Resort News, May 2023

Mandy Clarke editor@accomnews.com.au

Gavin Bill subscriptions@multimediapublishing.com.au

INDUSTRY REPORTERS Grantlee Kieza PRODUCTION Richard McGill

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-o topical pieces

CONTRIBUTING THIS ISSUE...

Andrew Morgan, BCCM Commissioner, Col Myers, Jonathan Hanaghan, Kelley Rigby, Laura Bos, Lynda Kypriadakis, Ma hew Manz, 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!

Keep it real or not?

Full disclosure! This month as a little experiment I asked Open AI to write my editor’s note! I gave it a very simple and general direction to “write a 200-word editor’s note for a management rights industry magazine” and it instantly came back with…

Dear readers, we are delighted to bring you the latest edition of our management rights industry magazine. This issue explores the key trends, challenges, and opportunities shaping the industry today.

In this edition we discuss the latest updates in strata law, body corporate governance, and licensing requirements, and how these changes impact management rights operators.

We recognise the importance of collaboration and partnerships

within the industry, and feature examples of successful collaborations that are delivering improved efficiencies and creating new revenue streams. As always, we bring you the latest insights from industry experts and leaders, with a particular focus on best practices for managing and growing your business.

We also showcase the latest tools and technologies that can help you

streamline your operations and deliver exceptional customer experiences.

We hope that you find this edition informative and inspiring, and as always, we welcome your feedback and suggestions for future topics.

Thank you for your continued support. Best regards, Open AI. Very impressive! Granted, it lacks a bit of flair, so I asked it to rewrite with the personality of the legendary Joan Rivers and this is what happened… Hello, darlings! It’s your favourite editor back again, bringing you the hottest and latest in the management rights industry. I know you’ve been waiting for this, so let’s dive right in. In this edition, we’re tackling the issues that are shaping the industry today. We’ve got the latest on how managers are adapting to the post-COVID world, the legal updates you need to know, and the power of collaboration and partnerships to help you grow your business.

And you know we’re not skimping on the expert insights, honey. We’ve got the biggest names in the industry sharing their secrets for success. Plus, we’re showcasing the latest tools and technologies to help you run your business like a boss. We’re all about keeping you informed and entertained, so we’ve thrown in some fun features too. You won’t want to miss our spotlight on the bestdressed managers in the biz. As always, we want to hear from you. Don’t be shy, darlings. Let us know what you think. Thanks for your continued support and stay fabulous! Open AI Joan. Wow, I think you’ll agree what a clever and entertaining bit of tech this is. However, although it’s all ‘shits and giggles’ now, I fear all of this AI shenanigans will end in tears. Prefer the real me? Then you will enjoy this (non-AI) edition Resort News

Man Dee Gee Pee Tee, Relieving Editor

Dennis Clark MDIA

Stop bullying order puts body corporate on notice

By Grantlee Kieza, Industry Reporter

A recent decision by the Fair Work Commission to issue “stop bullying” orders against a body corporate committee after one of its onsite caretakers attempted suicide, has been applauded by ARAMA. Onsite caretakers successfully made the stop bullying application after they claimed they had been “living in misery” over the Christmas period because of unpaid invoices.

A report from Denise O’Reilly, the Director of O’Reilly Workplace Law, said it was the second application brought by the caretakers “after the first resulted in a private conference determining preventative actions would be put in place after the worker had attempted suicide.”

The second application agreed preventative actions were not implemented.

“The caretakers had sent vast correspondence requesting payment, each becoming more desperate before stating they had been ‘living in misery’ due to not having enough money to live on over the Christmas period,” the O’Reilly report stated.

“The email response by the body corporate’s treasurer sought to taunt and mock the caretaker for ‘living in misery’ and payment was not made for another 12 days.

“Whilst late payment as a result of poor planning may be considered reasonable management action, the email taunting and mocking the caretaker was inappropriate and it was reasonably foreseeable that it would result in distress and mental anguish.”

The Queensland Government’s Office of Industrial Relations says a worker is bullied at work if:

• a person or group of people repeatedly act unreasonably towards them or a group of workers of which the employee is a member; and

• the behaviour creates a risk to their health and safety.

It advises anyone who thinks they are being bullied or harassed at work to apply to the Queensland Industrial Relations Commission (QIRC) for an order to stop the bullying. Any information collected through these processes would be handled in accordance with the QIRC’s privacy obligations under legislation.

ARAMA CEO Trevor Rawnsley said all the places where a resident manager performed their duties was considered a “workplace” under legislation.

“So any time a resident manager, a carpenter, an electrician or anyone else gets bullied, harassed, vilified or manhandled by someone at a scheme, that constitutes workplace bullying, and that is covered by the Workplace Health and Safety Act,” Mr Rawnsley said.

“There are huge penalties involved. A committee member can be fined $5000 for workplace bullying and it is no defence to say they are just volunteers.

“Unless the body corporate stops the bullying or harassment they can be liable for a fine of up to $25000.”

Mr Rawnsley said most cases of bullying and harassment of resident managers were not physical but usually verbal or written, “using threatening words or coercion”.

“ARAMA’s point of view is that a scheme is the workplace of our members, and you just can’t mistreat people in a workplace whether you’re a big company or a body corporate,” he said. “Workers wouldn’t put up with bullying or harassment in an office so why should they do it in the workplace just because they’re in a scheme?”

Mr Rawnsley said under workplace health and safety law both the body corporate and resident managers were regarded as a PCBU (a Person Conducting a Business or Undertaking).

“Society these days is too quick to criticise,” Mr Rawnsley said, “and we see it repeatedly in the workplace.

“We even see bullying from guests sometimes who will threaten managers with a bad review unless their demands are met.

“But certainly there are very strict laws in place to protect resident managers from aggressive or

angry committee members.” On February 14, 2023, the Fair Work Commission’s Deputy President Theresa Dobson ruled that the names of the parties involved in the case before her, be made confidential because of the damage it could do to other unit owners, but she still granted the interim orders to stop bullying. Her judgment declared: “Ms J is the Director of Company F (the Employer) and Mr E is an employee of Company F. Company F owns the management rights to caretake and perform on-site management duties at a multiresidential private gated estate of around 93 homes. The owners of the complex are represented by a Body Corporate Committee (BCC).

“The Applicants sought orders against Mr K (Person Named) who is the Treasurer of the BCC and, during material times relevant to this matter, the

Acting Chairman of the BCC. The Applicants allege that Mr K and the BCC have engaged in unreasonable behaviour towards the Applicants that has caused a risk to their health and safety.

“The same parties, among others not presently involved, were named and involved in joint stop order applications before me filed with the Commission on 29 June 2022. Those matters were resolved following a consensus agreement being reached in a private conference before me on 20 July 2022 (First Applications).

“It is helpful to provide some context around the First Applications and their resolution. In the First Applications, it was not in dispute that Mr E was struggling to cope with the situation at hand and had made an attempt on his own life.”

Ms Dobson ruled that she was satisfied that Mr E and Ms J

are workers as defined by the Workplace Health and Safety Act 2011 (Qld) in a constitutionally covered business, and that while the majority of the issues raised were reasonable matters to be raised by the BCC, “the manner in which they have been raised, including the frequency, tone, timing, content and approach detailed in that correspondence is not at all times reasonable and there are multiple incidents of substantiated unreasonable behaviour.

“I am therefore satisfied that the Applicants have been bullied at work by Mr K and given his role as Treasurer and acting Chairman of the BCC, that flows to the BCC itself.

“I am satisfied that repeated unreasonable behaviour has created an ongoing risk to the health and safety of the Applicants.”

A committee member can be fined $5000 for workplace bullying and it is no defence to say they are just volunteers

Why unit owners love Management Rights

providing much better value for their scheme than if it used outside service providers.

By Trevor Rawnsley, CEO, ARAMA

Unit owners love management rights and resident managers love unit owners.

The bonds that underpin the Management and Letting Rights (MLR) industry are a beautiful thing and they endure despite the attempts by some jealous outsiders to break up the long-term love affair.

How do we know that the admiration between owners and managers is so strong?

One telling reason is that over the last 250 occasions whenever owners have been asked to vote on a top-up or extension for their resident manager, they have voted “yes” 85 percent of the time.

Owners don’t have to vote at all, and if they do, the voting is by secret ballot. Yet, despite those impediments, on 85 percent of occasions owners still vote “yes” to extend the term of their management agreements.

Owners obviously realise that by using a resident manager with a long-term caretaking service agreement they are getting a really good deal.

And to prove that, over the last 250 occasions whenever an independent assessor has measured the value of the caretaking service provider, on 90 percent of occasions that assessment shows that the manager is being underpaid while at the same time

Resident managers are on call 24/7, in contrast to the fact that these days it’s almost impossible to get a guy to come out and clean your pool or mow the grass. If you can find someone, you’ll know that costs have gone through the roof. What used to cost $50 a few years ago is now likely to be $100, and tradesmen such as plumbers and carpenters are charging around $1000 a day. Compare that to the caretaking remuneration of a resident manager, and by any estimation MLR provides much better bang for a scheme’s buck.

Despite constant agitation by parties with a vested interest to oppose and even undermine MLR, most caretaking service providers operate in a symbiotic relationship.

We would like to give a shout out to all those unit owners who support resident managers and the work they do. Here’s to all those unit owners who are fair

Bonds that underpin the Management and Letting Rights

and balanced, who volunteer their time on committees, and like their resident manager always act in the best interests of the scheme.

A few years ago, ARAMA commissioned a report from Deloitte which showed that a resident manager gives much greater value to a scheme then alternate business models. The report also showed that a resident manager, acting as an onsite letting agent, delivers a better and higher return than an offsite letting agent might otherwise do.

Residential Tenancy disputes are less likely and tenant behaviour is improved due to

the interdependent relationship between a resident manager performing the dual role of onsite letting agent and onsite caretaking service provider.

Research undertaken by Griffith University into satisfaction levels with various management models found that unit owners favoured complexes with a resident manager in place.

More than 85 percent of survey respondents strongly agreed that onsite caretakers are proactive in ensuring high amenity levels of the complex, as their income is dependent on return customers.

Paul Cooper is a body corporate chairman at Evolution, a landmark Brisbane property on the corner of North Quay and Tank Street overlooking the Brisbane River. It’s a 36-floor skyscraper with 170 lots and a hard-working management rights team.

Paul says the scheme is very fortunate to have management rights because, working in harmony with the body corporate they are both doing everything they can to implement what is best for the building.

(MLR) industry are a beautiful thing

Paul Cooper

Both the management rights holders and the committee are putting money and time into protecting the assets of the building and if something needs to be done then they work on it together to benefit both parties.

Two years ago, at the Portside complex in the Brisbane suburb of Hamilton, retired town planner Hans Westerman was elected body corporate chairman at the age of 95. He developed a great relationship with the resident manager and together they helped to revolutionise the way the scheme ran, as Hans put together an overarching cloud-based software system so that owners could contribute their thoughts on work at the complex.

It’s wonderful to read some of the testimonials that various unit owners volunteer on behalf of our resident managers.

Patricia Thomas, the body corporate chairperson at the Glades North Hill complex at Robina, says the resident manager there, Joyce Xia, has “demonstrated a high level of proficiency in her management role during the two and a half years we have worked in conjunction.” Glades North Hill features 105 lots with a mixture of townhouses and apartments.

“Joyce is an excellent manager, quick to respond to all situations and enquiries,”

Patricia said. “She has a deep understanding of business operations and has been able to effectively manage resources. Her ability to communicate clearly and effectively has been a key asset ensuring that everyone is well briefed in the steps of each project.”

Greg Norris, the committee’s treasurer, says Joyce and her husband Ken are “a breath of fresh air” who have shown lot owners and the committee how a truly professional team can manage a complex.

“Joyce is well versed in the area of all things body corporate,” Greg said, “and has used this knowledge to support the committee during some very difficult situations. A reconstruction of the pool area involved many structural reports and council certifications and some setbacks due to previous records being unavailable. Joyce and Ken have tirelessly followed up on every aspect of this project with the utmost efficiency.

“Joyce and Ken have gone out of their way to ensure that all areas of safety, fire, pest control and general maintenance are all logged and up to date and have invested in new equipment to ensure the grounds are kept to a high standard. They have invested in battery operated trimmers and blowers to reduce the noise levels within the complex and have put in place LED modification of the streetlights to reduce energy consumption. The irrigation system has recently been upgraded to include rain sensors to reduce water consumption.

“Newsletters are also sent on a regular basis so that all owners are aware of the improvements being made and where their levies are being utilised.”

Last year, owner and resident Glenda McKay and her husband moved into the Adie Apartments in Ashgrove, which has 22 units and three commercial lots.

Glenda says Benjamin Webb “has demonstrated outstanding abilities in his role” as manager.

“The most impressive aspect of Benjamin’s management skill set,” Glenda said, “is that he assists to the best of his ability, going above and beyond to make our living environment safe and secure. Benjamin works tirelessly to ensure that the environment at Adie Apartments engenders an attitude of caring and looking out for each other whilst retaining privacy in a safe space.”

Ben has also taken over the caretaking and building management role at Macleay Tower and Villas, a residential complex in Goodwin St, Kangaroo Point. The complex consists of 110 residential units, largely owner-occupied, in a 22-story tower and a 12-villa separate building on the waterfront of the Brisbane

River. He has adapted rapidly to the different challenges this job presents and has brought a welcome energy and freshness to managing a vertical village. Meanwhile, north of Brisbane Ian and Maree Smith and their Hidden Vista Property Management based at Griffin, look after more than 230 properties across a number of complexes. Crystal Bates, one of the body corporate chairpersons who uses their services, says “Maree and Ian are always prompt, give great advice and

support! Their communication and customer service skills are exceptional; they are experienced and resourceful and every situation is handled promptly and professionally, with a proactive and big picture attitude.”

Ian and Maree took out last year’s ARAMA TOP Award at a gala function at Brisbane City Hall as Resident Managers of The Year (Long Stay). A key point they realise is that they are in a customer service business, and they are obviously providing great service for their tenants, unit owners and committees.

Ian and Maree are abiding by the principles of the Triangle of Management. They get on well with their body corporate committee and the body corporate manager and they go the extra mile to satisfy their lot owners and their tenants. Everyone benefits from their good management. When unit owners and resident managers act in good faith in the best interests of the scheme it creates a harmonious environment where people live and work.

Peace reigns supreme and love is in the air. Sing along now…

Ian and Maree Smith

The importance of each of your management documents

I cannot stress enough the importance of having a compliant Lett ing Appointment with each owner in your lett ing pool. The Appointment must clearly set out the services that you will provide and the expenses to be incurred by the owner of the lot. You can and must, only charge expenses that are in accordance with the Lett ing Appointment. These charges cannot be varied without the agreement of the owner.

By Col

The documentation that ‘bubble-wraps’ a typical management rights structure are:

• a Building Management with the Owners Corporation;

• a Lett ing Agreement with the Owners Corporation;

• the Owners Corporation By-Laws; and

• lett ing appointments with each of the owners in your lett ing pool.

I am frequently asked about the importance of each document. Consequently, I thought it might be worthwhile to rank the commercial importance of each of the documents, as I see it.

Letting Appointment with owners

The majority of the profi t generated by management rights comes from lett ing. In NSW, the legislation provides that you cannot carry on the business of lett ing unless you are licensed, and you have a written Appointment from the owner of each lot.

The NSW Property, Stock and Business Agents Act specifies the details of what must be included in a lett ing appointment.

In Queensland, there is a prescribed form – the Property Occupations Act Form 6

Lett ing Appointments in Queensland can be terminated on 30 days’ notice whereas in NSW, they can generally be for any term (although generally subject to termination on 90 days’ notice if for serviced apartments).

Because of the income generated by these Lett ing Appointments, I rank this document, the most important!

Building Management Agreement (Caretaking)

The Building Management Agreement provides for the cleaning and maintenance of common property and sets out a manager’s duties and how often these duties must be performed. In consideration of the manager performing these duties, the manager is paid a set monthly remuneration by the body corporate.

Building Management Agreements are long-term contracts which are regularly renewed. However, Owners Corporations have no obligation to grant extensions to these agreements. The manager requires the support of 51 percent of owners (who vote at a general meeting) to have the duration of these agreements extended.

In New South Wales, the maximum term of these agreements is 10 years. Obviously, the longer the term, the more secure your business. Managers have an expectation that if they do a good job, they will be supported

by the owners in “topping up” these agreements. The revenue generated from Building Management Agreements is very highly rated as it comes in every month from an entity that can never really go broke. Because of this guaranteed monthly income stream, I rank this agreement the second most important document.

By-laws

In New South Wales, the entering into of a Lett ing Agreement with Owners Corporation should be empowered by a by-law. This is not the case in Queensland, where the Lett ing Agreement is empowered by the legislation.

By-laws that restrict onsite competition to your business are important. In New South Wales, these special privilege by-laws entrench the manager’s onsite exclusivity in relation to the conduct of caretaking and lett ing. Banks and valuers place significant importance on these types of by-laws. Eff ectively, they restrict another owner or occupier from carrying on a competing lett ing business from another lot or from the common property at the complex.

Special privilege by-laws must be passed by way of a special resolution (eff ectively a 75 percent majority). A special resolution is also required to rescind such a by-law. However, if the by-law att aches to a lot, it cannot be rescinded without the written consent of the owner of the lot. This is a very important distinction.

Because the benefi ts of bylaws can remain in force even if the Lett ing Agreement has terminated, I rank by-laws the third most important document.

Letting Agreement

A Lett ing Agreement is eff ectively an agreement with the owners corporation (usually for a term that runs concurrent with the term of the Building

Management Agreement) that grants the manager onsite exclusivity to conduct a lett ing (and sometimes sales) service from a designated lot or from the common property within the strata scheme. The Agreement does not however prohibit owners from lett ing units themselves or via external agents.

These Agreements often require the manager to keep the office open during set hours and incorporate other directions as to how the lett ing business must be operated.

Lett ing Agreement (like the Building Management Agreements) are contractual in nature and have a start date and end date. The rights conferred by a Lett ing Agreement come to an end when the agreement comes to an end.

In my view, by-laws which provide similar exclusivity and restrictions on owners or occupiers competing with the manager are more eff ective as they do not necessarily come to an end when the Lett ing Agreement comes to an end. This is particularly the case with by-laws which att ach to a lot for the reasons previously mentioned.

For this reason, I rank the Lett ing Agreement the least important of the four documents, particularly if there are good empowering and restrictive by-laws att aching to a manager’s lot.

When considering the documents that form the foundations of your management rights business, be sure to give appropriate consideration to all the documents noted above. You should never overlook the value of those documents to your business and particularly, how those documents are essential to your ability to earn an income.

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

Myers, Small Myers Hughes

THE TRUSTED PMS SOLUTION FOR YOUR BUSINESS MAKE THE SWITCH

Damage to property

Contravention of Act or CMS

Evidence should be included in an application that has claimed a contravention of the Act or CMS.

Identify the specific cause

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

When explaining the grounds of your application, you may include the chain of events that led to the damage. For example, if water ingress caused damage to the property, then specify the cause of the water ingress, which may be a failed waterproofing membrane. If you do not know the cause of the water ingress, you may need to engage a suitably qualified person to investigate and report on the cause of the issue. A copy of the report should be included with any dispute application to the BCCM.

Identify a contravention

contravention is where a party has failed to maintain the item related to the cause of the damage.

If a party has a duty to maintain an item or area, it has a strict liability to do so. It is not relevant whether a party knew, or could not have known, the item or area was in disrepair. A party is not excused, even if they take swift action to address the issue once it has come to their attention (for example, MAGOG (NO. 15) Pty Ltd v. The Body Corporate for the Moroccan [2010] QDC 70).

Maintenance responsibilities are largely set out in the Act and Regulation Modules. To see who may be responsible for the cause and what other sections of the legislation may apply, please see our web pages on maintenance which include common topics such as:

Example of contravention

A common example of a contravention is when a pipe, carrying water to several lots, has burst and caused water damage to a lot. If the pipe is classed as common property, under section 20 of the Act, the body corporate is responsible for its maintenance. Therefore, the body corporate may be responsible for the damage the burst pipe has caused. A party who bears a maintenance obligation is strictly liable for any maintenance failure. Whether the party knew or did not know the pipe may burst is immaterial to a claim under section 281.

Example of contravention that would not satisfy 281

Under the Body Corporate and Community Management Act 1997 (Qld) (the Act), a property owner may seek reimbursement or an order for repair, in certain circumstances, through our office.

Last month’s article (part 1) explained the application process, the thresholds required to lodge an application for a dispute resolution, limitations on orders and relevant adjudication orders. This article (part 2) explains contravention of the Act, common contraventions and relevant adjudication orders.

Once the exact cause has been determined, it must be established that a contravention of the legislation or by-laws by a relevant party related to the issue. Without identifying a relevant contravention, the application may not succeed (for example, Qube Broadbeach [2022] QBCCMCmr 90).

You can access the Act and Regulation Modules on our website. Your CMS, which contains the by-laws, is available from Titles Queensland.

Common contravention; Failure to maintain

A common example of a

• Utility infrastructure maintenance web page.

• Building Format Plan Maintenance.

• Standard Format Plan Maintenance

If you require further general guidance on maintenance responsibilities, you can submit an online inquiry to our information service. You can also call our information service on 1800 060 119.

Please note, we can give general guidance on the legislation only, and cannot provide legal advice or rulings.

Hoses that connect appliances such as sinks, washing machines, or dishwashers to waste pipes can fail. Under section 20 of the Act, these types of hoses are generally not considered common property as they are located solely within the boundaries of a lot and service that lot, meaning that the body corporate is not responsible for their maintenance as provided in section 180 of the Standard Module.

Under section 211 of the Standard Module, the lot owner must maintain the hose in good condition and replace it when necessary. Damage that occurs to the owner’s own property because of their hose breaking would not be covered under section 281 for that lot owner.

Occasionally in bodies corporate, property can be damaged through no fault of the property’s owner who could either be an owner of a lot, an occupier or the body corporate.

However, the lot owner may be responsible for subsequent damage to other property under section 281. For example, if the water leaked into the lot below.

Examples of adjudicators’ orders

The following decisions are examples of applications decided under section 281. Each case was decided on its individual circumstances.

Where the body corporate refused to rectify damage that was not covered under insurance - The Nelson [2022] QBCCMCmr 268

A lot owner suffered extensive damage to their lot after the building’s sewerage pipe had been blocked on the ground floor. It caused sewage to back up and overflow into the owner’s lot. The body corporate was responsible for the maintenance of the sewerage pipe because it was classed as common property under section 20 of the Act.

Unfortunately, the body corporate’s insurer would only cover part of the damage to the lot’s kitchen and would not cover other items such as the carpet and the floating floor. The body corporate believed the lot owner was responsible for insuring their own property and was responsible for any damage not covered by the body corporate’s insurance policy.

The Adjudicator said at [43] that…

Whether or not the applicants do (or should have) particular insurance does not put the onus on them if another person or entity causes damage to their property. The person or entity (who caused the damage) will be liable for the damage and the fact that the person or entity responsible for the damage does not have insurance to cover the damage they caused does not alleviate them from the liability for compensating the person who has suffered property damage. Therefore, regardless of whether the body corporate has insurance which covers the relevant event or damage, or whether the applicants have insurance which covers the relevant event or damage, the body corporate is responsible for the damage.

The body corporate was ordered to address all necessary rectification works regardless of whether it was covered under insurance.

In summary, whether the property was covered under the body corporate’s insurance was irrelevant to the application of section 281 of the Act.

Where it was immaterial whether the body corporate took prompt action to address a leak and where that caused damage to personal property - Waterline at Oceanside [2021] QBCCMCmr 44

An occupier of a lot suffered damage to their car’s paintwork because of a leaking pipe in the body corporate’s common property car park. The body corporate was responsible for the maintenance of the pipe because it was classed as common property, under section 20 of the Act.

The body corporate took action to fix the pipe once it became aware of the issue. On this basis, the body corporate’s insurer would not rectify damage to the vehicle as it was of the view that the body corporate took action to mitigate further damage after it became aware of the leak, and it was satisfied that the body corporate had not been negligent.

The Adjudicator cited other matters (including MAGOG (NO. 15) Pty Ltd v. The Body Corporate for the Moroccan [2010] QDC 70) and confirmed that the body corporate had a strict liability to maintain the pipe before it fell out of condition. It was immaterial to claim that the body corporate had acted promptly once it was aware of the leak. The case also illustrates that s 281 can apply in the case of damage to personal property.

The body corporate was ordered to reimburse the occupier for the repair of the paintwork of the car. Where no breach of the legislation or CMS was established - Qube Broadbeach [2022] QBCCMCmr 90

An owner of a lot lodged a dispute application against the body corporate for an order under section 281 for damage to their car that was allegedly caused by a contractor engaged by the body corporate to undertake high-pressure water cleaning of the carpark. The body corporate denied liability and said it had used the same contractor in the past, without incident. The contractor denied causing the damage or working in a way likely to have caused the damage.

The Adjudicator noted that a party is not necessarily liable for the actions of an independent contractor engaged by them if the contractor is competent and acting under their own work system. The adjudicator was not satisfied that the body corporate itself had contravened any provision of the Act or the CMS and dismissed their application.

Where a lot owner was required to reimburse another lot owner due to a leaking shower tray - Tracie Court [2015] QBCCMCmr 207

An applicant lot owner experienced water damage in their living room. A leak detection report showed the respondent lot owner’s bathroom had insufficient waterproofing, causing water penetration to the applicant’s lot. The respondent lot owner had a responsibility to maintain their lot in good condition under the legislation (Standard Module, section 211) and the adjudicator found that this section was being contravened by the waterproofing membrane not being in good condition. The respondent lot owner was ordered to repair the damage to the applicant’s lot, as well as undertake the necessary maintenance to the bathroom’s waterproofing membrane.

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Strata image problem

criminals than people who live in detached housing. Even if they were, that’s not a valid reason to ban all developments over three storeys, as it seems some would like to do.

By Laura Bos, General Manager,

Strata is not a popular thing. People will tell you to avoid living in it at all costs and oppose its construction anywhere they can. It is not a preferred option, and it does not have a good reputation.

People regularly rally entire communities - previously sleepy and contented communities mind you, to turn out to protest, wave placards and gee up local politicians to put a stop to a new, often small-scale strata development. High rise hysteria is a real thing. In fact, a recent survey of residents in a West Australian street suggested that one in fi ve expected serious criminals to move into a proposed high rise down the road. Frightening that this is the perception of the lifeblood of our industry. Obviously, people who live in apartments are no more or less likely to be serious

So why do we have such a serious image problem? Has something happened in unit complexes unique to them that has caused this? The answer is no, not really, and the opposition to strata, which we all have a moral and commercial obligation to confront likely lies somewhere much more reptilian in the human psyche.

In West End (Boston, Massachusett s, not Brisbane) a long-established community was forced to be relocated in the mid-1970s. Psychologists and sociologists rushed to study the fallout. Unsurprisingly (when we consider human nature) what they found was people can mourn a loss of ‘place’. Locals were unable to sacrifice their connection to familiar att achments to notions of ‘the common good’, ‘housing aff ordability’ or ‘progress’.

It is in the study of this community, according to eminent planner Dr Wendy Sarkissian, that we find the answer to the strata industry’s most dreaded acronym ‘NIMBY’. In an insightful address at Harvard University a decade ago, Dr Sarkissian suggested that rather than dismissing, or vilifying the concerns of residents about change, we need to understand them and show a litt le ‘LOVE’ (Listening, Openness, Validation and Education).

In short, the idea is not so much that people are instinctively averse to all change, rather, there is a degree of place att achment built up in how their community exists at present, and the rate of change cannot be so rapid as to create a feeling of ‘loss’.

So there may be not so much a fear of strata out there in the public, but a fear of going from detached housing to large towers very quickly. Thankfully, this is probably not the best way to get the desperately needed strata in our society, to convert detached housing in the suburbs to a mass of high rises is unlikely to be anybody’s preferred solution. The best way to increase housing supply whilst also supporting retain the ‘feel’ that is so precious to existing residents is the path of gentle density. Conveniently, this is also described as the “missing middle” by the Planning Institute of Australia. Medium density housing (two to six storey complexes, duplexes and triplexes) is the missing middle of our new housing stock, which has invariably become a detached home in a far-flung region (relative

to the CBD) or a two-bed apartment in an existing urban area. With demographics changing, this missing middle is absolutely critical. Young single people want an option that doesn’t leave them with a superfluous second bedroom as an inevitability, downsizers want to get rid of hundreds of square metres of yard and garden to tend to whilst preserving their autonomy, and diverse family types need to be accommodated. We are a less homogenous society than ever before and our housing diversity should go beyond mum, dad, 2.1 kids, dog, yard and white picket fence and young people or elderly downsizer in an apartment. Let’s embrace making it our mission to encourage gentle density, and to work with communities as a sector to ensure that the invaluable sense of place we all have. As a sector, let’s show LOVE to the community writ large and ensure that we enhance our social licence. We will preserve communities as they already exist if we get things right as a sector, with the added bonus of being able to allow more people to experience them in all their richness.

The rate of change cannot be so rapid as to create a feeling of ‘loss’

SCA (QLD)

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Separating to sell

By Matt hew Manz, Gold Coast-based Management Rights Partner, Mahoneys

This has been a problem in small to medium size complexes where the value of the manager’s unit has increased dramatically but the income of the business has barely changed or increased at a much lower rate. This has, in many cases, made a combined purchase of the unit and business unviable.

What can a manager do in such a circumstance?

Inevitably the question is almost always, “can I separate the business from the unit and sell them both separately”?

The answer?

Problems arise where the caretaking and letting agreements require the manager to own and/or reside in a unit in the complex and:

• the business is netting a relatively low net profit; and

• the value of the unit is disproportionately high in comparison to the value of the management rights business.

Put simply, the answer is yes, provided that everybody is happy to do so, and that doesn’t just mean the manager. In most cases, the owners will need to vote on such an arrangement at a general meeting.Rather than diving into the mechanics of how that can be achieved the first question that should be asked is whether this is a good or a bad idea. Like most things in life, it depends on a vast array of factors. One that immediately springs to mind is the question of service.

Can a manager living off-site offer a high standard of service to the building and owners?

Management rights is, at its core, a service industry, and a manager that resides on-site is thought to be in a unique

position from which to offer a far better service than someone who is not. That is why lot owners will usually have a preference for an onsite manager over a manager who resides off-site.

A big selling point for a resident manager is that as a fellow resident the manager will be very careful about the types of tenants allowed to rent units and that the manager is always around the complex to deal with issues as they arise, at whatever time of night or day.

Is this true?

For bigger buildings almost certainly. For small buildings, the answer to that question is more nuanced. It will depend on the layout of the building, the length of time the caretaking duties are expected to take, the number of lots in the letting pool (if any) and of course the skill and dedication of the manager.

What is the answer?

Well, in my view, in the case of small buildings, it comes down to a question of service. If you have a good manager that is providing a high level of service, then it won’t matter whether they’re living on or off-site. The same can be said for a bad manager, if they’re providing poor service then living onsite won’t make them any better. In the past, we have had considerable success in achieving the above for clients and we are generally able to arm them with a strategy for achieving the outcome sought. We expect that given the continuation of the current economic conditions, there will be many more managers of small to medium size management rights businesses looking closely at this option.

With the changing economic conditions over the past few years, it has become increasingly difficult for owners of certain types of management rights businesses to sell their unit and business together.

A problem in small to medium size complexes where the value of the manager’s unit has increased dramatically

Selling your small business:

The tax concessions

The general 50 percent CGT discount

Whilst not available to companies, a general 50 percent CGT discount is effectively available to all other business (and non-business) owners who have held the relevant assets for more than 12 months.

to be lodged, there is no requirement to cash flow any amount into superannuation to get this exemption. Though strict timing conditions apply, care must be applied.

By Jonathan Hanaghan, Director, Jonathan Grant Accountants

This month I will be discussing what most of you will be wondering when contemplating selling your small business. Will I have to pay Capital Gains Tax?

Well, this depends on how you paid for the business and how much you end up selling the business for. The potential Capital Gain (or loss if you’re unlucky) will also be reduced (or increased with a loss) by your associated purchase and sale costs, for example, stamp duty, sales agents’ commission, legal fees, and accounting fees. If after taking these calculations into account, you have made a capital gain then capital gains tax may apply.

On selling a business, small and medium-sized business, owners may be able to access one or more of six tax breaks to reduce or eliminate the taxable capital gain that otherwise arises. Outlined below is a summary of the concessions and some of the important conditions that must be met to access them.

Pre or post CGT business?

The first question to consider is whether the business commenced before September 20, 1985. If it did and essentially the same business has been carried on since inception, there is no capital gain on the sale of business goodwill.

Although a company selling its business cannot access this 50 percent discount, an individual shareholder selling shares in the company may be able to.

Regardless of whether or not the above concessions apply, the remaining capital gain might be further decreased by the CGT Small Business Concessions.

The CGT Small Business Concessions (SBC)

To qualify for the SBC the small business owner must have a turnover of less than $2 million or have a net worth of less than $6 million. The asset sold must also be an active asset opposed to a passive asset eg., goodwill.

The four CGT Small Business Concessions are:

15-Year Exemption: A full CGT exemption on the disposal of a business held for 15 years. If this concession is not applied, one or all of the remaining three CGT concessions can be applied.

50 percent Active Asset Discount. A further 50 percent discount on any capital gain. This means that if the general 50 percent discount also applies, the taxable capital gain can be reduced to 25 percent.

Retirement Concession: To the extent any capital gain remains (say, 50 percent or 25 percent, as noted above), it is not subject to tax if it is paid into a superannuation fund, as a non-concessional contribution.

This payment does not attract the 15 percent superannuation fund ‘contributions tax’ but has a lifetime limit of $500,000. If the recipient of the remaining capital gain is over 55 at the time their tax return needs

Replacement Asset Rollover: Finally, where the remaining capital gain (say, 50 percent or 25 percent, as noted above) is reinvested in a replacement active business asset, tax on the remaining capital gain can be deferred until the replacement active assets are sold. Beware though, as with the retirement concession strict timing conditions apply.

Summary

The interaction of the small business CGT concessions, other than the 15-year exemption, means that a small business

owner could make a capital gain of $2 million on the sale of the business and pay no tax in the year the gain is made. This is achieved by claiming the 50 percent general discount, the 50 percent active asset discount, and the retirement exemption of $500,000. It may also be possible to access additional rollover deferrals. Whilst these concessions offer generous access to opportunities to eliminate capital gains on the sale of small and medium-sized businesses, correct structuring, especially on establishment, remains critical. Business owners should always consult with their professional accountant prior to signing any purchase contract as getting it wrong initially can be infinitely more expensive than your initial consultation.

Be like water

flexible they are more able to adapt, think more clearly, and can be determined without being stubborn.

By Andrew

To quote the late Bruce Lee, martial artist, actor philosopher and filmmaker: “Empty your mind. Be formless. Shapeless. Like water. You put water into a cup, it becomes the cup. You put water into a bottle, it becomes the bottle. You put water in a teapot, it becomes the teapot. Water can flow, or it can crash. Be water, my friend.” The Pierre Berton Show, 1971.

There are many other variations of this quote that Bruce Lee used to explain himself. The main concept with any of his related quotes and variations is all about water being flexible. This can refer to martial arts, life, movement, mind, and body. The relevance here is flexibility. When a person is

I can relate to his water references specifically to the sale process of a motel or accommodation business (which can relate to anything being sold). What happens or what is the result if a buyer and seller are both rigid and not flexible in regard to matters relating to the sale process? It collapses.

Many of my articles over the years have referred to parties in a contract (or lease) acting reasonably. This is more about being pliable or flexible to the various situations (many cannot be predicted) that unfold throughout a sale and contractual process. Being flexible does not mean giving in when there is a nonagreement on something. It means being willing to consider alternatives to get from point A to point B. If we were all hard-headed and not willing to bend, how would we ever move forward or improve a situation?

So, what happens when there is no flexibility shown by one or both parties? A stalemate I guess, and that gets us nowhere. If there is a part of the process that one party is adamant about and the other can find it within themselves to agree to, then perhaps there is a compromise on another matter to help make it more palatable to accept. Trying to point score

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or win every point, argument, or item, is not being like water and is not going to result in a positive outcome for anyone. One simple thing I have learned over the years is not to bring future matters into the equation, as it will only create more drama. A simple example of this is where a seller has plans after sett lement and set dates to commence these plans. They may have jumped ahead and purchased a house to move to. Or perhaps another business to start running. Or perhaps booked an overseas holiday. That is great and all, but all those dates that will be a party to these things will simply add pressure to the current situation.

“We don’t care if the bank is not ready to sett le, we are not extending the sett lement date as we are booked to fl y out the very next day!” This is not the buyer’s fault, that the bank will not be ready, or that the seller jumped the gun and booked a holiday. That trip should not have been booked until after the sett lement was finalised. All this has done is bring an outside future matter into the current sale process and caused a potential problem. I have seen this sort of thing result in contracts ultimately being terminated. Where it didn’t get to this extreme point, at the very least the relationship between the parties going forward soured unnecessarily.

The involvement of any third party beyond the buyer and seller will bring challenges and potential delays to a transaction. These delays cannot be foreseen or accounted for prior to. The buyer’s or seller’s bank not being ready to sett le. Any legal documents that have not been completed fully, and so on...

The more people involved, the more opportunity for a delay, for any unforeseen reason. A big issue within the sale process is where any party who is involved in any way (not only a party to the contract), having no respect for contractual obligations. Perhaps they do not understand the importance of these obligations on the buyer and seller. Perhaps they don’t care because they are just playing their role in the process and live by the mantra ‘it will be done in the fullness of time’. A most frustrating att itude for anyone who is working hard to get a job done. This is where ‘being like water’ is very relevant to a business sale situation. Where third parties, not a party to the contract itself, don’t respect the contractual obligations of those they are involved with. Hence why the buyer and seller need to be flexible, not only with each other but with the process, and accepting or working within the requirements, issues, and flaws of others involved.

Being flexible does not mean giving in when there is a non-agreement on something

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

Breaking up is hard to do

By Mike Phipps, Mike Phipps Finance

The managing director and I recently celebrated our 40th wedding anniversary. Yes, I know. How the hell could she have tolerated me for so long? Surely a mystery for the ages and not one I am keen to shine a light upon.

In any event this significant life milestone was cause for both joy and reflection. How do relationships stand the test of time? In our case it’s very simple, I agree with everything she says and when that fails I correct her, seek medical attention for that nasty bump on my head and buy jewellery and fizzy drinks. She, on the other hand, puts up with my many flaws, turns a blind eye to my eternal money wasting on push bikes and occasionally agrees reluctantly to a ride in one of my old, smelly, unreliable and uncomfortable cars. An arrangement grounded on compromise, but more on that later.

As it turns out, relationships are interesting. Unless you are a hermit (an appealing prospect to be sure) relationships inform every aspect of our modern lives and yet, as a society, we seem ill equipped to navigate the myriad pressures and agendas of relationship management. That is, we seem unable to maintain a sense of mutual respect when views differ, the compulsion to anger too great to resist. Of course, back in the day getting mad involved

some commitment. Find your neighbours boots under your bed, saddle a horse, get cracking the 100 miles to his ranch, forget your gun, go back, find gun, reach neighbours place hours later, realise you’ve settled down, punch him in nose rather than shot between eyes, discover they are not his boots, ride home. All this giving the real offender plenty of time for whoopy.

Now we just get pissed off and hit the keyboard. No time to reflect, no time to simmer down, just an uncensored venting that becomes a part of public record and invites a pile on, both for and against.

All of this came to mind earlier this week when I took a call from a management rights operator of long standing. He is in partnership with his wife who is not enjoying good health. They want to sell but the manager’s unit value now exceeds the value of the business. This is a not uncommon dilemma when property prices rise as they have these past few years. Unfortunately, capital gains on units are a double-edged sword whereby an increase in the unit value will often erode the total return on investment across the combined business and unit value. As such the operators have approached the body corporate with a proposal to split the managers unit from the business. From what I am told the approach has been measured and well presented. The reaction of certain owners

has been to hit the keyboards. Here’s where we segway back to the relationships and marriage dynamic. The traditional management rights model of a business joined at the hip to an apartment in which the managers live is inextricably linked to owner and body corporate perceptions of the relationship. I think approaches to sever the unit from the agreements need to be seen through the prism of a fundamental change in the relationship. Yes, we are still married, I still love you, but we can’t live together any more. To add insult to injury once you approve us not living together, I want to put you on Tinder and find you a new partner. I exaggerate for effect of course but the core of the point remains valid. Requests to sever units from management and letting agreements need to be treated more as interpersonal relationship negotiations than business transactions.

Central to the discussion are two points, both of which are the responsibility of the resident manager to argue.

The first is to prove, as best as possible, that the experience of the owners will be no different with their new love interest. Maybe even better. This is tough as the new suitor is almost never known at this point. Best to paint a picture of the process that the manager will go through before presenting a potential replacement. In a perfect world present the

proposed new manager very early in the process and don’t wait until the assignment meeting. Agree to do so if the body corporate supports the unit sever proposition. You don’t want to turn this into body corporate speed dating, but I don’t think you or your owners want a blind date either.

The second point is to openly discuss with the owners how miserable you are and how badly you want out of the marriage. The relationship need not be broken for you to want to move on, life throws up plenty of challenges and circumstances change. If you have an unsaleable business because your unit value has risen, you are essentially trapped in the relationship. Owners need to understand your predicament and be encouraged to take a sympathetic view. I’m not suggesting managers should throw themselves at the mercy of the owners but a cry for empathy is seldom ignored.

A final point. You will notice I talk about owners, not committees. In my experience making a heartfelt plea to committee may be akin to asking your parents-in-law to mediate in your marital dispute. Better to bring everyone in the relationship into the tent.

I’ll leave you with a quote from Rita Rudner: “I love being married. It’s so great to find that one special person you want to annoy for the rest of your life.”

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Winter weather:

Time for pool refurbishment

By Lynda Kypriadakis, Diverse FMX

After Easter, the weather usually makes a sharp turn into winter so it’s a good time to start thinking about those pool refurbishment projects while swimming season is over.

Given the manifest complications associated with pool repairs we tend to put these off, so the cooler months are a good time to bring this chore up to the top of the list.

Common pool defects

Pools need maintenance like any other asset owned by the complex and this maintenance can be either associated with

water quality control (water testing, functionality of pumps, filters, and chlorinators) or the built environment (the noclimb zone, fences, gates, pool shell, ladders and other access equipment). Maintenance of the water quality control infrastructure is usually undertaken all year round by the onsite building manager or the local pool shop engaged by the body corporate, so this is not too tricky to organise, but the capital repairs and upgrades to the pool shell and pool lining treatments can require specialty consultants.

Water levels dropping

If you notice that the pool water levels are dropping, and the pool needs topping up with the hose more frequently it is important to look into the cause right away.

Common causes of water level drops are:

• Pool shell crack that is leaking;

• pool system pipework leak;

• leaking chlorinator, pump or filter system; and

• too much back-washing.

Finding a leak in a concealed pipework system is difficult, so

getting a plumber involved is recommended. Pressure testing of the pool system pipework by a specialist plumber will investigate the integrity of the pipes and report on any leak defects that need fixing.

When a leak in the concrete pool shell is suspected a specialist structural engineer might be needed to investigate and provide a remedial solution design.

Leaks in the chlorination, pumping, and filtration infrastructure are usually quite visible to the person who services the pool water quality, but these leaks should not be ignored. When left without fixing, chlorinated or salty pool water left to continue leaking onto concrete can cause degradation of the concrete slab. If the pool plant and equipment is installed on a concrete hardstand any leaks should be urgently repaired to ensure the slab doesn’t deteriorate.

No-climb zone maintenance

It is important that the noclimb zone is preserved for public safety and regular checks on any issues that could compromise the no-climb zone

are important. Building managers and committees in strata properties with pools should routinely check the following:

• Ensure no climbable items are within 900mm of the outside of the pool fence. These are items that a child could climb upon to scale the pool fence and gain access to the pool area, such as potted plants up against the fence, chairs and furniture, wheelie bins and so on.

• Branches that exceed 10mm in diameter that grow within 900mm of the outside of the pool fence. Branches of this size could support the weight of a small child determined to gain access to the pool area.

• Faulty pool gates need urgent attention and repair. Regular preventative maintenance is important to ensure the pool gates function as intended at all times.

Maintenance of the no-climb zone is a mandatory requirement for the building owner and the Pool Safety Certificate will not be reissued if the no-climb zone is non-compliant.

Coping stones

Defects in the coping stones (or tiles) around the perimeter of the pool tend to present regularly in swimming pools and need regular maintenance plus replacement from time to time. Tell-tale signs of coping stone defects include:

• Efflorescence staining and calcium deposits presenting between the tiles – these deposits need regular cleaning to keep them at bay because if they are left to escalate these deposits will eventually increase in size to the point where they delaminate the coping stones or tiles and cause them to be “drummy” or dislodged.

• Caulking seals around the coping line are the flexible seal at the joint between the pool shell concrete and the hardstand around the pool area. These seals prevent excessive water accessing the substrate and are an important part of the waterproofing system. Ensuring the caulking seals are in good condition is important. These should be checked and repaired [or replaced] at least annually.

• Cracked and drummy coping stones or tiles need to be repaired as soon as possible. These defects are indicators that another problem might need attention, so expert inspection and advice is recommended.

Efflorescence, cracks and drummy tiles that appear within 12 months of practical completion of the pool (or any retiling project) are a non-structural defect that can be claimed under the

QBCC builders warranty. Once the 12-month defect liability period expires these become normal maintenance for the body corporate.

Waterline tiles

If your pool has waterline tiles these are likely to become dirty over time from scum caused by sun-tan lotions and other contaminants washed off bathers during swimming activities. The dirty waterline scum will need to be washed off regularly and this would usually be a duty under the caretaking agreement or cleaning contract.

When waterline tiles start to crack or delaminate and fall off this is usually an indicator of either the end of the useful life of the tiles and they need refurbishment; or some other substrate or tiling defect

If the latter specialist consulting advice would be important and perhaps an invasive survey required to determine the cause of delamination. It is important

to consider the cause of the delamination of the waterline tiles (substrate defects or poor laying technique by the original tiler) before repairing to ensure the delamination issue doesn’t recur.

Defects in waterline tiles that occur within the first 12 months following installation are also considered a claimable defect under the QBCC builder’s warranty. Once the 12 months are up these also become normal maintenance for the body corporate.

Fully tiled pool shell

For swimming pools that are fully tiled expect the useful life for the tiling to be 15 to 20 years, so as a general rule of thumb the building owner could start to consider full refurbishment around this age. After 15 to 20 years of life, the pool tiles will most likely start to delaminate and deteriorate, if not before.

Full replacement of the pool shell tiling is a good time to look

at replacing any deteriorated pool equipment (access ladders, skimmer box, etc.) as well as any pool shell cracks or other defects and get those fixed at the same time. Unless there is a leak noticed in the pool shell (or water levels dropping at an increased level) it is hard to see cracks in the pool shell until the water is fully drained.

Pebblecrete pool lining

Similar to a fully tiled pool, pebblecrete lining has a useful life of 15 to 20 years or less.

Once pebblecrete starts chipping and delaminating from the concrete pool shell it tends to rapidly deteriorate and can cause injury to pool users that encounter the rough edges at the damaged spots. As it is very difficult to see these defects when the pool is full of water it is recommended that the body corporate plan toward pool upgrades in a pro-active timely manner, under advice from either a specialist project manager or the sinking fund forecaster.

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The importance of price parity in the accommodation industry

Why listing your property cheaper than OTAs isn’t always the best strategy

By Sylvia Johnston, Senior Executive, HiRUM Soft ware Solutions

For accommodation providers such as hotels, motels, and vacation rentals, maintaining price parity across all online channels is vital to long-term success.

Not only does it prevent customers from shopping around, but it can also help build long-term customer loyalty and improve profitability. Price parity refers to the practice of maintaining consistent pricing across all online channels, including Online Travel Agencies (OTAs), your own website, and any other third-party sites where your property is listed. One of the common mistakes that many accommodation providers make is trying to undercut OTA prices by listing their property for a lower rate on their property website. While it may seem like a good idea to attract more direct bookings, it can have the opposite effect in the long run. When a customer sees a different rate on your website, they may decide to shop around in the hope of finding an even better deal somewhere else. However, this can often backfire, as they may end up finding a cheaper deal with a different property altogether on another OTA site. Had you not encouraged them to shop

around, they would never have come across this deal at all.

To prevent potential guests from shopping around, it is essential to think smarter about how to keep them on your website once they have landed there. The first step is to ensure that your Channel Manager has a tool that clearly shows the customer the price is the same across all distribution channels. By displaying your listed prices, the customer will realise there is no need for them to shop around, as they know they are getting the best deal possible.

But how do you win the customer over to book direct with you?

The answer lies in providing value-added services that the OTAs cannot offer. For instance, offering flexible cancellation rates, late check-out, or a

“Best Room Guarantee” will usually sweeten the deal for the customer. You can also provide extras such as breakfast vouchers, a drink on arrival, or discounts at local tour centres to entice them to book with you directly. By winning the customer over to book with you directly, you save the commission fees that you would otherwise have to pay the OTA. Moreover, you own the customer data, which is essential for long-term business success. Having access to complete customer data allows you to build a relationship with your guests well before they arrive at your property.

The added value of owning customer data is often undervalued, and most accommodation providers fail

to use it to their advantage. By using pre-arrival communication, you can encourage your guests to upgrade their room, book a table at your restaurant, or organise a tour through your referral link.

These added services can help build a long-lasting relationship with your guests and improve customer loyalty, whilst simultaneously improving your bottom line.

In summary, price parity is essential for the long-term success of your property. It is crucial to avoid undercutting OTA prices in order to instil customer confidence, preventing them from shopping around. Instead, focus on providing valueadded services to win customers over to book with you directly.

By doing so, you save on commission fees, own customer data, and have the opportunity to build a lasting relationship with your guests. Remember, the key to success in the accommodation industry is to focus on the long-term relationship with your guests rather than the short-term profit.

The answer lies in providing value-added services that the OTAs cannot offer

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The power of appreciation

If we had spoken a few months ago and you’d asked me, “Kelley, do you think you could handle having another three kids in your life ages five, nine, and 12?” My answer would have been: “Are you kidding! I am at breaking point with the ones I have now.”

By Kelley Rigby, Managing Director, Lett s Rebuild

I am a mum of two, step-mum of three, and now a carer for my two nieces and one nephew…

That brings the total of children in our household to eight, aged from one year to 16. When you think you are at breaking point, know there is so much more strength inside of you.

But I love them all dearly and would do anything for each and every one of them. Fast forward to today and it seems that one can handle more than one thinks.

Let’s look at a prime example of this in our industry, turning back the clock to 2019, if I asked you: “Do you think your business would survive a pandemic that shut down the state and saw many people out of work?” Do you think your answer would have been an enthusiastic no or yes? Yet here we are three years on and the industry we know, and love is back to its thriving

self. The silver lining of a tragedy or hard times is the appreciation we have for things once the dust settles or better yet where we are back sitting in the life, we once thought was our ‘breaking point’. I want to set you a challenge this month, take a cup of tea or wine or whisky and think about or write down all the aspects of your business that you appreciate. What is it that makes all the difficult situations and nerve-racking conversations worth it? What is it that fills your cup and makes you happy? If you have written this down, which I hope you all did, I want you to reflect on this bit of paper after you have had a tough day or a difficult AGM or even a disagreement with a tenant. Having something in writing that you can look back on can help you appreciate

all the good aspects of our industry. Appreciation is a powerful tool when you think you are at a ‘breaking point’.

Challenge accepted?

Letts Rebuild is baby number nine in our household, sometimes (or a lot of the time) it is even in first place when the kids are driving me bonkers. I am constantly sitting in appreciation that I have found an industry that aligns with my values, morals and simply fits. I appreciate that this industry has helped me create a business that allows me to be the mum and businesswoman I have always dreamed of. We are a pillar of strength when we need to be and more importantly when we want to be. When something is so dear to our hearts, I believe we can all become superheroes.

SUNSHINE COAST NEWS

The Sunshine Coast’s tourism industry has a new turbocharged training program, SHINE. Launched by Visit Sunshine Coast (VSC) with Olympic Champion Duncan Armstrong, and attended by over 100 tourism businesses, it offers a tailored approach to training.

As the largest tourism program ever created by VSC, it’s designed to help operators enhance the experiences they offer visitors. Workshops and online training sessions will be delivered by VSC covering areas such as emerging travel trends, digital technology, online experiences, social media, and branding.

VSC Head of Industry and Trade Development Andrew Fairbairn said SHINE aims to build on Sunshine Coast tourism assets and support businesses to deliver the goods.

“We know the world of travel has changed dramatically over the past three years, requiring a dynamic new approach to delivering experiences,” he said. “Travellers want encounters that engage, inspire, and reenergise them. We call these experiences Sunshine Moments and through them we can SHINE as a destination.”

The program is based on a model developed by Tourism and Events Queensland (TEQ)

that has been customised for the Sunshine Coast.

Amaze World owner Adam Cheshire said the SHINE program offers a new approach to tourism training to remain competitive and deliver the best experience for visitors.

“The Visit Sunshine Coast SHINE program will allow us to take our customer service up a notch, better understand the latest travel trends, become more digital savvy and develop branding strategies for our business,” he said.

“We completed the TEQ program and really resonated with the structure and loved the opportunity it provided to look at our business and how we fit within greater Queensland.

“SHINE will further customise the TEQ program to be relevant for Sunshine Coast tourism businesses,” added Mr Cheshire.

The SHINE training program will be delivered via workshops and online and all interested tourism businesses are invited to participate by emailing: members@ visitsunshinecoast.com

Sunshine Coast 2023 foodie festival

The region’s legendary food scene is set to be celebrated in style, from Caloundra to Coolum and Buderim to Beerwah, The Curated Plate festival will feature more than 100 events from over 300 local producers and suppliers.

The festival will run for ten delicious days from July 28 to August 6, involving 52 local businesses and event organisers.

Signature events on the program include the Sunshine Coast Asian Food Festival, MooloolaBARS, a one-day beer and beverage event across Mooloolaba venues and bars, and a free, family-friendly ‘From Paddock to Curated Plate’ event.

The festival will focus on the region’s outstanding local produce, sustainability and craft beer. Indigenous food experiences will include a Taste Native Australia dinner and a Bush Tucker by the River cruise organised by Saltwater Eco Tours.

The Food and Agribusiness Network (FAN) will present the CRAFTed Food Tourism Conference, as well as hosting a Meet the Makers event to provide industry members and the general public with the opportunity to taste and talk about the Sunshine Coast’s extensive collection of fine foods. This year’s festival will be even more accessible for interstate and regional visitors, with new airline, Bonza, bringing 13 additional direct services from state capitals and regional centres to Sunshine Coast Airport. Bonza joins Qantas, Virgin, Jetstar and Air New Zealand in servicing Sunshine Coast Airport directly.

Images courtesy of Visit Sunshine Coast

GOLD COAST NEWS

Destination Gold Coast continues to cement itself as the destination for Australian medical conferences as it prepares to welcome the country’s biggest medical student conference, Australian Medical Students’ Association’s National Convention in July.

Now in its 64th year, the largest student-driven conference in the world, the Australian Medical Students’ Association’s (AMSA) National Convention will welcome over 700 medical students from across the country and New Zealand to experience inspiring academic speakers, an exhilarating social program and professional networking opportunities all whilst enjoying some of the best experiences the Gold Coast has to offer.

World-class medical practitioners are investing in the Gold Coast as a global leader in health and medical science who will be speaking to delegates include Neuroradiologist Dr Hal Rice, disability advocate and 2021 Queenslander of the Year Dr Dinesh Palipana OAM and Dr Ben Bravery whose survival against colorectal cancer empowered the start of his medical career.

Destination Gold Coast’s Head of Business Events Selina Sinclair said 16 percent of all business events in the medical and health industry in 2021 were held on the Gold Coast, with an average economic impact of $25 million.

“Although this is a valuable short-term boost to our visitor economy, it’s the long-term benefits beyond tourism that increase the overall value of these events,” said Ms Sinclair.

“It’s our world-leading technology, innovation, advanced research, and robust health system that makes the Gold Coast the obvious choice for those studying or working in the health and medical sectors.”

Convenor of Gold Coast AMSA National Convention 2023

Albertine Tran said the Gold Coast was perfectly placed to host the convention and is excited to share Australia’s favourite playground with students from across the nation.

Doctor, Lawyer, Researcher and BE Connected Gold Coast Ambassador Dinesh Palipana OAM said the forum connects some of today’s leading practitioners with tomorrow’s next generation of professionals.

“The theme for 2023 is ‘The Coast is Clear’ which invites delegates to reflect, advocate, and voice their ideas and opinions about the current and future of medicine in an open, safe, and inclusive space,” said Dr Palipana.

AMSA is the peak representative body for Australia’s 17,000 medical students.

The convention will be hosted by a group of 20 local volunteer medical students from Bond University, Griffith University and the University of Queensland.

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Be like Nick.. Make the move

" I f I c o u l d g i v e R e s l y s u p p o r t

6 s t a r s I w o u l d - t h e y a r e s u p e r

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R a t e a n d r e s t r i c t i o n s m a n a g e m e n t i s s i m p l e t o u s e a n d e f f e c t i v e l y d e s i g n e d - w e u s e m u l t i p l e

P M S ' s w i t h i n o u r g r o u p , R e s l y i s b y f a r t h e b e s t a c r o s s a l l i n t h i s s p a c e "

N i c k - S p i c e r s R e t r e a t s

The latest data from the National Visitor Survey confirmed The Whitsundays is the place to stay. The region delivered more records in the first NVS report without any pandemic restrictions, the records were achieved in the interstate visitors and the number of nights stayed categories.

Visitors from New South Wales (NSW) were the highest number of interstate travellers, making up a record 176,000 of the record 341,000 travellers. The interstate market also clocked up a record 2,398,000 nights, an increase of 108 percent on 2022 data.

Commenting on the survey, Tourism Whitsundays Chief Executive Officer Rick Hamilton said these results continue to prove what everyone in The Whitsundays already knows: The Whitsundays is the best place to holiday.

“Queenslanders discovered The Whitsundays during the pandemic, and it is encouraging to see that the message is reaching the NSW market. With Bonza launching a new direct flight from Newcastle to The Whitsundays, NSW visitation is only set to grow further.

“These results once again underline the significant contribution tourism makes here. As a region, we rely on tourism for one in three jobs. We have world-class tour operators, accommodation options and businesses all working to deliver an outstanding holiday experience to vacationers in The Whitsundays, whatever their budget,” Mr Hamilton said.

While visitation from interstate reached record highs, the previous record of $1.5 billion in visitor expenditure was maintained for another quarter.

Tourism Whitsundays Chair

Julie Telford is thrilled to see record visitation from interstate markets to the Heart of the Great Barrier Reef, The Whitsundays.

“It’s fantastic to see more interstate travellers discover what a diverse holiday offering The Whitsundays and Queensland have. Queensland is such a diverse State, and travelling within its border can take you through the rainforest, outback, surf beaches and the wonderful Whitsundays by car, bus, train, plane and boat.

“The maintained visitor expenditure of $1.5 billion shows that visitors are still coming to experience the many activities and attractions available in The Whitsundays. From worldfamous Whitehaven Beach to the Great Barrier Reef and the pristine National Parks,

there is so much to experience here,” said Ms Telford.

The Whitsundays is the most tourism-reliant area in Queensland with one in three jobs directly related to tourism, and 40 percent of all visitation to the Great Barrier Reef departing from within the region.

The Whitsundays is also a firm favourite on cruise ship itineraries with 13 ships dropping anchor in March. Over 30000 people disembarked to explore the Great Barrier Reef, Whitehaven Beach and mainland attractions in Airlie Beach and Proserpine.

Unique attractions aren’t the only thing passengers are stepping off ships for, the Volunteer Cruise Ship Ambassadors are a welcome sight to guests arriving in The Whitsundays for the first time and an anticipated encounter

for returning passengers. The volunteer program is overseen by dedicated volunteers to provide a positive and welcoming experience for arriving passengers, leaving a lasting impression.

The program is unique to The Whitsundays, started by local community members in 2004, and has taken on many forms over the years and through the pandemic. Today the program consists of 35 volunteers who meet every ship coming into Airlie Beach and Shute Harbour.

The Cruise Ship Ambassadors are easy to spot in iconic blue floral Hawaiian shirts, waiting at the top of the jetty or at the bus stop, ready to greet guests with a warm Whitsundays welcome and directions to all the highlights of Airlie Beach.

Tourism Whitsundays CEO, Rick Hamilton is hugely appreciative of the work that the Volunteer Cruise Ship Ambassadors are doing to welcome cruise ship passengers to The Whitsundays.

“The welcome passengers are receiving from our ambassadors is another reason for them to get off the ship and explore The Whitsundays. Whether they are coming ashore to visit the chemist, have a meal or do some shopping, every dollar is going into our local economy.

“Our volunteers are from all industries but have one thing in common, a love of people and customer service, this is something that isn’t trainable, and we’re fortunate to have so many people who all love helping people enjoy their holidays,” said Mr Hamilton.

The Ambassadors

Images courtesy of Tourism Whitsundays

Volunteer Cruise Ship Ambassadors Coordinator, Lyn Blanche thinks the program is a great way to meet people with similar interests and expand your knowledge of The Whitsundays.

“Every time we meet a cruise ship, we’re greeting people and welcoming them, many for the first time, to The Whitsundays. A friendly welcome and help to get the most out of their time on shore go a long way when you’re visiting somewhere for the first time.

“The Cruise Ship Ambassadors program is always looking for more volunteers to join us, if you have some spare time, love The Whitsundays and would like to share that with cruise ship passengers, I encourage you to get in touch,” Ms Blanche added.

The Cruise Ship Ambassadors program is supported by Tourism Whitsundays and is always seeking new volunteers. A monthly morning tea is held for participants to catch up on the month ahead and also with each other. There are opportunities for volunteers to spend time in the Visitor Information Centre in Proserpine assisting visitors to experience The Whitsundays.

The Whitsundays Events Calendar for 2023 launched

From April 30 to November 26 various events will take centre stage in locations across The Whitsundays. Featured on sensational island locations are the Hamilton Island Endurance Series – held over multiple dates, White on Whitehaven Long Lunch by Fish D’vine – the event for those who prefer to sip champagne and eat oysters, and the world-renowned Hamilton Island and Airlie

NSW NEWS

Global megastars

Creator, writer and director of The White Lotus, Mike White, and star of the series, Jennifer Coolidge have been added to the Vivid Sydney festival program for 2023.

Mike White and Jennifer Coolidge in Conversation will

Beach Race Weeks – held in August, the waters are filled with colourful sails for two weeks. Not to miss out on the glory, mainland locations will host a variety of events including the Airlie Beach Marathon Festival – featuring one of the most scenic certified marathons, Great Barrier Reef Festival – for a fully immersive celebration of the reef and all its inhabitants, Don River Dash – for an adrenalin spiking race through the dry Don River bed, and the music festival with the best views, Airlie Beach Festival of Music.

Tourism Whitsundays CEO, Rick Hamilton believes the events held in The

Whitsundays are a significant drawcard to the region.

“Events can be the first impression some visitors have of The Whitsundays whether it’s through one of the many sporting events ranging in age from kids to adults or an event with fun for all the family such as the Great Barrier Reef Festival; The Whitsundays has something for everyone in events and holidays.

“In a region that relies on tourism for one in three jobs, it’s beneficial to the region to have these events drawing in thousands of visitors each year,” said Mr Hamilton.

Whitsunday Regional Council Mayor Julie Hall said it was exciting that The Whitsundays was now being recognised nationally as the Heart of Events. “The national and international exposure for our region from hallmark events like the White on Whitehaven Long Lunch, Don River Dash and Airlie Beach Festival of Music has lifted the profile of The Whitsundays as a must visit tourist destination.

“The wide variety of events across the year complements the incredible natural beauty, tropical islands and Great Barrier Reef experiences that the amazing Whitsundays offers.”

be an exclusive event as part of Vivid Ideas, to discuss their career peaks, valleys, and much more in a fascinating, funny, and unforgettable chat with hilarious anecdotes from their decades of experience in Hollywood.

The event will bolster an already impressive Vivid Sydney program as the festival returns from Friday May 26 to Saturday June 17 with more than 300 events and activations over 23 days.

Mike White and Jennifer Coolidge to join Vivid Sydney 2023.

Mike White, credit: Jason Yokobosky

Jennifer Coolidge, Credit Amy Sussman WireImage via Getty Image

Holmans grand opening of new premises

Holmans has relocated to Gympie Terrace, Noosaville (Level 1 253 Gympie Terrace Noosaville QLD 4566) and on Friday April 28, colleagues, customers and friends joined the Holman’s team to celebrate the opening of the stylish new office over drinks and nibbles.

What about Women In?

The “Resly Hosts Rooftop Networking Event: Sunshine Coast’s Hospitality Industry Gathers to Forge New Connections at Women In Event”

The event provided an excellent opportunity for industry professionals to come together, share their experiences and forge new connections in a relaxed and enjoyable atmosphere.

The luncheon was wellattended, with a diverse mix of professionals from various sectors of the hospitality industry present. From hotel managers to brokers, attendees shared their insights on the latest trends and developments in the industry, and discussed ways in which they could work together to create better experiences for their customers.

In addition to the networking opportunities, the event also provided a chance for attendees to learn more about Resly’s innovative hospitality technology solutions.

From booking and reservation systems to inventory and staff management tools, Resly’s suite of products is designed to streamline operations and boost efficiency for businesses of all sizes.

Overall, the event was a resounding success, with attendees expressing their gratitude for the opportunity to meet new people and gain fresh perspectives on the industry.

As the hospitality industry continues to evolve and adapt to changing consumer demands, events like this will be essential in fostering collaboration and driving innovation.

2023 ARAMA INDUSTRY EVENTS CALENDAR

Australia’s housing crisis: Build-torent is the missing ingredient

A new study commissioned by the Property Council of Australia shows levelling the investment playing field for build-torent homes could deliver 150,000 new apartments and help address Australia’s stark housing affordability challenges.

The study by EY, released a month ahead of the Federal Budget, shows a level investment playing field for build-to-rent developments could create 150,000 rental homes over 10 years, helping the Australian Government hit its ambitious one million homes housing target by 2029, and significantly easing pressures in the rental market.

The report also shows build-to-rent housing, which is relatively new to the Australian residential market, is currently worth $16.8 billion but has the potential to expand by a factor of 17, to a $290 billion sector, which would see the creation of up to 350,000 new apartments in an optimistic scenario.

Property Council of Australia Chief Executive Mike Zorbas said: “With a 79,300-home deficit to 2033, Australia needs better planning, more land supply, proper housing targets and a national strategy on build-to-rent and purpose-built student accommodation.

“The potential to create 150,000 homes over the next 10 years with just one asset class shows build-to-rent is about as close to a housing policy silver bullet as they come.

“Australia is grappling with a worsening housing affordability crisis where state governments miss their housing targets and planning systems fail to keep up.

“To offer more housing choices and affordable options to Australians, we need to tap into institutional investment in build-to-rent housing from Australia and abroad.

“More supply means downward pressure on the cost of renting and buying, and people who live in build-to-rent housing will enjoy the benefits of professionally managed properties, good locations, superior amenities and long-term security of tenure,” he said. The first-of-its-kind report found equalising the tax regime for managed investment trusts with other institutional asset classes would efficiently increase Australia’s housing supply and help those pioneers already establishing the build-to-rent sector in Australia. According to high-level financial modelling undertaken as part of the study, if the managed investment trust withholding tax was halved to 15 percent, in line with other property asset classes, three times as many build-to-rent projects would go ahead compared to a business-as-usual approach. The Australian Government would also receive a 30 percent increase in tax receipts over a 10-year period.

Compared to other countries, Australia’s buildto-rent market is new and small.

EY estimates that the current size of the build-to-rent sector in Australia is $16.87 billion (just 0.2 percent of the total value of the residential housing sector) with only 11 operating build-to-rent projects, and another 72 projects in the pipeline. The report suggests on conservative estimates, if the sector grew to just three percent of Australia’s residential stock, it could be worth $290 billion.

In the US there are more than 20 million build-to-rent housing units, representing 12 percent of the country’s total housing stock.

In the UK, the build-to-rent sector has grown exponentially in recent years from 47,000 units in 2016 to over 240,000 in 2022.

“The growth of build-to-rent in the UK and US has been strongly supported by governments at all levels welcoming institutional investment,” Mr Zorbas said.

The report makes five key recommendations including applying a 15 percent managed investment trust withholding tax rate for foreign investors, a 10 percent rate for affordable housing, allowing institutions to claim GST, promoting the sector, and addressing the regulatory barriers for domestic superfund investors.

“It’s critical that investments in build-to-rent housing need to be eligible for the 15 percent withholding tax rate, and an incentivised tax rate of 10 percent for investors that choose to incorporate the supply of affordable housing dwellings within their build-to-rent projects,” Mr Zorbas said.

“To accomplish the ambitious goals established in the national Housing Accord, the government needs to level the build-to-rent investment playing field in the May 2023 Budget,” he said.

Plans to transform Hotel Lindrum into “future-led” office space

A year after buying the site of Melbourne’s historic Hotel Lindrum, from rich-lister Robert Magid, developer Time & Place filed plans for a 27-storey office tower. The developer intends to build a landmark-grade office tower that will place the rich fabric of the heritage building firmly at the centre.

The revised plans for 26 to 30 Flinders Street propose 10,000 sqm of premium office space, clubhouse-style end-of-trip provisions, and ground-floor hospitality space, in a central hub. The project will have best practice environment and sustainability inbuilt, targeting a 5-Star Green Rating and 5.5 Star NABERS.

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Isabella Mansell

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Internationally acclaimed architecture firm, FJMT Studio, has outlined the new design vision, proposing to enhance and expand upon the existing heritage building that’s a landmark of the Melbourne cityscape. The triple-fronted Hotel Lindrum is one of the CBD’s most recognised facades, originally designed by Ward & Carleton in the early 1900s for Griffiths Brothers, tea merchants. In the 1920s, it was transformed into the headquarters for the Herald empire and later became Lindrum’s billiards centre, before being converted to a hotel in 1999. The proposed redevelopment has been carefully considered to celebrate the rich fabric of the heritage building, and respectfully add a contemporary commercial addition to sit above. The plans will ensure the existing façade is retained, delivering a heritage-grade future building that references the site’s historical significance while breathing new life into the address. The proposed redevelopment would be constructed in three key parts: the podium, lower intermediate form, and the slender tower above. The tower has been sculpted to reflect the heritage building’s features and materiality in a contemporary manner. The base and top of the tower offer a sympathetic response to the gateway site and add to the rich silhouette of the Melbourne skyline.

Sitting on the front row of Flinders Street, the light-filled office floors will enjoy generous and protected views across some of Melbourne’s icon views of the Yarra, the Botanic Gardens, art, and sporting precincts. The external design will draw inspiration from the existing bricks of the building, while horizontal frames on the tower will provide solar shading and talk to the boutique interior language of the Hotel Lindrum. Of the plans, Time & Place’s director Tim Price said: “We’re thrilled to have the opportunity to inject new life into the Hotel Lindrum and believe that the revised plans offer a dynamic and responsive design to honour the history of the site.”

Time & Place expects to commence construction on Hotel Lindrum in late-2023, with works estimated to be completed in 2026. Time & Place has been in operation for eight years. Established in Melbourne in early 2015 and expanding into Sydney later that year. It’s involved in 23 projects totalling $4.1 billion, with work spanning residential, commercial and industrial projects. Having recently acquired sites in Melbourne’s Glen Iris, Southbank and Sydney’s Alexandria.

Queensland’s Build-to-Rent Pilot Project

The Queensland Government is partnering with the development sector to deliver affordable rental housing through new Build-to-Rent developments. The state government’s Build-to-Rent Pilot Project will provide affordable and secure housing for more Queenslanders, while driving investment in the residential development sector. A targeted government rental subsidy will be provided to deliver affordable rental housing within the Build-to-Rent developments in Brisbane. Final developments will provide all residents with a high amenity rental experience, access to transport and employment nodes and premium service delivery. Pilot project - approved projects include:

• Frasers Property at 210 Brunswick Street, Fortitude Valley

• Mirvac at 60 Skyring Terrace, Newstead

• Cedar Pacific at 50 Quay Street, Brisbane. Combined, these properties will offer approximately 1200 rental apartments, including up to 490 dwellings to be provided at a discounted rent.

Gold Coast, tall and skinny tower approved

The Gold Coast City Council gave its blessing to a 30-storey skinny tower, rising 110 m above Southport Broadwater. Granton Constructions and designers Place Studio won development approval for 60 apartments and eight levels of commercial space on two tiny lots at 4 and 4A, Railway Street.

1100 new housing lots on Sunshine Coast

Approval has been granted by the Queensland Government for what has been dubbed the state’s fastest-growing residential community. Aura, a 2350 sqm urban development at Caloundra South on the Sunshine Coast, is on its way to becoming a new regional city of 50,000 people on the Sunshine Coast. The latest slew of blocks to be given the green light brings the masterplanned community halfway to its target of providing lots for 20,000 new homes. Queensland Deputy Premier Steven Miles said Aura was providing much-needed housing supply in the state’s south-east.

Hotel Lindrum

Hotel Lindrum

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Coral Sands on Trinity Beach

Sandcastles Mooloolaba

New to this industry, but well equipped with life’s experiences and the so essential business skills, Mani and Naina are looking forward to the exciting challenges of managing this lovely Trinity Beach property in Tropical North Queensland. Whilst the industry has had it’s challenges in recent times, long term confidence remains in the success and strength of the indefatigable management rights businesses model, as proven in the past.

Introducing Ben Lynn, MR Sales

Servicing the Gold Coast, MR Sales would like to welcome Ben Lynn to the team.

Graduating from one of the top universities in Australia, with a double degree in Business Management and International Hotel and Tourism Management, Ben’s passion for business and marketing led him into sales fresh out of university.

Starting as a marketing manager for a high-performing real estate agency, Ben quickly realised that his skills in communication and marketing were better used in sales. He began working as an agent, alongside some of

Gold Coasts’ top performers, absorbing a wealth of knowledge and experience. After 3 years in residential sales, his passion for business led him to make the switch to management rights.

Ben believes that hard work, clear communication, and a positive attitude are the keys to a successful sale. He prides himself on building strong relationships with his clients, ensuring constant updates and advice, even after the sale.

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Sandcastles Mooloolaba had been listed for sale intermittently for a period of four years with other agencies.

However, once ResortBrokers agents Glenn Millar and Chenoa Daniel took over the listing, the property was placed under offer within just three months.

According to Chenoa Daniel, this was made possible by employing some innovative thinking and a different marketing approach, which proved to be just what the business needed to achieve a successful sale. The prospect of a young couple bringing fresh new ideas to this tightly-held Mooloolaba space is certainly exciting.

ResortBrokers wishes to extend congratulations to both the vendors Bridgette and Charlie and the buyers Joel and Tegan.

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Calvin Bailey, Principal of Calvin Bailey Management Rights, congratulates Mani on the successful purchase of Coral Sands on Trinity Beach.

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Dolphin Heads Resort hits the right note for Lyn

By Grantlee Kieza, Industry Reporter

Lyn Ischenko was holidaying at Mackay’s oceanfront Dolphin Heads for years before she bought the management rights there in 2014. She has loved the accommodation business for as long as she can remember and reckons there are few more beautiful sights in Queensland than the one from her front lawn overlooking the Coral Sea.

“A lot of people say it looks like Fiji because it’s so picturesque and calm. We can be full to capacity and yet people will remark how it’s quiet and it seems like no one’s around,” Lyn said. “I wonder if people

look out the sea in Fiji and say it’s as beautiful as Mackay.”

Lyn’s parents were in the motel industry for a short period of about five years when they semi-retired and bought into a motel at Caloundra.

“I loved working there every time they went away on their own holiday and I was called in to do some relief jobs,” Lyn said. “I got a good idea of how the accommodation business worked and I loved the industry right from the start.”

Born and bred in Brisbane, Lyn had a career with Ergon and Energex in the electricity market and lived around Mackay for 26 years.

Then she saw what looked like a good deal and bought a leasehold on a motel in Parkes, in central NSW in 2009.

The annual Elvis Festival at Parkes was in full swing and to quote one of the King’s hits, Lyn thought “It’s Now or Never”. Immediately there was a whole lotta shakin’ goin’ on in the accommodation market in the regional city.

“They told me when I bought into the motel that there would be Elvises and Priscillas everywhere, and that’s the way it turned out to be,” Lyn said.

“Every room at the motel had an Elvis theme and the festival does such great business for the town. It all started with a couple of young guys in their early 20s who wanted to do some kind of music festival. Their parents liked Elvis, so they did some research, got dressed up as Elvis and did a concert. The excitement about the festival just grew and grew and grew so now it takes

over the whole town. I saw the motel in Parkes as a very good investment with a great rate of return. We bought at the lower end of the market and sold at the high point in 2014 and we did quite well out of that.

“The main reason I came back to Mackay is that I have grandchildren now and I wanted to be close to them and my daughter.”

Lyn had fond memories of the Dolphin Heads Resort and leapt at the opportunity when she saw the management rights were for sale.

“We always loved it here and I could see it was a good investment,” Lyn said.

“I thought there was a great opportunity for improvement and so I purchased the management rights.

“At the time the property was being run under management and the owners were very much hands-off. I don’t think hired managers have the same passion for a property as the owners of management rights who have invested so much money in the business and I could see things had been allowed to slide over time.

“I could also see the potential to increase the resort’s turnover and the great future it could have as a venue for weddings and other functions.

“It’s hard work being a resident manager but I love the position here at Dolphin Heads and I love the people who come to stay. We are right on the oceanfront. You walk out from your unit and the water is right there.”

There are 82 apartments at The Dolphin Heads resort and 51 in the letting pool.

“Weddings have become a very big thing for us here, too,” Lyn said. “We have three function areas. We have a restaurant/ bar called Salt and we have what we call the Dolphin Room, which is our formal reception area. It seats 100 or we can fit in 120 with standing room.

“We also have two smaller rooms, our beach hut right on the oceanfront and the marquee which is for a more intimate function. It seats about 30 people.

“In the season we would have a wedding every weekend and we are becoming very popular with the 40s, 50s, 60s, and 70s birthday parties. We are also doing a lot of baby showers on Saturdays. The resort is very popular and most weekends you can’t get accommodation here.”

Lyn well knows the popularity of the Mackay area as a holiday destination.

“It’s surrounded by beautiful rainforest where you can see a platypus now and then,” she said.

“At the Cape Hillsborough Nature Tourist Park, you can feed wallabies on the beach. We also have the Red Cat Adventures which takes visitors out to the Great Barrier Reef and the Whitsunday Islands. Visitors can have a fantastic time snorkelling, or when it’s the right time of the year they can go out whale watching.”

Until two years ago Lyn ran the Dolphin Heads Resort as a family concern.

“My partner Ricky and his parents helped me to run the property,” she said. “Ricky’s mum Carol worked on reception, and his father Tony did the maintenance, but they retired. In the end, we decided it was better that I ran it myself with staff to help me. I have a receptionist to help and of course great housekeepers and a maintenance person, and I lease out the restaurant.”

Lyn said anyone coming into management rights should ensure they build a good relationship with the body corporate and with the owners.

“It’s also vital to make sure that the financials of the body corporate are solid and that they have the funds to make

necessary repairs at a complex,” she said. “You also really need to be a people person in this business. It goes a long way.

“In a building like this we have a variety of guests, 82 owners and a committee of seven. It’s a big job to try to keep everyone happy.”

She said she was inspired by the Elvis festival to bring some sort of big event to Mackay that would draw visitors from around Australia and the world on an annual basis.

“We’ve got our thinking caps on trying to come up with ideas for a theme,” she said.

“The success of Elvis in Parkes shows just what can happen when a good idea takes off.”

From teach to beach: Lessons in MR

By Grantlee Kieza, Industry Reporter

Graham and Kirsty Hislop spent much of their lives in high profile education roles and less than a year into running the Markham Court apartments at Broadbeach, they are already teaching invaluable lessons about management rights.

They took over the management of the 68-unit property last August and have already doubled the number of apartments in their lett ing pool from 11 to 22.

Graham, who played for the Australian Schoolboys rugby side in 1990 before a professional career with the Queensland Reds, Australian Sevens and the Tokyo Gas and NTT in Japan, says putt ing in the hard yards early to make strong relationships with the body corporate and unit owners is the key to tackling the job of a resident manager.

Until last year Graham was the Head of the Senior School at Geelong Grammar, one of Australia’s most prestigious schools whose past pupils include King Charles, Rupert Murdoch, Kerry Packer, John Gorton, Malcolm Fraser, John Landy and Hudson Fysh, the bush pilot who founded Qantas in 1920. Kirsty worked in the Admissions Office administration at the school.

“Going from Geelong Grammar to managing an apartment complex on the Gold Coast has been a big change in career,” Graham said, “but it was also easy transferring our skill sets. “Communication is so important in this business. Like teaching, management rights is about building relationships and sett ing up systems and processes. Relationships are so important, whether it be with the lovely guests who come and stay with us or being able to build a wonderful community among the residents here or building a strong relationship with our body corporate.

Collectively it is something we cherish every day because it’s just so wonderful to go to work in a harmonious environment and have positive conversations with all the people around us.”

Graham and Kirsty Hislop

Kirsty said the couple took over the management rights at Markham Court on August 9 last year but had owned an apartment in the complex for almost eight years.

“We have always thought it was such a good place and we’ve wanted to be involved in management rights for a long time,” she said. “Our unit was in the holiday pool, and we would come here most school holidays.

“We’ve probably talked about purchasing a management rights business for 20 years and it was just never the right time. It was Christmas 2021 when we were told that the management rights at Markham Court were up for sale.

“For us it was a chance to come home to Queensland and to enter an industry we’d always wanted to be in, and to do it at a building which has so many happy memories for us.”

The couple grew up in Ipswich and Graham was a star footballer at Ipswich Grammar where his schoolboy performances resulted in Australian team selection.

He took up teaching to make a positive difference in people’s lives and the couple moved to Victoria 11 years ago, working in education at Merrijig in the Victorian high country and then at the Ballarat and Geelong Grammar schools.

Kirsty said in education their focus was always on the best interests of the school and the child.

“Now we’re thinking of the best interests of the building and the strata,” she said. “We are still promoting a sense of community but rather than a community of students and teachers we now have a community of owners and guests. And we put them first.”

Markham Court is a three-storey walk-up apartment building in the heart of Broadbeach.

“She was built in 1988,” Kirsty said, “so she’s that lovely old-style building with large apartments that have a lot of air flow because you can open them back and front.

“We also have some threebedroom apartments that are

split level which is very rare in Broadbeach. A third of the Markham Court apartments are rented, a third have owner-occupiers, and a third are in the holiday pool.

“A lot of places are losing units from their letting pools because owner-occupiers are moving in,” Kirsty said, “but as longterm owners ourselves in this building we knew what was lacking from management.

“Whenever we make a decision, we come from the perspective of an owner and how that would work. We had our holiday apartment here with the previous management, but we weren’t happy, and we

were thinking of taking it to an outside agent, that was the same story for a lot of the owners when we first took over.

“But we communicated with them, told them the building was under new management and we were very open about what we could do. They didn’t come back to our letting pool straight away because we needed to prove ourselves and it was a baptism of fire for a while.”

Graham said the couple initially worked hard on three things.

“First was front of house, offering a warm welcome for guests or anyone coming to the office. Second was housekeepingsomething we are very proud of and third was our grounds and maintenance. We work very hard around the property, just today we filled a big skip tidying up our Bird of Paradise. We have huge gardens and since August we’ve pulled out about 14 tonnes of vegetation tidying things up. The garden grows so quickly in our beautiful weather but it hadn’t been maintained and was in a state of disrepair.”

The couple have teenage children, Zen, 16, and Calypso, 15, who help in the building when school commitments allow but mostly all the work is done by Graham, Kirsty and their “fabulous housekeeping team”.

“We knew it was going to be a lot of work,” Kirsty said, “and we came in here with our eyes wide open. We want to get through a year before we decide what staffing we need.

“We’ve also worked hard to find good tradespeople because you need a fabulous plumber you need a great electrician, people you can rely on to do a good, honest job. We rely on our trades, and they are worth their weight in gold.

“We started at a very interesting time because Markham Court is going through a lot of building work, we are retiling all our toplevel balconies. It’s an expensive

exercise from a body corporate point of view but it certainly adds value to the property and to the desirability of staying here.”

What’s their advice to newcomers to management rights?

“You have to be prepared for hard work,” Kirsty said. “A lot of people think you are just getting a job where you can live at the beach and relax all the time.

“That’s not the case even though it is a great lifestyle. Graham still surfs a few times a week, but we’re also on call 24 hours a day, seven days a week.”

Graham added, it’s important for managers to demonstrate to the body corporate that they were doing a great job, and to communicate clearly with them about absolutely everything.

“I think silence creates a degree of mistrust,” he said. “For us to be open, honest and clear is the basis on which we operate.

“Before our body corporate meetings, we organise the owners to get together the night before in a social context and that spills over into the state of business the next day. Getting the owners together really enhances the building of relationships.”

The couple also extoll the benefits of being ARAMA members.

“ARAMA and especially Trevor Rawnsley and Kelley Rigby have been amazing with their input, support and encouragement,” Kirsty said.

“Managers should surround themselves with knowledgeable people, other managers, and really good tradespeople that you can rely on.

“It’s so important to work on a great relationship with your body corporate. That’s vital. I send our chairperson a report every week and we speak with him a couple of times a week.

“Our body corporate has been so supportive and it comes off the back of us being transparent at all times.”

Open, honest and clear is the basis on which we operate