Resort News - February 2024 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 330 | February 2024 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Person of Interest

Peter Hook: Maximising the hotel experience is the real ‘hook’

Profile

John and Jo win big with golf course drive

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The legal stuff...

February 2024 - Issue 330

The views and images expressed in Resort News do not necessarily reflect the views of the publisher. The information contained in Resort News is intended to act as a guide only, the publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. We recommend professional advice is sought before making important business decisions.

Advertising Conditions

06 Special Report

14 Person Of Interest

Open air and transparency to solve rubbish conﬂict

The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement. The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material.

Disclaimer Front Desk 05

Editor’s Note: Rubbish, insights & more...

Industry

Tourism Report

Niche Travel

Special Report: How are accommodation operators after Tropical Cyclone Jasper?

Events

ARAMA Report

State Report

Developments

BCCM Report

Person of Interest: Peter Hook

Legal Ease

By All Accounts

Motel Market

Open air and transparency to solve rubbish conflict

Events

Five of the freshest farm stays on the Sunshine Coast for the perfect ‘haycation’

Management 16

Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein.

Tourism

Property 34

New Manager Profile: Clubb Coolum, QLD

AccomProperties Sales Report

Proﬁle 38

Gympie Pines Fairway Villas: John and Jo win big with golf course drive

Thinking MR

Building Relationships

Preferred Supplier Directory

Good Governance

The Preferred Supplier Directory

Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law. Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties.

KEY

30 Niche Travel

31 Events

32 Developments

EDITOR

SUBSCRIPTIONS

CONTRIBUTING THIS ISSUE...

Mandy Clarke editor@resortnews.com.au

Gavin Bill

subs@resortnews.com.au

ADVERTISING

INDUSTRY REPORTERS

Grantlee Kieza & Sarah Davison

Stewart Shimmin advertising@resortnews.com.au

Andrew Morgan, Ben Ashworth, Commissioner BCCM, Kelley Rigby, Lel Parnis, Lynda Kypriadakis, Matthew Manz, Mike Phipps, Stephen West & Trevor Rawnsley

PRODUCTION Richard McGill

February 2024

Commercially funded supplier profile 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!

EDITOR’S NOTE

Rubbish, insights & more... Welcome to the February edition of Resort News. ‘Himself’ and I spent the last few weeks on the road in New Zealand, combining travel with work. We toured the South Island’s stunning southern region, including the Catlins, Invercargill, and Stewart Island, which is a true natural marvel. A highlight was having a very close encounter with a Kea, a unique and endangered parrot species considered to be one of the most intelligent birds in the world, and this one was very taken with Patrick’s beard! Throughout our journey, we made a conscious effort to stay in small accommodations, supporting local businesses, and enjoying the hospitality of lovely cafes and restaurants along the way. Overall, the Kiwi welcome and service was exceptional, with one unfortunate experience. We booked a once-beautiful

We promptly checked out. The experience served as a stark reminder of the importance of putting the guest experience first. Those who acquire accommodation businesses without the right motives, those who lack hospitality experience or are not ‘people persons’ are destined to fall short. Mandy Clarke, Editor editor@accomnews.com.au

nature resort under relatively new ownership. Sadly, these owners have not only severely neglected the property’s maintenance but also lack a fundamental understanding of hospitality. To our disbelief, upon arrival for 3 pm check-in, we were awkwardly forced to wait while the manager and his team/family begrudgingly paused their game of pool. The situation nosedived even more when we discovered there was no running water (let alone hot water) in our room.

Back to this edition of Resort News, we provide an update on disaster recovery efforts following Tropical Cyclone Jasper. As always, it’s the onsite managers who are on the frontline, going above and beyond to ensure the safety of residents and guests, safeguarding properties, and cleaning up the aftermath. We hope our timely disaster management special report in the December edition helped you prepare. As Trevor Rawnsley aptly pointed out: “Proactive resident managers should be ready for any emergency, particularly during

the stormy summer months in northern Australia.” This month, we also delve into rubbish! By that, I mean the world of waste management, a critical issue that often leads to conflicts within the management rights industry and affects anyone living in strata. Additionally, we interview Peter Hook, a prominent figure in Australian communications and public relations, who boasts a storied career spanning journalism, government, public affairs, and, most notably, tourism and hospitality. Finally, a trip to Gympie for a chat with John and Jo Bolger, the managers of Gympie Pines Fairway Villas, 54 luxury properties nestled amid the Gympie Golf Course. Enjoy this edition, and I hope the weather has dramatically improved by the time you read it. Warmest regards, Mandy.

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FRONT DESK

February 2024

SPECIAL REPORT

How are accommodation operators after Tropical Cyclone Jasper?

Image: NASA Earth Observatory by Michala Garrison, using MODIS data from NASA EOSDIS LANCE and GIBSWorldview.

By Sarah Davison, Industry Reporter

Tropical Cyclone Jasper has wrought havoc across Far North Queensland, and for accommodation and tourism operators in the region, this natural disaster couldn’t have come at a worse time, as they were still recovering from the impacts of the pandemic. Accommodation Australia CEO, Michael Johnson, noted the extensive damage, saying, “On top of the damage to homes and infrastructure, the cancellations throughout Far North in December were extensive. Occupancy rates plummeted from mid-70 percent to 30 percent, resulting in the loss of millions of dollars in revenue during what is traditionally a

February 2024

bustling period of the year.” He emphasised the challenges, stating, “Far North Queensland suffered greatly during the pandemic, and the recent destructive weather was another blow at the worst possible time.”

concerns that cancellations might persist through January and February, especially with another cyclone brewing in the Gulf of Carpentaria.

Bryce Tozer, the manager of Cayman Villas in Port Douglas, shared the impact on his business, explaining that “three 3-bedroom villas suffered significant structural damage, including collapsed ceilings and floor tiles with significant water damage.”

The recent weeks have also been tough for caravan park owners and operators across North Queensland. Michelle Weston, CEO of the Caravan Parks Association of Queensland (CPAQ), highlighted their efforts in cleaning up after the cyclone to avoid cancelling bookings. She acknowledged the high levels of cancellations, with visitors assuming more damage than actually occurred.

Before the cyclone hit, Cayman Villas had an 80 percent occupancy rate for December, which quickly plummeted to 15 percent as tourists cancelled their holidays. The challenges continue with ongoing water restrictions and road closures in Port Douglas. Mr Tozer expressed

Ms Weston also stressed the importance of government support, saying, “It is fantastic to see strong government support with subsidised flights. However, Tropical North Queensland traditionally has a robust drive market, and it is crucial to ensure there is no loss of this market, especially

INDUSTRY

during the peak winter months.” For industry businesses impacted by this weather event or any other recent weather events in Australia, support is available. Mr Johnson encouraged them to reach out to their industry body and regional tourism organisation, as they can assist in connecting them with funding and support services. Accor Pacific Chief Operating Officer, Adrian Williams, commended the resilience of Accor’s teams despite the disruptions caused by Cyclone Jasper. He stated, “We’re heartened to report that all our properties have rapidly resumed normal operations, and the outlook for future bookings is promising.” He expressed gratitude to the Australian and Queensland Governments for their financial assistance in supporting the region’s tourism recovery.

Mr Johnson also applauded the $5 million Federal and Queensland State Government package, saying, “It is great news for the area, and we thank them for it. All tourism operators are back operating daily on the reef, and with discounted airfares and accommodation, there is no better time to go and experience this stunning location and what it has to offer.”

apply for grants of up to $75,000. These grants can be used to hire or purchase equipment and materials, clean up, remove debris, replace or repair damaged infrastructure and stock, and cover other costs associated with the recovery process. This will support directly impacted businesses damaged by floodwater or trees, reducing their financial hardship and expediting the recovery process.

Tamara Scenna, owner and operator of Daintree Siesta, located 30 minutes north of the Daintree River car ferry, highlighted the continued struggles of tourism operators north of the Daintree River, stating that they are still not operating at full capacity and foreseeing ongoing challenges. She expressed concern about the lasting impact of Tropical Cyclone Jasper and subsequent rain events on the region. The cyclone also significantly impacted ARAMA members across Far North Queensland. Trevor Rawnsley, the CEO of the Australian Resident Accommodation Managers Association (ARAMA), praised the resilience of members who are determined to “get on with the job.” He emphasised their commitment to helping their communities, even in difficult times. Mr Rawnsley noted that operators are currently grappling with reduced cash flow while managing additional tasks. He compared the situation to the challenges posed by COVID-19 and stressed the need for income support for employees.

However, he acknowledged that while Cairns is likely to recover quickly, areas to the north, particularly Port Douglas, have been affected by the closure of the Captain Cook Highway, posing greater challenges for tourism accommodations and businesses.

program, ARAMA A-MAP. He also urged the wider community to support local businesses in Far North Queensland by booking holidays in the region. He concluded, “As for community support, coming up to Far North Queensland and spending money is the best thing you can do right now. If you’ve got the kids on school holidays and you’re looking for something to do, consider booking a holiday to Cairns and Port Douglas. Yes, it’s raining, but it’ll be a bit of an adventure; you can have a great holiday and save a heap of money while supporting the economy in those regions.” Meanwhile, resident managers affected by Queensland’s Christmas storms are being urged to

avail themselves of a wide variety of support schemes. Mr Rawnsley said ARAMA members can exclusively access personal support via A-MAP – the ARAMA Member Assistance Program – free of charge. Both the Federal and State Governments have made available assistance in the wake of the flood and storm damage. Support from the Commonwealth-State Disaster Recovery Funding Arrangements (DRFA) has been expanded to offer Extraordinary Disaster Assistance Recovery grants of up to $50,000 to directly impacted small businesses and not-for-profit organisations in the Logan, Scenic Rim, and Gold Coast local government areas. Primary producers in these areas can

There is also a $24.25 million Tourism Recovery and Resilience Program to develop a grants program for Far North Queensland operators who have been cut off or heavily affected by the extreme weather. Grants will be made available to impacted operators to re-establish their business, continue employing their staff, and rebuild stronger with flood-resilient infrastructure such as solar panels and other mitigation infrastructure. The program will also fund a tourism and events marketing campaign to attract more visitors back to the region. There will also be a $20 million Clean-Up Program to assist in response to both ex-Tropical Cyclone Jasper and the South East Queensland storms. Those in need of disaster support can call the Queensland Community Recovery Hotline on 1800 173 349.

Regarding government support, Mr Rawnsley applauded the cheap flights into Cairns, which remove barriers for tourists. However, he emphasised the need for additional measures to support operators, including subsidising the Cairns-Port Douglas ferry while the Captain Cook Highway remains closed.

For more information or to apply for a grant, call the Queensland Rural and Industry Development Authority (QRIDA) on 1800 623 946 or visit www.qrida.qld.gov.au.

For ARAMA members, Mr Rawnsley encouraged those in need to seek support, particularly through their free mental health assistance

INDUSTRY

February 2024

ARAMA REPORT

“Carpark Cowboys” can’t ride with resident managers use this money to cover the cost of security to lessen the effects of the event within the building. Most outside agents who receive this fee will not pass it on, or will not include it as part of their bookings. The additional security costs for these guests are then paid for, by the body corporate or onsite letting agent.

By Trevor Rawnsley, CEO, ARAMA

However, time and time again, we see glaring examples of outside letting agents working completely against the interests of a body corporate and its residents. In one scheme, for instance, the onsite manager works with the committee and owners to market the building as family and corporate accommodation, while at the same time, an outside agent is advertising “dirty weekend” and “one night stand” accommodation packages. You can imagine the problems this can cause. It’s important to remind everyone in a managed complex just why resident managers are so important in creating and sustaining the $55 billion yearly economic benefit for Australia that comes from MLR businesses – and just why an onsite manager is always the best person to let out lots in a scheme. The best resident managers are those whose enthusiasm for running their complex translates into a vibrant and harmonious community around them – a community that is orderly, neighbourly, and striving to be the best it can be. Resident

February 2024

The Management and Letting Rights (MLR) industry provides bodies corporate and strata residents with benefits that no one else can match.

managers have skin in the game, a large financial investment, and operate the business onsite, meaning it is in their best interests to go above and beyond their contractual obligations for the sake of their own homes and those around them in their strata community. They deliver service around the clock in a way that outside agents and contractors simply cannot match. When it comes to a letting agent within a scheme, think about what a resident manager offers, compared to an agent working outside that scheme. Outside agents letting out lots have no obligation to the body corporate whatsoever, and damage caused as a result of their guests is very difficult to recover. From time to time, the body corporate or onsite manager will not know the identity of the outside agent’s guests, making it difficult to track those responsible for damage. The onsite manager has better control and records for the guests and can recover costs from deposits or credit cards.

With outside agents, even if the culprit responsible for damage is identified, there is usually little coordination or agreement, and only occasionally cooperation with the agent to assist in recovering funds. These repair costs are then funded through owners’ levies. Additionally, onsite managers and bodies corporate for large buildings will spend more funds to engage security to assist in monitoring the use of the property. It’s common sense that the resident manager, almost always a property owner within that scheme – with the vast majority living on-site as a part of the community – will be doing their best to make sure there is no trouble in a building and no damage to property. Problems with outside letting agents are especially pronounced during events such as the annual Schoolies festival. Many Schoolies bookings incur a security fee, which is collected by the letting agent. Most onsite letting agents will

INDUSTRY

Another glaring difference is that the onsite letting agent is bound by conditions of their letting agreement and a Code of Conduct under the BCCM Act and Regulations. Outside agents are not bound by these and have no obligation to cooperate with a body corporate. Again, this is uncompetitive and the costs to monitor and respond to the poor behaviour of guests are borne by the onsite manager and/or the body corporate. It’s a similar situation with the rise of ‘party houses’ and overcrowded accommodation, and it is interesting that the same concerns over the trouble they can cause have not extended to units considering their closer proximity to each other. An onsite manager is likely to be in breach of their agreement and code of conduct if they continually allow bookings of this nature to occur. There are no such concerns for an outside agent if they take a booking of 10 for a three-bedroom apartment. They also don’t have to respond to complaints in the early hours of the morning. A resident manager does. The issue of unfair competition is paramount. The onsite letting agent is expected to contribute income towards the duties of an associated caretaking agreement. Outside agents do not have these overheads and can unfairly undercut the onsite manager in a building. Many owner/occupiers become upset with holiday letting in their building, however, a good onsite manager can address these concerns through the management of their letting pool. These efforts can be eroded when outside agents do not take the same care.

Another area where the benefits of a resident manager are glaringly obvious is in dispute resolution. The BCCM Act includes provisions for resolving disputes such as by-law breaches. This is ineffective when outside agents are involved. Outside agents are not recognised as a party to a dispute within the legislation, and the Office of the Commissioner has conceded that even if the body corporate issues a contravention notice, conciliation will take at least four to six weeks, and by then

Furthermore, outside agents do not always provide guests with correct details about their stay. There have been instances of an outside agent’s guests becoming frustrated with the onsite letting agents and staff for their inability to assist them during their stay. Misunderstandings and the poor standards of an outside agent can result in bad reviews mentioning the names of a building and its operators on sites like Tripadvisor.com. This can impact the reputation of the onsite letting business and all other lot owners. In turn, this can affect bookings for the lot owners and the onsite manager. the tenants in a holiday let stay will have long vacated.

currently express frustration at slow police responses.

The BCCM Act also includes provisions for disputes to be resolved to facilitate and promote self-governance of a building. As the dispute resolution provisions are not relevant when outside agents are involved, owners and managers are often left with no alternative than to request police attendance. As police are called upon more often, there are greater demands on this stretched resource. Residents

Owners who personally let their property usually take care and pride in the property and are only occasionally an issue. There should be a prevention of access to rogue operators not willing to contribute or agree to the terms of building owners. Resident managers strive to create close, harmonious wellrun communities. Their hard work and diligence should not be undermined by unscrupulous cowboys operating from a

darkened place in the corner of the carpark, riding into their territory to make a quick buck and then riding off again when it becomes too hard for them. And that’s another reason why long-term agreements are good for the community. Long-term agreements equal long-term thinking. They keep the resident manager committed to the scheme over a longer term and help to keep the Carpark Cowboys out.

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INDUSTRY

February 2024

STATE REPORT

Should managers always have a right to put motions on the agenda?

By Ben Ashworth, Senior Associate, Small Myers Hughes Lawyers

As the management rights industry has evolved over the years, it has become increasingly common for managers not to own a lot in the scheme they manage.

this is not a great concern, when the manager has a good relationship with the committee or the issues in play are not contentious. It does however become a significant concern when the manager needs or wants something done and doesn’t have the luxury of time.

This has had a flow on effect which means that managers regularly do not hold a right to put a motion on the agenda of the Owners Corporation meetings. Most of the time

In most jurisdictions in Australia, the manager can only expect to have their motion (for instance, to top up their agreements) included on the agenda for a meeting if the motion is submitted to the Owners Corporation by a lot owner or the committee.

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February 2024

Managers who don’t own a lot will typically need to ask an owner in their letting pool to submit their motions on their behalf. This can be an awkward or difficult conversation for many managers, which is made more difficult if there is very limited time to submit the motion; or the motion relates to something complex and difficult to explain; or the motion relates to a contentious issue. Getting an owner who has no vested interest in the manager’s business, but has the time, capability and understanding to assist the manager, is rarely easy. So how could this be avoided? I see three possible solutions that could assist managers in this instance: 1.

The legislation is updated to grant the manager a right to submit motions for meetings, treating the manager just like an owner, regardless of whether the manager owns a lot in the scheme.

The by-laws for the scheme are amended to grant the

INDUSTRY

manager a right to submit motions like an owner. 3.

The caretaking and letting agreements are drafted with a clause granting the manager a right to submit motions like an owner.

Option 1 is by far the most ideal solution, as this would entrench a right for all managers no matter their circumstances. However, achieving this will take years and require extensive effort with the law-making process. Option 2 is potentially achievable on a schemeby-scheme basis. It will take significant owner support and is likely more achievable through implementation at the development stage of the scheme. Option 3 only requires a simple majority at a general meeting to achieve. This solution is not perfect though and may encounter resistance when seeking to enforce the rights against an aggressive Owners Corporation in some jurisdictions. What is consistent in all options is that implementing at the commencement of the scheme is far more likely to succeed. A greater awareness of this issue throughout the management rights industry may also help sow the seed needed to have this actively addressed at the legislation level. Until then, if you are a manager in a scheme and don’t own a lot, be very proactive in managing your relationships with the committee and owners. And if you plan to submit a motion in the future start educating an owner on the role you will need them to play well in advance.

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BCCM REPORT

Body corporate bank accounts owner contributions. But who is authorised to access a body corporate bank account and spend the funds? This article will address these questions and more.

Which regulation module applies? By the Office of the Commissioner for Body Corporate and Community Management

One of the general functions of a body corporate is to administer the common property and body corporate assets for the benefit of owners of lots in the scheme. This includes maintaining common property and, in some circumstances, taking out insurance policies. The funds to finance insurance or maintenance are from

February 2024

It depends on which regulation module your scheme falls under. In Queensland, there is an Act, but there are also five subordinate pieces of legislation (regulations). Only one of these regulations will apply to your body corporate. The Community Management Statement (CMS) for your scheme will indicate which regulation module applies. If you do not have a copy of your CMS, you can request a copy from Titles Queensland.

it is optional for the body corporate to have a bank account in its name. If a bank account is going to be opened, that decision should be made by lot owner agreement. At least one owner should be authorised to operate the account.

All other regulation modules The following information is relevant to schemes that fall under any of the following regulation modules: •

•

Two-Lot Scheme Regulation Module If your scheme is registered under the Body Corporate and Community Management (Specified Two-lot Schemes Module) Regulation 2011,

•

INDUSTRY

Body Corporate and Community Management (Standard Module) Regulation 2020 (“the Standard Module”). Body Corporate and Community Management (Accommodation Module) Regulation 2020 (“the Accommodation Module”). Body Corporate and Community Management (Commercial Module) Regulation 2020 (“the Commercial Module”).

•

Body Corporate and Community Management (Small Schemes Module) Regulation 2020 (“the Small Schemes Module”).

Does my body corporate need a bank account? All bodies corporate, except for those under the Two-Lot Scheme Regulation Module, must have at least one account with a financial institution such as a bank, building society or a credit union. The account can only be opened with the consent of the body corporate. This can be a committee decision.

Who controls the account? The account can be run by either: •

authorised members of the body corporate; or

•

a body corporate manager or an associate of the manager who is authorised by the body corporate to operate the account.

Who is an authorised member?

Who is authorised to access a body corporate bank account and spend the funds?

Authorised members are members of the committee that the body corporate has chosen to manage the account. There are usually two members of the committee authorised to manage an account, although community titles scheme registered under the Small Schemes or Two-Lot scheme modules require only one authorised member.

Can an authorised member approve spending? To approve any spending, the body corporate makes decisions by voting on motions. This can be done at a committee meeting, a vote outside of committee meeting, or general meeting. The type of resolution required to approve the spending will depend on the committee’s spending limit and other things like if the spending is on an improvement. Whilst an authorised member is usually the person who has the authority to allow funds to exit the body corporate’s bank accounts, they do not have sole decision-making power when it comes to spending in a body corporate. Before agreeing to access the bank account funds, the authorised member needs to ensure the body corporate agrees to the spending.

What if an authorised member is no longer on the committee, or the body corporate manager is terminated? If an authorised member has sold their lot, or alternatively is no longer on the committee, the body corporate should take immediate steps to pass relevant motions to appoint a new authorised member while having the outgoing member sign any relevant forms with the financial institution to pass over authorisation. A BCCM Form 2 can be issued to the financial institution to advise that the body corporate has changed body corporate managers. This should prevent the outgoing manager from accessing the accounts. The incoming body corporate manager may also open a new account and arrange the closure and transfer of funds with the outgoing manager.

What if the outgoing authorised member or body corporate manager does not do as requested? The bank account and its finances are a body corporate asset. The body corporate can request that its asset be returned by a previous body corporate member or body corporate manager. To request the asset be returned, the committee will need to: •

Pass a resolution requiring the person to return the property to a specific committee member or the body corporate manager (the committee should ensure this motion is very specific in naming the outgoing member or body corporate manager that is to return the asset, the asset or records that need to be returned, and the person and place it should be returned to); and

•

Serve the minutes of the motion to the outgoing member.

In Sunny-Lea [2016] QBCCMCmr 253, a lot owner, who was previously a committee member, was ordered to return all body corporate property, including access to the bank accounts, to the incoming body corporate manager. The body corporate had previously issued the lot owner with a prescribed notice directing the property to be given to the new body corporate manager, but the lot owner had failed to comply. In 23 Woodstock [2008] QBCCMCmr 140 a lot owner who was the authorised member over an account was ordered to facilitate the closing or dealing of the account (as decided by the body corporate).

Does the body corporate need separate accounts for the sinking and administration funds? No. One bank account is sufficient. Some bodies corporate, though, will have separate bank accounts for each fund and that is okay too. There are rules on how to manage the administrative and sinking funds. For example, funds cannot be transferred between the administrative and sinking funds (Standard Module, section 167). Be mindful, that if a body corporate only has one bank account, it needs to ensure that it can appropriately track the funds.

Can the body corporate put funds in a term deposit? Yes. Section 96(2)(b) of the Act and section 167(4) of the Standard Module state that a body corporate may invest funds - that are not immediately required, in the same way, a trustee may invest funds.

The outgoing authorised member or body corporate manager has 14 days to comply. It is an offence to not comply with the notice and fines may be imposed by a court. You can read more about the return of records and assets on our website.

Choosing the right strata manager can make or break your longterm peace of mind, and more importantly the asset value of your complex.

Case examples: In Pinetree Pocket [2004] QBCCMCmr 644 a body corporate manager was ordered to take steps and do all things necessary to ensure that the signatories to the body corporate bank accounts include two voting members of the body corporate committee where the body corporate manager was the sole authorisation on the account.

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INDUSTRY

February 2024

PERSON OF INTEREST

A conversation with Peter Hook:

Maximising the hotel experience is the real ‘hook’ By Grantlee Kieza, Industry Reporter

Then you transitioned into the hospitality sector?

Peter Hook, a prominent figure in Australian communications and public relations, with a deep-rooted career spanning various fields, including journalism, government, public affairs, tourism, and hospitality, shares his insights on the evolving hotel industry with Grantlee Kieza.

Indeed, in 1988, I joined the then-largest hotel group in Australia – Southern Pacific Hotels (SPHC). SPHC operated renowned hotel brands like Parkroyal, Centra, and Travelodge. I assumed the role of General Manager, Public Affairs. This period was particularly intriguing as the industry underwent significant changes. Despite facing challenges, the company received a boost from the work of Adrian Zecha, who had been constructing high-end hotels and resorts in Indonesia.

Peter began his career as an ABC journalist and producer in the late 1970s. In 2013, he founded Hook Communications, offering a comprehensive suite of PR services to entities in the accommodation and tourism sectors. His impressive portfolio includes collaborations with esteemed clients such as Visit Sunshine Coast, Kakadu Tourism, Schwartz Family Company Hotels, and JLL. You started your career in broadcast journalism? Yes, I began working for the ABC and later with the Macquarie Radio Network. I started in journalism working for ABC Current Affairs (AM, PM, etc) in 1978, and then became a producer at Radio 2BL (ABC Sydney) until 1983. I worked with some great broadcasters including Mike Jeffreys, Holger Brockman, and Jeff McMullen, who went on to have a long TV career with the show 60 Minutes. Back in those days, 2BL operated out of a creaky old building in a run-down part of Kings Cross, a stark contrast to the smart Ultimo building near Darling Harbour that the ABC occupies today. Nevertheless, it was a period of great fun and enlightenment.

February 2024

In 1995, I was recruited by Accor, a rising star in the hotel industry, to serve as their General Manager of Communications for the Asia Pacific network. I dedicated 18 years to the group before embarking on my own venture, Hook Communications, in 2013.

Peter Hook

Then you made the move to Canberra, working for the Federal Government? I worked for various government ministries, including Communications and Industry, Science and Technology. I was responsible for writing speeches for prominent figures like Michael Duffy, John Button, and Barry Jones, the TV quiz champion who later became a leading intellectual in Australian politics. They were all exceptional Labor ministers, driven by a genuine belief in improving the country. Barry was notably approachable and a true genius. Michael Duffy instigated significant changes, while John Button excelled at securing funding for his projects. It was a wonderful era, quite distinct from today’s name-calling politics.

Interestingly, despite their roots in the Labor Party, they implemented policies such as international competition, reduced tariffs, and the floating of the dollar, which deviated from traditional Labor politics. In particular, Bob Hawke and Paul Keating, recognised these measures as the path forward for the country. It was a remarkable time to work in Canberra!

Your introduction to the industry coincided with a period of transformation in the Australian accommodation industry, didn’t it? Absolutely. The 1980s and 1990s revolutionised the industry, shaping it into a unique and distinctly local sector. Our geographical distance from Europe and America allowed us to adapt and evolve more effectively than many other countries.

When did you first venture into the tourism industry?

Why didn’t Australia foresee the crisis resulting from the unrestricted growth of residential short-term accommodation?

It began in 1985 when I was recruited by Qantas as their General Manager of Public Affairs. One of the things I was responsible for was overseeing the publication of books on the history of the airline by John Gunn, including the 75th-anniversary edition.

I was a strong advocate for ‘appropriate’ short-term accommodation regulation when I worked for hotel industry bodies such as Tourism Accommodation Australia. The fact that so many destinations are now taking punitive action against residential

INDUSTRY

Nowadays, accommodation guests don’t want to be just a spectator at a hotel. They want to be involved.

Peter Hook MCing at Rugby World Cup soiree

short-term accommodation owners and operators suggests that authorities either couldn’t or didn’t want to see the consequences of ignoring the obvious. Now we find ourselves in a situation where everyone suffers as authorities attempt to rectify an issue that should never have arisen. What other changes in the accommodation industry have you seen? One of the greatest evolutions of hotels has been getting rid of these incredible cold marble lobbies, where guests actually annoyed staff because they got the marble dirty. Many hotels now have lobbies that are warm and inviting living spaces with comfortable furniture and artwork. CitizenM hotels brought the whole ‘lifestyle hotel’ to the world. They turned lobbies into living rooms, adding comfortable settees and even fireplaces. This made guests feel like they were home, changing the world of hotels for the better. I also love the move towards distinctive, authentic hotels that genuinely understand and share the local destination with their guests. But there is room for everything. People love disparaging 3-star type hotels and resorts, but they serve a purpose. Not everyone can afford a $700-a-night room, so we need to encourage excellence at all levels of the market, and that’s why the innovations in

the economy and mid-market sectors also need to be celebrated. While it is easy to publicise ‘palace’ type hotels, innovations in 3-star hotels and small resorts and motels are often more interesting. At Accor, I was responsible for Asia Pacific, and we had these Ibis hotels in Jakarta which were very different from Ibis hotels in Australia, the UK, and France. These Ibis hotels had good swimming pools, sometimes two restaurants and very distinctive interior designs. The owners had taken ‘inspiration’ from Philippe Starck, a great designer who did a lot of New York hotels. And so, you had this lovely art deco design in Ibis hotels. With a bit of ingenuity, you can turn what were once ‘cookie-cutter’ hotels into something very interesting and inviting. I hear you’re a big fan of bed toppers? It’s one of the greatest innovations in the industry. I never forget sleeping on my first Sofitel “My Bed” in the early to mid-2000s. It was such a game-changer that I had to buy one for my home, and wow, what a difference a topper can make. While ‘dream’ beds were once the exclusive realm of 5-star hotels, the trickle-down effect means that even 3-star rooms upped their game. And that speaks to what I said earlier. We can always talk about the facilities in 5-star hotels, but let’s also focus on 3-star type hotels and resorts and celebrate their changes.

What about current industry trends - is enough being done for the environment?

How have communication and PR skills in the industry evolved during your career?

Our industry needs to get its act together and be genuine with the environmental debate. Hotels are going to be forced to take ESG (Environmental, Social and Governance) seriously from July 1, because the Federal Government is stipulating that contracts with hotels will need to consider their ESG practices and performance. Hotels need to invest in infrastructure that delivers serious environmental benefits. Merely adding a beehive and herb garden on the roof doesn’t turn a hotel green.

Nowadays, accommodation guests don’t want to be just a spectator at a hotel. They want to be involved. Over recent years, we’ve observed a shift , where successful hotels go beyond superficial acknowledgment of their surroundings; they deeply engage with their destinations.

You’ve played a significant role in advancing Indigenous tourism, haven’t you? At Accor we launched the Accor Indigenous Program back in 2001. Simon McGrath, the former CEO, was a great promoter of that, lifting Indigenous people to general manager status. I was recently involved in the launch of the Novotel & Mercure Darwin Airport Resort, the first airport resort in Australia. The Airport Development Group (ADG) has established an Indigenous training academy there. I’m also involved in Kakadu tourism, and I see such positive results from it, giving Indigenous people meaningful, sustainable jobs. That’s how you close the gap in Australia and create long-term change. It’s been a highlight of my career, and I love seeing progress in that area. I have been very fortunate to work with companies that have taken Indigenous tourism development seriously – Accor, Kakadu Tourism, and most recently, the Darwin Airport Resort.

INDUSTRY

Hotels offer a plethora of stories, from basic to elaborate. However, at times, communicators, GMs, or owners choose to merely promote the obvious. During my tenure publicising the Tank Stream Hotel in Sydney, we crafted a self-guided walking tour that allowed guests to explore Sydney by tracing the path of the former Tank Stream, which served as Sydney’s inaugural freshwater supply upon the arrival of the First Fleet. Establishing such a connection gives the hotel a sense of place and historical attachment. Travellers are different today. They want a story. They want to experience more than the location of the hotel where they are staying. Finally, what’s the best advice you’ve received in the accommodation industry? Les Rowswell, who was a great accommodation stalwart for Travelodge and then SPHC, insisted that hotels should not be called “properties” – he said hotels are about people, not just real estate, and I’ve always remembered that. February 2024

LEGAL EASE

The clawback clause By Matthew Manz, Partner, Mahoneys

There was a time when contracts for the sale and purchase of established management rights businesses didn’t include a ‘clawback’ clause. It was something that was often used in ‘off the plan’ purchases but never for the purchase of an established business. It was accepted that over time letting pool numbers ﬂuctuated but that this was a business risk and was covered in the multiplier. With changing economic conditions, record multipliers and an increased number of owner occupiers, the market called for a tweak to the status quo. Now, most management rights contracts include a ‘clawback’ clause.

What is a ‘clawback’ clause?

businesses, particularly given that the loss of a small percentage of lots from the pool would only have a financial impact during periods of occupancy approaching 100 percent. In a complex where occupancy is low it may well be that the loss of a few units would have no impact on overall net profit. On the other hand, in a complex achieving returns in the 80 to 90 percent range, the loss of even one unit may mean a substantial reduction in income.

To use an example

Given these complexities, in short term sales, we either see:

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no clawback clause at all; or

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clawback clauses that use a combination of the common variations noted below.

Basic components of a clawback clause •

The parties agree on the value of each letting appointment. Typically, this is calculated by multiplying the average net profit for each letting appointment by the contract multiplier;

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the number of letting appointments in the seller’s letting pool at the contract date is identified and agreed upon; and

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if there are less than this number at settlement then the price is reduced by the value of each letting appointment lost.

At the contract date there are 25 letting appointments in the seller’s letting pool. Each letting appointment is valued at $35,000. Between the contract date and settlement one letting appointment has been lost so that there are 24. The purchase price would be reduced by $35,000. If there were 23 then the purchase price would be reduced by $70,000.

Common variations Clawforward: As part of negotiations the parties may from time to time negotiate a ‘clawforward’. In such an instance the price is increased for each additional letting appointment at settlement.

Using the above example, if one letting appointment were gained between the contract date and the settlement date so that there was a total of 26 letting appointments the price would be increased by $35,000. •

Using a buffer: Sometimes, particularly in short term buildings, the clawback, and/or clawforward, will only kick in if there are more than a certain number of letting appointments lost or gained from the letting pool.

Extrapolating on the above example, we add in a requirement that the clawback mechanism will only kick in if more than two letting appointments are lost before settlement.

Using the above figures, if at settlement there are 23 letting appointments then there is no change to the purchase price. If the final number is 22, then the price is reduced by $35,000. This above example can also be applied in the context of a clawforward. •

Cap: the clawback or clawforward will only apply up to a certain number.

Again, using the above example, a clawforward might only apply up to a maximum of two letting appointments. Therefore, if there were 27 or more letting appointments at settlement the purchase price would be increased by a maximum amount of $70,000. The above isn’t an exhaustive list and as mentioned previously sometimes a combination of the above is used. The idea here is to give readers a surface level appreciation of what is possible and that a form of clawback and/or clawforward can be adopted that best suit your contract.

Conclusion Given the evolution of the management rights industry, in my opinion at least, the clawback clause is here to stay. As the industry continues to seek a better balance of risk between buyer and seller it will be interesting to see the various permutations that develop over time.

Simply put it is a mechanism whereby the purchase price is reduced at settlement to take into account letting appointments that have been lost between the contract date and the settlement date.

Is it suitable for both permanent and holiday complexes? Its become common consensus that the most basic form of clawback clause is applicable to most permanent business sales. It becomes more complicated when applied to short term

February 2024

MANAGEMENT

BY ALL ACCOUNTS

Stage 3 tax cuts & unused concessional super contributions

By Lel Parnis, Principal, Holmans

Happy new year, it’s January 2024 - at time of writing (there seem to be more days in each January as the years go on) and I’m looking ahead to July already. Stage 3 tax cuts are set to commence on July 1 this year implementing changes to the personal income tax rates and thresholds providing tax relief for individuals reporting taxable income over $45,000 per annum. From July 1, 2024, the tax rate for taxable income between $45,000 and $120,000 will reduce from 32.5 percent

to 30 percent. For taxable income between $120,000 and $180,000 it will reduce from 37 percent to 30 percent.

fund and claim those as concessional, tax-deductible contributions to reduce your individual taxable income.

Those earning between $180,000 and $200,000 will see the largest reduction in tax with the tax rate falling from 45 percent to 30 percent.

You may be eligible to do this if you:

It’s a refreshing change to be looking forward to lower tax rates in a future period and one that provides opportunities for tax planning as it may be more tax effective to have lower taxable income in the current financial year and higher taxable income from the 2025 and/or later years. The current, 2024 financial year is the first year that individuals have been able to take full advantage of the ATO’s carried forward unused contribution caps for concessional superannuation contributions which came into effect from the 2018 to 2019 financial year. If you have unused concessional cap amounts from previous years, starting from 2018 to 2019, you may be eligible to make increased contributions to your superannuation

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have a total super balance of less than $500,000 at June 30, of the previous financial year;

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have unused concessional contributions cap amounts from up to five previous years (but not before 2018 to 2019).

The unused cap amounts are available for five years, unlike prior to 2019 whereby if you didn’t contribute the full concessional cap, you lost the option to do so in the future. This is the first time you can use a full five years’ worth of unused caps to increase your contributions plus the current year cap – so if no employer nor personal contributions have been made since 2018 to 2019 you could potentially contribute up to $160,000 in concessional contributions for FY24 (note the cap was $25k in FY19 & FY20 and increased to $27.5k thereafter).

MANAGEMENT

Unused concessional cap amounts are applied automatically once you exceed the cap in any year and the oldest available cap is used up first. If you intend to fully utilise all your unused concessional caps but it may be more tax effective to have a larger tax deduction in the 2025 financial year once the Stage 3 Tax Cuts, come into effect, you may look to contribute only the 2018 to 2019 unused concessional cap before June 30, 2024 after which time that portion of your carried forward unused cap would expire. It’s important to consider your group structure well ahead of June 30 with your accountant to ensure you understand potential opportunities to minimise current and overall tax liabilities and the timing and actions that may be required to take advantage of any strategies available. Important: Tax changes announced just prior to publication have impacted the accuracy of the figures above. February 2024

MOTEL MARKET

Selling in a buoyant market Human sentiment is the driver: supply and demand By Andrew Morgan, Motel Broker/Partner, Qld Tourism & Hospitality Brokers

People often focus on the pessimistic side of things, and in this case, that would be selling in a quiet market. However, let’s take a brief look at the more optimistic side of things, selling in a buoyant or busy market. Markets fluctuate up and down most of the time. The reasons for this are many and varied, but at the end of the day, no matter what industry, field, product, or market is being considered, human sentiment is the driver: supply and demand! Those who want it and those who have it. When the market is quiet, the demand for that product is low; therefore, there is downward pressure on the achievable price, and it takes longer to sell. Conversely, when the market is busy and there is high demand, the achievable price goes up, and the time taken to sell that product is much less. There will often be many buyers for that product and many unsatisfied buyers once a contract is entered into, especially when there are limited numbers available of that type of product, such as a particular motel business. The shelves are not stocked with them! The fluctuation of markets is different for each. The stock market is an example of one of the most fluid markets and can

February 2024

change in seconds on the back of one company announcement. A positive announcement may see the value of shares in that company skyrocket within minutes. Human sentiment has changed, and as a result, demand has soared. The residential property market is not as fluid and takes a bit more time to react. There may or may not be a buyer immediately in the market as soon as the property is listed for sale. It may take days, weeks, or months to sell depending on many variables. The commercial property market and the business markets are a little less fluid again, with the market taking a little longer to react; therefore, the selling times can be more protracted. Everything is relative though, and the length of time a motel business is on the market will reduce substantially in a busy market compared to that of a quiet one. One must understand the market they are in, when considering offering their motel or accommodation business for sale. Price expectations rely on how a seller and their advisers around them understand where the market is currently tracking, and therefore informed decisions can be made accordingly. Everyone wants to sell in a strong market; however, this is not always able to be achieved. One can only prepare and do all you can, given the circumstances at the point in the cycle where the market is, when they come to sell. As with anything, being armed with as much relevant information as possible is paramount.

No matter what the state of the market, there are a few matters that need to be in order before going to the market. Some items will be forgiven in a strong market over a soft one, however, some matters will not be compromised despite the state of the market. Let’s consider just four:

Financial statements Too often, a quality motel business and property will not sell due to the financial statements not being prepared correctly. Perhaps not inaccurate, but poorly presented. Often a seller may try to avoid paying their accountant to complete an “Abridged Profit and Loss Statement for Sale Purposes.” One may be happy that their management accounts are accurate, and they will satisfy due diligence, but how can a prudent buyer know or accept this upfront? Presentation plays an important role, no matter what the state of the market. It really is about giving the buyer confidence to make a quick decision, especially in a fast-moving situation.

Property Physical presentation should always be at its best, but of course, we all know that this is not reality, whether it’s a house, motel, or business, things can tend to slip without proper diligence. Minor items may be allowed to go through to the keeper in a strong market, but more major and costly

MANAGEMENT

matters will still come under scrutiny. Attempts to “pass on any bigger issues” to the next party will be red-flagged and need to be dealt with, most likely under contract conditions which could create additional pressure on the process.

Legal Having all contracts, agreements, and statutory requirements tidied up so there are no outstanding items that will cause an issue whilst under contract or just before the settlement is important. Often before selling, when a councilrelated or other similar issue arises, it can be seen as easier to just sweep these types of matters under the rug and “deal with them later.” What seems like a good idea at the time may become a headache later on.

Marketing The consideration of marketing does not change whether it be a strong or quiet market. Direct targeted marketing does not change. Where, what type, who are we aiming at, and how much is required may change but the fundamentals stay the same. Marketing funds can be frivolously wasted very easily when not placed correctly and directed at the target market in any market situation.

Professionals The same principles apply in legal, accounting, finance, and brokerage, no matter what the market. Utilise the experience and knowledge of those who know their business. Those who dabble or do not specialise will be disadvantageous to a seller’s position, even in a strong market. Being fully prepared before jumping into the pressure cooker of a fast-moving sale process in a busy market will reduce the pressure and stress for all concerned and achieve a better result.

Open air and transparency to solve rubbish conﬂict

By Grantlee Kieza, Industry Reporter

someone in an office who hasn’t been on the site and is not familiar with what they are dealing with,” Mr O’Farrell said.

Waste management might sound like a load of old rubbish for many people, but it’s a crucial issue for the management rights industry and anyone living in strata. Industry leaders say it’s vital that resident managers understand all the requirements around disposing of refuse at their property when they sign their agreements, or they could face significant sacrifices in time and money. Chris Irons, the former Queensland Body Corporate Commissioner, says property owners who treat waste management as a waste of time could see their property values decrease significantly if problems over refuse are not addressed. Mike O’Farrell, one of Australia’s leading management rights experts, says waste management – bin room and waste chute sagas, people putting the wrong rubbish in the wrong bins, and

“You have an inevitable catchup where, because of space restrictions and the cost of building, there is never enough space or adequate facilities applied towards waste management. Also, I very rarely see an agreement that fully encompasses the jobs to be done. Chris Irons

Mike O’Farrell

waste smells, are constantly vexing issues for resident managers at both short-stay and residential buildings. Mr O’Farrell has spent 33 years in the Management and Letting Rights (MLR) industry, owning and operating bodies corporate schemes and strata title buildings, including South Brisbane’s Riverside Hotel. He also runs Management and Letting Rights Services, which helps resident managers control their businesses. Mr O’Farrell says the problems over waste

management are exacerbated by developers not allowing “the space or the necessary tools for the entire exercise of waste management to be 100 percent successful.” He urged anyone entering the MLR industry to carefully study their agreement to ensure they were fully aware of all the waste management duties they were required to perform. “A lot of these caretaking agreements are not written as site-specific; they’re often generic agreements and they’ll be written by

MANAGEMENT

“You also have councils and pick-up arrangements and organisations that all do it differently. You can even experience differences with contractors in the same scheme. One contractor might be prepared to jump out of the truck and move a bin, and another might say ‘stuff it.’ “In terms of the waste chute in high-rise buildings, (although many bodies corporate don’t want to know about it) one of the major issues is regular cleaning. An even bigger issue is getting people to take note of what they can and can’t put down the chute.” February 2024

Mr O’Farrell said he was recently in a complex “where the garbage chute was disgusting, and the garbage room even worse. “While we were standing there, we hear ‘boom, boom, boom’ – it’s a hurled bottle and it smashes at the bottom. This is very dangerous if you happen to be in the bin room at that moment. “Often, people tip open packets of food, like stale yogurt down chutes. So, in many buildings, you have all kinds of issues; dangers, offensive smells, and a general mess.” Mr O’Farrell said the problem of waste management was not as pronounced in “highclass residential buildings” when most of the units were owner-occupied. Owners that care about their building, he said, would almost always be very conscious of waste management and how it’s treated. “But when you have these multi-purpose buildings with all manner of people, owners, tenants, and guests – that’s where you have more issues,” he said. “You can’t stop certain people doing the wrong thing no matter how much you ask. And it’s not just holidaymakers, it’s residents and tenants because very few

February 2024

people give the issue of rubbish chutes the attention it deserves. “The stress from this on managers at holiday time is enormous. “When I was working at the ‘coalface’ in buildings back in the 1990s, you always organised extra bins, extra pickups, and extra clean-ups over the peak period. A good manager should organise approval in the yearly budget to clean the garbage chute regularly because that’s where a lot of health and safety issues arise.” Furthermore, Mr O’Farrell said incoming resident managers should always ensure waste management protocols are covered at the contract stage of their purchase. “When you’re looking around a property, before even purchasing the management rights - that’s the best time to check these issues are in the agreement,” he said. “The buyer must raise these issues at the assignment meeting. Ask, ‘what is the policy with rubbish?’ Ask, ‘what are the manager’s responsibilities’ and ‘what’s in the budget for that?’” Waste management is a pressing issue in all strata buildings, not just those under management rights. Clean bins elevate community living, especially when sharing small

common spaces. Maintaining clean, fresh bins is a key factor in preserving the health and harmony of a strata community. Regular bin cleaning is more than just a matter of tidiness – it’s crucial to preventing the spread of harmful bacteria in a community where residents live in proximity. Foul odours from neglected bins create an unpleasant environment and encourage the breeding of unwanted insects and rodents. On the other hand, clean and well-maintained bins make for a visually appealing environment creating a sense of pride and community spirit in a well-run property. By choosing eco-friendly cleaning methods, strata communities can also help with recycling and other efforts to reduce environmental impact. Chris Irons, who now runs Strata Solve, Queensland’s leading strata dispute resolution and problem-solving firm, says that while waste management is the least appealing aspect of working and living in strata, owners who neglect addressing waste management issues face a significant hit to their property values. A well-maintained strata property, with clean and fresh bins, not only enhances the lifestyle of residents but also

MANAGEMENT

the value of the property to potential buyers as a place of health, happiness, and community spirit. Overflowing bins and bad smells can be a death knell to property prices. “From a legislative perspective, the body corporate must manage the common property, and there are specific provisions around things such as nuisance and hazards – and that involves things like maintenance and smell because bins can be a health hazard,” Mr Irons said. “Often disputes over bins and maintenance come down to a lack of understanding – if you move into a high-rise building, you might assume that someone else takes care of all the rubbish provisions. “Perhaps they do, and maybe the onsite manager or caretaker is engaged to do that. But that is not always the case. “A good resident, whether an owner or tenant, will not want to see bins overflowing and the rubbish collection area in disarray. But not everyone is of the same mind. “If I had one message for everyone living in strata it’s to man-up and take out the bins and put them back when the rubbish has been collected. Oftentimes people, even owners, are lazy and expect

their neighbours to pick up after them. They assume the rubbish is someone else’s problem. “It defies belief that people are living in strata communities who do not engage in that community even though it means they are missing out on an obvious personal and commercial benefit.”

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Ensure that their garbage bins are returned to the correct storage position within 24 hours of when the garbage is collected.

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Ensure that their garbage bins are stored within their lot, and not on common property.

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Ensure that they do not dispose of garbage in a way that adversely affects the safety, hygiene, health, or comfort of other owners and occupiers.

Trevor Rawnsley

without realising how much work they have to do regarding the bins and waste management. Sometimes it comes as a big shock to them. “It’s essential that any new manager fully understands the contract that they are buying.” Kelley Rigby, from Letts Rebuild, whose company helps resident managers grow their businesses, says open communication is the key to avoiding confrontations in most aspects of life, including strata communities.

In October, Queensland’s Office of the Commissioner for Body Corporate and Community Management had to tell owners of a strata lot at North Lakes they were in contravention of scheme by-laws and that they had to:

This includes not disposing of garbage on common property, including cigarette butts or overflow from garbage bins, and ensuring that cigarette butts are cleaned up in the property gardens/common gardens at the front and back of (their property). It was a long and involved arbitration process over what should have been simple requirements of neighbourliness. Trevor Rawnsley, the CEO of ARAMA (Australian Resident Accommodation Managers Association) says one of the great benefits of management rights for any scheme is to have someone managing the rubbish maintenance rather than leaving it to individual owners. “But it’s crucial for anyone entering the industry to know exactly what’s involved when it comes to waste management in their agreement,” he said. “Some schemes have 200 lots, and that might involve putting out 400 bins a week – general refuse and recycling. “Some people new to the industry don’t understand the requirements and might sign a generic agreement

Kelley Rigby

“I know managers who have become embroiled in huge disputes over who is responsible for the waste chute. To me, it’s a commonsense issue that should be sorted in the agreement, with everyone compensated for the specified job,” Ms Rigby said.

One of the Sunshine Coast’s most experienced firms in on-site management rights transactions.

“Unfortunately, in the walkaround, some don’t check what’s in the agreement and what’s expected close enough. Some agreements might be 20 or even 30 years old and don’t include the modern methods or requirements of waste management. “It’s essential that everyone is open and transparent from the start. That’s what harmonious living should be. “Anything else, as some residents and managers have found, can result in confusion, conflict, and a big stinking mess.”

Damian Quinn • Body Corporate Law • Commercial Law • Business Law • Property Law • Litigation & Disputes • Retirement Villages • Wills & Estate Planning

MANAGEMENT

Isabella Mansell SUNSHINE COAST & QUEENSLAND WIDE

(07) 5443 5266 simpsonquinn.com.au February 2024

The empathy challenge When a multi-million-dollar business purchase is in play, the rapport stage becomes super critical By Mike Phipps, Mike Phipps Finance

“If you can learn a simple trick, Scout, you’ll get along a lot better with all kinds of folks. You never really understand a person until you consider things from his point of view, until you climb inside of his skin and walk around in it.” – Harper Lee, To Kill a Mockingbird Some time ago the ‘managing director’ decided to sell her perfectly practical German engineered SUV for an impractical variant. For reasons unfathomable to a mere

February 2024

male, she concluded that a firmer riding device with less head room, less cargo space and the capacity to induce claustrophobia would make a great daily driver. Clearly a German engineer had colluded with an Italian designer to come up with a modern version of motorised medieval torture. No matter, once acquired the MD loved the thing and basked in the many compliments of passersby who had never experienced the compromises and deprivations required to achieve the end visual result. As time went by and I continued my running commentary regarding the many failings of the vehicle, the MD seemed to grow tired of my rants and, one

suspects, of the impracticalities of her mode of transport. Finally, just before Xmas, she agreed to rid us of the damn thing provided I replaced it with something of her choosing. I suspect her cunning plan to punish me was hatched while she observed me mowing the lawn in 34-degree heat and 100 percent humidity. Heat and humidity are my worst enemies, I hate them both with equal passion. From the comfort of her air-conditioned abode, she decided that whatever vehicle she chose, it must be located somewhere hot, humid and far away. Furthermore, I must be compelled to travel to whatever hell on earth the purchase was to take place and drive the new ride home.

MANAGEMENT

From here her task was fairly straight forward. Townsville in summer met all her requirements, with the added bonus of possible cyclone risk and the occasional flooded road and subsequent crocodile encounter. The purveyor of her preferred German brand had her perfect replacement in stock, and negotiations commenced. I would fly to Townsville, hand over the loot and drive home. Initial discussions with the sales guy went well and we struck up a bit of what felt like mutual respect. That is, I respected the fact that he was going to take my money, and he respected the fact that the managing director was calling the shots. Then the sales guy went on holidays, and I ended up in

THINKING MR

BUILDING RELATIONSHIPS

In any event the new guy turned out to be the dealer GM and, to his credit, worked me out prett y quickly. This ability to change tack, combined with the return of the original sales guy, got the deal done. Here’s the thing… Most people of my acquaintance don’t like being sold stuff. They like to think that they made the purchase call, and the salesperson is merely the facilitator of information provided to support that decision. Really good salespeople know this and spend much time and energy building rapport in order for the information they provide to be well received and, more importantly, believed. I am amazed at the number of times I’ve experienced a salesperson go for the close in the initial stages of rapport building. This comes across as insincere at best and high pressure at worst. I’ve had car salesmen tell me a car is perfect for me without ever asking what I intend to do with it or what I’m driving at present. It’s a zero-credibility game that fails when selling low-cost items and gets worse as the value of the transaction increases. Needless to say, when a multi-million-dollar business purchase is in play, the rapport stage becomes super critical.

Here’s the other thing… Salespeople who depend on commission, and are not doing well, are the most predisposed to a lack of rapport building and a rush to the close. It’s a self-fulfilling zero-sum strategy, as their desperation dictates a personal demeanour that is almost guaranteed to fail. Of course, it takes discipline to hold your nerve when every fibre of your being is screaming, for god’s sake, just buy the bloody thing! Good salespeople like the bloke at Townsville provide information in a timely but low-pressure manner, are helpful but exude an attitude of wanting to sell you something but it being ok if you decide not to buy. Hell, you’re such a good bloke I’d feel guilty if I didn’t spend some money with you. Now, that’s sales. I’ll leave you with this quote from famous departed American comedian George Burns: “The key to success is sincerity. If you can fake that, you’ve got it made.” PostScript: As luck would have it, I had the last laugh and left the managing director somewhat disappointed. It turns out Townsville is far from hell on earth, being one degree cooler than the Sunshine Coast. To add insult to injury (for the MD), the car dealership put me up at The Ville Hotel and Casino, which turns out to be an excellent hotel with a world class swimming pool area, magnificent views, lovely rooms, and very welcoming staff. I even had a good experience checking in at Brisbane Airport and flying Qantas. Flight on time, crew friendly and beer cold. It’s a Christmas miracle! So there my dear, you should have come with me. Turns out hell on earth ain’t so bad.

discussions with someone else. The existing rapport and respect seemed to evaporate, and I started to get cold feet. The numbers still worked and the car was still very appealing, but… I now felt like I was doing business with someone who hadn’t taken the time to get to know the customer or build any relationship. In my experience, buying a vehicle for someone who has the power of life and death in your world is an emotional one, and needs to be treated as such.

A little tough love Kathy purchased the unit in 2023 and wasn’t aware of the onsite management team. We are working on winning her back.

By Kelley Rigby, Managing Director, Lett s Rebuild

This article may make some feel a bit uncomfortable, but please know that my words always come from a place of love. I truly want to see you succeed in this challenging world we call management rights. If I were to walk into your building or complex right now and ask you about the number of investors in your letting pool, the number of externally managed units, and the number of owner-occupiers, could you confidently provide me with those numbers? If so, that’s amazing! Now, if I walked into your office and inquired about random properties, could you tell me all about the owners? Allow me to provide you with an example. Let’s say I asked about units 4, 19, and 54. Here’s what I would expect: Unit 4: Jess and Bill are under our management. They’ve been with the onsite team since they acquired the unit back in 2013. They’ve had the same tenant for over five years, and their rent is $580, but it could potentially be increased to $640. They are attentive to the tenant’s needs. Unit 19: James is the owner. He purchased the unit in 2022 and prefers to maintain his privacy. We assisted him during his move-in, and he has consistently shown appreciation. He has been supportive of our initiatives. Unit 54: Kathy owns this externally managed unit. She acquired it through ABC Realty and currently has them overseeing its management.

MANAGEMENT

This level of knowledge is what I would expect you to have readily available. If I were to observe your whiteboard (yes, I’m old school) or check your sophisticated CRM system, I would expect to find even more detailed information. This might include details about the residents’ families, their vacation preferences, the pets they have, implemented marketing strategies, and when the next contact is due. Technically, at Letts Group, we refer to this as a ‘Property Pipeline’, and it’s something we explore in our course. The property pipeline isn’t just about expanding your letting pool; it’s about maintaining control (I dislike that word, but it fits) of your business. It helps you identify when someone is contemplating selling, when an owner is relocating and considering converting their property into an investment, and who your supporters are when you need a top-up. The list goes on, emphasising why it’s crucial to know your community. Let me put it this way: your competitors do this too, but they usually must do it for an entire suburb or even more! You, on the other hand, only need to focus on your immediate community. Furthermore, your competitors didn’t invest millions of dollars into the business they run, but you did. You have more at stake than anyone else, so making this a priority in your business is crucial. If you read this article and feel a bit uneasy because you haven’t implemented these strategies, the silver lining is that you can start at any time. It’s never too late to establish structure in your business. I genuinely want to see you succeed, and I can’t wait to hear the stories of how you implemented this strategy and came out on top. My words always come from a place of love and support! Now, go out there and WIN!

February 2024

Four years of innovation, success and excellence. Join the celebration as we mark four years of groundbreaking solutions, unparalleled service, and a commitment to our amazing community. Thank you for being part of our incredible journey!

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GOOD GOVERNANCE

WHS annual review of your safe work plan for common property

By Lynda Kypriadakis, The Diverse Group of Companies & DPX Projects

If you are a building management services provider or caretaker, with duties that include coordinating and arranging (or doing) repairs and maintenance on the common property of a strata complex, then you are defined as a person conducting a business or undertaking (a “PCBU”) under the WHS legislation of Australia. As a PCBU you have duties and responsibilities that need to be delivered and documented for good order’s sake.

Caretakers and building managers WHS risks WHS is all about managing (or preferably eliminating) workplace risk. What are the risks that residential strata bodies corporate and their

February 2024

2024 is coming in hot (literally!) and already building management professionals are so busy that they are wondering where the Christmas break went. In this rapid-paced world, it’s tempting to overlook certain administration tasks but one task that shouldn’t be ignored is the annual review of the Work Health & Safety Plan for the common property workplace.

It’s tempting to overlook certain administration tasks engaged building managers or caretakers are exposed to?

•

Failure to notify or communicate with stakeholders.

•

Failure to prevent unauthorised access to the workplace.

Here is a basic list: •

Improper paperwork (no contract, license, insurance, and so on) for the works. Incompetent or unlicensed workers (unskilled workers are a hazard in the workplace).

Caretakers’ and building managers’ WHS responsibilities

•

Uninsured workers.

•

Unsafe work practices.

•

Incorrect tools, plant, equipment, or materials for the task.

Now we understand the WHS risks associated with caretaking and building management, what are the obligations and tasks that a building management services provider needs to do

•

MANAGEMENT

for WHS compliance and risk management in Australia? If you have duties under a facilities management or caretaking agreement that include any of the following tasks or activities, you have risks to manage and WHS duties to perform: •

Duty to coordinate access for repairs or maintenance to occur.

•

Preparing scopes of works for building repairs.

•

Obtain quotes for repairs and making recommendations on engagement.

•

Issuing work orders or instructions to building works contractors for works to occur.

•

Providing access for building works to occur on the common property.

Validating invoices for building works and issuing approvals for payments to be made.

•

Undertaking handyperson works.

•

Undertaking cleaning or gardening works.

•

This list is a general guide to duties performed by a building manager or caretaker that would require WHS risk management documentation.

WHS risk management documentation Every PCBU must have a documented audit trail of risk management. This documentation would be called upon in an audit of safe work practices should an adverse event or accident occur on the common property of the complex. As a minimum, the following documentation should be on file and updated routinely: •

WHS Policy.

•

Certificate of currency on Work Cover insurance and any other mandatory insurances (eg., Public Liability is usually a requirement under an Agreement with a Body Corporate) Risk Assessment (completed every 28 days).

•

Safe Work Method Statements for all high-risk activities.

•

Training registers with signatures.

•

Hazardous materials register.

•

Incident reports.

•

Daily diary or log of work events on the common property.

•

Contractor indemnity proofing records

Where the building manager or caretaker coordinates and arranges building works (repairs) to occur on common property for their body corporate client, the building manager functions as the Health & Safety Representative (“HSR”) for the common property workplace. This means that the body corporate client relies on you to facilitate the WHS requirements on the common property. In this case, the last item on the list above is particularly important (contractor indemnification). All these documents listed above combine to form the WHS Compliance Management Plan (or the documented safe system of work).

Building manager as Health & Safety representative HSRs represent workers on health and safety and matters in the workplace and have responsibilities under WHS legislation. It is a serious

role and has powers and responsibilities under sections 68 and 69 of the Work Health and Safety Act 2011. A body corporate will expect the building manager or caretaker to function as the HSR for the common property workplace as a duty under the agreement – even if this duty is not specifically prescribed in the agreement schedules. Important note: Legal advice is highly recommended for building managers and caretakers who are unsure and need guidance. If you are not sure what your specific WHS and HSR responsibilities are, get legal advice urgently.

WHS Compliance Management Plan for strata property building managers and caretakers With over 1500 pages of WHS Act, regulations and codes of practice mandating WHS requirements on PCBU you can be forgiven for not understanding exactly what your duties and responsibilities are, but there is help available to get plain and simple advice specific to the residential strata sector. The Act

and associated documents are freely and readily available online, however for a quick win, try Chapter 18 of the ABMA Building Management Code©, which is dedicated to explaining what the WHS and HSR requirements are specifically for caretakers and building managers in community title and strata properties. A WHS Compliance Management Plan is a fancy name for a documented safe system of work for the common property workplace. Having one prepared by a specialist consultant is an option for caretakers and building managers, but the WHS CMP is not a once-off “set and forget” exercise.

Annual review of WHS Plan To provide evidence of ongoing vigilance in risk management to comply with the WHS legislation, periodical reviews of the common property WHS CMP are required. When each periodical review occurs, this review event must also be documented. Periodical reviews must occur after any workplace incident (accident, breach, or near-miss event) or at least annually, for good order’s sake.

Accountants to the accommodation industry. Call 07 5430 7600 or visit holmans.com.au

MANAGEMENT

February 2024

TOURISM REPORT Visit Sunshine Coast’s Head of Industry & Trade Development, Andrew Fairbairn, attributed this success to the region’s strong brand and the return of direct flights from key cities, including the launch of new regional services through the Bonza network. He emphasised the efforts to showcase the diversity of offerings on the Sunshine Coast, particularly in food and dining, to attract visitors.

Holiday bookings favour capital cities

Image courtesy of Visit Sunshine Coast

Sunshine Coast breaks records in tourism performance The Sunshine Coast’s tourism industry has reached unprecedented heights, thanks to record interstate visitor numbers and extended stays. According to Tourism Research Australia’s latest National Visitor Survey (NVS) for the year ending September 30, 2023, the Sunshine Coast experienced remarkable growth. Overnight visitor expenditure (OVE) reached $4.2 billion, an 11.8 percent increase from the previous year and a staggering 53.7 percent rise compared to 2019. A total of 4.2 million visitors graced the Sunshine Coast, with a record 2.5 million being holidaymakers – a 1.7 percent increase from the previous year and a 12.9 percent rise compared to 2019. Visitors extended their stays, resulting in over 15.3 million nights recorded, reflecting a 5.6 percent year-on-year increase and a 2.4 percent growth compared to 2019. The key driving force behind this surge was the return of the interstate market, particularly fuelled by Bonza’s new

services from regional NSW and Victoria. Interstate visitation grew by 14.3 percent year-on-year, totalling 1.1 million visitors. The number of interstate holiday visitors reached a record 780,000, a remarkable 21.5 percent year-on-year increase. The NSW and Melbourne markets contributed significantly, with 9.5 percent and 21 percent year-on-year growth, respectively.

Strong growth in day trippers The year to September 2023 also saw a robust growth in day trippers, with 6.8 million visitors spending $907.9 million, marking a 39.9 percent year-on-year increase. Moreover, during the most recent September quarter (July 1 to September 30), when many destinations experienced a decline in domestic traveller numbers, the Sunshine Coast defied the trend. It attracted 1.2 million visitors, a significant 29.8 percent increase compared to the same quarter in 2022. Total nights stayed on the Sunshine Coast grew by 33.1 percent, reaching 4.4 million compared to 2022, including 2.5 million nights from interstate visitors, up by 35.8 percent year-on-year.

Capital cities have dominated holiday bookings, with Brisbane taking the lead. Sydney and Melbourne also secured significant percentages of all bookings to 35 destinations analysed. Brisbane’s bookings outpaced Melbourne’s by 20 percent and Sydney’s by 25 percent, a notable shift from the previous year when Melbourne led in bookings.

NSW North Coast and Queensland Coast attract regional holiday makers The NSW North Coast and Queensland Coast emerged as the top regional holiday hotspots for business travellers, attracting 15 percent of all bookings in 2023 and 14 percent in 2024. When excluding cities, these coastal regions accounted for 65 percent of regional holiday bookings in 2023 and 59 percent in 2024.

Brisbane emerges as Top Corporate Holiday Destination for 2024 Corporate travellers are increasingly combining business with leisure, family, and friends during the holiday season. In 2024, Brisbane is poised to become the top destination, surpassing last year’s top spot, Melbourne. Corporate Traveller, part of Flight Centre Travel Group, reported a 20 percent increase in bookings for Brisbane compared to last year.

Image courtesy of Visit Sunshine Coast

Executives explore off the beaten track This holiday season, destinations like Broome in Western Australia and Coffs Harbour have gained popularity among travellers. Newcastle has also seen remarkable growth as a holiday destination, surpassing other regional destinations in bookings.

Image courtesy of Visit Sunshine Coast

February 2024

TOURISM

Experience Gold Coast CEO John Warn commended the overwhelmingly positive response to GC Summer FUNds, a testament to the unwavering support of operators in the region. He pointed out that the initiative had effectively delivered on its potential by injecting immediate business into the pockets of experience operators. Furthermore, he expressed confidence that this program would result in additional spending on the Gold Coast. Looking ahead, Mr Warn highlighted exciting events on the horizon, including the prestigious AACTA Festival and Awards, Gold Coast Open, P!NK’s Summer

Image courtesy of Experience Gold Coast

Gold Coast summer funds inject $7.2 million in stimulus for visitor economy

Image courtesy of Visit Sunshine Coast

Carnival, and the Lunar New Year. He noted that inbound capacity from the top international market, which had thrived before the pandemic, would be reinforced with daily services by China Southern and China Eastern Airlines.

South East Queenslanders wasted no time in seizing the opportunity presented by the GC Summer FUNds initiative, as they eagerly purchased 50,000 $50 vouchers within just one week. This surge in voucher sales has provided a significant boost to the Gold Coast’s visitor economy.

2024 Travel Trends by Oaks Hotels Oaks Hotels, Resorts, and Suites predict several travel trends for 2024:

The launch of GC Summer FUNds took place at midday on Monday, January 15, and within a span of six days, it garnered an impressive three million page views, clearly demonstrating its immense popularity. This $2.5 million initiative was a collaborative effort involving the Queensland Government, Tourism and Events Queensland, Experience Gold Coast, and the City of Gold Coast. Its primary aim was to encourage Queensland residents to lend their support to over 180 tours, attractions, and experiences that had been impacted by adverse weather events during the peak summer holiday period.

how these deals were swiftly taken up, with an unprecedented level of demand, highlighting the resilience and strength of the tourism industry. He emphasised that the enthusiastic response from South East Queenslanders has brought a much-needed boost to the local economy, affirming that the Gold Coast is indeed open for business and an ideal destination for holidaymakers from both near and far.

Tourism Minister Michael Healy attributed the phenomenal success of GC Summer FUNds to the world-class attractions on offer in the region. He remarked on

Gold Coast Mayor Tom Tate also expressed his gratitude to the local community and South East Queenslanders for their enthusiastic support of GC Summer FUNds.

•

Value is king: Travellers are seeking value for money, considering location, seasonal deals, loyalty program benefits, and in-room amenities such as kitchens and streaming services.

•

The Importance of Coffee: Travellers are increasingly factoring in access to quality coffee when choosing accommodations.

•

Streaming services: Hotels need to provide guests with the ability to stream their favorite shows to recreate the comforts of home.

•

Comfort food: Providing options for guests to enjoy comfort food, either by cooking in-room or ordering from local restaurants, is essential.

•

Micro-weddings: Intimate weddings with fewer guests are gaining popularity due to cost-effectiveness.

•

Multigenerational travel: Families are travelling together to create shared experiences and share costs.

•

Work and play: Travellers are combining work trips with leisure, extending their stays to explore destinations while working remotely.

These trends reflect travellers’ adaptability and desire for value and convenience in their travel experiences, even in the face of rising living costs. Oaks Hotels aims to cater to these evolving preferences and provide guests with a memorable and enjoyable stay.

TOURISM

February 2024

NICHE TRAVEL

Setting sail in style: Exploring the luxurious world of cruise ship cabins

Images courtesy of Interline Travel

offering cozy quarters with all the essential amenities. Perfect for those who prioritise exploring the ship and ports of call, interior staterooms provide a peaceful retreat without breaking the bank.

Oceanview cabins: Natural beauty at your doorstep

By Stephen West, Interline Travel

Embarking on a cruise is a thrilling adventure, and one of the key elements that can make or break the voyage is the type of cabin you choose. Cruise lines offer a diverse range of cabins, each tailored to different preferences and budgets. From cozy interior staterooms to opulent suites with panoramic views, the variety of options ensures there’s something for everyone. Let’s delve into the benefits of the various types of cruise ship cabins and discover how they can enhance your cruise. And how you can travel in a suite for much less than you think!

If you crave a glimpse of the everchanging seascape, an ocean view cabin is an ideal choice. These cabins feature windows or portholes, allowing natural light to flood the room and providing a connection to the mesmerising views outside. Ocean view cabins strike a balance between affordability and a touch of luxury, offering a refreshing way to start each day of your cruise.

Balcony cabins: A breath of fresh sea air For those who desire a private outdoor space, balcony cabins are the epitome of luxury on the

You can travel in a suite for much less than you think high seas. Step outside onto your own veranda and enjoy the fresh sea air, the warmth of the sun, and breathtaking vistas. Balcony cabins seamlessly blend indoor and outdoor living, creating a serene retreat where you can unwind in style.

Suite life: Unparalleled extravagance The pinnacle of cruise ship accommodation, suites redefine luxury at sea. These expansive living spaces often feature separate sleeping and lounging areas, lavish amenities, and in some cases, exclusive access to special privileges. From personal concierge services to

For budget-conscious travellers, interior staterooms provide a cost-effective yet comfortable option. Though lacking windows, these cabins are cleverly designed to maximise space, February 2024

With many of the Interline deals available to members working in management rights, the cost of a voyage on a luxury ship can be less than the family-style four-star ship. Considering many of the extras that are added to the final bill such as speciality dining, drinks packages, and shore tours – these are all included in the upfront all-inclusive fare. The cabin is generally a suite – luxuriously appointed with and without a balcony. In conclusion, the diverse array of cruise ship cabins allows you to tailor your at-sea experience to your individual preferences and budget. Whether you opt for the budget-friendly interior staterooms, the scenic ocean view cabins, the private luxury of balcony cabins, or the extravagant (well-deserved) suites, each cabin type offers a unique set of benefits. Ultimately, the cabin you choose plays a pivotal role in shaping your cruise experience, ensuring that your time at sea is not only memorable but also tailored to your specific desires and preferences and collective growth.

Interior staterooms: Affordable comfort

private dining options, suites offer an unparalleled level of comfort and indulgence, making them the ideal choice for those seeking the epitome of a luxurious cruise experience.

TOURISM

EVENTS

Letts Learn workshop dates announced

Learn. STRive. Thrive!

Always passionate, Kelley Rigby (Letts Group) is on a mission to impart valuable management and letting rights insights.

Returning in 2024, bigger, and better, STRive to Thrive is the shortterm rental event you do not want to miss.

We are excited to announce her latest endeavour, Letts Learn - a knowledge hub crafted exclusively for onsite property managers. The Letts Learn workshop is an incredible resource for those who seek comprehensive courses, webinars, and MLR business guidance. In 2024 Kelley is offering a series of face-to-face strategic training workshops, one-on-one personalised strategy sessions and a self paced marketing course. Visit lettsgroup.com.au/ letts-learn for more details.

Experience an unparalleled two-day extravaganza specifically tailored for short-

Kelley Rigby

term rental proprietors, owners and managers. STRive to Thrive is returning with a two-day edition on March 20 and March 21, 2024 in the heart of Melbourne. Go here for tickets and details: striveconference.com.

Build, Protect & Retain Face to Face workshop dates: January 30 - Brisbane SOLD OUT February 13 - Gold Coast April 25 - Gold Coast June 6 - Brisbane July 18 - Sunshine Coast August 8 - Gold Coast September 10 - Airlie Beach October 30 – Carins October 31 - Port Douglas November 12 - Brisbane

Accommodation Industry Golf Schedule 2024

Images from the 2023 series of golf activities.

We are excited to hear that five accommodation industry golf events have been locked in for 2024 and they include two new courses – The Oxley Golf Club, Brisbane (par 72 Championship course) and the RACV Royal Pines Golf Resort on the Gold Coast.

The first event will be at the Royal Pines Resort on Thursday March 21, with a shotgun start 12.30pm. It’s an Irish team Stapleford competition and players are asked to dress in suitable Irish attire with a prize for the best dressed. Cost for the day is $120 which is exceptional value based on current golfing rates. For full details and to register contact Tracey Taylor taylor77@bigpond.net.au

EVENTS

Thanks to Major Sponsors: Watt Utilities, Mahoneys, KONE, Platinum Electrical & Air, McAdam Siemon Business Advisors, Rochele Painting, Nator Constructions, RBC Group, ResortBrokers and SSKB also onboard this year as a major sponsor. And supporting sponsors: The House of Golf, ARAMA, REI Cloud, Resort News & Letts Group.

February 2024

Five of the freshest farm stays on the Sunshine Coast for the perfect ‘haycation’ Natural beauty and rural charm blend seamlessly and this year on the Sunshine Coast, a raft of farms are due to open their gates for visitors to unwind and relax in the tranquil countryside. Guests can now experience the fun of a working farm, reconnect with nature and tuck into delicious fresh produce at these five farm stays on the Sunshine Coast.

New accommodation quarters, The Acreage The popular Sunshine Coast hinterland farm stay Sixty6 Acres has recently added a new three-bedroom villa to its fold, The Acreage - boasting sweeping views over the farm and its lake. Guests of The Acreage will benefit from exclusive use of the outdoor bathhouse, complete with an original clawfoot bathtub,

copper rainwater shower, uninterrupted views of the lush farmland and a charming country aesthetic. The luxurious self-contained quarters feature wood fireplaces, freestanding baths, and fully equipped kitchens. Outside, guests can enjoy the farm’s putting green or borrow a kayak for a paddle on the lake.

A taste of Tuscany in the Noosa Hinterland at Mayan Luxe Villas Perched in absolute serenity on 100 acres of fertile farmland, Mayan Farm is the perfect setting for those seeking some quiet time surrounded by rolling hills, grazing livestock and lush gardens. Built from sustainable rammed earth, Mayan Luxe Villas is offered as entire, exclusive use property, with three luxury villas each featuring a king-size bed and ensuite. Bookings include exclusive use of the plunge pool, pizza oven, fire pit and outdoor bathtub boasting wide-reaching views of the surrounding hinterland. As a fully-fledged working farm and with an owner that doubles as an in-house chef, farm-to-table dining doesn’t get any fresher than this! Mayan’s owner, Jodie Williams, dishes up DIY pizzas for guests to cook in the terrace’s wood fired oven. The cosy hammocks also provide the perfect vantage point to settle in to with a glass of wine in hand.

February 2024

DEVELOPMENTS

A new Glass House Mountains stay to suit the whole family Popular Glass House Mountains accommodation Seven Peaks Farm Stay is set to add a new family cabin to its existing six luxury cabins. Set amidst 30 acres of native Australian bushland with views of the iconic Glass House Mountains, Seven Peaks is perfect for soaking up the simplicity of country living. Guests can choose between getting well-acquainted with the friendly farm animals or finding a picturesque spot for a secluded family picnic.

A sub-tropical rainforest restoration Guests can kick up their feet in the heated plunge pool or by the private fire pit on the large outdoor deck and witness a rainforest restoration right in front of their eyes – a product of the Sunshine Coast’s commitment to protecting and regenerating the local land. Kurui Cabin is located on one of the first sites earmarked for regeneration in the Noosa Hinterland town of Cooroy as part of the Sunshine Coast Sustainability Program, with planting set to take place from March 2024.

A fresh twist on a hinterland classic As the oldest house in Mapleton, there’s no better spot for guests to sit back and soak up the scenery than the openair balcony at Smith House at The Falls Farm. Sitting on the highest ridge, this enchanting farm stay overlooks the Obi Obi Valley – a rich tapestry of colours bearing vibrant wildflowers, towering hoop pines and flooded gum. Guests can admire the produce bounty at The Falls Farm itself, which is the key source of ingredients for nearby Mapleton Public House just down the road, where they can also discover an authentic paddock-to-plate experience.

DEVELOPMENTS

February 2024

Clubb Coolum, QLD

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

MANAGEMENT RIGHTS Gold Coast Kamilaroi

AQZ Prpperty Management P/L

Tugun

MRS

Seabay

George Rouvas

Southport

MRS

Kirra on the Beach

Horizon Property Management

Coolangatta

Palm Beach Residences

Napsa Holdings P/L

Palm Beach

Brisbane

ResortBrokers Sunshine Coast Team, Glenn Millar and Chenoa Daniel are proud to have been instrumental in the sale of the management rights of the Iconic Clubb Coolum, located in a prime beachfront location opposite Coolum Beach. Having sold the rights to the outgoing managers, Tony and Denise 16 years prior, we welcome the incoming team of Geoff and Tamara Hussin. Geoff and Tamara are no strangers to the industry, having had the rights of Element on Coolum and Ivory Palms in Noosaville. Geoff and Tamara were inaugural winners of the ARAMA Short Stay managers of the year and have big plans to take Clubb Coolum to the next level – Watch this space.

Mornington Apartments

Arcadia Realty P/L

Kangaroo Point

MRS

Skyring Apartments

H&H Skyring P/L

Newstead

Profile & Arthouse Apartments

Damien & Karen Stieger

Fortitude Valley

Jade Management Rights

Australian Accommodtion 3 P/L

Albion

Monterey

Yang Li Family Trust

Kangaroo Point

Charlton Residences

PWT Group One P/L

Windsor

Sunshine Coast / Wide Bay / Fraser Coast Azure on Double Bay

Colin Volkofsky

Buddina

Clubb Coolum

Getalate P/L

Coolum Beach

Zhai Pei P/L

Cairns City

CBMR

Far North Qld Citysider Holiday Apartments

MOTELS & OTHER Queensland

The Management Rights Lawyers

y Buying and selling y Off-the-plan acquisitions y Legal due diligence y Agreements and variations y Remuneration reviews y Options and top-ups y Dispute resolution

Mundubbera Three Rivers Tourist Park

Iron Bark Citrus (Leasehold)

Mundubbera

Mundubbera Three Rivers Tourist Park

Iron Bark Citrus (Freehold P.I.)

Mundubbera

Emerald Inn

Wattlestone (Leasehold)

Emerald

Emerald Inn

Wattlestone (Freehold P.I.)

Emerald

Arkana Motel

Seaforth Corporation P/L

Maryborough

Ayr Travellers Motel

Luxury Motel P/L

Ayr

Matilda Motel

M&K Burgess P/L

Winton

Beerwah Motor Lodge

Nevergreen P/L

Landsborough

Bowen Palms Caravan Park (Land)

Leisure Lifestyle Villages P/L

Bowen

Bowen Palms Caravan Park (Business)

LLV Lifestyle Villages P/L

Bowen

New South Wales Quest Albury on Townsend

Vincent Bellerose

Albury

Merimbula Sapphire Motel

Guru Dev Resorts P/L

Merimbula

Alluna Motel

Phil Mitchel

Armidale

Forbes Caravan & Cabins

Ross Economy

Forbes

The Nambucca Motel

Tony Smith

Nambucca Heads

Cobb Inlander Motel (Land)

Sunrise Motel Holding P/L

Hay

Cobb Inlander Motel (Business)

Sun Resorts P/L

Hay

Prince of Wales Motor Inn

Herten, Shepley & Vidler

Wagga Wagga

Golden Harvest Motor Inn

Sai Pavan P/L

Moree

Tasmania Brisbane L 18, 167 Eagle Street Brisbane Qld 4000 07 3007 3777

Gold Coast L 2, 235 Varsity Parade Varsity Lakes Qld 4227 07 5562 2959

www.mahoneys.com.au

Cradle Mountain Highlanders Cottages

Howells & Feng Investments

Cradle Mountain

Panorama Hotel

Petika Investments P/L

St Helens

Kerri and Russell Annear

Murray Bridge

South Australia Avoca Dell Caravan Park

Note: Agent/Broker involved in the sale is listed last. Agent - KEY: RMS - Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RB - ResortBrokers; RS - Resort Sales; TO - Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH - Ward Commercial Hotels. * In conjunction

February 2024

PROPERTY

Experts in management rights sales www.mrsales.com.au | 1300 928 556

Our New & Exclusive Listings... Cabarita Beach NSW

ID: 7997

Australia’s No.1 Beach 2020 Ideally located midway between the Coolangatta International Airport & Byron Bay is this beachside accommodation business awaiting new owners.

Asking Price: $1,755,000 Net Profit: $301,563

Tweed Heads NSW

ID: 9119

Business Only Permanent Complex Ideal add on business model with no real estate to buy, no need to reside onsite and low maintenance grounds and gardens.

Asking Price: $217,000 Net Profit: $72,561

Kingscliff NSW

ID: 8036

LOCATION LOCATION LOCATION This is an amazing offering for anyone looking for a beachside lifestyle, Kingscliff is a major tourism hub only 15 mins from Coolangatta International Airport .

Asking Price: $3,900,000 Net Profit: $704,960 For further information contact: Tony Johnson | 0433 335 679 tonyjohnson@mrsales.com.au

Looking to buy or sell? Contact us today.

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LISTINGS FROM ALL THE LEADING BROKERS IN AUSTRALIA, NEW ZEALAND AND THE PACIFIC ISLANDS AUSTRALIAN BROKERS

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INVEST SMART, MANAGE RIGHT – PARTNER WITH US AT 1AGENCY

Beachside Resort, Mooloolaba This comprehensive management rights package encapsulates elegance, starting from the impressive foyer to the expansive and refined apartments that offer stunning ocean views. The property also boasts state-of-theart facilities, adding to its allure. The manager’s dwelling is an opulent 2 bedroom, 2 bathroom apartment, fully furnished for a luxurious experience.

Nett Profit: $339,346 | Real Estate: $975,000 | Business: $1,695,000 | Total Purchase Price: $2,670,000

Rarely Availabe Popular Beachside Resort, Maroochydore A unique chance to acquire a Management Rights property in Maroochydore, a sought-after holiday destination. Known for its excellent location and resort amenities, features a family-friendly high-rise with strong repeat business. The ground-floor management unit has been beautifully renovated and is complemented by a large private balcony. It includes 2 bedrooms, a study, and 2 bathrooms. The spacious office, part of the residence and on title, comes with 3 basement car spaces and a large lockup storage/cage.

Nett Profit: $579,280 | Real Estate: $800,000 | Business: $3,184,000 | Total Purchase Price: $3,984,000

Luxury Accommodation, Caloundra Prime location with full resort facilities, positioned close to all Caloundra has to offer from the incredible beaches, shopping centres, boutiques and renowned cafes and restaurants. Enjoy glorious 360-degree views. Management unit with 3 bedrooms, 2 bathrooms, 2 car spaces.

Nett Profit: $322,181 | Real Estate: $870,000 | Business: $1,550,000 | Total Purchase Price: $2,420,000

Beachside Resort, Maroochydore This management rights complex offers an array of expansive 1, 2, and 3-bedroom apartments, Meticulously maintained, this expansive manager’s apartment offers 3 bedrooms and 2 bathrooms. Unit may be separated from the business.

Nett Profit: $520,000 | Real Estate: $1,245,000 | Business: $2,650,000 | Total Purchase Price: $3,895,000

Resort Style Apartments, Surfers Paradise Prime location with full resort facilities, positioned close to all Surfers Paradise has to offer from the incredible beaches walking distance away, shopping centres, boutiques, renowned cafes and restaurants and public transport. Management unit with 2 bedrooms, 1 bathroom, 2 car spaces with a large patio plus a 1-bedroom selfcontained unit. On title also is 18 rental cages, underutilised at the moment. Minimal caretaking duties with no office hours.

Nett Profit: $117,779 | Priced to Sell: $1,240,000

We are actively seeking new listings on the Gold Coast and Sunshine Coast. If you’re considering selling, now is the perfect time to partner with us. Our dedicated team is ready to showcase your property’s unique charm and connect it with motivated buyers. Don’t miss out — list with us today!

LOOKING TO BUY OR SELL? CONNECT WITH US TODAY!

Mark McKay 0423 124 368 mark@1agencyqld.com.au www.1agencyqld.com.au

Lyn Pearsall 0479 124 368 lyn@1agencyqld.com.au www.1agencyqld.com.au

GYMPIE PINES FAIRWAY VILLAS

John and Jo win big with golf course drive By Grantlee Kieza, Industry Reporter

John Bolger spent 38 years fighting fires. His career started in Melbourne before stints in Mount Isa, Rockhampton, the Sunshine Coast, Maryborough, Cairns, and then Brisbane. John and his wife Jo, who is a qualified nutritionist and doula, have two daughters and three sons scattered around the country, from the Sunshine Coast to Rockhampton and Melbourne. About 20 years ago, “We said to the family, let’s go on an adventure because in 20 years’ time we didn’t want to find ourselves wondering what it might have been like to move to a completely different place,” he said. “Going to Mount Isa was one of the highlights of my career, and we spent seven years there. It was an exciting time. We had some big fires to fight but very few firefighters.”

February 2024

John says the property is in a great location, “quiet, but just off the highway and close to everything.” “We’ve developed a really strong relationship with the golf club - they are great neighbours,” he said. “It’s worked out perfectly for us. Recently we took a trip to Melbourne for a weekend to see some family, and it gave us the chance to reflect on what a great decision we’ve made. “We still work relatively hard, but it’s enjoyable, rewarding work.

John and Jo Bolger

John retired as Assistant Commissioner of the Rural Fire Service in Queensland, a service with about 28,000 volunteers. He says life is much quieter beside the fairways. He and Jo have found their ideal sanctuary and a rewarding new career as managers of the Gympie Pines Fairway Villas, a complex of 54 luxury properties surrounded on three sides by the lush Gympie golf course.

They became the new resident managers there in March 2023. “Happy to say, Gympie Pines has been the ideal move for Jo and me. It has a lovely community feel, a very supportive body corporate committee, and the most gorgeous gardens. It was a beautiful sunny day when we first came here, and all the flowers were out as we drove onto the property. We just fell in love with the place as soon as we saw it. And we still love it.”

PROFILE

“I look after the grounds and maintenance, my work is mostly outdoors which I love, while Jo looks after the business side of things. “We’re now at the point where we can employ our daughter Kaitley. We’re putting her through her real estate agent’s license as we plan to future-proof the business. “One of the best things we did with the business was take it to the REI Cloud. It’s been very liberating. “Kaitley lives on the Sunshine Coast but can work remotely if she likes. When Jo snuck over to Europe for a month with her mum, Kaitley and I were

able to run the business here, and when needed, Jo was able to keep an eye on what was happening from Switzerland.

be interacting with people because Jo and I enjoy that so much. We looked at franchises, shops, retail... all those things.

“Another factor we love about the work here is that it’s flexible; there are no formal set hours. As long as the work is done, we can shoot away for a break, and we can rely on our absolutely brilliant staff, who live just around the corner.

“Then, I was working and new to Brisbane, we stayed at a wonderful managed complex and I got to know its resident manager.

“If a guest books to stay while we’re out of town, our staff kindly come over and open the villas for them. It works well.” After almost four decades in a completely different line of work, how did John and Jo enter the management rights industry? “We didn’t have much idea about management rights until a couple of years ago,” John admitted. “But when I was in my last year or so in firefighting, I began to look at business opportunities that might give us some flexibility – something different but where we would

“We talked about the business, and I thought ‘gee this sounds like a good business model.’ The manager and I went out for lunch, and the more we talked about it, the more I thought management rights would be an ideal business for Jo and I.” The couple started looking around in the Brisbane suburb of Teneriffe but found the real estate component of the businesses they looked at too expensive.

home and business in a much more relaxed location out of the hustle and bustle,” John said. “And it’s a location that is popular with guests, and we are at full occupancy or close to it nearly all the time.” Gympie Pines Fairway Villas are located on Corella Road, just two kilometres from Gympie’s CBD but far enough from the highway to ensure that guests enjoy a peaceful night’s sleep.

The stylish, modern accommodation ranges from one- to four-bedroom villas with a variety of floor configurations to suit every need. Guests can step out of their villa and enjoy nine or eighteen holes on a fantastic course next door, or they can enjoy a swim in the 25m pool followed by a barbecue with family and friends. They can also work out in the property’s air-conditioned gym.

HOLIDAY LETTING

MADE EASY!

“We considered moving out of the CBD for more affordable real estate. For us coming up to Gympie to live in a beautiful golf course villa in a great property not only saved a significant amount of money but also allowed us to take a

THE TRUSTED PMS SOLUTION FOR YOUR BUSINESS

SMALL MYERS HUGHES LAW • BUSINESS • RELATIONSHIPS

Management Rights Specialists QLD-NSW-VIC-WA BUYERS - SELLERS - DEVELOPERS Our team of legal experts, led by Col Myers, has over 40 years’ experience in this area and will get you the best possible outcome. Tel: +61 (0)7 5552 6666 M: +61 (0)417 620 516 E: cmyers@smh.net.au W: www.smh.net.au

The team at REI Master are proud to support Gympie Pines Fairway Villas!

BOOK YOUR DEMO 1800 671 179 PROFILE

February 2024

We rarely drop below 90 percent occupancy Gympie is just 45 minutes from Noosa and only a short drive to the paradise settings of Rainbow Beach and Tin Can Bay, where visitors can sometimes hand-feed dolphins.

rentals and 20 are shortterm holiday rentals, mostly let out to tradespeople and visiting professionals.

A visit to the world-renowned Fraser Island or the chance to see the whales in the spectacular Hervey Bay is easily arranged, and in August, Gympie hosts the Gympie Music Muster.

“The Gympie region has so much going for it as far as the accommodation business is concerned, with the recent Bruce Highway upgrade, solar farms, wind farms, the Gympie Hospital, and a couple of large businesses in town.

John said of the 54 villas at Gympie Pines, 14 are owneroccupied, 20 are long-term

February 2024

“There is a good tourist trade as well,” he said.

“This property is in very high

demand; we rarely drop below 90 percent occupancy. We also get a lot of people coming to stay here as their base for weddings. Then over Christmas, we are at full capacity with people visiting families.” As someone still relatively new to management rights, John’s

PROFILE

advice to anyone else wanting to dive into the industry is “do your research and then surround yourself with good people.” “We’ve found it to be a wonderful, rewarding business, but first you have to do your research on the industry and properties very carefully,” he said.

“You should make time and take the opportunity to talk to current managers and find a broker who you can have a positive relationship – we certainly had that with Chenoa Daniel, who was excellent. “We also had that with a couple of other brokers we dealt with in Brisbane when we were looking at properties there. We were quite taken aback by their honesty and their knowledge of the industry. “Also, be prepared for the first three months or so of running a property to be confusing. After that, it becomes much easier.” John said he and Jo had taken over Gympie Pines from “excellent managers in

Martin and Loma” and that they had also been given wise advice from financier Mike Phipps and the team at Count under Paul Gafney. “Mike and Paul were great. At one stage we thought we’d found a nice little business in Manly in Brisbane that would be good for us, but Mike, Paul, and the other professionals we consulted said we could do better. We listened, and we are now very happy we made the move to Gympie,” John said.

10% discount for Resort News readers when booked direct

PHONE: (07) 5481 2435

“Throughout the process, Jo and I were quite reassured that the professionals we engaged had our backs the whole time. “Their advice paid off! We love Gympie Pines.”

info@gympiepines.com.au

25 Corella Road, Gympie Qld 4570

www.gympiepines.com.au

WHAT DOES IT COST TO HAVE AN INDUSTRY PROFILE? It doesn't cost anything to have a profile in Resort News apart from a little time when helping to coordinate the profile material. WHO WRITES THE ARTICLE? The article will be written by one of our qualified journalists.

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PROFILES ARE A FANTASTIC OPPORTUNITY TO: • Impress your unit owners • Receive recognition for your hard work (and that of your staff) • Lift the awareness of your property within the industry • Help build relationships with other managers • Lift the profile of your property for when you are ready to sell

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WOULD YOU LIKE TO HAVE YOUR PROPERTY FEATURED IN RESORT NEWS? Issue 326 | October 2023

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February 2024

THE PREFERRED SUPPLIER DIRECTORY THE ORIGINAL AND MOST TRUSTED BUSINESS TO BUSINESS GUIDE FOR THE ACCOMMODATION INDUSTRY

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07 5443 7789 12/72 Wises Road, info@kbaa.com.au Maroochydore, www.kbaaccountants.com.au QLD 4558

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Chartered Accountants & Specialist Advisors to the Accommodation Sector Since 1993

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February 2024

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Wall Art for Rent or Purchase and Custom Framing Minyama Gallery & Cafe: 3 Longwood St, Minyama Phone: 5444 0009

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February 2024

Across the Sunshine Coast Call 0438 302 591 www.firstresort.com.au CLEANING CONTRACTORS

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Industry finance specialists with over 80 years combined experience.

O u r aw ar d - w i n n i n g M R Fi n an c e S pec i al i st s w i t h 2 0+ year s’ i n d u st r y exper i en c e w i l l h el p yo u f i n d a b et t er d eal t o d ay. H ave u s o n yo u r si d e. A U T H O R I S E D U N D E R L O A N M A R K E T P T Y LT D AUSTRALIAN CREDIT LICENCE 390222.

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Mike Phipps | Director 0448 813 090 Paul Grant | Broker 0448 417 754 Cameron Wicking | Broker 0477 776 859 Josh Haylen | Broker 0435 032 467

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altogethergroup.com.au

David: 0421 618 566 jporter01@bigpond.com

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FURNITURE

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Automation Switchboard Upgrades Emergency Lighting Safety Switches Ceiling Fans Smoke Alarms Repairs to Appliances Street Lights & Garden Lights Cabling & Phone/Power Points Servicing the Accommodation Industry General Electrical Tasks & Test and Tagging License numbers: QLD 89805 NSW 385868c

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February 2024

Suppliers of Quality Commercial Outdoor Furniture & Accessories • New Chairs • Tables • Sun Lounges • Umbrellas • Cushions & Accessories • Prompt Service Guaranteed REPAIRS - RESLINGS AND SUPPLY OF REPLACEMENT SLINGS TO P.V.C AND ALUMINIUM OUTDOOR FURNITURE

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Specialists in management rights Off the plan sales qld & victoria Buying or selling best advice Rod Askew 0411 758 236 (QLD & VIC) Eric Brizuela 0413 060 683 (QLD) Nationwide: 07 3554 0040 Email: sales@rcabb.com.au

www.rcabusinessbrokers.com.au info@propertybridge.com.au propertybridge.com.au

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Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au

Think Management Rights Wayne & Linda Stoll 0452 181 505

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Matt Campbell 0410 343 219 Barry Davies 0438 554 995 Adam Langer 0468 317 321 contact@managementrights.com

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February 2024

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February 2024

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Flood Legal offers all the experience & expertise of a big firm while delivering accessible, personal & affordable service that comes with dealing with a small firm. Call Sharon Flood, Director 0459 070 871 or 02 6674 5118 sharon.flood@floodlegal.com.au www.floodlegal.com.au

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TRAINING & DEVELOPMENT

SPECIALISED VALUERS FOR MANAGEMENT & LETTING RIGHTS BUSINESSES AND MOTELS

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