Resort News - June 2023

HiRUM has created an amazing website and Logo for Toowong Villas. It is so fresh and appealing to lookers and bookers. We have had some very positive feedback from guests about how great it looks and how easy it is to book. HiRUM has been so easy to deal with and the integration went seamlessly with minimal down time because of HiRUM’s knowledge expertise. Thank you for such an awesome job HiRUM, we are so happy with our new look.

Karen Toowong Villas

The legal stuff...

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Creating magic while avoiding the worst

Welcome to the latest issue of Resort News. I pen this note during the whirlwind of mag proofing week with more deadlines looming.

Despite occasional chaos, there are moments of triumph and accomplishment. A reader’s feedback can breathe life into an article or inspire us to explore pressing issues, reminding us why we put up with the rollercoaster ride of deadlines and temperamental technology. It’s like finding treasure in a storm.

As you read this, I imagine you too are juggling, with bookings, check-ins or check-outs, your days a whirlwind of cleaning, gardening, and urgent repairs. Maybe you’re taking a break, resting weary feet after a long

and exhausting day? Perhaps, like me, you’re sipping coffee or unwinding with a well-deserved 5 pm tipple after managing demanding customers or mischievous employees. Hopefully, you’re not grappling with how to reply to an unfair online review or seething over a guest’s petty complaint.

The best resort managers and management rights business

owners are certainly true masters of multitasking. The art of it all lies in maintaining your cool while juggling countless tasks. It’s about managing the unexpected alongside the routine, creating magic while avoiding the worst that can happen.

It’s like juggling flaming torches, but instead of torches, you have guests, staff, suppliers, and a property to maintain.

Yes, there will be days when everything falls into place and you feel like a superstar, and days that make you question your life choices. But fear not, you are not alone in this crazy journey of management rights so open your monthly industry mag, sit back, and relax. This month, we delve into the thorny issue of body corporate disputes that can escalate into

nightmarish (not to mention) very expensive wars and we’ve got Yoav Tourel sharing insights on finding long-term solutions to short-term problems. We shine a spotlight on the marvellous Coral Beach Noosa Resort and the fantastic Rimini Holiday Apartments, where dynamic resort managers Liam Kennedy and Claire Markwell are busy working their magic, and learn more about the Suncoast Resort Group syndicate.

As for next month, we plan to blow your mind with a special report on the potential use of AI in management rights. In the future do you think we can look forward to having a juggling AI robot assistant who is never mischievous?

Stay tuned, keep smiling, and embrace the MLR journey!

Mandy

Mandy Clarke, Editor editor@accomnews.com.au

The high price of border wars in strata

By Grantlee Kieza, Industry Reporter

Neighbourhood disputes can quickly turn into ugly border wars that leave devastated casualties on each side of the fence.

There are no residential disputes quite like those in strata complexes, where neighbours not only live side by side, but often on top of each other.

Strata disputes can quickly escalate into pitched battles that become emotionally devastating and financially crippling.

Gold Coast couple Nick and Soula Hronis have seen a difference of opinion in a strata building turn into a legal minefield.

They recently told the Channel 9 program ‘A Current Affair’ that they were on the brink of losing their home after one of Australia’s ugliest body corporate wars.

The couple says they thought they had all the necessary approvals to build the balcony on their apartment

at the Malibu unit complex at Mermaid Waters.

The long-running dispute has cost the shattered couple half a million dollars after they decided five years ago to upgrade their small balcony to a much larger one.

One of Queensland’s leading property lawyers Frank Higginson, from Hynes Legal (who is not involved in the case) says the problem with many strata disputes is that “people are emotionally invested in the outcome” and unable to step back to look at the cost of the bigger picture.

He said anyone thinking about legal action should

first calculate the cost of it - financially, emotionally and physically.

“For many people their unit is the only property they own so they’re too emotionally connected. In a business sense, if two parties don’t like each other they don’t have to deal with each other ever again –it’s the same with contractors and service providers. But in a strata situation you are tied in with other people whether you like it or not, which means that you’re constantly having to deal with them.

“My experience in seeing some of these types of longrunning and costly disputes is that in the end the people

aren’t even fighting over the thing that caused the dispute in the first place.

“The dispute becomes a manifestation of something else that has gone wrong along the way, and which probably wasn’t even a legal thing.”

Mr Higginson said to avoid costly court battles, people in dispute must step back and look at the problem objectively.

“I warn clients that if a stoush goes to court they have to expect to spend whatever it might be. In the long run is it really worth that?

“When people are presented with what the costs could be, they usually decide it’s not worth pursuing. The people who have a ‘win at all costs’ attitude are the ones who suffer.

“With long running disputes the worst thing isn’t even the money, it’s the emotional cost that can take its toll over years. It can have a terrible effect on people’s health. They wake up at three in the morning thinking about the case and they have to be constantly involved.

“That’s not good for anyone’s mental health.”

© Adobe Stock, stock.adobe.com

© Adobe Stock, stock.adobe.com

Mr Higginson said independent advice could often rescue potential litigants from disaster.

“It doesn’t even have to be a lawyer. Just someone who can talk to people involved in these strata disputes who can say ‘step back and ask yourself is this legal fight that you are entering into really worth it?’”

In June 2021, a magistrate ordered Nick and Soula’s balcony to be removed and appointed an administrator to oversee that process.

In an email the administrator said, “an appropriate amount to begin and substantially progress the administration (if not complete it) would be $16,000.”

Mr Hronis, who is on a disability carers pension, paid that amount within six weeks of the order being made.

But he told ‘A Current Affair’ a quote was obtained from a licensed builder, and the cost of the work increased dramatically to $100,000.

The administrator told a court that Mr and Mrs Hronis displayed “persistent and pervasive recalcitrance” in accepting the works needed to be done.

There is no suggestion that the administrator did anything wrong, but with interest added, the bill is now a whopping $267,000 from the administrator alone, with a court ordering an additional $52,000 be paid to the other party’s lawyers.

Nick and Soula have engaged five different lawyers and taken out a mortgage to pay their legal fees, leaving them with a total bill of $500,000.

Chris Irons, the former Commissioner for Body Corporate and Community Management, who now runs his own strata mediation firm, Strata Solve, says the balcony dispute at the Malibu complex has been one of the most extreme examples in Queensland of a body corporate dispute gone wrong.

Mr Irons, a qualified mediator, said the commissioner’s office should have “far more resources to intervene” in cases.

“In an ideal world, it would never get to this point,” Mr Irons said, “everyone would try to get it sorted out to save the incredible drain of time, money and stress.”

He said once things get as bad as they have at the Malibu, “there are few winners, except for lawyers”.

“You just don’t wake up one morning and decide your body corporate needs an administrator,” Mr Irons said, “it happens over several years so at sometime within that period of several years you would think there would be an opportunity to arrest the slide and claw it back.”

He said he would like to see the commissioner’s office have powers and resources to step in at a building “when they see things going astray”.

“There might be a few calls or a few disputes in a short period from a particular building and you can say ‘OK this place is starting to sound like bad news. Let’s offer some assistance’. That might be as simple as a phone call, ‘are you guys OK here?’

“In really bad situations where it looks like things are starting to get out of control maybe some resources and powers should go to the site to bring parties together and say, ‘Look if this keeps going it’s going to get bad, so what can we do to stop it?’”

Mr Irons said he would advise all parties in a dispute to get in early and try and fix it before the problem festers.

“Emotion makes things snowball in these sorts of disputes and they can get blown out of all proportion,” he said, “and you wake up two years later looking at huge legal costs and

you wonder how it happened and how did it get to this?

“Once you let these disputes fester there’s a very high likelihood that another problem will come in on top. One thing leads to another and then another; so, my advice is to try and nip it in the bud and avoid going to the commissioner’s office and applying for orders.

“You’ll be saving costs, time and toil. Look at options such as facilitated discussions, mediation, and town hall meetings. I’m very fond of saying that you don’t need to like the people on the body corporate, all you need is a minimum working relationship to take it forward.

“If you need someone’s help to do that; if you need a process to help you do that, it’s still a much better and cheaper way than going to court.”

Nick Hronis told ‘A Current Affair’ that when he built his balcony, he had body corporate approval from the previous owner.

“I had approval from the Gold Coast City Council. I had an approval from a building certifier. I had approval from a structural engineer,” he said. Some of those claims are in dispute, though, and the long-running legal battle eventually found the balcony was illegally encroaching onto common property.

Soula Hronis said the couple would never have pursued the matter if they expected it to cost even a tenth of what it has so far. Bankruptcy proceedings are now underway to recover the debt.

Mike O’Farrell, the director of MLR Services and an executive with more than 30 years in strata buildings, said the balcony dispute was “very complicated” and involved points of the law that “unfortunately now have escalated into thousands of dollars being spent and for what?”

“There will not be a winner here,” Mr O’Farrell said.

“I will say though if the owner is saying he had all the appropriate approvals it seems very unfair he would be placed in this position. The problem of course is the law does not recognise ‘fair’. “Whenever you go into a courtroom the meter is running and on and on it goes.”

In 18 months of ongoing delays and disputes, the administrator was not able to remove the illegal balcony so earlier this year Mr Hronis stepped outside the proper process and had it taken down himself at his own cost of $3500. A new dispute has now emerged over whether it was done correctly without causing structural problems to the building.

The chairperson of the Malibu Body Corporate told ‘A Current Affair’ that “The only one who has not complied with the law is Mr Hronis. Every other owner has complied with the law.”

ARAMA CEO Trevor Rawnsley has seen many similar disputes over the years, and they rarely end well.

“Sometimes people get bloody minded about issues,” he said. “It’s a little bit like the Black Knight in Monty Python. He gets his arms cut off, and then loses his legs, and he still wants to continue the fight by biting their ankles off.

“Some people just don’t know when to quit.

“There was a fight in Noosa between two lawyers over a balcony and lack of approval, and it turned into a fight that cost more than $100,000.

“There was another case over levy arrears. The body corporate took the matter to court. The levies in arrears amounted to $1100 but the bill at the end of the case was $120,000.

“I’ve seen a management rights dispute over a $35,000-a-year gardening agreement turn into a battle that cost $930,000.

“Most of the time these things escalate on emotion rather than common-sense.

“Some people are just not suited to living in strata. If you can’t get along with people who have a different opinion, strata is not the place for you.

“Some people become very adversarial in strata situations because they see their shelter – a basic human need – being attacked and they forget even what they were arguing about in the first place.”

He gets his arms cut off, and then loses his legs, and he still wants to continue the fight by biting their ankles off

Chris Irons

Finding common ground to dance on

It doesn’t have to be that way though, and a good resident manager will strive to find the common ground on which everyone can agree.

We know you can’t please everybody all of the time, but we can try to please most people most of the time.

By Trevor Rawnsley, CEO, ARAMA

Common ground. It’s an important area in any strata scheme, and it’s also the most important area in the relationships that decide whether a Management and Letting Rights (MLR) business can succeed.

A community title scheme is like a magnifying glass of society. It can amplify so many of the good things we enjoy – good friends, beautiful views and wonderful communal amenities in locations by the beach or by a golf course that many owners could not enjoy if they were buying a suburban house.

But community title strata schemes can also magnify problems, and finding common ground with owners, tenants, and bodies corporate is essential.

Creating harmony, nipping conflict in the bud and finding an area of agreement between all parties in a scheme is essential for any resident manager who wants to minimise problems in their business. Many of our resident managers are faced with the ‘Highrise Hitlers’ or the ‘Condo Commandos’ who end up on committees. Almost everyone in the industry has met them. The saying, “Every village has an idiot and some have more than one” also applies to Community Title Schemes. Our advice is to look in the mirror and make sure that you’re not it.

Sometimes in strata you have to live alongside people who aren’t suited to living in that environment because of their personalities. It would be great for all resident managers if the committee was populated by people who

were just happy to volunteer their time to help others.

But as our former Prime Minister Paul Keating famously once said: “In the race of life, always back self-interest” because it is trying to win every time.

A lot of people who cause conflict in strata schemes are angry ex-middle managers looking to assert their authority over others.

I’ve seen former school teachers on committees who think they are back at work giving orders in the classroom, and they often bring an inflexible attitude to the rules, with no deviation or compromise allowed.

“Eyes and ears to the front”. You get the same thing with some ex-police officers. If someone breaks the rules, there’s great conflict to be had and consequences to follow.

Resident managers must realise that good relationships with owners, and body corporate committees are crucial to the success of an MLR business, and they must also realise that prevention is much better than cure and much less expensive.

Someone once described a good resident manager as being “20 percent technician and 80 percent politician”. Building relationships and focusing on maintaining them is 80 percent of what a resident manager needs to do, 20 percent is keeping the place clean and tidy and putting out the bins.

Common ground is the key to a scheme running harmoniously because if a resident manager tries to run their business out of their lawyer’s office it can quickly become a very expensive business.

Disputes in body corporates can shatter lives, because like angry infections they can fester, become toxic and then burst in a horrible explosion.

Some people have a “win at all costs mentality” and in strata those tensions can multiply with the stress of living cheek by jowl,

Creating harmony, nipping conflict in the bud and finding an area of agreement between all parties in a scheme is essential

or even on top of a neighbour with whom you are in dispute.

A wise old Greek man who I respect a lot, once told me that “It is better to have a bad year in business than it is to have a bad neighbour”.

There are some who feed off tensions and thrive on disputes, encouraging clients in strata communities to fight as hard as they can and for as long as they can, all the time with the legal meter on and running up costs. I have heard one lawyer in particular boast that he will “fight hard for you until your very last dollar”. In some cases, the committee will care less for the legal costs as they are often fighting with other people’s money.

There have been some shocking examples in community title schemes where minor disputes have escalated way out of control.

There was a case on the Sunshine Coast between an owner and a committee over an unpaid $1100 levy debt that turned into a court case with over $100,000 in legal fees. Both the owner and the committee were liable for huge costs that had accumulated on their behalf.

Then there is the case that has been featured on ‘A Current Affair’ of a unit owner building a balcony and falling foul of the body corporate. It has so far cost that owner $500,000. The trouble could have been nipped in the bud for a few thousand dollars at the start of the dispute.

There was another case over a $35,000-a-year gardening agreement between a body corporate and a resident manager on the Gold Coast that ended up accumulating $930,000 in combined legal costs. Even though the resident manager was victorious there are really no winners in matters like these.

In strata communities, residents who have previously lived in a suburban house find that noise is amplified in a scheme. If someone has a party everybody hears it; even someone dragging furniture across the tiles in the upstairs apartment can spark a blazing row.

Body corporate committees are meant to maintain and enforce the schemes by-laws which are meant to govern the common area but the by-laws are sometimes unreasonable and therefore unenforceable.

Committees are sometimes populated by people who have secret and hidden agendas.

Fortunately, most people live and work comfortably and harmoniously in strata and often do so because they know how to turn the other cheek and find the common ground. They don’t have to viciously defend every slight; every piece of paper that blows across the driveway is not the fault of the resident manager. They also realise that they won’t win every argument and that they shouldn’t start arguments in the first place and should instead seek common ground.

At the moment I’m working on developing a half-day training masterclass for experienced managers that focuses on building and improving relationships in a strata title context.

It’s one of the most important skills that a resident manager must have.

A good resident manager can also be a bulwark in resolving and avoiding conflicts between other parties within a scheme or between a landlord and tenant. I took a call recently from a member who said the landlord wanted her to increase the rent by $300 a week on his unit, that’s more than a 40 percent increase.

The resident manager told the owner that the people in the unit were really good tenants, they never skipped payments, they looked after the place and they never caused trouble. But the landlord had been watching the news and saw that there were desperate people out there willing to pay whatever it took to find somewhere to rent. The landlord wanted to get rid of the good tenant they had in order to try and make more money from tenants they didn’t know.

In cases like this the resident manager has to find the common ground and manage the expectations of the landlord who wants more money, but at the same time manage the expectations of the tenant who doesn’t want to pay more, let alone 40 percent more.

In this case the resident manager explained to the landlord that sometimes getting in a new tenant that we don’t know to replace a good existing tenant that we do know and trust, was often more trouble than it was worth. The resident manager, with agreement from the landlord, sought a little more

rent from the existing tenant and both the landlord and the tenant were happy with the outcome. In this case the resident manager helped both parties find common ground.

The resident manager has the landlord as a client and the tenant as a customer and

she had to dance with both without treading on their toes. If a resident manager can find the common ground to dance on for all occasions, then living and working in a community title scheme will be a much more pleasant experience for everyone. And it will cost a lot less time, money and stress.

Shortcutting the assignment process

Be proactive when it comes to the assignment process

Obviously, an approval at committee level will be dealt with much quicker than an approval required at a General Meeting of a Body Corporate/ Owners Corporation.

By Col Myers, Small Myers Hughes

Different states have different requirements when it comes to obtaining body corporate consent to the assignment of Building Management Agreements and Letting Agreements.

Different states: Different requirements

Effectively, the assignment of Building Management/Caretaking Agreements and Letting Agreements can be dealt with at Committee level in Queensland, Victoria and Western Australia. However, the New South Wales legislation requires that any assignment of a Building

Management Agreement must be approved at a General Meeting of the Owners Corporation.

Speeding up the process

When notifying a body corporate of a sale of management rights, you can shortcut the process by ensuring that you provide the strata manager and committee upfront with everything they will possibly require to consider and grant that consent.

All Caretaking/Building Management Agreements and Letting Agreements (and the Queensland legislation) require that the body corporate act reasonably when deciding whether to approve or not approve a buyer. Generally, this comes with a requirement that the incoming manager must be respectable, responsible, financial and capable of performing the duties.

Benefits:

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In recent years, we have seen an increased focus by bodies corporate in looking into the suitability of incoming managers. Most are now fully investigating the background of proposed assignees and want detailed information and checks done before they will grant consent. Consequently, you can save yourself a lot of time and money by providing everything in one go to the committee.

Checklist

The following will satisfy 99 percent of a body corporate’s requirements for an assignment:

• a résumé for each purchaser (or each director of a purchaser company), detailing their respective competency, qualification and past experience;

• evidence of the financial standing of the purchaser (or each director of the purchaser company) for instance, an Asset and

Liability Statement. Note however that a Queensland tribunal member has stated that a copy of an incoming financier’s letter of finance approval is sufficient evidence of the proposed manager’s good financial standing;

• at least two character references for each purchaser or director;

• at least two business references for each purchaser or director;

• a detailed business plan, explaining how the new manager proposes to manage the scheme on a day-to-day basis (for example, its structure, management style and approach, staffing, who will be responsible for the day-to-day operation and management of the caretaking and letting business, who are or who will be licensed to conduct of the letting business);

• a copy of the purchaser’s real estate or letting licence, or evidence of completed modules required to obtain the licence; and

• a police check for each purchaser or director.

For most agreements, providing the above should be more than enough to meet your obligations to the body corporate but also check your agreements for any other peculiar requirements.

Conclusion

Be proactive when it comes to the assignment process. The worst thing you can do is drip feed information to the committee, as they have no obligation to approve any assignment until they have all the necessary information to assess the proposed assignee.

THE TRUSTED PMS SOLUTION FOR YOUR BUSINESS MAKE THE SWITCH

Dealing with urgency

in dispute applications

This article focuses on interim order applications and briefly discusses the other two categories. If your matter does not fall within these categories, there should be no expectation of priority and the normal avenues for lodging a dispute application would apply.

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

Our clients regularly ask how they can quickly resolve what they consider an ‘urgent’ situation.

While we acknowledge there is a considerable amount of stress involved in body corporate disputes (often intensified by the proximity of residents to one another) no general process exists to consider ‘urgent’ applications. However, circumstances may warrant certain matters being fast-tracked.

This article explores the limited situations when this may occur, specifically:

• interim order applications;

• emergency expenditure applications; and

• expeditable applications.

Although it is not the role of this office to provide legal advice about the type of application that should be lodged, this article will assist you to understand your options and to avoid common mistakes that can result in unnecessary delays.

Interim order applications

An interim order is a temporary order to urgently protect rights and interests until final orders are made.

Many of the interim order applications received by our office fall short of the necessary requirements to be considered for adjudication. The reality is that approximately 46 percent of interim order applications lodged do not actually progress to adjudication. They are either withdrawn by the applicant or rejected by the commissioner. of those interim order applications that do progress to an adjudicator, approximately 50 percent are dismissed.

A further caution against lodging interim order applications without understanding the

requirements is that they attract a larger filing fee. If an interim order application is lodged and it does not meet the requirements, the fee will not be refunded.

The statistics above should be an important reminder to ensure you satisfy all the necessary criteria (outlined below) before lodging an interim order application.

Urgency

The interim order you are requesting must be genuinely urgent.

If the basis for the urgency is simply your preference for a swift resolution, this would not be enough to warrant an interim order being made. You must be able to demonstrate the gravity of the circumstances, or any serious legal questions raised.

Temporary order

The interim order must also be of a temporary nature.

This means that granting the interim order should not resolve your dispute. Rather, it should only give temporary relief until final orders are made. If the interim order you are seeking would provide the ultimate resolution for your dispute, lodging an interim order application would be the wrong option.

Related final order

As interim orders and final orders

are connected, there must be a final order that relates to the interim order being sought.

Essentially, an applicant must seek two separate orders:

• a temporary interim order; and

• a related final order.

The final order would provide closure for the overall dispute.

Self-resolution

You must provide evidence of your attempts to resolve the matter internally. These attempts to resolve the issue must be made before the application has been lodged with our office. If you lodge an interim order application without showing you have asked the respondent to do (or in many cases, not do) whatever it is you are urgently seeking in the interim, your application may not progress.

Possible scenarios where an interim order application may be warranted. The two scenarios on the opposite page provide examples of circumstances that may warrant an interim order application.

Emergency expenditure applications

Where a body corporate proposal involves spending that exceeds the committee’s spending limit, it typically needs to be approved by the owners at a general meeting.

Scenario 1

An owner named Bob is concerned about improvements to the building proposed by the committee in the agenda for the upcoming annual general meeting. Although the cost of the work is more than the major spending limit for the body corporate, Bob notes that the body corporate has only obtained one quote for owners to consider.

After doing some research, Bob believes that the same works could be undertaken at a significantly reduced cost to the body corporate.

Bob has expressed his concerns to the committee in writing, but they have told Bob that if the motion passes at the general meeting, the works will commence immediately.

It may be possible for Bob to seek an interim order to stop the works temporarily until a final order is made by an adjudicator.

If Bob wishes to seek an interim order, he should write to his committee to request that they not take any action to implement the motion until the final order is made.

Depending on the size of the scheme, the preparation associated with holding a general meeting can be both timeconsuming and costly. A general meeting must also be held at least 21 days after notice of the meeting is given to owners.

The combination of these factors may create considerable obstacles for a body corporate where time is of the essence for adopting a proposal. The legislation provides an exception if an adjudicator determines the spending is necessary to meet an emergency and makes an order authorising the spending.

For example, in the matter of Seahaven at Trinity [2019] QBCCMCmr 176, there was a leak in a water pipe on common property that had caused damage under the driveway and had the “potential for a structural collapse of the car park/driveway area”. After considering different factors, the

adjudicator ultimately determined there was a genuine emergency and authorised the spending. Simply stating the normal processes prescribed under the legislation are too inconvenient would not be sufficient grounds for an application of this kind. The onus will be on the applicant (normally the body corporate) to demonstrate there is a current, genuine emergency requiring the body corporate to take direct action.

When lodging an application of this kind, at least one quote should be obtained for the expense and certain details of the work to be carried should be provided, specifically, a description of the work, the date of commencement and the estimated timeframe.

Expeditable applications

Certain routine or urgent matters may be expedited by the

Scenario 2

The body corporate has made recent changes to an area of common property that Linda, an owner, believes could pose a safety risk to certain residents. Linda has asked the committee in writing to put some temporary safety measures in place until they can resolve the issue properly. The committee has rejected Linda’s request.

It may be possible for Linda to seek an interim order, so the body corporate puts certain temporary safety measures in place until a final order is made by an adjudicator.

commissioner and adjudicators. Asking for a matter to be expedited because of a preference for it to be dealt with quickly, is unlikely to result in it being expedited. Some more common types of applications that may be suitable to expedite include:

• return of body corporate property;

• access to body corporate records;

• change of the financial yearend date for a body corporate.

Importantly, even if a matter falls into one of the above categories, it does not guarantee it is expedited. The onus will be on the applicant to provide clear grounds supporting why the matter should be expedited. Whether or not a matter is ultimately expedited will depend on the nature and circumstances of the application each time.

Tips for lodging these types of applications

When lodging an application that falls into any of these three categories, we suggest that you clearly identify the type of application you are seeking.

While there is a specific section that must be completed in the adjudication application form (form 15) when seeking an interim order, there are no specific sections where you can state why it should be expedited or for emergency expenditure applications.

If you are posting a hard copy of your application form to our office, we recommend including an additional cover letter highlighting the type of application sought. Alternatively, if you are sending your application form via email, you should include a clear request in the body (and possibly also the subject line) of the email.

Given the urgency that usually accompanies these applications, taking these

small extra steps is a means of ensuring our office is aware of what you are seeking from the start.

We hope this article has clarified the three different paths that are open to you if you believe you have an urgent matter. You must decide which of these options (if any) is most suitable for your application. Having a clear understanding of the available options and relevant criteria will help you to steer clear of the common

Applications may be expedited in various ways. Where there is no actual dispute (for example, seeking to change a body corporate’s financial year-end date) an application can be referred directly to an adjudicator for a declaratory order without asking for submissions.

Other ways of expediting matters may include:

• adjudicators prioritising certain applications over longer-standing ones;

• the commissioner limiting the period for making or replying to submissions (while ensuring procedural fairness remains the primary consideration); and

• the commissioner refusing requests for an extension to submission or reply periods where there are insufficient reasons for the request.

pitfalls associated with these kinds of applications.

For further information see:

• Practice Direction

16 (interim order applications);

• Practice Direction 18 (emergency expenditure applications);

• Practice Direction

19 (expeditable applications)

© Adobe Stock, stock.adobe.com

Honouring those who contribute

By Laura Bos, General Manager, SCA (QLD)

For most of its life, the strata industry has been a small, tight knit community. Strata is built on community and the relationships formed within that. The essence of that closeness is still present; however, we are much bigger than we once were. As SCA (Qld) grows and moves into our 40th year, we believe it is important for us to honour our past and those who have contributed over the decades to get us where we are today.

Plus it’s important that we highlight the depth of experience that exists in strata and is supporting the growth and development of strata in Queensland.

With that in mind, SCA (Qld) is pleased to dedicate this month’s Resort News column to two of our new Life Members - Con Iconomidis and Cathy Pashley. These are two people with decades of experience and support for our sector and it is our pleasure to honour their contribution.

Con Iconomidis

Whilst it is obvious throughout my chat with Con that he knows his stuff when it comes to insurance, the passion rises in

his voice when he talks about the relationships he has built and giving back to the strata industry and community that has given him so much.

Con says that fellow SCA (Qld) life members Kerri Anton, Colin Archer and Simon Barnard are some of his closest friends, whilst he counts Peter Cassels as his oldest continuing friend, and the first person he met in strata. Con credits Kerri, Col and Simon for teaching him an enormous amount about business and life and their lessons to him have been instrumental in driving his own desire to pay it forward and bring new people into the industry.

Con has taken a very personal approach to bringing people

in the industry by having fi ve daughters, four of whom work in strata or the insurance industry! Illiana works at Direct Insurance Brokers, Christina works at BCSystems, while Karli and Stacey work with Con at SCI. Wife Carla has also dipped her toes working at Hartley’s Body Corporate and has a background in sales and insurance. Daughter Stephanie Works in HR at a pharmaceutical company but Con still loves her despite her aversion to strata. Con’s appreciation for his family is not trivial, it is the cornerstone of his life.

With over 20 years of contribution including helping fundamentally change the lives of thousands of people in Queensland’s North, Con was an obvious choice for SCA

(Qld) life membership. Anyone who saw Con on the night he was awarded life membership knows just how passionate he is about this sector. The genuine surprise coupled with the outpouring of emotion was atypical of a guy who is generally quiet and driven by service. But it was well deserved and simply reflected a lifetime of service. Con describes himself as a simple man, but perhaps a better description is that he is an uncommon, common man. He is a man who does not seek adulation or applause, but considers his highest purpose to serve others, take care of his family, and be a great friend. It is this simple philosophy that has led to an exceptional life, one very worthy of SCA (Qld) life membership.

Cathy Pashley

Cath’s sense of camaraderie and feeling absorbed in this industry led her to become a consistent instructor of new body corporate managers. Cath’s already warm demeanour brightens even further when she discusses this aspect of her service to SCA (Qld).

“I just love watching the student in the room who is enthralled;” she pauses “I can tell they are set for a long career in our wonderful industry, and it gives me a unique sense of joy I can’t really get from anything else.”

Those instructed by Cath over the years know how unforgett able she can be in front of a microphone.

Cath’s own business journey has been unique and intertwined very strongly with friends and family. Cath’s daughterin-law Anna is her personal assistant, and her cousin Louise is her Office Manager.

After buying out her siblings in 2020, Cath and husband Huw sought to elevate the businesses using Cath’s patented brand of vivacious energy and Huw’s lateral thinking. They certainly did this and proceeded to winning the Small and then

Con Iconomidis

SCA (Qld) is pleased to dedicate this month’s Resort News column to two of our new Life Members

Medium Strata Management Business Awards from SCA (Qld) in quick succession.

Cath, never one to rest on her laurels, decided that having built the business up and achieved excellence she wanted to be part of something bigger and partnered with the Bright and Duggan Group in 2022. She’s proud of being part of this outstanding brand and also the point of diff erence she and Huw bring.

Cath describes how she met Huw fondly, and it again shows just how important having a tight circle is to this incredible woman. “I met Huw first at my sister’s wedding some 30 years ago, I used to see him from time to time at her place and over time we forged a deep friendship and connection. He is a huge support to me, and we make a formidable team.” This deep connection has worked in business and in life.”

Despite her successes, Cath is modest in her demeanour, and you can tell what she loves most is elevating others. She

bursts with pride as she talks about her three now grown children, Andrew, Cameron, and Emily, who are all business owners or managers, with Cameron devoting his spare time to helping enhance the use of technology within Cath’s business also.

Anyone who saw Cath receive her Life Membership, or who has dealt with her in any small capacity knows she is a woman with great love for the industry. Cath is suited to strata like a turtle to its shell. She is personable, high energy and loves finding solutions to challenges.

Cath loves being able to “contour the legislation to solve people’s problems,” as she puts it. It’s this determination to be solutions focused, inspire others and seemingly find a conductor for her boundless energy that has led to decades of personal and professional success in our industry, and we welcome her with open arms to life membership of SCA (Qld) our passionate Pashley.

Cathy Pashley

Introducing Yoav Tourel: Finding long-term solutions to short-term problems

By Grantlee Kieza, Industry Reporter

This month, Resort News caught up with Yoav Tourel, the Temporary Board Chair of Directors at ASTRA, the Australian Short Term Accommodation Rental Association. He is also, the Managing Director for the Australia-Pacific region of Guesty, a leading property management platform for the short-term rental and hospitality industry.

Passionate industry professional Yoav is very invested in the success of the short-stay sector, so let’s get to know him a litt le better... Israeli-born Yoav is a father of four who says he came to “this wonderful country almost 20 years ago” thanks to his wife Maayan.

“She’s an Israeli as well,” he said. “She came to study veterinary science at Melbourne University because Australia is one of the best places in the world to study it.

“We have four children, quite a team! I have a daughter who has just started high school and the other children are ten, seven, and fi ve.” He joked: “I like to say that having four children is an economy of scale without the economy.

“My work relocated me to Sydney almost 12 years ago and we’ve been here ever since.

“My background is actually in advertising and media. I was born and bred in an advertising agency before making the move to the digital or ad tech world.

“Four years ago, I was involved in ad tech for an Israelibased company when I got a phone call from Guesty. I’m working for them now within the property tech space.

“We basically started the activity of Guesty here in Australia, so it was a case of building a team, working with clients, and bringing all their needs to our headquarters and developing solutions accordingly.”

Last year Guesty also acquired the Australian property management soft ware company, HiRUM, and the Spain-based vacation rental soft ware company, Kigo, bringing thousands more customers to the Guesty family of product solutions.

HiRUM Software Solutions, based on the Gold Coast, became a leading tech player in Australia’s tourism sector. The company made its name with both small and large hospitality operators including prestige brands Palazzo Versace Gold Coast, Wyndham Hotels & Resorts, Ramada by Wyndham, and Grand Mercure Hotels & Resorts.

For the last two and a half years Yoav has been a board director at ASTRA, and for the “last four or five months” has been the acting chair, and right now, Yoav is worried.

Worried he says because much of Australia’s short-term holiday market is based on “fragile ground” and in his opinion, a more consistent approach to legislation over short-term rentals is required. Having a more balanced approach is vital to protecting Australia’s holiday accommodation industry. His comments come after the Independent Planning Commission recommended that non-hosted STRA should be subject to a 60-day exempt development cap. Byron Bay has the highest proportion of shortterm rentals in NSW, at about

8.5 percent of all dwellings. The commission’s recommendation could open the way for a broader crackdown on short-term rentals across the state and push properties back onto the longterm rental market in the Byron Shire, which has the highest rate of housing stress in NSW. Yoav says the standardisation of rules for short-term rentals is crucial across each state.

“I think it is too ambitious to think that we could have Federal laws over short-term stays, but definitely on a state level, it would be much better if the same rules applied for everyone rather than leaving it up to individual councils.

“What they are doing in Byron is very similar to what they’re suggesting in WA, that if you register, you’re entitled to 60 nights of short-term rental and then if you want to do more you have to apply for an exemption.”

Western Australia’s retired premier Mark McGowan recently flagged changes to shortstay rental accommodation services such as Airbnb, with Perth’s February rental vacancy rate at 0.7 percent.

Damian Quinn Isabella Mansell

The Tourels

But Mr McGowan conceded that “obviously a lot of people have made business decisions regarding Airbnb. And a lot of tourists that come to Western Australia use Airbnb to stay.”

Yoav says the standardising of laws around Airbnb and other short-term rental platforms would benefi t the whole accommodation industry.

“If you are planning to buy a property and hoping to use it as short-term holiday rental you need some sort of assurance that the council isn’t going to change the laws because that will severely impact what you can earn from the property.

“What councils are doing is also right from their point of view because they’re trying to represent their community and in the best way possible. This is what makes it such a tricky issue.

“I took part in the Byron Shire public hearings over this issue representing ASTRA, so I listened to everyone who spoke there, people from both sides of the argument. Everyone who spoke made sense even though they were on opposite sides of the issue.

“ASTRA believes that there needs to be regulation in the short-term market, but we also say there has to be a balance between the needs of the council, the community, and our industry.”

ASTRA represents tens of thousands of Australians who work in the shortterm rental industry.

Yoav says from ASTRA’s point of view the Australian housing crisis was not the fault of the short-term holiday market.

“When we speak with the government and when we read

reports, we don’t think that the short-term rental industry is the problem,” he said.

“We keep referencing research that was done back in March last year in Canberra that basically gave 208 pages of recommendations on the future of living – and none of the recommendations involved holiday rentals as a problem for housing.

“Even the recommendations that the special committee put into the Byron Bay situation identified a lot of recommendations for the housing crisis that was outside of short-term rentals in terms of what the government needs to do to address the problem.

“Our position at ASTRA is that it is very populistic to blame the housing shortage on short-term rentals because it creates a lot of clickbait.

“We must find ways where the industry and the local councils

Management Rights Specialists

QLD-NSW-VIC-WA

BUYERS - SELLERS - DEVELOPERS

Our team of legal experts, led by Col Myers, has over 30 years’ experience in this area and will get you the best possible outcome.

Tel: +61 (0)7 5552 6666

M: +61 (0)417 620 516

E: cmyers@smh.net.au

W: www.smh.net.au

can live together and ways that we can work together to relieve some of the housing stress.

“Most of the discussion in the media over the short-term holiday industry is about conflict but what we want is solutions by which everyone can benefi t.

“The short-term rental market in Australia is huge. There are estimates that say there are between 200,000 to 240,000 properties in Australia now being used for short-term rentals, but a lot of them are occasional use and seasonal use. We estimate that about a third of them are used for full-on short-term rentals.”

Yoav said the push by some sectors of the property industry to cut the terms of management rights was another thorny issue facing the accommodation industry.

“That’s another big issue we’re looking at. The two parties should be able to live together, but at the same time, we should see how we can allow owners who are paying for the management rights to have more of a say about them.

“As an industry, we need to be able to sit together with the building management and the stakeholders and see how we can strike that balance.

“There are also issues with strata management companies in Melbourne and New Zealand. We’re seeing owners bullied in their buildings for doing short-term rentals. Technology can help with solutions because by using the right

technology you can ensure you are gett ing the right type of guests – you can screen them and increase the level of accountability so that a lot of the problems with noise and bad behaviour just don’t happen.

“COVID provided a very strong boost for short-term rentals because, with the closure of hotels and the psychological eff ect of not wanting to be with a crowd but wanting to have your own place, it really opened the short-term rental market to many other segments who suddenly considered it a valid alternative for accommodation.

“Add to that the rise of people working from home or any location they chose, and you saw very strong growth in the short-term market.

“But like the Spider-Man movie says, ‘with great power comes great responsibility’. At ASTRA we have been in discussions with the NSW government for the last fi ve or six years over codes of conduct and registrations and we’ve seen the positive impacts of that.

“Regulation is needed because the growth of short-term rentals impacts the fabric of communities and the fabric of buildings, so it is inevitable that there will be tension.

“When we speak with diff erent departments in government, we’re looking at how to strike that balance, how shortterm rentals can co-exist in the community and what the mechanisms to do that might be - is it capping the days, is it through special levies? The industry is now trying to find the solution.”

The ASTRA board consists of nine volunteer directors from diff erent areas of the industry, such as property managers, tourism and travel, hospitality, and technology, legal, and finance experts.

Yoav says: “At ASTRA we’re all volunteers, and from all diff erent angles of the industry. We really care about the industry that we love.

“That’s why we must find solutions to the problems the industry faces by discussing ways we can all work together and benefi t as a result.”

Moving forward, Yoav will be a regular contributor to Resort News

We must find solutions to the problems the industry faces by discussing ways we can all work together

Affordable high speed internet for property managers

As a Telecommunications Carrier in 2023 we can at last see Queensland’s regions better connected than ever with thousands of kilometres of world class optic fibre ready to connect.

The connectivity of Fibre can meet businesses, apartments, resorts and commercial estates without having to use the old copper or wireless, at last. We are not referring to NBN here. We are talking about real Gigabit performance without dropouts and congestion that are responsible for holding our regional economy back. We are talking about reliability, high availability, zero congestion, competitive advantage, and world class standards. These high performing values are about half the price

since pre-COVID, and they are enabling the region to address many challenges such as :

• The migration of working from Offices to regions

• The importance of performing a video conference call

• The critical value of uptime for Eftpos, e-commerce, VoiP

• Using Cloud computing

• Enabling internet for the new Foxtel services ; Business iQ over existing coax

• Supporting the massive uptake of 4K TVs, media streaming, gaming and telemedicine

• Feeding the power of the new WIFI 6 modems, designed to deliver gigabit internet around building

• Meeting the expectations

of the tsunami of urbanites migrating to the regions and holiday makers expecting proper internet.

• Dealing with the higher volume of devices in use concurrently in dwellings and workplaces.

• Enabling Apple updates and gaming

Now that the future is here, how do you go about upgrading higher value high speed internet?

A free Audit is a good start. Coverage is now huge and there are plenty of technologies to get “fibre speeds to the room”.

“…with the flick of a switch our internet services moved to world class Gigabit capable internet. Resident and guest satisfaction has skyrocketed with the availability of fast, reliable industry leading internet, which allows our resort to include phone, video and streaming services never before o ered. Absolutely Brilliant!”

“Enabling internet for the new Foxtel services; Business iQ over existing coax”

– Eric van Meurs Manager Atlantis Marcoola Beachfront Resort and past ARAMA President (Australian Resident Accommodation Managers Association.)

Common urban myths of management rights

period already granted under the agreement. An option is usually exercised by notice to the committee; a variation to add further term needs approval at general meeting. Failing to exercise an option is usually fatal to the agreement, but failing to obtain additional term at a general meeting just means the existing agreement continues.

By Frank Higginson, Partner, Hynes Legal

A committee cannot approve a new management rights agreement or the variation of an existing one - new management rights agreements and variations to existing ones need approval at general meeting by ordinary resolution. End of story.

Part of it must be driven by the constant changes in legislation and interpretation of that legislation, but there are some more ‘frequent fliers’ when it comes to misunderstandings in the management rights industry. I thought I would summarise what I see as most commonly misunderstood and hope that anyone reading this article gets at least one misconception corrected.

Maximum agreement term – the term that can be granted for a management rights agreement is capped only by the tenure authorised by the relevant Regulation Module (be that 25 years in the Accommodation Module or 10 in the Standard Module). It is not capped by the term originally granted under the agreements. If an agreement was originally granted for 15 years, it can be topped up to 25. I don’t know where this one came from, but it still pops up regularly.

Options and variations - that term can be a straight period or broken up into an initial period and options periods. Varying an agreement to add a further term is completely different to exercising the option for a

A committee can lobby owners - committees, like all owners (including you if you own a lot) can put forward opinions to owners and recommend they vote one way or another on any motion. There is no way to shut down opinion on matters that might generate discussion.

A resident letting agent’s licence is limited to just letting units in the building to which it relates - you cannot sell real estate for reward or manage other real estate outside your building without access to a full licence. You cannot let lots without a proper appointment – you need a Form 6 or a valid PAMDA20A to provide any services for reward related to real estate. If you don’t have that in place, the owner of the property can ask for the return of anything you have charged them. Never risk this! It will come unstuck at the time you go to sell too from a valuation perspective.

Lawyers can prepare sale contracts - this isn’t to put management rights brokers out of a job, but we can prepare contracts for any direct deals. But you had better be ready to have the difficult conversations and negotiations with the buyer

if things come unstuck through the due diligence process. Most agents work harder after the deal is signed than before it!

Management rights agreements can only change when both parties agree - a management rights agreement is a contract. Like any other contract it can be changed but only when both parties agree to it. A manager achieves that by proposing a motion to general meeting which is then approved. A committee cannot unilaterally dictate a change of an agreement to a manager unless the manager agrees. If a committee puts a motion to general meeting to change a management rights agreement it doesn’t matter if the body corporate votes it through. The manager still needs to agree to it.

A body corporate can buy a management rights agreement out - a body corporate cannot operate a business at law. Therefore, it cannot ‘buy’ a management rights business, but it can pay consideration to a manager to get them to relinquish their rights under it. Call it a surrender fee if you like. Managers enforce by-laws - they don’t. Good managers

will help the committee police them by drawing people’s attention to them, but the actual enforcement of by-laws through the Commissioner’s Office is a responsibility of the committee. There are body corporate police - unfortunately not. If a tree falls in the forest and no one hears it, does it make a noise? That same question can be applied to lots of bodies corporate. Many operate outside the scope of the legislation, but until someone decides to make an issue of that, they just carry on. In the strata arena, the body corporate police are the owners and occupiers of that particular scheme.

A body corporate can tow a car - this one is actually sort of right, but the caveat is that it can only be undertaken with an order from the Commissioner’s Office. This is something that the law might change on soon, so stay alert to this, but in the meantime, managers should not get involved in instructing towing companies and the like - see the by-law enforcement furphy above.

If you think I have forgotten any, let me know! There will surely be enough out there for a second article.

It’s amazing the number of things that bounce around the management rights industry that are seemingly repeated until they become true.

Is your PMS flexible and responsive enough?

Similarly, when it comes to software integrations and payment gateways, take a look at whether the system integrates with just the developers ‘preferred’ system. Many PMS providers do not offer any choice when it comes to integrations. The better ones will offer you some flexibility.

Responsiveness

By Sylvia Johnston, Senior Executive, HiRUM Software Solutions

To say that the accommodation industry has changed significantly over the last 10 years seems like an understatement.

Clearly the pandemic changed things for a huge number of sectors but there are few that have seen the scale of change that we have experienced. The profile of operators has changed. Technology has changed. The way we market to guests has changed. Essentially the customer has been given much greater flexibility and choice but can the same be said about your software provider? What are the main property management system features you should be looking for from your software provider?

The evolution of the Property Management System

Property Management Systems used to be traditionally associated with larger properties such as hotels and resorts. Nowadays it is considered an essential tool for a vast range of property types including smaller, independent operators such as B&Bs, motels, holiday homes and vacation rentals.

Whether you are managing a single vacation rental, a small property with just a handful of rooms or a large

hotel business, each business comes with its own unique set of needs and challenges. The key difference is that small business owners usually don’t have quite the same resources, requirements and budgets as their larger counterparts. So, a ‘one-size-fits-all’ approach is never going to work when it comes to software.

PMS system developers have had to be one step ahead when it comes to predicting the changing needs of the market. Listening to and understanding the needs of your customers is the single most important aspect of running any business and is equally vital when it comes to development of property management system features. While the basic requirements of reservation management may remain consistent across all property types, there are a plethora of functions that will be higher or lower on the priority list depending on the property type. Choosing a system that is responsive to your needs and gives you, the property manager, the choice, and flexibility to select the features that will be most beneficial to you will help future-proof your business.

Not all property management systems are built the same. Modern systems combine multiple functions into a single piece of software to make the guest and hotel management process as seamless and easy as possible. So, what should you look for when considering property management system features?

Key features to consider when selecting a PMS Flexibility & choice

A good PMS system will offer you flexibility and choice. You should have a number of options available to you when it comes to key features such as:

• channel manager;

• software integrations; and

• payment gateways.

The emergence of such a wide range of Online Travel Agents (OTAs) including some that cater to more niche markets, means that most property managers have to think carefully about where they will get most ‘bang-for-buck’ and can’t afford to simply implement a ‘spray and pray’ approach to their marketing spend.

Linked to the requirements for flexibility and choice, the mark of a truly customer-focused PMS supplier is their responsiveness to their customers. Are you able to reach out easily to your current supplier and provide constructive feedback on additional features and integrations that would help your business?

A good PMS provider will be developing and enhancing the software on an ongoing basis to ensure that legislative changes are covered and more efficient ways of running your business are continually at your fingertips. Look for suppliers who are setting the trends not following them.

Support & training

Onboarding support, system training and customer service support are vital to enable you to feel confident in understanding what your PMS can do. A good PMS supplier will have great e-learning resources available so that you can view and download relevant help-sheets and instructional videos at a time that suits you. Look for software providers with the size to be able to offer great support when you need it. An Australian-based customer support team with a great reputation and extensive industry experience means you will spend less time trying to figure things out and more time attending to your guests.

© Adobe Stock, stock.adobe.com

Must love dogs

Man, I loved that car when it was launched but alas, as a poor longsuffering PAYG slave, I could not afford one. So, I’d spend time in Holden showrooms just looking at the thing and dreaming of the day…

By Mike Phipps, Mike Phipps Finance

The Holden Monaro is considered, among a certain demographic of the population, an icon of Australian motoring. Indeed, when we actually made things like cars the modern version produced between 2001 and 2005 sold in vast numbers to petrol heads, mums and dads and collectors alike.

It will come as no surprise that as a Toowoomba girl, the managing director also had a soft spot for the big V8-powered coupe. Her first serious boyfriend had an original Monaro back in the day so perhaps those fond memories are best left unexplored. In any event, for probably the only time in our many, many years together we shared a common liking for a particular car. Of course, knowing that one day I might get away with actually acquiring the object of my desires (the car, keep it clean people!) I secretly trawled the car sales and enthusiasts web sites in search of an opportunity. About a year ago the perfect one came up. Sting Yellow, low mileage, six-speed manual, and obviously well loved. I rang the bloke and we did a deal. The next phone

call was a heartbreaker. Sorry mate, the car just means too much to us, we can’t part with it. The vendor was very apologetic, and we parted on good terms.

A couple of weeks ago the phone rang. Still want to buy that car mate, it’s got to go? A brief chat with the MD, approval granted, and deal done. A road trip to Rockhampton was planned and we decided to take our dog. Let’s book dog-friendly accommodation. Wow, there’s almost no motels or park cabins offering dog-friendly

The Federal Budget summary

Some key takeaways from the budget from a tax perspective:

Temporary Full Expensing provisions will end on June 30, 2023.

By Lel Parnis, Principal, Holmans

The 2023 to 2024 Federal Budget was handed down on May 9, 2023 and set out a surplus of $4.2 billion for the 2023 financial year. Unfortunately, despite the surplus the government hasn’t offered an awful lot to small business in terms of tax concessions for the year to come.

From July 1, 2023, small businesses will have a temporary one-year increase of the instant asset write-off threshold to $20,000. From a tax planning perspective, if small businesses are considering purchasing assets costing more than $20,000 and are able to take receipt/installation of the assets on or before June 30, 2023, it may be tax effective to do so rather than delay an only be able to claim the cost over a number of years and only as depreciation.

Small Business Energy Incentive

Small and medium businesses will receive an additional 20 percent bonus tax deduction

for spending that supports “electrification” and more efficient use of energy under the Small Business Energy Incentive. The bonus is capped at $20,000 per annum for assets first used or installed and ready for use between July 1, 2023, and June 30, 2024.

Lower GST and PAYG Instalments for small business

Normally, GST and PAYG instalment amounts are adjusted using a GDP adjustment or uplift. In 2022 to 2023, the government reduced this uplift factor to two percent instead of the 10 percent rate that would have applied. And now for 2023 to 2024, the government has set the uplift factor to six percent instead of the 12 percent rate that would have applied.

As always, be wary if you are varying instalment amounts

rooms. We book what’s available and then decide not to take Ruby Rose, the third member of the road trip. But we leave the dog-friendly bookings intact, why bother changing? Well, turns out there’s a very good reason for changing. Dog friendly seems to translate to the worst room in the joint, and the joint isn’t exactly plush to start with. More on this later. We arrive at the vendor’s house after an interesting night in our lodgings to find the object of our desires in pristine condition. A

lower than those calculated by the ATO on your activity statement. The ATO can penalise where instalments are varied below 85 percent of your total tax payable.

‘Payday’ super: Increasing payment frequency of employee super

From July 1, 2026, employers will be required to pay employee super guarantee entitlements on the same day they pay salary and wages, where currently only required quarterly. The government aims to provide final details on logistics in the 2024 to 2025 Federal Budget.

Hybrid cars excluded from FBT exemption for electric cars

From April 1, 2024, plug-in hybrid electric vehicles will

lovely couple with a new baby has owned the car for 16 years and are clearly distressed at the prospect of selling. A quick test drive confirms this is the one, we exchange paperwork, take a few photos of the vendor family with the car and we are off. The MD chooses to drive the 4 x 4 we came up in, so I’m stuck with the new purchase. A sacrifice I’m more than happy to make but first, let’s call ahead and see if we can change our return accommodation. No problem and we book a cabin on a beautiful lake outside Gin Gin. Turns out they’d usually be fully booked on a Saturday night, but the Gin Gin show ball is on so everyone’s staying in town. I resist a very strong pitch from the MD to attend said ball albeit I suspect it would have been a very good night.

The Monaro is now safely in the garage and I’m still thinking about dogs. There’s got to be a better plan for dog-friendly accommodation than either the worst room in an average property or a strict no-dogs policy. Australia has one of the highest pet ownership rates in the world with 70 percent of households owning at least one pet and 50 percent of households have at least one dog. Many of these pets are smaller breeds that don’t shed hair and live in their owners’ houses. To

be excluded from the recently legislated Fringe Benefits Tax (FBT) exemption for electric cars.

Arrangements entered into between July 1, 2022, and March 31, 2025, may remain eligible for the exemption as long as the exemption applied to the vehicle prior to April 1, 2025 and importantly, the employer has a financial binding commitment to continue provided private use of the car on and after this date.

If looking to purchase a plug-in hybrid which is predominantly for private use, consider the future tax consequences of doing this in light of this change.

30 percent tax on Superannuation Fund earnings above $3 million

An additional tax of 15 percent on earnings will apply to individuals with a total superannuation balance over $3 million at the end of a financial year from July 1, 2025, including amounts in retirement phase pensions.

Another dog, we must learn to love.

The federal budget

potentially alienate 50 percent of the travelling public seems counterproductive. We know that one of the reasons people buy caravans and motor homes is so they can travel with their pets. One might wonder if this trend would remain if desirable, pet-friendly accommodation was readily available. It doesn’t take too much imagination to see how a standard motel room or caravan park cabin could be upgraded to accommodate specific breeds and here’s the best bit. Desirable petfriendly rooms have got to attract a tariff premium and I for one would happily pay it. If the Hilton in Whistler Canada can create a petfriendly accommodation option, I reckon it can’t be that hard. BTW… I acknowledge that some accommodation providers here

in Oz have taken the pet-friendly strategy on board but it’s hardly the norm. More power to them!

And now, on to another dog, we must learn to love. The federal budget was handed down recently and what an inspired document it is. I could go into detail but why turn you off dear readers when you have come this far? I’ll be brief. Having driven inflation and subsequent interest rate rises by pumping COVID support money into an inefficient economy our friends in government now plan to do more of the same. But, here’s the miracle that is expected. This time the money pump will drive down inflation and interest rates will fall as a consequence. It gets better. Jobseeker payments will rise

resulting in higher employment rates and inward migration will assist a skills shortage and have limited impact on our housing rental crisis. Wait a minute, don’t we have employers, particularly in regional areas, crying out for workers while we have a million citizens on the dole? Don’t we have a rental affordability crisis driven by under-supply and increasing demand? No problem, all this will be solved by increasing payments to our least productive sectors and bringing in huge migrant numbers to do the work the people on the dole don’t want to do.

Strap yourselves in people. This is a plan that will drive inflation and rents up, exacerbate our affordable housing crisis, and force the RBA to lift the cash rate. A side note. I’m not unsympathetic to the plight of people who rely on support from taxpayers to get by and I’m most certainly no fan of anyone needing to live on the street in this day and age. But a caveat if I may. Our own experiences in trying to hire staff combined with the feedback we receive from clients indicate that at least a portion of our social security recipients are not unemployed... They have in fact taken voluntary permanent retirement at the taxpayers’ expense.

Personal income tax compliance and rental property owners under scrutiny

The ATO will receive $89.6 million and Treasury $1.2 million over two years to extend the personal income tax compliance program for two years and to expand it to

target emerging issues such as deductions relating to short-term rental properties to ensure they are genuinely available to rent.

Small business lodgement penalty amnesty

Small businesses with an aggregated turnover of less

than $10 million, will be able to access a lodgement penalty amnesty program. The amnesty will remit failure-to-lodge penalties for outstanding tax statements lodged in the period from June 1, 2023, to December 31, 2023, that were originally due during the period from December 1, 2019, to February 29, 2022.

That good oldfashioned service

There must be thousands of examples over the years that I have witnessed while waiting in a motel reception for a guest to check in or out.

Examples of happy customers walking out with a smile on their faces. I cannot help but thinkthat’s another satisfied customer who will be back again. Whether it was how they were treated, the greeting and discussion they had, the quick no-fuss procedure, or just a parting quip or laugh with the owner or operator. It’s that good old-fashioned service that makes people come back again and again.

What’s the line from a movie I am recalling? It goes something like, “You don’t sell a guy one car, you sell him five cars over fifteen years”, or something to that effect. The point is, if you look after the guest, he will keep coming back, as opposed to staying once and never returning. When business is good due to strong demand, we can often get caught up in this “churn and burn” type of mentality. However, when demand sours and rooms are not selling easily that’s when the service facet kicks in and those happy customers keep returning when others drop off.

In times when demand declines and things become harder, larger group accommodation providers will pour money into advertising,

trying to expand their market share. Smaller accommodation providers then wonder how they can possibly be competitive with bigger businesses. How does one compete against the massive marketing budgets, the discounting of room rates,

and the ability to weather the tough times more easily?

Smaller operators can stand out at no additional cost using what they have available - personalised customer service. The difference is claiming to provide it and actually following through. Anyone can

claim it but how many deliver on it? Studies find time and time again that the one thing that a business can do to be remembered, to stand out, and to prompt customers to give positive word-of-mouth reviews, is to provide their customers with an experience. A good or bad experience is up to those engaging with the customer. So much of what people do nowadays is online. Therefore, it’s not only the face-to-face experience but also the online experience that matters. Online interaction may lack that personal touch but the process and ultimately the result will determine whether the guest has what they came for, or walks away from the screen less than happy.

Returning customers

It is an expectation of all businesses that the employees and owners interacting with guests are welcoming and approachable. To really make an impression, guests and potential guests need to feel surprised, excited, and important, but most of all they want to be looked after.

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

© Adobe Stock, stock.adobe.com

© Adobe Stock, stock.adobe.com

Is it essential to build strong relationships?

Treat each guest as an individual, get to know them, and call them by their name. When providing insights into the reason for their stay, tailor a response to make them feel as if they are the only guest you are dealing with on that day. It is those operators who may have an almost scripted approach that does not come across as scripted that know their craft. Those who come across as scripted lose that genuine touch and can make a guest feel more like a number than a valued guest. It’s wise to offer local knowledge that is valuable to the guest. Suggest family-friendly activities in the region to families, perhaps offer some first-hand experience on good dining options nearby to a couple, and maybe advise your business guest that a room has been reserved for them in a quiet part of the complex. These small, personalised touches make guests feel important. They will remember you and talk about the motel. Effectively they become indirect, unpaid salespeople for the business with their positive commentary.

Getting to know guests

Do not underestimate the power of idle chit-chat, when to use it, and when to hold back. There are always going to be customers who want to check in, get their key and go, and that is the only interaction they will have. It is important to remain friendly and approachable but look for the cues that they don’t want to be engaged and provide them with fast, efficient service with a smile and leave them to it. There are other guests who appreciate an operator who is eager to engage and it is within this idle chit-chat that you can find out personal information that will allow you to create a more tailored service. Keep guest records with personal insights to engage with them on a return visit.

Complaints: Deal with them!

We are all fully aware of complaints and how to deal with them but now there is the ‘keyboard warrior’

who will not air grievances face to face, preferring to hide behind a screen. There will always be guests who expect champagne service on a beer budget, and they will complain loudly and often rudely about even the smallest matters. No matter how trivial, a complaint needs to be acknowledged, heard in all seriousness and where possible, made good.

With today’s technology, it is not good to brush off a complaint, bid the guest farewell and forget about it. More likely than not, the issue is going to pop up on a review site for the whole world to read. Engage the guest, treat them as if the issue is as important to you as it is to them, and try to find out exactly what it is they would like you to do to fix the issue, which is easier said than done sometimes. If it is reasonable and possible, attend to the matter promptly. Always be seen to try and improve your business and most importantly to care about the experience you offer your guests.

Educate employees

The reputation you are trying so hard to build can be undone in a second if your representatives aren’t following suit. Never underestimate the damage that can be done from poor encounters guests have with your staff in your absence. If your staff care about your business as much as you do, it should be reflected in the way they treat your guests. Make it a basic standard that they go above and beyond a simple greeting when interacting with guests and if there are issues address them promptly and don’t leave it until the damage is already done.

One important thing travellers want is the one thing that the operator is perfectly equipped to provide them with and that’s - personalised customer service. Guests will generally forgive minor issues if they feel everyone went above and beyond to make their stay the best it could be. Remember, the feeling of being important through direct personal interaction is one of the biggest incentives for guests to return.

By Kelley Rigby, Managing Director, Lett s Rebuild

Building relationships

industry professionals. This industry we know, and love is a complicated one with many curve balls. Building relationships and friendships with those that can help guild you are invaluable in this industry. You can expect to know all the answers so having a database of people around you to help in those times of need is essential.

In today’s competitive market, no management rights owner can succeed without building positive relationships with their investors, owners, and everyone in between. The ability to establish and maintain strong relationships is often the key to a successful business, especially in the long term. In this article, I will discuss why building relationships is crucial in business, why it helps you maintain support, and how it can positively impact the bottom line.

First, building relationships is vital in your business because it helps create trust and loyalty. Trust is an essential element of business relationships because it shapes the way people make decisions. Investors are more likely to give their business to a property manager they trust, and owners are more likely to show support to a resident manager they trust. Trust can take time to build, and once established, it can set the stage for long-term opportunities. Likewise, employees and partners are more likely to offer their best work if they feel valued and respected through a good relationship with the business. Secondly, building professional relationships in our industry is critical to your success. Every manager needs to understand the importance of networking and collaborating with other likeminded managers and

Thirdly, building strong relationships within your community will ultimately increase your bottom line. A strong business relationship with your investors will encourage loyalty and result in them continually entrusting you with their investment, sale, renovation. These lead to a stable and predictable revenue stream, which let’s be honest we all enjoy that. If you in a position to have employee, remember, a sound relationship with them can help lower turnover rates, reduce recruitment and training expenses. By investing time in building positive relationships, you can reduce costs and increase profits while building a better business environment. Furthermore, building relationships with different business and suppliers can also assist in the business and help to ensure it is running smoothly. Building relationships is crucial in every aspect of life, and it is essential in the business world as well. Every manager needs to build good relationships with their communities, employees, and partners to build trust, expand, and increase the bottom line. These relationships don’t happen overnight, they take time, effort, and good communication skills.

Investing the time and effort into building positive, long-lasting relationships is important because these relationships will form the foundation of successful management rights operations over the long term. As a result, building relationships should be an integral part of your business plan and strategy.

is essential in every aspect of life, and it is especially critical in the management rights industry.

Small operators can stand out at no additional cost using what they have available - personalised customer service

Key performance indicators for building managers

If you are the appointed building manager (or employee of a facilities management services provider) how are you tracking against key performance indicators KPIs in your strata property?

Management theories behind planning and executing business goals have been around for

as long as humans have been trying to sell their products and services to each other, but the acronyms KRAs (key result areas) and KPIs (key performance indicators) generally became widespread in the 1990s. It was this decade that saw the concept of performance indicators gaining momentum. Organisations were finding better ways to understand the progress teams or individuals were making toward key business goals on a regular basis. The days of waiting till the end of the project to find out if a strategy was a success were over.

KPIs are the quantifiable measures of performance, established to be assessed over time as a gauge to whether a certain business goal or objective is being achieved. Where KPIs are well documented and promoted within the business (and to clients) they tend to provide clearer targets for team members to work toward, which flows on to team members being

able to make better decisions around day-to-day tasks. This all might seem a bit farfetched for a residential strata caretaker with management rights, but as you reflect on your own performance as a caretaker, facilities manager or building manager, KPIs in your business will provide an objective benchmark to measure against.

Interestingly I had a discussion recently with a commercial facilities manager who had been long-term engaged by an international FM brand who told me that the Number 1 KPI for FMs in that business was “diversity and inclusion”.

What?

That might be a good KPI for the human resources department when recruiting personnel, but I’m not exactly sure how diversity and inclusion assists the building manager on the ground with ensuring the functionality and amenity of the building.

Effective KPIs for building managers

Getting the KPIs ‘right’ is important so they resonate with the worker and encourage performance. If the KPI doesn’t make sense, or is unachievable, success will be difficult to achieve. So, what are some more relevant and effective KPIs that would specifically serve a building management role?

To create effective KPIs for worker performance, you need to start with identifying the business goals or key result areas KRAs.

KRAs generally include in simple terms:

• Deliver the products and services as per the Agreement;

• obey the laws;

• secure a top-up or contract renewal for repeat business; and

By Lynda Kypriadakis, Diverse FMX

• make a profit or at least, don’t go broke.

So how do you measure that you are delivering all the products and services under your Agreement as effectively as possible to ensure maximum productivity and profitability?

The first step is to understand the minimum standard required under the Agreement and work from there.

This usually starts with analysing the Schedule of Duties and breaking them down into groups:

• Administration and reporting duties such as reporting to the building owner, processing invoices for payment.

• Regulatory compliance management duties, such as keeping pool water testing records, updating the WHS Plan and the Evacuation Plan, managing inspection records and timely rectification of defects in the fire protection system.

• Specialist contractor repairs and maintenance duties, such as obtaining quotes and coordinating repair works.

• Soft services duties, such as ensuring the cleaning and gardening duties plus handyperson repair tasks are being delivered.

• Customer relationship management such as ensuring the client is fully informed, happy, and satisfied with your services.

Once the duties are broken down into groups or KRAs you can then apply your KPIs.

Think about what evidence you could put together to verify performance in each KRA above?

For example:

1. Administration and reporting: Your Agreement requires you to report on things requiring a hazard or risk, or needing repair etc. so how do you prove you are doing this for your client? Probably the easiest way to provide evidence of delivering this duty is to issue a Building Manager’s Report on a regular basis to your client - monthly is best.

The KPI for this KRA would therefore be:

“We deliver the Building Manager’s Report monthly, at the end of each month”.

2. Regulatory compliance management: Your Agreement requires you to coordinate and arrange specialist contractors and consultants to ensure the statutory maintenance of the essential services occurs within the common property of your building and so on… Statutory maintenance is required by law and if you fail to deliver infringement penalties may apply, so how do you prove you are doing this work for your client?

Probably the easiest way to provide evidence of delivering the regulatory compliance outcomes of your role is to develop a Regulatory Compliance Schedule and keep it updated. A sample Regulatory Compliance Schedule can be found in Chapter 24 of the ABMA Building Management Code. For good order’s sake the Regulatory Compliance Schedule could be added as an attachment to the Building Manager’s Report each month.

The KPI for this KRA would therefore be:

“We complete the Regulatory Compliance Schedule each month and include as an attachment to each Building Manager’s Report.”

3. Specialist contractor management: Your Agreement also requires you to scope repairs, obtain quotes and seek approvals from the building owner. Once approved, you are required to provide access and enable the works to be done, then check or validate the invoice claims and provide work-in-progress updates to the building owner. So how do you prove you are doing this work to your client? The work-in-progress updates can be logged in your Building Manager’s Report each month, but the audit trail of quote requests, approval dates, work order numbers issued, and invoices received and processed could be detailed in a simple spreadsheet.

The KPI for this KRA would therefore be:

“We keep a spreadsheet of all quote request dates, quote received dates, approval dates, work orders raised, and invoices received, and add the month’s data as an attachment to the Building Manager’s Report monthly, at the end of each month.”

4. Soft Services: Your Agreement either requires you to deliver the cleaning and gardening duties, or it requires you to supervise them. Either way, how do you prove

that you are doing these duties?

We all know that the mirror inside the lift could be cleaned at 7:00 am each morning, but have finger marks on it by 7:15 am and look like it hasn’t been cleaned, so how do we keep an audit trail of vigilance in delivering our soft services works? How do we prove that we are checking that lights are working and replacing globes? Probably the easiest way to prove soft services duties are being done is via a daily Soft Services Checklist, signed off by a senior staff member confirming duties were performed and at what time.

The KPI for this KRA would therefore be:

“We keep a Soft Services Checklist of all cleaning, gardening and handyperson tasks performed, which is signed off by the senior person and add these Checklists as an attachment to the Building Manager’s Report monthly, at the end of each month.”

5. Customer Relationship Management: This is a tricky one. How do you set measurable targets for effectively managing the client relationship to ensure the top-up or renewal application is successful? Homework for you!

New Sixty6 Acres retreat brings ‘Hay-Cation’ stays to the Sunshine Coast

Andrew and Jo Pitcher have transformed a formerly rundown farm in Woombye and established six individual luxe ‘quarters’ overlooking a lake and lawns, each with its own large veranda, from which guests can soak up the wide, open spaces as the sun sets.

Sixty6 Acres country retreat echoes the Sunshine Coast’s rich agricultural legacy and brings luxury accommodation and pineapples back to an area just five minutes from the famed Big Pineapple.

The self-contained, twobedroom architecturally designed quarters feature wood-burning fireplaces, freestanding baths, full kitchens, and the very best of stylish furnishings and facilities. Every room makes the most of the landscape, including the master bedroom with a free-standing bath that offers both privacy and a spectacular view.

While serenity and relaxation might be the preference for many visitors, guests have plenty of opportunities for exercise and activities on the property, which includes large, forested areas and creeks, inhabited by platypus. Guests can also take a stroll up to The Stables to pat and feed a menagerie

of friendly farm animals including miniature English donkeys, belted Galloway steers, babydoll Southdown sheep, and a Chicken Caravan with a range of fluffy and feathered breeds.

The Pitchers are welladvanced in reviving the farm’s productive capacity, with 7200 pineapples planted in recent weeks, a homage to Woombye’s once prolific pineapple industry. They will be producing fruit in nine to 18 months. They have also planted a small sugar cane crop, a feature of the area in earlier times. In addition, grapes are being grown in the mini winery, citrus, coffee, macadamias and mangoes are under cultivation, and over 2000 native trees have been planted across the property. The project was managed from inception to completion by Andrew and Jo, who bought the site after viewing and staying in dozens of similar farm stays around Australia as well as in Canada and England.

Andrew said: “The beauty of Sixty6 Acres is that it is both set in a lovely country environment but is just 15 minutes from beaches and the airport, thirty minutes to Noosa, and just five minutes to the Big Pineapple, which has the Sunshine & Sons distillery, Treetops Ropes Adventure, and Wildlife HQ.”

Cocktail lovers check in to Australia’s first margarita suite

The Herradura Hacienda at The Pink Hotel in Coolangatta has been transformed into a tequila and margarita-lovers paradise with decor to match. The room design is inspired by ‘cosmic disco’ and ‘neon jungle’, making it the perfect setting to celebrate all things margaritas.

The margarita-inspired hotel room from Mexico’s last tequilaproducing Hacienda, Herradura is a one-of-a-kind experience paired with the world’s most gold medal-awarded tequila. Included in the booking fee, guests will be treated to bespoke Herradura margaritas from the in-room bar (and other tequila serves, including Capi mixers, with instructions on how to make them). In addition, guests can add a one-hour bartender service to their booking.

Hotel General Manager, Freya Frenzel said: “The room has all elements of The Pink Hotel that people know and love, with a fun twist!”

Dion Workman, Head of Marketing and Experiences at Destination Gold Coast said: “The Pink Hotel in Coolangatta is an iconic hotel experience and a favourite amongst domestic and international visitors looking to explore the Southern Gold Coast region.

“We are excited to see this collaboration between two brands come to life showcasing a mixture of entertainment, art, culture and a unique Gold Coast experience.”

Sixty6 Acres country retreat

Big milestone for Bowen’s ‘Big Mango’

The Big Mango celebrated turning 21 on May 25, 2023. It’s estimated that 1.5 million people have taken their photo at this iconic 10-metre tourist attraction at the top of The Whitsundays, making it one of Australia’s most popular ‘Big Things’. The Aussie ‘Big Things’ are all drawcards for small agricultural towns like Bowen and play an important role in regional recovery.

Located just five kilometres south of Bowen on the Bruce Highway, The Big Mango weighs a whopping five tonnes, it’s made of fibreglass and was built in May 2002. Today the structure continues to attract an estimated 80,000 people a year with more than half of those calling into the Bowen Visitor Information Centre next door.

Manager of Bowen Tourism and Business, Leanne Abernethy,

said the Big Mango represents something truly special for Bowen locals. “As a roadside tourist attraction, the Big Mango is an incredible asset to Bowen,” Ms Abernethy said.

“We believe it’s the world’s largest mango structure and it’s so great to see the entire community getting involved in celebrating this milestone. We’ve been running an online photo competition and we have other birthday activities planned to mark the milestone.”

With a population of about 11,000 and known as ‘the food bowl’ of The Whitsundays, Bowen supplies 10 percent of the entire Australian mango crop.

The Big Mango symbolises the Kensington Pride variety of mango, which is also known as the ‘Bowen Special’ and was the brainchild of a local doctor at the time, Geoff Ingham, who got the project underway by establishing the Big Mango Trust to help fund and build it. Costing $90,000 to build it was almost $60,000 over budget but 21 years later,

Bowen continues to reap huge rewards from the giant icon.

Chair of Bowen Tourism and Business, Jenn Honnery, said the Big Mango was named the Top Tourist Attraction in The Whitsundays Tourism Awards in 2022, and the Bowen Visitor Information Centre’s retail offering is also very popular.

Ms Honnery said: “There’s no doubt that a couple of publicity stunts have helped to elevate the Big Mango’s popularity. One saw the Big Mango ‘split in half’ early this year and the other was during 2014 when our Big Mango made headline news across the globe when it mysteriously ‘disappeared’ overnight.”

It was later revealed that the restaurant chain, Nando’s, was responsible for ‘stealing’ the Big Mango to promote their new Mango and Lime flavoured sauce.

“We were absolutely blown away by the media attention which certainly helped to put Bowen on the map,” Ms Honnery added.

“We have two big mangoes in Bowen. The second was donated by Nando’s in appreciation for the cooperation of our community. The Little Mango is six metres high and located on Santa Barbara Parade, in the middle of Bowen’s beautiful foreshore precinct.”

And Bowen?

It is a beach-lovers paradise with country town hospitality, situated on a headland overlooking the Whitsunday Islands. It’s home to eight secluded beaches, and worldfamous lookouts, and visitors can snorkel the fringing reefs directly off the beaches of Bowen.

About an hour drive from the Whitsundays mainland town of Airlie Beach, it’s easily accessible via the Whitsunday

Coast Airport with daily flights from capital cities. Bowen has a rich history, and visitors can explore its heritage through various historical sites. The Bowen Historical Society Museum showcases the town’s past, including artifacts and photographs. The Catalina Memorial and Catalina Park provide insights into Bowen’s significant role during World War II as a Catalina flying boat base. Bowen has also gained popularity as a filming location for movies, including the iconic Australian film “Australia” starring Nicole Kidman and Hugh Jackman. The COVID-19 pandemic presented unprecedented challenges for the accommodation industry in Bowen, like many other destinations it had to navigate uncertain waters and witnessed a sharp decline in bookings as travellers postponed or cancelled their plans. However, operators swiftly adapted to the new reality and embraced a shift toward domestic tourism.

Bowen’s accommodation industry has shown great resilience to weather the storm and is now poised for a solid travel rebound. With picturesque landscapes, inviting beaches, warm hospitality, and of course The Big Mango the region is positioned as a desirable destination for travellers seeking rejuvenation and exploration.

The Big Mango

Bowen -

Photo by Tania Richardson on Unsplash.com

Yellow Water Villas: Kakadu’s latest luxury eco-sensitive accommodation

In May, a new luxurious and eco-sensitive accommodation opened in the heart of the World Heritage-listed Kakadu National Park. Yellow Water Villas comprises of five luxury retreats in Cooinda, adjacent to the region’s most famous natural water habitat, NgurrungurrudjbaYellow Water Billabong.

Nestled under a rich canopy of trees, each of the Yellow Water Villas balances luxury with a commitment to environmental sustainability. ‘Planet, People, Profit’ is the strong ethos of fully Indigenous-owned Kakadu Tourism and the development of the new Yellow Water Villas demonstrates this spirit throughout.

Built on stilts to minimise any impact on the land, not one tree was cut down to accommodate the retreats. The absolute

preservation of the land was the key priority of Traditional Owners. Every item used in the construction and operation of the Villas has been procured sensitively, to ensure guests can harmonise completely with Kakadu’s rich natural tapestry.

The luxury Villas have a barbeque and private bathtub on the large veranda. The fully air-conditioned Villas boast a high-quality handmade king-size bed, ensuite bathroom, dining area and lounge area with daybeds.

Each of the five retreats is named after an Indigenous animal of the Kakadu area, themed throughout with personal stories of the local community – from the pillows to the interior decorations.

Art and crafts decorations have been sourced from local Cooinda artists as well as the famed Marrawuddi Art Gallery in Jabiru. The attention to detail in the hand-crafted joinery and interior fit-out sets the villas apart.

Located within the grounds of Cooinda Lodge, guests have access to two restaurants and a bar, two resort-style swimming pools, a tour desk, a retail shop, fuel service, and a children’s playground. Indigenous-themed dining is a feature of Mimi’s Restaurant. The menu features Top End staples such as barramundi, crocodile, buffalo and local bush foods, and a Full Moon Feast is held to celebrate each of Kakadu’s six distinctive seasons.

One of Australia’s most spectacular nature experiences is available on the Villas’ doorstep, with renowned Yellow Water Cruises operating daily, providing a curated view of Kakadu’s rich wildlife and flora.

The Spirit of Kakadu Adventure Tours also operates from Cooinda Lodge taking visitors to many of Kakadu’s most spectacular sites such as waterfalls, rock pools and landmarks, many of which were showcased in the legendary Crocodile Dundee films.

Cooinda Lodge boasts its own

airstrip, from which scenic flights can be arranged along with transfers to Darwin Airport, making an indulgent stay in Kakadu even more accessible. Kakadu’s remarkable landscape dates back millions of years and has been home to the Indigenous clans of Kakadu for over 65,000 years. The story of the local Murumburr community is told at the nearby Warradjan Cultural Centre, which also tells the story of Kakadu’s evolution through the generations via interactive displays and audio-visual exhibits. Local community members demonstrate their arts and crafts at the Centre, which also plays host to major events such as the annual Taste of Kakadu. The opening of Yellow Water Villas launches the newest chapter in Australia’s oldest and most significant cultural heritage story.

Cooinda Lodge is located 3.5 hours drive southeast of Darwin. Charter flights are available to fly visitors from Darwin Airport to Cooinda Airport.

New Benchmark Report for the MR Industry launched

Resly

and Caatz

Management Rights Accountants have released their ground-breaking benchmark report, a joint initiative aimed at revolutionising the holiday letting industry.

The pioneering report, developed through extensive collaboration and leveraging technology, promises to provide timely insights into holiday letting fees and charges, forward and historic occupancy, and room rates specifically tailored to our industry. Traditionally, the management rights sector has faced challenges in obtaining accurate and reliable data for benchmarking purposes. Many existing solutions rely heavily on data from large hotels, which often fail to capture the nuances of the unique management rights market. The partnership between Resly and Caatz Management

Rights Accountants seeks to address this gap by introducing a comprehensive benchmarking tool that exclusively caters to the management rights industry.

The new benchmark report powered by Resly’s cuttingedge technology automates the collection of data, ensuring accurate and up-to-date information for property managers. By gathering data directly from participating properties, this solution eliminates biases and offers an unparalleled level of accuracy and relevance. Property managers can confidently rely on this report to make informed decisions regarding their fees and charges, occupancy rates, and room rates.

One of the key advantages of this benchmark report is its ability to grow and adapt as more properties opt into the system. As the number of participating properties increases, the report

will become an invaluable resource for property managers and industry professionals. The data collected from a wide range of properties will paint a comprehensive picture of the market trends and dynamics, facilitating better decisionmaking and promoting healthy competition within the industry.

“We are thrilled to partner with Caatz Management Rights Accountants to launch this gamechanging benchmark report,” said Sam Steel, co-founder of Resly.

“Our shared vision is to empower property managers with accurate, industry-specific data that will drive success and growth. This collaborative effort represents a significant step forward for management rights, and we are excited to see the positive impact it will have on managers and the industry as a whole.”

The benchmark report provides a resource for property managers to access industry specific insights.

The report includes detailed analysis on fees and charges and historical comparisons on occupancy and rates.

Whether a property manager wants to evaluate their performance against industry averages, analyse seasonal trends, or benchmark their charges against similar properties, this benchmark report offers a wealth of valuable information.

Resly and Caatz Management Rights Accountants invite property managers to join this initiative. By participating in the benchmarking program, property managers will gain access to valuable insights, contributing to the collective growth and success of the industry.

To learn more about the benchmark report and how to participate, please visit www.caatz.com.au/benchmark

2023 ARAMA INDUSTRY EVENTS CALENDAR

The 2023 PRET Australia Management Rights Forum

By Mandy Clarke, Editor

SunPAC, Brisbane southside’s premier performing arts and cultural centre was a wonderful venue to hold this important industry event, where over 200 onsite managers, MLR professionals and other attendees were welcomed, all keen to share information and learn ways to manage the current challenges faced by the industry.

The day’s agenda was packed with valuable sessions, the morning included five English speakers with six industry experts and the afternoon offered seven Mandarin sessions with 15 guest speakers.

The first speaker of the morning was Lauren Jones from the Office of the Commissioner for Body Corporate and Community Management, who gave an overview of the industry and the

service offered by the BCCM.

Then, Trevor Rawnsley, CEO of ARAMA led a discussion about the attack on term that the management rights industry is battling right now and talked about the current law reforms.

Next up was John Mahoney from Mahoneys Lawyers who spoke about the attempts from some

body corporate committees to terminate agreements.

Then, Kelley Rigby from Letts Rebuild gave some great tips on growing and protecting the onsite managers’ letting business.

The final morning session was from Frank Higginson, Hynes Legal, who talked

about dealing with challenges around the ‘Top Up’ process.

The 2023 PRET Australia Management Rights Forum and 2023 PRET Australia Awards Night Founder and Organiser Paul Shih addressed the audience and said: “I would like to take this opportunity to thank all the sponsors for the 2023 PRET Australia Awards Night who are here with us today.

“This year’s Awards Night for Real Estate Agents and Onsite Managers will take place at the Royal International Convention Centre on Saturday November 25, from 5pm to 10pm.

“The Awards Night will recognise the outstanding achievements of real estate sales agents, property managers and onsite managers, as well as raise funds for worthy charities such as The Lord Mayor’s Charitable Trust, Royal Brisbane Women’s Hospital Foundation, Mater Foundation and more.

“Can you believe that over the last two award nights we have donated a total of $215,595?

“The 2023 PRET Australia Awards Night Sponsors that are related to the management rights industry include our Triple Diamond Donor Golden Water Finance Group Penny Huyan and Jason Fu, let’s thank them for donating $10,000 each year to our chosen charity!

“Diamond Donor REDY Group Silvia and Ben Liu, for donating $10,000 to charity since last year.

“2023 Platinum Donors who have committed to $5000 donations include Resort Brokers (thank you Alex Cook and Jessie Shi), FutureXPowers (thank you Scott Lai), Mahoneys (thank you John Mahoney).

“And thank you to our event media partner Resort News

“We also have some of our Gold Sponsors with us today, thank you to Property Bridge Darren Brent and Bobo Qi, Shine Realty Celine Tseng and Tom Wu, Onsite MR Fan Li, KP Business Advisors,

“I want to especially thank Innovision Body Corporate Services and TF International for also sponsoring the morning tea and afternoon tea today. We have many more donors and sponsors for our Awards Night this year all wanting to contribute towards our charity fundraiser.”

Three of the PRET Australia 5 Star Onsite Manager Award winners from 2022 were also in attendance at the forum and shared the importance of onsite managers not just doing a good job but also showing they are doing it well. They said that’s why onsite managers should nominate themselves for both the PRET Australia 5 Star Onsite Manager Awards 2023 and the ARAMA Top Awards.

Paul added: “Why not, show off your great work so people can see you are doing a great job!”

Bugden Allen Graham Lawyers, Expertised Pest Control.

2023 Caravan Industry National Conference and Awards

This

year, RACV Royal Pines Resort, Gold Coast, welcomed a record number of over 1000 delegates to the annual 2023 Caravan Industry National Conference.

The Caravan Industry Association of Australia (CIAA) put together another extraordinary and fun-filled event. Beginning May 10 and ending May 12, 2023, attendees enjoyed a variety of social events, inspiring speakers, masterclasses, a buzzing trade expo and Gala Dinner.

CIAA, CEO, Stuart Lamont told us: “We are here to celebrate our unique industry, one that continues to track along a positive trend.”

On the final night, the National Conference Gala Dinner was a chance to recognise and award those, in the sector, who have excelled in 2023. For the second

year in a row, PMS provider Newbook won the Gerry Ryan OAM Award for Innovation 2023.

The DLL Commercial Finance People’s Choice RV Manufacturer of the Year Award, Gold Winner was Sunland Caravans.

For the Review Pro People’s Choice Caravan Park of the Year Awards, the Bronze Award went to Holiday Haven Currarong, the Silver Award went to Suffolk Beachfront Holiday Park, and NRMA Forster Tuncurry Holiday Park took out the Gold Award.

Rob Lucas won the Chairman’s Award 2023. Jeb Grose Director Adelaide RV was the recipient of the 2023 future leaders award.

Donna Cocking received the Richard Davis OAM Award 2023.

Dennis Austin won the Richard Davis OAM Award 2023. And finally, the much-respected caravanning and camping industry advocate, Alison Huth was presented with the Eric Hayman OAM Award for Excellence 2023.

Ardo, Townsville’s first luxury hotel

Family-owned tourism and hospitality leaders, Morris Group, are preparing to unveil their latest project, Ardo, Townsville’s first luxury hotel set to redefine North Queensland’s resort lifestyle.

Ideally positioned on Townsville’s foreshore, the $88 million development will introduce high-end accommodation, world-class dining, a luxurious day spa, and a stunning rooftop pool deck featuring a panoramic view across the Coral Sea out to Magnetic Island.

Morris Group Founder and Executive Chairman Chris Morris said Ardo would provide a boost for North Queensland’s tourism industry, creating desirability around Townsville as a destination worth visiting.

“We know that North Queensland has so much to offer as a destination, so there is huge demand for domestic and international visitors to travel here.

“But what we’ve discovered is there is still a gap in the market for luxury accommodation, so what we’re doing with Ardo is building on what we already

do so well, providing another opportunity for high-end experiences in this very special part of the world,” he said.

Ardo will have 132 rooms and suites, most of which enjoy sea views. The premium suites which are positioned on the corners of the hotel, feature expansive balconies with 270-degree views. Eight of the

rooms also feature baths on the balconies which face out to the Coral Sea and Magnetic Island. The dining options have been designed from the outset to sit at the top of Queensland’s culinary experiences list. The rooftop restaurant Marmor is inspired by the region’s worldclass meat and seafood offering with a focus on contemporary Australian cuisine and on the ground floor, Terasu restaurant will present Japanese fare.

Sitting alongside Ardo is Morris Group’s other Townsville resort, The Ville. Ardo guests will be able to use The Ville precinct’s amenities which include the famous oceanside swimming pool with swim-up bar, gym and casino. While The Ville provides relaxed, tropical surroundings and casual sophistication, Ardo will offer a more high-end stay.

Ardo is on track to open at the end of 2023.

Unveiled: Stage three of Sanctuary Cove Marina

Southeast Queensland’s premier lifestyle and leisure destination, Sanctuary Cove, has launched the next stage of its Marina expansion, delivering 24 new berths as part of a five-year superyachtready strategy.

Development on the $6 million Marina expansion has commenced and will see eleven 40-metre berths and thirteen 25-metre berths added to its superyacht arm. Following a 12-month construction period, the new berths will open the door to a greater showcase of superyachts at the 2024 Sanctuary Cove International Boat Show.

Mulpha Chief Executive Officer Greg Shaw said Mulpha’s continued investment into the marina will see a total of 63 superyacht berths available in the new year.

“Providing our Superyacht clients direct access to onsite worldclass retail, a 5-star hotel, fitness, golf and leisure facilities has been a winning formula and we look forward to expanding the supply of new berths for superyachts on the Gold Coast,” Mr Shaw said.

“Investment in the marina forms part of an ongoing reinvestment strategy by Mulpha across the broader Sanctuary Cove

Integrated community with recent upgrades completed at the InterContinental Hotel Resort, construction of the premium Harbour One residential project well underway, the introduction of new retail tenants in the village and an upgrade of health and wellness facilities in the planning stage.”

Echoing the positive endorsement, Steve Sammes,

General Manager of Mulpha Sanctuary Cove Marina, said it is the next step in the destination’s superyacht-ready approach to meeting demand.

“The demand from larger vessels on our coastline has continued to increase both locally and internationally.

Southeast Queensland’s Gold Coast is now globally recognised as Australia’s major marine industry hub and cruising destination for superyachts.

“As we rapidly approach the 2032 Olympics, we anticipate that demand will continue to build. This makes it imperative that we continue to plan and build premium quality berths for the future,” Mr Sammes said.

Sanctuary Cove Marina capabilities also extend to transient berthing opportunities for superyachts travelling south from Asia and Far North Queensland or traveling north from Sydney and beyond.

Ardo, Image courtesy of Morris Group

Marina-Francesca Rubi, Greg Shaw and Steve Sammes, Image courtesy of Sanctuary Cove.

RELAX IN PARADISE PORT DOUGLAS

Contact: Alex Barker-Re, 0414 835 128 alex@cbmr.com.au

EXCLUSIVE

MANAGEMENT

LARGE SCALE HIGH PERFORMING BUSINESS

Contact: Tim

0417 544 562 tim@resortbrokers.com.au

The Nationwide Motel, Gympie

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

MANAGEMENT RIGHTS

The Nationwide Motel Gympie is changing hands after current owners have operated for over 10 years. Paul Fordyce & Sue Borghero have owned and operated motels for many years and are now planning on spending more time with their grandchildren. Richard O’Connell from Tourism Brokers indicated the 22 room Motel located on the prominent Bruce highway position, has been running at high occupancies and new owners Peter Zeng & Tiger Huang plan to upgrade the property and continue its success into the future.

Garrick House Holiday Apartments, Nth QLD

MOTELS & OTHER

Alex Barker-Re of Calvin Bailey Management Rights, congratulates Cynthia and Andrew on the successful purchase of Garrick House Holiday Apartments in Port Douglas.

New to this industry, but well equipped with life’s experiences and the so essential business skills, Cynthia & Andrew are looking forward to the exciting challenges of managing this lovely Port Douglas 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 business model, as proven in the past.

Chidlow Joondalup RB

Andrew Tingate, Alex Barker-Re & Cynthia Tingate

Richard O’Connell, Tourism Brokers, Sue Borghero, vendor with Peter Zeng, New Owner

MR Sales

Tweed Heads West NSW

ID: 9093

Exclusive: Border Permanent Complex

Price: $2,485,000

Nett: $351,873

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

Old Bar NSW

ID: 8781

Exclusive: Rare Beachfront Property

Price: $2,263,320

Nett: Contact Broker

Contact Michael Philpott 0433 137 927 michaelphilpott@mrsales.com.au

Labrador QLD

Hight Net Holiday Business

Price: $3,620,000 Nett: $551,779

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

ID: 8239

Bongaree QLD

Profits Up On Bribie Island

Price: $926,226

Nett: $130,586

Contact Peter Ross 0447 710 891 peter@mrsales.com.au

ID: 8637

* Established resort property beautifully located and a short stroll to Four Mile Beach.

* Top class resort facilities and a delightful mix of accommodation options.

* No set o ice hours and no residential obligation to reside onsite.

* No costly real estate required to be purchased. All management facilities are exclusive use.

* Impressive current returns of over 25% with further great potential for growth.

* The vendor is willing to discuss a silent investment of up to $1.0m with suitable Buyers.

* Opportunities abound with this property.

Net Profit: $873,000 • B/Corp Agreements: 20 years • B/Corp Salary: $350,000 excl GST

Price by Expressions of Interest – Closing at 4.00pm 30th June 2023 The highest or any o er may not necessarily be accepted. In the first instance contact exclusive agent Calvin Bailey for full Property, Business & Financial Details. Confidentiality Conditions Apply.

Perfect match in Suncoast syndicate

By Grantlee Kieza, Industry Reporter

It’s

Over the last six months, a syndicate called the Suncoast Resort Group has brought together a team of industry experts to acquire three management rights businesses,

and they have expansion plans for the near future.

The properties they operate so far are the Coral Beach Noosa Resort and the Rimini Holiday Apartments, both in Noosaville, and the Atlantis Beachfront Resort in Marcoola. One of the partners, Tony Rossiter from Holmans Accounting, says the syndicate is the latest in the “matchmaking service” that he and financier Mike Phipps envisioned a dozen years ago.

“About 12 years ago Mike and I got together as a result of what we saw as a gap in the market,” Tony said.

Coral Beach & Rimini Assistant Manager Dee Markwell with Managers Liam Kennedy and Claire Markwell

“We wanted to assist individuals who were looking to manage a larger property and align them with individuals who had the capital to invest but did not want to manage it.

“So, we created TMC –Transaction Management Consultants. Provided it meets our criteria, we manage the transaction once we have identified an individual who wants to proceed on a particular property which is beyond their financial resources. Then we will look

to assist them with identifying investors and managing the transaction right through to sett lement and beyond.”

Liam Kennedy and his partner Claire Markwell have been members of the Suncoast syndicate since its inception when, over a cold beer, Liam talked with his friend Paul Grant from Mike Phipps Finance about opportunities in management rights.

“I’ve been involved in management rights for

about 18 years,” Liam said, “on the Sunshine Coast and on North Stradbroke Island which is where I’m from.

“I left the industry for a while to run a real estate agency. Claire was working inside our holiday business, but we realised that we missed management rights.

“I invited Paul to have a beer just to have a chat about what opportunities might be out there for us because we had a lot of our money put into other businesses. I said I couldn’t go

out and buy a management rights business myself but missed running them. Paul went away and jumped straight on the blower. Within days he came back and said a few people were keen to jump on board and work with us.

“He told me to go out and start looking for properties and we did.”

Liam and Claire live at the Coral Beach Noosa Resort and also run Rimini, a few hundred metres away.

The team at Resly are proud to support Liam and Claire at Coral Beach Noosa Resort

Idyllic Coral Beach

Noosa Resort offers a family-friendly, affordable escape close to the beautiful Noosa River.

When Liam and Claire first viewed the resort, admittedly they instantly saw its full potential and envisaged how much they could

improve the property and add value to the business.

Furthermore, the manager’s unit was a perfect size for them, and the location was outstanding, so the decision was made.

“At Coral Beach, we look after 47 townhouses, a mix of two and three bedrooms,” Liam told us.

“Located in Robert Street, Noosaville, just off Gympie Terrace. It’s a great location

because it’s not on a busy street but still a nice flat walk to everything in Noosaville.

“Coral Beach has been around a long time, about 30 years, it’s an older building so it’s very spacious and it’s been very well maintained by the body corporate. In fact, the body corporate is fantastic.

“Coral Beach has a range of amazing facilities to suit the whole family. It has three

swimming pools (one of them heated) three heated spas, as well as a couple of saunas.

“It’s also got a full-size tennis court that has recently been resurfaced.”

The Coral Beach townhouses are fully self-contained and set within more than a hectare of landscaped tropical gardens that Liam and Claire carefully tend to.

Liam said: “We have cleaned up the gardens and are working with body corporate to plant out more garden beds. We are also in the middle of renovating the front fence and redoing the logo.”

The property is close to the beautiful foreshore parklands and bike pathways lining the Noosa River, and the restaurants, boutiques, and cafes along Gympie Terrace.

Liam said he placed great importance on building strong relationships with unit owners and bodies corporate, and strong connections with his guests.

“I make an effort to call my owners regularly while Claire is really good at the front office property management systems,” he said.

Coral Beach Noosa Resort

“We took over Rimini on December 1, last year, and then Coral Beach on December 22, so we took on the challenge of two new properties just before Christmas!”

Rimini is a boutique property off ering 20 self-contained, selfcatering holiday apartments, each featuring either one or two bedrooms. All the apartments are located on the first and second floors.

The Suncoast syndicate also took over the management of Atlantis Marcoola Sunshine Coast on May 3 this year.

Atlantis is situated between Coolum and Maroochydore on 14 kilometres of one of the Sunshine Coast’s most pristine beaches. There are just 71 steps to the beachfront, and the property off ers everything from studio apartments to three-bedroom luxury apartments and stunning rooftop accommodation.

For 13 years the management rights there were owned and operated by Eric van Meurs, a former President of ARAMA, and one of the Suncoast syndicate members.

Mick Metcalfe, Eric’s right-hand man at Atlantis for fi ve years, is now the onsite manager.

“This has been a wonderful transition,” Eric said.

“The operation of Atlantis stays the same, the owners know everybody, but what we

to some one who understa

are doing now is bringing in additional resources because the syndicate members all have wonderful talents in management rights, and we are able to value add to the owners.”

Liam Kennedy said the syndicate allowed the management of each of

the three properties to be “a lot more strategic”.

“We can do better deals for the owners by using our group buying power to buy things like the same linen and wifi that helps bring down the costs,” he said.

Poolside at the Rimini Holiday Apartments

“Two of the properties that we’ve taken over haven’t seen a business model like ours. Coral Beach and Rimini were mum-and-dad operations.

“We’ve been here a while now and I think the owners and the bodies corporate realise

that we’re bringing a lot of experience and knowledge to the complexes as we push to grow the business.

“We can draw staff from other properties in the portfolio if they’re needed and if it’s busy at Coral Beach and we can’t

get to the phone, the call goes to another of the properties, so we don’t miss anyone.

“People no longer have to leave messages and wait for a call back. That way we don’t miss any opportunities for bookings.

“Claire and I have invested in the

syndicate; we have our future on the line and we believe our business model is a big advance in the way management rights operate. We’re going to copy and stamp the model on the next properties we acquire because we’re already looking at expansion.”

Atlantis Marcoola

Eric van Meurs says syndication seems to be taking on a greater emphasis with some of the bigger resorts.

“There’s a multitude of reasons why people would pull together a syndicate,” he said. “But in our case, we had a group of people who were already very heavily invested in the industry; a variety of people who brought diff erent skills and talents to the table. That included everything from accounting to lawyers, financial people and onsite operators, so we

covered the entire gamut of people who were interested and involved in the industry.

“We were looking to acquire really good quality properties to do all of it well. To acquire well, operate them well, build a good portfolio from a returns perspective, and perhaps down the track, whatever the end game could be in the future even a sale.

“By forming a syndicate, the members have the opportunity to operate multiple resorts and build a greater portfolio.”

Eric said a syndicate also created opportunities to streamline costs and make a better operation for the owners and for the body corporate.

“You can deliver an even greater level of service than perhaps a single operator like me could deliver at Atlantis just because of the constraints of time,” he said.

“You can now have some unique ways of operating the resorts - that can be everything from the method of acquiring contractors, tradespeople, managers, bulk purchasing, and finding other

Liam Kennedy and his partner Claire Markwell have been members of the Suncoast syndicate since its inception

ways to bring costs down for the bodies corporate and the owners to get a better return.

“As everyone involved in the industry knows it is a relationship industry, and the owners know with this syndicate they are gett ing high-quality management with resources that go beyond the onsite management team.”

Eric said the three properties acquired by the syndicate so far, fi tted certain important criteria. They were well-maintained properties, with strong bodies corporate, and “the financials made sense with respect to strong lett ing pools”. There is the potential for strong growth, and “good leadership

prior to the acquisition with good operators.”

He said his fellow syndicate members all had something to off er with experience in the diff erent aspects of the industry.

“If you have a whole host of silent investors and just one person who is trying to manage the property onsite and trying to maximise return for investors that is not our recipe for success,” he said.

“Our recipe is using the immense skills that exist among all the people involved in the partnership to make sure that every stage of the process from acquisition to onsite operation is done at the highest level.

Eric van Meurs

“We have a varied portfolio; one of the properties, Atlantis, is right on the sea, and then you’ve got the beautiful Gympie Terrace with the river at Noosa. So we’ll look to continue to diversify the portfolio and Suncoast may look at branding some of our properties to show people that if you’re a returning guest you have the option of a variety of resorts and that high-quality experience at all of them.”

Tony Rossiter said the syndicate identified Liam and Claire as exceptional managers.

“They have a long history in Noosa management rights, and they were introduced to us as people who wanted to create their own path and we were able to do that.

“If they were to use their own financial resources to buy management rights it would be a small business. whereas with our model we can get them into a much larger business and utilise their skills.

“Everybody wins that way.”

Paul Grant, from Mike Phipps Finance, was involved in negotiating the finance for the syndicate.

He said the group “includes previous and current MLR

owner/operators along with industry professionals.

“When negotiating terms with the lenders the strength of the group was recognised by all the banks and resulted in a very favourable finance package being offered.”

Mike Phipps says syndication allows exceptional managers who may not be able to acquire a large

management rights business by themselves to match their skills and experience to a suitable business.

He said the group of properties and the locations acquired by Suncoast presented a great syndication opportunity.

“In many cases,” Mike said, “where we are assisting groups to acquire multiple properties it’s the complexion

of the portfolio rather than any individual property that is appealing.

“For investors, most of whom are current or former owners of management rights, syndication is a way to invest in an industry they know. For unit owners, the benefits that come from having a highly professional management team in place generally result in better unit owner returns and outcomes.”

Rimini Holiday Apartments

Rimini Holiday Apartments

ResortBrokers: Leveraging our network with syndicates

Over the years, ResortBrokers has helped facilitate more than 30 management rights syndicates across Australia, from our state capitals to our coastal hotspots and developing regions. These syndicates have vastly expanded the investment horizons of all involved, far beyond what could have been achieved if the individual investors had acted alone.

Instead of the small-scale management rights typically within the financial grasp of a single investor, syndicates have the means to acquire management rights businesses on a far larger scale. This means high-end, blue-chip management rights businesses typically ranging from $3 million to $10 million in a prime corporate, tourism or residential location.

Management rights syndicates are a win-win for all involved. The ‘silent’ investor gets the great return of a going

concern business via a passive investment with no handson management. For the ‘active’ investor, who runs the management rights business on a day-to-day basis, it means significantly higher returns than if they had purchased a smaller business on their own, as they receive a salary as well as a return on their equity investment.

ResortBrokers’ extensive networks of buyers and sellers

in the management rights industry, built up over several decades and constantly expanding via our nationwide reach of over 30 brokers in every state and territory, puts us in a privileged position to make introductions happen. Whether you’re an experienced hands-on operator or an investor looking for a secure passive investment, we can connect you with like-minded people who share your financial vision.

To learn more, visit ResortBrokers’ dedicated syndication portal www.resortbrokers.com.au/learn/syndication