Resort News, March 2023

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March, 2023 - Issue 319

The legal stuff...

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KEY Commercially funded supplier profi le or supplier case study

Supplier information or content Suppliers share their views in one-off topical pieces

CONTRIBUTING THIS ISSUE... Andrew Morgan, BCCM Commissioner, Col Myers, John Mahoney, Jonathan Hanaghan, Kelley Rigby, Laura Bos, Lynda Kypriadakis, Maree Smith, Mike Phipps, Sylvia Johnston & Trevor Rawnsley

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

Try giving women what they want

March is the month we celebrate women. This year the theme for International Women’s Day celebrated on March 8, is #EmbraceEquity.

In business, equality means giving everyone what they need to be successful but to provide all genders with equal opportunities there will be times when women require more than a level playing field, that’s equity. For some employers #EmbraceEquity may simply mean negotiating more flexible working hours for female employees and for accommodation providers it entails offering women guests experiences that they seek, and not prioritising what male guests want.

A business community that provides a safe culture, which actively promotes and supports

all women is stronger, more attractive to talented employees and to guests, and therefore much more successful.

On that note, happy International Women’s Day to all the hardworking women across our wonderful management rights and accommodation sector. My advice? Never forget to insist on ‘me time’ and

sometimes put yourself first. On the subject of hardworking women, Maree Smith the onsite manager of Hidden Vista Resort took time out of her busy resort management schedule to pen some thoughts on how she feels about the ‘attack on term’, and to her, it’s very personal. She says the campaign is an attack on the concept of management rights and therefore an attack on her business, her livelihood, her role, and ultimately on her. I am sure her opinion reflects the feelings of most onsite managers right now and you can read it in full on page 19. This month Paul Grant, the Noosa-based finance broker, from Mike Phipps Finance is in the hot seat. Get to know Paul (or perhaps you know him as PG) on page 12. You will find this month’s report by industry writer Grantlee Kieza on page 40. He investigates

the Wide Bay and Capricorn Coast to find out if it really is riding a wave of success since COVID and if so, why? He talks to experts across the industry from agents, valuers, financiers, lawyers, onsite managers, and tourism and accommodation professionals to discover why the largely undiscovered places (until now) like Agnes Water and Seventeen Seventy are currently attracting a surge of visitors and therefore investors. For our profiles, we took off to Yeppoon to talk to Andrea and Bill Stokje who took over Oshen Holiday Apartments in 2019 (page 48). Then headed to Seventeen Seventy (page 51) where Andrea and Bill’s son Adam Stokje and daughter-in-law Sinead are the perfectly poised resident managers of Pavillions on 1770.

Enjoy this edition of Resort News

Mandy Clarke, Editor editor@accomnews.com.au

Clark MDIA

Why resident managers save money and provide better service

By Trevor Rawnsley, CEO, ARAMA

Onsite building management provides more essential services for a scheme, and they are delivered faster, cheaper and with more of a personal touch than any comparable options provided by off-site service providers.

Resident managers save money for unit owners and the body corporate, and they also add great value to a scheme through their work.

The industry survey conducted by international accountancy group Deloitte demonstrated better returns for owners from properties managed under the Management & Letting Rights model.

The survey responses indicated that a resident manager performs the caretaking functions in a more cost-effective manner when compared to other professional outside alternatives.

Pool cleaners and garden maintenance contractors, for instance, will often charge 20 percent more than what a caretaking service provider would be paid in their agreement because the outside contractor does not have the same guaranteed continuity in their role.

Resident managers offer even greater savings to the body corporate.

Guy Elliott and his partner Kathryn Lipsett are operators of a longterm letting gated community at Sailfish Point in Mermaid Waters. They save money for their body corporate and owners every day, going above and beyond the conditions outlined in their caretaking service agreement.

When one of the pool gates at the complex fell off, rather than call in a tradie, Guy and Kathryn immediately went to a store, grabbed a new gate, and bolted it back on. Job done in 30 minutes and the complex secure once again. They did that for free, but if the body corporate had hired tradesmen to come out it would have been a few hundred dollars and a day or two of additional risk for those unit owner occupiers and tenants who live in the scheme.

Recently they had a drug-affected intruder on their grounds late at night. Some of the residents became quite distressed but because Guy and Kathryn are onsite managers available at short notice, they could watch everything on security cameras and give police an exact location and description of the intruder. An outside security company would charge a fortune if contracted to do that sort of monitoring and reporting work and still they would not be as responsive.

In their caretaking service contract

Guy and Kathryn are paid to mow the lawn 40 times a year. Instead, they do it twice a week. That’s more than double their contractual requirements but they do the extra mowing because they want the complex to look great all the time. If the body corporate was hiring outside contractors, the mowing bill would be enormous, and they would care little for the aesthetic because it is not their home.

Not long ago, when one of the residents of the complex complained that his garage door had slipped off its runners, Guy and Kathryn fixed it for free. If an outside company was managing the property, that resident would have had to ring a garage repairman, pay a $100 call out and then $90 an hour for repairs and wait days or weeks if they could actually find a repairman to turn up.

At the Dorchester on the Beach on the Gold Coast, Michael Cross and his wife Karen, ARAMA’S Building Managers of the Year, view their management agreement as the very least they have to do.

Recently, an elderly resident lost her keys down the lift shaft. She was in a state of panic, but Michael, who has run the complex for the last eight years,

quickly came to the rescue in a way that no outsourced facilities management ever could. Michael went to his safe, took out a spare key, walked the lady to her door and let her in. She was looking at a bill for hundreds of dollars for new keys from a locksmith, instead Michael contacted his lift maintenance guy directly and the keys were retrieved for a carton of beer. Job done with a minimum of fuss. That’s just one of the many economic benefits. A resident manager, like having a permanent good neighbour who is always at the ready to solve problems.

Eric Van Meurs, who manages the Atlantis at Marcoola on the Sunshine Coast, says going that extra step is the foundation of what makes the difference between on-site managers and outside service providers.

Eric points out that the extra things that resident managers do above and beyond the MLR agreement can make all the difference to building a letting pool, maintaining that letting pool, and adding value to the owners’ units and to the body corporate.

He operates his business on the premise that it’s not about whether you can charge an extra dollar for

something, it’s about what else you can do for people when they don’t really expect it. Delivering service above and beyond the customers’ expectations is a sign of a great service provider.

Eric does enormous research to find preferred suppliers for services such as air conditioning, to find out how residents can save money. He will oversee entire refurbishments for units and won’t charge a cent above the cost of the new fittings because he knows that the owners are creating a better product for him to rent out in the letting pool.

Chris Podmore, who has been at Brisbane’s Riverside Hotel for almost 14 years, saw how plumbers installed tap fittings in units from $250 to $300 and decided he could save owners a lot of money by doing it himself. He also watched how plumbers fixed water leaks and decided he could save the body corporate significant amounts of money by buying and fitting simple repairs himself.

After fire contractors quoted what he says were “ridiculously high” amounts to replace some “003 locks” and the leather straps that go around the associated valves, he found the same

locks online for $20 instead of the $100 he’d been quoted. He found the fire-rated straps at $25 each rather than $85 on the contractor’s quote. The savings for the scheme were significant.

Sam Khalef, the owner of the industry’s leading property management software company MYBOS, says building managers using his software save bodies corporate money because they can better keep track of all their work orders and manage preventative maintenance.

If maintenance schedules aren’t checked at the right time expensive problems can fester.

Resident managers using MYBOS also save a scheme money with

enhanced communication. If a lift is out of service or a gate isn’t working, or if there’s a flooding issue, the resident manager can immediately contact everyone in the complex by SMS, email or push notifications. Informing residents instantly about serious issues and emergencies saves money and can also save lives.

Simon Carr, from the awardwinning company Wilko Painting, says that good resident managers are right on top of important maintenance such as washing buildings which would be expensive if outsourced.

Companies often issue 10-year warranties on their painting work, but those warranties are only

valid if you continue to wash the building. A simple building wash can also identify problems before they get worse, especially considering that a lot of resorts are near the ocean and affected by harsh and moist conditions.

Resident managers are specialists in their buildings, and they know them back to front. If there’s a problem in one unit (such as water leaks) and it happens again in another unit, they pretty much know how to fix it quickly.

The Deloitte survey was completed by lot owners throughout Australia. More than threequarters of the respondents to the Deloitte survey estimated that an onsite letting agent generated higher rental return yields than an off-site letting agent.

More than 97 percent estimated that onsite caretaking directly reduced costs for owners.

These are irrefutable reasons which prove that the management rights business model delivers better services and saves the scheme money 24/7 for 365 days, and it is baffling when the knockers ignore these facts due to their own self-interests and hidden agendas.

© Adobe Stock, stock.adobe.com

Understanding the procedure for topping up process in NSW

by the NSW Strata Schemes Management Act. Accordingly, letting agreements can be for any term (10, 20, 25 years and so on) whereas the legislation states that Building Management Agreements come to an end, 10 years after they commence. Obviously, it is best not to ‘connect’ the two agreements.

of the strata plan and see what the unit entitlements are for each lot. In most cases, the more expensive units have a higher unit entitlement.

Lobbying your owners

make sure that you have been in contact with as many owners as possible, before the notice of the general meeting is sent to owners, as voting papers can now be completed online, as soon as the notice of meeting is received.

By Col Myers, Small Myers Hughes

In Part 1 of this article, we looked at:

• The definition of a building manager under the NSW strata legislation;

• The upfront disclosure required by a building manager, before being appointed;

• The method of appointment of building managers;

• The maximum term of a NSW Building Management Agreement;

• The form of the top up;

• The procedure for topping up;

• How to call an EGM if your top up can’t wait until the next AGM;

• The use of proxies in the topping up process; and

• Whether the voting is by secret ballot or not.

This article will look at how to best achieve a top up in circumstances where you have a strata committee that either will not support your top up motion or vigorously opposes your top up motion.

Letting agreements in NSW

It is important to point out that letting agreements (which are designed to give the building manager the exclusive rights to operate a letting business onsite, ie., from the manager’s lot or from the common property) are not regulated

In my view, having an onsite letting agent is a big bonus for owners in a complex, as the agent lives in the same building as the tenants they put into owners’ units and will know how the tenants are behaving, way earlier than units rented by outside agents.

Strata committees opposing a building managers ‘Top Up’ request

Obviously, if a strata committee does not support a building manager’s top up motion, it will make the Top Up process harder to achieve. However, don’t despair, you just have to work the process a little differently and bypass the strata committee (who will consist of no more than nine owners) and go directly to the other owners in the complex. Strata motions are all about the vote!

Building managers only need 51 percent of owners to vote in favour of their motion and the Top Up is achieved. However, if a ‘poll’ is called, that threshold becomes 51 percent of the unit entitlement for the scheme, so when looking at your numbers, obtain a copy

There is no conflict of interest in a building manager lobbying owners. You need to remind the owners of the good job you do in looking after their investment, and of all of the little extra things that you do for the better upkeep and maintenance of the complex, that they may not be aware of.

First and foremost, you need to obtain an up-to-date list of all owners in your complex, and their contact details. This information is held on the strata records and, as an owner, you are entitled to search these records at the strata manager’s office and obtain this information. Generally, the strata manager will provide these lists to owners for a small fee.

Once you have these details, set up your email group so you can send letters to owners in the lead up to the general meeting. Remember, the strata committee will most likely be sending letters to owners advising why they should vote against your motion. Clearly, the more personal contact you can have with owners, the better chance you have of encouraging them to vote for you.

Timing

Timing is everything with your lobbying of owners. You need to

As I mentioned in Part 1 of this article, building managers cannot hold and use proxies that give them a material benefit, such as extending the term of their Building Management (and Letting) Agreements. However, other friendly owners can hold proxies to vote ‘yes’ on your motion. For schemes under 20 lots, a person may hold only one proxy. For schemes over 20 lots, the maximum number is not more than 5 percent of the total number of lots. This is rounded down to a whole number if fractions are involved.

Making Sure Owners are financial

Finally, you need to make sure that owners who have committed to vote ‘yes’ to your motion are financial, otherwise their vote for your motion will not be counted. The strata legislation requires that any payment of outstanding levies (or interest on outstanding levies) must be made before the meeting commences, otherwise the lot owner will be deemed to be unfinancial and their vote won’t count.

Disclaimer: This article is provided for information purposes only and should not be regarded as legal advice.

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Guy Elliot

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Debra Tapiolas

Adam Lill

Proxies versus representatives

proxy holder does need to be part of the body corporate.

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

If you are unable to attend a body corporate meeting, someone may be able to represent you as your proxy, or as your representative. There are many misconceptions about the differences between a proxy and a representative.

Although both involve exercising someone else’s voting rights, these terms are not interchangeable. While the focus of this article will be a comparison of general meeting proxies and representatives for community titles schemes registered under the Standard and Accommodation Module, we will also touch on the differences between general meeting proxies and committee meeting proxies.

General meeting proxies

An owner can appoint a proxy to represent them at a general meeting by filling out the prescribed form (BCCM Form 6) and giving it to the secretary before the start of the meeting, unless the body corporate has set an earlier time. Aside from a few exceptions, such as a body corporate manager or an associate of a body corporate manager, almost anyone can be appointed as a proxy for a general meeting. For instance, an owner with an investment property could appoint their tenant, or a busy owner could simply appoint a family member or a friend. The

However, there are some important limitations on general meeting proxies to bear in mind. If there are fewer than 20 lots in the scheme, a person must not hold more than one proxy. For schemes with 20 or more lots, a person must not hold proxies for more than five percent of the total number of lots. Restricting the number of proxies someone can hold is intended to prevent ‘proxy farming’ and promote a more even distribution of voting power.

General meeting proxies are also barred from voting on certain types of resolutions, including:

• secret ballot motions;

• electing committee members;

• engaging a person as a body corporate manager or a service contractor, or authorising a person as a letting agent;

• voting on a motion where

the owner who gave the proxy has already submitted a hard copy or electronic vote on the motion; and

• voting at the general meeting if the owner who gave the proxy is present personally (unless the owner has given their consent).

The proxy giver can also choose the length of the appointment. Depending on what the owner selects in the prescribed form, the appointment can be for a particular meeting, for all general meetings held before a specified date, or for the duration of the body corporate’s financial year.

Representatives

Representatives can represent an owner at a general meeting. Unlike general meeting proxies where virtually anyone can be appointed by an owner, the legislation requires a person to fall into a specific category to be a representative, namely, a person acting under the authority of a power of attorney

(subject to specified conditions), a guardian, trustee, receiver, or other representatives of the lot owner who is authorised to act on behalf of the owner.

To exercise general meeting votes in this capacity, the individual’s name will need to be entered on the body corporate’s roll as the lot owner’s representative. The representative must also provide certain information to the secretary. Specifically, the instrument which gives the individual their representative capacity, or other documentation evidencing this capacity, their residential or business address, and if different, their address for service.

Before the regulation changes, which came into effect in March 2021, a person could act as the representative for an unlimited number of lots under a power of attorney. Due to stakeholder concerns about the strategic use of power of attorney votes at general meetings, the circumstances in which someone can act as a representative under a power of attorney for more than one lot are now limited. Like the limits on the number of proxies someone can hold at a general meeting, restricting the number of lots you can be the representative for, when acting under a power of attorney similarly reduces the likelihood of an unfair concentration of voting power. Exceptions exist for owners of multiple lots, family members of the representative, and powers of attorney given to the original owner under sections 211 or 219 of the Body Corporate and Community Management Act 1997.

The most significant distinction between a general meeting proxy and a representative is arguably the pool of matters that can be voted on. Whereas the voting power of a representative at a general meeting essentially mirrors the voting power of regular owners, as discussed earlier, a proxy is unable to vote on various types of resolutions.

Almost anyone can be appointed as a proxy for a general meeting

Delivering value in Strata

diamonds can be hundreds of thousands of dollars.

So, what does this have to do with strata? A whole lot. One of the key things to remember about human beings is we are social, emotional creatures who value quality relationships above all else.

By

Economists describe value as being a measure of the benefit provided by a good or service to an economic agent. It is generally measured through units of currency, and the interpretation is therefore “what is the maximum amount of money a specific actor is willing and able to pay for the good or service.”

Human beings do not assess value rationally. Coal and diamonds are both made up of carbon. One is useful and helps generate electricity, the other mostly ornamental, and outside of mining has no discernible function. Coal retails at $196.00 a tonne at the time of writing, whilst

Committee meeting proxies

Voting committee members can appoint a proxy to vote on their behalf at a committee meeting by giving the prescribed form (BCCM Form 7) to the secretary before the start of the meeting, or an earlier time set by the body corporate. However, a secretary or treasurer must complete the form and obtain committee approval to appoint a proxy.

While there are very few limitations on who can be

How an experience makes you feel is highly subjective. If I handed you a sweaty sock, you couldn’t care less and would probably be a litt le disgusted to be frank. If David Beckham handed you one, you’d either take it home and frame it or chuck it on eBay as soon as possible.

The same thing goes for customer service. A barista with the right att itude, a warm smile and engaging demeanour will keep you going to your local, even if it is twice the price of servo coff ee.

What does this mean for strata professionals, particularly as more and more consumers are exposed to you? You have to go beyond the bare minimum of rigid, basic workflow and pro forma meeting minutes and documents and help ensure the experience of lot owners in your schemes is enhanced.

What does this look like in real terms. Minor dispute between owners? Can you use your legislative knowledge and people skills to mediate?

Can you keep contractors honest when it comes to

appointed as a general meeting proxy, for a committee meeting, a proxy can only be another voting committee member. This prevents the appointment of body corporate managers or caretaking service contractors, who are nonvoting committee members.

A voting committee member who has been appointed as a proxy can exercise two votes: one vote in their own right, and another in their capacity as proxy. However, a proxy cannot be exercised at a committee meeting if the

delivering quality scheme maintenance? Can you provide warm, well communicated guidance to your committees when they seek advice?

This is the value proposition of the strata manager. Technical, black letter knowledge has never been so freely available. More and more people are trying to disrupt traditional industries by augmenting tech and the skills of lay people. It’s already here in strata and a very real threat to our business model as strata managers- if we don’t adapt to deliver real value. Strata management, is increasingly, probably not the right word for what our members do. It is more like strata advising or consulting; providing guidance, insight, and clear communication to lot owners, who are often emotional. This is where the value in strata managers really is. Emotionally intelligent individuals combining their soft skills with legislative knowledge and going that extra mile to ensure that a scheme is well run, and its residents are happy. This is how we envision strata managers delivering value into the future. Strata managers delivering value is about how you interact with people and their most important financial and personal asset - their home. I could labour any of the multitude of metaphors about homes we have in our culture,

proxy giver is present personally or by electronic means.

A voting committee member can only be represented by proxy at two committee meetings in the year of the committee’s appointment. This is unlike an owner’s ability to appoint a proxy for any general meetings held during the body corporate’s financial year. Also, while a general meeting proxy form gives owners options about the length of the appointment, a committee meeting proxy automatically ends after the meeting.

but I will just say, they are important to human beings.

Where our managers deliver value in people’s homes is by using their insight, intellect and unique skills to help make people’s homes more liveable.

Strata professionals need to carry themselves in a way which helps deliver better homes, better communities and above all, value to their clients. Delivering minutes, agendas and litt le else will see you go the way of the dodo.

I am confident our push towards higher standards of education and professionalism in strata will help enhance our value proposition. Legislative rigour, strategic decision making and skilful negotiation and management of not just assets, but people will be the hallmarks of this industry.

Strata started its life as a cott age industry 60 years ago, or so, in New South Wales. Few would have predicted the enormous complex buildings and schemes we now see as workaday. These schemes are monuments to human engineering, intellect, and ability to organise. But to deliver value to the inhabitants, our approach must change. We don’t want our strata managers to be engaging in transactional low skill work, we want them using the full breadth of their skills to help build and maintain harmonious, homely communities.

By highlighting the key distinctions between general meeting proxies and representatives on the one hand, and between general meeting proxies and committee meeting proxies on the other, we hope that this article has provided clarity on an area of body corporate legislation that can be confusing for stakeholders. It is important to have a solid understanding of the rules surrounding proxies and representatives, as they can influence voting outcomes significantly.

Laura Bos, General Manager, SCA (QLD)

Management rights blockbuster rated “PG”

By Grantlee Kieza, Industry Reporter

In the accommodation industry, it’s said that Paul Grant, from Mike Phipps Finance, settles more management rights and motel contracts than anyone in Australia.

The Noosa-based finance broker, known everywhere as PG, has more than two decades of experience in the accommodation industry and estimates he has put together finance for more than 1000 properties. In the past 12 months alone, he has assisted 116 clients.

He has been the finance broker for a significant number of very well-known industry operators and has assisted in the acquisition of many iconic properties, including nearly all the benchmark transactions in Noosa over the past few years.

His multi-building portfolio clients now form a significant proportion of the company’s Tier 1 client base.

Paul counts a significant number of industry professionals as clients, and he has arranged the finance for large motel and caravan park transactions Australia wide.

He says that the strong confidence expressed by bank credit departments for Mike

Phipps Finance appears to be reflected in a “relatively hassle free” finance process.

“Also, it’s a reflection of the great relationships we have with bankers on the front line,” he said.

Paul and his wife Nicole have been based in Noosa for the last 15 years with 12-yearold twins Liam and Finn.

“I lived all over the place as a kid,” he told Resort News “My dad was in the army, so we travelled a lot and moved every couple of years. I’ve lived in pretty much every state and territory in the country, but I grew up primarily in Victoria on the Murray River at Wodonga. It’s a bit different

to Noosa in that it’s a long way from the beach but it was still a lovely place to grow up.”

After studying commerce and majoring in accounting in Canberra, Paul worked for the ACT government before moving into private practice with an accounting firm in Canberra.

Then he met Nicole, moved to Sydney to be closer to her, and then they eventually found their way to the Sunshine Coast after his brief time working in Edinburgh for the Halifax Bank of Scotland.

“I have fond memories of living in the UK but also of walking to work in horizontal driving rain and my umbrella snapping in half,” he said.

Finn, Nicole, Liam and Paul Grant

“We eventually moved to the Sunny Coast which was a lot different to that.

“I was working with KPMG at the time and I moved across to Suncorp Bank and worked there for a couple of years. That’s where I got to know Mike Phipps. Mike and Steve Austin were the two management rights experts at Suncorp and they both left within a couple of weeks of each other, and I was thrust into the hot seat straight away to take over their roles.

“Then I jumped ship about 10 years ago and joined Mike at his own company.”

Paul said he was seeing more syndicates becoming involved in management rights but added that it will be interesting to see what happens as financial conditions change.

“Interest rates have increased along with the value of the properties and the price of the businesses, so the returns for investor syndicates in some cases are easing,” he said.

“We’re seeing returns that are now lower than they were 12 to 18 months ago, and it will be interesting to see what effect that has on the syndicate market.

“I actually don’t think it will slow it down too much because investors are still getting a decent return comparative to the risk.”

Paul said anyone getting into management rights or the

motel industry needed to follow the basic principles for the business - have a good team around them with industry specialist lawyers and industry specialist accountants.

“They must have a real understanding of where they want to be and what they want to do,” he said.

“They also need to have their finances tidy and all their tax returns up to date (all the simple things) and they shouldn’t be closed off to where they might end up.”

Paul spends as much time as possible with his family at the beach and whenever he can, in the snow.

“I lived in Finland for a period of time, when I was in high school on a student exchange program, and it was bloody exciting. My home was just about 50 kilometres to the east of Helsinki,” he said.

“It was fabulous. We took our boys there a few years ago, just to meet the people I lived with and my mates from those days. It was very cool. I really enjoy travelling and taking the boys to do that sort of stuff.”

He said he expects strong activity in management rights sales in 2023 in Brisbane’s corporate sector and the Gold Coast leisure market.

“Apartment hotels are going gangbusters right now, for a few factors.

“There is limited hotel supply, there isn’t much new product and even established hotels are struggling to find staff, especially good cleaning staff.

“Some hotels are not even putting all their rooms online because they don’t have the staff. Ever since the floods, corporate Brisbane has gone berserk. More and more people are starting to choose to stay in an apartment rather than a hotel room, and perhaps they are finding that an apartment under management rights offers more of a personal touch.”

Paul said permanent rental complexes were also doing great business throughout South East Queensland.

“There is obviously a limited supply of new stock. We’ve seen rents rise and people lining up around the corner to try to get an apartment to rent. Now we’ve got a lot of international students returning and trying to find accommodation too, so apartment complexes are doing great business.”

There is also a lot of pressure on management rights with the attacks on term for resident managers, but Paul is confident that the issue will eventually be resolved “in a decent and sensible manner”.

“A few things might tighten up,” he said, “but fundamentally the management rights industry is simply too big and too strong for anything to strike an axe through it. Further to this, the

management rights model is clearly the most efficient and effective way for these buildings to be operated. It would be a disaster on so many fronts if anyone tried.

“There are so many people and so many businesses involved, everything from students to holiday resorts to permanent rentals.

“If you try to make drastic changes to those businesses you could have problems that people haven’t even thought of yet.

“It doesn’t make sense to make wholesale changes to management rights and it will make things invariably worse in the accommodation industry if terms are slashed.

“Unfortunately, it’s the squeaky wheel that’s getting all the attention at the moment, but long-term resident managers are the best people to run management rights.”

There have been some recent changes at Mike Phipps Finance with Josh Haylen now partnering with PG as a broker. Paul said: “Josh has been in the business for just on two years, we plucked him from a non-finance related industry and couldn’t be happier with how he has learnt our way of operating and the ‘ins and outs’ of the accommodation sector.”

Prior to joining Mike Phipps Finance Josh studied Business Administration at the University of the Sunshine Coast while also working full time.

“Josh showed from day one, a strong aptitude for finance and commenced his additional study to become a broker as soon as possible.”

Josh and Paul will now partner on all their transactions.

“We think this model bolsters our service proposition to our clients and stakeholders. On every deal, people will have at least two points of contact and two phones they can ring for updates or queries. In addition to this, we also have three full time client managers working out of the office.

“Every client we have gets allocated a designated client manager who works in tandem with the broker to have their matter looked after.”

Finn, Paul and Liam Grant

The accommodation module trap

Most readers will be acutely aware of the importance of your complex being in the accommodation module which, apart from reducing some of the red tape associated with the standard module, allows for management rights agreements to be for a term of up to 25 years.

Unsurprisingly, developers who choose which module to apply to the complex they are developing, opt for the accommodation module, often without too much regard as to whether the complex actually qualifies for that module. However, doing so in circumstances where the complex clearly never qualified for that

By John Mahoney, Mahoneys

module, can be a problem for the resident manager.

The effect of the Body Corporate and Community Management Act and various case authorities is that for a new complex to qualify for the accommodation module, when the first CMS is recorded (when the complex

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is completed) the majority of the lots in the scheme must be intended to be accommodation lots (ie, lots being let out or immediately available to be let out for short or long term residential purposes).

Whilst historically little attention has been paid to this requirement, as a consequence of a relatively recent decision from the Body Corporate Commissioner’s Office, lawyers for managers buying off the plan are investigating this issue with much greater scrutiny. That decision confirmed the right of a body corporate, or even an owner, to subsequently challenge the developer’s selection of the accommodation module in circumstances when the complex clearly did not qualify for that. In that case the outcome was that the complex was ordered to transfer to the standard module.

The good news is that in a subsequent QCAT decision regarding that complex, where Mahoneys represented the manager, the body corporate’s argument that in such case the caretaking and letting agreements were void, was rejected.

The not so good news is that the consequence of the change of module is, based on certain QCAT decisions about the impact of an assignment on caretaking and letting agreements, likely to be that if these agreements are assigned in the future, the term will reduce to 10 years from the assignment. Still, this is a far better position than the outcome sought by the body corporate.

As a consequence of the decision from the Commissioner’s Office it is likely that off the plan buyers of management rights, and subsequent buyers from them, will look closely at the makeup of unit buyers ie, owner occupiers versus investors when the scheme is established. In the case of an off the plan buyer, unless it is clear when they go to contract that the complex will qualify for the accommodation module, they are likely to require a mechanism in the contract to deal with what happens if there are more owner occupiers than investors at settlement which is usually shortly after the scheme is established.

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QCAT accepted the position put forward by Mahoneys that this was not the case, that whilst the scheme was (albeit incorrectly) initially placed in the accommodation module, the subsequent change to the standard module did not change that initial position as the module change was not retrospective and that in such instances agreements will retain their 25-year term.

What that mechanism might be, will no doubt depend on many factors including the multiplier used to calculate the proposed purchase price, the buyer’s experience in the industry and what appetite the buyer has for risk.

It will be interesting to ‘watch this space’ as the industry grapples with yet another twist. However as has been shown over many years and many challenges, the ever-resilient management rights industry will find a way to deal with this latest one.

Trust account audit issues

The legislation reads:

17 Trust account cash book reconciliation

(1) A principal agent must, within 5 business days after the end of each month-

a. Reconcile the trust account cash book balance as at the end of the month with the trust account ledger balances that show-

By Jonathan Hanaghan, Director, Jonathan Grant Accountants

I have been seeing, for some time now, an increase in Office of Fair-Trading activity in reviewing and penalising licensees for breaches to the Agents Financial Administration Act 2014. While some appear to be more serious in nature the focus appears to be educational with warnings common for first time offences. With this in mind I thought it prudent to set out the issues I’m seeing on a regular basis below.

Monthly reconciliations

What a lot of licensees don’t appear to understand is that the trust bank account must be reconciled to the balance on the last day of each and every month. Not the second last day or the first day of the next month but the last of the month. This doesn’t mean you literally have to reconcile that day. You have up to five days following the last day of the month to perform the reconciliation, but it must commence with the bank balance at the last day of the month.

Queensland legislation, Agents Financial Administration Act 2014, requires the bank reconciliation to be performed on the last day of each month.

i. Each trust accounts creditors name; and

ii. The amount held on behalf of the creditor as at the end of the month; and

b. Reconcile the financial institutions statement balance for the principal agents trust account as at the end of the month with the trust account cash book balance as at the end of the month.

Receipting and banking

This is another area where many licensees are not aware of their responsibilities. While receipting must be done as soon as practical following the receipting of funds, the banking of any cash and cheques has strict rules. All banking must be done either on the day of receipts or the following business banking day. For cash or cheques received on a weekend the OFT allows an extra day with Tuesday being the final day in which these funds must be banked.

Non-trust funds

This will predominately apply for short term accommodation providers when they receipt funds which represent trust funds (accommodation on behalf of an owner) and non-trust funds eg, internet, tours, or meals income. As the non-trust funds are the income of the licensee

these funds must be cleared and transferred out of the trust account within 14 days. The OFT have been very strict on this matter in recent years.

Mid-month licensee draws vs mid-month owner payments

I have seen many instances where the licensee has taken mid-month drawings towards their end of month fees and commissions. This is a clear breach unless the funds represent non-trust funds (see above). To take midmonth licensee payments the licensee must perform a full reconciliation (say on the 15th) and ensure that all owners and other relevant payments are made prior to the licensee withdrawing their mandated fees, charges and commissions.

Owner letting agreements

This is another area which causes confusion. All current charges to owners need to be documented within the respective owner letting agreement. This means if you have updated or intend to update your schedule of manager fees and charges you need to update your owner letting agreements. We always advise seeking legal advice from your industry specialist before proceeding.

What your auditor wants

This will vary depending on the auditor and software being utilised. As a general rule the

following is a minimum of what needs to be kept in hard copy on a monthly basis and be available to the auditor at each audit:

• copy of the final EOM threeway bank reconciliation on last day of each month (If your system produces multiple three way reconciliations, as part of the month end reconciliation process you should ensure only the final version is retained);

• reports detailing outstanding and unpresented deposits or payments;

• reports detailing any adjustments;

• report detailing monies held in trust;

• all original bank statements;

• copies of all receipts or access to computerised duplicate copies;

• cashbook report; and

• owner’s statements and ledger detail reports.

It is important to ensure that the last six points above support and reconcile with the detail of the final EOM three-way reconciliation.

I encourage all licensees to discuss the above with their auditor to determine if there may be any risk within their current practices or how they may improve the presentation of their paperwork.

What’s it worth?

ancient history! Further to this, what it may be worth in three years, is also irrelevant. What the business is worth today, is what the market is interested in, and what a potential seller should be focused on. The question at hand is rarely easy to answer. There are a few ways to go about it that can make life a lot easier.

By

It doesn’t matter what is being sold, we want to know what it is worth. After listening to the advice of others and completing one’s own research, if the correct decision to sell is going to be made, then one needs to determine for themselves what they realistically believe the motel business is worth in the current market at that time.

The important word here is ‘current’. Too often those considering selling get hung up on what a business was worth historically. Again, this goes for anything, houses, cars, you name it. If the business was worth $1m three years ago, it may be worth more (or less) now. Three years ago, may as well be

Have the most recent profit and loss statements been prepared by the accountant for sale purposes?

This will provide the basis for which the value of the business or property can be determined. Without these documents being prepared and being accurate, there is very little that can be done to form an accurate value for a business. The key here is that the profit and loss statement is prepared ‘for sale purposes’, so that the motel business can be readily compared with the market sales evidence.

This is to get the most accurate information, to get the most accurate result. In other words, comparing apples with apples. Providing financial statements requiring someone to edit them with adjustments is not ideal. It gives opportunity for them to be questioned and unwarranted concerns created over the data.

What have other similar motels in the region sold for?

Find out what other motels in

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the region have sold for. This is not easy to find out as there is no program or database that contains this information specifically, unlike residential or commercial property which can be readily accessed at the click of a button.

To find out this information one must speak to reliable people within the motel industry in order to get accurate information rather than rely on rumours of what the sale price may have been, which we often find is inaccurate.

How does this motel compare to the motels that have sold?

Comparing the properties and business components is vital and is a major consideration. Are they of a comparable size, standard, unit type, location, clientele, construction and so on. If the motel is leasehold, then the lease terms will also need to be compared carefully. For example, the tenure remaining, annual rental, terms...

What capitalisation rate will be appropriate for this motel?

After having considered the above, it can be determined what ‘cap’ rate the market is going to expect for such a motel. If the motel is the same as another which has sold, then that makes this question much easier to answer.

In reality, this is never the case. Therefore, one must consider the differences between the sales evidence and the subject

business or property and determine the appropriate adjustment to the cap rate that the market will make. This is not the easiest part of this process, as the market’s perception to the differences needs to be calculated. A basic example is, if two motels are almost the same, however one is deemed by the market to be in a slightly less desirable location, how much will the market adjust the cap rate taking this difference into consideration?

Make sure the information you gather is reliable.

Contact professionals who are specialists in their field as they are the people who know their industry and are the best to advise on and achieve the best for their clients. The motel industry is no different. Specialist accountants, solicitors, bankers, valuers and brokers are in the best position to advise on matters within the motel industry. If one is selling a house, go to those who specialise in residential sales. If one is selling a business, go to those who have the direct experience and knowledge within that field. Dabbling in the sale of this and that, does not make one an expert.

Making the correct decision can save a business owner not only financially but also emotionally, as the sale of a business can be an emotional and expensive rollercoaster ride if not handled correctly.

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

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Op-Ed: That ‘person’

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As I sit here tonight and ponder the current debate, ‘attack on term’ for management rights, I start to realise that this is not an attack on term, but really an attack on the management rights concept. The unique concept has proven itself for many years now in Queensland. Having lived, rented and stayed in other states and territories, and worked as a property manager I can talk from experience. I have experienced all sides. As an investor, an owner, a tenant and a property manager in both low and peak markets. In rising and falling markets. But, regardless of your accommodation requirements one thing does not change… Everyone needs a ‘person’. So, who is that person? What is that person’s role? Why does that person matter? Do you really need that person? And what if you don’t have a person?

That ‘person’

Depending on your property situation, your person could be any of the following:

• Your neighbour who’s there to put your bin out and keep watch while you’re away.

• Your property manager who you trust to let you in when you lock yourself out.

• Your property manager who makes sure your tenants pay rent in time to cover your mortgage repayment.

• The friendly face you wave to every day, when you drive out knowing your townhouse will be safe.

• The onsite manager you call when you go out and wonder if you left your roller door up.

• The person you know who will be minutes away in an emergency.

• That onsite manager who makes you feel safe in your home.

• That manager you call when there’s a lizard, spider, wasp, frog or toad in your townhouse.

• The manager who notices when strange cars come and go from your investment unit daily.

• The property manager you call to pay your property

accounts because you don’t have time.

• The person that has every spare part for your unit on hand.

• That person your daughter leases from, while she studies and feels safe closer to the city.

This list could go on and on…

In Queensland the reality is that ‘person’ is your onsite manager! Onsite managers provide security and assurance to many investors, tenants, retirees, and owners occupiers state wide. A unique position to other states that works incredibly well.

Reducing the term destroys the management rights industry’s fundamental concept and removes the ‘person’. Much like the security an onsite manager provides their customers and clients, they too need security of long-term agreements.

Reducing the term reduces saleability. The long-term goal is removed. And if you remove the goal there is no game. The ‘person’ is gone.

Maree Smith, Manager, Hidden Vista Resort

Maree and Ian Smith

Here’s a tip

By Mike Phipps,

As some of you may know I am a late arrival to the pastime of snow sports. It’s not that I haven’t always had an interest in skiing, mountains, and snow. It’s just that when you are married with two kids, trying to pay off a mortgage and living pretty much week to week, the prospect of mixing it with the snow resort jet set seems one hell of a stretch. Of course, travel brochures are free so who says you can’t dream?

Anyway, in my advancing years and with the kids off our hands (are they ever really thus?) the ‘managing director’ and I, having lucked out and made a few bob, ventured on our first ski trip to Falls Creek. Two discoveries quickly ensued. I was hooked and the MD hated it. Well to be fair, she hated skiing and being cold. The après were a hit so I guess all was not lost. We subsequently ventured to New Zealand where my addiction took full hold and the MD’s dislike for the whole stupid endeavour was fully realised. To her credit she has accompanied me to NZ on subsequent excursions but there is no chance of getting her into those horrible ski boots ever again. The entire point of the exercise is lost on her, and

she considers it all just too much trouble for too little fun. By the way, any smart comments comparing this with my personal life will not be well received.

I could be cruel and critical but, in the interest of asset protection, the MD controls everything and has the power to hurt me in ways I do not care to imagine. As such I accept her position with my usual good grace. Anyway, as luck would have it, our son in an act of magnificent personal sacrifice, volunteered to become my ski trip companion, even agreeing to fly business class at my expense, just like mum would have done. What a guy!

We did a test run to Japan a few years back and had great fun. In the interim Nic and his wife Tayla got married and are expecting a new arrival as a sibling for daughter Harper. I judged the impending cessation of solo travel rights for Nic and immediately booked the last hurrah. Canada here we come.

This move came with considerable risk. If you have ever tried arguing the merits of taking a husband away from a pregnant mother of one very energetic two-year-old, let me tell you… it’s a zero-sum game.

I was left in no doubt that any further transgressions in the travel department would not be well received. People say that women take on a glow when expecting. I now know that said glow is surely real but not necessarily benevolent. Point taken and apologies extended to no avail. I remain on the hit list.

Qantas is the preferred carrier, but Air Canada get the gig. Price savings were just too compelling, so we take the plunge with an airline we’ve never flown with. They fly direct Brisbane to Vancouver and have been getting decent reviews, turns out with good reason. The service is professional and friendly, food and beverage about industry standard, bed comfortable and most importantly the plane didn’t fall out of the sky. I compliment

a crew member on the coffee and she replies, “that’s nice, but where else you gonna’ go?”. At 30,000 feet she had a point and a sense of humour.

The bus ride Vancouver to Whistler is about two and a half hours on the Sea to Sky highway. It’s mostly spectacular views and the transfer service is super professional and very comfortable. We arrive at 10:30am with our check in at 4pm. There’s no early check option which seems strange given the check in and check out timing and no guest lounge as such. I’ve never really seen the point in converting areas in resorts to cater for early arriving guests, but I sure do get it now. As luck would have it our accommodation turned out to be pretty good in all other respects and the jetlagged nightmare of our first day was soon forgotten.

We ski our second day and discover that despite personal perceptions we are seriously out of condition. The situation demands an urgent remedy, so we repair to a dining

Mike Phipps Finance

establishment for a few beers and a bite. All goes very well and at night’s end we are presented with the bill. Looks about right albeit Canada has an interesting price transparency system. GST and other taxes are not noted on most menus or indeed most price tags. The EFTPOS terminal is proffered, and I hit the ‘Accept’ button. And there it is. In the final throes of the transaction the awful truth is revealed. The dreaded tip. Now, I know it’s something you do in Canada, but the process has been taken to a new level. The payments terminal defaults to a series of options starting at 17 percent and escalating from there. The final option is well north of 20 percent. Hidden from a first glance is a button which allows the punter to nominate a different percentage, but you need to search to find it. Not wanting to offend I took the 17 percent option. That’s 17 percent on top of meal and booze prices that are expensive by any measure. Here’s the thing. I get the tipping culture. Wages in many places are terrible and tips help staff make a decent living. I also think that service is generally better when a tip is involved. In Australia a request for a recommendation on a good dry white often involves the server advising that they don’t like white wine. The implication being that the staff’s alcohol preferences inform their knowledge of the wine list. Compare this with the reaction in Canada where great service drives ultimate income. Knowledge of the wine list and menu is extensive, and you are never left waiting for someone to fill your glass or take your order. But… there’s always a but.

I struggle to reconcile the high prices being charged with the low wages being paid and the expectation that I will not only pay those prices but also subsidise labour costs. There seems to me to be a disconnect between the low cost of labour and prices that suggest businesses are not passing on lower operating costs resulting from that labour cost. It’s a kinda have a cake and eat it scenario that I’m not sure sits well with me. What I do know is that the tipping culture most certainly drives superior service, so I guess that’s a positive.

While dining one evening we got chatting with a local business owner who made a good point. Great service providers, particularly in hospitality, make good money, mostly from tips. This opportunity brings people to these jobs on a long-term career basis rather than a part time, stop gap gig. We debated the pros and cons well into the night and, according to my son, she paid for the last round of drinks, and I agreed that, in the final analysis, tipping was a fabulous idea. For the record Your Honour, I do not recall. One might wonder if a similar culture would work in Australia. Lord knows service standards

could improve. We’d have to lower the minimum wage of course, or the service and income incentives would evaporate. Good luck with that.

In any event we had a great time on the last hurrah albeit not without some injuries. My son seems to think it’s funny to go down difficult and dangerous black runs as my reconnaissance man and then shout out that it’s not as hard as it looks. He then finds great amusement in witnessing the ensuing carnage as the ‘old man’ crashes his way to the bottom. At times I wonder if, at 62, I’m just too old for this sh*t and my most serious injuries may be

the proof. Entering the grocery store after an afternoon on the slopes I was confronted by a large sign some idiot had placed in the middle of the check in aisles. Still wearing snow covered ski boots and helmet I attempted to step around the obstacle only to perform a perfect three-point landing. That is, bum, shoulder and head hit the deck simultaneously. As I lay there stunned and in a fair amount of pain many customers surrounded me with offers of assistance. One asked me if I had seen the sign? My focus cleared and the sign I had partially landed on came into view. “Beware Of Entering This Shop in Ski Boots. Floor Will Be Very Slippery and Injury May Result”.

As luck would have it, I broke nothing and the helmet saved me from concussion, or worse. Anyway, I’ve decided, in spite of my advancing years, that I’m not too old for this sh*t but I’ll never go grocery shopping without a helmet, that’s for sure. The folks at the IGA in Noosa should be most amused.

Footnote #1: You may wonder how hospitality businesses manage tipping in an equitable fashion. They do it with some pretty sophisticated iPad-based tracking that links your table to your server. Tips are shared (not sure on what percentage basis) so the server gets rewarded but so do the kitchen staff and other non-customer facing employees.

Footnote #2: You may wonder what happens if you dine at a splendid Whistler restaurant, rack up a pretty substantial bill, pay it but leave no tip. As an experiment we did just that. I got out alive, but my son was confronted by staff who interrogated him as to why no tip was paid. He confessed that he had a weird dad who was a bit of an anarchist and paid a small gratuity. I popped in the next day and left a cash tip with the staff. The idea of a customer returning to pay a tip seemed completely foreign to them and some got quite emotional… in a good way. Made my day and made me wonder. Maybe all this electronic predetermined tipping as a matter of course has taken the respect and personal satisfaction out of both sides of the transaction. Wouldn’t be the first time that technology has diminished the human experience.

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Thinking of putting off that repaint project? Think again

Definition of false economy: An apparent financial saving that in fact leads to greater expenditure.

Structural integrity

By Lynda Kypriadakis, Diverse FMX

Leaks are like cancer to a building. If I had a dollar for every body corporate that decided to delay their repaint project and then got water ingress issues down the track, I would be well-andtruly retired by now!

One of the potential downsides of having a committee of volunteers making decisions about capital works on the common property is a tendency to avoid the expenditure associated with engaging independent experts or specialist consultants to assist with feasibility studies at the planning stage of capital works projects. It’s understandable that committees, as the elected representatives of the body corporate, seek to avoid unnecessary outlays and preserve funds, but sometimes it becomes false economy.

Preserving the structural integrity of the building is the fundamental basic requirement of the body corporate, and regardless of what type of strata complex you reside in, water leaks are the number one cause of structural damage and repair works outlays (Ref: - 2019 university research into defects An examination of building defects in residential multiowned properties by Dr. Nicole Johnston of Deakin University).

No matter what class of building you are (eg, Class 1a townhouses or Class 2 apartments) water leaks are an issue to be managed as the top priority of your building works planning list.

Failure to maintain the waterproofing systems for the building results in water ingress, damage to substrate, mould, loss of amenity, loss of functionality, etc.

What causes water leaks?

Any form of water leaking into habitable or structural areas of a building is a defect. Buildings are required to be watertight under the Building Code of Australia, so any type of leak is a defect that must be dealt with immediately. The body corporate legislation requires the body corporate to maintain the structural integrity of the common property and

any body corporate insurer will most certainly require the body corporate to attend to leaks in a timely fashion in order to maintain insurance cover.

Most water leak causes are obvious, such as:

• roof leaks during major storms or severe weather events (that show up immediately);

• window and door leaks that can be observed when occurring;

• obvious plumbing leaks that are not concealed from view, such as a dripping drain pipe in the vanity cupboard; and

• patios or balconies flooding into habitable areas.

But other leaks are more subtle and harder to detect, until it’s too late:

• slow roof leaks that happen over time and tend to rot out roof framing material before you realise, they are a problem;

• slow plumbing leaks in concealed cavities; and

• slow water leaks from minor non-structural cracks in paintwork or waterproof membranes that go without maintenance.

When water leaks are not a problem

If you are a Class 2 apartment building with a basement carpark area, the carpark is most likely classified under the Building Code of Australia as Class 7a “wet basement” construction, which means it isn’t meant to be watertight. Imagine the cost associated with waterproofing a basement carpark during construction!

This is why the building codes and standards allow water ingress (to a reasonable level) to enter wet basements. You will note that materials used in wet basement construction are durable and deliberately used to cope with water ingress, so leaks in your basement carpark area can be expected. The basement is built to withstand water ingress.

The only time water leaks into the carpark basement are a defect that needs repairing by the body corporate is when:

• leaks are causing damage to cars parked in designated car parks, eg., efflorescence dripping onto paintwork;

• leaks are causing damage to approved storage areas that are included on the approved plans for the building - not retrospective storage areas installed after construction; and

• leaks are causing concrete cancer or spalling to occur. These types of water leaks (even in a wet basement area) will need to be addressed urgently.

Side effects of water leaks

While the obvious internal damage to plasterboard linings, carpet, soft furnishings, and timber trims inside units is clearly visible, here are some nasty side effects that may not be visually obvious. There may be these types of issues occurring in concealed areas, such as roof spaces, wall cavities and so on:

• rotting or rusting framework;

• mould;

• termite infestation; and

• degradation of electrical wiring and other metal elements concealed from view.

Water that gets into the substrate can also cause delamination of paintwork and waterproof membranes that you are unlikely to notice until it’s too late.

When to engage an independent consultant

As a general rule of thumb, the best time to consult with a specialist is at the planning stage of capital (remedial or upgrade) works, but proactive bodies corporate team up with

a preferred consultant to assist on an annual basis with project planning and structural condition assessment. If your building already has water leaks and damage the best next step is to engage a specialist to undertake water tests to determine the exact cause of the water leak before getting quotes to fix.

Any quote provided to rectify water leaks should also come with an offer to conduct water testing upon completion of the repairs ie., to test the repair is sound, and a warranty for the repair works. If you can’t get a warranty on the repairs in writing at quoting stage, then it is recommended that you either get another contractor to quote or engage a specialist project manager to ensure the water testing is being done as part of the scoping process and warranties are provided upon conclusion of the works.

Warranties available

All works done to fix or prevent water leaks are warrantable under the contractor’s licence. In Queensland, any QBCC licensee is required to provide a mandatory six-and-a-half-year warranty on any structural work done which includes repairs to water leaks, roof plumbing works, waterproofing works, and so on. If your contractor is not offering a warranty on their work this is a major red flag.

Prevention is better than cure!

Best leak prevention advice to bodies corporate is:

• don’t put off the full repaint works, aim for full external repaint at least once every 10 years and obtain a 10year warranty from both the paint supplier and the paint applicator… in writing;

• have a full roof inspection and maintenance check done annually and keep records to provide to the body corporate insurer;

• have a full waterproof membrane inspection and maintenance check done annually, and keep records to provide to the body corporate insurer;

• (class 2 apartments) Have a full building wash down at least two-yearly with rope access technicians to check window seals while they are there;

• deal with water leaks immediately;

• conduct water tests before preparing remedial scopes of works;

• require water tests

upon completion of leak repairs; and

• require signed warranty certificates upon completion of leak repairs.

Damian Quinn Isabella Mansell

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How Google Hotels is delivering you more profit

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Where do the majority of travellers begin when planning their next trip?

Google, of course! This search engine has always been a significant element in most hotel owners’ marketing efforts. With the use of search engine optimisation and other Google tools to keep your property at the top of the search results, the power of Google Hotels is something the savvy property owner really can’t ignore. It really is changing the landscape of the traditional OTA (online travel agency) and giving hotel owners more control over the visibility of their property. Google Hotels (previously known as Google Hotel Ads and Google Hotel Finder) is now one of the most effective “Risk-Free” marketing channels for hotels and other property owners. So how can you best use it to grow your visibility and maximise your profit?

Read on and we’ll tell you everything you need to know.

What is Google Hotels?

Google Hotels is a metasearch engine that collates hotels and holiday rentals search results from a variety of sources. When a traveller is looking for accommodation, either in Google search or maps, an aggregated list is displayed showing the room rates listed on the various OTAs. It operates a PPC (Pay Per Click) model, resulting in Google paid listings appearing at the top of the

search, with all other generic listings appearing underneath. OTA’s can display your rates, availability and room types in these paid search results, with the option to compare prices and book directly with them. You also have the option of sending a customer directly to your website to book without needing to involve an OTA at all. However, your website direct booking link will only be displayed in these paid ad results if you work with a provider that has an approved direct connection to Google Hotels. This feature also displays a prominent reviews tab, which enables travellers to easily view key elements that inform their booking decisions.

How much does it cost?

Google Hotels works on a bidding model and there are a number of factors that will influence how much you pay. These include the competitiveness of the market at any given moment. For example, capital city hotels competing with neighbouring brands for visibility on a busy weeknight would have a very

different bid strategy from boutique hotels in smaller locations. This is where an experienced partner with an approved direct connection comes in handy. There are a number of options when it comes to bidding including ‘commissions per stay’, and ‘commissions per conversion’ but most hoteliers opt to pay on a cost-per-click basis. This means they incur a fee each time someone clicks on their Google Hotels link regardless of whether the guest books or not.

The Risk-Free Cost Per Stay model differs in that a cost is only incurred if a guest actually completes their stay. This is known as “Risk-Free” advertising and definitely provides a unique opportunity for accommodation businesses lucky enough to have a partner that can offer this service.

What are the benefits?

Google Hotels can help property owners increase profitability by capturing potential guests at the beginning of their search. Being listed on the

platform ensures maximum visibility and has been proven to generate and convert more direct bookings. This in turn enables the accommodation provider to “own” the guest throughout their journey. With direct bookings, property owners can develop strong relationships with guests from the moment they first make contact; enabling upsell opportunities prior to arrival, removing any “middleman” delay and potential fees.

How to get started?

Google has partnered with a select network of global integration partners to provide direct connectivity to Google Hotels, which enables them to list your property directly on this powerful platform. Property owners can benefit from this by becoming an early adopter to maximise their profitability using this unique “Risk-Free” opportunity.

Visit https://travel.google/ partners/hotels/find-apartner/ and select both “Connectivity” & “Ads” to find a partner for your business.

Sylvia Johnston, Senior Executive, HiRUM Software Solutions

Happy International Women’s Day: Toot Toot!

to promoting the advantages of onsite management, we suck!

By Kelley Rigby, Managing Director, Lett s Rebuild

The women that truly want to see us succeed and us them, the ones that will lift you up to let your light shine bright, even if it is brighter than theirs, no ego, no judgement just application for one another and the lives we are creating. To those women and all the others in between I would like to wish you a very Happy International Women’s Day for 2023. Shall we continue to be each other’s cheerleaders, support network and shoulders when needed… I just love you!

Okay, okay, time to get into the nitt y gritt y of this month’s article. A saying that is embedded in me from my real estate days is, “you can’t sell a secret”. I feel this saying is extremely fi tt ing for where our industry is sitt ing right now. It is rare that I am critical of our community but when it comes

As a whole, I do believe we are gett ing at better at communicating the value of a resident manager and learning to toot our own horns, but we have a long way to go. Talking with many of you on this subject the response is normally, “Kelley we just get in and do the job, we don’t need the accolades” which is so humbling. To be honest it’s such a beautiful sentiment but it’s time to start tooting those horns and loudly. Now without gett ing into the politics of it all, some others out there are certainly not being secretive about their feelings towards our industry and their interpretation of what we do. I cannot help but think if we did a better job of promoting ourselves to our owners, telling them about all the extras, the above and beyond, would they still have the same opinion of us?

The positive to all of this, is that it has certainly given our industry a litt le bit of a nudge to ensure we start promoting our business model and its worth. How to you do that you ask?

If you don’t already, start creating a monthly or quarterly newsletter, in this newsletter I want you to make sure there is a section dedicated to the advantages of you. Even better, do it as a video so they get to see you and the passion you have for their community. Reach out to the owners in your scheme and simply ask them if they would like you to send them some information about living in a managed community and what your role entails. This way you are able to manage

expectations and then in turn exceed them. Promote yourself and the value you bring as often as you can, this will ensure that if your position is ever questioned, the community you have educated and worked with,

will know there is no one better than you to run their scheme. And remember, it takes 43 muscles to frown and 17 to smile according to “Mr Google”. Life is too short, so let’s smile more.

“I just love women” these four words were recently a topic of discussion with a friend of mine. Now we are both happily married and intend to stay that way for the rest of our lives, but we honestly simply love our girl gang.

 Structuring  Income Veri cation  Accounting/Taxation  Superannuation  Audit

It’s time to start tooting those horns and loudly

Remote resorts can lose big bucks for back-of-house neglect

By Simmonds & Bristow

Water is an essential component of life, and for the 100 plus remote resorts in Australia and the South Pacific, providing fresh water and treating wastewater is a unique challenge.

Australia boasts some of the most beautiful off-grid locations in the world. Hidden resort gems, located in some of these areas, far away from the hustle and bustle of city life, offer guests an unparalleled experience combining the beauty and wonder of nature with relaxation in comfortable and sometimes luxurious accommodations with fine dining.

For these hospitality businesses, the focus is always to operate and maintain a great holiday experience front-of-house. Even highly experienced hospitality managers can be presented with back-of-house challenges they might not have encountered in an urban environment.

It's something the typical hospitality business manager isn't trained to deal with.

Without years of experience in managing water and wastewater operations as part of an accommodation complex, they may not understand how to comply with local drinking water and effluent water regulation requirements.

Unfortunately for these establishments, this vulnerability is known to the government departments responsible for environmental licencing in each state. They can be a target for compliance investigations and actions.

If your resort obtained an environmental authority or licence to operate water and wastewater facilities as part of its development application, and its recommendations or terms aren’t embedded in your operations and maintenance program, to

be actioned or followed through on a regular basis, you have reason to be concerned.

It is known that in the aftermath of COVID-19 many resorts faced financial difficulties, or at least had to introduce some cost management measures to survive. Back-of-house operations can be seen as something that is allowed to drift, and even run down. This is particularly true for resorts using irrigation to land as a dispersal method for treated wastewater.

These systems are quite common for remote resorts as they are a sustainable solution to treating wastewater. They seem like a “set and forget” solution, right? Not so. Getting the balance of nutrients right for the specific soil type, drainage rate, and types of vegetation is a highly tuned operation requiring design by experienced environmental engineers and scientists, and oversight by experienced water management personnel, to maintain balance.

Once an irrigation plan is in place, taking into account flow rates, nutrient content, the spread of nutrients over an area, the rate of absorption by soil and plants and the ongoing integrity of system hardware (pipes, pumps etc), is highly dependent on regular checks and analysis because things can change over time.

Pipes can corrode and nozzles can block, leading to overwatering in some areas and underwatering in others. Rain, or lack of it, can alter the concentration of nutrients.

Non-compliance can not only have a detrimental impact on the environment, it can damage the reputation of a business that is promoting a pristine natural setting as core to its attraction.

Significant costs to mount a defence, and potentially, significant penalties, are just a part of the inconvenience to your business.

As a resort manager, it is crucial to be aware of the

potential consequences of non-compliance with environmental regulations.

What happens if a business is hit with compliance or enforcement action from a state government environmental regulatory authority?

1. In the first instance, the business will receive a lot of paperwork that they have to read, understand, and respond appropriately to; a time-consuming task highly likely to distract from dayto-day business. Typically, they will need to collect a lot of data and make a case to help the department understand why they are not culpable or should not bear the maximum penalty. A lawyer will most likely be required to help them write this up. This response document can run to multiple (20 or so) pages, incurring legal fees easily in excess of $20,000, more likely circa $50 to $100,000.

Image courtesy of Simmons & Bristow, Credit: istockphoto.com

Unless the response to regulator allegations document is fulsome, (always factual and truthful), and shows clearly that the regulatory authority has incorrect information in making an allegation in its first notice, it will then issue an allegation that they intend to prosecute, requiring the preparation of a defence. Experts will need to be sourced to demonstrate why you should not be penalised heavily, or at all, or that the situation is not as bad as the regulatory authority has estimated, or that it is easily rectified.

3. After all of this, the authority in question might take the view that they can see you are trying, but they want you to try harder, so they will issue an Environmental Protection Order which outlines the problem you must fix, within a specified timeframe. Note: They will not tell you how to fix it. They will direct you to secure the services of an independent consultant (a consultant satisfactory to them), to evaluate the issue and report back. The qualified person must inspect the problem and write a report outlining what needs to be done. The consultants' report may be anywhere between $10 to $20K, and the cost of implementation can run from $50K to many hundreds of thousands of dollars.

4. The (mandatory) response to a full prosecution can cost $500K, easily. Again, you will need to source

expert witnesses and the matter will be protracted in court over many sessions whilst every piece of evidence is thoroughly investigated. During this process the distraction and stress of management and staff involved in the defence effort can be extreme, to the point of risking the closure of businesses.

Case study: Managing compliance the right way

A well-known country resort situated just steps away from World Heritagelisted forests, glistening waterfalls and breathtaking bushwalks was subject to a compliance finding by a state government environmental regulatory authority.

The resort owns and operates its own water and wastewater treatment facilities and is responsible for providing both safe and reliable drinking water to meet health regulations and Australian Drinking Water Guidelines, and treating wastewater (treated sewage) to a standard that permits disposal of treated water sustainably by irrigation.

As part of those obligations, they needed to manage the risk relating to drinking water safety, water supply security and continuity, as well as compliance with strict environmental licence conditions for wastewater treatment and disposal.

The resort is licensed under the Environmental Protection Act to operate and maintain their wastewater treatment plant. The resort’s authority to release treated wastewater for irrigation was limited to a

discharge of a specific cubic meterage per day at particular water quality standards as a condition under their license.

It was found that the resort’s wastewater treatment facility (undetected by experienced resort managers) had released treated wastewater during rain events, due to the aging of some of the network and treatment infrastructure. Despite a willingness to contract someone to undertake operations and maintenance work, there was a lack of availability of suitably trained and experienced operators in their remote location. This made it hard for them to stay on top of wastewater quality compliance, including full preparation to deal with high flows, due to heavy rain events.

Like many hospitality and tourism businesses, the resort management's focus simply wasn’t on what was going on in the wastewater treatment plant, storage ponds and back paddock. It wasn’t until they were compelled to seek specialist help that they realised they were non-compliant, and the environmental regulator was asking questions.

After this event they decided a preventative approach would be best, contracting a department-approved water expert to provide light touch ongoing support, budgeted as part of their ongoing operations.

This approach has seen confidence restored in their operation by the regulatory authority, getting them off the radar for further scrutiny. Additionally, they no longer had to worry about sourcing these skills locally. If they continue with

this approach, they will avoid the costs and disruptions associated with non-compliance, ongoing, and, if a mishap occurs, they will be able to rectify quickly before any major impacts occur, and they will be able to demonstrate a proactive approach.

The important thing to note is, it is never too late to get on the front foot, no matter how much ‘trouble’ you think you might get into for letting things go for too long.

Compliance can be costly, but it is nowhere near as costly as non-compliance, if it is discovered that you allowed a situation not only to develop but worsen. Regulatory authorities can be punitive, but they are committed to working with business managers to ensure that compliance is achievable and sustainable, and are proven to be very collaborative towards businesses that make an effort to get in front of it.

Resources

For Queenslanders, the DES has prepared a guide specifically for resorts and accommodation parks to help them manage their legislative compliance requirements: https://environment.des. qld.gov.au/__data/assets/ pdf_file/0024/87333/sewagetreatment-plants-factsheet.pdf

All State Government Environmental regulators will have similar tips, tools and resources.

Simmonds & Bristow have prepared a quick 8 question Quiz to test your general awareness of compliance obligations: https://www.simmondsbristow. com.au/ea-monitoring-quiz/

Australia’s inbound visitor numbers disappointing

As the industry marks 12 months of open borders, Australian tourism businesses continue to feel the drag of the COVID shut-down which brought $45 billion of tourism exports to a halt. While international travellers have quickly regained their pre-COVID appetite for travel in the northern hemisphere, Australia’s inbound visitor numbers continue to rise slowly and remain a long way off the peak.

ATEC Managing Director Peter Shelley said: “While international visitor numbers remain down, so does business revenue and therefore government revenue and ultimately there is less impetus for investment and limited industry growth.

“With inbound tourism capable of making such a significant contribution to the bottom line of both business and government coffers, getting us back to market quickly has the added bonus of helping along the Australian economy.”

Australian Bureau of Statistics arrival numbers for December 2022 show Australia is still 40 percent down compared to the number of international visitors

who arrived in December 2019. A disappointed Mr Shelley said: “Last year the Federal Labor government promised a $10 million fund to support Australian tourism exporters to drive back into the market but today the fund remains undelivered with no word on when this industry will see the support materialise.

“There is no doubt we were late in returning to the international travel marketplace but we can clearly see our recovery is taking much longer than for our competitors in the northern hemisphere and even Africa.

“With Europe already at 87 percent of its pre-COVID capacity, Australia has a long way to go, which will be made doubly challenging for our industry given we are a long-haul and more complex destination, making it more difficult for us to convert international holiday makers.”

Given the high level of competitiveness for the global tourism dollar, Mr Shelley said Australia’s sluggish return fully highlights the need for stronger Government investment in re-establishing our brand on the world stage.

“COVID brought Australia’s tourism exports to a halt and took with it more than 50 years of trusted trade relationships and engagement. Much of these are small to medium size businesses which have limited resources to restart, however with a little support can bring Australia back to full capacity much sooner than 2025,” he said.

“Flights and staffing are key challenges for inbound tourism, but we still have a great reputation globally and international visitors are keen on Australia. What we need to find is the key to unlock this opportunity.”

ATEC Managing Director, Peter Shelley

Business events continue to ride a wave of success on the Gold Coast

Destination Gold Coast is diving head-first into the new year, on the back of the success of 2022 with a total of 146 events in the city’s business events pipeline, worth $200 million between now and 2030.

Bids secured include two confirmed international events, the 17th World Federation of Chiropractic (WFC) Biennial Congress in 2023 and the 74th Annual International Communication Association (ICA) Conference in 2024, which were secured with the support of Tourism Australia’s

Bid Fund Program and Tourism Events Queensland’s Business Events Acquisition and Leveraging Fund.

These two events combined are expected to att ract 4,000 delegates from 80 countries and will inject more than $11 million into the Gold Coast economy.

Destination Gold Coast’s Head of Business Events

Selina Sinclair said demand for hosting business events on the Gold Coast has increased significantly over the past 12 months and is building by the day, as the city’s reputation for innovation, creativity and entrepreneurship continues to expand. “In addition to our incredible climate, coastal

location and sundrenched lifestyle, a significant investment in infrastructure has been made over the past two years which is seeing the Gold Coast’s profile as a business events destination continue to grow,” Ms Sinclair said.

“The Gold Coast is att racting scientists, engineers, inventors, entrepreneurs, and creatives of every kind. With companies pouring capital into investment, ideas, entrepreneurship and innovation are flourishing across a wide range of industries.

“I would like to acknowledge and thank our partners Tourism Australia and Tourism and Events Queensland who aided our winning bids.”

The 74th Annual ICA Conference was initially secured in 2020 but the event went virtual due to the global pandemic. Destination Gold Coast re-bid for the conference to be hosted from June 19 to 24, 2024, and excitingly the Gold Coast was selected to host 3,000 delegates from over 80 countries including the United States, Germany and Japan.

Marking their first time to Australia in 18 years and the

very first time being hosted on the Gold Coast, the 17th WFC Biennial Congress will att ract 1,000 delegates over four days from October 11 to 14, 2023 who will convene at the Gold Coast Convention and Exhibition Centre Exhibition and Convention Centre, while staying at The Star Gold Coast.

Tourism Australia Executive General Manager Commercial and Business Events, Robin Mack, said the Business Events Bid Fund Program played an important role in securing these two international events which will deliver significant benefi ts to Australia’s visitor economy. He said: “We congratulate Destination Gold Coast on securing these two important events, which will generate global attention for Australia’s world-class business events off ering.”

Destination Gold Coast also partnered with the Gold Coast Convention and Exhibition Centre and successfully won international bid for Society for Eye Research (ISER) 2023 which will add another $3 million to the City’s economy.

© Adobe Stock, stock.adobe.com

What about Women In?

The first Brisbane luncheon of the year was fabulous, with the ever so personable Sarah Price and the lovely ladies from Altogether Group hosting the lunch.

Everyone enjoyed engaging in interesting conversations and made great connections. The afternoon was filled with energy, knowledge, divine food, great ambience, and the drinks flowed.

The Resort Rundown

Exciting news for the MLR sector!

Sam Steel, cofounder of Resly and Marisa Millane the QLD business development manager at Freedom Internet have created an exciting new industry podcast.

The Resort Rundown Podcast is about everything management rights. Hosts Sam & Marisa said: “Join us to

explore the exciting world of management rights and provide an unfiltered take on this industry. With a different guest each episode, enjoy 45 minutes of honest conversations about business, brands, and the people behind them.” Episode one dropped on March 1, 2023, featuring guest Stephen West from Interline Travel. Episode two invites guest Chris de Closey to talk about his experience of owning management rights and Switch Hotel Solutions.

The Management Rights Conference & Workshop, Cairns

The Management Rights Conference & Workshop, was attended by 100 industry colleagues on Wednesday February 8, at Riley Crystalbrook. The event included a full day of presentations and panel discussions, highlighting the latest trends and insights in the tourism and management rights industry.

The day began with an insightful presentation from Mark Olsen, CEO of Tourism Tropical North Queensland, who

shared his insights on the current state of the tourism industry and its prospects. Mr. Olsen’s presentation set the tone for the day and was followed by several speakers from a range of industries.

Among the featured speakers were Room Price Genie, Switch Hotel Solutions, Caatz Management Rights Accountants and representatives from booking.com. Additionally, several accountants, auditors, and lawyers from the tropical north shared their insights on various topics related to the industry.

The conference was an opportunity for

attendees to network, share knowledge, and gain insights into the latest industry trends. The event was well received by attendees, who praised the quality of the presentations and the diverse range of speakers.

“We are thrilled with the success of the Cairns Conference,” said organiser Sam Steel from Resly.

“The event was an excellent opportunity for industry colleagues to connect, learn, and share their insights on the latest trends and challenges facing the tourism industry. We can’t wait to bring the event to South East Queensland later this year.”

Sanctuary Cove: The home of superyachts

Southeast Queensland’s luxury destination, Sanctuary Cove, has become the home of superyachts with the launch of its new $3.5M Pier C development, adding a further 31 berths to the marina and taking the destination’s superyacht berthing capabilities to 39 in total.

The Pier C development by Mulpha is the next stage in Sanctuary Cove’s 2023 strategy to address the growing demand for permanent and transient superyacht berths in the Sunshine State. It comes after the destination completed its $10M marina expansion in June 2021, which saw the addition of 61 new berths and the first undercover berths in the southern hemisphere.

General Manager of Mulpha Sanctuary Cove Marina, Steve Sammes, said: “The demand for more large-scale berthing opportunities in the South-East is increasing and there is an invaluable economic opportunity to invest in more superyacht driven piers on our coastline. Sanctuary Cove is superyacht ready, now.”

Sanctuary Cove Marina was one of seven marinas that received its Superyacht Ready accreditation within days of the Marina Industries Association’s Gold Anchor and Superyacht Ready accreditations in December 2022, successfully meeting the suitability criteria of the marina’s infrastructure to accommodate superyachts, accessibility for superyachts, security measures and service availability.

With the greater plan to design and drive Sanctuary Cove as a superyacht destination, a substantial uptake in marina visitors and an uptake on tourism in the Northern Gold Coast is expected. The development also follows the opening of a new fleet of restaurants at the Sanctuary Cove precinct to match the growing demand of local and international visitors alike, including Pablito’s Mexican Cuisine and Tequilaria, Rise Bakery, Destino Wine Bar, and more.

2023 ARAMA INDUSTRY EVENTS CALENDAR

For

Sky Deck Queen’s Wharf Brisbane

link will be more complex than the first with three sections weighing 220-tonnes coming together on the podium before being safely jacked into place directly above William Street,” Mr Crooks said.

“It really is a unique engineering feat with the third, final and largest sky deck bridge link expected to be installed in the coming months completing the distinctive arc shape.”

Queen’s Wharf update

Stunning views from Queensland’s soon-to-be most photographed hot spot, the iconic Sky Deck at Queen’s Wharf Brisbane, have been revealed for the first time.

Poised 100 metres above the Brisbane River, the crescentshaped Sky Deck will offer a vista that stretches from the CBD to Moreton Bay and Mt Coot-tha and is set to become a major tourism drawcard for the river city.

The Star Entertainment Group Managing Director and CEO Robbie Cooke said, “The Sky Deck will be the centrepiece for the game-changing $3.6 billion riverside development.

“It will be a must-visit Queensland tourism destination attracting millions of international and interstate visitors in the run up to the 2032 Games. Importantly, it will also be a source of immense pride for locals.

“The Sky Deck will be a first for Brisbane. It will be open day and night, 365 days a year for up to 1,500 people as somewhere to celebrate a special event, to bring visiting friends and family or even as a meeting place for a drink after work.

“It’s a 250m long open-air rooftop with a signature restaurant, all day casual dining and a hero bar as well as a sky-high events space and a glass floor viewing platform at the midway mark to further enhance the incredible views.

“It will come to rival Australia’s most photographed iconic locations, such as the Sydney Opera House or Melbourne’s laneways, offering spectacular backdrops of Brisbane for snaps and social media posts, day and night.”

The first look at Sky Deck pre-empts another major construction milestone for the city’s defining development with the second bridge of the Sky Deck soon to be lifted into place to link The Star Grand Hotel to the Residential Tower.

Destination Brisbane Consortium Project Director Simon Crooks said the Sky Deck progress was proof of Queensland’s ability to set Australian construction benchmarks. “The upcoming second bridge

Brisbane CBD is being transformed with four new luxury hotels, more than 50 new bars and restaurants, around 1,500 residential apartments and more than 12 football fields of public space including stunning artworks and restored heritage buildings.

The $3.6 billion development is being delivered by Destination Brisbane Consortium – a joint venture led by The Star Entertainment Group alongside its Hong Kong-based partners, Chow Tai Fook Enterprises and Far East Consortium.

It is the first development in Brisbane to be awarded the coveted 6-Star Green Star Communities rating in recognition of its social, environmental, and economic sustainability designs that will benefit locals and future visitors to this worldclass integrated resort development. 1.4 million additional tourists are expected to visit Brisbane each year when the development commences a staged opening in late 2023.

The Star Entertainment Group Managing Director and CEO Robbie Cooke said: “The Star is proud of what it is delivering for Brisbane and Queensland. “We are creating thousands of jobs, with close to 2000 construction workers on the site at peak and thousands through supply chains.

“We’ve also already had hundreds of people respond to our first recruitment call out as we look to build upon our current cohort of 1400 team members that will transition from Treasury Brisbane to our new home.

“Like the Sky Deck itself, excitement about Queen’s Wharf is soaring.”

To

All

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

MANAGEMENT RIGHTS

MOTELS & OTHER

JLL Hotels & Hospitality launch the sale of the Hamilton Motor Inn

sector recording strong trading performance, increased turnover and bottom-line profits.

Occupancy, ADR and RevPAR showed a large uplift throughout 2022 with the wider Brisbane hotel market achieving Average Daily Rate (ADR) premiums on pre-pandemic levels by more than 20% and at a faster pace than Sydney and Melbourne.

The humble motel in Australia is currently enjoying a huge comeback with considered and contemporary enhancements popular with travelers looking for something other than standard “cut and paste” accommodation.

Embracing their “retro” past and capitalising on enduring aesthetics is often the key to delivering the environment and experience that travellers are looking for and the Hamilton Motor Inn provides the blank canvas to do exactly that.

“The mid-market sector has seen considerable transactional activity over the past few years with investors and operators looking for properties with the ability to enhance their improvements and pay homage to their past”

Mr Closter commented.

Instagrammable accommodation icons including Isla, Motel Molly, Leoa, The MYSA Motel & Berry View Hotel all demonstrate that if you can nail the repositioning of these assets then ADR & occupancy, and ultimately strong profits, will follow. Capturing the attention of social media and effectively utilising this powerful tool can create a wave of demand in the modern motel era.

“The profile of the building is of a classic vintage motel. If an investor/operator can tap into the classic nostalgia of this retro motel they could create a landmark metropolitan motel unlike any other in Brisbane or Australia” Mr

Closter said. The Hamilton Motor Inn comprises 22 guest rooms spanning five levels featuring a mix of twin and family rooms as well as a two-bedroom caretakers’ residence. The property also offers a ground floor restaurant/ multi-functional conference facility with a substantial outdoor entertaining area that could be used for re-positioning and asset enhancing opportunities in line with the recent ‘Motel Makeover’ success stories.

Brisbane’s midscale hotel and motel market has enjoyed steady recovery in trading performance over the trailing 12 months to January 2023 with assets in this

“In addition to the unique building fundamentals, the property is situated on the doorstep of the 2032 Brisbane Olympic Athletes Village and is poised to capitalise on Brisbane’s “Golden Decade” that is currently unfolding” said Mr Jones.

The property is currently enjoying an occupancy of circa 95% and is being operated by first time owners to the accommodation industry which provides significant scope for operational improvement without undertaking any building refurbishment or enhancement. Expressions of interest are now being invited for the Hamilton Motor Inn in what is expected to be a highly competitive sale process. For more information contact Gareth Closter, 0423 182 766 or gareth.closter@ap.jll.com

Introducing Meagan Monk, MR Sales, Sunshine Coast

MR Sales would like to welcome Meagan Monk to our Sunshine Coast management rights team.

Meagan has always held a passion for the tourism industry, completing a Bachelor of Management and majoring in tourism and marketing.

She has her full QLD Real Estate licence and currently runs a 44-unit management rights complex on the Sunshine Coast. She is accomplished in knowing what it’s like to run a management rights business and more importantly what it takes to buy and sell a management rights business.

Previously, Meagan has been a grant writer and project manager, obtaining State Government grant funds for numerous

community projects. Her ability to negotiate with various stakeholders to reach agreed outcomes is a great strength.

She has also been instrumental in the development of leisure plans and masterplans and overseen the management committees and large recreation facilities and aquatic centres, as well as the coordination of a visitors services and bookings team.

Meagan and her husband were also highly successful in running their own retail business for ten years.

She prides herself on ensuring clear communication, effective negotiations, and hard work to bring the best possible outcome in the sale of properties.

MR Sales wishes Meagan every success.

The iconic Hamilton Motor Inn is being offered for sale by JLL Hotels & Hospitality’s Senior Vice President Gareth Closter & Tim Jones, Director, Head of Metropolitan Sales & Investments. Presenting an outstanding opportunity to join the ‘Motel Makeover’ trend that is sweeping the country.

Hamilton Motor Inn

MR Sales

Main Beach QLD

ID: 8268

Exclusive: Stunning Gold Coast Gem

Price: $2,738,000

Nett: $223,000

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

Miami QLD

ID: 8260

Exclusive: Gold Coast Holiday Letting

Price: $3,300,000

Nett: $453,628

Contact Gerard Dixon 0433 617 515 gerarddixon@mrsales.com.au

Peregian Beach QLD

ID: 9081

Exclusive: Prime Holiday Business

Price: $1,483,000

Nett: $172,000

Contact Meagan Monk 0459 693 160 meagan@mrsales.com.au

Co s Harbour NSW

ID: 7821

Exclusive: Beachside Holiday Complex

Price: $1,200,000

Nett: Contact Agent

Contact Tony Johnson 0433 335 679 tonyjohnson@mrsales.com.au

Management Rights

Market

Wide Bay and Capricorn Coast ride wave of success

By Grantlee Kieza, Industry Reporter

When Hollywood hero

Chris Hemsworth

rode the waves at Surf Lakes Yeppoon last year, he made Queensland’s Capricorn Coast world news.

It seems Queenslanders, too, have been discovering this paradise in their own backyard.

While some say the COVID pandemic devastated the world tourism market, it actually increased visitors to places such as the Capricorn Coast and the neighbouring Wide Bay-Burnett region as border closures forced Queenslanders to holiday at home.

The Surf Lakes site has been operating as a prototype to test and develop a unique wave making technology since 2018. Hemsworth, Marvel Comic’s real-life Thor, carved up the best breaks in surf park innovation when he visited the site last year. After his visit Hemsworth said: “My eight-year-old’s first ever tube – something he and I are going to remember forever.”

The wave pool research and development site will finally open to the public in 2024, almost certainly guaranteeing a whole new wave of visitors to the area.

Mary Carroll, the CEO of Capricorn Enterprise, the region’s peak tourism organisation, said it would prove a boon for an area already experiencing great visitor numbers.

Ms Carroll told Resort News : “Accommodation and tour operators on the Capricorn Coast reported a very strong Christmas and New Year holiday period with popular att ractions such as Capricorn Caves, Koorana Crocodile Farm and Cooberrie Park Wildlife Sanctuary reporting very busy trade.

“Koorana Crocodile Farm had to cap their bookings at 200 and ran two tours per day.”

Ms Carroll said while most visitors to this destination were domestic (about 90 percent), both Koorana and Cooberrie Park Wildlife Sanctuary reported that self-drive international visitors from Europe, India and Asia were among their guests. This is an encouraging trend.

“Cooberrie Park Wildlife Sanctuary had higher visitation than previous years, reporting that their international visitation has returned to pre-COVID numbers during this time,” she said.

“Great Keppel Island businesses enjoyed an exceptionally busy time over the festive holiday season with over 1000 visitors to the island every

day, with Freedom Fast Cats increasing their ferry timetable to accommodate. All other cruising and tour charters, and island accommodations were also booked out over this period which was fantastic.

“Whilst there were a few vacancies in the higher-end accommodation properties on the mainland, most rooms were booked out during the season.”

Adam and Sinead Stokje are the resident managers of luxury beachfront resort Pavillions on 1770. The superb apartment complex is located midway between Agnes Water and Seventeen Seventy, about 90 minutes north of Bundaberg on the Discovery Coast.

“This location here is so picturesque,” Mr Stokje told Resort News, “and while it’s never overcrowded, we get very busy at holiday times because everyone in Australia is now discovering the area and what it has to off er.”

Overlooking the magnificent Keppel Bay, Adam’s parents Andrea and Bill Stokje run the Oshen Holiday Apartments in Yeppoon.

Bill said most of his guests come from the mining areas around Emerald and Moranbah. While it’s not that far for them to travel, it is a dramatic contrast to the places where many of them work.

Beyond hoteliers themselves, the uptick in visitors is being witnessed by industry more broadly. Paul Grant from Mike Phipps Finance said the accommodation industry was “going very strong” on both the Capricorn Coast and the Wide Bay-Burnett areas. The company has helped to finance some motels in Bundaberg recently.

“Bundaberg is kicking massive goals in the motel business at the moment. They’ve got the hospital there that drives a lot of business, and they have a population of around 100,000 people, which makes it a significant city.

“People forget how big Bundaberg and its surrounds are for a regional centre. It has its own economy there and one of the guys we’ve helped with finance is a motel owner who (in his words) says it’s just a licence to print money these days.

“The motel business is super strong there. Bargara (13km east of Bundaberg) is a beautiful coastal area that’s very desirable and it generates a great deal of holiday business, too.”

Mr Grant said a lot of the corporate travellers who come to Bundaberg for business decide to stay at Bargara because it is only a short drive from the city and it is situated in “a beautiful holiday atmosphere”. P42

“They can really enjoy the time when they’re not working,” Mr Grant said. “They can go to the beach after work so that is great for the whole Bundaberg region because we’re seeing accommodation properties filling up, not just on the weekends but during the week as well with business travel.”

The Wide Bay and Capricorn

Coast areas have some of the most stunning coastline in Australia. In January, Rainbow Beach, 70 km northeast of Gympie, was named by Tourism Australia as the third best beach in Australia after Stokes Bay on Kangaroo Island, South Australia, and Boomerang Beach in NSW.

“COVID actually helped tourism in the Wide Bay and Burnett

region because people were forced to stay in Queensland for holidays and they began discovering places such as Bargara, Yeppoon and Seventeen-Seventy. They are doing great business for the same reason that our clients in Hervey Bay have gone really well too,” Mr Grant said.

“The challenge of course will be what happens when travel gets back to normal. Is that area going to stay on its loft y highs, or is it going to drop off ? We can only wait for time to tell.”

It seems, though, that visitors are keen to return to the area. CRE’s Central Queensland broker, Ronnie Slebos, previously owned and operated a management rights business in Brisbane. During a holiday in 2014 he fell in love with the destination and now relishes the opportunity to regularly travel there to inspect the properties that he and CRE off er for sale. He says he can travel up to 7000km in a busy month between listings and inspections.

“I’ve been working with Craig and CRE since 2018 and the best part of the job is the people I meet and the places I visit,” he said.

“The people here are as ‘TrueBlue’ as you’ll ever get. T-shirts and comfortable shorts are fine - help your mates - and yeah, there is nothing wrong with an old Toyota! There is no traffic jams or parking problems, and housing prices are aff ordable.

“But the best thing that Central Queensland off ers is all the opportunities for hard workers to earn hard dollars. Whilst

the remoteness might deter some people, those who invest in the ‘Heart of Australia’ are rewarded with a much higher return on their investment than their city counterparts.

“Accommodation businesses in this region service more than tourists and sales reps. Activities in farming, railways, roadworks, healthcare, and construction provide a constant flow of customers to these operators. And with recent investment in the mining sector, now is a great time to invest in Central Queensland.”

Recent CRE sales include motels in Gladstone, a management rights resort in Bargara, several resorts and motels in the Hervey Bay area, a motel inn in Childers and two outback motels in Longreach. And with the increase of tourism activity in the area, there has also been un uptick in business sales. Alison Sun and Alex McCowan, from Accom Valuers said their business is experiencing renewed vigour in both the Capricorn Coast and Wide Bay-Burnett markets.

“We are definitely seeing more work in valuations for motels and management rights businesses,” Ms Sun said.

“The increased activity is flowing through as accommodation businesses have now recovered from the COVID-19 pandemic and government-imposed restrictions. Now that businesses are gett ing strong trading figures many are now taking the opportunity of going to market after riding out the COVID storm. P44

© Adobe Stock, stock.adobe.com

PRICE REDUCTION!

Resort Management Rights Near Bargara Golf Club

Bargara Blue is a well-located double high-rise resort, a stone’s throw from Kelleys Beach, Bargara Golf Club and a short walk to local cafes and eateries. A great salary for a simple complex that is a highly desirable holiday destination.

The Manager can have a cat or dog, or both. This complex is ideal for a rst-timers who love the beach and a round of golf. The surroundings are beautiful including a golf club, beach-side walking tracks, children’s play areas and a short drive to Mon Repos Turtle Conservation Park, The Bundaberg Rum Distillery and Bundaberg and its well-connected airport and other infrastructure services.

The Manager’s Residence has 3 bedrooms ensuite and spa plus second bathroom and attached large reception of ce area

plus study, all on title. Ground oor overlooking all complex features.

Bargara is a coastal town and suburb in the Bundaberg Region, Central Queensland, Australia. The town lies 384 kilometres north of the state capital Brisbane and just 13 kilometres east of Bundaberg. Bargara is considered to be a satellite suburb of Bundaberg, with only sugar cane elds separating the two centres. Between 1912 and 1948, a railway connected the two centres. At the 2011 census, Bargara had a population of 6,893.

Bundaberg is a city near the south-east coast of Queensland, Australia, situated on the Burnett River. Bundaberg is the business centre for a major sugar cane growing area, and is well known for its namesake export, Bundaberg Rum. The city is an important tourism gateway for inland national parks and the southern end of the Great Barrier Reef and resort islands.

Asking Price: $1,528,000

Pool, Spa, BBQ, Tennis Court, Sauna, Gym, located across the road from the Beach and Golf Club.

Ronnie Slebos 0414 964 333 - ronnie@crebrokers.com

“Places such as Agnes Water were very much undiscovered until COVID came through and forced people to reconsider their holiday options. But the whole Capricorn Coast is achieving records now in both tariff rates and occupancy.

“A few years ago, a lot of those motels and holiday buildings were achieving only 50 to 60 percent occupancy, but it’s certainly increased” Alex advised.

“They’ve benefitted greatly from the drive market from Brisbane and regional Queensland markets as holiday makers searched further for great beachside locations in Queensland. Pre-COVID the drive market usually had a limit of three hours from Brisbane that has now extended to locations such as Agnes Water with longer stays now apparent. Destinations beyond Agnes Water for Brisbane visitors generally incur a plane ride.”

Alison and Alex observed:

“Whilst places like the Sunshine Coast have greatly benefitted from the easy drive

from Brisbane, tariffs have increased significantly. This can have a knock-on effect with holiday makers looking for alternate options and therefore, beautiful destinations within the Capricorn Coast and Wide Bay such as, Agnes Water and the Town of 1770, Bargara and Hervey Bay have benefitted.”

The Wide Bay Burnett Region has superb stretches of idyllic, rustic country landscapes and timeless towns, each with its own unique history. It is the

only area where you can access Fraser Island, another of Wide Bay’s superb attractions. The area is well serviced by large airports in Hervey Bay, Kingaroy, Maryborough and Bundaberg, and by the comfortable Queensland Rail tilt train facility.

Tony Rossiter, a director at Holmans Accounting, has clients in Wide Bay regions such as Bargara, Rainbow Beach, Hervey Bay and beyond.

“These areas benefited from COVID lockdowns in a way that was quite unexpected,” Mr Rossiter said.

“Queensland’s border closures resulted in a substantial number of Queensland residents who would normally travel interstate or overseas for holidays deciding to holiday at home in places where they hadn’t been before.

“One of the outcomes of COVID was that people generally tried to avoid builtup areas, so destinations with sparser populations where holidaymakers were not shoulder-to-shoulder

became more appealing. Wide Bay and the Capricorn Coast definitely benefited from that outcome. Those areas would be achieving record numbers in terms of occupancy which in turn influences the rates.

“They are performing really well in stark contrast to an area such as the Gold Coast. In my experience the Sunshine Coast would be in between those two.”

Mr Rossiter said Sunshine Coast accommodation business did not fair too badly during COVID, but did not enjoy the success of regions further north. “The difference between pre- and post-COVID for the Sunshine Coast was not as dramatic as it was for Wide Bay and the Capricorn Coast,” he said.

“The Gold Coast struggled through COVID because it relied heavily on international and interstate visitors which evaporated through the worst of COVID. Definitely by this last Christmas they are well and truly back in business and it’s pretty much business as usual, albeit there’s still a bit of a lag on international arrivals. They will build up over time.”

Mr Rossiter said it might not be appropriate to use the word “boom” for the dramatic increase in visitor numbers to Wide Bay and the Capricorn Coast because that implied there would eventually be a “bust”.

“I don’t know that there ever will be,” Mr Rossiter said. “I’d like to think that there has been a fundamental shift in appeal when it comes to those areas. Maybe they’ll come off the record levels that they were achieving last year but certainly I don’t think they’ll go back to pre-COVID levels.

Image courtesy of TEQ

Image courtesy of TEQ

© Adobe Stock, stock.adobe.com

“I think a lot of people having taken their holidays in places such as Bargara or Agnes Waters will be wanting to go back. They are great locations.”

Trent Pevy, from Pevy Lawyers, agreed Wide Bay and the Capricorn Coast had done well from the invigorated drive market over the COVID period.

“We act for a lot of moteliers and management rights operators in the Bundaberg and Bargara areas in particular,” he said.

“I think those areas became much more popular through COVID because they off ered the option of not having to jump on a plane.

“So many places along those coastlines off er great family holiday options.

“I think the visitor numbers may come back a litt le now that international travel is opening up and people have more choice for holidays, including overseas.”

However, the recent take-off of flights from aff ordable airline Bonza, has made regional Queensland connections from Australian cities much easier and drastically reduced travel times. Just last month Rockhampton Airport welcomed its first-ever commercial Bonza flight from Townsville. About the historic flight, Mayor Tony Williams

said: “We are so thrilled to finally welcome Bonza to sunny Central Queensland, and to be able to directly connect more travellers to the Rockhampton region is a massive win.

“Residents and visitors have been calling out for more flight options. We are very excited to now make it possible for people to travel on a budget to previously un-serviced routes.”

In addition to the direct Townsville to Rockhampton route (three times per week) Rocky is set to welcome direct flights from Cairns, Sunshine Coast and Melbourne.

Recent data from a leading Australian travel management provider for SMEs revealed Australia’s regional tourism industry recovered to 96 percent of its pre-pandemic levels at the end of 2022.

Furthermore, business visitors to the Capricorn and Discovery Coast have increased and there has been rise a in regional business travel. Mackay tops the list of top 10 regional routes in Australia booked by businesses in 2022. Rockhampton and Emerald also made the top 10. The population in regional Australia has increased rapidly post COVID and is predicted to continue growing. Tom Walley, the Australian-based Global Managing Director at

Corporate Traveller revealed that “of all the states and territories, Queensland had the highest population growth rate in the year to June 2022, at two percent”. This is higher than Australia’s average growth of 1.1 percent and interstate migration was the major contributor. The growth has created strong house prices, rents, and business activity. Business owners and remote employees have relocated and some even opened ‘satellite’ offices in regional areas.

Mackay (which topped the Corporate Traveller list of

top regional business flight routes) is among Queensland’s highest growing locations in the state’s property market. Prices increased by 7.4 percent in the year to January 31, 2023. Mr Walley said regions are also home to several industry hubs. “In Mackay, its Resources Centre of Excellence, which off ers regular training programs and spaces for businesses to hire for events, workshops, and meetings, will see $5.7 million injected into its training and business incubation services over the next three years.”

Introducing Ronnie Slebos , CRE Brokers, Central QLD

Ronnie started his real estate career in the early 90’s selling residential land & houses in Brisbane’s western suburbs.

By the mid 2000’s he earned a Masters Degree in Marketing from QUT, and in 2007 bought his own Management Rights Business in inner Brisbane. He stayed in the onsite manager’s role at Teneriffe Hill Apartments for 7 years, managing the entire business on his own.

After he sold the rights he took a break and travelled around Australia by 4WD for two years covering more than 65000 km, and he discovered that accommodation business owners in regional areas (other than Cairns and SE Qld) were poorly serviced by brokers. In 2017, he sold his apartment in Brisbane and shifted his base to 1770/Agnes Water, the coastal heart of Central Queensland.

Ronnie believes that a key ingredient in selling an accommodation business is meeting buyers and sellers in person and

during an average month he will travel up to 7000km in a camper to personally attend listings and inspections.

Past sales include:

Whitsunday Region: Colonial Palms Motor Inn, Whitsunday Paradise Apartments, Gladstone: Camelot Motel, Siesta Villa Motel , Bundaberg/Bargara: Koola Beach Apartments, Childers: Avocado Motor Inn, Hervey Bay Region: Whitecrest Luxury Apartments, Tingeera Apartments, The Bay Hervey Bay, Bay Village, Shelly Beach Motel.

For sale now

Bargara : Bargara Blue (featured), Villa Mar Colina (under offer), Outback Region, Wagonwheel Motel, Maryborough Cara Motel, Baffle Creek Retreat.

If you’re searching for a broker who is more than a keyboard warrior or voice on the phone, contact him to arrange a personal meeting now.

Ronnie Slebos

Image courtesy of Bonza

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in a sublime setting Oshens away

By Grantlee Kieza, Industry Reporter

The beautiful Queensland coastal town of Yeppoon is 38km north-east of Rockhampton and in the relaxed, soothing surrounds it’s a long way further from care.

Yeppoon offers easy access to Great Keppel Island and the Southern Great Barrier Reef, as well as stunning sunsets and calm, warm waters that are suitable for swimming all year round.

Andrea and Bill Stokje took over Oshen Holiday Apartments there in 2019 and have taken the property from 48 percent occupancy to the mid-70s. They oversee 62 apartments overlooking the idylic Keppel Bay.

“We offer wonderful accommodation from studio apartments to a three-bedroom penthouse,” Bill told Resort News, “with the majority being one-bedroom suites.

“Most of the guests come from out west (the mining areas around Emerald and Moranbah) because it’s not that far for them to travel but such a contrast to the places where many of them work. We’re also getting a lot of people from places such as Gladstone and Mackay.

“The scenery here over the bay and the Great Barrier Reef is magnificent, and apart from our studio apartments, all the accommodation here offers uninterrupted views of the ocean.

“We had a little bit of a downturn over COVID but only for a couple of months and at the moment

the bookings are very pleasing and getting stronger all the time.”

Andrea and Bill first became involved in management rights in 2013.

“Before that, we had an independent real estate office at Narangba, north of Brisbane,” Bill said. “It was called Narangba Valley Real Estate.”

They left the real estate business to run the Noosa River Retreat.

“When we sold that, we did relief work for 12 to 18 months,” Bill said, “then we were offered a position managing Noosa’s Culgoa Point Beach Resort.

“We ran that until it was sold, and then I was offered a job as the 2-IC at the Islander Resort in Noosa. My wife Andrea went down to the Gold Coast where some of our friends had an apartment at the Iconic. She was talking to someone on the body corporate there, at an afternoon function and they said they were looking for a manager up here at Oshen.

Bill and Andrea Stokje

“With our business partners, we came up and had a look at the property and we decided to make the move to Yeppoon. We loved everything about it, and we became shareholders in the property with four other partners.”

Yeppoon does not have the bustling crowds or the traffic snarls of Noosa’s Hastings Street, but it does have a striking coastline

that delights the senses - a bright blue ocean, dazzling sunrises and awe-inspiring golden sunsets. For wildlife enthusiasts, there is Cooberrie Wildlife Park, Capricorn Caves and Koorana Croc Farm.

Yeppoon is one of nature’s playgrounds and is situated in a unique part of Australia with something for everyone to enjoy, from the ocean to the bush.

Great Keppel Island makes for a fantastic day trip and there are beautiful picnic spots all along the coastline around the Oshen Apartments.

The property is just a threeminute walk from Yeppoon Main Beach and boasts a heated outdoor swimming pool. All rooms offer a balcony or patio.

While providing a relaxing, carefree holiday, the Oshen’s

apartments are still close enough to all the modern conveniences. There is a stunning foreshore walk to the town centre, which has local supermarkets, a bottle-mart and boutique shops. The apartments are also within a 10-minute drive from Yeppoon Golf Club.

The Yeppoon Lagoon is the jewel in the crown of the Yeppoon foreshore precinct. The 2500 square-metre resort-style lagoon pool is right on the beachfront, and includes a shallow children’s play area, a lap swimming area and an infinity edge with views over the Keppel Islands.

There are barbecues and shaded areas in the surrounding parkland which are great for picnics or just a relaxing way to spend a lazy afternoon gazing at astonishing views under the tropical foliage. Entry to the lagoon is free and it is patrolled seven days a week, including public holidays.

Bill said despite the constant attacks on management rights and length of term from outside interests, the management rights industry remains a good long-term business for operators.

Work

with the firm that delivers nationwide, industry leading transactional services and advice across all accommodation based business types. Helping hundreds of resident managers and operators each year to acquire, sell, protect and grow their business.

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“I think smaller complexes might struggle for a period, but the larger complexes and the big partnerships will continue to grow and thrive so long as they have a good management team and structure,” Bill said. He added that anyone new to the industry obviously has to do due diligence before committ ing to a deal, but he said one of the most important steps anyone in management rights should take is to join ARAMA, the peak body for the management rights industry.

“ARAMA is such a great group and so helpful for anyone in management rights,” he said.

“Another vital thing to remember in management rights is, if you want to make the business work you have to work the business.”

“It’s no good just sitt ing back thinking the business will run itself and think you can retire,” he said.

“It takes hard work and commitment to the complex and most importantly customer service!

“Creating a wonderful customer experience is vital to a successful management rights business”

“You must be proactive and make the business grow.

“Andrea and I have been very fortunate in that we have an excellent partnership crew who have been involved in management rights for 30 or so years now. With their backing, we were also able to invest in Pavillions on 1770, which my son Adam and his wife Sinead now run. We are shareholders in that also.

“Adam and Sinead saw what we were doing in management rights over the last 10 years and about three years ago they decided they wanted to be involved in the industry too. It’s a great business for anyone who has a talent for dealing with people and who wants to work hard to make their business a success.”

Bill and Andrea work hard to create a welcoming environment at Oshen to make sure their guests can put their feet up and just relax.

Running Pavillions proves a winning endeavour

By Grantlee Kieza, Industry Reporter

On May 23, 1770, Cook steered his ship into one of the most beautiful locations he’d ever encountered. Joseph Banks the rich young scientist financing the expedition recorded that the Endeavour “landed near the mouth of a large lagoon” and that the tropical vegetation was “a sure mark that we were upon the point of leaving the Southern temperate Zone”.

Banks, a handsome burly young playboy with a ponytail, waded through thick mangroves toward the shore, noting that while the sea had abounded with fish, the mud in the swampy parts near shore housed innumerable oysters.

Pelicans flocked to the shoals and sand dunes, and Banks carefully studied a bustard, a bird with a long, slightly curved white neck and a black-capped head. The span of its orangebrown wings was impressive. One of the crewmen shot a bustard weighing eight

kilograms, which was cooked for dinner, and Banks declared he had eaten no bird to equal its taste since leaving England in 1768. Cook named the place Bustard Bay. The town that grew nearby is Seventeen Seventy.

The location around Seventeen Seventy is just as beautiful as it was when Europeans first visited the area more than 250 years ago and Sinead and Adam Stokje are perfectly poised

to take advantage of it as the resident managers of luxury beachfront resort Pavillions on 1770. The superb apartment complex is located midway between Agnes Water and Seventeen Seventy, about 90 minutes north of Bundaberg on the Discovery Coast.

It’s Sinead and Adam’s first property, but since they took over in August last year, they’ve taken off at a fl ying pace, raising

their lett ing pool from 30 units to 36 in that time frame and they are confident they will have even more back on board soon.

Adam was working as a carpenter and Sinead as a real estate associate in 2013 when Adam’s parents, Bill and Andrea Stokje, sold their real estate business in Narangba and headed north to pursue a career in management rights, initially running Noosa River Retreat and now Oshen in Yeppoon.

Adam told Resort News : “Sinead and I watched carefully and saw what my parents had achieved in management rights over the last 10 years and thought the industry would really suit us. It was perfect, given we could combine our previous career roles all into one business model.

“Midway through 2020 I was still working as a carpenter but injured myself, that’s when we both seriously decided to pursue a career change. One that could fi t in with plans to start a family and be with our two dogs every day. P50

Adam and Sinead Stokje

P51

To get more of a feel for the industry Sinead and I travelled to Oshen Yeppoon to lend a hand during our holidays. We got a good feel for the work and systems and after a few visits decided it was time to partner up and find a property that we could operate ourselves.

“We settled on Pavillions on 1770 on August 5, 2022. Having my parents as mentors has been

very beneficial because their knowledge is tenfold when it comes to management rights. It’s fantastic to be able to bounce ideas off one another and incorporate our perspective alongside everything they have learnt over the past 10 years in the industry. It has been a whirlwind but stepping out of our comfort zone and making the move has been the best decision we’ve ever made.”

Pavillions on 1770 is in an idyllic

location, just a short stroll to a sublime beach and with easy access to the superb sites of the Discovery Coast including the breathtaking panoramic views from Captain Cook’s lookout. There is a peaceful calming energy surrounding this tranquil, untouched paradise. Rolling waves and salty ocean air relaxes the mind and soothes the soul.

Pavillions is surrounded by nature reserves, and local kangaroos can usually be

spotted grazing as the sunsets as the sky becomes an exquisite tapestry of gold, pink and purple. There is also an abundance of fishing spots, and easy boat access to Lady Musgrave Island where turtles breed.

The point break at Agnes Water beach is a surfer’s playground with local surf schools offering lessons. There is also a patrolled beach where families and children of all ages can relax and enjoy holidays they’ll remember forever.

Adam and Sinead have loved their new business since day one.

“We really enjoy interacting with the locals and holiday makers. There is a real sense of community here,” Adam said.

Stepping out of our comfort zone and making the move has been the best decision we’ve ever made

“It’s a whole different vibe here in Agnes than the usual fast paced city life we were used to. This location is so picturesque, and while it’s never overcrowded, we get very busy at holiday times because everyone in Australia is now discovering the area and what it has to offer.

“At Pavillions you can be on the beach with your toes in the water in under two minutes, we’ve also got some of the only ocean-view apartments overlooking the beautiful Agnes Water Main Beach that stretches all the way to 1770.

“They are the largest apartments in the area. Our three-bedroom suites are 170 square metres all boasting large indoor spas and barbeques on the large patio areas. Perfect for holidaying families. We also have two great pool areas onsite.

Adam said one of the main issues anyone new coming

into management rights should consider is that they will be dealing with multiple businesses every day in the shape of individual unit owners.

“Every one of those owners has their own individual wants and needs and it’s very important to adapt to each individual to ensure their needs are being met,” he said.

“We’ve put a lot of focus on customer service and the cleanliness of our rooms along with working in with our owner and the body corporate to rectify any visual issues as we believe first impressions of everything.

“We’re taking one day at a time; we were given the advice that the first 12 months are the hardest and always remember it’s a marathon not a sprint. Even the smallest tasks built up over time lead to an overall win eventually.”

Flood Legal is proud to support Daniel Flood as he hits the road for Tour De Cure riding from Coffs Harbour to Noosa between 16 – 24 March.

We would like to thank all our amazing supporters for their generous donations of accommodation. The accommodation was auctioned off with huge success on a live platform at the Soiree for a Cure event which saw over 400 guests attend the Hilton Brisbane for a night of entertainment and inspiration from cancer survivors, medical staff and medical researchers. This year the night raised close to $400,000 and the donated accommodation played a great part in making the night a success.

Donations

https://tourdecure.grassrootz.com/signature-tour-2023/daniel-flood/donate

Tour de Cure started with a dream – a dream of a cancer-free future. TDC’s aim is to tackle cancer head-on and be relentless in their pursuit of curing cancer. It’s a big task, but one they won’t shy away from. It’s this ambition, backed up by the energy of their team, their riders, their fundraisers, their volunteers, and critically, the researchers they help fund, that means they’ve raised $97 million over the past fifteen years. The possibilities of what they can achieve are endless and their not stopping until cancer does.

www.floodlegal.com.au