Resort News, October 2023

October, 2023 - Issue 326

The legal stuff...

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KEY Commercially funded supplier profi le or supplier case study

Supplier information or content

Suppliers share their views in one-off topical pieces

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

Ben

Commissioner for Body Corporate & Community Management, Frank Higginson, Kelley Rigby, Lel Parnis, Lynda Kypriadakis, Mike Phipps, Stephen West and Trevor Rawnsley.

23 Thinking MR

Springing into a season of unity

Greetings and a warm welcome to the October edition of Resort News!

Last month, our team had the pleasure of making waves as exhibitors at the NoVacancy Hotel + Accommodation Industry Expo 2023, and let me tell you, it exceeded all expectations. This event promised to be the ultimate playground for all things hospitality, and it truly delivered - and I’m not just talking about the bars!

As I wandered through the Expo, I was awestruck by the dazzling array of innovations on display. From cutt ing-edge robots to the latest in hospitality technology and gorgeous guestroom designs, it was a nonstop journey of discovery. We had the privilege of meeting our cherished readers, loyal customers, and forging new connections that will surely shape the future of Resort News as well as our AccomNews magazines.

Mandy Clarke, Editor editor@accomnews.com.au

The highlight of the event for me was moderating a panel on low-cost marketing ideas at the Small Hotelier Summit. The room was packed to capacity, and I was thrilled to see familiar faces among the audience. In addition to larger hotel operators and moteliers, it was very heartwarming to look out at the sea of faces and see so many of the management rights family there; I really felt your support. To those who took the time to say hello and share kind words about our publications, I extend

my sincerest thanks – your encouragement makes all those stressful deadlines worthwhile.

During those two days at the ICC, it was evident that the entire accommodation industry is more interconnected than ever. I think this is a testament to the sector’s resilience during the challenges posed by COVID-19. Our MLR sector is fortunate to benefi t from having such a strong industry body, ARAMA, but now the whole Australian accommodation sector is unified and strengthened by the success of the amalgamation of the national industry bodies, now known as Accommodation Australia AA, and Michael Johnson, who passionately represents all members, including small operators. Back to this edition, we cast a spotlight on parking predicaments and report on the proposed new lobbying and how it could aff ect you.

We had the pleasure of interviewing Chris Puplett , who took out the Building Manager of the Year title at ARAMA’s prestigious TOP Awards in July; read his story on page 16. But that’s not all – we talk with Michael Wigglesworth who reveals his fascinating backstory and the road he’s travelled before finding paradise at Mermaid Beach on the Gold Coast.

Meanwhile, I am off to fluff my pink feathers to attend Resly and Women In Best of Tourism Awards at The Star Gold Coast on October 14. And sew some sequins onto my frock in readiness for the legendary PRET Awards 2023, on November 25 at the Royal International Convention Centre – don’t miss out! Without further ado, dive into the depths of this issue and enjoy. Warm regards, Mandy

Australia’s foremost management rights sales agency, with 15 years of expertise and a dynamic team of over 15 agents strategically positioned along the vibrant expanse of the east coast, we bring unparalleled expertise and dedication to every client interaction.

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The long arm of the parking police

By Grantlee Kieza, Industry Reporter

Armed security guards with badges on their chests, pistols on their hips and radar guns in their hands, issuing breach notices in residential strata communities.

They can even arrest residents who flout body corporate by-laws. Don’t laugh.

It’s the sort of situation many people face in American residential communities, and an extreme example of what can happen when a body corporate start laying down the law too heavily.

There is speculation in some quarters that new draft legislation for strata properties being worked on by the Queensland Government will include provisions to allow body corporate committees greater power over its parking spaces – giving them the right to tow offenders’ cars and to issue fines. In strata communities it seems that there will be arguments about anything that starts with the letter P – parking, pets, passive smoking, personalities and parties. Parking would be top of the list.

Strata Solve’s Chris Irons, the former Queensland Commissioner for Body Corporate and Community Management, told Resort News that presently, a body corporate could only have a car towed if that body corporate had by-laws allowing it, and only if they had an adjudicator’s order to back it up.

“It would be a foolhardy committee that would have a car towed without those things,” Mr Irons said. Despite that, he said parking problems could often get out of hand.

“It all starts with the initial development approval from council which doesn’t include enough car parks,” he said.

“Then you have some apartments which might have two, three, or four people living there and they’ve all got a car. Suddenly you’re in this situation where there are not enough carparks and there’s this competition for parking spots.”

That competition can quickly turn into an ugly fight.

“Anything where there is a suggestion of towing is ugly by definition,” Mr Irons said. “Any time someone starts threatening to tow it’s on for young and old. Backs are arced up immediately and people become very aggro.

“The surest way to escalate problems is to threaten towing.

So you have to be smart around parking problems. Signage, communication, and notes in peoples mailboxes certainly help, or a property might have to invest in a boom gate or a swipe system. If you’ve got problems with non-residents such as visitors parking in residents’ spots, boom gates and swipe cards are the way around it.

“Yes, it costs money, but in the long run it’s going to be far better for everyone.

“There’s also the provision for some residents to put cages around their allocated parking spot.”

Mr Irons said disputes over parking and constant infringements of the body corporate regulations could often result in “a very lengthy and very painful by-law enforcement process through the commissioner’s office – my old office – and you’re looking up to 12 months for an outcome and that doesn’t suit anybody at all.

“I am a big believer that this is one instance where if a body corporate had an explicit right to tow or if it could levy a fine, to me they are the obvious answers to parking problems in strata.

“I put those issues to government a couple of times but as you would expect the government is not keen on the idea of fines.

“But I reckon it’s got legs because the one thing that always sways

people is a hip-pocket impact.”

The Office of the Commissioner for Body Corporate and Community Management recently ruled on a parking dispute at the London Court complex in the Brisbane suburb of Nundah. The body corporate claimed one of the residents was breaching the by-laws by parking on common property, had left items on common property, and had damaged a fence.

Adjudicator Ingrid Rosemann ruled that within seven days of the order, the respondent had to “remove and keep removed from common property any vehicle in his possession or control, including any caravan, utility, motorbike, jet ski or trailer,” as well as “any rubbish, doors, property, or other items in his possession or control”.

She also ruled that “the respondent must not in future park any vehicles on common property or leave rubbish or other items on common property other than on the area allocated for the exclusive use [of his lot] except with the prior written consent of the Body Corporate for London Court Complex.”

Within 45 days of the date of the order, and at his own expense, he was to repair the fence on common property next to the rainwater tank.

If he did not comply the body corporate was given permission to “remove the vehicles or items from common

property” and make the fence repairs and enforce payment from the respondent.

The body corporate had claimed that despite numerous requests, a conciliation agreement, follow ups, and allowances of time, the respondent showed “no intention of complying with the legislation or by-laws.” It sought an enforceable order about these matters so that genuine visitors could use the visitor car park and that all rubbish and damage on common property was addressed.

The application was lodged on September 16, 2022 following a resolution passed outside a committee meeting on March 25, 2022. That was more than a year before the commissioner’s final ruling.

Management rights expert Kelley Rigby from Letts Rebuild said educating residents over parking was key to a well-run complex.

“A lot of times I suspect that people buying a property aren’t told by the real estate agent the correct by-laws around parking there,” Ms Rigby said.

“They should know when buying a property what parking is on

their title and what the rules are around visitor parking. Often that’s not happening, and it leads to conflicts.”

Trevor Rawnsley the CEO of the Australian Resident Accommodation Managers Association (ARAMA) never

had to carry a gun or badge at the buildings he managed, but he did manage to get the message across about parking.

“The first scheme I ran had allocated parking,” Mr Rawnsley said, “and if somebody parked in the wrong spot I had some little laminated signs – nice

polite laminated signs – and I’d put that on the windscreen. They said ‘you may not be aware that this car park is allocated to someone else. If you’re not sure where to park come and see me in the office. Unless you’ve been allocated a carpark you shouldn’t park there’.

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“In the second building I managed – which was a high rise – there was no allocated car parking, and it was just fabulous. People had their favourite spots where they would like to park near the lift or somewhere so they could open the door wider or whatever, but if they weren’t in there early enough then so be it.

“The only drama with that was on rare times of the year – because we had a mixture of owner occupiers and holidaymakers – at rare times of the year, the car park was full, but most holidaymakers don’t have cars particularly in a place like Surfers Paradise. At Schoolies the car park was empty.”

Mr Rawnsley said there is never a shortage of complaints about parking no matter what the rules are – whether it was in permanent rental properties or in holiday complexes.

“We see a lot of problems even in long term residential gated communities like townhouse communities,” he said.

“Lots of garages are being filled in to make extra bedrooms, and cars that would normally park in garages end up being parked in driveways or spill out onto the roadway which then further reduce parking around a building.

“There are some schemes that have engaged local council officials to fine people for parking illegally. It’s complicated but it can be done.”

Mr Rawnsley said he hoped Australian body corporate committees would never become as heavy handed as they were in some American properties, he visited on a fact finding exercise a decade ago.

“In some big schemes in the

United States they even have their own police force – bylaw enforcement officers with badges and guns, who issue parking infringement notices. They also have speed guns and the power to apprehend people or issue speeding tickets to residents who are driving too fast on the property.

“In Australia we try to work on the basis of good faith, and we don’t want by-law enforcement to get out of hand.”

If the Queensland government introduces tougher reforms in relation to parking it might help alleviate disputes because residents and visitors will know there are harsh consequences for parking unlawfully.

ARAMA, though, wants to make sure that new laws don’t turn resident managers into parking police.

“It’s all very well for the government to say schemes can now pass a bylaw that says cars will be towed or action will be taken or fines can apply, but it’s not appropriate to force the resident manager or the caretaker or service provider to be the person who polices that,” Mr Rawnsley said.

“Our submission to the government for its draft legislation said that we were happy to go with whatever the schemes decided, but ARAMA members should not be coerced or forced into policing those parking bylaws.

“If the managers willingly take on that responsibility it wouldn’t be unreasonable that they are paid for doing that.”

The possibility of bylaws allowing body corporate committees to have cars towed also raises

speculation about the idea of tow truck companies having sideline deals with resident zealots who tip them off for $50 rewards every time they see a parking by-law being breached.

Chris Irons says that in his experience a lot of parking disputes are caused simply by people not knowing the parking rules at a complex.

“I always say to people you don’t go nuclear on this,” he said. “If somebody looks like they’re parking incorrectly five minutes over time, don’t panic.

“Spend a bit of time just making sure everybody knows what the parking rules are. If the property is all tenants or mostly tenants, how are they going to know what the parking rules are unless they’re explained?

“If someone has just moved in, they’re not going to know all the regulations. So, it’s important to make sure everyone knows the requirements and after that if they continue to completely disregard the requirements then you can act.”

Communication is key, Mr Irons said.

“Signage needs to be big, obvious, and unambiguous. I’ve seen instances where you’ve got the body corporate which believes that they put in a good parking sign about what’s required and it’s gone all the way to an adjudicator who has said, well actually ‘No, the sign was incorrect. What you said there is wrong and if it’s wrong then someone can’t be accused of contravening it’.

“I think there is also an onus back on local governments to make sure they’ve got the mix right on parking in the first instance. I’ve

seen so many instances where the development application had an obviously inadequate parking allocation. I understand there is a desire to not see as many cars and while that’s a good intention, we must be realistic.”

Problems with car parking extend to holiday properties that often advertise “secure parking available” in their marketing but then tell holiday makers on arrival that all available spots have been taken.

Once again, communication is key.

Apartment owners at the Surfers Plaza Resort on the Gold Coast discovered a new form of parking dilemma last year, taking to the streets to protest plans to sell the council-owned land which they had been using as a car park. A bowling green was built as part of the Surfers Plaza development, but it was on a separate title. Residents then had a lease in place to use the car spaces until 2038.

Those parking entitlements were eroded, though, after property developer and future mayor Tom Tate took over the bowls club with his business partners in 2005.

One of the affected apartment owners Bill Cahill told Channel 9 that residents were not given enough time to bid for the land themselves and take control of their parking future.

Mr Tate told Channel 9 that apartment owners who purchased units in Surfers Plaza never had car parks on their own title, because of the complicated leasing structure in place.

Going that extra mile and beyond is the secret to success

at Griffin surrounded by 90 townhouses in the complex. A hundred metres away at Vista on Brays are another 60 homes. They also look after 10 townhouses at Mariposa Place in Kallangur and are just taking over another 70 at Nigella Views at Dakabin. They have added a community herb garden to Hidden Grove this year, and they run hidden duck competitions, Halloween activities, and visits from Santa Claus and the Easter Bunny. All these things are designed not only to entertain the kids living there but to foster a sense of community among the adults.

The most successful strata complexes are those built on a foundation of togetherness and harmonious communal living.

The most successful resident managers are those who foster a sense of community in the buildings they are entrusted with.

The business of Management and Letting Rights (MLR) thrives when resident managers go above and beyond their contractual requirements and build a community within their scheme that is orderly, neighbourly, and focused on making that community the best it can be.

The best resident managers are those whose enthusiasm for running their complex translates into a vibrant and harmonious community around them.

The remarkable Maree and Ian Smith manage an astonishing 230 townhouses across four complexes, and in the three years since they bought into their first MLR business they have shown the way for the whole industry to deal positively with tenants, owners and body corporate committees.

Maree says she and Ian have done their best to make everyone at their properties feel a sense of inclusion. They have a Facebook page covering residents at all four complexes they manage, and owners and residents are encouraged to put up “buy, swap

and sell” messages as well as community alerts for incidents like their power going off or if anything, or anyone, strange is around their townhouse. Ian and Maree encourage all the residents to look out for each other.

Their four complexes are within

a few km of each other just north of Brisbane. All the units are three-bedroom, two-bathroom, single lock-up garage townhouses and this year they have added two complexes to the two they had been managing.

They reside at Hidden Grove

For a recent duck hunt competition, fellow ARAMA members Karen and Michael Cross from the Dorchester on the Gold Coast donated two nights’ accommodation at their property, so a large number of adults were encouraged to take part. Maree says the competition caused many of the residents at Hidden Grove to spend much of their downtime wandering through the complex looking for hidden yellow ducks to claim a prize. While the adults were rummaging through the gardens looking for the plastic ducks, they would meet and converse with each other and realise that their neighbours were nice, decent people just like them, and thus a greater sense of

By Trevor Rawnsley, CEO, ARAMA

Maree and Ian Smith

Hidden Grove at Griffin & Vista on Brays

Ian and Maree encourage all the residents to look out for each other

community was constantly being established. The competition also had people constantly coming to the office to engage with Ian and Maree and that community spirit was strengthened. Bonds such as these certainly make some of the difficult conversations over such things as rent rises or bylaw infringements far more palatable. That sense of camaraderie and community is so important in strata living especially when something serious happens such as flooding or other emergencies and neighbours have to rely more than ever on each other.

A hundred kilometres or so to the south, Bruce and Jill Christie go that extra mile to ensure a great relationship with residents and their body corporate at the Surfers Hawaiian apartments. They’ve been there for eight and a half years, and the first thing they did when they arrived at the complex was to build trust with the owners who had seen many different managers come and go, often after only a year or two.

Bruce and Jill listened patiently to the many complaints of residents before rolling up their sleeves and getting stuck into the task of making the apartment building the very best it could be. They organised working days so that all the owners could come along and be part of the upgrades to the grounds and save money at the same time.

They introduced regular lift notices to inform the owners about what was going on around the place, and to make sure all residents and owners felt part of the community rather than being on the outer and not being informed. They then started organising little parties and get-togethers so residents could come down and have a drink and a chat, lubricating the wheels of community spirit. The body corporate took the move on board and now they are well attended get-togethers on the first Friday of every month.

During COVID some of the older residents at the Surfers Hawaiian became despondent when travel restrictions meant they could not see their families who lived interstate or overseas. They relied a great deal on Jill and Bruce for companionship and to lift their spirits. This hard-working couple organised birthday parties for many of the residents because they had become just like family to them.

Jill and Bruce also introduced a defibrillator to the building, and knowing that Bruce used to be a lifesaver, the residents know he is well-versed in first aid. It’s not part of his agreement, but a lot of residents have him on speed dial as their first call in an emergency. All those things are a way of building up real community spirit.

Chris Puplett, a senior building manager who will soon notch up 20 years with Oaks Hotels and Resorts, says there is no real mystery to being a great manager. It’s about being decent and polite and working hard to help others, he says. Some of the main buildings Chris looks after are Festival Towers and Charlotte Towers in the Brisbane CBD, and the Mews apartments in nearby Bowen Hills. He’s had to help many residents through tough times, including the floods of 2011, 2013 and most recently at the Mews, which suffered a lot of flood damage in February 2022.

Chris worked tirelessly to ensure the minimum disruption to residents and guests during projects such as lift upgrades and the ongoing Cross River Rail project.

In a similar way, Marion and Chris Simon from the Boulevard North Holiday Apartments, at Broadbeach, have gained a well-earned reputation for always striving to contribute wherever they can to the happiness of their strata community.

They realise that the MLR business is a service industry, and they have provided exceptional service at their complex to keep it in the best possible condition during holiday seasons that have recently been blighted by COVID, concrete remedial work at the property, fires and floods.

On a complimentary basis, Marion undertook the total refurbishment of the interior of one owner’s apartment, and upgraded several other apartments, all to improve the guest and owner experience.

She didn’t have to do this work but Marion realised good service translates into a great vibe in the MLR industry.

The best managers in this wonderful industry of ours provide a service that goes that extra mile - and beyond.

Damian Quinn

Mansell

Preparing your business for sale

Things you may want to check with the help of a lawyer:

• Are there any fees and charges you are not allowed to collect from owners?

• Do you have the correct authority needed for the fees and charges you have been collecting from owners?

By Ben Ashworth,

Selling your business can be very stressful as you juggle the demands of both the business buyer and the owners in your strata scheme, while being under the time pressure of a looming settlement date. One way you can significantly reduce this stress is to make sure your letting pool is in order, before you sell.

A common issue we encounter during a management rights sale is the need to fi x and/or replace lett ing appointments before the sett lement date.

The range of problems we regularly see include:

• missing or unsigned lett ing appointments;

• missing or out of date fees and charges schedules; and

• non-compliance with managed investment scheme obligations (only relates to short-term lett ings with more than 20 owners in your rental pool).

If you have any of these issues with any of your lett ing appointments, it is quite possible that the buyer of your business could demand a price reduction. Renegotiating your sale price is not the kind of stress you need once you are several weeks into the sale process.

To avoid this outcome, it is far better for your business (and your mental health) to be proactive and to review all your lett ing appointments well before putt ing your business on the market.

The things you can check yourself include:

• Do you have a lett ing appointment in your records for every lot in your lett ing pool?

• Is every lett ing appointment signed by the owner (usually you need signatures for all owners when there is more than one) and signed by your agent entity?

• Are your lett ing appointments complete with current fees and charges schedules att ached?

• Are there any fees and expenses you have been charging owners that aren’t shown in the fees and charges schedules?

• In Queensland, was the correct version of the lett ing appointment form used and is the lett ing appointment assignable?

• Does your lett ing appointment need to be managed investment scheme compliant (for short-term lett ings) and, if so, is it?

If you complete a review and do find there is a problem with your lett ing appointments, it gives you the opportunity to fi x the problem in your own time and without the pressure of a buyer treating every problem as an excuse to lower the business sale price. It also means you have more time to shepherd solutions past the owners in your lett ing pool and waiting weeks or months to receive a signed document in the mail won’t have you pulling your hair out. By being proactive and by considering all the questions raised above and resolving any issues you find, your business will be far healthier, and you could avoid losing several thousands of dollars when it comes time to sell your business.

Senior Associate, Small Myers Hughes

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Bodies corporate planning for an EV future

By the Office of

More Queenslanders are deciding to switch to zero-emission vehicles as Australians reduce their carbon footprint. Zero-emission vehicles include: hydrogen vehicles, fuel cell vehicles and electric vehicles (EV).

In 2022 the Queensland Government released, Queensland’s Zero Emission Vehicle Strategy 2022-2032 and Zero Emission Vehicle Action Plan 2022-2024

It is anticipated that by 2030, 50 percent of new passenger vehicle sales in Queensland will be zero emission and 100 percent by 2036.

With this in mind, bodies corporate should anticipate an increase in requests for EV charging on common property and within lots. There is no one-size-fits-all approach to handling an EV charger request or whether body corporate consent is needed, and the way consent must be given can vary.

This article will canvas some of the more common ways to seek approval for EV chargers, as well as some of the aspects bodies corporate may consider when planning for an EV future.

The information in this article is based on bodies corporate regulated under the Body Corporate and Community Management (Standard Module) Regulation 2020 (the Standard Module). You can check your

Community Management Statement (CMS) or with Titles Queensland to see which legislation applies to your scheme. This is general information only and does not take into consideration the unique circumstances of your body corporate. This article is not a substitute for legal advice.

Private electricity networks

If a body corporate allows occupiers to ‘take’ electricity from the wiring it owns, operates, or controls, it can be deemed to be operating a ‘private electricity network’.

It is illegal to operate a private electricity network without a network exemption from the Australian Energy Market Operator (AEMO), and there may be further requirements the body corporate needs to meet under the National Energy Laws (NEL).

Your body corporate may already be meeting these requirements under the NEL. If you are unsure you may like to seek legal advice. Information on the NEL goes beyond the scope of our office.

Scenarios

Lot owner seeking approval to install their own EV charger: Owners will require the consent of the body corporate to install an

EV charger on common property. There may be a by-law regulating the installation or it may be considered as an ‘improvement’ to common property.

By-laws

Some bodies corporate may have a by-law requiring a lot owner to seek body corporate consent for the EV charger and may even stipulate a particular type of charger (as well as other requirements such as its location).

By-laws are unique to each scheme and are generally contained in your community management statement, or you can obtain a copy of this document from Titles Queensland. You can read more on our website about what by-laws apply.

Improvement to common property by lot owner

Whether the EV charger impacts common property will need to be considered. This is because improvements (changes) to common property by a lot owner require body corporate consent under the legislation (Standard Module, section 187).

Installing an EV charger in a common property car park can be identified as an improvement to common property. However, EV chargers installed inside the lot boundaries may create issues. Even when being installed inside

a lot, some electrical wires (utility infrastructure) can be common property (Act, section 20).

In many bodies corporate, an EV charger will be connected to common property utility infrastructure in some way, deeming the EV charger an improvement that requires body corporate approval.

Body corporate consent

The committee may consider an improvement to common property by an owner if the:

• total cost of the EV charger is less than $3000; and

• the EV charger does not detract from the appearance of a lot; and

• the body corporate is satisfied that the use and enjoyment of the charger is not likely to be a breach of the owner’s duties as an occupier.

Examples of duties can include not causing a nuisance to others in the scheme (section 167 of the Act), and not impacting the supply of utility services to other lots or common property (section 166 of the Act).

If the improvement is outside the committee’s authority, it must be authorised by ordinary resolution at a general meeting (Standard Module, section 187).

the Commissioner for Body Corporate and Community Management

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If approved by the body corporate, the owner must maintain the improvement and comply with any conditions of approval unless excused by the body corporate. You can read more about lot owner improvements on our website.

How to apply

If a lot owner requires approval, they can submit a motion to the appropriate meeting of the body corporate (either a committee or general meeting motion).

Things an applicant may like to consider

A lot owner should check their EV charger will not overload or cause supply issues with the electrical utility infrastructure. It is an offence to interfere with utility infrastructure or utility services in a way that may affect the supply of utility services to another lot or common property (Act, section 166).

Further, if a lot owner does not seek approval when they are required to under the legislation or by-laws, they may be held responsible for resultant property damage (Act, section 281).

Things the body corporate may like to consider

The body corporate and its committee should make reasonable decisions regarding the request (Act, section 94 and section 100).

What is a reasonable decision will vary depending on the situation. There are, however, some universal aspects that could be considered. These include:

• What is the current capacity of the electrical utility infrastructure at the scheme?

• What type of charger is being proposed?

• Can the utility infrastructure handle multiple chargers?

For example, if the lot owner is proposing a fast, threephase charger, will the utility infrastructure be able to handle this? Even if it may be able to handle one, what if every lot owner in the future wishes to have the same type of charger?

Will the charger be installed by a qualified electrician and is the charger electrically compliant? How will the body corporate meter and charge the lot owner for electricity usage?

Service agreements

The body corporate may like to consider whether it is appropriate for the EV user to enter into a service agreement as a term of the approval for the EV charger. The body corporate may supply (or engage someone else to supply) utility services (including electricity) to owners or occupiers of lots (Standard Module, section 210). Where the body corporate has an agreement with the person to whom services are supplied, the body corporate can then charge them the costs of the electricity that the EV charger is using. Importantly, though, the body corporate can only seek the actual costs incurred by the body corporate. Therefore, having a metering device may be important.

Body corporate installing a communal EV charger

In preparing for the future, some bodies corporate may decide that a communal EV charger(s) on common property is best suited for their scheme.

For example, an expert may advise that the current utility infrastructure was only suitable for fewer EV chargers than lots in the scheme. Some bodies corporates may find it reasonable to have EV chargers available for use on common property to avoid a first-in-best-dressed scenario with applications for chargers (which could mean some owners in the future cannot have chargers when others can, and possibly lead to disputes).

Improvement to common property by body corporate

A body corporate can make an improvement to common property for the benefit of the body corporate if it is approved (Standard Module, section 186).

Some improvements can be approved by the committee, others will need an ordinary resolution and others will need a special resolution. The type of approval the body corporate requires will depend on the cost of the improvement and how many lots are in the scheme. You can read more about improvements to common property by a body corporate on our website.

General considerations

As bodies corporate must make reasonable decisions, expert guidance may assist with the decision-making.

Considerations of the body corporate may be:

• What is the current capacity of the electrical utility infrastructure at the scheme?

• What kind of EV chargers can the current infrastructure handle, and how many?

• Is there a suitable area on common property for the EV charger(s)?

• How will the body corporate meter and charge the EV owner for electricity usage?

• What administrative systems need to be in place to ensure the body corporate is not running a business (Act, section 96)?

• If a communal EV charger is installed, should a by-law be implemented regarding use?

Visitor parking

If the proposed area for an EV charger is currently visitor parking, the body corporate may like to consider if:

Any parking by-laws need to be amended to allow an owner or occupier to park in the area; and Whether removing this visitor

car park would conflict with the Development Approval (DA) conditions. Some developments will have a set number of car parking spaces that must remain visitor parking under the DA conditions. The committee may like to make enquiries with their local council or seek legal advice.

By-laws

The body corporate must administer the common property and assets for the benefit of the owners of the lots included in the scheme (Act, section 94). This is typically achieved through by-laws which are used to regulate the use and enjoyment of common property and assets (Act, section 169). A body corporate may find it necessary to include a by-law regulating the use of EV chargers as the use and management of communal EV chargers on common property are not expressly covered in the legislation.

By-laws do have limitations (Act, section 180). For example, a bylaw cannot impose a monetary liability. A body corporate may like to seek legal advice on the wording of an appropriate by-law for specific situations. A by-law could cover things such as:

• Who may use the EV charger;

• When the EV charger may be used and for how long;

• Whether vehicles that are no longer charging can remain parked in the bay.

You can read more about making and amending bylaws on our website.

Further information

For further information on bodies corporate in Queensland, please visit our website. Our information service can also answer general questions about the legislation. Call us on 1800 060 119 or submit your question online.

Chris Puplett: Tips for success from TOP Building Manager of the Year

By Grantlee Kieza, Industry Reporter

This month Resort News caught up with Chris Puplett, who took out the Building Manager of the Year title at ARAMA’s prestigious TOP Awards in July and says there is no mystery to his success.

“To be honest it just comes down to treating people how you want to be treated,” said Chris, a Senior Facilities Manager at Oaks Hotels, Resorts & Suites.

“It’s about being decent and polite and working hard to help others. It’s very rewarding when people see the work you’re doing and appreciate it. Having good bodies corporate behind you is so important too.

“I was thrilled at winning a TOP Award, but it was a real team effort, not just me. It was so good for my company, Oaks, to receive that recognition. It’s all about the support you have around you and I have a great team working with me.”

Chris will notch up 20 years with Oaks next year and says he has a great bond with the company, a loyalty built when his employers were “so supportive” to his family when Chris’s wife Vicki was battling cancer a decade ago.

“Vicki is fully recovered now but it was a tough time for a while and Oaks was great all through that period. Nothing was too much trouble for them, and I feel very loyal to them after so many good years with the company.”

Oaks has eight properties in the Brisbane CBD, as well as one at Bowen Hills, Milton, the Gabba, Ipswich and Redcliffe.

“In all of them,” said Chris, “there’s a mixture of owner

occupiers and long-term and short-term rentals.

“At the moment I’m the Senior Facilities Manager for Brisbane but the main buildings I look after are Oaks Brisbane Festival Suites and Oaks Brisbane Charlotte Suites in the CBD, and the Oaks Brisbane Mews Suites in Bowen Hills.

Chris grew up at Zillmere on

the north side of Brisbane in a family that loved horses, and he still has a passion for thoroughbreds.

He was a keen concert goer, too, at Brisbane’s premier entertainment venue Festival Hall on which Oaks Brisbane Festival Suites now stands. The property is now a residential building of 401 apartments, of which Oaks manages 140.

A Hall of Fame in the building’s foyer pays tribute to the days when Festival Hall hosted the greatest names in show business from The Beatles to the Bee Gees, Buddy Holly to Led Zeppelin, Queen, Elton John and Tina Turner.

“I went to a lot of concerts there when I was young and you’d come out unable to hear for a few days,” Chris said.

Chris Puplett

“Paul McCartney is coming to Brisbane in November, and I reckon it would be great if he could make a visit to the Hall of Fame in the foyer of the Towers since he played at Festival Hall almost 60 years ago with the Beatles. It’d probably be a 100 to one shot but you never know.”

Chris started in management rights while working in the construction industry.

“The company I worked for did a big development called Bridgewater at Kangaroo Point and at the end of the job they asked me to look after the property for three or four months during the handover,” he said.

“The company that bought the management rights then asked me to take care of Bridgewater full-time. I had two young kids then and saw it as a good opportunity.

“Bridgewater ended up being taken over by Quest and after nine years there I got transferred to the Quest at North Quay. Oaks bought the management rights for that building and they asked me to stay on, so I did, and that was 19 years ago.

“I’ve been with Oaks ever since and they’ve looked after me very well, especially when Vicki was sick for a couple of years. I feel very loyal to them.”

So, what does Chris say goes into making a good building manager?

“Patience is a big factor,” he says. “Because you are working with such a variety of people: owners, occupiers, investors and tenants, you really have to be patient and honest and as fair as possible with everyone involved. And whatever the situation you want to help as much as you can. It’s a residential building so if everyone gets along it’s a much better outcome for everybody.” His patience has been tested over the last 12 years, though.

“There have been challenging times,” he says, “The floods of 2011 and 2013 were tough. In 2011, Oaks Brisbane Festival Suites and Oaks Brisbane on Margaret Suites were our big buildings then. At Oaks Brisbane Festival Suites, we lost our lifts that go to 41 floors and we had to work hard to make sure the people on the high floors had everything they needed. We

had to get the lifts running as quickly as we could. We had great contractors and I have to give Otis credit because after all the water was extracted we had the lifts running again in 11 days.

“One of the most important things to be a good manager is to have those relationships with contractors and suppliers who can help get things done quickly.”

Chris says he has been using MYBOS for the last two years and that it has been invaluable, especially at Oaks Brisbane Mews Suites and Oaks Brisbane Festival Suites where so many fittings have had to be replaced.

“It’s vital to have the history of the building, repairs and maintenance all recorded,” he said.

“With MYBOS you can schedule all the maintenance and the body corporate can access the files too and that saves a lot of explanation at meetings because it’s all written down.”

He predicts the business of management rights will only get bigger, despite the speculation about cutting terms and other threatened changes.

“It’s a growing industry and it is only going to get bigger and better,” Chris said.

“People are struggling to find a place to live now and the more high-rise buildings and residential complexes that are built the better. All the new buildings will need someone to manage them.”

Chris and Vicki have two grown daughters, Caitlin now 29, and Meg 27. He has had a lifelong passion for horseracing, though some horses are faster than others.

“I’ve had a few little shares in horses over the years and one at the moment which is doing pretty well,” he said.

“I love going to the races and I’ve had a couple of good wins at the track. I love going to the beach as well and one day I’ll happily retire down to the Gold Coast.”

A colleague who nominated Chris for the Building Manager of the Year Award said that during a challenging year of flood recovery, Chris “once again showed his dedication and work ethic not only to the various body corporate committees but also to the various building

managers who relied heavily on Chris’s support during this time”.

The TOP Award judge said that one aspect of Chris’ outstanding work was his 19 years of experience and the wide range of buildings that he has managed and is now currently responsible for.

“The last few years have posed a difficult time for the management rights industry,” the judge said, “with COVID, a shortage of tradespeople and materials, and shortages of staff and weather conditions in many areas resulting in flooding that has put more pressure on building managers. However, this year’s winner has shown how experience and skills can rise above adversity.”

Chris was also praised for bringing in new systems “to more efficiently manage and maintain the complexes”. This greater efficiency led to a reduction in manning levels and freed up staff to be utilised in other areas.

“All of this leads to reduced costs for the body corporate - a win-win for all,” the judge said.

Oaks Brisbane Festival Suites

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Is it your circus?

By Frank Higginson, Partner, Hynes Legal

I don’t know where the phrase comes from, but recently I have been using “Not my circus; not my monkeys” quite a bit.

It’s really quite apt for many situations that come across my desk. But it’s equally applicable to any range of occupations, and it has enormous application for operators of management rights businesses.

Any management rights business has numerous stakeholders: resident managers, lot owners (as residents or investors), body corporate managers, committee members, tenants, guests, insurers, business suppliers, common property service providers, bankers, financiers, lawyers! and so on…

Any strata building can become one big circus, and all of these stakeholders are the

monkeys running around under the Big Top. Unfortunately (unless you consider the Commissioner’s Office to be the ringmaster) there is no one in control of any particular circus and the monkeys can largely do as they please.

Some of these monkeys are more unfettered than others in terms of their behaviour and all of them have the ability to do all manner of nasty things to others. It might just be chattering inanely. Maybe it’s stealing someone else’s banana. Maybe it’s throwing a banana or (heaven forbid) some sort of faecal matter at another monkey. There is room for all sorts of shenanigans. And the more monkeys you have, the more chances for them to act up in some way.

I could go on with the monkey analogy for a lot longer, but I am sure you get the drift .

I have lost count of the conversations I have had with

management rights clients over the decades about issues in their particular circus. The reasons for issues are many, but the most disappointing conversations relate to issues that aff ect the manager and that the manager had no reason to become involved in originally. It is easy to become emotionally involved in your community and the decision-making about it. When emotions take over, you tend to pick sides. When you pick a side, you absolutely latch onto support from that side, but you immediately alienate the other. No body corporate committee ever stays united forever. People come and go. The difficulty for resident managers who pick a side is that if the opponents get control, guess who becomes an easy target?

Resident managers need to be ‘Switzerland’. They need to stay as neutral as possible. To do otherwise is to invite potential trouble in the future.

Now, don’t take this as advice not to stand up for your rights. You must do that. There are times when a small piece of ‘acting out’ might turn into a bigger one, and making sure you look out for yourself is very important. But there are lots of things you don’t have to get involved with.

Are there arguments in the building about whether to paint it beige, white, cream, or bone? The correct answer is: “Whatever you want. I will go and arrange the quotes. Beyond that, I don’t mind.”

It’s not, “anything other than cream is idiocy” because the beige brigade might be coming for you.

The analogies are endless. Picks your fights. Choose the right hill to die on.

Don’t go around picking sides in your community if you can avoid it, and if the issue doesn’t aff ect your business, then be very careful before you wade in.

Make sure that you consciously want the issue to become your circus and your monkeys before you go boots in. Otherwise, get up in the stands with the rest of us with your popcorn and enjoy the show – up there, you have far less chance of things being thrown at you by a militant monkey!

Any strata building can become one big circus

© Adobe Stock

Can you minimise costs whilst maintaining deductibility?

is deemed to be partially for business and private purposes, only the interest on the business portion of the debt is tax deductible. The potential issue with temporarily parking funds to reduce debt comes if the funds are then drawn out for non-business purposes - you can end up unwittingly ‘tainting’ the deductibility of the finance costs.

By Lel Parnis, Principal, Holmans

Notwithstanding the pause on interest rate hikes, the increases in interest rates and their impact on businesses’ cash flows have been significant over recent months.

Understandably there is increased motivation to build cash reserves as we look into the unknown in terms of what the banks will do with rates going forward. Whilst cash held in current accounts may now be generating - at least some - interest income, it likely pales in comparison to the interest you would be being charged on business debts. For instance, you might be making two percent interest on cash held in your general account for provisions for BAS/ tax liabilities, etc. which may only be paid out on a quarterly basis, all the while you are likely paying over six percent interest on your business loans. Using funds to temporarily reduce business loans could certainly reduce interest costs and ultimately improve business cash flows. However, it’s important to be aware of potential implications on the deductibility of the interest depending on how such cash management actions are implemented.

Only interest expenses incurred for income-producing purposes are tax deductible. Where debt

Redraw facilities

Where your business loans have a redraw facility, generally you can easily transfer funds to reduce the loan balance from within your internet banking and, of course, this reduces your interest payable thereon. Similarly, you can generally redraw the funds paid in excess of minimum repayments with ease.

Taking the example above, if you were to transfer say $20k each month to reduce your loan balance and then draw $60k out to pay the ATO on lodgement of your quarterly BAS, you’ve effectively reduced your interest costs without negatively impacting the deductibility of the interest costs on your loan. And whilst I am not licensed nor inclined to give advice on money management, you can see this might be a better option than leaving the $20k each month accumulating in a general bank account earning little to no interest income.

Where you need to be cautious is where it may be unclear as to the purpose of the withdrawal of funds from the loan account.

Regardless of the intention being to temporarily reduce the loan balance, if you are considering putting $50k against the loan today but might draw out next month to buy a (very small) boat then you might want to reconsider as this would forevermore reduce the portion of interest you would be entitled to claim as a tax deduction. Tread carefully.

Offset accounts

An offset account is a current/ general bank account that is linked to a loan account whereby the balance held in the current/offset account effectively reduces the debt amount on which the daily interest is calculated – so the more cash in the account the lesser the interest amount.

Regardless of the nature of cash put in or taken out of the offset account the nature of the loan will not change.

From a tax perspective, this is the ideal scenarioyou can reduce your costs whilst avoiding ‘tainting’ the deductibility of the interest regardless of whether you draw funds from your offset account to go on holiday, etc – you

haven’t changed the nature of the underlying business debt and any interest costs would continue to be tax-deductible to the extent they were originally. However, offset accounts linked to business loans are not something I see often anymore so best liaise with your banker to determine what options are available to you.

Important Disclaimer: This article is published as a guide to clients and for their private information. This article does not constitute advice. Clients should not act solely on the basis of the material contained in this article. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.

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It’s all about location

There isn’t a week that passes without someone asking me: “Where is the best place to buy a motel?” Whether it be the broader question of inland, coastal, north, south, or the more specific question of which is the best town to buy a motel.

The next question is: “What is the best position to have a motel?” Highway, CBD, suburbs, beachfront, riverfront...

Of course, there is no one silver bullet answer. It depends on numerous variables and on each individual property and business. There is no ‘best’ location for a motel. All the things that go into making a business or property what it is, such as location, presentation, the operator, the standard of beds, the local economy, the services provided, marketing, and so on, all play a part.

There will always be locations where the economy is performing stronger than others at one time or another. Certain positions within a locality may also be performing better for specific reasons. In regard to the best places, timing plays a big role here with fluctuating local economies and how they are performing.

An excellent example of this is Mackay. It had a very strong demand for accommodation over the long term until the economy declined about ten years ago. After a few years demand began to increase again and today the local economy and demand for accommodation is very strong. Hence many experienced motel investors are now taking the opportunity to buy back into Mackay.

The strength of economies and industries fluctuates, they are

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cyclical. No locality runs hot all the time, and they will fluctuate for different reasons. Mind you, this could describe any town or region over the last 25 years. A common situation we encounter is receiving inquiries from those wanting to buy their first motel and invariably wanting to limit their search to one town or location. This is fine when buying a house, as the decision is largely based on where one needs to live for employment, family, or retirement purposes. When buying a business, limiting the search to where one wants to live puts them at a major disadvantage. It is the best way to buy an unsuitable business, as it is based on the wrong reasons. Focusing on the business and considering the suitability of the area and locale as part of that decision would seem the best option. One should always be looking for the best business opportunity to suit requirements. Therefore, if return is the driving force so be it. If the type of business is the determining factor, great. But limiting a search for a motel for example, to one area, means the best business opportunity may end up being written off as an opportunity lost. This does not mean buying a business that is, locationwise, completely unsuitable for family reasons or another. It simply means not limiting the search, by keeping the options and possibilities open.

Explore different areas of the state that may not have been considered suitable. A lot of the time people end up finding the perfect motel for them was not what or where they had considered going at all when they first started out looking.

Also limiting the search to one location may mean being stuck as ‘the kid outside the candy store’. Whilst others are buying and selling, it may take years for a suitable motel to become available in the desired location. A common objection heard a lot is that they were told years ago that a particular town was not a good motel locality, for whatever reason. We say, have a look at all the details and facts about the locality and the business, then make your own decision.

Years ago, I was given some advice that has stuck with me for probably 25 years, it was:

“When making decisions in business and life you should listen to the advice given to you by the trusted people around you such as your accountant, solicitor, financier, friend, parents, etc. Take that advice on board, go with it, go against it but be your own man and make your own decisions.”

I have tried to use that advice and suspect have even continued to subconsciously use it since. This relates directly to considering a motel and its location and making the decision on what one believes is the best option for them.

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

© Adobe Stock

Trouble in paradise

As I sit here in an airport lounge contemplating the meaning of life, my thoughts turn to our so called ‘national carrier’ the flying kangaroo, the displayer of the Yes vote; the virtue signalling disgrace now facing multiple client lawsuits, to say nothing of the action commenced by the ACCC. All this before we even start to contemplate the alleged cosy arrangements between government and Qantas to freeze a competitor out of the game and assist in customers being ripped off, cheated and treated appallingly.

The latest accusations of Qantas selling tickets on cancelled flights sounds a lot like the “advice for no service” accusations aired during the banking royal commission, and we know how that ended. How did it come to this for a company that was once applauded far and wide and held up as a source of pride by many Aussies?

To better understand the situation, I am indebted to the poet Rumi, who died in Turkey in 1273. In his Third Book of Masnavi, one of six books of poetry written in the 13th century, Rumi observed that a fish rots from the head down. Hard to argue when observing the arrogance and hubris of the outgoing Qantas CEO.

It is now clear that Qantas deliberately treated customers

with disdain over COVID cancellation flight credits and made it so hard to interact with the company that many simply gave up. It continues to charge fares significantly higher than competitors and is suspected of working with government to ensure that other international carriers are restricted in creating a truly competitive environment.

All of this is an incredibly bad look for a brand that was once the pride of a nation, but it gets worse. In attempting to create an uneven competitive landscape, Qantas may well end up restricting international inbound access to local tourism markets for all but the wealthy traveller. There’s no doubt that they are losing customers as well and that’s a shame.

Regrettably, the Qantas debacle points to a broader malaise in the travel industry and indeed in the Australian corporate landscape. Companies increasingly seem to be adopting a strategy of making it near impossible to contact them, particularly if they owe you money.

Recent interactions with travel insurers are a case in point. My investigations reveal that one insurer routinely either pretends claim documents haven’t been received or even worse, declines claims as a first strike strategy. It then adopts a process of obfuscation designed to deter

the claimant from pursuing the matter. It gets worse. A very large nationwide travel agency that peddles this policy knows that’s what happens but fails in its duty of care by not alerting the punter. When I questioned how this could be I was told “yes, we know they are terrible but we have a commercial arrangement”. Wow, I hope when my business moves to a model recommending hopeless lenders that excuse will cut it with ASIC and APRA. Here’s a tip for the productivity commission. Calculate how many productive hours the Australian workforce spends dealing with corporates and government departments who have hour long call centre queues, sneaky and tricky ways to dodge and weave, poorly trained staff and woeful systems. The number will be dead set frightening! Then hold those corporates and departments accountable for the colossal waste of money caused by their combination of ineptitude and disrespect for customers. Whoops, silly me. Would never happen when our Prime Minister would rather cozy up with the CEO of Qantas than try and look after the little person. To hell with cost of living and mortgage stress, just get that Yes on the plane Alan. I’ll leave you with a word that crosses my mind whenever I think of the departing Qantas

CEO. Actually, two words cross my mind, but one is unprintable. Schadenfreude

Disclaimer: I’m not a supporter of corporates spending money on political issues. Doing so fails the fundamental test of acting in the best interests of shareholders. That would be the owners of the business who are never consulted when boards decide to pursue vanity projects outside their core business. Even if I support the cause I don’t support shareholders’ funds being spent. The risk of corporate and political corruption is just too great.

If you think I’m being alarmist reflect on Qantas supporting our Prime Minister’s current pet project while our government denies another international airline increased access to compete with our so-called national carrier. A coincidence no doubt.

Breaking News: By necessity writing this stuff during a current news cycle always risks the content becoming obsolete prior to publication. From the wilds of Canada I receive news from home that poor Alan has been punted, the Albanese Government has been left smelling less than pleasant and the Qantas board may well be held to account. My day could hardly get better.

By Mike Phipps, Mike Phipps Finance

© Adobe Stock

Legal battles loom over lobbying legislation

By Grantlee Kieza, Industry Reporter

New legislation that will curtail the influence resident managers and caretaking service providers can have on a complex are shaping up as a legal minefield. Leading management rights lawyer Frank Higginson of Hynes Legal says “it’s going to be on for young and old” and that there will be “a lot of conflict” as managers, bodies corporate and lot owners do battle over the interpretation of the proposed Body Corporate and Community Management and Other Legislation Amendment Bill 2023

The Bill was introduced into Parliament by Attorney-General Yvette D’Ath on August 24.

Under Section 42 there are amendments to Schedule 2 relating to the code of conduct for body corporate managers and caretaking service contractors.

The proposed legislation now reads: “A body corporate manager or caretaking service contractor must not unfairly influence, or attempt to unfairly influence, the outcome of a motion to be decided by the body corporate.”

Mr Higginson says the new legislation will probably be passed into law before the end of this year, and he predicts it will cause many legal disputes.

The proposed legislation is designed to stop oldfashioned pork barrelling in a building, where a manager could potentially offer incentives to have owners vote in line with them.

“Stopping commercially incentivising people to vote in favour is a no-brainer,” Mr Higginson said.

“The question is going to be what is ‘unfairly influence’?

“There will be some blues about it no doubt.

“And what’s ‘unfair’ as opposed to ‘fairly influence’ - what if you simply put forward a point of view, is that unfair influence?

“Is creating a website with your point of view unfairly influencing if that point of view is not necessarily agreed to by everyone.

“Is sending letters to all the owners ‘unfair influence’?

“Adjudicators will no doubt decide that, but I think these proposed changes will create a lot of legal work.”

Mr Higginson posed the question that if body corporate managers and caretaking service contractors were legally prevented from “unfairly influencing” a vote in a complex, what about lot owners unfairly influencing other lot owners?

“Nothing has been said about them,” he said. “In theory they can still do things to influence elections that other people can’t.”

Chris Irons, the former Queensland Body Corporate Commissioner, who now runs Strata Solve, Queensland’s leading strata dispute resolution and problem-solving firm, said the proposed legislation had the potential to stymie improvements to a complex.

The solution, he said, was for management rights holders to become more creative.

“A lot of people think lobbying will be banned but it’s not. The term being used is ‘unfairly influence,’” Mr Irons said.

“Having good relationships with the owners will be more crucial than ever. If a management rights holder and an owner have a really good relationship - if the manager manages their apartment in the letting

pool, you can see a scenario where the owner becomes the manager’s de facto.”

Mr Irons said he did a lot of lobbying work with management rights holders and the word “lobbying” did not appear in the new bill.

“As it currently stands if you’re a management rights holder you can go out there and talk to your owners and encourage them to vote for something or indeed, not to vote for something, depending on what you want,” he said.

“But that’s going to be restricted once these laws are enacted.”

Mr Irons said he could understand that the laws were necessary to stop anyone putting undue pressure on lot owners for such things as pay increases, but they could stop a manager trying to get things done for the benefit of everyone in the building.

© Adobe Stock

“Politics and strata are identical,” Mr Irons said. “Managers can’t get what they want done in a building if they don’t have the numbers - some people don’t like me saying that and some people don’t like hearing me say that – they think strata should be a friendly, hold-hands consensus type of approach

but often it doesn’t work like that. “Owners can still do what they like but if you’re a management rights holder looking to make improvements to a building your ability to do that could be restricted.

“At the moment I do a lot of work for management rights

holders along those lines. I sit with them and work out the numbers they need in a building to get action - we work out who they have on board, who’s a possibility and who you must work on really hard.

“Just yesterday a client said they wanted a top-up passed but

the vote on it at their annual general meeting failed miserably after the committee sent out a letter saying don’t vote for it.

“In that situation the resident manager can try to combat that message but with the proposed new legislation it makes it very difficult.

“What he should do is sit down with the committee and find out why they are so opposed and see if he can negotiate a solution. A good relationship with the committee is crucial.”

Trevor Rawnsley, the CEO of the Australian Resident Accommodation Managers Association (ARAMA) said whenever legislation was “vague and open to interpretation” the result was a “lawyer’s picnic”.

“There’s already plenty of reasons to have disputes in strata and we don’t need to create new ones,” Mr Rawnsley said of the proposed changes to the legislation.

“We are not in favour of anything which is likely to lead to more disputation and we are very interested in clarity. The less complicated the legislation is the better.”

Planning for a lift upgrade

lift services contractors (those who stand to gain financially from the upgrade works) so where can you go for an independent piece of advice?

We highly recommend an independent lift engineer or technical auditor be engaged around year 15 of the life of the lift to undertake a condition assessment. The independent lift auditor is not the lift service contractor. They are totally independent of the lift service contract.

The independent lift auditor’s role is generally as follows:

• Conduct a desk-top review of the approved plans, construction drawings, and plant registration certification for the lift(s).

• Conduct a desk-top review of the records of maintenance and certificates of compliance for the lift servicing regime.

• Undertake a full site inspection and survey of the condition of the lift, shaft, and all componentry.

the building owner proceed? What should be considered?

• Full lift replacement work is likely to be considered assessable building work under the Building Act, so you will need a private certifier.

• Has the structural integrity of the lift shaft been assessed? Consider engaging a structural engineer to assist with the investigation and reporting on this. The private certifier is likely to require confirmation that the lift shaft is structurally sound and able to take the replacement lift safely.

• Selecting the new lift. What is ‘right’ for our purpose in terms of speed and other considerations?

• Cost: How much do we need to spend?

By Lynda

One of the costliest assets in your building is likely to be the lift. Costly for maintenance, and costly for replacement.

So how do we keep our lift in optimal condition and plan upgrades in a timely and cost-effective manner?

Depending on the type of lift equipment installed, a lift is

generally expected to have a useful and reliable lifespan of between 20 to 30 years (check ABMA Building Management Code©, Chapter 1, Table 1C for Asset Life Cycle Indicators). Building owners and their elected committees do well to take this life cycle indicator into account when planning for the future.

Lift service contractors can encounter lifts that are 40 to 50, or even 100 years old - many still running without ever having been upgraded or ‘modernised’ – but this is rare. Most modern lifts are ready for lift car interior renovations every ten years or so, and hydraulics and electrics due for upgrading every 15 years or so. Lifts are likely to need replacing at least once - possibly twice - throughout the life of the building.

So how do you make the decision on when to upgrade or replace? It is difficult to rely on the recommendations of the

Once the independent lift consultant has completed their investigations they will provide a comprehensive report on the condition of the lift, how much life is left in it, and a modernisation or upgrade plan. They will also comment on the quality of the servicing being done by the lift service contractor and you can discover if all the required maintenance services are being done properly. The independent lift consultant’s condition report is the ideal document that the building owner needs before making any decision to upgrade or replace.

In addition to reporting on the condition of the lift, commenting on the quality of the servicing, and confirming the remaining useful life to be expected, the independent lift consultant will also provide estimates of upgrade costs for budgeting purposes. This valuable information can be provided to the sinking fund forecast consultant for integration into the sinking fund report or capital works budget.

Upgrade considerations

So once the independent lift audit report is obtained and full replacement is recommended, how should

Some might say that the cost of the lift upgrade should be dictated by the savings in the sinking fund or capital works fund. Others might want to go for the cheapest option. My recommendation is that the building owner obtain independent specialist advice (again, from the lift consultant) on what type of lift will best suit the building’s infrastructure and needs.

The lift consultant will not try to ‘sell’ a particular lift product to you. They will provide independent advice on what is the best fit for you. They will consider the hard infrastructure (for instance, the lift shaft and electrics) and apply consideration for end-use. The cost for lift replacement or modernisation is primarily determined by the extent of work required, the desired speed of the lift and the number of floors the lift is required to serve. The end result should be considered before the budget is set.

Avoiding the cost of engaging an independent lift auditor to obtain advice about lift upgrade requirements may be a false economy. Taking advice from a lift salesman about the best solution for your building may also be fraught with danger. Take some sound advice and engage an independent lift auditor before taking any steps toward upgrading or replacement.

Kypriadakis, Diverse FMX

© Adobe Stock

The power of empathy

Embrace empathy and unlock its transformative power

asked how everything was going? I then opened the conversation on how hard this industry could be, off ering to help in anyway outside of the scope they had hired us for. I said I was more than happy to help or merely be a listening ear or an understanding shoulder. This client has now become one of our biggest advocates and continues to work with us closely. Applying kindness and understanding is a superpower in business never a weakness.

individual’s voice matters and becomes a catalyst for personal and professional growth.

By Kelley Rigby, Managing Director, Lett s Rebuild

Empathy, one of my favourite words in the English dictionary.

Empathy is the ability to share someone else’s feelings or experiences by imagining what it would be like to be in that person’s situation. By practicing empathy, we can build stronger relationships, forge trust, and create a lasting impact on those around us.

When it comes to the management rights business, empathy can act as a secret ingredient for success. Exceptional customer service is the cornerstone of any thriving business and empathy plays a pivotal role in understanding and fulfilling the needs of your valued clients. By putt ing ourselves in their shoes, we can better

understand their concerns, aspirations, and desires. This understanding empowers us to tailor our services to their specific needs, delivering an unparalleled experience that surpasses expectations and fosters long-term client loyalty.

It’s also worth noting that empathy plays a critical role in conflict resolution within the management rights business. In any business conflicts inevitably arise but with empathy, we can transform these conflicts into opportunities for growth. By genuinely acknowledging and validating the emotions of all parties involved, we create an environment that encourages collaboration and understanding. This empathetic approach paves the way for mutual resolutions and fruitful outcomes, ensuring that everyone’s needs and perspectives are heard and respected.

I recently found myself in unfamiliar territory where a client had become quite hostile and rude regarding some work we had provided. As I picked up the phone to communicate with them, I made sure that I remembered to practise what I preach, approach them with empathy, kindness and understanding. Firstly, before addressing their email I simply

Furthermore, empathy extends beyond client interactions and encompasses the internal workings of your business. Creating an empathetic work environment within your team allows for a sense of unity, support, and shared purpose. When individuals feel valued and understood, they are more motivated to contribute their unique skills and perspectives, leading to enhanced productivity and a harmonious workplace. An empathetic leadership style promotes open communication, transparency, and the free expression of ideas and concerns. It fosters an environment where every

Incorporating empathy into your management rights business and embracing it as a way of life can lead to boundless benefi ts. By actively practising empathy, you can enhance your customer service, navigate conflicts more eff ectively, foster a positive and productive work environment, and unlock profound personal growth. Empathy empowers you to make meaningful connections, improves your decision-making capacities, and allows you to lead with compassion and understanding. Above all, embracing empathy enhances your overall outlook on life, allowing you to experience the world in all its beautiful diversity. So, let’s embark on this powerful journey, embrace empathy and unlock its transformative power. Let empathy be the guiding force that shapes our businesses, our relationships, and ultimately, our own personal growth. Together, let’s create a world where empathy is celebrated, cherished, and eff ortlessly put into practice.

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.)

Southpoint Elevates with Greenplate BBQs

The Apartments

Southpoint, perched majestically at South Bank’s apex, offers a luxury living experience with 195 high-end apartments spanning 18 floors and top tier amenities.

The crown jewel, a rooftop infinity pool on the 22nd level, grants residents breathtaking views of Brisbane’s CBD. Additionally, residents enjoy access to a private lounge, a state-of-the-art gym, and multilevel BBQ and dining facilities.

The management team at Southpoint sought to enhance this luxury experience by partnering with Greenplate. Their mission: upgrading the BBQ facilities from gas powered units

to energy-efficient Greenplate BBQs. The transformation included custom bench skirts that seamlessly fit the space vacated by the previous BBQs.

A notable addition was the Above Bench Housing, combining aesthetics and functionality by eliminating the need for extensive cabinet

door replacements. The BBQ’s switch and instruction label were thoughtfully positioned at the front, under the cooking plate. To further elevate the outdoor spaces, Southpoint opted for Hinged BBQ Covers. These not only protect the BBQs from the elements but also enhance the visual appeal of common areas.

The result? A BBQ facility that exceeds efficiency standards while adding sophistication to communal spaces. Residents can now relish outdoor dining with Brisbane’s CBD as a picturesque backdrop.

Greenplate’s energy-efficient BBQs and custom solutions have heightened the allure of Southpoint’s appeal. Their commitment to transforming outdoor spaces continues to contribute to the success of businesses like Southpoint. Experience the Greenplate difference. Elevate your communal cooking spaces today.

For more information contact: Greenplate call 07 3245 3008, email info@greenplate.com.au or visit www.greenplate.com.au

Record $5.2 billion expenditure in 2023

Queensland’s Sunshine Coast wrapped up the financial year on a high note, according to the latest data from Tourism Research Australia. The National Visitor Survey revealed some impressive numbers for the 12 months leading up to June 30, 2023.

During this period, the Sunshine Coast attracted domestic overnight visitors who spent a whopping $4.4 billion. This figure not only exceeded the same period in 2021/22, which was $3 billion but also surpassed the pre-COVID year of $2.7 billion. Additionally, day-trippers contributed $854 million, bringing the total visitor expenditure to a staggering $5.2 billion for the year.

What’s remarkable is that this record-breaking overnight expenditure was achieved with a total of 3.9 million visitors, mirroring visitor numbers from 2021/22. The expenditure figures can be attributed to a significant increase in the average spending of visitors on the Sunshine Coast, which rose to $1136 per overnight visitor, marking a 47.6 percent

year-on-year increase and a remarkable 67.5 percent surge compared to 2019.

Overnight visitors also upped their spending per night per visitor, averaging at $311, representing a 41.2 percent year-on-year increase and

an impressive 64.6 percent rise compared to 2019.

The most significant growth in visitation was observed among holiday visitors, with an annual increase to 2.3 million, a 5.1 percent jump from 2019. Business travel also staged

a comeback, growing by 9.6 percent to 244,000 visitors in 2022/23, although it remained 32 percent below 2019 levels.

Thanks to the return of interstate flights and the establishment of Bonza’s headquarters on the Sunshine

Images courtesy of Visit Sunshine Coast

Coast in the first half of 2023, there was a dramatic increase in interstate visitor numbers, reaching 1.1 million in 2022/23, a substantial 45.7 percent increase compared to the previous financial year.

Notably, NSW led the interstate rush, with 505,000 visitors, marking a 38.4 percent increase from the previous year. Victoria also saw rapid growth at an even faster rate of 47.2 percent, with 385,000 Victorians visiting the Sunshine Coast. Regarding international travel, data from Tourism Research Australia covers the first six months of 2023, showing a total of 146,000 overseas visitors, which was only three percent lower than the comparable period in 2019, indicating a strong recovery. The UK and New Zealand markets were almost back to 2019 levels, with the Visiting Friends and Relatives market showing the strongest growth, up by 42.6 percent compared to 2019.

Commenting on these impressive National Visitor Survey results, Visit Sunshine

Coast CEO, Matt Stoeckel, highlighted the resilience of Sunshine Coast tourism operators in a challenging year. He emphasised that despite the difficulties, there was continued growth in holidays to the Sunshine Coast, reflecting the success of their marketing campaigns in generating interest and demand for the region. While domestic travel remained positive, the full recovery of overseas holiday visitors was still in progress, with promising signs of return from the UK, Europe, and Asia.

Brisbane also made notable strides in the financial year ending June 30, with over 20 million passengers travelling through Brisbane Airport (both domestic and international). This impressive figure, although slightly lower than the 23.7 million passengers in 2019, indicates a strong recovery. In June, domestic passenger traffic reached 98 percent of pre-COVID capacity (June 2019), while international traffic recovered to 77 percent. Brisbane is well-positioned to capitalise on growth in

leisure-oriented demand and maintain its corporate base. Cairns, on the other hand, achieved record levels of domestic visitation and leisureoriented demand in 2022 but experienced a slightly slower start to 2023. Cairns Airport recorded nearly 350,000 international passenger movements in the 12 months leading up to July 2023, thanks to increased direct access routes from Singapore, Japan, New Zealand, and Bali.

Australia’s popular tourism and leisure destination, the Gold Coast, has seen a strong post-COVID recovery, driven by robust domestic leisure demand. The Gold Coast region welcomed 4.2 million visitors for the year-ending March 2023, marking a substantial 29.3 percent increase compared to 2022 and aligning relatively well with Dec-2019 figures. Importantly, visitor expenditure continued to soar, reaching a record $5.6 billion, a remarkable 79.5 percent year-on-year increase (or 52.3 percent compared to 2019).

Women’s soccer delivered a tourism boost for Australia

In August, all eyes were on the FIFA Women’s World Cup with broadcast ratings proving women’s soccer can attract millions of viewers. It also attracted the attention of global travellers looking to visit Australia.

Expedia Group’s latest data showed international searches for travel to Australia more than doubled between May and July this year, with Sydney in highest demand. The city that hosted the most games had 60 percent of international searches. The most significant interest came from the United States, followed by the Asia-Pacific region.

Other Australian cities, Adelaide, Brisbane, Melbourne,

and Perth also garnered curiosity from travellers from Canada and Singapore.

Domestic interest also increased during the threemonth period, accounting

for 70 percent of total interest and showing a remarkable week-on-week increase of 155 percent.

On the heightened tourism market visibility created

by major sporting events, Michael Dykes, Vice President, Market Management (APAC), Expedia Group said that it “presents a unique opportunity for travel providers to maximise their revenue”.

Image courtesy of FIFA Brisbane

Are you in the niche?

Pricing jumps to mind, but with the industry rates that building managers have access to, you can now travel fi ve and six star, for litt le more than a cruise special in the Sunday newspaper.

Escape the crowds, embrace the intimacy:

By Stephen West, Interline Travel

Niche travel is the ultimate choice for cruising clients, offering unparalleled value through the consideration of smaller passenger numbers, inclusions that are often all-inclusive, more immersion in culture or activities, and exceptional levels of service.

As the world of travel continues to evolve, so do the expectations of the modern traveller. The 6000-passenger cruise ship disgorging in Santorini or the Whitsundays is not everyone’s cup of tea. It has its place for family travel where every conceivable facility is on board including go-karts, but what about a voyage that is a litt le more tranquil? Where the staff know your name or what coff ee you like with breakfast.

You work hard in management rights. In the realm of niche travel, the notion of batt ling crowds becomes a distant memory. Imagine cruising to destinations that aren’t overrun by tourists, where the allure of each port of call remains intact. Niche cruise experiences grant you access to hidden gems, cultural enclaves, and untouched landscapes that provide an authentic encounter with the world. Say goodbye to the rush and embrace a more serene and intimate journey. These ships operate every day of the year so booking one to fi t between your end of month or outside of school holidays is simple.

Tailored inclusions for enriching experiences:

Gone are the days of standardised cruise itineraries. Niche travel brings forth meticulously curated inclusions that align with your interests and passions.

From specialised workshops and expert-led lectures to exclusive shore excursions, every facet of the journey

is designed to cater to your preferences. These thoughtfully selected inclusions ensure that you’re not merely an observer, but an active participant in the destination’s narrative.

Examples are cruising the Dalmatian Coast or an intensive tour of the British Isles.

Intimate gatherings, lasting connections:

Picture yourself cruising with a small, like-minded group of fellow travellers who share your passions.

Niche travel off ers the opportunity to connect with individuals who understand and appreciate the same experiences that fuel your wanderlust.

These smaller gatherings foster a sense of camaraderie that transcends the confines of the cruise, resulting in friendships that endure long after you’ve returned home. The Kimberley Region and Alaska are very specific to this.

So, who falls into this niche?

Companies like Regent Seven Seas, Silverseas, Heritage Expeditions, and Azamara all off er something a litt le bit special – from fully inclusive – drinks, laundry, gratuities, specialty dining, and shore tours – they all have their price points and operate in Australia and across the globe.

Images courtesy of Interline Travel

NoVacancy

Hotel + Accommodation Industry Expo 2023

Smashes records & expectations

APAC’s premier hotel and accommodation industry expo

NoVacancy surpassed all expectations in 2023, with a record-breaking 5839 attendees flocking to explore the latest industry developments.

Boasting a 24 percent increase year-on-year from the core audience - hotels, accommodation, hospitality, real estate, and investmentNoVacancy Expo reinforced its position as the mustattend event for the hotel and accommodation sector.

From August 31 to September 1, industry leaders from across the Oceania region came together at the International Convention Centre Sydney to explore the industry’s latest innovations and gain insight into what lies ahead for 2024, and beyond.

Proud Event Manager, Matt Gatfield said: “To see this level of year-on-year growth and the depth of senior leaders, procurement teams and department heads further cements the position of NoVacancy at the heart of the hotel, accommodation, and hospitality sector and the strength of the industry overall.

“From the moment the doors opened on Thursday morning the expo floor was

This year Australia’s largest accommodation industry event saw:

• Core attendance growth of 24 percent;

• Highest ever interstate and international attendance, 24 percent from outside NSW;

• 70 percent of exhibitors rebooked on-site for the September 2024 event; and

• The successful launch of the Sustainability Zone, the Hotel Technology Zone, the Women in Accommodation Breakfast, and the Young Hotel Leaders’ Summit.

buzzing with energy as visitors discovered products, had deep conversations, and made new connections – this carried right through the entire duration of the event.

“It is such an honour to be part of this industry and the passion, commitment, and drive from business leaders and their teams has given us so many great ideas for next year.”

Save the date for NoVacancy Hotel + Accommodation Industry Expo 2024, from September 18 to September 19, 2024, at the Convention Centre Sydney.

ResortBrokers Lunch & Learn

The second Lunch & Learn event of 2023 saw another packed house listening to management rights experts discuss hot-button issues affecting operators on the Sunshine Coast.

Hosted by ResortBrokers’ local team, Glenn Millar and Chenoa Daniel, the September 12 event, held at The Dock Mooloolaba, attracted over 40 resident managers.

They were there to hear from the series’ regular panel of industry specialists, as well as special guest Lachlan Hoswell, Managing Director of Radisson Hotels Australasia.

Hoswell, a hotel industry veteran of 20 years who specialises in acquisitions, piqued management rights operators’ interest with his discussion about franchise opportunities within Radisson’s future growth plans.

The gathering then heard from the series’ regular panelists, Paul Grant (Mike Phipps Finance), Trent Pevy (Pevy Lawyers), Tony Rossiter (Holmans), and Jordan Hayes (JLL), whose firms co-sponsored the event with ResortBrokers.

Trent Pevy spoke about transaction timeframes, assignment expectations, body corporate lawyers and their impact on body corporate committee thinking, as well as top-up success rates and being proactive as an operator.

Jordan Hayes covered value methodology of managers’ units, particularly at the premium end of the market, the impact of not achieving top-ups on the value of the business, and the state of multipliers in the current market.

Paul Grant advised on general lender appetites and the length of finance applications, while Tony Rossiter spoke about claw forwards and clawbacks, and ensuring schedules of charges are correct and up to date, He highlighted a recent court case where an operator was prosecuted for charging owners without authority. The forum then opened up to questions and general discussion, with contributions made by Brett Thompson from Landmark Resort & Spa at Mooloolaba and Ryan Rae from Noosa Blue Resort. They discussed the Sunshine Coast Council’s recent rate hikes on owners who have their units in short-term letting.

The next Lunch & Learn is scheduled for November 2023.

What about Women In?

The Gold Coast Women In Luncheon was a fabulous success, it was great to see both familiar faces and a lot of new ones on September 13, held in the stunning Air On Broadbeach.

This luncheon was hosted by OTTRO a new management rights academy that is soon

to off er its first training course - a four-day intensive course providing building blocks for someone wishing to enter management rights in a non-management role such as front office, reservations, housekeeping, and maintenance.

The last Women In Luncheon of the year will be held in Brisbane on Friday, November 10 at SOKO Rooftop in Fortitude Valley.

Redchip Lawyers acquires Hynes Legal in strategic expansion

Brisbane commercial law firm Redchip Lawyers has acquired Queensland’s leading strata law practice Hynes Legal in a strategic expansion of its service offering.

The acquisition will add strata, body corporate, and management rights expertise to Redchip’s existing practices in commercial law, property, litigation, and succession planning.

Hynes Legal will continue to trade under its current name and branding, operating as a wholly-owned subsidiary of Redchip Lawyers.

Frank Higginson will continue

in his role as Hynes’ longstanding strata lead.

Redchip director Robert Lalor said bringing the Hynes business under Redchip ownership is part of a mutually beneficial growth strategy that will bolster the firm’s offering to the market, introduce new services to existing clients, and combine expertise and resources.

“This is an exciting growth opportunity for Redchip, our people, and our clients. Introducing this new arm of the business in body corporate and strata management rights is an offer that makes sense for our existing commercial, property, and dispute resolution services,” Mr Lalor said.

Frank Higginson of Hynes Legal said the two firms had referred

work to each other for the past 10 years, and the acquisition was a logical extension of that close working relationship.

“Hynes and Redchip offer complementary services in the commercial and strata sectors. Hynes coming under the Redchip umbrella opens up growth opportunities for the combined businesses and greater service for our clients. It makes sound commercial sense to build on the longstanding referral relationship that exists between the firms,” Mr Higginson said.

The acquisition is underpinned by the firms’ close cultural alignment and their mission to put client service at the forefront.

The combined firms will have a staff of 50 people.

Frank Higginson

ARAMA Roadshows

Last month’s series of ARAMA Trades and Services Expos, held on The Gold Coast, Sunshine Coast, and in Brisbane were (once again) a great success.

Crowds gathered to talk to fabulous service providers and suppliers, as well as hear from key members of ARAMA’s advocacy team including, Trevor Rawnsley, Frank Higginson, John Mahoney, and Alex Cook.

Breakfast Forum:

Decoupling in management rights

Hosted by Mike O’Farrell the Breakfast Forum on Decoupling in Management Rights, held at Riverside Hotel Brisbane was at full capacity.

the current need to understand the phenomena of decoupling.

Mike O’Farrell

The overwhelming popularity of the forum was triggered by

After a lovely breakfast thanks to the attentive staff at Riverside Hotel, the panel of industry experts, including, Alex McCowan (Accom Valuers), Trevor Rawnsley (ARAMA), Tim Crooks (Resort Brokers), and John Mahoney

(Mahoney Lawyers) were able to shed light on the intricate landscape of decoupling. Everyone left the session with much more understanding of the concept, benefits, and potential pitfalls of decoupling along with advantages and disadvantages for the management rights sector.

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 5 pm to 10pm. Currently, corporate sponsorship tables are available, and individual ticket sales open. Please show your enthusiastic support for this event.

2023 ARAMA INDUSTRY EVENTS CALENDAR

For registration and/or event information please contact

Construction steams ahead with 20,000 new rooms coming online

Accommodation

Australia CEO Michael Johnson said that while the hospitality sector was locked down during COVID, construction continued unabated.

“We’ve had 206 hotels open across Australia in the last three years,” he said.

“In Sydney, the opening of the long-awaited W Hotel next month will be the 34th hotel to open since 2020. There have been 57 new hotel openings in NSW over that period, 15 in suburbs surrounding Sydney and nine in the regions. Great news for the sector and for the travelling public looking for choice.”

Mr Johnson said 71 new hotels had opened in Victoria since 2020 (51 of those in Melbourne), eight new hotels have opened in Tasmania, 36 in Queensland, 17 in South Australia, two in the Northern Territory and 10 in Western Australia.

“The extra rooms have come on just at the right time.

“Hotel operators across the country - but particularly in our gateway cities - are seeing occupancies re-building to pre-pandemic levels. We are confident we will now see the benefits of being back on the Approved Destination Status for China with more direct flights confirmed in preparation for the all-important group tour business returning.”

Holder East and Hyatt to introduce First Hyatt House hotel in Australia

Leading property developer Holder East has announced the arrival of the first Hyatt House Hotel in Melbourne, in partnership with Hyatt Hotels Corporation.

Expected to open in 2025, Hyatt House South Melbourne is a 97-room hotel within Holder East’s Oasis Residences, a luxurious and elegant urban sanctuary designed by the renowned Hayball architects, currently under construction. Oasis Residences is expected to reach completion in August 2024.

Accommodation Australia

CEO Michael Johnson

Impressionist renders of the Hyatt House South Melbourne

Stage One of Kirra Point Precinct to open in November

KTQ Group has unveiled plans for the first stage of its spectacular and highly anticipated Kirra Point Precinct.

Stage one includes the already sold-out Miles residential tower, 116 apartments boasting an unrivalled north-facing oceanfront perspective and two distinct yet complementary hospitality venues: Kirra Beach Hotel and Kirra Beach House.

Stage two includes a second residential apartment tower, a boutique hotel, and a laneway retail precinct.

Located directly opposite the beach the two new hospitality venues, Kirra Beach Hotel and Kirra Beach House will both open this November.

Following on, early next year will see the launch of Kirra Point Stays, a collection of the ‘Miles’ apartments that will bring a new level of elevated hotel apartment accommodation to the Southern Gold Coast, available

for discerning holidaymakers to book and experience what it’s like to live like a Kirra local.

Part of the long-term play for stage two is a second residential apartment tower, a boutique hotel and a carefully curated laneway retail precinct which will include a lively village square, selected boutique retailers and artisans, a fresh food marketplace, a delicatessen, a florist, bakery, gelateria, more food and beverage offerings, and a dedicated fitness, wellness and recovery facility.

KTQ Group is an award-winning family-owned and run business led by owner and visionary, Peggy Flannery, who has spent 11 years carefully bringing the vision for Kirra Point to life, working in partnership with architect Mark Damant from Little Boat Projects. The precinct has been designed to preserve the integrity of Kirra’s coastal lifestyle and the richness of its deeply rooted local character, whilst creating an aspirational destination where the local community and visitors alike can experience and bask in the magic of Kirra.

Mulpha Australia receives green light for redevelopment

New hotel project to

transform a historic warehouse into a vibrant destination

in Sydney’s CBD

Property and hospitality group Mulpha Australia has received development approval from City of Sydney Council to redevelop 355-357 Sussex Street, Sydney into a 17-storey lifestyle hotel, comprising 272 hotel rooms together with ground floor restaurant and bar facilities.

The new hotel development will add to Mulpha’s existing Australian hospitality and tourism portfolio which includes InterContinental Sydney, InterContinental Sanctuary Cove Resort,

Meriton Suites invests over $400 million in expansion

Iconic Australian hotel group Meriton Suites is expanding, adding another two states to their growing list of locations later this year. The company has invested over $400 million in developing three new hotels, extending their luxury offering into Canberra and Melbourne.

InterContinental Hayman Island, Bimbadgen Winery Estate and the upcoming Palmers Lane Retreat in the Hunter Valley, which is due to open in October 2023.

Construction on 355-357 Sussex Street is expected to commence in the first half of 2024 with completion expected in mid-2026.

Located in the heart of the Melbourne and Canberra CBDs, both new Meriton Suites hotels offer guests fine modern, spacious and comfortable stays, with some of the city’s most iconic landmarks and attractions right on their doorstep. The last location of the three to launch and another big milestone for the group is Liverpool, NSW.

“We’re delighted to be opening three new Meriton Suites hotels across the

nation, another big step for the company,” Founder & Managing Director Meriton Group Harry Triguboff said.

“Our investment into these new markets is a clear demonstration of our confidence in the continued growth of the domestic and international inbound markets, and the ongoing demand for luxury apartment-style hotels for the modern traveller.”

Kirra Point - Greg Hodges, Dave Galvin, Peggy Flannery and Jeremy Holmes. Photo: Paul A. Broben - brobes.com

355-357 Sussex Street

Meriton Suites hotel Liverpool, NSW

The Rise Noosa

Sales Report

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

MANAGEMENT RIGHTS

ResortBrokers agents Chenoa Daniel and Glenn Millar had the exclusive privilege of overseeing the sale of the remarkable Noosa management rights, The Rise Noosa.

Situated just a brief walk from Hastings St, this exceptional property boasts some of the most opulent accommodations in the region. ResortBrokers extends a hearty congratulations to both our clients and the new proprietors of The Rise Noosa.

Gold Coast

Le Que Quarter Orange Blue Property P/L Surfers Paradise TMR

Delta Hope Island Jing Group (Aust) P/L Hope Island TMR

Brisbane

Evoque & Magnolia Garry Huang Indooroopilly RB

Vara Sean Qu Taringa RB

No ingham Residences Qi Lu Parkinson RB

Sunshine Coast / Wide Bay / Fraser Coast

The Duporth Riverside David Ryan Maroochydore RB

The Rise Apartments Winston Hall Noosa Heads RB

Oceans Mooloolaba Ben Orton Mooloolaba RB

Centrepoint Apartments Barber Investment Management P/L Caloundra MRS

MOTELS & OTHER

Queensland Blackall Motel Jack Qin Blackall RB

Tropical Beach Cravan Park Colin Crossley Bowen RB

Dirranbandi Motor Inn Joel Taunton Dirranbandi RB

Cardwell Beachfront Motel Kelly & Christian Weightman Cardwell RB

Emeraldene Inn & Eco-Lodge John Carre Hervey Bay RB

Hotel Corones Jack Qin Charleville RB

Townsville City Motel Yao Fang Townsville RB

The Park Motel Stephen Shoobridge Charters Towers RB

Goomeri Motel Jia & Li P/L Goomeri TB

Motel 98 Afline Oceanic P/L Rockhampton TB

Ingham Tourist Park S&S Fitzgerald Ingham TB

New South Wales

Colonial Motor Inn Javed Vhors West Wyalong RB

Inverell Caravan Park Liam Teh & Hayley Grummit Inverell RB

Hotel Gracelands Quentin Hugh & Kylie Anne Birt Parkes RB

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.

Se lement Motor Inn D. Heffernan & V. Rose Deniliquin TB

Avaleen Lodge Motor Inn Jay Mataji Pty Ltd Bomaderry TB

Armidale Pines Motel Aspen Hospitality P/L Armidale TB

Narrandera Club Motor Inn Navv Property P/L Narrandera TB

Victoria

Quest Wodonga Jason Travers Wodonga RB

Quays Motel M&W Morris San Remo TB

South Australia

Mirambeena Motel Daz Zheng Whyalla RB

Presidential Accommodation & Suites Om Prakash Vududala Mount Gambier RB

PO Box 391 WEST BURLEIGH QLD 4219

Phone: (07) 5534 4333 | Fax: (07) 5534 2081

reception@jonathangrant.com.au | www.jonathangrant.com.au

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

Bruce Bairstow, Chenoa Daniel and Winston Hall

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

ResortBrokers sets record sale

ResortBrokers has set a new record for a management rights business on the Sunshine Coast with the sale of luxury resort Oceans Mooloolaba Beach for $11.2 million.

The sale smashes the previous Sunshine Coast management rights record of $8.06 million set in February 2022 for the 21-apartment On the Beach in Noosa’s Hastings Street.

ResortBrokers’ Sunshine Coast team, Glenn Millar and Chenoa Daniel, settled the sale earlier this week. The off-market deal sees the management rights change hands from vendors Vince and Sue Galle to Prestige Residential, led by Ben Orton, which also operates the management rights to On the Beach and Tingirana in Noosa Heads as well as several complexes in

Brisbane and the Gold Coast. The Galles have operated the management rights since 2009. Situated on Mooloolaba Esplanade right across from Mooloolaba Beach, the 46-apartment 10-storey luxury mid-rise is the only AAArated 5-star resort in Mooloolaba.

The resort’s excellence has been recognised with a swag of awards, including a 2023 Tripadvisor

Best of the Best Award, a 2022 Tripadvisor Travellers’ Choice Award, a 2020 Tripadvisor Best of the Best Award, a 2018 World Luxury Hotel Award, a 2016 Tripadvisor Travellers’ Choice Award, a 2016 Tripadvisor Certificate of Excellence and a 2015 Tripadvisor Hall of Fame Award. The complex, which opened in 2005, currently enjoys a “Superb” 9.2 rating on

All roads lead to Roma motel

“Almost all the rooms have been fully renovated recently. There’s only half a dozen that are still the old style but they are also easy to rent because there is still a market for budget accommodation.

“It’s an easy motel to operate, and there is minimal food service required because there are arrangements with local eateries who deliver to the motel.”

Booking.com and a “Excellent” 4.5 rating on TripAdvisor.

“Fourteen years ago, the Galles took a good business and turned it into a great business,” says Millar. “This is an impeccable asset, which is reflected in the record amount it sold for.”

Millar joined ResortBrokers in 2005 and is the nationwide agency’s longest-serving broker with more than 40 years’ experience in the hotel and resort sector. With ResortBrokers, Millar has sold over 200 management rights businesses with a combined value exceeding $350 million, equating to a sale settling every 25 days on average. Daniel joined ResortBrokers in 2016, first covering North Queensland, and has been based on the Sunshine Coast with Millar for the last three years. With ResortBrokers, Daniel has sold over 60 management rights businesses with a combined worth of over $120 million.

By Grantlee Kieza, Industry Reporter

The major regional hub of Roma is the place where country Queensland meets the Outback, but it still has a lot of big city sophistication. There are lattes galore, lovely cafes and restaurants, and regular air services to Brisbane. With a diverse income and important transport routes at its heart, Roma also has huge opportunities in the accommodation sector as one of the most profitable motel towns in Australia.

Motel Carnarvon on Roma’s Northern Road is one of the biggest motels in town, with 38 rooms including 29 4-star apartments, some with two bedrooms and all selfcontained. There are also nine 3-star motel rooms.

Charlie Eames, from Premier Business Sales, is marketing the Motel Carnarvon as a freehold going concern, with a price tag of $7.7 million.

“It is a tremendous property and very profitable with high year-round occupancy,” Mr Eames said. “It’s predominantly a corporate motel and is recording 74 percent occupancy with better than 50 percent repeat trade. That make it a great business.

Mr Eames said a diverse economy made Roma “one of the best motel towns in the country”.

“Roma has a mix of agriculture, resources and government services,” he said. “For most of the motels in Roma, 20 per cent of their business would be government services. Because it is a regional hub for the south west of Queensland, the State Government sends a lot of their people out there from Community Services, Emergency Services, Queensland Rail and other departments.

“There is also a big leisure and tourism market. Roma is on the way to the spectacular Carnarvon Gorge and there’s plenty to do in Roma itself.

The council has spent millions of dollars recently upgrading the Big Rig that celebrates the oil and gas industries.

“Roma also has the biggest cattle saleyards in the southern hemisphere which is a tourist attraction itself. You could easily spend two or three days in Roma just checking out the local attractions, but it is also a stopover for people heading out further to Carnarvon Gorge, Charleville, Longreach and Winton.”

Roma is five and a bit hours from Brisbane by road but there are regular services on Rex Airlines for those who prefer to fly.

“It’s a terrific regional hub,” Mr Eames said, “and for the motel trade, if one industry is down there, the others are going okay so it doesn’t have that boom/ bust cycle that some towns experience. Motel Carnarvon has a really good steady income, and Roma is a very active, engaged community.”

For more information contact Charlie Eames from Premier Business Sales on 0416 292 659

Oceans Mooloolaba Beach

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Albatross North Apartments

after long road to Albatross

By Grantlee Kieza, Industry Reporter

Michael Wigglesworth travelled many roads before finding paradise at Mermaid Beach on the Gold Coast.

As a young man, he was a nursing student, then became a high school teacher, teaching Indigenous children at one of the most remote schools in Australia.

He spent fi ve years as a teacher in South Australia and some of that time at one of the most remote schools in the Anangu Pitjantjatjara Yankunytjatjara Lands, one of ten Anangu schools situated in the far northwest corner of South Australia. He has helped to set up manufacturing plants in Melbourne and Adelaide and worked as a gardener and landscaper. He was also a diving instructor, having dived amid the exotic islands of North Queensland and Indonesia. He entered the management rights business last year, taking over the fabulous Albatross North Apartments at Mermaid Beach in September 2022, and has been working overtime since to make this renowned accommodation jewel really shine once again. His only previous experience in the accommodation field was running a hotel in South Australia for approximately six months and he says that was “more to do with sales than the building management side of things”. Since taking over Albatross North, he has undertaken a raft of major projects including repairs to the elevator, and

pool heater, an overhaul of the barbeque, repairs to worn and sunken pavers, and the replacement of damaged exhaust fans and locks, along with a lighting replacement program.

“The building is approximately 38 years old and because of its age needed some repairs and TLC when I moved here with my partner Amy Devine,” Michael said.

“It’s such a beautiful location but the property needed work. Thankfully the chairperson of the committee cottoned on to what I was trying to do and realised that although it was a lengthy ‘to-do-list’, it was for the benefi t and health and safety of everyone at Albatross North.”

Michael expressed gratitude for the assistance he’s received along the way, acknowledging individuals like Kelley Rigby from Lett s Rebuild, Dennis McKenzie from Property Training Australia, Danny Litt le from Management Rights Advice and Service Consultants, and the team from Pevy Lawyers. He also extended appreciation to Erika Gibbs and the team at Erika Thomas & Associates.

“They’ve all been very helpful, and I relied on them a lot,” Michael said.

“Kelley has been so supportive in all my dealings with many of the owners.

“All our Form 6s in the building (dealing with appointment or reappointment of a property agent) had to be re-signed (some were many years old) and Kelley was a huge help with some of the more challenging ones.

“She is a real goldmine of information when it comes to management rights.”

Amy Devine and Michael Wigglesworth

At Letts Group, our mission is to support and empower our onsite manager community in safeguarding, preserving, and expanding their letting pool.

We derive great satisfaction from witnessing the prosperity and growth of those we work with “In the realm of business, I hold a deep appreciation for the belief that empathy, kindness, and understanding are essential ingredients for achieving success. These fundamental values are the cornerstone of our interactions within our community."

Kelley Rigby, Founder and Director, Letts Group

Michael started his working life doing a nursing degree but soon switched to education.

“I worked as a teacher for five years in South Australia and taught Indigenous people in central Australia near the border of South Australia and the Northern Territory,” he said.

The Indulkana community is about 440km south

west of Alice Springs and 1400km by road from Adelaide, including 200km on unsealed red dirt roads.

Michael left teaching and along with his parents built up a manufacturing business in Adelaide, building it into a collective business as National Sales Manager, increasing turnover ten-fold.

Then he moved to Melbourne to set up quite a large operation within the manufacturing of caravan components. He spent around 25 years in the manufacturing industry before changing pathways to gardening and landscaping for a time.

Michael and Amy moved to Albatross North to join Michael’s parents, who have lived and enjoyed the complex for some 11 years.

“I really came to the Gold Coast to be with and help my parents,” Michael said, “and I’m very grateful to Amy because she had to leave her work in Adelaide. She is now running that business remotely from Queensland as well as helping me at Albatross North. Without her, I would have torn my hair out!”

Michael’s decision to acquire the management rights was motivated by the desire to spend time with his parents while being readily available to assist them within the same building. His background in manufacturing equipped him with valuable skills for running a building, despite not being an expert in building management. His knowledge of processes and compliance gave him a significant advantage, with a focus on continuous business improvement.

“I had knowledge of processes and compliances which was a big head start, with an ability in continuous business improvements,” Michael explained.

“Management rights is an industry that requires a broad

spectrum of knowledge on subjects such as business administration, business management, compliance, financial management and public relations, gardening and landscaping.

“I think you have to be a very good all-rounder with a lot of skills to take on this project.

“We only look after 21 apartments here and I wonder how someone can look after complexes that have 200 or 400. I take my hat off to them.”

Michael admits there are many positives to working in management rights, especially at a complex such as Albatross North, which is beachfront to one of the most spectacular surf beaches in the world.

“It’s so beautiful to be in Queensland,” he said. “It’s great weather and this building offers fabulous views, including whale watching.

“It’s a wonderful complex where all the guests are very positive, and we’ve had many recent great comments about how lovely and clean the apartments are. Guests also think it’s fantastic to be able to look straight out onto the beach.

“That makes me very glad because we have really put the work in.

“I have guests who have been repeat guests for 20 years saying that I’ve really looked after and brightened up the complex and the gardens. It’s terrific to get such positive feedback and recognition for all the effort we’ve put in over the last 12 months.”

Michael acknowledged that there is still a lot of scope for continuous garden improvement, and he is awaiting the freedom to enjoy these gardens over time.

He said his first year in management rights has been very rewarding but also a steep learning curve.

In hindsight, he wishes he’d met Kelley Rigby at the very start of his tenure as “it would have made the job easier”.

“Kelley has been terrific and so has Dennis McKenzie and Danny Little,” he said. However, the transition into the job of the onsite manager could be improved he suggests, if the industry considered adopting some of the processes used in other professions.

He explained: “I’ve explored fields like nursing and scuba diving, where you have practicums - a practical section in the training. I think it would be useful if you had work experience in practical situations common to management rights. For managers new to the industry, it would be valuable to work in it for a period to gain working knowledge and work experience before taking over a building.”

Michael reflected on his hectic year as onsite manager and said: “I’ve had a lot of building matters that needed work to bring the building up to date and satisfactorily comply with requirements and legislations. In addition to all the work onsite, I recently completed my full Real Estate Licence, thanks to Dennis McKenzie at Property Training Australia.

“All this, while having a movie scene filmed at Albatross North!

“But now, at long last, we’re getting to a point where we can stop and smell the roses, sit back, and enjoy the magnificent views and peaceful relaxed atmosphere that this fantastic property truly offers.”