Resort News - May 2024

Airbnb’s 2024 list of preferred partners is out and Resly was named a Preferred partner!

We’re honoured to be one of the select few to receive this status as a nod to the quality of service we provide.

We have been using Resly for nearly 3 years now, th e changes and growth we have seen through the years is next level, I would never want to run a management rights without Resly, absolutely a game changer in my eyes!!

Amazing service and innovations and they are always one step ahead of the game! Much love to the whole team.

Tracey, Coolum Beach Getaway Resort

INSIDE

The legal stuff...

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Challenges, triumphs & the success of Sister Viv!

Welcome to the May edition of Resort News!

I’m thrilled to share that next week I’ll be representing our publications as a media delegate at TRENZ 2024 in Te Whanganui-a-Tara, Wellington.

TRENZ stands as New Zealand’s largest international tourism business event. This marks a significant milestone for me, being the first major event, I’ve attended in NZ since the onset of COVID-19. I anticipate it to be a celebration of the NZ tourism rebound in 2024.

While New Zealand’s rebound still lags behind Queensland, which has shown remarkable resilience with visitor numbers even increasing in some regions, recent news of Bonza Airline’s administration casts a shadow. My heart goes out to the owners and operators in regions that have benefi tted from Bonza’s

Mandy Clarke, Editor editor@accomnews.com.au

connections; undoubtedly, it’s yet another challenging blow.

Upon my return to Brisbane, the events season will be in full swing. With two Women In Luncheon events lined up for May, I’m eager to reconnect with wonderful industry colleagues, including the event’s organiser and host Marisa Millane. The Gold Coast Luncheon will be hosted by lovely Kelley

Rigby of Rigby Property Group, and the Brisbane Luncheon will be hosted by the friendly team at SSKB. Book a ticket, everyone is invited, besides being a fantastic networking opportunity it’s always a brilliant jolly!

I am also set to attend the 2024 National Caravan Industry Conference from May 15 to 17, 2024, held at the RACV Royal Pines Resort on the Gold Coast. This event never fails to impress me.

Focusing back on this edition, we delve into some very important topics, including a report on the tragic fire in New Farm caused by an e-bike battery—a matter that hits close to home as one of my sons rides an e-bike and resides in New Farm. And yes, it prompted strict safety instructions from a panicked mum, yet it highlights

the broader issue of safety in apartment buildings, for which solutions are sorely lacking.

We also explore the topical subject of bullying and harassment of onsite managers, featuring valuable insights from insiders across the MLR industry.

On a lighter note, Grace Pang of SGM Consultants recounts her management rights journey. Enjoy our interview with Andrew and Cindy Tingate, the dynamic duo behind the gorgeous Garrick House in Port Douglas. Last but never least, congratulations to our multitalented writer and top bloke, Grantlee Kieza, on the massive success of his new book “Sister Viv”. It shot to number 1 in Australia for nonfiction at Angus & Robinson. It is an excellent read!

Strategies for managing bullying and harassment

By Grantlee Kieza, Industry Reporter & Mandy Clarke, Editor

In an increasingly contentious world, issues can intensify within multi-dwelling buildings, where neighbours not only reside beside each other but also above and below. For onsite managers in these buildings, the success of their management rights business hinges on their ability to cultivate strong relationships with unit owners, residents, investors, and notably, their building’s body corporate committee.

Body corporate committee members, elected by fellow unit owners, serve as volunteers. However, depending on the size and age of the building and its residents, this role can become all-encompassing and time-consuming. Those who self-nominate, more often

than not, do so out of a desire to ensure their asset is well managed and to promote a well-functioning community.

It’s in their best interest to collaborate eff ectively with the onsite manager or caretaker, yet in some instances, they have another agenda, and it only takes one difficult personality to make life challenging for managers. Even minor disagreements can escalate into bullying and harassment if left unchecked.

Trevor Rawnsley, CEO of ARAMA, has noted a troubling trend of managers reporting instances of bullying and harassment within their complexes, especially exacerbated by the COVID-19 pandemic.

“There’s too much angst and unkindness in strata, especially since COVID,” Mr Rawnsley observed. “Consumers are more aggressive toward retail and hospitality staff, and it’s no diff erent for our people.”

The rapid rise of social media and the common use of online

communication also amplifies problems says Tania Stewart, Business Developments/ Community Manager at SSKB.

“With the prevalence of bullying heightened by online communication, we advocate for proactive measures such as phone calls before emails to prevent misunderstandings. Education plays a vital role, in preventing conflict,” Ms Stewart pointed out.

“Bullying and harassment have no place in our communities. That’s why we are passionate about working with all stakeholders; lot owners, committee members and building managers to mitigate conflicts in the future.”

Kelley Rigby, Founder, of Lett s Rebuild also believes that education is key. “Educating property owners in our industry can contribute to fostering harmony,” she said.

“Over the past fi ve years, I have been involved in numerous AGMs with unit owners that turn into educational sessions about all aspects of

management rights. Knowledge is power, and I firmly believe it can make a diff erence.

“In the meantime, for those managers who are in the trenches, there are many people and platforms to reach out to for support. Know that in this industry you are never alone!”

Mr Rawnsley agreed. “Small business owners sometimes feel isolated,” he said. “Being part of an association like ARAMA provides support and access to professional counselling, promoting clearer thinking and diff erent reactions to challenging situations.”

To address bullying and harassment in the strata industry. ARAMA collaborates with the Queensland Government and other stakeholders to establish “Psychologically Safe Communities”. Mr Rawnsley acknowledges that this initiative may not eradicate bullying entirely, but it aims to foster harmonious communities. He said: “Living and working in harmony is in the best

interests of the scheme and therefore in the best interests of the MLR industry.

“It doesn’t matter how the actions are defined – the fact is that there’s too much unpleasantness and too much aggression shown towards managers when they are just trying to do their job.

“There are no real consequences for unit owners who might be guilty of this but there are consequences for onsite managers depending on how they react. Often they find themselves on the back foot trying to defend themselves.”

Resort News has received reports from stressed-out managers detailing various types of face-to-face and online bullying behaviour perpetrated by committee members or unit owners. These include namecalling, spreading rumours, and making serious accusations of improper business dealings. Additionally, there have been instances where threats of violence have been made. Such conduct not only creates a hostile environment, but it also poses significant challenges

Bullying and harassment are top concerns in strata

for managers striving to fulfil their responsibilities and importantly it’s detrimental to their livelihood — a significant business investment.

Leading property lawyer Frank Higginson of Hynes Legal said that if a resident manager operates as a company, they are entitled to protection under the Fair Work Act. However, the challenge lies in the Act’s failure to provide for damages; its primary aim is to prevent bullying, albeit through a potentially protracted process.

“A manager is far better off addressing the underlying issues and resolving them,” Mr Higginson said. “However, this proves challenging in strata sett ings, where individuals often hold subjective viewpoints.

“In such situations, I tell committee members to treat the manager as they would an employee, despite not being legally bound as such,” he continued.

“Considering some of the behaviour witnessed in strata, if replicated in a traditional office environment, it would likely be deemed appalling and could result in termination.”

Mr Rawnsley explained that ARAMA assisted in legally classifying schemes as workplaces. “Years ago, we supported a member who felt bullied and harassed, we helped facilitate legal defence for them. This member successfully demonstrated workplace harassment. If a resident manager faces

harassment in their workplace, it falls under the Workplace Health and Safety Act, with significant ramifications for bullying and harassment.”

Shelter is a basic human right and any perceived threat can be emotionally triggering. This is what is so peculiar about the MLR industry and according to Mr Rawnsley, “it’s why there is often so much more antagonism towards resident managers.”

ARAMA off ers a number of support services which can define bullying and harassment and give managers some strategies to cope.

“We run a half-day workshop on relationship management, specifically in strata and specifically focused on the relationship between the management rights operator and the body corporate committee. That’s called ARRM – the ARAMA Relationship Revival Masterclass. People learn what bullying and harassment really is and how the way they react to a situation is often more important than the situation itself.

“If a manager retaliates it can escalate a situation that isn’t bullying and harassment to start with, but which then might turn into that.

“We also offer A-MAP – ARAMA Member Assistance Program – a free counselling service for ARAMA members.”

ARAMA managers are not on their own and are well supported.

A-MAP is a program where they can ring up and receive professional counselling. It’s free, they can undertake their counselling face-to-face, via Zoom or over the phone.

“We’ve had about 40 members go through that program and it helps them think more clearly and react differently. While all those professional counsellors don’t know anything about strata, they know everything about people and human nature.”

However, Mr Rawnsley acknowledges that while bullying and harassment situations can be very confronting for the resident manager sometimes, the problem is not the other person.

“Sometimes the man in the mirror has a lot to answer for and that can be a bitter pill to swallow for some managers,” he said.

“Sometimes, if managers reacted differently to criticism, didn’t take it so personally, and treated it all as a part of business, a lot of these situations would be nipped in the bud.”

Chris Irons, formerly Queensland’s Commissioner

for Body Corporate and Community Management, and current director of Strata Solve, echoed this sentiment.

“Based on the calls I receive, bullying and harassment are top concerns in strata. I advise managers to introspect first.

“It’s a hard thing to ask someone to consider if they did anything to contribute to the situation and what they can do to rectify it.

“Often, what’s perceived as bullying is a disagreement spiralling out of control due to negative reactions. Disputes frequently evolve from one point to another.”

Both Mr Rawnsley and Mr Irons emphasise the importance of self-reflection and constructive conflict resolution in managing strata disputes.

While bullying should not be tolerated in any situation,

Frank Higginson asserts that bullying is not the same as holding individuals accountable for their work performance.

“Often, these disputes arise due to vague agreements,”

Mr Higginson said. “For instance, a manager might be tasked with maintaining the gardens ‘to a satisfactory standard’ – but satisfactory to who? The language in the agreement is frequently subject to interpretation, adding complexity to the situation.

“Managers may acquire businesses without a full grasp of what they’re purchasing, while committee members volunteer

for roles in bodies corporate without comprehensive knowledge of the legal arrangements they’re bound by. Consequently, there’s a perpetual cycle with new managers and committee members, resulting in a rinse-and-repeat scenario.”

Mr Higginson advocates for dialogue as the most effective approach to resolving strata disputes. “It’s crucial to address issues promptly, the moment a problem is perceived,” he said.

“Identifying differences in perspectives and engaging in constructive dialogue is key. Failure to do so can lead to escalation over time, with blameshifting, point scoring, and ultimately legal entanglements. Early, amicable intervention is preferable, avoiding the trap of assuming absolute right or wrong, as solutions typically lie somewhere in between.”

Chris de Closey, of Switch Hotel Solutions, has observed instances where committee members exert their power without consideration for the substantial investments made by resident managers in their businesses.

“If a manager perceives they are being bullied,” he says, “it’s crucial to thoroughly document everything, ensuring comprehensive information about the entire event timeline is available. This eliminates concerns regarding conflicting accounts. Documentation must remain strictly factual, devoid of emotive language or personal feelings.

“It should aim for impartiality, merely stating the events that transpired,” he added.

“If the bullying originates from a body corporate member, addressing the issue can be challenging and the best option is to seek external advice on how to approach this individual case. In cases not involving a body corporate member, engaging the body corporate to address the owner directly is an option. If the behaviour persists, legal action may be necessary, potentially resulting in cease-and-desist orders.”

Industry leader Mike O’Farrell established MLR Services to provide mediation services aimed at facilitating reasonable dispute resolutions for residents, committees, building managers, and body corporates.

He defines workplace bullying as “repeated and unreasonable behaviour directed towards a worker or group of workers, posing a risk to health and safety.” According to Mr O’Farrell, “Unreasonable behaviour” refers to actions that a reasonable person, considering the circumstances, would deem unreasonable, including victimisation, humiliation, intimidation, or threats.

From his experience, he notes most committee members are unaware of, and often do not review, their code of conduct. To address bullying and harassment, managers have options:

1. Ignore it.

2. Respond with factual evidence.

3. Collaborate with ARAMA to devise strategies for combating it.

4. Enlist lawyers to draft a cease-and-desist letter.

“The most valuable advice I can give,” Mr O’Farrell said, “is to ensure that managers fulfil their duties and report as outlined in their agreements. If they genuinely believe they are being bullied, they should promptly seek guidance from an industry specialist on how to address the situation.

“Fortunately, many industry specialists are willing to assist.”

E-scooter apartment inferno reignites safety concerns

By Mandy Clarke, Editor

On Saturday, April 20, twelve fire crews battled an inferno in an apartment in New Farm, one of Brisbane’s most popular inner-city residential suburbs. It left two people in critical condition and fire investigators say the cause has been traced back to a charging e-scooter.

The incident added to growing concerns about managing the charging of lithium-ion batteries, in accommodation buildings.

Updating ABC Brisbane on the New Farm unit fire, a spokesperson from Queensland Fire and Emergency Service (QFES) revealed that a man and a woman sustained severe burns and were placed in induced comas as a result of the blaze. Additionally, a man in his fifties was hospitalised for smoke inhalation. Two others affected by smoke were also treated at the scene but did not require further medical attention.

Initial findings from QFES indicate that the fire was triggered by an explosion from an overheated e-scooter charger. The ferocity of the fire was exacerbated by clutter within the compact unit, leading to what was described as a “perfect storm” of conditions for a fire outbreak.

The massive surge in popularity of devices such as e-bikes and e-scooters presents a significant challenge in strata, for management rights operators and bodies corporate. This is an issue that is of particular concern to industry professionals such as lawyer, Frank Higginson, Partner at Hynes Legal, who specialises in body corporate law and management rights.

In March, Mr Higginson penned a column for Resort News, “Questions flare over e-battery

safety”. He warned of the escalating risks associated with faulty chargers for lithiumion battery-powered devices and stated that the potential for overheating batteries to ignite, poses a serious threat to property and lives.

Importantly, he emphasised the inevitability of such incidents as the prevalence of rechargeable devices continues to rise.

The New Farm unit fire follows a similar incident in a Bondi apartment, where an e-bike battery overheated and exploded, prompting the evacuation of the unit’s occupants, thankfully on this occasion, no one was hurt.

Lithium-ion battery fires are notoriously difficult to extinguish and can emit toxic fumes, posing significant challenges to emergency responders. Mr Higginson asked: “When every e-bike battery is a potential firebomb, what can be done to prevent a possibly tragic event?”

Facilities management consultant, Lynda Kypriadakis, Managing Director of Diverse FMX agreed and told us: “EV batteries are literally a ticking

time-bomb. It’s only a matter of time before they degrade sufficiently to be unsafe during recharging and trigger an overheating or explosion event.

“The risk of a combustion or liquid fuel engine fire is similar to the risk of an EV battery fire, but you don’t store your combustion engine vehicle inside your unit, which is really why the EV battery issue is such a risk to occupant safety in strata properties.”

She warned: “The characteristics of EV battery fires are very different from petrol fires. They are more toxic and much harder to manage from a fire and rescue perspective.”

The QFES has issued guidance on safe charging practices to users, advising individuals to charge e-bikes and e-scooters in wellventilated areas away from living spaces and direct heat sources. They also stress the importance of using recommended chargers and following manufacturer specifications to minimise the risk of fire.

However, concerns surrounding safe charging extend beyond individual residents and

units. Managing the issue is very problematic for those living and working in strata and presents challenges for both bodies corporate and onsite resident managers.

Questions arise regarding the enforcement of charging regulations, liability in the event of a fire, and the integration of EV charging infrastructure in existing buildings.

As the National Construction Code mandates EV charging access for vehicles in newly constructed strata buildings, retrofitting older structures presents logistical challenges. The prospect of centralised charging facilities raises additional safety concerns, highlighting the need for comprehensive risk management strategies.

While technological advancements offer convenience and efficiency, they also introduce new complexities and risks. As stakeholders grapple with these challenges, the imperative remains to prioritise safety and implement proactive measures to mitigate potential hazards.

What’s fair in fees & charges?

By Trevor Rawnsley, CEO, ARAMA

One of the most pressing issues in the Management and Letting Rights (MLR) industry concerns the fees caretaking service providers should charge. Right now, the subject of fees and charges in strata is controversial, with one of Australia’s most high-profile strata management firms accused of overcharging and taking kickbacks from contractors and suppliers.

ARAMA members, however, operate under a contractor service agreement and code of conduct that includes full disclosure of fees and charges agreed to by the unit owner in advance. There is full transparency, and those managers must demonstrate good value for money.

ARAMA fully supports strata managers who, like us, deliver service which is in the best interests of the community title scheme. Strata and body corporate management companies play an important part in the “triangle of strata management,” where the resident manager, strata manager, and committee work collaboratively in the best interests of the scheme.

Many resident managers are uncertain, about what is a fair payment for work not covered by their agreements

However, it seems that unit owners are not receiving value for money from some within the strata management field. It’s a diff erent story for our members who are resident managers and also unit owners and therefore have a vested interest in ensuring schemes are managed efficiently.

Many resident managers, though, are uncertain, about what is a fair payment for work not covered by their agreements. ARAMA fields many inquiries on the subject, and we provide some answers with our very comprehensive bi-annual Costs and Charges (C&C) Survey which is freely available to members on the ARAMA website. It’s one of a range of tools ARAMA provides to answer the questions and problems resident managers regularly face.

The C&C Survey provides valuable comparative data for resident managers and other ARAMA members, and covers the major costs and charges that generate business profi tability. There is also an accompanying webinar on our website with the same name. This goes into the specifics of these charges as well.

The C&C Survey is a valuable resource that explains what resident managers in the role of an onsite lett ing agent should charge and what is an acceptable hourly rate for various work not covered in the MLR agreement. The survey is updated every two years and published every even year — an update is due in the second half of 2024. If members need additional help beyond this, then ARAMA

can recommend a specialist accounting firm to assist.

A caretaking service provider payment is provided by the body corporate under their caretaking service agreement. Generally speaking, there will be a pre-negotiated annual remuneration amount paid in monthly instalments with reference to a pre-negotiated hourly rate for work performed that is not covered by the annual remuneration.

When it comes to fees and charges resident managers are transparent and clean; what they are charging is what is included in the contract that both the manager and the body corporate agree to, in advance. Because of the nature of our business, the rule for fees and charges is that we should only charge what has been agreed

in advance and in the absence of an agreed rate we should obtain approval (preferably in writing) before commencing the additional work.

The caretaking service agreement should allow for an annual remuneration amount plus an hourly rate for work performed outside of the agreement. Concerning the work performed as an onsite letting agent, the schedule of fees and charges should be based on the ARAMA C&C Survey and be transparent and specific. A bundled option is gaining traction in the industry, and while bundling is a good idea to avoid the individual ‘shopping docket’ result with monthly expenses it does need to itemise the inclusions and the exclusions.

As a caretaking services contractor, when outside work is completed by specialist trades, for instance, the original invoices will need to be authorised and forwarded for payments by the body corporate. Unless your caretaking agreement says otherwise you should not charge an additional service fee for arranging the work unless you receive prior authorisation (preferably in writing).

As an onsite letting agent, when outside work is completed by specialist trades, for instance, the schedule of fees and charges may stipulate either a fixed fee or a percentage as a service fee which can be applied to the original invoice. That original invoice is usually paid by the onsite letting agent directly who then charges the original invoice amount plus the pre-approved service fee to the unit owner at the end of each month, usually by deduction from the gross letting income. A common practice within our industry is that for any work an onsite letting agent organises with an outside trade on behalf of a lot owner, a 10 percent fee is charged for service and administrative duties on top of what the tradesman charges. This is not work for the body corporate (because that is covered by the caretaking salary) but separate work for a lot owner, who may not live nearby and needs the resident manager to do the work on their behalf.

For instance, a resident manager might have to organise a plumber inside a unit and that manager must then meet the plumber, make sure that the unit is vacant, deal with the guest or tenant who might have been there, do all that paperwork, receive the invoice, and pay the invoice. There must be compensation for all this extra work. As long as the resident manager discloses that fee and as long as they can produce the original invoice, then that’s quite fair and appropriate.

Often there can be a lot of work involved in organising and paying tradies and it saves an owner having to travel (perhaps interstate or even overseas) to arrange it themselves. It’s usually a very small fee compared with the costs an owner would incur for having to arrange it themselves.

There is a heap of work that resident managers do for no fee, even though they may be entitled to charge. Often a percentage charge, which might only equate to a $10 or $20 fee, and for organising, meeting, supervising and paying trades this doesn’t even get close to covering an hourly rate for that service beyond the agreed duties.

The manager will generally say, “well if you want me to organise the work it’s the cost plus 10 percent for my time. But if you, as the owner, want to organise it then that’s your right so go right ahead. You can come and talk to the tenant or guest, let the tradesman in, stay while they do the work, and then organise payment. Or we can do it but it’s not part of our duties. It can be if we strike an agreed payment rate in advance”.

Generally, it is wrong for a resident manager to charge a body corporate 10 percent for arranging work on behalf of it because that is a duty which is often covered in the caretaking agreement. In this example, the caretaking service provider is already paid by the body corporate to arrange that work. What a resident manager might charge the body corporate for (if it’s on the schedule of fees and charges) is, for instance, a travelling allowance to go out and get tools or materials on behalf of the body corporate.

There may also be things which are extraneous and not included in the agreement. These are usually charged as an hourly rate, often it’s $45 per hour or more. These benchmark rates can be found in the C&C Survey. We advise members to get approval in writing first before asking a fee for extra work so that there can be no arguments, and no one can claim amnesia.

When I was a resident manager I had a unit owner ring me from Miami, USA. He wanted me to find new curtains, a new lounge, and a dining room suite for his apartment. I told him I could go down to a store where they had deals on sofas, and that I could maybe find a dining table, and I could get someone in to do new curtains. I said I’d organise all that for him and that it would cost him the invoice cost plus my service fee of 10 percent. He thought this sounded like a fantastic deal.

So, I went to the shop and negotiated a discount for the furniture. I paid it direct, arranged for delivery, took the old furniture to the tip. When it arrived I put the new

furniture in the apartment, then I organised a person to measure and quote for the curtains.

I added my service fee to the original invoices and deducted it from the rent, then invoiced for the 10 percent. On a $3000 job, I made $300. The owner started to complain about my service fee, but he quickly agreed that it represented great value when he understood that it took me half a day of running around to save him time and money. It worked out a lot cheaper than if he flew home from Miami to do it himself.

Resident managers do well when they foster great relationships with their committees, owners and residents and act in their best interests. It should work both ways. Resident managers deserve to be compensated for their time and effort, doing things not covered in their agreements, and should be charging extra for providing these extra services.

Managers do a lot of running around. As long as the fees and charges are transparent and communicated clearly and agreed to in advance no one should be taken for a ride.

Can’t wait for an AGM? How to call an EGM in NSW

By Ben Ashworth, Senior Associate, Small Myers Hughes Lawyers

Need extra term under your Building Management Agreement in NSW but your Owners Corporation AGM is still a long way off ? All is not lost; you just need to convene an EGM to get your motion passed.

Different ways to convene an EGM

You may request the owners corporation to convene a general meeting (an EGM) at any time.

There are three ways that an EGM may be convened, and they are set out in section 19 of the Strata Schemes Management Act 2015:

1. The first and most simple approach is to request the secretary of the owners corporation to call the meeting. The secretary has the authority to call a meeting without approval from any other members of the strata committee.

2. If the secretary is not a person you communicate well with or is hesitant to use their authority to call the EGM, the second way an EGM may be convened is by asking the strata committee to call the meeting. This would require a majority decision of the strata committee.

3. Finally, the third way that you may convene an EGM is by providing a “qualified request” to the owners corporation – for instance, by way of a requisition, requiring the calling of the EGM.

Generally, if you find yourself dealing with an intransient or hostile strata committee, requisitioning an EGM will be the only avenue you have left to have your motion voted on promptly, other than waiting for the next AGM.

A “qualified request” is a request made to the owners corporation by one or more owners that together equal 25 percent or

more of the total unit entitlement for the strata scheme. For example, if there are 10 owners in the strata scheme and all owners have the same unit entitlement, then three owners together can request to convene an EGM. If that request is received, the owners corporation must call the EGM within 14 days. There is no specific rule about how a “qualified request” must be made in a practical sense. For most owners corporations, motions and requests are submitted by email to the strata manager. Your strata manager might issue owners with a form to make the process easier and more consistent, but whether you use such a form or not, is not mandatory. If a group of owners are seeking to call a meeting together, they could co-sign a single request sent to the strata manager, or each send their own request asking for the same thing.

If you are trying to call an EGM and need the assistance of other owners to do that, you might want to provide the other owners with a premade request that includes the wording for a letter or an email. This way, if you and all the other owners use the same wording, you can be confident that the request being made is consistent and should be treated collectively as a “qualified request”.

Regardless of the approach you take, when asking the owners corporation to call an EGM it is worth considering the cost to the owners corporation when an EGM is held and whether you are willing to bear that cost for the owners corporation. If you are seeking the owners corporation’s approval on a motion that benefits you, it is reasonable to assume that the owners in your scheme will be much more agreeable if they don’t have to pay anything to host the meeting.

Once the meeting has been called, I recommend that you make individual contact with as many owners as possible to spell out to them the reasons for your request and the benefits to them as owners in the scheme for you, their building manager, having the certainty of ongoing tenure that your financier requires.

For advice and assistance on both the legal and practical issues you might face and strategies you can take when requisitioning an EGM, you should speak to an experienced strata lawyer.

Liability limited by a scheme approved under Professional Standards Legislation.

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

BCCMOLA amendments overview

while also protecting the rights of lot owners.

Prior to the amendments, a body corporate could only be terminated:

• by court order; or

• by a resolution without dissent.

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

Changes to

the Body Corporate and Community Management Act (BCCM Act) relating to towing, pets, smoking and termination of community title schemes have many Queenslanders talking.

The changes were passed by Parliament late last year and commenced on May 1, 2024. They update the laws governing how bodies corporate are required to operate and follow a study of property laws conducted by Queensland University of Technology (QUT).

A Community Titles Legislation Working Group was formed to frame changes to the BCCM Act based on QUT’s recommendations.

In this article we look at the key amendments.

Termination of community titles schemes

Since the October 2022 Housing Summit, the Queensland Government has been working on amendments to the BCCM Act to make it easier to sell and redevelop ageing or rundown schemes in Queensland,

The amendments now allow for basic community titles schemes (schemes that are not within a layered arrangement) to agree that there are economic reasons to terminate the scheme.

To protect the interest of lot owners, there are multiple steps the body corporate must take to ensure the decision is a viable solution, including the completion of expert reports, plans and the holding of several general meetings.

Finally, if the scheme agrees, by majority resolution, that there are economic reasons to terminate, the body corporate will be able to consider a termination resolution. A termination resolution requires the support of 75 percent of all lot owners to be successful.

Some people have expressed concerns about developers buying a majority of the lots and controlling decisions about maintenance leading to the purposeful deterioration of schemes. If an owner finds themselves in this situation, where a motion for a body corporate to undertake maintenance to fulfil the legal obligations under the Act fails, a dispute application can be lodged with our office.

Smoking

Amendments to the Act in relation to smoking align with the Queensland Government’s smoking laws, which seek to improve health by reducing exposure to smoking products.

Smoke drift within community titles schemes has been a longstanding contentious issue.

With the commencement of the amendments, bodies corporate can make and enforce by-laws prohibiting or restricting smoking on common property or in outdoor areas such as balconies and exclusive-use courtyard areas.

Section 167 of the Act, which provides for nuisances within a body corporate, will also receive an update to include that an occupier who regularly exposes a person in another unit, or on common property, to second-hand smoke may be a nuisance, hazard or an unreasonable interference.

Pets

In relation to pets, amendments prevent bodies corporate from creating by-laws that prohibit the keeping or bringing of an animal on to the lot or common property. The by-laws must not restrict the size, type or number of pets allowed.

A body corporate may still include a by-law that an occupier is required to seek approval before bringing an animal onto scheme land and apply reasonable conditions to any approvals. The amendments also provide a clear list of the limited reasons why a body corporate can refuse a request to keep an animal.

To complement the amendments to the BCCM Act, amendments have also been made to the regulations in relation to pet approvals. A committee must decide on a request for an animal within 21 days of receiving the request. If the person making the request does not receive a response from the committee within 21 days the animal is deemed to have been

approved. More information about animal bylaws can be found on our website.

Towing

With the number of cars per household on the rise and limited spots available within schemes, incorrect parking has become a highly contentious and controversial matter.

Reports of cars being parked incorrectly in visitors’ spots, in front of emergency exits or obstructing common property are becoming more prevalent. The amendments provide that a body corporate no longer needs to follow the by-law enforcement process if an occupier is parked in contravention of the scheme’s by-laws.

It has also clarified that there is nothing within the Body Corporate and Community Management Act that prevents a body corporate from towing a motor vehicle from common property.

However, it should be noted that bodies corporate may wish to seek appropriate legal advice to understand what other laws may apply before removing vehicles within their scheme.

The Queensland Government will continue working with the Community Titles Legislation Working Group to consider further reforms to the BCCM Act in the future, such as management rights, bullying, and harassment.

This article is a summary of some of the amendments to the Body Corporate and Community Management Act 1997. Please see our website for informative webpages, factsheets and other resources in relation to how the amendments may affect you. This article is general information only and not a substitute for legal advice.

Work hard & keep learning: Grace’s tips for MLR success

By Grantlee Kieza, Industry Reporter

Grace Pang came to Queensland from China to study accountancy and is now crunching the numbers at her three MLR businesses.

The properties – two in Brisbane and the other in the mining town of Clermont in Central Queensland – have a combined tally of 139 units.

She says management rights was an entirely new concept for her when she arrived in Australia but she quickly realised that it was a unique business with a guaranteed income from the caretaking provision and a second income from letting commissions.

After completing her studies at Central Queensland University, Grace worked as an accountant for Ray White’s commercial division and learned about management rights businesses and trust accounts.

Grace Pang

“I could see that management rights businesses were a good investment and while working at Ray White about 10 years ago I started to think that maybe I should start investing in my own complex,” said Grace, a working mother with a seven-year-old daughter.

“So, I bought the management rights for a townhouse property at Salisbury in southern Brisbane at the end of 2016. It’s called Orange Grove and after I gained some experience with that, I bought a second property called Havenview.”

The Havenview complex is a boutique development consisting of 17 luxurious four-bedroom townhouses which were designed with comfort and style in mind.

The townhouses offer an openplan living and dining area on the lower level, complemented by a spacious kitchen with stainless steel appliances and ample bench and cupboard space. The undercover alfresco area overlooking the courtyard is the ideal place to dine and entertain with friends.

All four well-appointed bedrooms are situated on the upper level with built-in robes, study nooks and ceiling fans. Two of the bedrooms are ensuite and the other two bedrooms are serviced by a large modern bathroom.

Together Grace’s two complexes have a combined tally of 58 units.

Grace learned on the job at the Orange Grove property and there were tough lessons.

“When I took over the first property at Salisbury it was very different from what I expected,” she said. “It was certainly a lot harder.

“Anyone who thinks you can buy management rights and then play golf for the rest of the time has got it very wrong. It’s totally different from that.

“It is very hard work but once you get your systems in place and you get the support of the owners

and the committee it gets easier. Management rights is a very good business with good rewards, but you have to be prepared to work hard and you have to be able to get on with people.”

She said: “I was a first timer in management rights and some of the maintenance was not up to standard. At first, I had a tough time making the committee understand what building maintenance and repairs were needed. I had to communicate that all the work was necessary and that I could make it work.

“Thankfully, I met Mike O’Farrell who helped me through his business MLR Services, and it all worked out very well.”

Mr O’Farrell, a life member of ARAMA (the Australian Resident Accommodation Managers Association) is one of the most experienced MLR operators in the business, with properties such as the Riverside Hotel in South Brisbane.

His MLR Services business is a specialised body corporate conflict mediator. It guides stakeholders through the complexities of strata and building management to achieve harmonious outcomes. It also helps newcomers to the industry navigate the sector by demystifying the rights and responsibilities of owners, residents, and body corporates, and it works constructively with all parties to resolve common issues through early dispute resolution and guidance with mediation and resolution plans.

Grace was so impressed by the help from Mike’s business that in 2020 they formed a partnership to buy the management rights for the Clermont Apartments, situated in one of the best-known mining areas in Queensland.

Located between the Bowen and Galilee Basins, Clermont offers tremendous opportunities in agriculture, mining, tourism, and diverse new enterprises. The Clermont Apartments feature 81 townhouses.

Grace said she and Mike saw the opportunity to invest in Clermont, one of northern Australia’s most historic towns because it provided a dynamic, vibrant and wellconnected community lifestyle.

Grace said Clermont was the region’s most outstanding accommodation precinct and the town offered jobs across many sectors.

Her two-storey, three-bedroom, two-bathroom air-conditioned duplex units have been architecturally designed to be both practical and luxurious. They are built with an open-plan design and come with two-car accommodation and a study, to provide maximum comfort and space for individuals or families.

They are located ideally close to the centre of Clermont, and Grace said they set a new standard for homes in the Bowen Basin region.

The complex has an onsite manager. The units have spacious living areas inside and out, stainless steel kitchen appliances and dishwasher, three large bedrooms including a large master bedroom, a main bathroom that comes equipped with a large

Management rights was an

entirely

new concept for her when she arrived in Australia

bathtub, air conditioning, with fans to living areas and bedrooms, a separate laundry and extra toilet downstairs, and an enclosed yard within tranquil surroundings.

The leisure facilities include a large common pool and barbecue area.

Having acquired three large MLR businesses in the last eight years, Grace says she sees a strong future for the industry and expects it to grow year on year.

She says management rights complexes are an important way to end housing shortages in Queensland and resident managers are the best way to ensure a complex is well run for all residents and owners.

She says that anyone wanting

to invest in management rights and fit into the industry must be a keen worker.

“They need to show the committee that they are prepared to put in the hard work for the owners and residents,” she said. “They must show that they are willing to contribute to the property themselves for the good of everyone.

“They must also have a future study plan and be keen to learn. In management rights, you never stop learning, and you are always figuring out ways to do things better for the benefit of the complex.”

With that in mind, she has partnered with Mike O’Farrell

and Simon Ng to form a business called SGM Consultants which advises people on how to make their management rights businesses better.

“Everyone in management rights can benefit from extra training and advice,” Grace said.

“Our consultancy covers induction training and business advice. We help people from the beginning — when they search for a property right until the time they settle and beyond. We can give them valuable advice on why a property will be a good investment and why it might not be. We can also help managers who have already established themselves in an MLR business if there is any sort of dispute at the complex. They might have trouble with their committee or with the owners over all different sorts of issues and we step in and help them to find the solutions.

“Another area in which we can help people is making sure the committee approves their top-ups which is so important for resident managers.

“We can show them how to ask for the top-up and how to show that their work has earned it.”

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Isabella Mansell

Damian Quinn

When to call in the experts and who pays?

By Frank Higginson, Hynes Legal

One of the greatest sources of tension between a resident manager and a body corporate is where there is a gap between expectations and obligations.

Any itemisation of duties is only as good as the draft sperson who wrote it

Every management rights agreement has a description of duties that sets out the tasks a manager must complete as part of their contract. That might be a formal schedule with items line by line, or it might be a general description of what should be done, such as ‘mow the lawn as required’.

But any itemisation of duties is only as good as the draftsperson who wrote it.

The schedule should clearly set out the duties that a manager is obliged to undertake, and ideally set limits where the obligation ends. This is particularly the case where a level of expertise is required to complete a task.

For example, if a manager is asked to trim fronds from a tall palm tree and an extension ladder is required to do the job, is that part of an overall obligation to maintain the gardens, or does it fall outside the schedule of duties?

In other words, what does the caretaking component of the management rights agreement require the resident manager to do, and what does the management rights agreement say about using skilled tradespeople?

Managers must ensure they have a clear understanding of what is required under a schedule of duties, and if there is any doubt, raise it immediately with the body corporate.

If the manager is uncertain about the extent of their obligations, it is almost guaranteed the body corporate will be just as uncertain, if not more so.

The key is to never surprise the body corporate with a fee for an outside contractor where the committee expects the task to be performed as part of a manager’s agreed duties.

Manage expectations and manage your duties

Caretaking agreements can include a clause that outlines that any duties requiring a skilled trade are to be arranged by the manager and paid for by the body corporate.

From a management rights perspective, if you’re not going to do the duty yourself and you’re going to engage someone else to do it, it’s important to understand who is paying for that work.

Is that you, because you’re choosing not to do the job and you pay someone else to do it?

Or is it going to be the body corporate because it’s a job that you only have to manage on behalf of the committee, because it’s not within the scope of your duties?

Disputes over these issues can flare quite easily. They can also affect the sale of your business; if you include income that a buyer’s lawyer doesn’t think should be included because of the duties, then you aren’t going to get a multiplier on that.

And expectations can accumulate over time. A manager may get into the habit of charging a particular task to the body corporate as an extra expense – then two years later someone on the committee points to the Schedule of Duties and argues the task is part of the manager’s agreement.

Then you have two years’ worth of expenses to argue over.

Managers should ask themselves the question: If the body corporate is paying for this, why are they paying for this? Which part of the agreement says they should?

And if there is any doubt, you are better off having a conversation with the body corporate about it rather than seeking permission later.

Selling your small business: The tax concessions

By Jonathan Hanaghan, Principal, Count Gold Coast

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

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

On selling a business, small and medium-sized business owners may be able to access one or

Business owners may be able to access one or more of six tax breaks to reduce or eliminate the taxable capital gain

more of six tax breaks to reduce or eliminate the taxable capital gain that otherwise arises. Outlined below is a summary of the concessions and some of the important conditions that must be met to access them.

Pre or post CGT business?

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

The general 50 percent CGT discount

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

Although a company selling its business cannot access this 50

percent discount, an individual shareholder selling shares in the company may be able to.

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

The CGT Small Business Concessions (SBC)

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

The four CGT Small Business Concessions are:

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

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

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

contribution. This payment does not attract the 15 percent superannuation fund “contributions tax” but has a lifetime limit of $500,000. If the recipient of the remaining capital gain is over 55 when their tax return needs to be lodged, there is no requirement to cash flow any amount into superannuation to get this exemption. Though strict timing conditions apply, and care must be applied.

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

Summary

The interaction of the small business CGT concessions, other than the 15-year exemption, means that a small business owner could make a capital gain of $2 million on the sale of the business and pay no tax in the year the gain is made. This is achieved by claiming the 50 percent general discount, the 50 percent active asset discount and the retirement exemption of $500,000. It may also be possible to access additional rollover deferrals.

While these concessions offer generous access to opportunities to eliminate capital gains on the sale of small and mediumsized businesses, correct structuring, especially on establishment, remains critical.

Business owners should always consult with their professional accountant before signing any purchase contract as getting it wrong initially can be infinitely more expensive than your initial consultation.

Part One

Calling out the cost

There’s an old saying, with various versions, that goes something like this: “if you take care of the top line, the bottom line will take care of itself.” The gist is that focusing on a business’ sales revenue will automatically ensure net profit. In essence, it suggests not worrying about the costs between the top and bottom lines.

While such sayings contain elements of truth, they often overlook critical aspects. In this case, what’s often missed is the level of costs involved in generating that sales revenue. While I appreciate the saying, I’m also cautious about overlooking or glossing over operating costs, which could potentially lead to unexpected net profit outcomes.

Business owners, operators, and managers often get absorbed in the day-to-day operations of their businesses, leaving marketing, cost minimisation, and other important matters sidelined under the belief that they’re too preoccupied with focusing on the top line.

Typically, it’s only during tough times that they pause to consider working on the business rather than just in it. One effective way to work on the business is to concentrate

on individual operational costs –what it costs to run the business and get products on the shelves. For accommodation businesses, this involves understanding the costs associated with selling a room for a night.

When business is good, challenges usually revolve around stocking shelves to meet demand, with little motivation to scrutinise operating expenses. Costs deemed high or excessive are often dismissed since sales and income are good. It’s only when revenue declines that the costs suddenly become an issue. The profit that was there previously has been eaten away. This shift usually prompts a closer examination of each expense item in the profit and loss statement, leading to a thorough review of the general ledger – a potentially eye-opening experience!

Here are some expenses within accommodation businesses that can be drilled down on to improve profitability:

• Commissions: Consider cutting unnecessary and excessive costs incurred through commissions. Look at how guests found the business and ensure they can easily book directly via the business’ own website.

• Electricity and gas: Minimise heavy expenditures by exploring options such as solar power or wholesale providers to reduce costs. One or the other may be more suitable, depending on the situation. With a bit of research, there can be substantial savings available. Like insurance, if left without intervention, this is a cost that can get out of control.

• Interest on finance: Generally one of the major expenses of most businesses. It is never a set-and-forget situation, which ends up often being the case. The interest rates available for business and commercial lending have increased. Contacting the lender to negotiate a better rate may be possible or refinancing with another lender may result in a dramatic reduction in the cost of interest to a business. As with most things, it pays to discuss and shop around.

• Cost of sales (stock): Review suppliers to source stock at cheaper prices without compromising quality and implement better systems to control wastage. Wastage may

be better controlled by upgrading or amending systems within the kitchen or laundry areas.

• Advertising: A good place to start is to review excessive and outdated advertising and marketing that may have been in place for years. Focusing on “bang for one’s buck” is the key here. Looking at what has been working and what has not, is a good way to cut excess spending on obsolete items.

• Subscriptions/Pay TV: This can be a very high expense for businesses and in many cases excessive for what a small operation may need. There are many other options available if the package offered does not quite fit or if there is a take-it-or-leave-it attitude. Streaming services are growing rapidly in numbers, popularity and in what they offer. Again, it all comes down to having an option or a more costeffective alternative.

These are just a few areas to consider for cost minimisation in accommodation businesses. There is much more to consider, so we will continue looking further at cost minimisation in next month’s issue.

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

Let’s get negative

By Mike Phipps, Mike Phipps Finance

I was amused and horrified in equal measure recently. No, I hadn’t stumbled across a friend watching Married at First Sight, albeit my rare glimpses of this “entertainment” when I do witness such an event have left me somewhat appalled.

The so-called MAFS phenomenon amazes me. I can only tolerate it in very small doses and only while heavily affected by gardening. My god! The premise seems immediately simple and confronting. Gather together a group of emotionally damaged and dysfunctional people, add a few mental health issues, stir in some misappropriation of real feelings and launch.

What I found most disturbing was not the show. It was that apparently nice and moral people find watching this stuff entertaining. Like... wow. We now consider entertainment to include a contrived situation where people get their hearts broken and we get to watch. I’m not convinced this is healthy although the ratings suggest I’m in the minority.

No, my recent amusement and horror were more real-world related, albeit delivered by people who might fit the description above. You know, damaged, dysfunctional… I’m referring to our politicians of course! The recent announcement of the Future Made in Australia Act is just the latest in a series of breathtakingly

naïve strategies that seem to defy basic common sense. For some time now I’ve been amused by what used to be fringe agendas driven mostly by academics and associated zealots with zero real-world business experience.

A case in point was the recent exchange between Woolworths CEO Brad Banducci and Greens Senator Nick McKim. Regrettably, Mr McKim appears to have never read the old saying, “Better to be thought a fool than to open one’s mouth and remove all doubt”. Sadly, some pretty crazy stuff is now getting a mainstream run and I’m sure this will end badly. Kinda like those MAFS romances.

In the case of the Future Made strategy, a country with some of the highest energy costs on earth and spiralling wage growth is going to combine this with monumental inefficiency, union interference, cultural oversight, environmental impact studies and red tape, and become an economic and manufacturing powerhouse. Miraculously, we will achieve this result with no nuclear power plants, by picking winners and losers and backing the plans with taxpayer funded loans and grants. What could possibly go wrong?

It appears no lessons have been learnt from the spectacular failure of the heavily subsidised

car manufacturing industry, although we still have a luxury car import tax to protect an industry that no longer exists. I fear the current economic madness will find fertile ground much closer to home with the 20 percent of Australian taxpayers who have one or more investment properties. Of these, about a million are negatively geared.

A disturbing number of politicians want to ban negative gearing while demonstrating little understanding of what the term actually means. It means that if you lose money on your investment, you can claim the loss as a tax deduction. That is, if loan interest rates, insurance, maintenance costs and related expenses exceed your gross rental income, you can deduct the loss from your taxable income.

Of course, you are still losing real money if you spend $1 and your top marginal tax rate is 30c. All so-called negative gearing does is allow the taxpayer to deduct the costs of holding an income producing asset. Of itself, negative gearing (losing money) doesn’t seem that attractive, so you need capital growth in the asset for the strategy to work. Basically, the investment property value needs to grow by more than the tax losses it accumulates.

And by more, I mean a lot more,

because waiting patiently at the end of the investment road is our close friend in economic value-adding… capital gains tax. This is the money you give the government to thank them for allowing you to use your own capital, initiative, and risk appetite to make a few dollars. Call it a reward for effort, in reverse.

Here’s a thought. If politicians want to ban negative gearing, go right ahead. A proviso, however, is that at the same time, CGT and stamp duty get abolished. Or we could take a leaf from the political manifesto of my favourite retired prime minister, the Kiwi legend, ‘Saint’ Jacinda Ardern. Her government tinkered with negative gearing rules to restrict interest cost deductions on existing properties and attempt to steer investors to new builds. This strategy worked so well that the current New Zealand Government is reestablishing the old rules to stimulate the property investment market and broaden rental availability.

It’s worth mentioning that ‘St’ Jacinda promised 100,000 new affordable houses at a rate of 1000 a year. Her government built 141 in year one and a total of about 1000 all up, before abandoning the KiwiBuild strategy. A salient lesson in governments trying to act like private sector developers. It simply doesn’t work.

Here in Oz, we are in a housing crisis so let’s increase migration and disincentivise property investors. Genius!

A 100% compliance score is possible Caretaking Performance Audit:

By Lynda Kypriadakis,

For the first time in nearly two decades, a caretaker has scored a 100 percent compliance assessment in the delivery of the caretaking duties under the caretaking agreement.

Many of you reading this won’t be surprised to know that our Compliance and Performance Assessors conduct audits of the performance of caretakers under their agreements with bodies corporate, but what may be surprising is to learn that a proportion of these audits are actually initiated by the caretaker themselves.

That’s right — caretakers are asking us to audit them — not the body corporate. Why would this be? Isn’t a Caretaking Performance Audit a thing to be avoided?

Apparently not …

Caretaking services providers are increasingly viewing the external compliance and performance audit process as a way to measure and improve performance. Rather than avoid the scrutiny, some caretakers are inviting it and have entrenched routine external compliance and performance audits into their annual schedules, to use the experience as a form

of training and self-review. Routine external compliance and performance auditing, initiated by the caretaking services provider, is on the rise.

We recently audited a caretaker who initiated the audit themselves as a self-management strategy, and we could not find one single non-compliance or issue to be improved. That caretaker was fully compliant.

Definition of a caretaking audit

What is an audit?

A “compliance” audit is a bit different to a “performance” audit. For the purposes of reviewing the delivery of duties under a caretaking agreement, both are required. The performance audit deals with delivery efficiency, and the compliance audit deals with conformance with mandatory standards.

A performance audit could generally be defined as an independent review of the caretakers’ operations and delivery outcomes to measure effectiveness in delivering the duties under the caretaking agreement. The goal of the performance audit is to ascertain where the caretaker is failing to deliver duties to the objective standard, and to provide recommendations for improvement or performance correction where needed.

The external audit process helps manage expectations (around delivery standards) and helps build trust between parties to the caretaking agreement, when it can be confirmed by the impartial auditor that the duties are being delivered to the correct standard.

The nature of the typical schedule of duties within the average caretaking agreement causes the

need for the performance audit to include a compliance audit. Duties within the agreement require the caretaker to comply with relevant legislation (for example, WHS Act, Regulation and associated Codes of Practice) so layering on a compliance assessment is necessary for a caretaking performance review.

Performance audits look at the effectiveness of the caretaking services providers’ processes. Compliance audits are designed to give assurance that activities have been performed properly in accordance with regulatory or contractual requirements. You need both a compliance and a performance audit to confirm all the duties under the agreement are being done to the standard.

Mainly focusing on management systems, reporting and recording, the caretaking performance audit reviews the systems or controls put in place by the caretaker to support sustainable delivery of the duties to the acceptable standard.

Typically, a performance auditor examines the principles of economy, efficiency and effectiveness in the delivery of the duties within the caretaking agreement.

Economy: Are the duties being performed in a financially effective manner?

Efficiency: Are the works being done in a way that maximises productivity?

Effectiveness: Is the desired effect being achieved?

When you consider the performance audit focuses on economic factors, you can start to see why some caretaking services providers see value in the independent audit of their caretaking business.

Compliance versus performance

The criteria for any audit must be clearly defined from the outset. It is important that the subject of the audit is made aware in advance of the audit, what is expected in terms of evidence and proof of delivery.

Audit criteria must be relevant (that is, to the agreement and schedule of duties), reliable, complete, objective, understandable, comparable, acceptable, justifiable and measurable.

Compliance is about delivering the agreed mandatory requirements to the objective standard, so as to minimise the risk of exposure to regulatory infringement penalty, breach of contract notice or termination of agreement.

Performance is about delivering the outcomes in an efficient, economical and effective manner so as to minimise business costs and maximise return on investment.

Two-part process

The compliance and performance audit must be a two-part process to properly achieve the desired outcomes and prescribed deliverables, including accountability under the agreement (for both parties), improving operational efficiencies, sustainable compliance, and building trust and professionalism between stakeholders. Auditing is about being objective and impartial by investigating and gathering evidence to confirm that the duty has been done (or not done, as the case may be).

Evidence can be obtained in a variety of ways, such as…

Documentary evidence: Records, certificates, reports (for example, lift maintenance records or cleaning supervisors checklist).

Visual evidence: What can be seen by supervisors (for example, visual inspection of the condition of the lift).

Functionality evidence: Is the asset or infrastructure working (for example, the lift working may be evidence of maintenance).

Anecdotal evidence: Hearing

The Diverse Group of Companies & DPX Projects

The last decade in strata and the true cost of strata services

By Roland Franz, General Manager, Body Corporate Headquarters, Strata Consulting Services (Qld)

The role of a body corporate (strata) manager has not changed greatly over the past 10 years. However, the services, practices, processes for service delivery, and client expectations have changed significantly!

The perceived cost of body corporate (strata) management is an anomaly – somewhat of an enigma when considering that there has been minimal increase to the fi xed administration/management fees over the past decade. Conversely, due to the changing landscape of strata services and the enhanced customer experience, operational and additional service costs have increased as a result.

The inequitable balance of service expectations and price quoted for “included services” in a body corporate management administration agreement has caused body corporate management companies to derive revenue based on a “fee for service” model. Fees for additional services provided over and above the included administration services

identified in the agreements, as a minimum requirement to perform the role.

Flashback…

10 years ago, body corporate meetings were routine, correspondence was relatively minimal, and most inquiries were about levy payments, maintenance, or lot improvement requests. Meetings were cordial, orderly and timely, notices were mailed to owners (a legislative requirement) and delivered the next business day, and voting papers were received by post or by facsimile. Owners would make a phone call for quick inquiries and the number of daily emails received was about half of those received in current times.

COVID-19 introduced a more agile work environment with hybrid and remote working abilities being employed to provide continuity of service.

Video-conferencing platforms, laptops, remote dial-in access to operating systems and management soft ware, online voting, electronic communication, owner’s portals providing online access to information 24/7, and the availability of your body corporate (strata) manager was at the forefront of industry adaption. These conveniences have enhanced the customer experience and increased the operational costs of body corporate management companies.

The convenience of email is a significant strain on a body corporate manager’s time available to provide the included services under the administration agreement, and typically a significant additional cost for bodies corporate.

Based on experience…

A body corporate manager, with a full portfolio of over 1500 lots across more than 30 buildings typically attends to more than 50 emails a day. If you allow fi ve minutes to read and respond to each email, this equates to approximately fi ve hours a day attending to email correspondence alone.

According to Seek.com, a body corporate (strata) manager’s salary in Queensland is $75,000 to $90,000, the average in Southeast Queensland is likely to be over $85,000 for the portfolio previously described. The body corporate manager’s time attending to emails equates to approximately 75 percent of their salary as a cost to the strata business.

“Included services” will include the Annual General Meeting (AGM) and typically up to four committee meetings, averaging two hours for each meeting. Allowing for preparation, attendance, and time to produce minutes, a body corporate manager will need to devote on average two hours of each working day to meeting commitments — the remaining quarter of their salary.

The fi xed admin charges in the body corporate managers agreement, typically do not cover the body corporate manager’s salary. When other duties of the body corporate manager are considered (paying accounts, compliance, reporting and more) in combination with the other operational costs of a strata business, a body corporate management company typically cannot provide their services at the fi xed fees often stated in the administration agreement (for instance, $120 per lot, administration fee and $80 per lot, disbursements).

Notwithstanding the obvious variables from one company to the other, the actual costs incurred by a body corporate management company to provide their services and meet client expectations is more likely $300 to $400 per lot, when averaged over the entire portfolio under management. The variation is dependent on the overheads of the strata company, the portfolio size of the body corporate manager, and the support staff provided.

The lower the administration fee appearing in the agreement for “included services,” the greater the necessity for additional costs detailed elsewhere in the administration agreement. The size of the portfolio allocated to a strata manager and the number of buildings in the portfolio will determine the volume of emails and meetings required to service their portfolio and their capacity to meet client expectations. The larger the portfolio relationship in the number of lots and buildings, the higher the decline in service capacity. Conversely, the lower the size of the portfolio and building count, the greater the capacity to provide enhanced customer service; however, the higher the cost of service per lot.

Understanding the total likely costs in all areas of the administration agreement and the body corporate (strata) manager’s capacity to provide service, will be a determining factor in the quality and value of your strata experience.

Suggested topics for future comment are welcome contact via editor@resortnews.com.au

Leveraging the billboard effect to grow your business

By Chris de Closey, Director, Switch Hotel Solutions

When I worked at Expedia, we always spoke about this phenomenon known as ‘the billboard effect’ and how it can help to ensure your business is growing. Imagine driving down a highway on a long trip when a billboard catches your attention. Maybe you’re looking at a Maccas billboard, or it could be a local restaurant, attraction or hotel. You feel compelled to investigate this product. You whip your phone out (or your passenger does — safety first) and start researching. It’s simple, right? It’s old-school advertising and it works.

How does this relate to your hotel? You need to treat Online Travel Agencies (OTAs), Expedia, Booking.com and more, as virtual billboards for your property. Customers find properties on these marketplace style websites, then search for the direct website to further investigate your product and likely book direct!

The OTA has provided your property with the visibility it needs to drive the booking through to your hotel’s website. It not only increases awareness of your hotel, but also increases direct engagement and bookings. The billboard effect is born!

Why do you need it? If you are an independent, small scale or boutique property, you likely don’t have the marketing budget that some of the big brands do. The billboard effect is about placing your hotel in the spotlight and using the ripple effect it creates to enhance your digital presence across all platforms.

The first step to leveraging the billboard effect is to ensure you have a presence on multiple OTAs. But this is not where it ends. You need to actively manage these relationships with the agents, regularly update your listings with the best quality photos, ensure your descriptions are correct and the

most important one, is to ensure your pricing is competitive.

Now you’ve gone this far, the next step is ensuring your website is optimised and has the easiest user experience to make the booking. There is no point to the billboard effect if it’s a nightmare for a customer to book on your website – it will just drive them straight back to the agents.

The next step from here is to encourage direct bookings! You can offer customers perks for booking direct – whether it be a slight discount, a late checkout, a complimentary upgrade, breakfast or more.

Your reviews that are showcased on the OTAs and your direct website will help to convert these lookers into bookers. Highlight these reviews on your website and let customers see you are the real deal! The same can be said with your social media, ensure you have a presence on socials to showcase your property and let the world see you. This will only help to boost the billboard effect.

Now we know how to leverage it to suit your needs, you need to drive VISIBILITY on the OTAs!

A quick search on Booking. com shows that there are over 600 available listings to book in Brisbane, 1200 on the Gold Coast and over 1400 on the Sunshine

Coast. Finding your property in a large market can be like finding a needle in a haystack, so how do you stand out?

This is where you leverage your relationship with the OTAs. If you don’t have a relationship with them already, then this is the perfect place to start. Ask the OTAs what the best strategy is to drive visibility. They will be happy to share with you what works best for their platform. Yes, they will suggest a strategy that will involve discounting or increased commissions but don’t turn your nose up at this just yet!

When they give you the strategy, rework your own existing revenue strategy to allow for these discounts or commissions. You don’t always have to take the hit to your average daily rate.

You might think that you hate the OTAs and don’t want anything to do with them and it’s fine for you to think that. But the truth of the matter is that they are the most effective and highestspending marketers in our industry. They aren’t the enemy, by leveraging your partnership with them you will find that your overall bookings will increase, not just through their channel.

Remember – a rising tide lifts all boats!

Optimising your guest communication

By Sam Steel, Co-Founder, Resly

Effective communication between resorts and guests has never been as important as it is today. In this digital age, optimising guest communication is not only essential for improving the guest experience but also for building lasting relationships that can lead to return stays. Here are some strategies that you can implement to optimise communication in your resort:

Unified communication

The first step towards efficient communication is implementing a unified inbox that consolidates messages from various booking channels. This allows you to

manage all guest interactions in one place, reducing response times and ensuring that no message is overlooked. Whether guests reach out via an online travel agency, your website, or SMS, your team can provide consistent and timely responses.

Choosing the right communication channel

The choice between SMS and email largely depends on the message’s content and urgency. SMS is effective for immediate communication needs, such as last-minute changes or reminders. Its high open rates make it perfect for ensuring that critical information is seen quickly. Email, on the other hand, is better suited for detailed communication, such as booking confirmations, prearrival information, and post-stay thank-you messages. It allows for richer content, including links, images, and attachments.

Finding the right balance is crucial. You want to keep guests informed without overwhelming them with a barrage of messages. One way to achieve this is by using different communication channels for different types of messages.

For immediate actions or reminders, it’s best to use SMS or text messages. However, you should limit the number of SMS

messages to no more than two per stay unless there is an urgent update. This will prevent your guests from feeling bombarded with messages and will help them feel in control of their experience.

For emails, you should send a booking confirmation, a pre-arrival message, a mid-stay check-in (for longer stays), and a post-departure thank you email. These are the main touchpoints in a guest’s journey and will ensure that they feel supported and cared for throughout their stay. It’s important to avoid cluttering their inbox with excessive promotional or irrelevant messages. This will help you maintain a positive relationship with your guests and avoid being seen as spammy or intrusive.

Content of communications

Your communications should be purposeful and enhance the guest experience. Initial communications should confirm details and provide essential information about the stay. Prior to arrival, consider sending tips about the destination and weather forecasts, as well as information on how to access the resort, check-in times, and parking access. During the stay, make sure guests are aware of all amenities, services, and activities

available at the resort. Finally, post-departure communications should thank guests for their visit, ask for feedback, and invite them to book their next stay directly with a promo code.

Personalisation

Tailoring messages to individual guest preferences can significantly boost engagement and satisfaction. Use data from their reservation, such as their first and last names, to personalise communication, suggesting activities and services that align with their interests.

Implementing feedback loops

Encourage and facilitate easy feedback from your guests through surveys sent via email or accessible through an SMS link. This not only helps in improving services but also makes guests feel valued, knowing that their opinions can lead to tangible changes. By implementing these strategies, resorts can significantly enhance guest satisfaction and encourage repeat visits, ultimately contributing to a stronger brand reputation and increased revenue.

Is education the answer?

By Kelley Rigby, Managing Director, Lett s Group

The days move slowly, and the years pass by so incredibly fast! If anyone has any clue where the last fi ve months disappeared to, please let me know and bring them back.

That aside, today I wanted to get real with all of you. Recently, I had a two-hour conversation with a manager who is also a friend of mine, and she made a statement that couldn’t have been more accurate. She said, “Kelley, you are great at what you do, but you couldn’t do what we do.” And I couldn’t have agreed more. My nature, optimism, and rosecoloured perspective possibly wouldn’t cut it in your shoes.

I’m certain that some of you may read my article when you are facing tough times and think, “What would you know?” You’re right; if I had to endure the disputes and harassment that some of you face, I would probably crumble.

However, something that I am not too shabby at is building relationships and that is essential in our industry. So, please understand that when you read my articles and find yourself in challenging situations, and I emphasise kindness first and fists later (just kidding) I recognise that I would struggle to handle some of the challenges you face.

I would struggle to handle some of the challenges you face

My goal is to provide you with diff erent perspectives and strategies that I have seen work to diff use a situation or prevent it from escalating.

Back in 2023, I mentioned an increasing number of managers were under immense pressure and seemed to be sharing many tears with me, more than ever before. As we are now halfway through 2024, I wish I could say that this has decreased, but unfortunately, it hasn’t. This once again highlights the complexity that this industry can bring. It is clear that the broader community still struggles to understand the intricacies of management rights — why else would they hesitate to renew a top-up or consider terminating an agreement?

It simply doesn’t make sense.

To me, it is evident that the general public lacks adequate education on what management rights entail and the unparalleled role that onsite managers play. This lack of understanding extends to all facets of living in a Community Title Scheme, leading to disputes and unnecessary, trivial arguments due to this lack of knowledge.

The solution?

Education, and plenty of it. While kindness and patience from all parties would also be beneficial, I understand that it isn’t always

possible. The 29th of this month marks the beginning of a series of webinars I will be producing, providing free education for all unit owners, and delving into all things management rights.

Feel free to reach out if you would like access to this

platform or create your own educational platform for your community. It doesn’t have to be a webinar; you could write a monthly blog discussing the complexities of living in a community. Dive deep into all aspects so that people understand the importance of keeping the committee in check, participating in voting at an AGM, and being involved in decision-making processes. This way, they will know who to approach with their issues instead of assuming you are all things, from the pool keeper to the security guard or the locksmith. Education might not solve all problems, but I have a feeling it just might help.

PROGRAMME

ASBESTOS REMOVAL Zero Asbestos BATHROOM RENOVATIONS Shower Sealed SOLICITORS Flood Legal Small Myers Hughes TRAINING & DEVELOPMENT PRET Australia

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

Sunshine Coast’s premier culinary festival: The Curated Plate Food & Drink Festival

This year’s 10-day festival will run between July 26 and August 4.

The festival will dish up 90 culinary events, including a food market featuring handcrafted cheeses, breads, and chocolates; a craft beer and spirits festival on the banks of the Maroochy River; the ever-popular Sunshine Coast Asian Food Festival; and a special Chefs in Conversation with chefs Tom Hitchcock, Peter Kuruvita and Cam Matthews in discussion with celebrity cook Hayden Quinn.

The main courses for this year’s program are the three signature events, two of which are brand new for 2024:

• Sunny Coast Breweries & Distilleries Festival by GABS (July 27 & 28 2024).

• Queensland’s Sunshine

Pantry live at The Station SC (July 28 2024).

• Sunshine Coast Asian Food Festival (August 3 & 4 2024).

Other highlights of the event program include:

• Tom Hitchcock’s Chef’s Table at Spirit House and special Curated Plate Cooking Classes at Spirit House’s Cooking School.

• Peter Kuruvita’s ‘Smoke and Charcoal BBQ Lunch’ at Australia Zoo’s Warrior Restaurant.

• Brunch on the Balcony at Mapleton Public House.

• The Hinterland High Tea with Adriano Zumbo at Maleny’s Tiffany’s.

• Chefs in Conversation featuring Tom Hitchcock,

Kuruvita and Cam Matthews at Altitude 9.

• Spice Bar’s Kaiseki Lunch.

• Dinner on the Deck at Harry’s on Buderim..

• Mad Hatter’s Tea Party at Yanalla Farm.

To see the full program and to purchase tickets, see thecuratedplate.com.au.

Most Australians back tourism taxes

Just weeks after Bali introduced a new tourism tax, a new survey reveals that almost two-thirds (63 percent) of Aussies support countries introducing the tax to combat the rising environmental toll visitors take.

The survey, which followed a growing number of nations implementing taxes to fund cultural and environmental protection, also reveals that 60

percent of respondents want Australia to introduce its own tourism tax, with 63 percent of NSW residents particularly supporting the levy.

These insights, gathered from a survey of 1006 Australians commissioned by InsureandGo, highlight the increasing concern about sustainability among travellers. Younger Australians, aged 18 to 30, emerge as the most environmentally conscious, with 73 percent supporting tourism taxes.

Bali recently instituted a tourism tax, with visitors required to

pay 15 AUD (150,000 IDR) upon arrival. This move aligns with a global trend, with countries like the Netherlands imposing high tourism taxes, such as the 12.5 percent hotel levy in Amsterdam.

Closer to home, New Zealand charges international visitors AUD 32.64 levy (NZD 35) to address current challenges created by tourism in its conservation areas. Tourism taxes are usually indirectly paid through accommodation providers, holiday companies or visas.

InsureandGo Chief Commercial

Officer Jonathan Etkind said:

“Tourist taxes are a relatively new concept, but as travel demand swells, we are seeing more countries adopt the levy. For younger Australian travellers, it’s increasingly commonplace, but for Australians aged over 50, it’s a new levy that they seem to be taking time to embrace.

“What’s heartening, however, is that only a minority of 37 percent of respondents don’t support tourism taxes, demonstrating just how many Australians support the concept of sustainable travel.”

NSW has exceeded $50 billion in visitor expenditure for the first time.

This highlights the state’s

pivotal role in driving growth through tourism.

The NSW Government aims to further enhance cultural experiences for tourists and expand visitation to Western Sydney and regional NSW.

The impending opening of Western Sydney International and Newcastle International Airports presents additional opportunities for sector growth. To shape the future of the visitor economy in NSW,

Destination NSW is inviting stakeholders to contribute their insights to the review of the NSW Visitor Economy Strategy 2030. Submissions are welcome until June 2 via Have Your Say.

Peter

Peter Kuruvita

Image courtesy of Visit Sunshine Coast

The value of Specialty Dining Packages on cruise ships

By Stephen West, Interline Travel

Cruise holidays have evolved far beyond the realm of buffet lines and standard dining rooms. Modern cruise ships now boast a plethora of specialty dining options, providing passengers with a culinary journey that rivals some of the finest restaurants ashore. While specialty dining typically comes at an additional cost, savvy cruisers increasingly recognise the exceptional value these experiences bring to the table.

Culinary extravaganza: Elevating the dining experience

Specialty dining on cruise ships is a foodie’s adventure, offering a diverse array of cuisines and culinary techniques that go beyond the standard cruise fare. From authentic Italian trattorias and fine French bistros, to steakhouses sizzling with prime cuts, these speciality restaurants showcase the talents of world-class chefs, providing a culinary experience that is beyond the ordinary. Unlike traditional dining rooms where the menu may be more generalised to accommodate many passengers, speciality restaurants focus on a specific cuisine or theme, allowing for a more refined and immersive dining experience. This focus

on quality, coupled with a more intimate ambience, ensures that each meal becomes a memorable event rather than just another part of the cruise routine.

Exclusivity: A feast for the senses

Specialty dining venues often boast an intimate setting, allowing passengers to escape the bustling atmosphere of the main dining areas. Whether it’s an alfresco dinner with ocean views or a cosy, dimly lit steakhouse, the ambience in these restaurants adds a layer of exclusivity to the dining experience. The attention to detail, from the table settings to the attentive service, creates an atmosphere that is both refined and relaxing. Moreover, specialty dining allows for a more leisurely dining pace. Passengers can enjoy each course without feeling rushed, creating an opportunity to truly appreciate the artistry and flavours of each dish. This unhurried approach to dining enhances the overall cruise experience, turning meals into memorable events that contribute to the overall enjoyment of the voyage.

Diverse culinary offerings: Catering to every palate

One of the significant advantages of specialty dining on cruise ships is the diversity of culinary

offerings. Passengers can embark on a culinary world tour without ever leaving the ship, indulging in a spectrum of flavours and cuisines. Whether it’s a seafood lover’s paradise, a sushi haven, or a steakhouse serving up the finest cuts, speciality dining ensures there’s something to tantalise every palate. These restaurants often source high-quality ingredients, allowing passengers to enjoy meals crafted with precision and care. The menus are curated to showcase the specialities of each venue, ensuring that each dish is a culinary masterpiece. This dedication to excellence transforms specialty dining into a value-added experience, offering a level of quality that goes beyond the standard cruise fare.

Special occasions and celebrations: Crafting unforgettable moments

Specialty dining is not just about the food; it’s about creating special moments and celebrating milestones. Many passengers opt for specialty restaurants to mark birthdays, anniversaries, or other significant events. The combination of exquisite cuisine, exceptional service, and a refined setting sets the stage for memorable celebrations that linger in the hearts of passengers long after the voyage concludes. While specialty dining does come at an additional cost, the value derived from these unforgettable experiences far exceeds the monetary investment. The memories created during specialty dining moments become an integral part of the overall cruise experience, adding a layer of richness and depth to the journey.

You pay around $20 to $60 per person for specialty dining, significantly less than you would pay at a 5-star hotel - and that is how I would compare it.

Importantly you must book these as soon as you can to match your itinerary. With cruise lines like Regent Seven Seas, Seabourn and Silversea fine dining is included in your fare each night.

Images courtesy of Interline Travel

Rob spellbinds audience at an industry event hosted by HiRUM, Guesty & Booking.com

The exclusive Gold Coast event held on Thursday, April 18 titled “Setting your business up for success: A deep dive into hospitality trends, data management, and revenue strategies,” was a resounding success.

Booking.com’s team shared significant milestones from the previous year, including the launch of its Generative AI product and the creation of the most-viewed “Big Game” commercial of 2023. A comprehensive global update highlighted flight booking trends and unveiled valuable insights from payment method data, along with revealing Gold Coast market trends.

Robert Taylor from Taylered Hospitality captivated the audience with a session on “Setting Up Your Business for Success,” leaving attendees with valuable insights on unlocking their online potential, determining rates, and enhancing guest review scores.

The event introduced HiRUM’s new invoice processing solution, live bank feeds, and other new integrations. It also showcased Guesty’s all-in-one hospitality platform, described as “A system that includes every tool you need to operate your business, at your fingertips.”

The evening concluded with a lively Q&A session followed by delightful nibbles and refreshments.

Count up the years on Gold Coast

By Grantlee Kieza, Industry Reporter

Management rights have only been in operation for about 50 years, but an established accounting and professional services company on the Gold Coast can boast over 100 years of collective experience in the industry. Two major Gold Coast firms, Jonathan Grant Accountants and Count Gold Coast are merging to form an even stronger management rights arm.

Jonathan Hanaghan from JGA has been involved in management rights since 2001, initially at Palm Beach and for the last eight years in his office at Burleigh Heads. He cited the merging of the two businesses due to their shared experience and expertise in management rights and self-managed super funds.

“It just made sense to join forces,” Jonathan said. “There are many similarities between our two businesses, and together we can provide even better service to our clients.”

He noted significant changes in management rights since 2001, particularly in technology.

“In 2001, much of the work was manual, but with technology such as trust account software

and other software, everything has become electronic. The same applies to leasing agreements, which were once all done by hand on paper. Trust account audits, which used to be conducted physically onsite three times a year, can now be done remotely.”

Jonathan observed that management rights are proving more profitable than ever, attributed to the increased size and quality of properties compared to 20 years ago, as well as substantial rises in accommodation prices. He also noted a surge in syndicates and super funds investing, driven by the corporate funding required for larger properties.

JGA will relocate to the Count Gold Coast office at Coolangatta, complementing the business’s Southport presence. “Combining the two businesses will create a larger, more powerful entity, and together we will have over 100 years of management rights experience,” Jonathan stated.

What about Women In?

You’re invited to Women In Luncheons in May! Gold Coast Luncheon

When: 12:30 to 4:00 pm on Wednesday 15th of May 2024.

Where: Pool Deck at The Island Gold Coast in Surfers Paradise.

Hosted: In partnership with Rigby Property Group Brisbane Luncheon

When: 12:30 to 4:00 pm on Friday 24th of May 2024

Where: Luke’s Bar at the Lawn Bar + Cafe at Kangaroo Point in Brisbane.

Hosted: In partnership with SSKB For tickets, please head to www.womenin.com.au

Michael Beddoes, a founding partner at Count Gold Coast said the primary motivation for the merger was to enhance the collective strength of the business’s management rights services.

“We already have a team of four management rights specialists which is led by Principal Paul Gaffney and that’s essentially all they do,” Michael explained.

“Many of the team are current and past owners and investors in management rights businesses and are aligned with all of the issues facing our management

rights clients. “We believe this is unique in the professional services realm, and bringing Jonathan on board only enhances that depth. Count has been operating on the Gold Coast for over 25 years and is one of the largest professional service providers in the management rights industry.

“Given the unique nature of this niche industry, specialist advice is essential, and in our business, we’ve prioritised this aspect and are bolstering our team of specialists.”

Jonathan Hanaghan

Michael Beddoes

Paul Gaffney

First 25hours Hotel Down Under

In Sydney’s vibrant Paddington suburb, the 25hours Hotel The Olympia is gearing up for its grand debut in the first quarter of 2025, promising a dynamic fusion of hospitality and entertainment.

Central Element, the Sydneybased property developer, leads the charge in transforming a historic cinema, operational since 1911, into a bustling hotel and culinary hub. Silvia Kypriotis, an esteemed figure in the hotel industry with over two decades of experience, spearheads the venture as General Manager.

Having earned recognition as the HM Australian General Manager of the Year in 2021, Silvia’s leadership is marked by outstanding results and a

And, on the Gold Coast...

Kirra Point Holiday Apartments officially opened on April 12, offering guests a luxurious retreat for travellers seeking an idyllic beach holiday. Nestled within Kirra Point’s vibrant lifestyle precinct, these high-end rental apartments boast breathtaking ocean views and seamless indooroutdoor living spaces.

Developed by the esteemed KTQ Group, known for their award-

winning Elements of Byron resort, Kirra Point Holiday Apartments epitomise luxury coastal living. Each apartment, ranging from one to three bedrooms, features modern amenities and expansive balconies overlooking Kirra Beach.

With shared facilities including a heated pool, barbecue area, and gym, guests can indulge in a truly immersive coastal experience. Conveniently located near Gold Coast Airport and a short drive from popular attractions, Kirra Point Holiday Apartments offer the perfect blend of relaxation and adventure.

people-centric approach. The 25hours Hotel The Olympia will feature 109 rooms spread across six floors, complemented by versatile event spaces,

a Levantine restaurant, a street café, and a rooftop bar offering panoramic views of Sydney’s skyline.

Katherina Klimke, VP Operations at 25hours, highlighted the hotel’s strategic location between the vibrant Darlinghurst and sophisticated Paddington districts. With its emphasis on local heritage and community engagement, the hotel aims to attract both business and leisure guests.

As the countdown to the grand opening begins, anticipation mounts for the arrival of 25hours Hotel The Olympia, poised to make a lasting impression on Paddington’s hospitality scene.

Kirra Point Holiday Apartments, image supplied

25hours Hotel The Olympia, images supplied

IHG Hotels & Resorts

unveiled plans for the second Holiday Inn & Suites in Australasia.

Set to open in early 2028, the Holiday Inn & Suites Caloundra

Sunshine Coast will offer 160 rooms, including 33 suites, along with a rooftop restaurant and sky bar boasting stunning coastal views.

Partnering with Felix Capital, IHG aims to create a modern and accessible destination for leisure and business travellers

alike. Positioned on Bulcock Street with easy access to Brisbane and Maroochydore Airport, the hotel is poised to become a premier destination on the Sunshine Coast.

Holiday Inn & Suites Caloundra, Sunshine Coast is the latest signing in IHG Hotels & Resorts’ Essentials portfolio, it represents IHG’s continued growth within the Premium & Essentials segment and marks the company’s 10th hotel in Queensland. With its strategic location, the hotel is poised to become a premier destination for travellers seeking both relaxation and adventure.

PROFILES ARE A FANTASTIC OPPORTUNITY TO:

• Impress your unit owners

• Receive recognition for your hard work (and that of your sta )

• 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 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.

The Holiday Inn & Suites Caloundra Sunshine Coast, image supplied

Rob Urquhart from Tourism Brokers, was pleased to be a part of the sale of such a beautiful and unique property, Bluebush Estate, Lovedale NSW. Previous owners Linda & Steve, will be enjoying their retirement after handing the keys to new owners Lauren & Gareth.

MANAGEMENT RIGHTS

MOTELS & OTHER

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

Yamba NSW

Exclusive | Iconic Holiday Location ID: 8635

Asking Price: $2,250,000

Net Profit: Circa $304,000

Jake Clarke 0418 663 661

Upper Coomera QLD

Exclusive | No Facilities Permanent ID: 9129

Asking Price: $1,063,000

Net Profit: $95,391

Bill He 0439 288 960

Waters QLD

ID: 9127

Exclusive | Hervey Bay Mixed Letting

Asking Price: $1,920,000 Net Profit: $386,551

Michael Philpott 0433 137 927

Paradise QLD

Exclusive | Live O site Holiday Letting ID: 7912

Asking Price: $990,000 Net Profit: $172,986

Gerard Dixon 0433 617 515

Eli

Surfers

OVER 1100

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

HOLIDAY MANAGEMENT RIGHTS

Nett

POPULAR BEACHSIDE RESORT, MAROOCHYDORE

Rarely do properties with this location and resort amenities become available. Positioned in the holiday destination of Maroochydore, this family oriented high rise, having solid repeat business is one to attain for your portfolio. Management unit positioned on the ground floor, 2 bedrooms and a study (currently used as a bedroom) with 2 bathrooms. The spacious office is attached to the residence and is on title along with 3 basement car spaces and a spacious lockup storage/cage.

COASTAL BEAUTY IN PRIME LOCATION, CALOUNDRA SUNSHINE COAST

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

PERMANENT MANAGEMENT RIGHTS

An exceptional opportunity with management rights for this property featuring 117 apartments across 15 levels in a prime location. With an extended Body Corporate agreement until 2047, enjoy a generous salary of $150,783 plus GST, annual increases, and additional coverage for duties. The manager’s unit boasts 2 bedrooms, 2 bathrooms, and a dedicated parking space, while also leasing out 8 storage cages for added revenue.

Nett profit $501,796 | Real Estate $760,000

OPTIMAL LOCATION,

MAIN BEACH GOLD COAST

Explore an incredible chance in this remarkable high-rise! Boasting 190 apartments and impressive amenities, seize the opportunity for upscale management. With a substantial salary of $512,215 (plus GST) and an 8-year, 6-month agreement, expect stability and financial gain. The property includes office space, reception area, storage, and kitchen on title, eliminating the need for unit investment. Don’t miss out on this unique opportunity to join an exceptional management venture!

LUXURY ACCOMMODATION, REDCLIFFE PENINSULA

An exceptional business opportunity with a prestigious waterfront property on the Redcliffe Peninsula, Queensland. This luxury development boasts 113 apartments, 11 townhouses, and 32 marina berths. With 20 apartments in the letting pool, an annual net profit of $245,000 and 25-year agreements, this proposition offers a lucrative venture without real estate ownership requirements, just 30 minutes from Brisbane airport.

PRIME LOCATION, BIRTINYA/MOUNTAIN CREEK

(attention syndicates)

CARETAKING ONLY

NO REAL ESTATE TO PURCHASE - NO LICENCE REQUIRED! Nett profit $165,000 | Total Purchase Price $825,000 Nett profit $28,000 | Total Purchase Price $28,000

Contact: Robert Collins, 0404 678 792 robertc@raas.com.au

Contact: CeCe Chen, 0450 459 898 sales@onsitemr.com.au

Contact: Carig Cornish, 0414 897 256 c.cornish@rwsp.net

Garrick House Holiday Apartments:

Sun shines on the Tingates at Garrick House

By Grantlee Kieza, Industry Reporter

The stark contrast in climate between the stunning, sun-soaked, surf-ringed Port Douglas in Far North Queensland and the frosty, snowcovered Mt Baw Baw Alpine resort in Central Victoria couldn’t be more dramatic.

Yet for Andrew and Cindy Tingate, the new resident managers at the gorgeous Garrick House in Port Douglas, the operational similarities between the two locales are striking. “It’s a very similar method to run both,” Andrew said. “And it’s interesting that the peak season is pretty much the same for both too, from May to October.”

The one thing Alpine resorts don’t have, though, is cyclones. Andrew says he and Cindy have quickly re-established their business after Severe Tropical Cyclone Jasper ravaged Far North Queensland just before Christmas, wrecking roads, shutting down power, and causing water shortages. The lack of fresh drinking water in what is traditionally the wettest

part of Australia was due to landslides triggered by the cyclone tainting the floodhit community’s reservoirs, creating a $150 million repair bill, and plunging the local tourism industry into crisis.

Despite the challenges, Andrew reported no major damage to their property. “Although there were delays in repairs to roads and water supplies, the issues in the tropical north are gradually being resolved,” he said.

Having managed Garrick House

for a year, Andrew and Cindy have welcomed numerous long-time guests who return annually, enamoured with the property’s charm and hospitality.

“We have guests from New Zealand, New South Wales, Victoria. Many have stayed in the same apartment for decades,” Andrew said.

“That’s what you call solid repeat business. It’s incredibly rewarding to welcome back familiar faces and introduce ourselves as their new managers.

Andrew and Cindy Tingate

I’m sure we’ll be seeing them again year after year.”

Their journey to managing Garrick House began with a dream nurtured during years of holidaying in Port Douglas. Andrew and Cindy settled on Garrick House on May 8 last year after many years of dreaming about running their own vacation complex in one of Australia’s most picturesque settings.

Andrew said: “Over the last few years, we’ve lived in Melbourne, New Zealand and on the Gold Coast. We moved around a bit, mainly because of my job. I’ve always worked in sports and recreation, venue management, resort management, facility management and customer service in both the public and private sectors. I’ve found these are exactly the sorts of skills you need in management rights.

“Over the years, I worked at Mt Buller in the Victorian ski fields, I worked for Sport and Recreation Queensland. I managed outdoor recreation centres around the state, and I worked for Queensland National Parks, managing some of their visitor centres in South East Queensland. And then, during the four years before we moved

to Port Douglas, I was the general manager of the Mt Baw Baw Alpine Resort in Victoria.”

For many years Andrew and Cindy had talked about the possibility of running a property, provided it was the right one.

“Garrick House is our first venture into management rights, and it has been pretty much as we expected because we did a lot of research before taking over,” Andrew said.

“The cyclone just before Christmas did cause some headaches, but cyclones are just a part of life in the north. It was devastating to lose the majority of our bookings during December and January due to the cyclone’s impact, and Port Douglas continues to be slow to recover, but open for business.”

He said he and Cindy had been considering buying a management rights business in Port Douglas for quite a few years.

“We first came across the industry when we lived on the Gold Coast, in a strata title community scheme, and we liked the idea,” Andrew said.

“The onsite manager of that building explained to us how the business of management rights worked. Then when we holidayed in Port Douglas, we were always curious about the manager and the resort, and this spark of interest continued for years.”

Andrew said he and Cindy seriously began looking for a Port Douglas property just before the pandemic but then paused their search.

“In 2022 we began to look at properties again, but none ticked all the boxes we wanted,” Andrew said.

It’s incredibly rewarding to welcome back familiar faces

“That was until we discovered Garrick House, and it was perfect. We wanted to be in the ‘Golden Triangle of Port Douglas’, close to Four Mile Beach, close to Macrossan Street and all its restaurants, and within walking distance of everything. We wanted a medium-sized property, not overly large. We wanted a place that already had a good reputation that we could build on. Importantly, it also had to pass our financial criteria because we wanted an income we could live on.”

Garrick House is situated on a quiet, peaceful, palm tree-lined street. It is a two-minute walk to Four Mile Beach, a two-minute walk to the start of Macrossan Street, a five-minute walk to the Crystalbrook Superyacht Marina, and a five-minute walk to the Port Douglas Sunday Market. There are 18 apartments at the property with 16, all short-term holiday rentals, in the letting pool, which Andrew said was the ideal size for their husband-and-wife operation.

“When we moved in, Garrick House had already gone through a good recovery after COVID,” Andrew said.

“It produced a reasonable income and fitted our plans perfectly for our transition to retirement over the next five to 10 years. It’s a beautiful property, with lush gardens, wellpresented and has an excellent reputation for customer service.”

Andrew said it took about six months from the first day they looked at the property until they

settled. “It’s a long process with financial and legal due diligence and going through the body corporate assignment process. It was challenging for us as new prospective management rights owners, but we had a fantastic team behind us.

“Robert Cuda, from Caatz Management Rights Accounting, was great to work with, and Michael Huelin, from WGC Lawyers in Cairns, was so helpful. Plus, we had a great deal of support from the ANZ Bank when it came to financing.”

Andrew and Cindy live onsite. This was important to getting body corporate approval and ensuring they deliver an elevated experience to their guests. “We can immediately respond to issues that occur onsite,” Andrew said.

Reflecting on their new lifestyle, Andrew and Cindy expressed gratitude for the opportunity to share Port Douglas’s beauty with guests. “We love the lifestyle and the work here. We also run a tour desk offering a booking service for reef experiences or visits to the Daintree, and we’re blessed that we also get to experience these things for ourselves,” Andrew said.

“At four or five o’clock every afternoon, we look forward to taking a relaxing walk along the glorious beach, like holidaying visitors. There’s always a positive vibe in Port Douglas. People love it and we do our best to make sure our guests have a wonderful experience here too.”

Management made easy with Resly

Management rights software Resly — short for Reservations Easily — took three years of meticulous research and development to launch, driven by collaboration with industry leaders, independent managers and operators, auditors, and accountants.

Founders Sam Steel and Rico Chen envisioned a transformation in the management rights industry, empowering it through unprecedented technical innovation. They wanted to build a property management system that had powerful features, yet was simple to operate, and they created Resly specifically for the management rights industry.

Andrew and Cindy Tingate, property managers at the exquisite Garrick House property in Port Douglas, Far North

Queensland, enthusiastically confirm that Sam and Rico’s vision has not only been realised but exceeds expectations.

“Resly was the property management system in use by the previous owners when we took over Garrick House in May 2023,” Cindy recounted to Resort News. “Adopting Resly during our transition was seamless, thanks to its intuitive design and the exceptional support provided by the Resly team. They ensured

we were swiftly up and running, making the transition a breeze.”

Having familiarity with various property management systems over many years, Andrew was particularly impressed by Resly’s user-friendly interface and comprehensive functionality.

“Resly provides us with a clear calendar and invaluable insights into our guests. Its seamless integration with our website and OTAs like Booking.com simplifies

the booking process for both guests and us, facilitating efficient communication and confirmations.”

Cindy praised Resly’s intuitive nature, highlighting its ability to streamline operations. “Adding booking charges, processing credit card transactions, and managing owners’ accounts are effortless with Resly. Its merchant payment gateway simplifies financial transactions, eliminating the need for physical terminals. Daily reconciliations and end-of-month processes are seamless, saving us valuable time and ensuring compliance with all regulatory requirements.

“In short, Resly has revolutionised how we manage our property, enhancing efficiency, and providing unparalleled support,” Cindy concluded.

“It’s not just a property management system; it’s a game-changer.”

Garrick House