Resort News, September 2023

“I have the

I’m looking

entirely

Debra Tapiolas Manager, Surfers Horizons

05

The legal stuff...

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INDUSTRY REPORTERS Grantlee Kieza PRODUCTION Richard McGill

CONTRIBUTING THIS ISSUE... Andrew Morgan, Ben Ashworth, Commissioner for Body Corporate and Community Management, John Mahoney, Jonathan Hanaghan, Kelley Rigby, Laura Bos, Lynda Kypriadakis, Mike Phipps, Stephen West and Trevor Rawnsley.

Profile: Casa Bella, Gold Coast

29 Wine Skins at Wynnum golf course

Travel trends, industry insights and unmissable events

Hello and welcome to the September edition of Resort News.

If you’re in the world of short-stay and hospitality, you’re probably gearing up for the upcoming busy holiday season. Pools sparkling, walls getting a fresh coat of paint, apartments being spruced up, gardens getting tidied, and websites getting a makeover - I bet it’s all happening!

For those of you managing long-stay properties, perhaps you’re getting your building ready to weather the rainy season. Or maybe some of you lucky folks are taking a welldeserved mid-year holiday. Speaking of holidays, it seems like every other Aussie has either hopped over to Europe or is planning to. Paris, Italy, Greek Islands, seem to be the go-to destinations for 2023 but rewind to last year, and the limelight was on Japan. Here’s a fun tidbit: I had a chat with a savvy marketing

Mandy Clarke, Editor editor@accomnews.com.au

friend who believes that social media influencers might be the puppet masters behind these travel trends. They say last year’s Japan fever was all thanks to these digital trendsetters, and this year, it’s Europe’s turn to shine. Isn’t it amazing how social media is shaping our travel dreams?

As for me, once again I’m off to explore New Zealand’s stunning South Island later this year. Unlike Mike Phipps, my love affair with NZ is going strong and isn’t fading anytime soon. If you flip to page 20, Mike spills the beans on why he’s

not feeling the same way about the beautiful country anymore. While I’m penning this, our dedicated crew is currently soaking up wisdom and forging connections at the HICAP 2023 event in Sydney. And guess what? We’re also making waves as exhibitors at NoVacancy Hotel + Accommodation Industry Expo - the ultimate playground for all things hospitality. I’ve got the honour of moderating a panel at the Small Hotelier Summit alongside Kelley Rigby and among all the industry rockstars, she is sure to shine. At these events, I have the sheer privilege of wearing both the AccomNews and Resort News hats. When I get to rub shoulders with the crème de la crème of the national accommodation industry, I love to share how special and unique our management rights sector is. I shout from the rooftops about its allure and the boundless opportunities it offers. And locally? Make sure to mark

your calendars for some top Queensland events coming up over the next few months. First up, circle October 14 for the Resly and Women In Best of Tourism Awards at The Star Gold Coast. And nominations are now wide open for the legendary PRET Awards 2023, don’t miss this on November 25 at the Royal International Convention Centre. Back to this issue, as we shine the spotlight on ARAMA members, onsite heroes and MLR pros. This month, Damien Windle from PCS Finance shares some valuable industry insights, acquired from his years of experience in the sector. But that’s not all, we caught up with MLR legends Irene and Ian Manson. After nearly four decades in the biz, they’re now at the helm of the Gold Coast residential complex Casa Bella. Trust me, their stories are pure gold.

So, dive right in and enjoy this issue!

Mandy

The cost of breakups in management rights

By Grantlee Kieza, Industry Reporter

The soaring cost of real estate and rapidly rising interest rates are changing the nature of management rights, with many buyers opting to divorce the manager’s unit from the business. But it’s a practice that also comes with dangers.

Uncoupling is becoming common in places such as Queensland’s Sunshine Coast where the cost of property has gone through the roof, where what might have been a half-million-dollar manager’s apartment overlooking the beach a few years ago is now worth $1.5 million.

Now the manager’s residence often represents the biggest piece of the sale price for the property’s management rights and since it doesn’t produce an income, many potential buyers are saying they want the business but not the bricks and mortar.

For sellers, a management rights business becomes increasingly less att ractive to a buyer if most of the sale price is tied up in expensive real estate.

The uncoupled sale of their unit may instead represent a windfall.

Veteran management rights lawyer John Mahoney said:

“While I totally understand why decoupling is becoming common around places such as Noosa where unit values are disproportionate to the management rights income, I don’t think it is necessarily good for the industry generally. I think it detracts from the benefi ts of management rights that we have always tried to sell, and that is the onsite presence of resident managers.

“I think there are some

buildings that will always have an onsite manager purely by virtue of their size, particularly holiday buildings.

“However, in some smaller holiday complexes and some medium size permanent complexes, an onsite residential requirement will not be justified.

“In some areas it has just got out of kilter as the price of the real estate has doubled, in some cases even more, but the income has probably only gone up maybe 30 to 40 percent.

“So, it’s very hard to justify the purchase of a unit at that price based on the income that the business is generating.”

Mr Mahoney said in many uncoupled management rights, there were generally obligations in the agreement that the new managers had to be on site for a certain number of hours, and certain obligations to return to the site in the event of emergencies.

“Sometimes you might even specify that they have to be able to attend within a certain period of time whether that be ten or 20 minutes or something like that for emergencies,” Mr Mahoney said.

“But one of the problems with this is that it takes away one of the real advantages we’ve always highlighted for management rights, and that is that you’ve got a fellow unit owner living and working onsite. That’s particularly beneficial for various reasons including immediate availability.

However, it cannot always be justified in the types of buildings I have described.

“Whether we accept it or not there’s probably a bit more work to do when you live onsite because you’re always available, people will come and want to talk to you and ask you to do things. They can’t do that if the manager doesn’t live onsite.

“There’s an intangible benefi t to a building where living onsite is concerned, and we’ve always sold the idea of a resident manager as being one of the big benefi ts of management rights.”

Mr Mahoney said buyers generally were prepared to pay more for businesses when they didn’t have to reside onsite because it took away the need to spend money on an unnecessary unit.

“But I think that buyers who do that are losing the benefi t of the direct daily relationship and contact with unit owners,” he said.

John Mahoney

“That daily contact is important when you want to go for a top-up or some kind of variation, so it can make it harder to get them.”

Lawyer Frank Higginson, from Hynes Legal, said the first thing any buyer or seller thinking about uncoupling needed to do is to check the agreements and by-laws thoroughly to see if a specified manager’s unit could be sold, and if there was a stipulation that the manager had to live at the property.

“You need to have the committee on the journey with you,” Mr Higginson said.

“If you try uncoupling the real estate from the management rights without the committee being on the bus it’s going to be a difficult process.

“And if you don’t manage expectations around your job (about being on call for emergencies for instance) it can become really untidy, really quickly. The moment the committee says, ‘we’re not gett ing what we paid for’, it’s fatal.

“So, it’s vital to make sure the committee understands what you’re doing.”

Mr Higginson said uncoupling was something that’s becoming more popular, “big time”, because “you don’t need to borrow as much money to buy the real estate, so your return on investment is exponentially higher when you by the business only.”

“There is definitely a market for people buying business only to bolt them onto their existing businesses because you can aggregate and get some scale,” he said. “The market is now far more difficult for people that have more expensive real estate and a smaller net to sell, and more so with higher interest rates.

“There is obviously an economic reason to remove the real estate from the management rights, but I think it then really takes away what management rights was about at the start, which is the person living onsite who is there building relationships with the body corporate and the owners.

“If you live off-site, in a lett ing sense, you’re no diff erent to the agents down the road except that you’ve got them all in the one building and you’ve got a relationship with the body corporate, but functionally you’re not there.

“The whole idea of a resident manager is that you’re a resident – and it’s still called a Resident Lett ing Agents Licence. There’s a degree of accountability when the manager is living at the property and other residents knock on the door. That’s not a bad thing for the industry.”

Leading financier Mike Phipps said despite the trend for uncoupling he believed that “the own a unit/live onsite” example still underpinned the validity of the management rights model.

“Having said that savvy managers can reside off-site and ensure they are visible (and engaged) to owners, tenants and guests, thus alleviating any perceived lack of presence,” he said.

In a recent article for his client bulletin, Mr Phipps recounted the tale of a client who wanted to sell his management rights business but found the manager’s unit value now exceeded the value of the business.

“This is a not an uncommon dilemma when property prices rise as they have these past few years,” Mr Phipps wrote. “Unfortunately, capital gains on units are a double-edged sword whereby an increase in the unit value will often erode the total return on investment across the combined business and unit value.”

In his article Mr Phipps said it was important to show unit owners that after uncoupling the managers unit and MLR, the manager’s service would be as good if not better than before and to explain to residents when trying to decouple that the increased value of the managers unit made the management rights business less att ractive for a sale to experienced and high performing managers.

Col Myers, from Small Myers Hughes Lawyers, said there was no diff erence in the laws between Queensland and NSW as far as uncoupling management rights.

He said depending on the caretaking and lett ing agreements many new buyers

of management rights were opting to rent in the same building rather than buy a unit.

“I think that’s a really good compromise,” Mr Myers said.

“We are seeing more and more managers wanting to buy the business but not the unit. Some want to buy the business and not even live onsite but I shake my head at that because it goes against the whole foundation of management rights and the idea of resident managers.

“What’s the point of having longterm maintenance contracts if the manager is not onsite to deal with the lift that’s out of order or the repairs that have to be done urgently?”

Trevor Rawnsley, the CEO of the Australian Resident Accommodation Managers Association, said banks had always found management rights att ractive investments because they have both business value and real estate value.

“When you start breaking that up you do start to water down the beneficial aspects of management rights or at least the perception that an investor has skin in the game because he owns real estate in the building,” Mr Rawnsley said. “Committees can sometimes react in a negative way to the idea of uncoupling, thinking that service will suff er because that person is no longer likely to live onsite.

“It doesn’t mean off-site management can’t work, but anyone wanting to uncouple the real estate component from a management rights business must know that it comes with a warning.

“As soon as you step out of that scheme, you are likely to aff ect the good relationship that you have with your clients. That can be dangerous.”

Frank Higginson

Mike Phipps

Col Myers

Trevor Rawnsley © Adobe Stock, stock.adobe.com

Are resident managers a one-stop shop with bulk discounts?

you’re lucky enough to find one to do the work, a good onsite building manager has become the one-stop shop for all maintenance needs and repairs.

Resident managers are on a fi xed contract with their body corporates and on average are receiving about $45 an hour for their caretaking duties - a big diff erence compared to what other service providers charge.

By Trevor Rawnsley, CEO, ARAMA

In uncertain economic times, it’s never been more beneficial for a strata scheme to have a resident manager.

It has been proven time and time again that resident managers save a scheme money and provide much better service than any outside source. But in an age when trades are now routinely charging $100 an hour or more, and that’s if

Try gett ing someone out to do your lawns or trim your trees these days and you just about need to take out a personal loan.

Maintenance costs for all services required in strata schemes have risen astronomically. Prices for lift servicing, pool servicing, landscaping, electricians, plumbers, garage door repairmen, and fire services technicians have all gone through the roof. Roof repairers are hard to find because so many are doing insurance work. In Brisbane, most of the plasterers are working for big money on the new

casino along with most of the experienced painters and tilers.

I know of some schemes which have employed the same tradesmen for years but in a search to find someone cheaper have only found people not as skilled who are charging even more.

Resident managers can and do provide unit owners with great savings through their work as building managers because of the economies of scale, batching jobs together, and saving a small fortune by overseeing preventive maintenance that can significantly reduce repair work and insurance premiums.

Many resident managers even save schemes money by retaining service providers with whom they have a good working relationship, especially plumbers and electricians because if those tradesmen have worked at the same scheme for a long time they literally know the scheme inside out. They can get work done

much quicker, more efficiently, and with less expense.

The resident manager is able to make significant savings by batching jobs together. There might be three or four tiling jobs or two or three plumbing jobs and they can arrange the work to be done together so unit owners can keep costs down by gaining discounts on bulk jobs and saving on individual call-out fees.

Organising multiple jobs at the same time represents a significant saving over each individual owner organising their own repairs or maintenance.

The resident manager is also the person on the spot to ensure the complex is up to the minute with preventative maintenance. That manager is in a better position than anyone to perform this vital, cost-saving work.

Often if an owner or resident tells the manager there is an issue with a unit it’s almost a given that the same issue will be aff ecting other units as well.

The resident manager not only saves money for owners in the short term by having the work done promptly but that action stops costly longterm problems escalating. A good example of that is those flexible water hoses that you find in the bathroom, laundry, or kitchen. There’s a metal hose that runs from the mains water and they’ve got a limited shelf life, somewhere between 15- and 20-years maximum.

When they do fail, they fail catastrophically. It will often cause flooding in the bathroom and inevitably the loungeroom and it becomes a big insurance batt le between the body corporate and the unit owner.

When I was a resident manager, I noticed one of the hoses failed and it caused a problem in the laundry. Fortunately, it wasn’t a huge failure but when the plumber came out he told me, “look, all of these flexible hoses are the same age and they would all be just about ready for replacement, and you might consider replacing them all”.

I could see he wasn’t just trying to drum up extra work so I wrote to all the lot owners and told them I could get a bulk deal and the plumber would be out to replace them all over the course of a week.

I negotiated a better deal if the plumber was engaged straight away and told the owners it would be a lot cheaper to do it now than after a flood cleanup and repair of carpets. So I got a big uptake of people who said, “go ahead” and in some apartments, there were three or four hoses that had to be replaced. But at least I knew that at a certain date, all those flexible hoses were replaced.

Any unit owners who said no (and there were some who didn’t replace them) I had a record that I’d alerted them, and it was up to them to aff ect the replacement.

Insurance companies want preventive maintenance to occur and that brings in another benefi t of management rights in that resident managers can keep the cost of insurance down by making sure the scheme has a schedule of preventative maintenance in place. By batching jobs together at a complex for a tradesman with whom you already have a good relationship, you not only get a cheaper price for everyone, but you know you’re gett ing good quality work done.

I once put in about 50 air conditioning units at a building on the Gold Coast back in the day and it saved a heap on the cost of both the air-conditioners and the installation.

That’s what a good resident manager does - they facilitate those sorts of things on behalf of their clients to give them better value. It’s an add-on value of having a resident manager at a complex.

If you didn’t have an onsite manager in place doing that work then each of those unit owners would be either blissfully unaware that their hoses were about to perish, or they would each have to pay a call-out fee for a single job and it would take them forever to get work done if they could get the tradie to turn up. Tradesmen have become very scarce and picky these days.

Another area where a good resident manager can save his scheme money is in the maintenance of smoke alarms.

A good building manager will write to the unit owners and say, “I’ve negotiated a rate to replace or service all the smoke alarms together at the same time each year” and they’re done for 12 months.

If an individual lot owner tried to get a smoke alarm detector serviced it’s usually, “I’m not going to come out for one and if I do it’ll cost a lot more”. But by batching the work together for something that’s a legal requirement everybody wins.

Building management soft ware provided by the company MYBOS is also helpful for a resident manager to schedule regular maintenance. It allows the manager to produce reports in advance and update them and send those reports to unit owners to say, “this is the scheduled maintenance that has occurred in the scheme”.

One of the great things is that at the end of the month, you can print or view your reports and it will list all the jobs that you have to complete or any maintenance

defects, and it shows the schedule of maintenance that must be done. It is simple soft ware to use, and it makes it much easier to manage a building, keep on top of the work, and keep costs down.

ARAMA has industry partner organisations such as Programmed Property Services and Wilko Painting which has plasterers and tradies, as well as their core work which is painting. Programmed has huge maintenance companies that work with them. If you go to Programmed, you’re more likely to get trades responding quickly.

Good onsite building managers want to go the extra mile by helping owners as much as they can because it’s a two-way street. Any time that an owner comes to a resident manager wanting repair or maintenance

work, that owner benefi ts from the resident manager’s knowledge and experience. We’ve had many instances of managers helping owners get work done, saving them money, and in return being given the lett ing contract for the unit when the owner moves out. There are many opportunities to provide additional services for owners and when you do provide additional services it creates a sense of loyalty between both parties.

So, when you ask for something like a vote on your top-up, or when an owner-occupier decides to rent out his unit, they will first consider the helpful onsite manager before some dodgy off-site real estate agent who they don’t know. That’s not the only reason why good resident managers off er these extra benefi ts for owners, but there are certainly benefi ts for all that comes from providing excellent service.

Everyone in management and lett ing rights is in the service industry and good service like bulk buying is beneficial for everyone, it’s a win-win!

Bulk buying is beneficial for everyone

Same, same - but different? Top ups & exercising options

Keep your agreements healthy and valuable

By Ben Ashworth, Senior Associate, Small

option terms that are yet to be used. To take up an option you must “exercise” it. Until an option has been exercised strictly in accordance with the conditions stated in your agreement, the option period is not actually included in your current term and your agreement will end when the current term ends.

Exercising options

The length or duration of your agreements is usually called the “term” and your “total term” might be a single period, for example, ten years, or it might be made up of an initial term and then a series of option periods, for example, fi ve years plus fi ve years plus fi ve years and so on…

This article looks at how managers can extend their current term, as well as the total term of their agreements, and how these are actually two entirely diff erent, but very similar things to do. The “current term” of your agreement is just that. The current period your agreement is in and does not include any

It is important to remember to exercise your options before they are due to commence. Some options exercise automatically, without you needing to do anything. But for most managers, you will need to follow a specific process as set out in your agreements. This generally means giving notice at least three months before your current term ends. If you fail to complete the option exercising process by the deadline set out in your agreement, you lose the option, plus every other unexercised option after it. This means, for example, that an agreement that has a total term of 25 years could end after just fi ve years if the options are not exercised correctly.

Topping up

This is the process of extending the total term remaining under your agreements. In NSW, topping up is generally done by replacing the existing agreements with new agreements that renew the term up to the maximum 10-year term allowed under the legislation. In Queensland (and most other states and territories), topping up is generally done by varying the existing agreement by creating a new option term and adding it to the end of the current total term in the agreements. For managers new to the industry, it can be easy to mix up the diff erence between exercising an option and topping up your agreements. It is important to note that when you top up your agreements you are extending the total term of your agreements, but you are not extending the current term of your agreements.

If you are planning to top-up your agreements around the same time that you are due to exercise an option, you will

need to make sure that the process to exercise your option is still completed, regardless of whether you complete the top up process or not.

To help avoid any confusion or mistakes, it is highly recommended that all managers track the following dates in their calendars:

• The first date when you can start exercising each option in your agreements.

• The last date you can exercise each option in your agreements.

• For agreements with a maximum total term of ten years, the date the total term remaining falls below eight years.

• For agreements with a maximum total term of 25 years, the date the total term remaining falls below 20 years.

• The date at least two months before the date you need to submit motions to the strata manager to place owners’ motions on the agenda of the AGM. When these dates pop up, reach out to your solicitor, and confirm what you need to do next to keep your agreements healthy and valuable.

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

Tenure is critical to the success and value of your management rights business.

Myers Hughes

Planning and the battle for the soul of our communities

the population level, by their postcode. This is inequitable.”

This may not be news to some, but it does give pause for thought.

Your postcode determines the physical ease with which you can access social and economic opportunities, particularly jobs and training.

By Laura Bos, General Manager, SCA (QLD)

Diversity, equity and inclusion are all things many of us are more cognisant of than ever. We try to practise them in our workplaces and social life more consciously than ever. But how well do we practise them as a society when we construct our cities and neighbourhoods?

I would argue not to a standard we would accept in other settings.

What do I mean by this?

Well, I will quote Dr Michael Fasher, a respected physician and clinical lead on these matters as they pertain to health. “A young Australian’s chance in life is predicted, at

All this information would lead most people committed to an equitable and inclusive society to ask – how can we help more people live in postcodes where they have better opportunities? This may also prompt bigger questions perhaps of how we can make our children’s chances in life less about where they grow up.

Unfortunately, despite the sloganeering some of us engage in, those of us who live in postcodes where people have the best chance of success in life often don’t have the best record of being equitable and inclusive about who lives in their neighbourhood. NIMBY sentiment runs deep in many of us; and many of us also have equally deep pockets.

A pertinent example of this is ironically playing out on the national stage now – given how housing policy is on the tip of everyone’s tongue it seems only natural.

In well-heeled Lilyfield (just six kilometres from Sydney CBD with an average house price of over $2 million) a local residents association is fighting a project to convert a run-down former

factory and bakery into “89 apartments and small public square with rental space for local arts workers.” Sounds like development done right in every sense of the word. Despite this, arguments drummed up against the project include ‘more homes undermining community safety’ and ‘sun shadows’. Flimsy arguments at best and disingenuous or conceited ones at worst. Allowing more young people, and people of diverse backgrounds to live in Lilyfield would help their educational and employment opportunities, given the easy access to the CBD, a major University (UTS) and the State’s largest TAFE Campus. Unfortunately, it seems people in well located suburbs don’t want to share the benefits of living there with others. Whilst the example I have used is obviously Sydney focused, anyone in a large city on the east coast of Australia can think of a similar example in their backyard.

In my own backyard of Yeronga (just 5km from Brisbane CBD and in an infrastructure rich - schools, transport, and hospitals - suburb), The Paint Factory project that will rejuvenate an ugly old paint factory and industrial area into a vibrant, culturally rich arts and dining precinct with medium density living is experiencing a similar community backlash.

To fix big community problems we need to think big. Solving housing problems and encouraging social inclusivity will

not be solved by small thinking. When we preach equity and inclusion, none of us are going to get there 100 percent of the time. We are all human. But shouldn’t the simplest method of inclusivity simply be doing nothing by not opposing development that would allow a more diverse range of people to live in your neighbourhood? Isn’t making housing more affordable the epitome of equity given its status as an incontrovertible human need?

I don’t write this to badger people or proselytise, but to give us pause for thought. Most of us would welcome meeting new and interesting people from different backgrounds if they turned up on our doorstep with good intentions. Ironically, this is what most people do when they move into new developments in our neighbourhoods.

So, let’s welcome considered development in our suburbs, the kind that inevitably leads to vibrant new precincts that creates more housing and business opportunity and gives us more activities locally. Who wouldn’t want more exciting stuff to do within a walking distance or even a short drive?

And as a happy by-product, let’s welcome the opportunity for a diversity of people, culture and experience in their neighbourhoods. This can only come if they embrace diverse housing. Diversity, equity, and inclusion isn’t just a slogan, it’s something we should practise right on our doorstep.

© Adobe Stock, stock.adobe.com

Clarifying conflict of interest

and Mixed Use Development Act 1993 (MUD Act).

Conflict of interest under body corporate legislation

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

The term ‘conflict of interest’ is used widely in a variety of non-body corporate situations. Sometimes confusion surrounding its use in the body corporate context is, therefore, to be expected.

This article will canvas and clarify conflicts of interest under the body corporate legislation.

While this article is primarily targeted at community titles schemes regulated by the Body Corporate and Community Management Act 1997 (the BCCM Act) and its associated regulation modules, we will touch briefl y on subsidiary bodies corporate under the Building Units and Group Titles Act 1980 (the BUGT Act) and higher-level bodies corporate under the Sanctuary Cove Resort Act 1985 (SCR Act), Integrated Resort Development Act 1987 (IRD Act)

Conflict of interest under the Small Schemes Module

Importantly, a conflict of interest can only arise under the Standard Module, Accommodation Module and Commercial Module when voting at the committee level. A committee member is required to disclose any direct or indirect interest in an issue being considered by the committee if it could conflict with the appropriate performance of the member’s duties. If a voting member discloses an interest in an issue, they cannot vote on any motions connected with the issue.

The legislation also bars them from using proxies to influence committee decisions where a conflict of interest exists. A proxy holder must not exercise a proxy vote if they are:

• aware that the committee member who gave them the proxy would be required to make a disclosure (in which case, the proxy holder must disclose the member’s interest); and

• required to disclose their own interest in an issue.

Very similar conflict of interest requirements can be found in the BUGT Act, MUD Act, IRD Act and SCR Act.

Diff ers slightly from the provisions in the other regulation modules discussed above. This is owing to the size of committees under this module, which can be as few as one person or potentially a maximum of two members. Under the Small Schemes Module, it is possible for the body corporate to authorise a committee member to vote on an issue, despite having a conflict of interest.

Is there an actual conflict?

As outlined above, the fact a committee member has an interest in an issue being considered does not automatically prevent the member from voting on the issue. The key question should be: does the interest conflict with the appropriate performance of the member’s duties in considering the issue?

Case example: Larnaca Court [2016] QBCCMCmr 369

A motion was proposed to engage the chairperson to retain and instruct a law firm to represent the body corporate in appeal proceedings in the Queensland Civil and Administrative Tribunal (QCAT). The applicants argued that the chairperson should not have voted, as he

was “directly involved in the substantive dispute” that was the focus of the initial adjudication application and subsequent appeal. The adjudicator acknowledged that the chairperson (like any other owner in the scheme) would naturally have an interest in the outcome of the appeal. Critically, the adjudicator remarked that any interest the chairperson had “in the conduct and outcome of the QCAT proceedings was aligned with that of the body corporate as respondent”. Consequently, it was determined that the chairperson’s interests were not in conflict with his duty to consider the motion. Rather, his interests were consistent with the interests of the body corporate.

Conversely, the votes of the remaining three committee members (who were the appellants, or the representatives of appellants in the QCAT proceedings) were correctly excluded due to conflict of interest. The adjudicator observed that by voting against a motion that “sought to protect the legal rights and interests of the body corporate”, they were voting in their own interests. As the case example above illustrates, it is imperative to recognise that the existence of an interest in an issue is not necessarily enough to demonstrate that there is a conflict of interest.

Reality testing yourself

If you believe a vote was cast by a committee member with a conflict of interest and you are seeking to lodge an application, there are certain factors to bear in mind.

Relying on a procedural error

Arguably, the most important consideration is whether the voting outcome changed because of the inclusion of the vote in question. If the outcome of the committee’s decision would have been the same (with or without the vote) there’s nothing substantial to be gained by lodging a dispute application if the voting error was your sole focus.

The BCCM Office does not hand out penalties to individuals who vote with a conflict of interest. You must indicate the outcome you are seeking when you lodge an application, not simply highlight a procedural error.

Consider each motion on its own merit

Having a conflict of interest in a matter does not prevent a committee member from proposing a motion to the committee. The legislation requires the committee to act reasonably when making decisions.

The motion may in fact stand on its own merits and the committee member must abstain from voting if they declare a conflict. For instance, consider the situation where a committee member proposes that their brother’s pest control business undertakes termite prevention work on common property. It may be in the body corporate’s best interests to engage this provider if:

• the work will be completed at a reduced price; and

• the provider is appropriately qualified to perform the work.

General meeting voting

Contrary to common misconceptions, there is no conflict-of-interest provision when owners vote at a general meeting. It only applies at committee level.

At the general meeting level, your right to vote is based on lot ownership. If you own one lot, you are entitled to

one vote per motion. If you own multiple lots, you are entitled to a corresponding number of votes per motion.

If an owner proposes a motion at a general meeting (for example, seeking approval to install solar panels on a common property roof for the benefi t of their lot) they can cast a vote on their own motion. Even though the owner has an interest in the motion, it does not preclude them from voting at a general meeting.

It is important to be mindful that, while a conflict of interest does not apply at the general meeting level, other avenues may be available if your body corporate makes objectively unreasonable decisions. For instance, if a general meeting motion (benefi ting just a few, or even one lot owner) is successful, it raises a question about reasonableness, not conflict of interest. Section 94 of the Act requires the body corporate to act reasonably when making, or not making, a decision.

If you wish to lodge a dispute application with our office on this basis, having first attempted to resolve the matter internally, you must demonstrate why the decision was unreasonable and, if implemented, the detriment of the decision.

Eligibility to be a voting committee member

We are occasionally asked whether someone can be on the committee if they have a conflict of interest. However, conflict of interest is not applicable in this situation.

To be on the committee, an individual must satisfy the eligibility criteria set out in the legislation. For example, you are not eligible to be a voting committee member if you are an ‘associate’ of a body corporate manager, service contractor or lett ing agent.

Many relationships fall within the definition of ‘associate’, including:

• marriage, de facto relationship or civil partnership;

• parent and child;

• employer and employee;

• fiduciary relationship; and

• a relationship in which one person is accustomed or obliged to follow the instructions or wishes of the other person. For a comprehensive list of the relevant ‘associate’ relationships, you can refer to section 309 of the Act. You can read about the eligibility criteria in further detail on the BCCM Office website.

Removal for breach of code of conduct

It is worth noting that the code of conduct for committee voting members in the BCCM Act also refers to an obligation on committee members to disclose any conflict of interest in a matter before the committee. When relying on the code of conduct provision about conflict of interest (as opposed to the general conflict of interest provision under the regulations), the focus shift s to removing committee members.

You can read more on the BCCM Office website about the process prescribed under the legislation for removing committee members based on code of conduct breaches.

Bodies corporate not regulated by the BCCM Act

Higher-level bodies corporate under the SCR Act, IRD Act and MUD Act have a code of conduct for voting members with a similar conflict of interest requirement. As with the code of conduct under the BCCM

Act, its main function is the removal of committee members. There is no equivalent code of conduct for committee members in subsidiary bodies corporate regulated by the BUGT Act.

Nominating representatives for conciliation

We are regularly asked whether a conflict of interest applies when nominating representatives for conciliation. There are no specific legislative provisions about conflict of interest in this situation - ultimately, the final decision about who can attend a conciliation session rests with the conciliator.

It is often the case that the body corporate will be represented by voting committee members (normally two) in a conciliation. Conciliators do not make determinations about whether the representatives selected by the committee have a conflict of interest. Rather, conciliators play a more facilitative role by assisting the parties to reach a good-faith agreement.

Conciliators may, however, employ other strategies where there is a perceived conflict of interest. For instance, conciliators can:

• educate participants about the committee’s duty to make reasonable decisions;

• suggest ratifying the decision made in conciliation at a committee meeting or a general meeting; and

• suggest representation by an additional committee member who does not have a perceived conflict of interest.

The conciliator’s approach will depend on the circumstances of each relevant dispute. You can read more about representation at conciliation in Practice

Direction 11 on our website.

We hope that this article has clarified the narrow application of conflict of interest under body corporate legislation. Given the potentially harmful eff ects of unchecked conflicts of interest within bodies corporate, it is fundamental to be equipped with knowledge of the relevant legislation.

This article has clarified the narrow application of conflict of interest under body corporate legislation

Damien Windle

Damien says you can bank on the future of MR

By Grantlee Kieza, Industry Reporter

After dedicating nearly two decades to managing his Brisbane-based business, PCS Finance, Damien Windle’s experience and insights within the Management and Letting Rights (MLR) industry highlight his dedication to fostering growth, supporting clients, and facilitating positive change for the future of the industry.

PCS Finance specialises in handling residential and business lending, focusing predominantly on management rights while allocating around 10 to 15 percent of its services to other financial aspects.

Aside from PCS Finance, Damien is also a partner in TDK Management, which identifies MLR opportunities and specialises in off-the-plan developments. TDK plays a pivotal role in providing support to onsite managers, with a keen focus on committee management and exceeding owners’ expectations regarding caretaking duties. Damien collaborates with partners Troy Edwards and Kelvin Cotter, each contributing their unique expertise to TDK’s success.

It is MLR businesses that Damien expresses an affinity for, and all the mumand-dad investors who play a significant role in the industry. He att ributes this to the fact that these operators embody the timetested qualities of diligence, loyalty, and exceptional customer service, which they consistently demonstrate.

He said: “Most people who buy into MLR businesses are genuine, hard-working people seeking a shift in their career and lifestyle. They value my knowledge and experience and depend on my guidance to eff ectively operate their businesses. I nurture strong working relationships with my clients and deeply respect their ambitions and eff orts.”

Damien grew up in the picturesque town of Warwick, surrounded by the natural beauty of the Condamine River in a town that boasts some of Queensland’s finest sandstone buildings.

“It’s a beautiful place and a great town to grow up in,” he said. “But I moved to Brisbane in 1992. My wife Hayley and I now have two grown-up boys aged 22 and 20.”

And when he’s not in the office Damien likes to water-ski and fish…

“For the last 15 years or so we’ve had a small place on the Clarence River at Grafton, and we love going there to relax and spend time on the water.”

PCS Finance, located in Fortitude Valley, started as Professional Corporate Services under the leadership of management rights veteran Steve Burton on the Gold Coast in 1995. Damien joined the company in 2004, sett ing up and owning the Brisbane office while Steve managed the Gold Coast branch. Damien’s specialisation lies in sourcing finance for individuals purchasing MLR businesses, a skill he cultivated from his previous banking career.

“I joined the bank in 1990 and spent 13 years there,” he said.

“For the last 12 months of my banking career, I learned about the management rights industry because I was funding clients who wanted to buy MLR businesses.

TAKE THAT GET AWAY NOW!

Damien’s specialisation lies in sourcing finance for individuals purchasing MLR businesses

“Here I met Steve Burton who was already operating as a broker. I spent 12 months throughout 2003 learning about this industry and realised it was a great opportunity for me to specialise in it. I felt I had enough knowledge and I suppose confidence, to give running my own business a crack.

“I enjoy the sector and the whole demographic of people who are att racted to it. Back then, we were one of the only brokers specialising in management rights, so the opportunities were abundant. We could really get out teeth into it and the business grew.”

Damien said buyers have always been att racted to management rights because of the many opportunities it presents.

“Management rights off er flexible working hours and a chance to own a business with manageable risks. Most buyers are confident to invest in management rights because banks will consider a high lending ratio on them. They figure if banks are willing to invest 70 percent of their own money, then a 30 percent investment by a buyer is a prett y good opportunity.”

Despite att acks on the industry over issues such as 25-year agreements Damien’s outlook remains very optimistic. He firmly believes in embracing change, viewing it as an opportunity rather than a threat.

“Often in business, we think of the worst-case scenario,

but that scenario usually never happens,” he said.

“Management rights is not bulletproof but often change is more positive than you imagine.”

Damien’s positive vision extends to management rights potentially playing a crucial role in addressing the current housing crisis.

He explained: “It wasn’t long ago that everyone was worried about a massive over-supply of units in places such as Newstead and Fortitude Valley, but now all those properties are occupied, and we need more towers and townhouses to meet demand. Those buildings will need people to manage them, MLR is part of the solution and that’s another reason why I think the industry will continue to go from strength to strength.

“I think the government has far too much to lose by drastically changing legislation around management rights, especially during a housing crisis.

“If they start tweaking laws around the MLR industry it’s going to have a negative eff ect on the people who manage those properties, which in turn could make the housing situation much worse.

“No government wants that.”

Damien’s journey within the sector is a story of dedication shaped by a genuine love of management rights. His ongoing commitment to growth and positive change stands as an example for industry peers and newcomers alike.

Damian Quinn Isabella Mansell

Leasebacks versus letting appointments with guaranteed return

By John Mahoney, Mahoneys

In recent months I seem to have fielded many calls and emails about leasebacks and other methods of guaranteeing minimum income levels to owners.

Leaseback

A leaseback or some other form of guaranteed owner income (typically a standard lett ing appointment but with a guaranteed minimum return to the owner) are often used by managers as a way of att racting to the short-term lett ing pool owners who are concerned about inconsistent or potentially lower returns. These also have the potential to generate significantly greater income for the manager.

For those readers unfamiliar with the term ‘leaseback’, it is the name given to the leases or tenancy agreements between an owner, as landlord and the manager or a company related to the manager, as tenant under which the tenant can sublet the apartment for short-term lett ing.

No prescribed form (unless it is intended to register the lease) – note that a leaseback is not a residential tenancy agreement and the RTA Form 18A should not be used. Mahoneys have developed an appropriate form of lease for our clients.

Generally not assignable to a new manager without landlord consent (but that can be covered in the conditions)

The existence of even one leaseback requires disclosure to other owners in the lett ing pool due to conflict of interest

Where the manager is the tenant there is the potential that GST is payable on the tariff as the accommodation for the guest is being supplied by the manager in the manager’s own right not as agent for an owner

Where the manager is the tenant, the tariff paid by guests must not be paid to the manager’s trust account but must be paid to the manager’s general account

To avoid the two problems above, it is important that the tenant not be the manager but that the tenant appoint the manager to act as the tenant’s agent to sublet the apartment

Can be for a fi xed term (but in most cases the MIA provisions of the Corporations Act applies and can be terminated on 90 days notice)

Potentially locked into ongoing liability despite market downturn (eg Covid)

Rent received by the tenant above the payment to the owner is not subject to GST

Seen by some valuers as a liability potentially results in a lower multiplier

As it is a lease, the owner receives an agreed rent as set out in the lease irrespective of the return achieved from the short-term sublett ing of the apartment by the manager or related tenant. There are two basic types of guaranteed return lett ing appointments. The first is where the manager simply guarantees the owner a minimum net return and the owner benefi ts from anything above that. The second type is where the manager retains anything received above the guaranteed net return to the owner - usually described as a performance bonus.

I am often asked which one is best - a leaseback or a guaranteed return lett ing appointment? The answer will

depend on the circumstances. I thought it would be useful to put together a table which both describes and compares the features of each. Readers can consider these in trying to work out what is best for them. Note that the table below relates to Queensland law and there will be some diff erences for the other states.

As mentioned above, which one is best will depend on a manager’s own circumstances. However, if a leaseback is the preferred option, have regard to the comments above. In particular, do not use an RTA Form 18A, do not have the manager as the tenant and make sure you make disclosure to your other owners in your lett ing pool.

Lett ing appointment with a guaranteed return

Prescribed form but with special conditions

Assignable to a new manager

Similar disclosure requirement

No GST on the tariff – treated like any other lett ing appointment

Tariff s go to the manager’s trust account like any other lett ing appointment

Can be terminated on no more than 30 days notice

30 days termination allows manager to avoid ongoing liability

Rent received by the manager above the payment to the owner (typically the performance bonus) is subject to GST

More widely accepted by valuers and likely to be valued at a higher multiplier

Small business technology investment & skills and training boost

must be less than $50 million for the income year in which you incur the expenditure.

The expenditure must:

• Already be deductible for your business under taxation law.

• Be incurred between 7.30 pm AEDT March 29, 2022, and June 30, 2023.

By Jonathan Hanaghan, Director,

On March 29, 2022, as part of the 2022 to 2023 Budget, the then government announced it would support small business through these new measures. The measures became law on June 23, 2023.

Small business technology investment boost

Small businesses (with an aggregated annual turnover of less than $50 million) can deduct an additional 20 percent of the expenditure incurred for the purposes of business digital operations or digitising its operations on business expenses and depreciating assets such as portable payment devices, cyber security systems or subscriptions to cloud based services.

An annual $100,000 cap on expenditure will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.

What is the eligibility?

To access the small business technology investment boost, your business needs to be a small business entity. Your aggregated annual turnover

If the expenditure is on a depreciating asset, the asset must be first used or installed ready for use for a taxable purpose by June 30, 2023.

What can you claim?

Eligible expenditure may include (but is not limited to) business expenditure on:

• Digital enabling items: Computer and telecommunications hardware and equipment, software, internet costs, systems and services that form and facilitate the use of computer networks.

• Digital media and marketing: Audio and visual content that can be created, accessed, stored, or viewed on digital devices, including web page design.

• E-commerce: Goods or services supporting digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscriptions to cloud-based services and advice on digital operations or digitising operations, such as advice about digital tools to support business continuity and growth.

• Cyber security: Cyber security systems, backup management and monitoring services.

Where the expense is partly for private purposes, the bonus deduction can only be applied to the business-related portion.

What about depreciating assets?

The bonus deduction can also apply to expenditure on a depreciating asset. The asset must be first used or installed ready for use for a taxable purpose between 7:30 pm AEDT March 29, 2022, and June 30, 2023. Repair and improvement costs for depreciating assets are also eligible for the bonus deduction. This is provided they are incurred during the relevant time period.

What can’t you claim?

You can’t claim the following expenses towards the boost:

• salary and wages;

• capital works costs;

• financing costs; and

• small business skills and training boost. Small businesses (with an aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 percent of expenditure that is incurred for the provision of eligible external training courses to their employees by registered providers in Australia. Businesses may continue to deduct expenditure that is ineligible for the bonus deduction in accordance with the existing tax law.

This measure applies to expenditure incurred in the period commencing from 7:30 pm AEDT March 29, 2022, until June 30, 2024.

What is the eligibility?

To access the small business skills and training boost, your business needs to be a small business entity. Your aggregated annual turnover must be less than $50 million for the income year in which you incur the expenditure.

The expenditure must be:

• for the provision of training to employees of your business, either in-person in Australia, or online;

• charged, directly or indirectly, by a registered external training provider that is not you or an associate of yours;

• already deductible for your business under taxation law; and

• incurred within a specified period (between 7:30 pm AEDT or by legal time in the ACT.

What can you claim?

The bonus deduction is available for expenditure for the provision of training to one or more employees of your business.

The training provider must meet certain registration criteria for the bonus deduction.

You can check for registered providers at training.gov.au.

Training expenses can include incidental costs related to the provision of training, provided they are charged by the registered training provider, such as the cost of books or equipment needed for the course.

In summary

These recent incentives are very broad and will apply to most small businesses. While they are generous there are annual caps that apply.

One point to note is that the skills and training boost applies to June 30, 2024, while the technology and investment boost (which is more common) only applies to June 30, 2023.

As always, please speak with your industry accountant if you have any queries and how this may apply to your business.

Jonathan Grant Accountants

Selling: Managing employees

With the sale of any business, all the assets owned by the business are transferred to the buyer at settlement. One of the most important assets of any business is the employees. At the best of times, the importance of good quality employees is something that cannot be overlooked in any business, no matter what the industry. This is highlighted at present, with it being very difficult to find workers across many industries. The management market is very tight and it’s difficult to find good quality employees to fill roles.

In addition to finding workers, the standard of employees can make or break a business. Therefore, when selling a motel, it is in the best interests of both buyer and seller to make the transition as smooth as possible for all concerned, especially the employees. This, I feel, is something that is often overlooked or taken too lightly.

When an employee discovers that the business they work for is being sold, the common questions always amount to the same thing - concern! Is my job safe? What will we do? Where will we go? How will we live? If it’s not the motel owner worrying about the staff leaving when they find out the motel is for sale, it’s the staff worrying about whether they will have a

job or not, going forward. This results in employees feeling nervous about their future and they start looking for another position elsewhere. Sellers are often unsure as to whether they should advise their staff that they are selling in case they fear for their job and then leave. In my experience, I have found that the staff often know just about everything that is going on around the business and find out very early in the process that the business is for sale. Very few businesses can function effectively without good quality employees, therefore their jobs are, in most cases, going to be secure. Most new owners initially retain all the existing staff to ensure a smooth transition during and after settlement. Obviously, this is different for managers, who may not be required if the new owners are going to operate the business themselves. They will however still need the staff other than management in these instances. That being said, there are many motels run under management nowadays and the sale transactions often include the retention of all employees, including the managers.

How the motel operator manages the sale with the staff is going to determine whether staff want to leave or remain satisfied that their position will be safe upon a change of ownership. Upfront communication with the staff about the security of their position will hopefully put their minds at ease, although there is always the fear of the unknown, being the new owner and what changes within the business may occur. Trying to hide the fact that the owner is selling, ends up with the employees finding out the business is for sale through another source. This results in that person feeling as though their employer is being dishonest. It can be difficult to try and hide the fact that you are selling your business when there are people walking around inspecting the property, oftentimes potential buyers talk openly about the business within earshot of an employee, showing limited discretion.

Sometimes an interested buyer may turn up to the motel ‘on the quiet’ and stay as a guest, having not informed the broker or owner that they would be on site. These people often have a tendency to discuss the

business within earshot of the staff, be it the cleaners outside their room, or the staff in the restaurant. Some will even ask the reception questions about the business which are more in-depth than the usual small talk with a travelling guest. Within one fell swoop the whispers then start and suddenly everyone knows the motel is for sale, and the staff is left in a state of concern. Selling a motel utilising an ‘off market’ campaign has been extremely successful in recent times and as such is an excellent way to keep unwanted interest in the business away. A seller may see unwanted interest in their business as those who do not have a genuine interest in buying, but rather a desire to find out sensitive information for their own purposes. Employees may be part of this list however this only extends to the point when prospective buyers wish to inspect the property. When to advise the staff of a marketing campaign or pending sale is a tough decision, however history and experience has shown that upfront communication can save a lot of issues down the track.

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

I don’t love you any more

By Mike Phipps, Mike Phipps Finance

As some of you will know I’m a bit of a music nut. I find lyrics interesting and often ponder the meaning in popular songs. I’m also fascinated by the influence of love found and lost in modern music. I bet if you were forced to listen to only songs that didn’t mention love, relationships, heartache, and so on… you’d soon get very sick of Midnight Oil preaching to you.

Don’t get me wrong, a red-hot band no doubt and a bit of preaching never hurt, I guess. Maybe just dialled down a notch or two. Anyway, I’ve got the headphones on with songs of love on the playlist and a litt le pain in my heart. It’s confession time dear readers. I’ve been having a love aff air and sadly I think it might be over. I’m probably partly to blame but there can be no doubt my love interest is not what she used to be. She was once carefree, adventurous and a bit wild. No doubt she is still beautiful and has a certain charm, but her personality is not as alluring as it once was.

I recall being smitten when first we met, many years ago. She seemed a slightly dangerous proposition and reminded me a bit of my other great love,

before woke lay ruin. Now she’s gone down a similar path with sad and regrett able results. Now, before you all start messaging the managing director and encouraging divine retribution, or some singularly unpleasant medical procedure let’s be clear. My first great love (other than the MD of course) was my country, with New Zealand a close second. I’ve just returned from a month in In Zid and my oh my, the country is prett y but some of what’s going on there is not. I’d like to think there are lessons to be learnt but I fear that horse (or sheep) has bolted. It’s almost like the Jacinta era has transformed the country into a broke and woke shadow of its former self.

I remember back in the day writing about the diff erence between road works in Australia and NZ. In both countries

there’d be 10 blokes on the job. In Oz eight would be on safety signage and traffic control and two would be on the tools. In NZ the opposite. Now, in NZ there’s a level of signage and cones at roadworks that defies description and no one on the tools. The bloke who owns the cone company must have mates in high places coz they have one every metre for kilometres when there’s even a hint of impending works. They also slow traffic to 30kph, and I thought 60kph in Oz was slow. This with no sign of anyone actually doing anything remotely associated with improving and maintaining roads. I reckon it’s all smoke and mirrors. Create the illusion of stuff happening while doing very litt le. Sound familiar?

One NZ political party has stated that they would happily take money from China to fund roads and infrastructure. If that

isn’t a sign of democracy on the brink, I don’t know what is.

Anyway, enough of the political rant. What of the NZ tourism experience in the era of woke and broke and what lessons may there be for Australia? Let’s start with my favourite whipping boys, the airlines. Our sneaky friends at Virgin continue to sell business class tickets at full price but have closed their airport lounges. You are advised of this not when you buy the ticket but when you check-in. Naughty. Yeah, I know, a first world problem Mike. I agree but I paid for a first-world experience.

Arrival and departure out of Brisbane International is a gloriously civilised experience when compared to Queenstown. I had the dubious pleasure of observing Queenstown Airport on several occasions as I shutt led friends and family back and forth. Overcrowded and disorganised passenger areas meet failing automated check in infrastructure and broken baggage carousels in an unholy debacle of inconvenience and delays. The whole dire mess is held together by staff who display good humour and a genuine desire to help. Poor buggers must be exhausted by day’s end!

In other areas of tourism such as snow sports the “she’ll be right bro” approach has been replaced with myriad staff whose sole gig seems to be telling the paying guests what to do. It’s all the lowest common denominator stuff designed to treat the punters like idiots. Here’s a tip for ski fields. Take the staff directing guests and put them on lift management and maintenance. The bloody things might run for more than fi ve minutes before stopping! Don’t even get me started on lift closures. Once upon a time, those lift s would run in winds and weather you wouldn’t take your dog out in. Now all you need is a bit of after-Mexican food flatulence and the place

closes down. To be fair that may not be down to wild wind alone.

Accommodation operators remain some of the most welcoming I know but it’s clear that some of the accommodation I used needed money spent. My favourite apartment in Wanaka doesn’t look to have had a cracker invested in it since we first stayed 15 years ago. It’s got a world-class view for sure but that only goes so far. I suspect accommodation managers are simply having problems convincing owners to spend money. Sound familiar?

I guess in these days of workplace health and safety, litigation, woke att itudes and a “walk as slow as our slowest person” mentality the sense of danger and adventure that used to accompany trips to NZ is no more. I fell in love with a place of adventure and a bit of a Wild West feel. To some degree that vibe is gone and that’s a shame. Will I catch up with my old love from time to time? Yep, I’m afraid in spite of all I’ve said she’s still beautiful. Just not as wild and crazy as she once was. Hmmm, I miss that.

Let me finish with a litt le tale about airports, process and responsibility. I had friends stay with me for a while in NZ. One of them, who shall remain anonymous, had an interesting

experience. For the sake of this article let’s call him PG.

PG has a long and proud history of having flights cancelled on him. With bad weather, snow, wind and airport closures NZ didn’t let him down. When he finally got a flight out, he presented himself at Queenstown check in, was issued a ticket and repaired to the airport bar. He’s not the most confident fl yer and finds the eff ects of vodka to provide miraculous pre-flight comfort.

Anyway, boarding is called and our nervous aviator steps up immediately. He’s taken his spot when a bloke turns up with a ticket to the same seat. Much discussion ensues and it transpires that said bloke has

a near identical name to our PG. He is the bona fide traveller and PG has been issued a ticket to the wrong flight. At this stage PG is accused of trying to stow away on the aircraft and security march him from the plane. By now two other flights are delayed as a robust discussion takes place with a baggage handler and his bags are removed from the aircraft . In all this debacle no one says “sorry mate, our blue” when it’s obvious the airline stuff ed up and issued the wrong ticket to the wrong bloke. That might suggest the system is not coping and we can’t have that. In the event our anonymous fl yer got home and as they say, one day he will laugh about it. I’m laughing already.

© Adobe Stock, stock.adobe.com

Roof maintenance season:

Get in before the rain!

La Nina or El Nino?

It’s hard to keep up with the complicated climate patterns aff ecting us in Australia, but one thing every building manager does need in the routine servicing calendar is the annual roof maintenance inspection. Heading into spring is the best time for building managers and committees to start thinking about preparation for the storm season and all that comes with that. The best way to combat water ingress during the summer rain is to be prepared, and preventative maintenance is key.

There are four important things to consider in terms of preparation for the wettest time of the year, at least, wettest time in the top half of Australia:

• Preventative maintenance;

• storm preparation;

• repairs and recovery; and

• audit trail for the insurer.

Preventative maintenance is where we take care of our waterproofing and rainwater disposal assets in advance of any severe weather events. So, what would we look at doing?

Here is our list:

Asset Register:

If you don’t already have a list of all the maintainable infrastructure contained within the common property of your complex, this is the best place to start. Look at

the Asset Register guide at Table 1C in Chapter 1 of the ABMA Building Management Code for assets and life cycle indicators. Make a list of all the infrastructure in the property that deals with rain, such as:

• Roof: Including gutters, downpipes and fascia.

• Waterproof membranes: Including under tiled balconies and on concrete roof areas.

• Drains: Including concealed stormwater drains under the ground, as well as visible spoon drains, pits, and perimeter drains around the basement carpark, for example.

• Window and door seals

• External cladding and walls: Making sure cracks are sealed as they arise.

Preventative Maintenance Calendar

For every infrastructure asset identified in the common property you will need a corresponding

maintenance regime. Look at the Maintenance Calendar template as a guide in the ABMA Building Management Code at Chapter 11, Table 11A. Once you have listed your assets, insert them into your Maintenance Calendar template and apply the relevant maintenance requirements and frequencies.

Coordinate the preventative maintenance actions

These are likely to include:

• Roof inspection and minor maintenance repairs: This is where the specialist roofing contractor attends site, climbs on to the roof and inspects for defects and faults that need fi xing. Minor issues can be resolved on the spot, such as treatment of rust spots, silicone upgrades and repairs, replacement of faulty fasteners, rubbish removal and wash down. This would be a job for a licensed and insured tradesperson.

• Gutters and downpipes

cleaning: This is where the specialist roofing contractor attends site to clean out the eaves and box gutters and associated sumps, rainwater heads and downpipes. Again, unless specifically prescribed within the Caretaking Agreement, this task would be a job for a licensed and insured tradesperson.

• Drains: Where the drains are exposed and accessible the caretaker can clean these out, but where stormwater drains are concealed a specialist plumber or drainer will need to be engaged to check and clean these out. Check the WHS Plan for the common property workplace where confined space is concerned.

• Window and door seals: Especially for brand new buildings that are not sett led in, having a window and door service done to check the seals on the aluminium framed joinery

By Lynda Kypriadakis, Diverse FMX

© Adobe Stock, stock.adobe.com

is a good preventative maintenance practice. Similarly, once windows and doors exceed the 10-year mark, having them checked every couple of years as a preventative maintenance practice is sensible. Obtain specialist inspection assistance when/if windows or doors are leaking.

• External wall cracks: Don’t scrimp on the repaint cycle for your external cladding. Prevention is better than cure when it comes to stopping water ingress. Once hairline cracks start to appear in your external render or cladding paintwork, obtain specialist advice on when the repaint is necessary to prevent water getting into the substrate. Once water is allowed to leak in, it’s very hard to get it out.

Hopefully your preventative maintenance actions will bear fruit and the building will survive another wet rainy summer without leak event, but just to be superprepared, don’t forget your storm preparation actions…

• Storm shutters and other flood equipment: Make sure your flood and storm kit is complete and well maintained, including necessary tools, fasteners and installation manuals ready

for volunteers to follow when the time comes.

• Hire equipment on stand-by: If your property routinely floods in heavy rain, see if you can preorder the hire equipment needed to make things easier, such as pumps and wet vacuums, air driers, skip bins and pressure cleaners, etc.

• Committee volunteers: Don’t forget to engage with your community to ensure you have the help you need when the time comes.

Eventually every building suffers the adverse effects of a severe weather event, whether it comes in the form of minor damage to the gardens or if there is a major roof collapse, or worse! The best thing the building manager can do to prepare for such an outcome is to have a sturdy army of specialist building contractors and consultants available for when the time comes. Liaising with your project manager, structural engineer or building consultant ahead of storm season is the best time to get advice on which contractors to get on your panel of preferred builders. You will want to be armed with good advice if the time comes.

So even if you miss the worst of the weather impacts (and let’s hope you do) you will have created a wonderful audit trail of vigilance in preventative

maintenance to provide to your body corporate insurer when renewal comes up again.

The audit trail for the insurer will come in handy when the time comes to make an insurance claim for water ingress or

storm damage, so it will go a long way to expediting the claim and insurance renewal if the body corporate can prove preventative maintenance and risk management such as detailed above.

© Adobe Stock, stock.adobe.com

Relationships come first

comes time to use those fancy apps, it doesn’t fall on deaf ears…

1. Communication is key: Establish effective and open lines of communication with your clients. Regularly update them on progress, address their concerns or queries promptly, and be proactive in communicating any changes or updates that may impact them.

By Kelley Rigby, Managing Director,

I am honoured to have been asked to share the stage with some extremely intelligent human beings at the NoVacancy Hotel + Accommodation Industry Expo, 2023, held in Sydney. The panel I’ve been asked to participate in is to be facilitated by our very own Mandy Clarke. The discussion is set to be about how to market on a budget (they had a fancier title, but you get my drift). Now between you and me, even during the planning the session, I felt a little out of my depth, the people that surrounded me were experts in hotel software and tech -not my forte - at all! They used words that I noted and Googled afterwards. All very technical words about how to simplify the process. Although these apps and software products are undeniably a necessity, do they really matter if you don’t have a strong relationship with clients and great customer service. My 10 top tips on how to build a strong community so when it

2. Understand their needs: Take the time to truly understand your clients’ needs, goals, and expectations. This will help you tailor your products or services to meet their specific requirements and provide personalised solutions.

3. Be reliable and trustworthy: Consistency and reliability are crucial in building strong relationships. Deliver on your promises, meet deadlines, and demonstrate that you can be trusted to deliver high-quality work consistently.

4. Provide excellent customer service: Be responsive, attentive, and empathetic. Listen actively to their feedback and concerns and provide prompt and satisfactory resolutions whenever possible.

5. Be proactive: Anticipate your clients’ needs and be proactive in suggesting new ideas or solutions that could benefit their business. Stay updated on industry trends and advancements

to offer valuable insights and recommendations.

6. Build rapport: Establish a personal connection with your clients by taking the time to get to know them on a more personal level. Remember important details about their personal life, such as birthdays or anniversaries, and celebrate these milestones.

7. Demonstrate expertise: Position yourself as an expert by sharing relevant industry knowledge, insights, and success stories. Help educate your clients about industry trends, best practices, and potential risks or opportunities.

8. Be transparent and honest: Honesty and transparency are crucial for fostering trust with your clients. Admitting mistakes or limitations, providing realistic expectations, and openly sharing information will help strengthen your relationship.

9. Foster long-term partnerships: Instead of approaching client relationships as oneoff transactions, focus on building long-term partnerships based on mutual success. Continuously seek opportunities to add value, exceed expectations, and provide ongoing support to maintain a strong bond.

10. Seek feedback and act on it: Regularly ask for feedback from your clients to evaluate your performance and identify areas of improvement. Act on the feedback received to demonstrate your commitment to their satisfaction and growth. Remember, building strong client relationships is a continuous effort that requires dedication, effective communication, trust, and reliability.

Lett s Rebuild

NoVacancy Hotel + Accommodation Industry Expo 2022

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.)

Is the next stop, the right stop?

By Stephen West, Interline Travel

Air travel has revolutionised global connectivity, turning distant lands into accessible destinations. Airports serve as vital hubs, connecting travellers to their desired locations.

However, the world is not without its quirks, and occasionally, we encounter airports with similar names or cities boasting multiple international gateways. In this article, we embark on a journey to explore these intriguing phenomena and shed light on the unique challenges they pose.

Airports with similar names

In the vast landscape of aviation, it is not uncommon to find airports with similar names, causing occasional confusion. One example is the London airports, London Heathrow (LHR)

and London Gatwick (LGW) situated in different locations, these two major airports serve the bustling city of London. Travellers must exercise caution when booking flights, ensuring they select the correct airport based on their destination. Then there is also London City (LCY) Luton and Stansted, also airports in the London region. Similarly, the cities of Paris and Frankfurt have multiple airports. Paris boasts Charles de Gaulle Airport (CDG) and Orly Airport (ORY), both catering to international flights. Likewise, Frankfurt travellers have the choice between Frankfurt Airport (FRA) and Frankfurt-Hahn Airport (HHN). Understanding the locations and services offered by these airports is crucial to avoid potential mishaps. The distance between the Warsaw airports is 48 kilometers, Ryan Air flies to one that is in the middle of nowhere, so don’t choose the wrong one!

Cities with multiple international airports

Some cities have embraced their international appeal by establishing multiple airports to accommodate their growing air traffic. New York City is a prime example, with three major airports: John F. Kennedy International Airport (JFK), LaGuardia Airport (LGA), and Newark Liberty International Airport (EWR). Each airport serves specific purposes, with JFK handling a significant number of international flights,

LGA focusing on domestic travel, and EWR serving as a gateway for both.

Similarly, Los Angeles, the entertainment capital of the world, boasts Los Angeles International Airport (LAX) and Hollywood Burbank Airport (BUR). LAX is renowned for its international connectivity, while BUR, located closer to the city centre, primarily serves domestic flights.

Challenges and tips for travellers

The existence of airports with similar names or cities with multiple gateways can present challenges for travellers. Here are some tips to make your journey smoother:

• Double-check your flight details: Before booking your flight, verify the airport name and code. Pay close attention to ensure you select the correct airport for your destination.

• Research transportation options: Be familiar with the transportation infrastructure connecting the airports to your desired location. This knowledge will help you plan your onward journey efficiently.

• Allow ample transit time: If you need to transfer between airports within a city, consider the distance and traffic conditions. Allow enough time to

navigate the journey comfortably, accounting for potential delays.

• Utilise airport resources: Airports with similar names often provide clear signage and information desks to assist travellers. Take advantage of these resources to seek guidance or clarify any doubts you may have.

As globetrotters, it is essential to stay vigilant and informed when it comes to airports with similar names or cities with multiple international gateways. While they may present unique challenges, these airports ultimately contribute to enhanced connectivity and convenience for travellers. By conducting thorough research, double-checking flight details, and utilising available resources, you can navigate these aviation intricacies with ease and make the most of your travel experience.

Stephen West has a significant background in both management rights and the travel industry, and in addition to his consultancy and training, he oversees a travel agency that specialises in cruise fares and airline fares, like those enjoyed by airline staff – all for the benefit of management rights owners. When he is not speaking at Women In luncheons, he is chasing deals of up to 80 percent off for the Industry. Based on the Gold Coast, with accreditations from IATA and the Cruise Line Industry.

Access Accelerator program to promote accessibility for travellers

Launched on the Sunshine Coast, Spinal Life Australia’s and Cérge’s groundbreaking new Access Accelerator program is set to be rolled out across Queensland. It combines immersive disability awareness training and technology to promote an inclusive and accessible experience for all visitors.

The program accessed the Queensland Government Accessible Tourism Enablers Grant as part of the Year of Accessible Tourism in Queensland.

It aims to make tourism more accessible, inclusive and welcoming, enabling destinations to better cater for the estimated one in five Australians living with a disability.

Visit Sunshine Coast CEO, Matt Stoeckel said: “As a destination, we know it’s important to be more inclusive and this is a step in the right direction. The Access Accelerator program will give tourism operators on the Sunshine Coast the tools to better cater to the accessible tourism market.

“The program will enable the participating tourism operators

to better understand the accessible tourism market and improve experience for those travelling with a disability. We are eager to work closely with Spinal Life Australia and Cérge to ensure our local tourism operators embrace accessibility and create memorable experiences for every visitor.”

Sunshine Coast tourism operators are encouraged to involve themselves in the new program by completing an Expression of Interest at www.visitsc.au/access.

The the launch of the new Access Accelerator program. Image courtesy of Spinal Life.

Images courtesy of Visit Sunshine Coast.

Destination Gold Coast to align with Experience Gold Coast

In what marks an important part of history for Gold Coast tourism since Destination Gold Coast’s inception 47 years ago, the city’s peak destination marketing body will become a very important part of the newly formed organisation Experience Gold Coast.

The Extraordinary General Meeting held at the Gold Coast Convention and Exhibition Centre saw more than 200 members vote in favour of the proposal, which was unanimously endorsed and put forward by the Destination Gold Coast Board.

Destination Gold Coast Chair Adrienne Readings said the proposal to bring the tourism powerhouse under the umbrella of Experience Gold Coast is in the best interests of the Gold Coast, Destination Gold Coast, and its members.

Experience Gold Coast is the amalgamation of Destination Gold Coast, Study Gold Coast, Major Events Gold Coast, Home of the Arts and Placemakers. From September 4, 2023, the activities of each of the five existing entities will be delivered under the umbrella of Experience Gold Coast.

Destination Gold Coast will retain its brand and remain operating under this name.

Destination Gold Coast Business Events deliver $50 million in leads

The ninth This is Gold Coast 2023 (TIGC23), held in August was attended by event planners, professional conference organisers and media representatives from Australia, New Zealand and South East Asia.

The Destination Gold Coast Business Events team created this immersive, educational and memorable three-day program to show off the best example of venues, culture and experiences for meetings, conference and incentive groups.

Destination Gold Coast Interim COO Rachel Hancock said: “TIGC23 is a key event on our annual calendar, providing the business events industry with a platform to connect with our local tourism partners with more than 900 meetings scheduled.”

Trips to and from New Zealand drive Australia’s international travel recovery

New Zealand is leading recent growth in short-term visitor arrivals to Australia, according to recent data from the Australian Bureau of Statistics (ABS).

Travel between Australia and New Zealand was a major contributor to the increase in short-term international trips in 2022 to 2023. New Zealand was the leading source country for short-term visitor arrivals as well as the leading destination for Australians returning from a short-term trip overseas. While both the number of Australian residents returning from overseas and the number of visitor arrivals from overseas increased in 2022 to 2023, they remain below preCOVID levels of 2018 to 2019.

Jenny Dobak, ABS head of migration statistics, said: “Since the COVID-19 travel restrictions were lifted, shortterm resident returns has recovered more strongly than visitor arrivals.

“By June 2023, the volume of short-term resident returns had reached 87 percent of pre-COVID levels, after falling to less than 1 percent back in October 2021.

“Visitor arrivals initially recovered more slowly when restrictions were first lifted but have steadily increased towards pre-pandemic levels. By June 2023, the volume of visitor arrivals reached 82 percent of pre-COVID levels”.

Accommodation Industry Golf Series: Wine Skins at Wynnum golf course

Last month’s event for Accommodation Industry Golf Club was the Wine Skins golf day held at the Wynnum golf course on August 10.

The day was made perfect by the weather and the chance of winning great wine prizes. There were so many wine prizes that every player went home a wine winner in the team competition. Another memorable day, so huge thanks to the sponsors and Tracey Taylor’s organisation. Be on the lookout for next year’s wine event.

Christmas Golf Event

Accommodation Industry Golf Club’s massive Christmas golf day is on Friday November 24 at Lakelands Golf Course for a 12.30 pm shotgun start. Because this day is the last on the 2023 calendar the committee goes to lengths to make this day “Simply the Best”. If you have played this day before you know that leg hams are given away by a random draw. There will also be a huge rundown of prizes, a big raffle, lunch, and drink vouchers on the course plus after golf dinner.

Almost forgot… Of course, there will be hole sponsors and fun events plus they hope to have a celebrity on course or as a guest speaker. This day is based on fun with competition being a two-person Ambrose event. This Christmas golf day is made possible by the generous sponsors who subsidise the costs allowing for all the extras every player will enjoy. It is fantastic value for only $150 p/p.

This is one golf day you do not want to miss, the golf club loves to bring mates and partners together for the Christmas event. Remember ladies are welcome. We would love a full field so get busy, diarise the day and let all your mates know. For full details and to register contact Tracey Taylor taylor77@bigpond.net.au

As always. thanks to Major Sponsors: Watt Utilities, Mahoneys, KONE, Platinum Electrical & Air, McAdam Siemon Business Advisors, Rochele Painting, Nator Constructions, RBC Group, ResortBrokers. And supporting sponsors: The House of Golf, ARAMA, REI Cloud, Resort News & Letts Group.

What about Women In?

Join Women In for the Gold Coast luncheon based in Broadbeach on September 13. These luncheons are a wonderful opportunity to connect with both men and women within our industry. This luncheon is hosted by OTTRO management rights solutions. Look out for Brisbane lunch dates coming soon! Head to www.womenin.com.au or contact Marisa on 0452113167

OTTRO management rights solutions off ers a range of services and training programs designed to ensure success, compliance, and growth within the Management Rights sector.

The OTTRO management rights academy will be off ering comprehensive solutions, operational expertise, with a focus on compliance, efficiency, and growth.

The first introduction to management rights course, specifically designed for nonmanagement roles starts in October on the Gold Coast.

PRET Australia Awards 2023

Save the date for the 2023 PRET Australia Awards Night to be held at the Royal International Convention Centre on Saturday, November 25, from 5pm to 10pm. Currently, corporate sponsorship tables are available, and individual ticket sales will open in September. Please show your enthusiastic support for this event.

AccomCon. is coming!

On Friday, October 13 AccomCon. is coming to the Gold Coast

Presenting a full agenda featuring captivating discussions on content management rights and thought-provoking panel sessions, where industry leaders and experts will share their insights and experiences.

A separate stage has been setup dedicated to short-term rentals, addressing key topics and trends shaping this rapidly growing sector.

AccomCon. is the industry event you do not want to miss so jump online to secure your tickets now.

www.accomcon.com.au

The Best of Tourism Awards annual gala is back!

Join

colours and cutting up the D-floor.

Resly and Women In have once again joined forces to present the industry’s most anticipated event of the year. As well as a

night to let your hair down and celebrate our evolving industry, the Spring Carnival Annual Gala will also raise funds for two well-deserving charities. So, save the date - Saturday, October 14, and get ready to shine at The Star, Gold

Coast, because this is a night you don’t want to miss.

Early bird tickets are on sale now so get in quick because it’s going to be a sell-out event! We can’t wait to see you there.

www.thebestofawards.com.au

2023 ARAMA INDUSTRY EVENTS CALENDAR

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

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

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

Sales Report

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

MANAGEMENT RIGHTS

PO Box 391 WEST BURLEIGH QLD 4219

Phone: (07) 5534 4333 | Fax: (07) 5534 2081 reception@jonathangrant.com.au | www.jonathangrant.com.au

Gold Coast

The Catalina & Stanhill Residences Ao Shen Surfers Paradise RB

Le Beach Holiday Apartments James Nikiforides Burleigh Heads RB

Palm Beach Portfolio Peter & Dawn Roper Palm Beach RB

Cornerstone Village Grace Zhang Pimpama RB

Brisbane

Illumina Brendan Tu Toowong RB

Sonic and Alice on the Park Curtis Browning Stafford RB

Alto and Tenor Rabih and Nadia Assaf Red Hill RB

The Fells Eddie Liu Spring Hill RB

Sunshine Coast / Wide Bay / Fraser Coast

Quarterdecks Retreat Bayside Coastal Managemet P/L Urangan MRS

Aquarius Resort                Michael Adams Alexandra Headland        RMS

Noosa River Palms           Michael & Jennifer Gray Noosaville RMS

C Bargara                             Sam & Nikki Moffi Bargara RMS

New South Wales

Po sville Beach Motel Jillien Lamporecht Po sville RB

PROGRAMME

MOTELS & OTHER

ACCOUNTANTS & AUDITORS Erika Thomas & Associates pbb consult

ELECTRICAL CONTRACTORS Emerlite Electrical Services

FURNITURE Hotel Interiors

MANAGEMENT RIGHTS AGENTS Property Bridge

PAINTERS & DECORATORS Rochele Painting

SIGNS Signarama

SOLICITORS Pevy Lawyers

VALUERS - REAL ESTATE Herron Todd White

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

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

Queensland

Miles Outback Motel Atlantis Resort P/L Miles TB

Kippa Ring Village Motel Shree Bahuchar P/L Kippa Ring TB

Hinchinbrook Resorts Channel Inn Patrick Fortini Lucinda RB

Mareeba Motor Inn Joanne & Clint Mann Mareeba RB

Charleville Waltzing Matilda Motor Inn Kevin & Sunny Fish Charleville RB

Best Western Airport 85 Motel Jacky Ni Ascot RB

Roma Motel Jasdev Grewal Roma RB

New South Wales

Coastal Comfort Motel The Rooms Accommodation P/L Narooma TB

White Manor Motel Jatinder Gill Cooma RB

Two Rivers Motel Talwinder Goraya Wentworth RB

Victoria

Bendigo Motor Inn S. Patel Bendigo TB

Central Motel Husandeep Singh Mildura RB

South Australia

Country Roads Motor Inn Tajinder Singh Naracoorte RB

Note: Agent/Broker involved in the sale is listed last. Agent

MR Sales

Metung VIC

ID: 9097

Exclusive: Coastal Holiday Gem

Price: $947,000 Nett: $131,694

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

Deception Bay QLD

ID: 9103

Permanent Management Rights

Price: $2,138,000

Nett: $299,690

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

Oxenford QLD

ID: 9101

Airlie Beach QLD

ID: 8365

Thriving Holiday Business in Paradise

Price: $1,295,000 Nett: $148,000

Contact Bill He 0439 288 960 bill@mrsales.com.au

Price: $1,295,000 Nett: $275,000

Contact Antonio Curulli 0488 030 853 tony@mrsales.com.au

BEAUTIFUL SUB TROPICAL RESORT IN NOOSAVILLE

FOR SALE

ASKING: $2,200,000

EXCELLENT REPEAT BOOKINGS / HUGE TOURIST DESTINATION / EASY LIFE STYLE BUSINESS

Situated in the heart Noosaville and 100 metres to the wonderful Noosa River is this beautiful sub tropical resort featuring 40 units comprising of 2 and 3 bedroom units. With 29 units in the letting pool there is plenty of room for income growth here and to take it to the next level, freshly painted in July 2023 the resort has 3 pools, large BBQ area’s and manicured gardens for guests to enjoy. Noosaville is the new Hastings Street with plenty of restaurants, bars, water sports, fishing, boating and the beautiful Noosa River to relax or enjoy exercising along the banks and gardens of this magnificent water way. The resort has been run successfully by the current vendors for over 15 years, enjoying the fruits of this comfortable lifestyle business which has provided a healthy income.

BC SALARY - $83,000 INCREASED ANNUALLY WITH CPI NET - $322,000

MANAGER’S UNIT VALUE OF $900,000

AGREEMENT - 20 YEARS TO RUN WITH OPTION TO TOP UP GREAT LIFE STYLE BUSINESS FOR ANY OPERATOR WANTING TO EARN A GREAT INCOME IN PARADISE

HIGH NET NOOSA GEM WITH GROWTH POTENTIAL FOR SALE

ASKING: $2,090,000

TOP YIELD / REALISTIC MULTIPLIER / MASSIVE TOURIST DESTINATION

18 apartments in the letting pool of 20 Body Corporate Salary $42,500 with CPI increase annually

Beautiful tropical resort with stunning views over Noosa Heads and Hinterland areas

Fantastic position, just minute's stroll to Noosa's Main Beach, Hastings Street, and Noosa Junction

Newly refurbished manager's 2BR apartment with massive balcony overlooking Noosa and Hinterland stunning sunsets

Bookings well into 2023/24

High netting business which is experiencing massive growth now & into 2023/24

New pool and BBQ area for guests to relax and enjoy

Offsite parking for guests and small trailers

Conveniently located near the popular bar and restaurant precincts, all within easy walking distance

Great Trip Advisor rating with many repeat guest bookings

NET: $285,000 | BODY CORPORATE AGREEMENT: 21 YEARS | BODY CORPORATE SALARY $42,500

MANAGEMENT RIGHTS – PERMANENT

PRIME SOUTHPORT: MANAGEMENT RIGHTS UNLEASHED

Asking Price: $ 1,430,000

Coffs

Harbour, NSW

MANAGEMENT RIGHTS – MIXED ICONIC MID NORTH COAST MR BUSINESS OPPOSITE THE BEACH

Nett

MANAGEMENT RIGHTS – PERMANENT

Asking Bundall, QLD ID15780

EXCLUSIVE: HIGH NET PERMANENT COMPLEX

$ 3,006,000

Trinity Beach,

QLD

MANAGEMENT RIGHTS – HOLIDAY RARE BEACHFRONT OPPORTUNITY

Nett

Basketball family are winners in management rights

By Grantlee Kieza, Industry Reporter

This month, Irene Manson spoke to Grantlee Kieza to share a significant message about family and adapting to change, which holds valuable insights for those entering the management rights industry. Irene was one of the original members of the Women In Management group back in the 1980s, and this underscores her dedication to promoting the strength and influence of women managers within the field to this day.

Irene and her husband Ian are the current managers of the Casa Bella residential complex on the Gold Coast, they have a wealth of experience that spans almost four decades in the management rights sector. Their journey has been intertwined with the evolution

of this industry, making their perspective especially insightful.

Casa Bella, the property they currently manage, boasts 168 three-bedroom, twobathroom townhouses located in the Coombabah area on the northern end of the Gold Coast. How long have you been at that property?

In December it will be three years.

But you’re very experienced in management rights - 38 years to be exact?

Yes. We bought our first management rights way back in 1985. It was at Burleigh, 64-holiday apartments. The business of management rights was already fairly well established by then, but they were still almost entirely holiday apartments at the time, rather than permanent complexes.

But the business was very different. We used to have bookings with the QTTC back then (Queensland Tourist and Travel Corporation) and our bookings came through on teletext. They’d come through at night and the messages would say Mr and Mrs ‘so and so’ want ‘so’ many rooms on these dates and you’d have to juggle things to make it work. It’s a bit different these days with technology?

Now you have all the computer programs that make it so much easier. Back then you had a big, thick booking book for each unit, and you’d manually block out the dates as the bookings came in. The trust accounting was a one-write system, you had a ledger for the owner and carbon paper would make four copies. You’d sign the owner’s ledger underneath the receipt and as you wrote the receipt it would write the information on the owner’s ledger card and on the banking sheet and the transaction history. The one-write system was very advanced for the time!

Casa Bella, Gold Coast

Irene and Ian Manson

So how did you and Ian become involved in management rights in the first place?

I grew up in Geelong and was a kindergarten teacher at a private girls’ school in Mentone, Melbourne. Ian comes from Horsham and worked as an industrial chemist. He was a very good basketball player and represented Australia in 1976. He went with the Australian team to the USA and China when China first opened to international sporting teams. The Australian basketball team was one of the first international sides to visit China and they played a series of matches there. Ian was also in the St Kilda team that won the inaugural National Basketball League championship in 1979. Basketball was a big part of our life. In the early 1980s, my parents were in Queensland, and they pushed for me to buy a kindergarten but at the time I wasn’t confident enough to leave my secure pay packet in my pigeonhole every two weeks. But Mum and Dad kept pushing and said that we could all pool our resources and find a management rights property.

Did you go looking for one?

Yes. Mum and Dad would drive around looking at how many lights were on and how many cars were parked underneath the building to gain an idea of how popular it was. So, we ended up with an 11-storey high rise and a three-storey walk up at Burleigh Gardens. We were there for three years until 1988. While we were there, I looked forward to the Women In Management lunches, it was a great deal of fun, travelling in a stretch limo and sipping champagne on the way to functions. The limo would start with the first lady in the group at Greenmount and drive along the southern part of the coast picking up members along the way. We left Burleigh Gardens during Expo 88 because we wanted to leave something for the next people so that they still had the bookings for Expo.

Some big changes were ahead?

Yes, I got pregnant while we were there and we had our second child, and we discovered that running holiday apartments with small children wasn’t

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

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

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

conducive to the lifestyle we wanted because school holidays and the weekends were when you were in most demand at the building. While the kids were little it wasn’t so bad, but our daughter was getting to Kindy age, so we decided we’d get out for a while. Ian did remedial waterproofing for about ten years, on a lot of high-rise basements but he was not well at the time and we had to find something else.

So that’s when you became involved in permanent management rights?

Yes. We bought into a place called Sandringham which is just across the road from the Gold Coast Turf Club at Bundall. We bought that in 1998 and left in 2016 - so 18 years there. The complex had 88 townhouses that were all permanent rentals. For a couple of years, we also had a Turkish bread bakery which Ian managed while I looked after the management rights at Sandringham.

Your children grew up while you had Sandringham?

Yes. Management rights gave us the ability to be able to drive our kids, Robert and Kate to sporting events (and whatever else they needed) because we didn’t have to work set hours.

Robert told his friends at school that his father didn’t work, it wasn’t true, but Ian could work while the children were at school and be around when they were home. Management rights gives you that flexibility. Kate was a swimmer who trialled for the 2000 Olympics and Robert left home at 16 to spend seven years in America chasing his basketball dream. He did two years of high school in Mississippi, two years at junior college in Houston, Texas, and three years at Loyola University in New Orleans. He loved the whole experience and then he went to Europe for a year to play in the south of France. They both have two children of their own now. Robert is back in Brisbane and when his two boys get a little bit older he and his wife will likely get into management rights because they see it as a very good lifestyle for their family.

We have four grandchildren, ages 16, 13, four, and two.

What happened when you left Sandringham?

We started a business called Care Calling Now, a daily welfare care call for people living alone.

It gives families peace of mind. Then we got the opportunity to manage Casa Bella and I really enjoy it. We try to keep things very smooth and well run, and we’re looking at other areas where we can branch out.

You were a finalist in ARAMA’s TOP awards this year for Resident Manager of the Year?

That was exciting. it’s interesting that most management rights businesses are run by women. Our ARAMA Gold Coast committee is all women.

I’ve had a wonderful time in management rights and seen some amazing changes, especially when it comes to the internet and technology speeding things up. In the old days, you would have to balance up transactions manually and it was very time-consuming. There would always be a few cents out somewhere and you’d spend forever trying to figure out where it was missing from. We ended up getting a bookkeeper – someone who was good at numbers and enjoyed working with them. The same with cleaners. We tried to do it

ourselves and quickly decided there were much better cleaners than us who we could hire. What dangers do you see for the industry with calls by some sections to cut terms?

ARAMA does such a great job lobbying on behalf of the industry, a strong voice for us, so I think they are on top of it. I encourage everyone in management rights to join ARAMA because of the strength in numbers. The biggest thing the industry is facing is the rental crisis. I heard that Queensland has lost 55,000 rental properties because they are going to owner-occupiers. So not only are there more people looking to rent but there are so many fewer properties available. We saw a property the other day of 40 units of which 36 were owner-occupiers. Probably before COVID, it would have been the other way around. The government is not doing much to encourage investors and if anything, they are penalising them with extra costs such as higher rates. The quickest way to solve the rental crisis, in my opinion, is to encourage investment.

We are confident and excited about the future. This has helped with our decision to establish a management rights buyers’ agency to help people find the right management rights for them. We want to give back to an industry that has been so good to us and help others to enjoy and thrive in their own business. In pursuit of this, we have joined the B4B group (Best 4 Building) created by the well-respected management rights industry stalwart, Mike O’Farrell. Mike believes all stakeholders in the industry need to understand it’s the building (scheme) that is the most important element of a successful relationship between the various stakeholders. B4B delivers cradle-to-the-grave processes to achieve success in schemes. What advice would you give to someone wanting to get involved in management rights? Just do it.

We’ve had quite a few friends go into management rights because they’ve seen the lifestyle we’ve had. But I’ve advised them to be prepared for the first two months, they’ll say, “What am I doing here? Who thought this was a good idea?” But by the third month, they’ll say, “Why didn’t we do this sooner?”

It can be tough at first and a lot of work, but once you get the hang of it you don’t look back. There is so much software and so many systems to help run the business that makes it all so much easier these days.

Most importantly, get a good team of professionals and a few other managers around you that can help and support you.