve months.

One of the award winners, Alice Cai, from the Parkvista townhouses at Thornlands, told Resort News: “It’s really great to be recognised with these awards. Normally onsite managers are viewed as being behind the scenes, and not many people recognise what we do, some think we are servants.”

One of the owners at Parkvista, Nathan Carney, certainly did not think that.

“Alice and her team managed my property for approximately three years and then recently assisted with the sale,” Mr Carney said.

“During this period Alice was very diligent at responding to and attending to any matter relating to the management of the property and made the experience very enjoyable for myself and my wife as her clients.

“I have the utmost trust and confidence in Alice’s ability to manage our properties and would have no hesitation in recommending her services to anybody requiring a property manager or assistance with selling their property.”

Tenant Leanne Szathmary said she “strongly recommend the Professional Property Managers” Alice and Wensheng Luo “as they are super organised and have a beautiful complex that reflects all their hard work.

I really enjoy living in the Parkvista Townhouse

Another Five-Star winner Kwan Yang manages 300 townhouses across the four complexes that make up, Carindale Views at Carina. He said the PRET Awards were “a great night” and that he was “very proud to receive the award.”

“The most important thing,” he said, “is that the public recognise the work of onsite managers and that we are doing a good job. Thanks to all the people who support us.”

Adam Stiles, the chairperson of the Carindale Views body corporate committee, wrote a reference expressing his “gratitude and appreciation for Kwan”.

“Kwan is incredibly diligent and proactive, and really cares about the outcomes for the residents at Carindale Views,” Mr Stiles said.

Some examples of this in just the last couple of months:

“Kwan got word of some wall cracking from ground movement from one owner. He went around to not only that property but the townhouses nearby and asked to inspect them all to see if anyone else was having an issue, even though only one person reported it.

“While on this inspection inside my own home, he noticed the fence in my courtyard had a sag and I had a quote in my inbox that afternoon with pre-approval to jointly fix it. 34

PRET Australia Awards Night 2022

Rising Star Awards Winners

ResortBrokers® Jessie Shi, Glenn Millar and Tim Crooks recently attended the 2022 PRET Awards Night at Brisbane City Hall along with over seven hundred real estate and property management industry leaders. ResortBrokers are proud to be a gold sponsor of this charity dinner event and congratulate Jessie and Glenn who were shortlisted

Complex and hope to be a long-term tenant.”

Hazal Wang QC Realty

Yumei Magon Matrix Global Brisbane

Rick Chen

Ray White Sunnybank Hills

Vanessa Pope

Belle Property Hope Island

Daniel Zhang Brisvegas Property Group

“I found a stray dog racing around. Kwan immediately took it off my hands and found the owner, then reported back so I wouldn’t worry and even gave me helpful tips on how a stray dog can lead you back to its owner if you put it on a leash, which I can use in future scenarios.

“I am potentially renting out our property in the near future and without asking, Kwan offered me a great deal to look after the rental side of things which really set my mind at ease.

“Even when driving through the complex, Kwan will always smile and wave when he sees you and is always working hard around the place. This makes a big difference as an owner, knowing that your property and community are in safe hands.”

Vinh Le won a Five-Star award for his work with the 167 units he manages at two buildings, the Ansonia & Saratoga Apartments in Teneriffe.

“The properties are inside old wool stores so there are always a lot of maintenance issues,” Mr Le said.

“The PRET awards are so important for managers to display the work that we do.

“Some of the owners and committees don’t understand our work, so with these awards, we show what we have done at our complexes. Being an onsite manager is a big commitment for us and an important job, but unfortunately, a lot of owners think managers are just sitting in the office.”

That’s not the view of Angela Jeppesen, who has owned a property in Ansonia since 2008.

Vinh Le and Peggy Chen took over the management in July 2018, and since then Angela has been both owner/ occupier and landlady under their management.

“Nothing has ever been too much trouble for them,” Angela said. “Their service was seamless. My apartment was never unrented. I rented it fully furnished. On my return, I was incredibly pleasantly surprised to find the apartment and furniture in great condition with barely even minimal wear and tear. This speaks to the care and effort they put in to ensure quality tenants.

“At one instance flooding from the upstairs apartment damaged my kitchen floor requiring replacement. Vinh managed all aspects of the replacement without issue while keeping me well informed.

Shanny Zhao QC Realty

“They had made it so simple from my end that I had forgotten that it happened until Vinh reminded me on my return to living in the apartment. I intend to re-let my apartment next year and will continue to do that through Vinh and Peggy. Noting that prior to their tenure I opted to let through a third party rather than utilise the onsite managers at the time.”

Jack Chuang runs the Sydney On Sydney complex of 67 apartments near New Farm Park.

He says the PRET Awards do much to promote a strong relationship between managers

and owners by highlighting the vital role of onsite managers and the benefits they bring to their buildings.

Jack organises Christmas parties and a community garden at his building to promote meaningful engagement with residents and donates to local school projects to promote a sense of community.

Resident Margaret Allison said she has known Jack for approximately eight years, ever since he commenced duty as the onsite manager.

“I can attest to Jack’s work, both as a resident

owner and a previous body corporate committee member,” Ms Allison said.

He was only too willing to help in practical ways, she said, and quick to respond to maintenance requests.

“Jack has always worked hard to generate community spirit among the owners and residents of the complex,” she said. “He always arranges a Christmas get together, and makes the whole place feel bright and Christmassy with lights and decorations. He recently organised a small working bee to help re-establish the

complex’s popular herb garden.

“Jack is responsive to requests from the body corporate and has worked cooperatively with the committee to achieve great outcomes for the complex, keeping value for money in mind.

“He is also responsive to the more difficult side of the caretaker role in dealing with noise and nuisance complaints, and animal management issues.

“To sum up, Jack always ‘goes the extra mile’ to help residents, and his hard work and cheerful attitude help to make Sydney on Sydney a great place to live.”

What about...

Women In Management?

Sunshine Coast

It was a gorgeous day in Mooloolaba for the Sunshine Coast ladies lunch, the food was delicious and the company was even better.

Organiser, Marisa Millane said: “Thank you to the ladies that attended and made the afternoon effortlessly flow, it was such a personable afternoon.

“I look forward to seeing you all in the new year.

“Thank you to Sandra and Gemma from Nuvho for hosting this event and bringing your bubbly energy on the day.”

EVENTS

ARAMA Gold Coast, Christmas Social Event

There were no boring presentations, no slides, just good old-fashioned social fun times at HOTA, Surfers Paradise on December 7, when ARAMA members and guests dressed up to celebrate the festivities in the usual style with wine, bubbles canapés, and lots of laughs!

EVENTS

ARAMA Sunshine Coast, Christmas Social Event

ARAMA members and guests celebrated the festivities at CIRCA Rooftop Lounge and Bar, Maroochydore on December 6. The theme was “festive and funky” and the evening certainly was!

North Sydney’s tallest tower tops out at 50 Storeys

The World-class and transformational development at 88 Walker Street recently achieved a major construction milestone, ‘topping out’ at Level 50, an impressive 180 metres above street level. The building also represents the first brand-new mixed-use tower in North Sydney.

Designed by award-winning, high-profile architects fitzpatrick+partners and developed by Billbergia, the building comprises 24 levels of commercial office space, acquired earlier in 2022 by LaSalle Investment Management and a 252-suite 4-star hotel, snapped up by Singaporean-based Ascott Limited in 2019.

With panoramic views of the Sydney CBD, the Sydney Opera House and the Sydney Harbour Bridge, the tower’s distinctive features also include a striking glass façade, the 50-level columnsuspended structure, and its heritage-considered integration with the former North Sydney Fire Station - now the Firehouse Hotel.

Saul Moran, Development Manager at Billbergia said: “It is a great privilege to contribute to North Sydney’s revitalisation with the addition of such an iconic design to the city’s skyline.”

According to Billbergia, the site had more than 210 workers daily at its peak. The project is forecast to generate over 1,000 jobs including permanent roles within the hotel and retail components on completion.

A brand new 252-room hotel, managed by The Ascott Limited, Citadines Walker North Sydney will occupy 20 levels of the tower including two floors of guest amenities comprising a restaurant, bar, residents lounge, gym, and hotel reception.

88 Walker Street is scheduled for completion in Q2 2023.

The Hilton Garden Inn Brisbane City Centre North is on track for its Q4 2024 opening

Queensland Minister for Tourism, Innovation and Sport, Stirling Hinchliffe, was on hand to participate in the official ground-breaking ceremony of the development and said it represented a vote of confidence in Brisbane as a business and holiday destination.

“Domestic tourism in Queensland is bouncing back stronger than before the pandemic with the latest industry data putting the State in a nation-leading position,” he said.

“Well-located accommodation will be highly sought-after as new opportunities emerge on our green and gold runway to the Brisbane 2032 Olympic and Paralympic Games.

“This project will support good construction jobs and deliver greater choice for business and holiday visitors to enjoy more of Brisbane’s great Queensland lifestyle.”

Located 13km from Brisbane Airport, the hotel will feature 129 guest rooms, a full-service restaurant and bar, meeting facilities, a fitness room, as well as a 24-hour grab-and-go retail store, The Shop.

Strategically positioned to provide convenient access to Brisbane’s CBD, the hotel is still within easy walking distance to many city centre attractions, as well as to Fortitude Valley, Brisbane’s nightlife capital. Also in close proximity to St Andrew’s War Memorial and Royal Brisbane Hospitals, Victoria Park and the RNA Showgrounds.

Hilton Area Vice President & Head of Australasia, Paul Hutton said the organisation is committed to growing its presence in Queensland.

“We are delighted to be partnering with Spring Hill Property Group Pty Ltd and Image Developments Pty Ltd to bring the Hilton Garden Inn brand to Brisbane,” he said.

“As a key Australian city and the gateway to Queensland, the coming years will be an exciting time for Brisbane, especially with the 2032 Olympic and Paralympic Games, and we’re excited to pave the way for savvy new travellers who visit the city to experience Hilton Garden Inn’s renowned, positive, upbeat service.”

Hilton Garden Inn Brisbane City Centre North, the company’s fifth hotel in Queensland and its second in Brisbane will join 29 operating and 13 pipeline Hilton properties throughout Australasia.

88 Walker Street

Hilton Garden Inn Brisbane City Centre North

Allisee in Bayview Street, Hollywell is now home to new managers. Jody, Darren and Alex took over the complex early December 2022 with what could be described as a well organised and smooth transition. The new team are very enthusiastic and are keen to settle in as soon as possible. Allisee is a beautiful and serene prestige accommodation complex located on the Broadwater in Hollywell, just north of Runaway Bay. Phil and the team at MR Sales would like to wish Jody, Darren & Alex all the best for the future in their new business venture.

Sales Report

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

MANAGEMENT RIGHTS

Gold Coast

Allisee Wild Cheetah Pty Ltd Hollywell MRS Carseldine Gardens Daliang Zhang Carseldine RB Panaview Court Stuart & Belinda Warke Burleigh Heads RB

Brisbane

Moreton Island Real Estate Sco Gaffney Cowan Cowan RB Wishart Views Bobbletots Pty Ltd Wishart RB

Sunshine Coast / Wide Bay / Fraser Coast Rimini by the River Suncoast Resorts Pty Ltd Noosaville RB

Northern Queensland

Mariners North Management Pacific Bay Pty Ltd Townsville RB

New South Wales

Macquarie Waters Edge Holidays Pty Ltd Port Macquarie MRS

MOTELS & OTHER

Queensland

Emeraldene Inn & Eco-Lodge Ma hew & Danielle Leonard Hervey Bay RB

Mossman Motel & Holiday Villas Queens Six Property Trust Mossman RB

Sleepy Lagoon Motel PKS Asset Realty Pty Ltd Tin Can Bay RB

Buckaroo Motor Inn Nosirrah Group Warwick RB

Tropical Queenslander Austrana Development Pty Ltd Cairns TB

Golden West Motor Inn G&N Management Services Pty Ltd Miles TB

Dalby Manor Motor Inn D&D McCarthy Dalby TB

Inglewood Motel H. Nguyen Inglewood TB

Country Roads Motor Inn S & V Hospitality Gayndah TB

Demi View Motel Birch Hotel Group Mossman TB Moondarra Motel B & L D’Arcy Innisfail TB

New South

Wales

Queanbeyan Motel Kiran Ganta Queanbeyan RB

Karuah Motor Inn Ravi Babu Koneru Karuah RB

Darling Junction Motor Inn C&I Hazeldene Wentworth TB

Copacabana Shores Guru Dev Resorts Pty Ltd Copacabana TB

Halfway Motel R. Singh Eden TB

Marrio Park Motel P. Jadeja Nowra TB

Southern Comfort Motor Inn MVInvestigator Pty Ltd Cootamundra TB

Victoria

Shady Gully Caravan Park K. McLeod Mallacoota TB

South Australia

Wallaroo Beachfront Tourist Park Kelbrionic Pty Ltd Wallaroo RB

Lakeview Motel & Apartments Robe Lakeside Lodge Pty Ltd Robe RB

Tasmania

Snug Beach Cabin & Caravan Park Brad Sculthorpe

Snug RB

ResortBrokers Sunshine Coast and North Fraser Specialist David Faiers handled the sale of Emeraldene Inn & Eco-Lodge from Bo Shen and Yong Hong Wang to Danielle & Matthew Leonard. From left to right: Bo Shen, Yong Hong Wang, Danielle Leonard, Matthew Leonard & David Faiers.

QLD - NSW - VIC - WA

Tina & Mick riding a wave of success

By Grantlee Kieza, Industry Reporter

When Resort News recently caught up with Tina Sutton, she was standing on the sands of City Beach in Perth cheering on her husband Mick Herden in an ocean ski race.

Meanwhile, Mick was gett ing ready to race in “The Doctor”, regarded by many in the sport as the ultimate ocean ski race that takes competitors from Rott nest Island to the stunning white sands of Sorrento Beach.

And as multi-tasking Tina busily led Mick’s personal cheer squad, she also chatted to Resort News about how she and Mick dived headlong into the management rights industry.

They dodged the great wave of COVID and are now making an almighty splash. And the secret to their success, revealed Tina, is good oldfashioned courtesy and service.

Tina and Mick took over the 15-storey Carool Holiday Apartments at beautiful Rainbow Bay, just outside Coolangatt a a year ago.

While the couple took a nineday break as Mick pursued his love of ocean racing in November, Tony Johnson

from Management Rights Sales, who sold them the business, was looking after the property in their absence.

“Tina and Mick moved in December 2021,” Tony told Resort News

“They’ve done a fantastic job over the last 12 months

building up the lett ing pool. The apartments were undersold for years, and Tina and Mick have increased the tariff s and doubled turnover in a year.

“The building has a great position on the coast, and a new 6-star property is being built nearby.

“Tina and Mick have established a great relationship with owners to win back apartments into the lett ing pool. Owners can see they are doing a great job and they’re willing to spend money on renovations to make money.”

Tina and Mick have a background in hospitality and the travel industry.

“I used to work for Infinity Holidays which is part of Flight Centre,” said BirminghamUK-born Tina, “and in our 20s we worked in pubs and restaurants. Mick was a manager at the famous Hotel Steyne at Manly in Sydney, and that’s where we met.

“We then had a construction business and Mick has a shop in Currumbin where we sell surf skis.

Mick Herden and Tina Sutton

The couple started seriously looking for a property about five years ago. They thought they’d found a place, but it fell through. “Then COVID hit, and we thought it was maybe not a good time to be going into the tourism industry,” Tina said.

“So, we held back until we thought the worst of COVID was over and conditions to enter the industry were better.

“We decided to move forward at a time when we thought there would still be lower numbers of visitors, when conditions would be quieter and properties a bit cheaper. But also when we considered the pent-up demand for people wanting to have holidays was building.”

Mick and Tina started looking again and found Tony Johnson selling the Carool Holiday Apartments, not that far from their Tallebudgera Valley home.

“We heard about the building a few years earlier because Tony

mentioned that the couple running it had been there for many years and that they might be looking to retire,” Tina said.

“When we started looking it happened to be on the market and it felt as though it was meant to be.

“We viewed and thought it was a great property that would work well for us.

“We liked the location because we wanted to be on the southern end of the Gold Coast. That was a big thing for us because we already lived in this area and didn’t want to be anywhere

north of Burleigh Heads.

“We also liked the size and style of the property. The property is a tower and from the caretaking side of things we thought it would be little bit easier to manage for Mick, as he didn’t want an acre of grass to mow.” 47

46

“The footprint of the property is smaller than a lot of other properties and there are no palm trees or gardens to maintain, it’s an easy to manage property and that was another drawcard for us. Right from the start it seemed like the property had a good vibe.”

Tina and Mick hired the vastly experienced management rights specialist lawyer Sharon Flood to steer them through the legal requirements and they were off… into the world of running their own property.

There are 35 units in their complex. When Tina and Mick took over there were 10 in the letting pool and they’ve since increased that to 14.

“When we started, we thought 10 was very manageable because it was our first attempt at management rights,” Tina said. “We didn’t want to take on anything and be completely out of our depth. But we’ve acquired four more for the letting pool.”

How did they win over those four other owners?

“I think it’s just the fact that we’ve reached out to people and communicated,” Tina said.

“Mick and I quite like talking to people and the fact that we are onsite and getting on well with the owners convinced four to leave outside agents and have us take over the management.

“We emphasised to all the owners that we are onsite and we provide a very personalised service. We are the people who welcome the guests to the

apartments, we are present to talk to guests during their stay, able to answer any queries and importantly we are there to check the apartments as soon as they leave.

“The owners like that and I think that’s why they came over to us.

“Mick and I heard lots of horror stories about owners who

don’t get on with managers, and about negative body corporate experiences but our experience has been totally the opposite. We get on with the owners and everyone has been really warming to us, so much so that when our youngest daughter recently graduated from high school one of the owners drove her to the graduation in his vintage car.

“We definitely feel that a harmonious relationship can be created,” Tina said.

“We haven’t had any confrontation and we’ve established a real community spirit. We are living in a community situation and part of the way to make that situation harmonious is quite simply to be courteous to everyone.”

Based on her experiences, Tina offered some advice to any new managers considering the purchase of a management rights business

“I would tell them, don’t stress and don’t let it consume you,” she said, “and make sure you get a day off every week.

“And always remember to keep your sense of humour! Initially,

the job is totally ‘all consuming’ so it’s important to see the funny side and don’t let it get you down. I assure you it does get better, much better.”

Tina and Mick have three children and a dog, it can’t be easy balancing family and a new business?

It’s the contrary Tina said: “It can truly be a real family job and

that is one of the best things about management rights.

“The kids often help us out with cleaning and housekeeping, and they like to check-in guests. It’s a perfect business for a couple with children and the way we run our management rights really makes it a mostly enjoyable family affair because often it can be fun.”

‘Sharon’s knowledge of Management Rights is invaluable, her advice and expertise both during the buying process and ongoing has made our venture into Management Rights a very smooth process. Sharon or her assistant are only a phone call away if we ever have an issue.’

– Tina Sutton & Michael Herden, Carool Apartments

Leaders and experts in Management Rights

Congratulations Tina and Michael. Flood Legal are proud to partner with you as your trusted legal advisors. Thank you for your kind words.