Resort News, August 2024

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INSIDE

05 Editor’s Note: A bold move from NHS to MLR publishing Industry

06 ARAMA Report: 2024 TOP Awards – A magnificent display of excellence

10 Industry News: NSW announces strata management industry reforms amid scandal

11 State Report: Can open. Worms everywhere!

12 BCCM Report: Committee meetings

14 Person of Interest: Nathan Eades – A career in high gear, from Red Bull to Ras360 Management

16 Legal Ease: They just don’t give up!

18 By All Accounts: ATO & myGov scams on the rise – 5 scams to watch out for

19 Motel Market: Fit for purpose

20 Thinking MR: Don’t ask me

22 Strata Insights: Understanding body corporate management agreements in Queensland

23 Mike’s Corner: Relationships in business

24 Good Governance: Combustible cladding – The critical importance of addressing combustible cladding in Queensland buildings

Embracing pet-friendly accommodations: A new market for resorts?

Building Relationships: Give, give, give. Then ask

Rights Reality: From Botswana to the Gold Coast – My journey to management rights

Tourism Round-up: Tropical North Queensland rebounds – Business travellers and sporting events drive recovery

Niche Travel: Travel Insurance – Your ticket to peace of mind abroad

& Appointments

North Queensland 2024 Management Rights Sales Report

Sanctuary Lake Apartments: Great Strides see boost at Sanctuary Lake

The legal stuff...

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KEY

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

Person of Interest 06 ARAMA Report

By All Accounts

A bold move from NHS to MLR publishing

Welcome to the August edition of Resort News!

Well, that was an unexpected honour! Patrick and I were completely floored to receive recognition at the 2024 TOP Awards for our publishing work in the management rights industry. Being invited to join the ranks of lifetime ARAMA members alongside MLR statesmen was something we never anticipated. It’s incredible how life can bring you full circle. When I first landed in Noosa in the early 1980s, to visit my “Ten Pound Pom” brother, I was fresh from the grey, industrial streets of Coventry, and I never imagined that years later, I’d return to this paradise and make a life and career here. I spent my 13th birthday with my new Aussie family at a property in Cooroy and vowed to return for good someday. Twenty years later, with

Mandy Clarke, Editor editor@accomnews.com.au

Patrick and our four little Clarkes, we arrived in Noosa and dived headfirst into a new adventure.

Patrick and I started as NHS nurses with a knack for entrepreneurship, building a successful care business in the UK. Looking back, uprooting

our lives, moving halfway around the world, and buying Resort News was a bold move, but we were ready for a new chapter. Like many of you MLR operators who’ve taken that brave leap into a new career, we found our footing, worked hard, and built something we’re proud of. Despite a few shaky moments for our magazines, like the Christchurch earthquakes (where we lost our New Zealand HQ - twice), COVID-19, and witnessing the loss of many other print publications, we have persevered. Thanks to solid advice, a fantastic team, and the support of this vibrant industry, we are busier and more inspired than ever. We are incredibly grateful to the management rights industry we now love; your support for our magazines has been invaluable, and we are committed to continuing this journey.

This month we sent Grantlee Kieza up north for an in-depth report on the management rights industry in Tropical North Queensland. He got the scoop from some of the major players in sales, finance, and valuation. Plus, he sat down with Nathan Eades, the national director at Ras360, to give us a closer look at his journey and insights. Don’t miss our feature, highlighting Jon and Leah Stride, who have just celebrated two years of managing the Sanctuary Lake Apartment complex at Currumbin. I am also excited to welcome our two new columnists: MLR expert and operator Mike O’Farrell and award-winning manager Marion Simon. Finally, a heartfelt thank you to our readers – you all make this journey worthwhile. Warm regards, Mandy

2024 TOP Awards:

A magnificent display of excellence

By Trevor Rawnsley, CEO, ARAMA

All of us involved in the business of management and letting rights (MLR) were excited about the greatest celebration our industry has ever hosted. The 2024 TOP Awards at Sea World on the Gold Coast on July 23 showcased everything wonderful our industry offers and recognised the most outstanding achievers in the MLR field from a vast array of stellar entrants.

The night honoured the best in our business, and the work displayed by all our winners, finalists, and nominees can only inspire everyone involved in management and letting rights.

We all work in a service industry, and those who reached the peak of the TOP Awards show what can be achieved by going that extra mile to provide award-winning service.

It was especially gratifying for everyone at the TOP Awards to see Mandy and Patrick Clarke, the publishers of our industry bibles Resort News and AccomNews, honoured with life membership of ARAMA for their extraordinary support and promotion of the management and letting rights industry over many years. Mandy and Patrick had successful careers in healthcare in Britain before making their home in Queensland, and the MLR industry is in wonderful health, thanks in large part to their care and hard work on our behalf.

Among the special guests at the TOP Awards this year were Shadow Attorney General Tim Nicholls and the

Member for Surfers Paradise

John Paul Langbroek. The celebration surrounded them with nearly 300 guests, and the magnificent gala event night showcased everything great about our industry.

It was the biggest and best TOP Awards ever, with more eyes on the event and the entrants than ever before.

This year, we also introduced a new set of award categories after partnering with Nick Buick and his team at The Onsite Manager to institute The People’s Choice Awards. These four new categories involve a popular vote component, much like television’s Logies.

At previous TOP Awards, our Service Provider of the Year and Sales Broker of the Year were decided based on the number of membership connections they made – the number of people they recommended to ARAMA. Now, we are combining those referrals with a popular vote.

We also have The Onsite Manager of the Year Award, which is determined directly from interactions with clients of The

Onsite Manager and prospective tenants. People making inquiries for accommodation are surveyed about the service levels of the onsite managers they dealt with, and Nick measures the positive responses for each manager, deducting any negative responses for a net score. So, The Onsite Manager of the Year is decided by a combination of popularity and merit, based on customer surveys.

Overall, we received five times the number of votes in the People’s Choice Awards than in previous years, and because of their success, we think these awards will go viral next year. Companies are running campaigns to get votes, creating great interest in the industry.

The TOP Awards are a tremendous public relations event and a way to recognise and reward the people who create such positive stories for management rights. We are able to recognise and reward the best performers in our industry and push forward with so many inspiring stories about the dedicated professionals who are our lifeblood.

Gary Baskin and his colleagues at Oaks Sydney Goldsborough Suites, Building Management Team of the Year

Glen Eden Beach Resort at Peregian Resort, Management Team of the Year

This is particularly true for Maree and Ian Smith from the Hidden Vista group, just north of Brisbane, who are model ARAMA members. Maree and Ian won the awards for both Resident Manager of the Year – Long Stay and Building Managers of the Year. They became the first three-time TOP Award winners, and later in the night, the first four-time winners, highlighting what a brilliant job they do running five properties incorporating some 400 lots.

In the category of Resident Manager of the Year - Long Stay, the ARAMA judge noted that all the finalists should be

proud of their extraordinary achievements. But what set Maree and Ian apart was the wonderful culture and sense of community they had created among owners and tenants in their complex, backed by several outstanding testimonials from unit owners, body corporate managers, and tenants – the triangle of management.

“They received many positive accolades for their hard work, sense of service to the community, and personable approach. They have been on the

spot to extinguish life-threatening fires, have helped reduce crime, and have made their scheme safer for all through their actions and careful attention,” the judge said. “They managed to achieve this result while expanding their business operations.”

Maree and Ian are a proactive couple who create real harmony at their properties.

On a separate occasion, ARAMA also received correspondence from a tenant who wrote to us unsolicited after seeing an ARAMA sticker in a window at

their complex, telling us how wonderful Maree and Ian were. Other tenants commented on how safe and secure the couple had made their complex. In the last year, they saved a unit from catching fire with quick action and are always on the lookout for strangers to prevent any threat of crime. As a result, they are preventing property loss, stopping crime, and winning awards.

In the category of Building Managers of the Year, the judge said Maree and Ian were able to expand their portfolio of buildings during difficult times, including changes to legislation, rising interest rates, increasing living costs, and an epidemic of crime in the surrounding area.

“One of the difficult issues a building manager faces when also operating a letting pool in the current environment is the loss of rental units to owner/ occupiers,” the judge said, “but Maree and Ian have managed to maintain their rental pool even though there have been many sales in their complexes.”

Mandy and Patrick Clarke life membership of ARAMA

Sales Broker of the Year Jessie Shi, ResortBrokers

Maree and Ian Smith, Resident Manager of the Year –Long Stay and Building Managers of the Year

Mike & Sue O’Farrell, Service Provider of the Year, MLR Services

Paul Parrant, GM, Oaks Port Douglas - Resident Manager of the Year – Mixed Stay

Stuart and Nicole Morris from the Azure Sea Resort in Airlie Beach won the award for Resident Manager of the Year – Short Term Stay. Stuart and Nicole, despite their recent entry into management rights in Queensland, have shown excellent results. They have greatly improved the resort’s facilities through personal efforts, won the appreciation and respect of lot owners, both in their letting pool and others, particularly the committee members, been integral to body corporate management, and, very importantly, lifted returns to the investors in their letting pool.

Paul Parrant, the general manager of the Oaks Port Douglas, won the award for Resident Manager of the Year – Mixed Stay.

ARAMA opened this award to include corporate and multi-building members this year. Paul and all finalists were well supported by the Minor Group, who booked two tables for the awards night.

The ARAMA judge described Paul as “a true leader who exhibits an excellent skill set and clearly can motivate staff.” The judge particularly noted Paul’s leadership style in response to natural disasters like flooding and cyclones. “The tenacity and perseverance shown to apply for and fully utilise available government grants and achieve local council assistance should serve as a guide for other managers impacted by these issues,” the judge said.

Hamish and Jess Watts from the Glen Eden Beach Resort at Peregian Beach

won a new award for Resort Management Team of the Year.

What stood out for this team was the glowing endorsement by their strata treasurer and strata manager. This is not easy to achieve, but it demonstrates the value of focusing on the triangle of management.

Their website is professional, clear, and concise, making it easy to book directly. It also features many complimentary comments from guests.

Gary Baskin and his colleagues at the beautiful Oaks Sydney Goldsborough Suites won another new award for Building Management Team of the Year.

The judge said, “This team’s demonstrated abilities in enhancing the efficiency and sustainability of the facilities at the complex have included reductions in energy consumption and operational costs, upgrading all lighting to LED, introducing variable speed drives to all pumps and air

conditioning plants, installing rooftop solar panels, and more.

“To be an outstanding team requires the skill of an outstanding leader, and this team’s leader has also networked with the City of Sydney to secure resources like water-saving devices and negotiated beneficial bulk rates for services.” The judge noted that Gary and his Oaks team go “above and beyond for their guests, owners, and renters at the complex,” turning their Goldsborough building into a leader in sustainability for the benefit of all lot owners.

While ARAMA has known for decades the advantages and benefits of a small, familyowned business operating an MLR business on site, it is immensely satisfying that our corporate members receive the same accolades.

Our Sales Broker of the Year was Jessie Shi from ResortBrokers, while Property Bridge, run by Bobo Qi and Darren Brent, was

named the Sales Brokerage of the Year. Bobo, Darren, and Jessie demonstrated the excellence delivered by industry leaders in the Chinese-Australian community and the popularity they have created for their businesses within the industry.

Mike O’Farrell, a life member of ARAMA, won the award for Service Provider of the Year for his business, MLR Services. ARAMA is privileged to have many life members still actively engaged in the business and continuing to give back.

The Onsite Manager of the Year was Shay Harrison from Terraces on the Park, described by one of her many satisfied clients as “friendly, honest, courteous, knowledgeable, experienced, and definitely a real estate agent with a difference.”

It was especially pleasing that this year’s winners came from such a wide geographical spectrum: Port Douglas, Airlie Beach, Sydney, Brisbane, the Sunshine Coast, and Gold Coast, and included major corporate players and mum-and-dad operators.

Management and letting rights businesses work well in a great variety of locations and with both big teams and small businesses. The 2024 TOP Awards was a magnificent night showcasing the strength and resilience of our industry and the popularity of our members, as well as the diligence, determination, and great service provided by our top operators, professionals, suppliers, and service providers. Nice to see you at the TOP!

Stuart and Nicole Morris, Azure Sea Resort, Resident Manager of the Year – Short Term Stay.

Property Bridge, Bobo Qi and Darren Brent, Sales Brokerage of the Year

Onsite Manager of the Year - Shay Harrison from Terraces on the Park

NSW announces strata management industry reforms amid scandal

By Mandy Clarke, Editor

In response to a significant scandal within the strata management industry, the NSW government has announced stringent reforms aimed at cleaning up the sector and restoring public confidence.

The new strata laws that promise to “rise to the challenge of living in higher-density homes” follow an extensive ABC investigation in March this year that exposed systemic exploitation and undisclosed kickbacks, particularly spotlighting the prominent firm Netstrata.

The investigation revealed that Netstrata had been charging exorbitant insurance fees and accepting hidden commissions, leading to the resignation of Stephen Brell, the former NSW president of the Strata Community Association (SCA).

According to the ABC, Brell admitted that Netstrata had accepted “referral fees” from various contractors, including debt collectors, without disclosing the amounts to clients, despite promises in annual reports.

Minister for Better Regulation and Fair Trading Anoulack Chanthivong emphasised the necessity of these reforms to “stamp out bad behaviour” within the industry.

NSW Fair Trading said it’s received almost 1000 complaints about strata agents in the five years to 2023

In a statement, Chanthivong highlighted that the actions of a few managing agents had severely impacted public confidence in apartment living.

“NSW Fair Trading received more than 965 complaints about strata agents in the five years to 2023, with over half concerning rules of conduct or financial matters,” he noted.

The proposed changes include:

• Increasing the maximum penalties and penalty infringement notice

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amounts for existing agent obligations to disclose information about commissions;

• strengthening the conflictof-interest disclosure requirements;

• banning agents from receiving a commission on insurance products when they don’t play a role in finding the best deal for residents; and

• strengthening NSW Fair Trading’s enforcement and compliance powers.

The higher penalties, greater transparency, and new enforcement powers follow an $8.4 million investment in more resources for the Strata and Property Services Commissioner in this year’s budget.

The government will consult with key stakeholders such as the Owners Corporation Network and Strata Community Association on the draft laws in the coming weeks. Parliament will consider the new laws later this year.

“These reforms are critical to supporting confidence in

investing and living in strata schemes,” Chanthivong said. “We want to change the perception that strata managing agents easily take advantage of owners by significantly increasing the consequences for those who do the wrong thing.”

The ABC investigation uncovered that Netstrata’s insurance arm was charging fees up to 110 percent of the insurance policy’s base premium, far above the typical brokerage fee of about 20 percent, without disclosing these fees to owners.

This revelation sparked widespread demand for reform, with figures like Chris Irons, former Queensland Body Corporate Commissioner, and Trevor Rawnsley, CEO of the Australian Resident Accommodation Managers Association (ARAMA), advocating for greater regulation and transparency.

Following Brell’s resignation, the SCA announced an “independent review” into Netstrata and a “formal complaints management process” against the firm, alongside an investigation by NSW Fair Trading. Alisha Fisher, CEO of SCA Australasia, reiterated the industry’s commitment to raising standards and improving practices among its members. These reforms are seen as a critical step towards ensuring that unit owners receive value for money and that strata management companies operate transparently and ethically.

The government will consult with the industry ahead of introducing legislation in August.

As the NSW government moves forward with these reforms, it’s hoped that the interests of unit owners will be better protected and the whole industry will operate with more integrity and fairness. The new legislation is expected to make a lasting impact on the strata management sector, setting a precedent for other states to follow.

Can open. Worms everywhere!

By Ben Ashworth, Senior Associate, Small Myers Hughes Lawyers

It’s human nature to avoid problems and leave them for another day. And it’s even easier to avoid a problem if you don’t even know it exists.

Generally speaking, significant strata law changes occur at a sedate glacial speed. It is for this reason that people can be forgiven for assuming nothing much has changed in the strata law over a decade or two and therefore don’t take any action to fix problems they aren’t aware have been created when laws change. Why waste time and effort checking to see if the law has changed in a way that affects you when simply doing things the same way they have always been done is an option?

The status quo makes a very convincing argument.

I am not surprised when I encounter buildings where the managers go about their day simply doing everything the same way that the manager before them did. The same can be said for owner corporations, where you can find committees that have little to no motivation to do anything differently from year to year and are content to rubber stamp everything that was done last year with a new date on it. When everyone is happy, it’s hard to justify rocking the boat or be seen as

encouraging change for change’s sake. All things considered, a random building or business here or there that slips through the cracks when there hasn’t been much change in the owners and new people are not coming into the mix is not surprising.

What has surprised me though, over the years is discovering that there are whole regions in country New South Wales where there are several owners corporations and management rights businesses that all appear to have missed the last twenty years of strata law evolution. I have encountered buildings where the manager, the owners corporation and even the local strata managers and lawyers have all perpetuated processes that were correct and appropriate years ago but are fundamentally flawed under the current laws. What this means is that when an outsider (who is aware of the changes in law) comes along looking to buy a lot or the manager’s business, it shines a light on a whole spectrum of issues. And with each issue that is unearthed, it can lead to more.

What does a worst-case scenario look like?

The caretaking and letting agreements aren’t valid or enforceable (and haven’t been for years). The manager is doing duties that they aren’t authorised or allowed to do. The manager’s income is significantly under/ over the market rate. The letting appointments are a ticket to the office of Fair Trading and/ or ASIC waiting to happen. The owners corporation levies aren’t enough to meet the owners corporation expenditure. The sinking fund is well and truly at the bottom of the ocean. The manager has no business to sell and an overpriced lot.

How can you create a worst-case scenario?

As easy as copying and pasting what was used the last time.

Owners corporation meetings, management agreements and letting appointments are all mistakes waiting to happen when changes in the law are not considered and applied.

Although it may seem convenient, easier or cheaper to turn a blind eye to adopting new ways and doing things the long way, there is a real risk that all you are gaining is a guaranteed problem in the long term. Unfortunately, some problems don’t have easy or desirable solutions and only a lesser of two evils might be available. But at least by being proactive, you have the potential

to find a solution before the sky is falling and you have deadlines that are out of your control.

If “rinse and repeat” has been the mantra of your business or owners corporation for more than five years, I strongly recommend you stop and take a moment to consider what is being repeated – as there is a very good chance that in one way or another the law has changed.

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.

Committee meetings

specifically allow for informal committee meetings, there’s nothing preventing committee members from informally discussing body corporate issues.

Committee meetings and their decisions are centred around transparency and accountability which is why there are legislative requirements to be adhered to.

Keep in mind that committees are a group of owners, or their representatives, who volunteer their time and are entrusted with managing the operation and decisions of a scheme.

In this article, we will break down the different types of committee meetings and the processes that need to be followed.

This information does not apply to Two-Lot Scheme Modules or Small Scheme Modules. More information on these modules is on our website.

Informal committee meetings

Our office is often asked if committees can hold informal meetings. While the law doesn’t

However, during any informal discussions, no decisions can be made, because several important legislated steps for calling a formal committee meeting must be adhered to.

The following steps must be taken to ensure the committee is transparent about decisions.

Types of meetings

For a committee to make decisions, a formal process must be followed. Committee decisions can be made:

• physically at a formal meeting or;

• by a vote outside of a committee meeting (commonly referred to as VOCM or Flying Minute).

Committee meetings

Several rules must be followed to convene a ‘properly called’ meeting. Committee meetings can be called by:

• the secretary;

• chairperson, or;

• any committee member with the agreement of enough members to make a quorum

The secretary or, in their absence, the chairperson, must call a committee meeting if enough members (to form a quorum) make a written request. The meeting must be called within 21 days of receiving the written request.

Owners must be informed of an upcoming meeting because this will allow owners to make plans to attend and make them aware decisions will be made.

The notice and the agenda of the meeting must be sent to all owners and committee members at least seven days before the meeting.

As little as two days’ notice can be given, providing the committee had previously voted to shorten the notice period, or enough members agreed in writing before the meeting was called.

The committee is allowed to choose where the meeting is held, however, objections can be raised if it is more than 15 kilometres from the scheme’s land. It is important that as many members as possible can attend, so conducting a meeting near the scheme’s land would optimise attendance.

A quorum is at least half of the voting members, and it is needed for a meeting to proceed.

If lot owners or their representatives want to attend a committee meeting, they need to give at least 24 hours written notice to the secretary and can only watch the meeting and only speak if invited.

The committee can ask a lot owner to leave a meeting for certain items on the agenda.

VOCM / Flying Minute

Committee members are busy people and many investors/ owners live remotely from the scheme, which can make it difficult for them to attend a physical meeting. Therefore, voting outside a committee meeting is a popular decisionmaking method. This process is more efficient because decisions are made in writing and do not require a physical presence.

To ensure owners know what is occurring and the motions being considered, a copy of the notice must be simultaneously circulated to lot owners and committee members.

Contrary to a common misconception, there is no provision within the legislation that allows a body corporate to pass the costs of a VOCM onto an owner or occupier, even if the motion for consideration may solely benefit that person.

In the matter of Lenvilla [2018] QBCCMCmr 146, where a lot owner was charged a fee for a pet application to be considered by the committee, the adjudicator upheld that the lot owner should not be liable for this charge.

The body corporate manager at the time stated, “The $65 fee has been charged to the application as it is not a body corporate expense but an individual owner expense”.

The adjudicator determined that the applicant was asking for a decision of the committee as per a by-law and was not wishing to purchase a service or product from the body corporate manager. In emergencies, verbal or other appropriate communication methods can be used for notice and voting. The decided motion must be shared with all committee members and lot owners as soon as practicable.

A record of the outcomes of the VOCM, including any emergency votes, must be confirmed at the next physical committee meeting and included in the minutes.

Decision making

When an owner wants the committee to make a decision, they must submit a motion for consideration. The legislation requires that the committee need to consider a motion within six weeks of receiving it.

If the committee needs more time, it must inform the owner but cannot take longer than another six weeks to decide. If the owner does not receive a response and the decision period has lapsed, the motion is deemed to have not been passed.

For pet applications the timeframe for a decision is only 21 days from when the committee receives the request for an animal. If the applicant does not hear back from the committee the animal is deemed to have been approved.

Each committee member, whether executive or ordinary, only has one vote – even if a member holds multiple executive positions. For a motion to pass at a committee meeting, the majority of the votes cast by those who are present must be in favour of the motion.

For VOCM, committee members must return votes within 21 days.

Committees are a group of owners, or their representatives, who volunteer their time

For a motion to pass at a VOCM, the majority of voting members on the committee must agree to the motion. If a majority of votes have not been received and no decision has been made within 21 days, the motion is considered not to have passed.

Example of Quorum v VOCM decisions:

If there are seven committee members and five attend a meeting a quorum has been achieved. The meeting can proceed.

In the instance where a motion is being considered and one committee member declares a conflict of interest and abstains and another member owes a debt to the body corporate and is unable to vote, a motion can be passed by a majority of votes (2-1) of the remaining three committee members.

However, VOCM votes are counted differently and the threshold for passing a motion is much higher than a physical meeting. If we take the same motion, but this time it is

considered by VOCM and two members don’t return a vote, two members can’t vote because of a debt and a conflict of interest, leaving three voting members who vote two for and one against. In this case, the motion does not pass.

This is because there is a higher threshold to pass motions by VOCM.

Committee meeting minutes and records

The minutes, or record, of any committee decision, must be completed and circulated to all owners within 21 days of the decision, regardless of how the decision was made.

The minutes need to be a true and accurate reflection of what occurred and are usually sent by the secretary or the body corporate manager. Minutes do not need to include a word-forword transcript of the meeting. The information that the minutes and records of VOCMs must contain are in section 71 of the Standard Module

regulation and include, but are not limited to, the time and date of the meeting, names of those present, words of motions to be decided and the number of votes for and against a motion.

Notice of opposition

Under the Standard Module, once the minutes are sent to all owners the notice of opposition period commences. The opposition period gives owners seven days to oppose a decision.

To oppose a decision, at least half of the owners of the scheme must submit their opposition in writing to the committee. The committee should not act on any decision until the opposition period has ended.

Committee decisions can have a significant impact on a body corporate, lot owners and occupiers. Therefore, complete transparency with all members of the body corporate is recommended.

Remember that our information service is here to answer your questions. Call us at 1800 060 119 or submit your question through our online enquiry form found on our website.

This article is general information only and not a substitute for legal advice.

For more details on bodies corporate in Queensland, visit our website.

Nathan

Eades:

A career in high gear, from Red Bull to Ras360

By Grantlee Kieza, OAM Industry Reporter

Nathan Eades entered the workforce in the early 1990s with a part-time job serving up cheese toast and potato skins at the Kenmore Sizzler in Brisbane’s west. He was in Year 10 then, but many years after starting at the familyfriendly restaurant chain, he developed a keen interest in big deals in management rights. He is now the National Director at Ras360.

After eight years at ResortBrokers, Nathan joined Ras360 in April, heading the company’s accommodation division and overseeing sales of management rights, hotels, motels, pubs, and holiday parks. He is a two-time winner of ARAMA’s Broker of the Year Award. Among the properties he is marketing is the leasehold interest and franchise sale of the highly successful Quest Breakfast Creek for $6.975 million, with a reported net profit of $1,809,623 for the 12 months ending in May 2024, plus an additional net profit of $31,501 from permanent letting. At Alexandra Headland, Nathan offers the prime shortterm, holiday management rights at the renowned Alex Seaside Resort for $2.89 million and the management rights at the Park Edge View at Springfield for $2.23 million. His executive role in property is a far cry from his days filling the salad bowl at Sizzler, but it comes after three decades of significant sales and

“I am steadfast in my belief in the strength of the industry...”

marketing roles in Australia and overseas. Nathan joined Ras360 following an approach from the company’s Managing Director, Chris Jones.

“Chris spent the last four or five years getting the residential business thriving at Ras360, and while the management rights business had been steady, he wanted a complete refresh, to take on the world, as it were. It’s an exciting opportunity in a great industry,” Nathan said.

Nathan was born in Sydney and moved to Albury at age eight before relocating to Brisbane at 13. “I call Brisbane home because I spent my teen years here,” he said. “I worked in hospitality for many years before joining the energy drink company Red Bull in 2002. I worked for the company for about 10 years in various roles throughout Australia and overseas. I probably had eight jobs at Red Bull, but they were all within the same company, which kept things fresh and exciting for me.

“In 2005, I was sent to Japan with Red Bull to launch the product there. My boss, appointed as the launch manager, called me late on a Tuesday night to tell me to pack, and I was on a plane to Japan by Sunday.

Nathan and Mindy holidaying in Italy

I didn’t know how long I would be staying, but I was there for about two years before returning home for national roles in the Sydney office. I look back with fantastic memories from my time in Japan, but every day was a grind, and I felt isolated and disconnected. However, from a business perspective, I learned more in those two years than I probably ever will.”

Queensland, the Darling Downs, Tara, Miles, and Chinchilla.

I got to know Ian Crooks through that. I had probably just exhausted myself in the liquor industry, and it was time for me to try something completely new. So, I signed on at ResortBrokers. I loved my

too much and started aff ecting my work and everything else because the training takes up so much time. I’ve put the bike away and am now a golfer, playing at the Brisbane Golf Club in Yeerongpilly as often as I can.”

When Nathan wanted to return to Brisbane in 2010, there was no opportunity with Red Bull, so he joined Lion Nathan (brewers of XXXX among other brands) as a state manager. “It was a senior role and a big step up for me, but I loved it,” he said. “Then I got a call from Rekorderlig (a cider company) who off ered me more money to manage their business as Queensland state manager for 12 months. Coca-Cola had already purchased the rights to the business, so I headed that up before working at Coke as Queensland sales manager.”

Then, over a red wine or two on a State of Origin night, Nathan reconnected with a team member from ResortBrokers. Many years earlier, Nathan had met the Crooks family, owners of ResortBrokers, through a charity bike ride in western Queensland. “My father and a couple of other businessmen in Brisbane used to organise this bike ride, and I got roped into riding one year through western

time there and won the ARAMA Broker of the Year twice, which was a thrill. I spent eight and a half years at ResortBrokers, and now I’m excited about the new challenge at Ras360. This role is incredible, and I’m thoroughly enjoying every moment.”

The long and winding road through western Queensland inspired Nathan to train for Ironman events. “I played Aussie rules when I was living in Sydney, and I was a keen athlete doing Ironman for a few years,” he said. “I pushed my body to its limits and was proud of my achievements, but it became

and parks in my previous

in management rights, so there, and every deal is unique. fascinating

something new that you encountered

Nathan is making his biggest drive, though, in management rights. “I own a couple of small caretaking-only management rights businesses myself, so I am steadfast in my belief in the strength of the industry,” he said. “They are secure investments – there’s not much that can go wrong. I’m lucky to have sold hotels, motels, role at ResortBrokers, so I’ve experienced diff erent asset classes. There’s a big turnover in management rights, so there is always business out there, and every deal is unique. It’s fascinating because no matter how long you’ve been around, every deal will involve haven’t encountered before.

“I’ve learned that knowledge and experience are your biggest assets, but in management rights, you’re always learning.”

Nathan recieving the Sales Broker of the Year Award at the 2021 ARAMA TOP Awards

They just don’t give up!

A few years ago our industry repelled an attack from certain academics and lawyers with an anti-management rights agenda who had been pushing a disingenuous theory that any management rights agreement can only ever be “topped up” once.

That of course is contrary to the long-established industry practice for managers to top-up the term of their management rights agreements every five years or so, and even more often in the case of agreements subject to the Standard Module’s 10 term limitation.

Regrettably, the issue has raised its ugly head again in a complex on the Gold Coast where our protagonists, the Unit Owners Association of Queensland (UOAQ) through one of its executives who owns a unit in the complex, has applied to the Body Corporate Commissioners Office seeking an order that a top-up is invalid. Once again, we find ourselves having to defend against this attack that seeks to cause confusion and disputation. As before, those who are pushing the argument do not seem capable of accepting the will of the owners. After all, any top-up can only ever happen if a majority of voters at a general meeting

vote for it and if that is what the majority want, why not accept it?

The proponents of the theory rely on a misconceived interpretation of a particular section of the particular wording is:

The body corporate may subsequently amend the engagement to include a right or option of extension or renewal (a subsequent right or option) only if…. the subsequent right or option is for not longer than five years…

The argument is that the right to include “a” right or option means that there can only ever be one such right or option, and no more. Part of their argument relies on reference in the previous sub-section of the regulation which allows for multiple rights or options of extension or renewal in the initial agreement, in contrast to reference to “a” right or option for top-ups. However, in the context of statutory interpretation such contrast is inconsequential.

It is a principle of statutory interpretation that the words of a statute ought to be given the meaning which the legislator intended them to have. This requires consideration of the actual wording and its context and purpose – not just the Act and Regulations but any extrinsic material.

In considering the actual wording

the Acts Interpretation Act 1954 provides that in any legislation there is a presumption (which may only be displaced by a contrary intention appearing in the legislation) that words in the singular include the plural and vice versa.

The relevant section in the Regulation Modules cannot be interpreted as imposing a singular cap on the number of top-ups, as the substance and tenor of the legislation, as a whole, is not capable of displacing the presumption that singular includes the plural.

It is reasonable to expect that if there was a legislative intention to cap the number of top-ups permitted, it would appear with reasonable clarity from the terms of the legislation itself. By way of example section 130 of the Act (which deals with the statutory review regarding the terms and remuneration of a management rights agreement) states: The contract may be reviewed under this division only once.

If there was a legislative intention to impose a similar cap on “topups,” then arguably a similarly phrased provision would have been included in the regulations. Further, the cap on “top-ups” is inconsistent with the operation of those sections of the modules which preclude top-up motions from being included on the

agenda of a general meeting more than once in any financial year. If a manager was only able to “top-up” their management rights agreement once, then only one motion would ever be able to be considered. If that were the case, there would be no need for these provisions.

The one only top-up concept cannot be reconciled with the purposive and extrinsic material related to the BCCM Act and Regulation Modules. Explanatory notes to the 2003 amendments include these words: However, at any time, the body corporate may grant an extension of the term of the agreement, up to a maximum equivalent to the term limitation. Explanatory notes to the 2020 Module changes are also consistent with the concept of multiple top-ups.

Whilst the issue has not until now been tested by the Queensland courts and tribunals, comments by adjudicators have recognised without question current industry practice. Whilst I cannot envisage the Commissioner’s Office accepting the argument that there can only ever be one top-up, it is unfortunate that this particular manager has been put to the trauma and expense of having to fend off what I am confident would be a futile and unsuccessful attack.

By John Mahoney, Partner, Mahoneys

5 scams to watch out for

By Lel Parnis, Principal, Holmans

ATO tax scams are targeting hard-working Australians via emails, phone calls, and SMS. Here’s how to protect yourself.

ATO tax scams have soared in recent years, targeting hardworking Australians through various channels. Here’s how to spot ATO refund scams and what you need to do if you think you might have fallen victim to scammers.

Tax scam 1: Refund hoax

Scammers have been sending unsuspecting Australians ATObranded emails urging them to click a link to receive a tax refund. In one particular scam, members of the public received phishing emails with the phrase

“You are due to receive an ATO Direct refund.” The ATO issued a reminder to the public that it would never send an SMS or email with a link to access online services. These services should instead be accessed directly by going to ato.gov.au.

Tax scam 2: Fake myGov emails

A scam targeting myGov users has been circulating, prompting a warning from the ATO and Services Australia for the public to be aware of scammers impersonating government agencies. Scammers sent ATO-branded emails to users, telling them, “You have a new message in your myGov inbox – click here to view.”

Tax scam 3: Multifactor authentication email scam

The ATO has reported an increase in scammers impersonating the ATO and emailing the public to falsely advise them of security updates requiring an update to the multi-factor authentication on their ATO account. The scam email includes a QR code that takes the user to a fake myGov sign-in page, designed to steal their myGov sign-in details. The ATO issued a reminder

that it would never send an email with a QR code or a link to log in to online services.

Tax scam 4: Tax time SMS and email scams

The ATO has previously warned taxpayers to look out for tax-time SMS and email scams. Scammers use different phrases to try and trick recipients into opening the dodgy links, such as:

• “You are due to receive an ATO Direct refund”.

• “You have an ATO notification”.

• “You need to update your details to allow your tax return to be processed”.

• “We need to verify your incoming tax deposit”.

• “ATO refund failed due to incorrect BSB/ account number”.

• “Due to receive a refund, click here to receive a rebate”.

Tax scam 5: Social media accounts scam

Scammers have also created fake social media accounts impersonating the ATO across Facebook, Twitter, TikTok, Instagram, and other platforms.

The ATO has previously warned the public about these fake accounts, which ask users to send them a direct message so they can help with their ATO query, in a bid to steal personal details, including phone numbers, email addresses, and bank account information. The ATO reminded users that its only official accounts are on Facebook, X, and LinkedIn. It urged the public to follow only verified accounts and ensure any email addresses provided end with ‘.gov.au’.

What to do about tax scams

The ATO urges the public to always be aware of what information they share. Scammers can use personal identifying information to steal money from bank accounts and commit fraud in an unsuspecting person’s name. The ATO advises that people should never share personal information such as myGov details, tax file numbers, or bank account information.

What should you do if you get scammed?

If you suspect that your personal information, such as your tax file number, has been stolen, misused, or compromised, the ATO advises you to phone 1800 467 033. The ATO will then investigate and place extra protection on your ATO account. For privacy reasons, the ATO may not leave a message unless your voicemail identifies who you are.

How does the ATO contact you?

The ATO will NEVER send texts or emails with links to services. It will also NEVER ask you for your tax file number or bank details via return email, SMS, or social media. If you’re uncertain about any communication regarding myGov or the ATO, check with your accountant. Better safe than sorry.

Fit for purpose

The purchase of any business, including accommodation businesses, is predominantly a financial decision rather than an emotive one. When buying a house, the decision is more likely the opposite, largely emotive rather than financial. Yes, there is a hope that the value of the property will appreciate over time, but this generally does not drive the buying decision. Also, a house is considered a home for a family, or at its most basic level, shelter, rather than a moneymaking enterprise.

Most of those interested in buying a business do so intending to gain financial benefit, make a capital gain, or provide cash flow and/or to give themselves something to do while gaining financial benefit. This financial decision

therefore relies on the trading of the business itself. It may be the case that a certain level of profit needs to be achieved to make it viable, or perhaps that it simply needs to be able to pay for itself while providing self-employment. The financial decision will rely heavily on the trading level the business is producing and the financial data available. Therefore, the most important piece of information to a purchaser is the financial data.

The physical presentation of the property and many other factors play a role, but the first consideration is how the financial data looks. Historical data is what first comes to mind, and many love to look at it on a “trending” basis. Does the line graph track upwards or downwards? The financial status of any business plays the largest role when determining its value. Financial data that legitimately confirms the income, gross profit, expenses, and profitability performance of any business is crucial. Without this in an acceptable format, there’s no reason to worry about anything else; close the book on it. “ABC Motel is the best motel in town. The car park is always full.” So, people say. This may be true on the surface, but if the financial data cannot confirm it, then it may not be the best or most lucrative, or even worth the value it should be in the market. Perception is reality until the financial data comes under the microscope. The presentation of financial data includes how the numbers physically present and the actual dollar amounts. Firstly, presentation seems simple,

but I’ve seen many calculation errors over the years, where the numbers simply do not compute. The total expense amount is less than what the individual expenses total, thereby inflating the profit. Are the seller’s accountant’s supporting documents also attached to the profit and loss statements? Is the spelling of each entry correct? People react to spelling mistakes on a profit and loss statement as they do with an email. If an email has spelling mistakes in the subject line or text, we immediately think the email is spam and discredit it. The same goes for financial statements. We start to question who prepared this profit and loss statement; surely it was not the seller’s accountant? We then question the validity of the statements and the credibility of who prepared them.

Secondly, there are the actual dollar amounts. The income and net profit must be as high as they can be to achieve the highest possible sale value in the market. Therefore, I suggest to every seller that they have their accountant prepare an abridged profit and loss statement. This will present the profit as it should for sale purposes, not for taxation purposes. It will have removed all income and expense items that are particular to the current owner and not part of the business. For example, an owner choosing to pay themselves a wage of $50,000 per annum compared to another paying themselves $5000 per annum has nothing to do with the business; this is generally a taxation or ownership structure-based decision. Simply

put, one purpose of preparation is to write down the profit; the other is to maximise it.

The financial statements prepared for sale must be fit for purpose. Profit and loss statements are generally prepared for taxation return purposes and to that end, include expenses and tax deductions which inevitably present the lowest profit possible, or preferably a loss depending on each party’s individual tax position. Adjustments will then be completed so the abridged profit and loss statement can be utilised for sale, refinancing, or other purposes. If not, a true representation of the profitability of the motel business compared to other motel businesses would not be possible. Conversely, it is also important to ensure that no legitimate operational income and expenses of the business have been removed. Even the most basic due diligence of the financial statements will determine this.

Aside from the profit and loss statements being required by a potential buyer, other financial data will be required. Monthly income reports that include GST will not match the profit and loss statement. If there is consistency in the difference in the GST, the issue can be cleared up quickly. However, if this is not the case, this will create questions about the accuracy and legitimacy of the data. If there are anomalies for a particular reason, it is always best to be upfront and explain why this is the case. Trying to sweep it under the carpet and hoping that the issue goes away will result in trouble.

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

Don’t ask me

By Mike Phipps, Mike Phipps Finance

These days, as I contemplate the ride into retirement, I seem to be spending more and more time dispensing wise counsel. Of course, the ‘Managing Director’ and I have agreed to differ on my definition of wise. She posits that, like Joe Biden, if you hang around long enough, some people will assume an age and wisdom convergence while ignoring demonstrable cognitive decline. I counter that my ability to write the previous sentence is testimony enough to my undiminished mental faculties. It took me two days to finish that sentence, and at some point, it included a reference to a fishing trip, but I digress.

While those receiving said counsel sometimes seem to think I’ve come down from the mountain with a third tablet, mostly it’s just sounding board stuff with a bit of common sense thrown in. These conversations invariably centre around challenges within the accommodation management and strata sectors, with advice

provided pro bono on an allcare, no-responsibility basis. Unlike those who leave their rubbish on the footpath hoping someone will see opportunity in a freebie, I think it’s possible to add real value by simply having conversations grounded in years of industry experience.

When thinking about a problem or challenge, I like the old consulting ploy of stealing someone’s watch and then asking them the time. Most people already have the answers; they just need to go on the journey – unpacking the truth, preparing for the future, acting in the fullness of time, and all those other corporate clichés. The trick is to avoid giving people answers, as there is invariably more than one way to skin the proverbial feline. In fact, I’m working on a book for pet lovers titled “100 Ways to Skin a Cat.” Advance copies will be available soon through quality pet shops.

Recently, I was approached by an owner of a residential strata unit with a topical dilemma. The building had no letting pool, with a resident caretaker manager in place. His unit is valued at around $1.8 million, and the body corporate salary is around $70,000. He’s asked the body corporate to approve the separation of the unit from the caretaking agreement so he can sell the business and

remain residing in his unit. This situation is an example of the increasing requests for conversations we are receiving from committee members and owners in residential strata schemes. These requests usually centre on either the situation I’ve described or the merits of approving agreement top-ups. Alarmingly, many discussions reveal a fundamental lack of knowledge about management rights and, in a disturbing number of cases, even how strata schemes work. That doesn’t appear to be the case in the example I’m going to discuss, albeit the varying views of owners in the scheme suggest a need to think more broadly about the caretaker’s request. It appears that the scheme in question is harmonious, and the caretaker is well-regarded. He has maintained a high standard within the complex and, of his own volition, has created an Operations and Procedures Manual. Interestingly, it appears some owners believe he is an employee and that the intellectual property contained in the manual is owned by the body corporate. Needless to say, we’ve put that one to bed, albeit as an example of a need to better educate owners about management rights contracts. Some owners wish to compel the caretaker to continue;

some want him to surrender the agreement; some seem to think they can resell the agreement; and some are looking at outside month-tomonth contractor options. Based on the information at hand, I think the body corporate should approve the severance of the unit from the agreement and allow the current caretaker to remain as a resident while selling his business. Here’s why:

• The caretaker is held in high regard and is an asset to the strata community in the building. He sounds like the sort of person one might be predisposed to helping.

• The caretaker is wellqualified in maintenance and systems and has agreed to assist a new external caretaker.

• Selling the caretaking business involves someone paying for it. In my experience, paying for the business will create a level of focus and commitment that is unlikely to be achieved by a monthto-month contractor granted the gig for free.

• In the current market, the only likely buyer for a $1.8 million unit with a $70,000 income is someone who wants to live in the

building, not someone who wants to offer caretaking services. The chances are that the outcome will be a fall in standards and disharmony in the scheme.

• The target buyer is likely close at hand. The property is in a popular tourist location with other quality high-rise schemes nearby. One might expect that a resident management rights operator nearby would already have the scale and capacity to offer caretaking services to a neighbour and add a relatively inexpensive cash flow to an existing business.

My views on this dilemma should not be taken as broader support for business-only management rights. The traditional model of a manager residing onsite as part of the strata community has stood the test of time, is highly regarded by lenders, and has underpinned the value of the industry. However, I don’t think we can hide from the fact that rising unit values, increased operating costs, and higher interest rates have made some management rights virtually impossible to sell. In this situation, bodies

corporate need to decide what’s best for the scheme: a stressedout resident manager trapped in a business they no longer want, or a non-resident manager who’s paid good money for a business and is focused on succeeding. By succeeding, I mean doing an outstanding job, impressing the body corporate, and never getting breached.

In closing, I sometimes get the vibe that owners don’t support unit severance because it may result in some financial benefit to the manager. This seems an odd way to assess the situation, as it reflects a desire to somehow punish the manager rather than do the best thing for the scheme. In a perfect world, we’d all like to have a manager living onsite. Owners just need to be pragmatic and look at the whole picture.

Disclaimer: I refer to the catchall word “strata” throughout this article. That’s because we all know what I’m talking about.

A thought: How do we as an industry work to better educate owners and committees in strata schemes?

Understanding body corporate management agreements in Queensland

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

What’s included? What are additional costs, and how can you avoid them?

Owners in bodies corporate (strata) often assume that their body corporate levies are paying the body corporate manager to provide all their services. Conversely, the body corporate (strata) manager is one of the lesser costs in the body corporate budget.

In Queensland, the most common form of engagement is a standard agreement provided to members of the Strata Communities Association (Qld). The SCA agreement varies by each strata company, and each company presents itself differently regarding included and additional services and third-party charges.

The core duties of the strata manager are clearly identified within the engagement agreement’s reference schedule, categorised as secretarial, financial, and administrative duties.

What is included?

Secretarial duties typically include calling, convening, and attending the AGM and a specified number of committee meetings for an agreed duration. These duties also include producing minutes of those meetings and, when applicable, arranging for the

Your body corporate (strata) management company generally costs an owner less than a cup of coffee a week

attendance of a returning officer if a secret ballot/vote is on the agenda of a general meeting.

Included financial duties encompass opening bank accounts for the administration and sinking funds, preparing statements of accounts for each financial year, preparing draft budgets for committee approval to be included on the AGM agenda, issuing notices to owners for payment of contributions (levies), receipt and banking of income, processing and paying accounts, and preparing the scheme’s financial records and statements as required by the regulation module applicable to the scheme.

General administrative duties include paying insurance premiums, obtaining quotations for insurance renewal, establishing and maintaining the scheme’s rolls and registers, and maintaining and making the body corporate records available for inspection.

In summary, included services are the core services every scheme must undertake to comply with the BCCM Act and subordinate legislation

applicable to the scheme. They provide effective operation and record keeping of the body corporate and ensure that the body corporate meets its financial obligations.

What is not included?

All other duties undertaken by your body corporate (strata) manager that are not listed as an included service could be additional services and may incur additional service fees or third-party charges. These potential costs are stated in, but not limited to, the services identified in the engagement agreement with your strata management company.

Additional services include actions such as additional or after-hours meetings beyond those stated as an included service. Preparation, attendance, minutes, and the cost of distributing the notices and minutes will likely be additional costs incurred by the body corporate.

Reminder notices to levy and other debtors and debt recovery services are generally billed to the respective debtor and not usually a cost incurred by the

body corporate unless a debt or fees are forgiven as part of the debt recovery negotiations.

Circulars to owners and residents, compliance inspection notifications, other reminders, non-routine correspondence, newsletters, and legally required correspondence, such as government land valuations, voting outside of a committee meeting notices, and minutes, insurance valuations, etc., are typically additional costs for attendance and distribution to owners.

Additional service fees are identified within the engagement agreement and are in addition to the disbursement fees, which are often a predetermined fixed fee known as recoveries related to undertaking included services.

Third-party costs

Other costs often associated with and forming part of a body corporate management agreement of engagement are third-party costs incurred by the body corporate company and passed on as recoveries. For instance, software licensing fees are often invoiced directly to the body corporate by the third-party

Relationships in business

By Mike O’Farrell, MLR Services

As this is my first edition of “Mike’s Corner”, I thought I would start with the obvious… our industry is challenging!

As caretaking managers, we face an ever-increasing expectation to deliver more to our main client – the body corporate. Old agreements often result in lopsided remuneration compared to the body corporate’s expectations. Interest rates and staff costs are a real issue, and as profit margins are squeezed, our return on investment (ROI) is challenged. Many managers

provider based on a minimum fee and/or a fee per lot basis. These fees include management and voting platforms and an online portal providing owners with access to the body corporate records and other information relevant to their lot. Online voting and owners’ portal access have become an industry standard and an expectation of owners.

How to avoid additional expenses

A building manager working in a proactive and collaborative relationship with the committee can significantly reduce the occurrence of additional fees. For instance, site inspections, quote requests, work orders, voting outside of committee meetings, property inspections, and attendance with contractors might be additional expenses incurred by the body corporate. These potential costs can be avoided if a building manager or a proactive committee attends

3

Key Stakeholders in a Body Corporate

B4B

wanting to sell are finding the value of the real estate within the deal is now an impediment to sale. Phenomena such as “decoupling” are now a reality. Top-ups, once a reward for hard work, are now not so easy. And on it goes…

Am I negative? Well, I do live in the industry and spend a considerable amount of time handling stressful situations, so you might think I am. But I’m not.

to these actions rather than engaging a strata manager.

Similarly, liaison with consultants, engineers, contractors, and facilitating tenders are all potential additional costs that could be avoided or reduced by proactive management by the building manager or the committee.

Attending to non-routine correspondence is often a discretionary action where additional services may be incurred. Strata management agreements generally do not identify what is routine or non-routine correspondence but rather allow the strata manager to apply their discretion regarding a fee for services provided. Some strata management agreements include a fixed fee for attending to all correspondence, while others charge, at their discretion, for non-routine or arduous correspondence. Understanding how and what

These challenges have always existed in some form or another. No matter what industry you are in today, there is pressure on small businesses. The main takeaway is that you are not alone; there is always a helping hand that can work with you and guide you through these times.

Our industry body, ARAMA, has been the go-to when times are tough. Nothing has changed. It never ceases to amaze me why all managers are not

correspondence may incur additional fees presents an opportunity for further savings.

Hint: Clarify with your strata manager and obtain a written agreement detailing how and when additional fees may be incurred, and approved, and options available to the committee to reduce these costs.

In summary

The core services of a body corporate management agreement ensure the body corporate meets its legislative and financial obligations.

All other actions undertaken by your body corporate manager could incur additional costs. However, additional fees can, in many cases, be managed by the committee. The committee should clarify with

members of the organisation. Even if, by some bizarre thought, you cannot see the benefits of belonging to the industry body, you can engage with specialists who can and will guide you through the rigours of management rights.

I always talk about the triangle of management (or the triangle of hope and peace). In the illustration left, the three stakeholders are joined at the hip, and each relies on the other to ensure you have a strong scheme.

If you have a crack in the lines of communication, chances are you will have a dispute. The B4B stands for “Best For Building.” That is often the pacifier when a dispute occurs –always bring the point back to what is best for the scheme. Don’t be the manager who thinks negatively and wonders why the world is against you. If you are, then seek help. I can and will direct you to the right people.

their strata manager options to lessen these costs and identify an agreed approval process for any additional fees that may be incurred. Regardless, additional fees are unlikely to amount to a significant expense unless there is an extraordinary issue being addressed. A general guide would be that all fees payable to a body corporate management firm for the general day-to-day operations, included services, disbursements, recoveries, and typical additional fees, would likely amount to $300 to $400 per lot per annum for schemes over 30 lots. This equates to nominally $7 per lot owner per week or less.

Your body corporate (strata) management company generally costs an owner less than a cup of coffee a week at your favourite coffee shop.

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

Body Corporate (including Commi ee)

(Best For Building)

Body Corporate Manager

Resident Manager

The critical importance of addressing combustible cladding in Queensland buildings Combustible cladding:

By

Cladding is the external lining of a building, intended to provide essential functions such as weather resistance, security, privacy, and aesthetic appeal. However, some types of cladding, particularly those that are combustible, pose significant risks to building occupants. Materials like combustible aluminium composite panels (ACP) and expanded polystyrene (EPS) can exacerbate fires, turning what might otherwise be a manageable situation into a devastating event.

In response to these dangers, the state of Queensland has taken significant steps to regulate and manage the use of hazardous cladding materials. One of the critical regulatory measures is the prohibition of ACP with a polyethylene (PE) core exceeding 30 percent by mass in any new building construction. This ban is part of a broader legislative effort, encapsulated in the Building and Construction Legislation (Nonconforming Building Products – Chain of Responsibility and Other Matters) Amendment Act 2017. This Act aims to eliminate the use of unsafe building products and establishes a “chain of responsibility,” ensuring that non-conforming products are reported and restricted throughout the construction process.

To further bolster building safety, Queensland established the Safer Buildings Taskforce in 2019. The task force’s mandate is to provide the government with advice on policies and actions needed to ensure the safety of buildings across the state. This includes addressing the presence of combustible cladding and offering support to building owners throughout the rectification process. The taskforce’s recommendations are

currently under consideration by the Queensland government, particularly concerning private buildings.

A critical component of Queensland’s strategy to manage combustible cladding is the implementation of the Combustible Cladding Checklist.

This checklist mandates a systematic approach across three distinct stages:

• Cladding Identification

Phase: Private building owners were required to register their buildings by May 31, 2021, identifying whether their properties were at risk due to cladding. By May 2024, over 18,000 buildings had been listed, with approximately 1000 identified as needing fire risk mitigation measures. Note: If your building failed to register by the due date, you can still register now.

• Fire Risk Mitigation

Phase: In this stage, private building owners must implement fire safety risk mitigation measures as outlined in the Building Fire Safety Risk Assessment report provided by fire engineers. These measures must be applied during

the period between identifying the cladding fire risk and completing the necessary rectification. This includes prominently displaying the Form 42 Affected Private Building notice, which informs occupants and visitors of the building’s fire risk status.

• Cladding Rectification

Phase: This phase requires building owners to take concrete steps to rectify the presence of combustible cladding on their properties. The process involves either the complete removal and replacement of hazardous cladding materials or the application of a fireengineered performance solution. This solution must demonstrate that any retained combustible cladding complies with the Building Code of Australia. The rectification work necessitates the involvement of a private certifier, along with various approvals and mandatory certificates. Additionally, referral to Queensland Fire and Emergency Services is required to ensure comprehensive safety compliance.

Lynda Kypriadakis,

The Diverse Group of Companies & DPX Projects

The Queensland government strongly encourages private building owners to undertake these rectifications to mitigate fire risks and ensure the safety of their buildings. Further information can be found at www.housing.qld.gov.au.

Cladding Rectification Works: A Comprehensive Guide

Regulatory oversight

Cladding rectification works involving combustible materials are subject to stringent regulations. It’s imperative for bodies corporate or building owners to engage properly insured consultants for such tasks. At the outset of any rectification project, securing a private certifier during the planning stage is crucial to ensure the works are managed appropriately and comply with all regulatory requirements.

Certification requirements

The rectification process not only involves removing combustible cladding and replacing it with non-combustible alternatives but also certifying the underlying structural framework and water and smoke sealing systems. Every building works contract for cladding replacement must explicitly include framing certification to guarantee regulatory compliance.

Scope of Works

Before requesting quotations, it is important to ensure the full scope of works is documented for the tendering contractors. You will start with the Building Fire Safety Risk Assessment report, which will contain details on the type and extent of combustible cladding that has been identified on the complex.

The building owner or body corporate will also need to provide the As Constructed plans for the complex at the tender and planning stage, along with the Certificate of Classification and Survey Plan. As these documents may take some time to procure if not already on file, the committee for the body corporate is encouraged to take steps to obtain these important documents proactively before any urgent action may be required down the track.

Choosing the right contractor

Building owners often fall

into the trap of selecting the contractor with the lowest bid, only to encounter numerous unforeseen variations postcontract. To avoid such pitfalls, it’s advisable to engage a professional project manager. This individual will oversee the tender process, supervise the works, and coordinate the certification process, ensuring everything runs smoothly. Furthermore, the Private Certifier will provide essential guidance on the necessary trade contractor licenses. For buildings classified under Class 2-9 with Type A-B construction work, an Open Builders License is mandatory.

Insurance implications

Increasingly, bodies corporate are realising that insurers impose specific conditions on policy renewals when combustible cladding is present on the property. Insurers may issue ultimatums to remove the cladding within a set timeframe, and such mandates appear to occur more frequently as time goes by.

Impact on property sales

The presence of combustible cladding may significantly affect the sale price or purchaser desirability of units in affected buildings. Mortgage insurers have notified the finance sector that they will no longer underwrite mortgage insurance for properties identified as Affected Private Buildings. Consequently, owners of such units may face even more challenges when trying to sell, as prospective buyers would need at least a 20 percent deposit to bypass mortgage insurance requirements.

Compensation and legal considerations

A pressing concern for building owners is determining who bears the financial responsibility for rectification. Private building owners are advised to seek legal counsel regarding their property, commercial, and contractual matters, as well as their compensation and litigation rights. Engaging a lawyer with specialised skills

in strata or body corporate law, rather than a generalist, can provide more targeted and effective representation.

By understanding these critical aspects, building owners and bodies corporate can navigate the complexities of cladding rectification works more effectively, ensuring compliance, risk mitigation, and optimal safeguarding of their investments.

Isabella Mansell

Damian Quinn

Master your email marketing

By Chris de Closey, Director,

Direct is best! We’ve all heard it and no doubt most agree that commission-free bookings are favourable. We won’t jump into a direct vs Online Travel Agent discussion in this thread here but we will discuss how to cultivate ongoing, longlasting relationships with your customers.

Understanding

the power of email marketing

Email marketing allows you to present a personalised approach to the customer. It allows you

Email marketing allows you to present a personalised approach to the customer

to communicate with past, present and potential customers and deliver a message that resonates with them, and helps to encourage bookings. When done right, these campaigns not only boost direct bookings but strengthen your guest loyalty, turning one-time guests into repeat visitors.

Segment your audience

The first step in a successful email marketing strategy is segmenting your audience. This involves dividing your email list into smaller, more focused groups based on specific criteria, such as:

• Past booking behaviour: Distinguishing between frequent visitors, occasional guests, and first-timers. If they spend big or stay regularly, they might LOVE the campaign you are offering them.

• Demographic information: Age, location, and interests can dictate the type of offers

or content that might appeal to different segments. Think COVID-19 time (yucky I know – but an easy example here), when NSW couldn’t travel into QLD, would you email a QLD-only special to a NSW customer? Probably not.

• Engagement level: Identifying which subscribers frequently open your emails or click on links can help tailor more engaging content.

Segmentation ensures that the content is relevant to each group, increasing the likelihood of conversion as each email is designed to meet the specific needs and preferences of its recipients.

The absolute KEY to segmentation is ensuring that you capture the data correctly (your PMS should help make this easy, Resly do this via online check-ins). Your front office staff are the ones to drive this data to be correct. If it isn’t it makes your life much harder!

Crafting compelling content

The content of your emails plays a crucial role in capturing attention and driving bookings. Here are some key elements to consider:

• Personalised greetings: Address recipients by name to foster a connection right from the opening line.

• Compelling subject lines: Your subject line is the first impression and decides whether an email is opened or ignored. Use enticing, action-oriented language that speaks directly to the reader’s interests. How many emails have you just deleted in the past because it sounds BORING?

• Visually appealing design: Incorporate attractive images of your property and surroundings. These visuals are what will help make your email POP to the customers.

Switch Hotel Solutions

• Clear and concise messaging: Keep the content focused and to the point, highlighting key benefits or offers. Emphasise what’s in it for the guest. No one wants to spend their free time reading a novel. If it’s too long you can say goodbye to the message you are trying to get across.

Timing your campaigns strategically

The timing of your emails can significantly affect their effectiveness.

Consider these factors:

• Booking patterns: Analyse when your guests are most likely to book and time your emails accordingly. For example, sending an Easter holiday package offer a few months in

advance can capture early planners. Look at your PMS data to see when the majority of bookings come in for the period you are trying to push.

• Seasonal promotions: Tailor your emails to coincide with upcoming holidays or local events that may attract visitors. Think whale watching season or snow season.

• Last-minute deals: For periods of lower occupancy, consider sending lastminute deal alerts to spur quick bookings. Lastminute deals need to be sharp or offer something that makes a booking decision quick and easy.

• Awareness campaigns: You don’t always have to be ‘on sale’ sometimes awareness

can be a key factor to keep you front of mind for customers when they do make that booking decision.

Measuring success and adjusting strategies

To master your email marketing, you need to measure the effectiveness of your campaigns and adjust your strategies based on the data. Key metrics to monitor include:

• Open rates: How many people are opening your emails? Low open rates might indicate weak subject lines or poor timing.

• Click-Through Rates (CTR): Are recipients engaging with the content and clicking on the links provided?

• Conversion rates: How many of the clicks are translating into bookings?

Use this data to refine your approach continuously, testing different messages, designs, and timing to discover what resonates best with your audience. Sometimes your audience might not relate to a message and that’s ok! It’s about changing up to adjust what will work best for your hotel and its guests.

Email marketing isn’t about reinventing the wheel, it’s about understanding what will work best for you and your property. There is a myriad of options out there to help you craft beautiful emails to capture these bookings. It’s never been easier to educate yourself on how to do this and nurture your email database with creative offers, slick content and opportunities to capture more bookings.

Now get out there and give it a go!

Embracing pet-friendly accommodation:

A new market for resorts?

By Sam Steel, Co-Founder, Resly

The hospitality industry has seen a significant shift in traveller preferences and needs in recent years. One emerging trend is the increasing demand for pet-friendly accommodations. As pet ownership continues to rise, so does the desire for pet owners to travel with their furry companions.

32 percent of pet owners have taken their pets on holiday in the past year

This article explores whether hotel managers should consider focusing on this market and the potential benefits of doing so.

The growing demand for pet-friendly accommodations

According to recent statistics from the Caravan Industry Association Australia (CIAA), many travellers are seeking pet-friendly options. Key findings from the CIAA report include:

• 52 percent of travellers consider their pets part of the family and

prefer accommodations that allow pets.

• 47 percent of pet owners look for pet-friendly accommodations when planning their holidays.

• 32 percent of pet owners have taken their pets on holiday in the past year, indicating a robust market for pet-friendly accommodations.

These statistics highlight an apparent demand from a significant portion of the travel market. By catering to this group, hotels and resorts can tap into a

loyal and growing customer base, currently serviced largely by the short-term rental Airbnb market.

Virgin Australia’s new initiative

Adding to the momentum, Virgin Australia has announced plans to launch a new service allowing dogs to travel in the cabin. This initiative, set to begin towards the end of this year, underscores the increasing importance of pet-friendly travel options. As airlines adapt to accommodate pets, it makes sense for hotels to follow suit, ensuring a seamless travel experience for pet owners.

Benefits of offering pet-friendly accommodations

Increased occupancy rates: By offering pet-friendly rooms, hotels can attract a new segment of travellers, boosting occupancy rates and overall revenue.

Customer loyalty: Pet owners are likely to return to hotels that accommodate their pets, fostering customer loyalty and repeat business.

Competitive advantage: Standing out in a crowded market is crucial. Pet-friendly accommodations can provide a unique selling point, differentiating a hotel from competitors.

Positive online reviews: Happy pet owners often share their experiences online. Positive reviews can enhance a hotel’s reputation and attract more guests.

Premium pricing: It has become the norm to charge a premium for the privilege of having your furry companion stay with you, which compensates for additional cleaning fees.

Longer stays: Travelling with pets means guests don’t have to worry about pet sitters or boarding kennels, allowing them to enjoy longer stays with their whole family.

Considerations for implementing petfriendly policies

While the benefits are clear, implementing pet-friendly policies requires careful planning:

Dedicated pet-friendly rooms: Set aside specific rooms for pet owners to ensure guests without pets are not disturbed. This reduces the risk of upsetting guests with pet allergies.

Pet amenities: Provide pet beds, bowls, and welcome packs with treats to enhance the experience. Ovolo Hotels does it well with their “V.I.Pooch” package, which includes pet accessories and a bed in the room. Kimpton Hotels is excellent in this regard, welcoming all dogs, regardless of size or breed, with no extra charge. The whole property caters to them, offering in-room amenities, a special dog toy at check-in, and a list of dog-friendly cafes and services around the property.

Pet bathroom areas: Consider having an area dedicated for pet bathroom breaks, such as a patch of artificial grass on the balcony, providing puppy mats in the room, or even an outdoor grassy area.

Clear policies: Establish and communicate policies regarding behaviour and additional

fees. You can also have your own policies on the types of pets, size, and weight.

Guidelines for pet owners: Have clear guidelines for pet owner expectations, detailing where animals are welcome throughout the property and where access is restricted.

Cleaning protocols: Ensure robust cleaning protocols are in place to maintain hygiene standards.

Practical tips for implementing petfriendly services

Training staff: Ensure staff are trained to handle pets and their owners effectively. This includes understanding pet behaviour, managing any incidents, and providing excellent customer service to the furry guests.

Marketing strategies: Highlight your pet-friendly policies and amenities in marketing materials. Use social media, your hotel website, and dedicated pet travel platforms to showcase your pet-friendly services.

Partnerships: Partner with local pet service providers such as groomers, pet-sitting services, and pet-friendly cafes. This adds value to your guests’ stay and enhances their overall experience.

Feedback and improvement: Regularly seek feedback from pet-owning guests to understand their needs better and continually improve your services.

The rise in pet ownership and the increasing desire for pet-friendly travel options present a lucrative opportunity for properties. By embracing this trend, hotels can attract loyal customers, increase occupancy rates, and stand out in a competitive market. With careful planning and execution, offering pet-friendly accommodations can be a profitable and rewarding venture for any hotel or resort.

As the travel industry evolves, pet-friendly accommodations will likely become an expected standard rather than a unique offering. Early adopters in the hospitality industry will benefit from capturing this growing market segment and establishing themselves as leaders in pet-friendly hospitality.

Give, give, give. Then ask

By Kelley Rigby, Managing Director, Lett s Group

Happy August, everyone!

As we reflect on the ARAMA awards night that has come and gone, it’s safe to say that there are some ecstatic winners out there. No doubt the excitement surrounding the event is still palpable, with everyone still talking about how incredible it was, as it is every year.

Now, let’s delve into the topic of this month’s article – a book that I am currently engrossed in. Well, that’s a bit of an exaggeration; as a busy parent to a four-month-old, two-year-old, and four-year-old, along with stepdaughters aged 17, 15 and 12, and managing two businesses, I barely have time to read. Instead, I have been immersing myself in an audiobook by Gary Vaynerchuk titled “Jab, Jab, Jab, Right Hook.” Although it is one of his older works, the insights presented are truly invaluable.

The essence of the book revolves around the concept of giving to your clients or potential clients, with the jabs symbolising the act of giving and the right hook representing the “ask.” Though the term “ask” may seem off-putting, it essentially refers to presenting your services as an onsite property manager in a tactful manner.

In a world inundated with individuals seeking to take, be the one who gives. In our industry of management rights, this philosophy holds significant

relevance. When marketing to grow your letting pool, consider employing the “Jab, jab, jab, right hook” strategy. Start by offering valuable information to your externally managed investors, perhaps regarding the complex or recent legislation changes. Follow up with assistance regarding their unit or tenant, showcasing your dedication to their needs. Lastly, engage in discussions about the rental market, highlighting your successful endeavours with other properties. It’s important to reiterate this point: these “jabs” should primarily be conducted through phone conversations. Remember, tone cannot be conveyed through text alone. This lesson was learned the hard way in my own business; while emails are undoubtedly useful, they are most effective once a relationship has been established and the recipient has gained some familiarity with you.

After providing these externally managed investors with valuable information, updates, and assistance, the next step is to deliver the “right hook”, this is the perfect moment to introduce your services. Talk to them about the benefits, both financial and ease, of your onsite management service. In this pitch, please remember one important thing: never speak negatively about your competition. This approach rarely leads to positive outcomes and can create a negative impression. Instead, focus on highlighting your strengths and how you can provide assistance to them.

By approaching potential clients with a well-rounded approach that emphasises giving before asking, you are more likely to establish a meaningful connection. Remember, building relationships built on trust and value is key in a world saturated with sales pitches. In summary, don’t rush into the sales pitch. Instead set the stage with generosity and support, and watch your letting pool and relationships flourish.

From Botswana to the Gold Coast: My journey to management rights

Moving across the ocean from landlocked Botswana in Southern Africa at a mature age is never easy. Deciding where to stay, what career to follow, and where to establish a business were some of the challenges I faced.

I hailed from an expansive, happy, and content working life. I owned and managed a variety of businesses, including a full-service marketing agency, waste management, property management and investment, a personnel agency, a consultancy company, mentoring, and lecturing. I had also gained experience in radio and television presenting and media writing. However, a common thread that ran through all these businesses was a passion for property.

Based on this passion, I decided to focus the Australiabased business on property. I loved short term rental and investment properties, so this was my automatic preference. My research commenced in Botswana, and the term “management rights” popped up in every search. This was a foreign term, one that had no meaning and one I had not heard before.

A Google search for management rights unearthed: “Management rights refer to a business model in which an individual or company purchases the right to manage and let out units in a residential or holiday complex on behalf of the property owners. This involves the manager living onsite or nearby and handling the day-to-day operations, including maintenance, tenant relations, and administrative tasks. The manager typically earns income through a combination of management fees and letting commissions.” This sounded like the perfect business.

Once my decision was made, the search began. I contacted a large variety of management rights agents and the picture painted was one of an unbeatable lifestyle, fun in the sun, and a great return on investment. Here is one of the hundreds of amazing statements made

about management rights:

“This lucrative industry offers lifestyle, security and high returns. It is a unique business opportunity and how you and your family can secure your future, living a quality lifestyle.”

Sounds too good to be true? You know the saying… and so the journey began.

Upon arrival on the Gold Coast, accommodation was booked in Kirra, Burleigh, Broadbeach and Labrador. Areas south and north of these locations were explored and investigated, accompanied by experienced management rights agents. Over 30 management rights buildings were viewed. After the investigation process, I decided to position the business in Broadbeach. This area was central, offered a wonderful lifestyle, restaurants, the casino, conference centre, and was on major transport routes.

By Marion Simon, MLR Manager, Boulevard North Holiday Apartments

Boulevard North Holiday Apartments

Sounds easy? Buying management rights in Broadbeach was a challenge in itself because they seldom come on the market. But, with the aid of an active agent, the management rights for Boulevard North Holiday Apartments were secured off-market.

My husband Chris had remained in Botswana to conclude a consulting assignment, so living, starting, and learning the business filled my every waking moment for the next six months until Chris joined me in February 2020. He arrived in Australia one week before the borders closed for the following two years due to COVID-19.

Five years later…

The experience has been life-changing!

Here is what I have learned:

• What is said, more often than not, is untrue. You must investigate, investigate, investigate.

• The management rights industry is operated by the most wonderful, resilient, caring people.

You need the stealth of a cat, the resilience of an oak tree, and the ability of a tightrope walker

Find them and form your industry family.

• It is an industry that has very high ups and very, very low downs. Remember, everything will change, end, and improve; the current situation is only temporary.

• The hardest lesson for me is not to take ANYTHING personally! There are awful people in every walk of life, and for some reason, there seems to be a double dose in the management rights industry. Do not allow their behaviour and moods to aff ect you and the amazing industry that we are privileged to operate in.

• Working with bodies corporate, owners, managers, guests, and the public is the lifeline of the business. You need the stealth of a cat, the resilience of an oak tree, and the ability of a tightrope walker. You need to love variety, daily challenges, and the opportunity to grow.

Boulevard North Holiday Apartments was honoured to be awarded the ARAMA 2023 Resident Manager of the Year award. What an honour, what a privilege. To be recognised by our peers in the industry, an industry that is often hard and uncompromising, was beyond description. The

annual ARAMA TOP Awards are a fantastic opportunity to interact with the other warriors in our industry, to network and to build the industry family that is so needed.

In closing, would I change anything about the past fi ve years or the decision to enter this industry? The resounding answer is no. Would I make changes, are there regrets or missed opportunities? Absolutely, but that is the wonderful challenge and opportunity that is life. Living each minute with the very best intention, with care and gratitude, is our mantra. Making mistakes is how we grow.

Boulevard North Holiday Apartments

Tropical North Queensland rebounds: Business travellers and sporting events drive recovery

By Sarah Davison, Industry Reporter

For tourism and accommodation operators in Tropical North Queensland, the start of 2024 brought significant challenges as the region felt the impacts of Tropical Cyclone Jasper. While tourist numbers have begun to recover with accommodation operators welcoming back guests and the Captain Cook Highway reopening, the current cost of living crisis is affecting Australia’s holiday plans.

Tourism Tropical North Queensland Chief Executive Officer Mark Olsen noted that interstate school holidays had helped to lift occupancies to more than 70 percent across the region, although the cost of living had an impact. “Winter school holidays are the peak visitation time for Tropical North Queensland, but the cost of living has impacted numbers this year,” he explained.

Business travellers and major events

Business travellers and conferences are providing a valuable boost to the local economy. According to the International and National Visitor Surveys for the year ending March

2024, business visitors to Tropical North Queensland grew by 10.5 percent to 473,000, with a record 2.3 million nights. “Business events pushed occupancies above 60 percent in May, with large conferences such as Cairns in Cannes delivering high-value visitors to the region in the shoulder season,” Mr Olsen said.

Additionally, major sporting events such as Crankworx Cairns and Ironman Asia-Pacific brought additional visitors to the region during May and June.

International tourists

The International and National Visitor Surveys showed total international visitor nights for Tropical North Queensland reached 5.4 million, 78.4 percent of 2019 international visitor nights. While international tourists have not returned to pre-COVID levels, the average length of stay has increased in all major international markets. Europe remains Tropical North Queensland’s largest international market, with 116,000 visitors staying 1.3 million nights. Although visitation is down 27.1 percent from 2019, the average length of stay has increased by 0.7 nights to 11.3 nights.

The average length of stay for the North American market increased by 0.2 nights to 5.8, with 103,000 visitors (down 21.9 percent) staying 592,000 nights. Japan contributed 84,000 visitors (down 25.1 percent) with 424,000 nights, an increase of 0.2 nights to an average length of stay of 5.1 nights. However, there were only 16,000 visitors from China, a 91.9 percent decrease from 2019, contributing to the overall decline in total international visitor numbers.

Mr Olsen highlighted the promising growth in these markets and anticipated further increases with new international flight services. “International markets have been growing and will continue to do so as flight capacity increases with new services from Hong Kong, China, Christchurch, and Bali secured,” he said.

Despite the cost of living crisis impacting the domestic tourism market, the climate of Tropical North Queensland continues to make it a dream holiday destination for those living in the southern states. “Driving holidays remain popular with domestic visitors who are escaping the southern cold and enjoying our warm, sunny weather to explore Tropical North Queensland,” Mr Olsen said.

Whitehaven Beach, Whitsundays. Photo by Elena Emmy on Unsplash

Hamilton Island; Photo by MC Kontext on Unsplash Hayman Island Photo by Sheila C on Unsplash

Travel insurance:

Your ticket to peace of mind abroad

By Stephen West, Business Development Manager, Interline Travel

In an era where global travel has become more accessible than ever, the importance of travel insurance cannot be overstated.

Whether you’re embarking on a weekend getaway or a monthslong adventure across continents, unforeseen circumstances can arise, making travel insurance not just a luxury, but a necessity. I recently undertook an overseas trip much like any other until I was in Washington and not feeling well. Ambulance plus CT

scan plus four hours of care in the University Hospital totalled: $14,400 Bronchitis on the ship (aren’t I the healthy one!) totalled: $1820 You cannot leave home without travel insurance.

Travel insurance provides coverage for a wide range of unexpected events such as medical emergencies, trip cancellations, lost luggage, and even evacuation in case of natural disasters. While it may seem like an additional expense, the peace of mind it offers is priceless. Medical emergencies abroad can be financially crippling without insurance, often leading to exorbitant bills that far exceed the cost of the insurance premium.

The cost of emergency health care overseas

One of the most compelling reasons to invest in travel insurance is the potential cost of emergency health care abroad.

The USA, Canada, Nepal, and cruise ships are notoriously expensive. Healthcare systems vary significantly from country to country, and as a traveller, you may find yourself in a situation where medical treatment is not only

necessary but also unexpectedly expensive. Without insurance, travellers may be required to pay out-of-pocket before receiving treatment, leading to financial strain and potential delays in care.

Even in countries with more affordable healthcare, being uninsured can pose significant risks. Local medical facilities may not accept foreign insurance or may require upfront payment for services. In such cases, having travel insurance ensures that you can receive necessary medical treatment without the added stress of financial uncertainty.

Choosing the right coverage

When selecting travel insurance, it’s important to consider the specific needs of your trip. Basic policies typically cover medical emergencies, trip cancellations, and lost baggage, while more comprehensive plans may include additional benefits such as emergency evacuation and coverage for adventurous activities like skiing or scuba diving. COVID-19 related claims are not covered in all policies.

Key factors to consider when choosing travel insurance include:

• Coverage limits: Ensure that the policy provides adequate coverage for medical expenses, including hospitalisation and emergency repatriation.

• Exclusions: Be aware of any exclusions or limitations, such as pre-existing medical conditions or activities not covered under the policy.

• Claims process: Familiarise yourself with the claims process and ensure you have access to 24/7 assistance in case of emergencies.

What do you do if you’re travelling and need medical attention?

All insurance companies provide both query lines and emergency lines you can call 24/7 to seek advice. Unless you are in immediate, critical condition, speak with the insurance company and get an email response to any outcome. Carry a copy of the policy details and their phone number along with your passport, COVID-19 certificate, and visa.

Credit cards offer insurance on some cards, but many I have seen exclude cruising, and age-related users, and require a certain expenditure to qualify. The best question I have for any insurance policy is: What doesn’t it cover me for?

The cost of emergency healthcare overseas can be significant, and being prepared with travel insurance ensures that you have access to necessary medical treatment without facing financial hardship. So, before you embark on your next adventure, take the time to explore travel insurance options that best suit your needs. It’s a small price to pay for the assurance that you’ll be covered no matter where your travels take you.

Accommodation Industry Golf Day

Round Three of the 2024 Accommodation Industry Golf Series was held at the Glades Golf Club on Thursday, July 25.

Results

Four Ball Best Ball Competition:

• 1st Place – Mike and Sue O’Farrell – 43 on a count back.

• 2nd Place – John Christopher and Sam Daley- 43 points.

• 3rd Place – Mark Dowley and Haydn Dowley – 42 Points.

A Grade Club Champion: Sam Daley – 38 points.

B Grade Club Champion: Jack Taylor – 36 points.

C Grade Club Champion: Dylan Hort – 34 Points.

Thank you to all the amazing sponsors for supporting these golf days.

Major sponsors: Watt Utilities, Mahoneys, KONE, Platinum Electrical & Air, McAdam Siemon Business Advisors, Rochele Painting, Nator Constructions, Ras360, SSKB and Lannock Strata Finance.

Supporting sponsors: ARAMA, The House of Golf, REI Cloud, and Resort News

For full details of future golf days, contact Tracey Taylor at taylor77@bigpond.net.au

NoVacancy 2024: Where innovation meets opportunity

NoVacancy is back for its sixth year, poised to surpass expectations as Australia’s premier hotel and accommodation industry expo.

Renowned for spotlighting cutting-edge trends and innovations that shape the future of the industry, this year’s event promises to unite industry leaders, decision-makers, and solution providers under one roof.

Event Director, Matthew Gatfield emphasises, “This year, we’ve

dedicated extensive resources to curate an unparalleled experience, uniting top minds, innovative solutions, and advanced technologies in the hotel and accommodation sector. Our goal is to empower resort and accommodation operators to lead amidst industry evolution.”

World-Class Education Programme

NoVacancy stands out with its comprehensive lineup of nine free-to-attend summits, catering to diverse aspects of the hotel and accommodation landscape.

This year introducing NEW summits to the agenda:

• Hotel Leaders Summit

• Revenue & Distribution Summit

• Hotel Sustainability Summit

• Hotel Technology Summit

• People & Culture Summit (NEW)

• Future Leaders Summit (NEW)

• Hotel Marketing Summit

• Small Hotelier Summit

• Design Talks

Highlights for NoVacancy 2024

Women In Accom Breakfast

Returns: This popular event will continue to celebrate the achievements of women while offering networking opportunities and inspirational discussions.

A Room With A View Live Podcast in association with Myma.ai is dedicated to exploring leadership and the hotel industry. For the first time, this podcast will

be live and delving into the latest trends, challenges, and success stories in the field.

Connections Bar in Partnership Torrens University: NoVacancy proudly features cuttingedge interior designs for the accommodation sector by Torrens University students.

Amadeus Content Hub: Explore the latest content and insights from industry leader Amadeus, designed to inspire and inform.

New Event App: Boost your connections before, during, and after the event with our new app, designed to enhance networking and engagement.

This year’s lineup of esteemed speakers includes: Wayne Taranto, Group Director of Operations, Ovolo Group, Sarah Derry, Leadership Advisor, Jeffrey van Vorsselen, Regional Vice President, Operations - Pacific & South East Asia, The Langham.

Images courtesy of Kelly Newhouse, Rei Master

What About Women In?

Brisbane Luncheon

Hosted by Accom Valuers, Alison Sun will lead an open Q&A session, providing valuable insights on the do’s & don’ts of valuations. Don’t miss it!

• Story Bridge Hotel

• Friday, August 9, 2024.

• 12.30 to 3.30 pm

• $60 pp - canapes and beverage.

A reminder as part of Women In commitment to diversity and inclusivity, the platform was opened to the men in our industry in late 2023. Some women-only events will still be organised.

Gold Coast, Luncheon

Excitement is building for the upcoming Gold Coast luncheon, hosted by Bobo Qi and Darren Brent from Property Bridge, the winners of the ARAMA 2024 Top Awards Sales Brokerage of the Year. They will discuss industry trends and share tips on preparing for buying and selling resorts. Come along for a day of collaboration and fun while gaining valuable industry knowledge.

• Surfers Pavilion

• Wednesday, August 21, 2024

• Canapés and beverages

• 12.30 to 3.30 pm

• $60pp

Experts in management rights sales

Australia’s foremost management rights sales agency, with 15 years of expertise and a dynamic team of over 15 agents strategically positioned along the vibrant expanse of the east coast, we bring unparalleled expertise and dedication to every client interaction. mrsales.com.au | 1300 928 556

Working together, working for you

Experts in accommodation sales

National coverage and expertise in the sale of motels, hotels, caravan parks, pubs & MHEs tourismbrokers.com.au | 1300 512 566

The Accommodation Conference, designed to improve the way you operate your accommodation business.

• October 8 & 9, 2024, Star Casino Gold Coast.

• Keynote speaker Shaynna Blaze.

• Industry panels, HR and marketing workshops, expert speakers and more…

• Learn how to drive demand, increase market reach and create efficiency in your accommodation business.

For more information please visit accomcon.com.au.

The Best of Tourism Awards AccomCon

Celebrate the best in the industry at The Best Of Tourism Awards ‘Secret Garden’ themed annual gala.

• October 8, 2024, Star Casino Gold Coast.

• Seven awards up for grabs including: Business of the Year, Industry Ally, Manager of the Year, Female Leader, The One to Watch, Innovation Award and the Community Spirit Award.

• Nominations are open to anyone and any business operating in the tourism sector, throughout Australia.

For more information please visit thebestofawards.com.au.

Keep reading for more listings... Southport QLD ID: 9134

Management Rights Net: $501,060 Price: $3,828,000

Buying or selling?

The 2024 TOP Awards

A record number of guests gathered at Sea World on the Gold Coast on July 23 to celebrate top talent in management rights. The night showcased everything wonderful that our industry offers and recognised the most outstanding achievers in the MLR field from a diverse array of stellar entrants. It was the biggest and best TOP Awards yet, featuring new award categories. This year, ARAMA partnered with Nick Buick and his team at The Onsite Manager to institute the People’s Choice Awards.

Regional Victoria

Exclusive | Premier Location ID: 9136

Asking Price: $2,100,000 Net Profit: $469,616

Andrew Cronin 0433 091 971

QLD

Permanent | 3-Bedroom Townhouse ID: 8244

Asking Price: $1,200,000 Net Profit: $133,011

Bill He 0439 288 960

Waters QLD

8562

Permanent | Close To The Broadwater

Asking Price: $2,999,000

Profit: $299,000

Gerard Dixon 0433 617 515

Gold Coast QLD

Holiday | High Net Resort ID: 9147

Asking Price: $2,790,000 Net Profit: $375,170

Phil Trimble 0418 478 966

Elanora

Biggera

South

OFF THE PLAN MANAGEMENT RIGHTS

RCA EXCLUSIVELY PRESENT FOR SALE THE BRAND NEW MANAGEMENT & LETTING RIGHTS

+ Developed by Peet Ltd

+ Brand new 82 total townhouse lots in Nudgee

+ Stage 1 currently due for completion this coming September/October 2024

+ Body corp caretaking salary of approximately $127,100 ex gst per annum

+ Permanent only business

+ Brand new agreements as you are buying o the plan from the Developer

+ Great location in Nudgee on Brisbane’s Northside

+ Optional Manager’s Residence to buy from $750,000

Don’t miss out on this incredible brand new o the plan opportunity, request information memorandum for more detailed information on this property.

BUSINESS $650,000 + GST + OPTIONAL MANAGERS LOT

EXCLUSIVE AGENT

Eric Brizuela RCA Management Rights

P | 07 3554 0040

E | rca@brizcorp.com.au

W | brizcorp.com.au/rca

LITTLE EAGLE NUDGEE BY PEET LTD

Enviable Lifestyle with a Reliable Cashflow

$400K MR Business + Offers over $1.375M Villa

Morala Avenue, Runaway Bay, QLD

Ideal for a semi retired couple or for a young family seeking a reliable second income stream, this stunning, waterfront, 3 bedroom villa with caretaker’s salary is exactly what you are looking for!

Holiday every day with “east-to-water” views over your own pontoon and wide-water canal. A superb location within Runaway Bay, a highly desirable family locale. At Mornington Quays you will be surrounded by greenery and water aspects giving a feeling of privacy with tranquility. Easy access to public transport, Runaway Bay and Harbour town shopping centres along with many restaurants, coffee shops and local schools, all within a short walk or drive.

Villa Features

• Master retreat with walk in robe, spacious ensuite with double vanity and shower

• Two extra generous sized bedrooms with built in robes

• Chef’s kitchen with granite bench tops and an electric cooktop

• Spacious upstairs lounge with panoramic view of the wide canal water

• Three separate living spaces throughout the residence

• Decked and paved waterfront outdoor entertaining area including deck lounge, dining and occasional / reading nook

• Two split reverse cycle air conditioning units

• High ceilings, quality window fittings & large floor tiles

• Shared pontoon with power & water to accommodate a large boat

• Double lockup garage and adjacent visitors parking

• Downstairs powder room

• Body Corp Levies - $1,849* quarterly

• Council general rates - $977* bi-annually

• Council water and sewer rates - $415.18* quarterly

Complex Features

• Only 10 minutes to The Broadwater and only 20 minutes to the Seaway

• Marina Boardwalk

• Tennis court and cabana

• Pool

• Pet friendly complex

Management Rights business

• $88,988pa* (ex GST) current Caretaker salary

• No fixed hours; Do the caretaker’s duties on your schedule

• Salary review annually - CPI mechanism every September

• Long term Caretaker agreement (expiry 28 September 2033)

• No letting pool however your discretion to develop onsite letting

• 35 villas / lots in complex

• Supportive committee with committee meetings historically only 3 times a year *Approx.

– Mike & Chee, Southport, QLD Thinking of selling? Contact Craig now for an obligation

“We were dealing with another agent before Craig and we were so pleased with how responsive and professional Craig was. He had excellent communication and really took the time to help us get the best outcome. Thank you Craig!”

Palm Beach Lifestyle +

Palm Beach, Gold Coast, QLD

Ideal for a semi retired couple or for a young family seeking a reliable second income stream, this stunning, two bedroom, two bathroom apartment with caretaker’s salary plus letting income is exactly what you are looking for!

Holiday every day with a short stroll from your ground floor apartment to the sand and surf of Palm Beach. A highly sought after locale, Palm Beach continues it’s evolution an what is undeniably a renaissance era. Easy access to public transport, GC International Airport, shopping centres along with many restaurants, coffee shops and local schools, all within a short walk or drive. Proximity to the M1 makes accessing northern NSW a breeze. At Beach Palms Resort you will be surrounded by greenery and abundant water aspects giving a feeling of privacy with tranquility in the midst of the PB action and vibe.

Apartment Features

• Master retreat with walk in robe, spacious ensuite

• Generously sized second bedrooms with built in robes

• Chef’s kitchen with granite bench tops

• Spacious wrap-around balcony with highly desirable north-east aspect

• Split reverse cycle air conditioning units

• Quality window fittings & floor tiles

• One secure basement car park with ample onsite visitors parking

Complex Features

• Pool

• Sauna

• BBQ area

• Games room

• Landscaped grounds

• Pet friendly complex

Management Rights business

• $162,026* Net Operating Profit (year end 31 January 2024)

• Long term Caretaking and Letting agreements to 1 October 2044 (20+ years remaining)

• No fixed hours; Do the caretaker’s duties on your schedule

• Salary review annually - CPI mechanism every November

• 28 lots in complex with 16 units in the holiday letting pool

• Upside potential to grow letting pool within the complex

• Front desk and seperate office

*Approx.

MOTELS & OTHER

Multiples down but hopes up in North Queensland

By Grantlee Kieza OAM, Industry Reporter

Broker Antonio Curulli says he has sold more North Queensland Management and Letting Rights (MLR) contracts in the last six months than in the previous three years. After a slow spell, business is looking sunny. Curulli is dropping business multipliers to create bigger returns for prospective buyers. Despite the challenges of cyclones, COVID-19, and rising interest rates, North Queensland still offers more value for MLR investors than almost anywhere else in Australia.

“Management rights were pretty much on the nose after COVID-19, with the holiday market being fickle and the threats over accommodation modules cutting terms,” said Curulli, broker at MR Sales. “But there was pent-up supply that came onto the market, and we’re seeing some good-value properties with annual profits of $300,000 to $500,000 and multiples in the threes, showing a 30 percent return. Properties in North Queensland with a four-plus multiple aren’t getting much of a look-in at the moment, but there are a lot of properties with multiples of three. They’re the ones we feel are good buying for people.

“Some rights holders in North Queensland have done quite well with rising real estate prices – some real estate has gone up 50 percent since COVID-19. This gives us a chance to revalue the property. We’ve been able to adjust the numbers so vendors could get their asking price while offering a much more competitive business valuation on the management rights.”

Cameron Wicking from Mike Phipps Finance has been speaking with clients in Townsville and says they are upbeat. “They think that the last two and a half years have been very strong – the best they have had in the 10-plus years they have been operating in Townsville – off the back of investment into the town and surrounds,”

Wicking said. “The government has increased spending for defence, and the Star Group has just completed building the largest tavern in Queensland in Townsville, so there is an air of optimism within the community that things are looking up. They shared a similar sentiment regarding Airlie Beach and Cairns benefiting from government-subsidised flights, but also noted that they think bookings have dropped off since then for these two areas.”

Port Douglas had a rough six months after Severe Tropical Cyclone Jasper just before Christmas, but Mike Phipps, Director of Mike Phipps Finance, shares the optimism of Matthew Cork, president of Tourism Palm Cove, that the region has a sunny future. The government provided subsidised flights to assist in getting people back to Far North Queensland after Jasper, but Port Douglas missed out on the benefits, as the flights were direct to Cairns, and the road to Port Douglas was cut for a long time. Cairns and Airlie Beach both saw a significant boost from this. Cork said forward bookings were softer than they should be for this time of year, with the closure of Bonza Airlines likely having an impact. But while the length of stays might have shortened, he said sentiment around Port Douglas was actually “pretty good” with operators positive about what was on the horizon.

Among those positive operators are Andrew and Cindy Tingate, who were lured to Port Douglas after spending many holidays there. The region was a stark contrast to the frosty, snow-covered Mt. Baw Baw Alpine resort

in Central Victoria, which they managed before moving north. Andrew and Cindy have been running Garrick House for a year and have met many guests, couples and families, who have been holidaying at the property, not just for years, but for decades on end. There are 18 apartments at the property, with 16 short-term holiday rentals in the letting pool, which Andrew said was the ideal size for their husbandand-wife operation. “We love the lifestyle and the work here,” he said. “There’s always a positive vibe around Port Douglas. People love it, and we do our best to make sure our guests have a wonderful experience here.”

Calvin Bailey Management Rights (CBMR) has 29 years of experience in the Tropical North accommodation industry, specialising in the MLR business, and Bailey remains optimistic about the future of the sector in the north. “Cairns and the surrounding areas have always been able to reinvent themselves and will continue to do so, as they did after COVID-19 and the flooding earlier this year, resulting from Cyclone Jasper, our first cyclone since 2011,” he said.

Antonio Curulli

Cameron Wicking

Mike Phipps

Calvin Bailey

Andrew and Cindy Tingate

Garrick House

“We are now back to a vibrant tourism hub and well known as ‘the gateway to Asia.’ International tourism is again rapidly returning.” Bailey said Cairns enjoyed having the seventh-busiest airport in Australia, which welcomed more than 5 million passengers a year. Presently, the international terminal is undergoing a $55 million redevelopment.

“Inquiry levels for MLR businesses are quietly returning, and the recent level of buyer interest is very encouraging, as is the quality level of the buyers.” He said MLR business sales over the last two years had been mainly holiday properties. CBMR had 17 properties listed for sale in the north, and the eight most recent sales have totalled more than $17 million, with the highest being $5 million. He said he and his team had achieved multipliers of between 2.8 to five times the average net profit.

“Recently, CBMR has also settled several investment unit sales, and currently has five MLR properties that are under offer, at contract, or have just settled.”

He said, “We have been impressed by the quality of new buyers who recognise the value of obtaining an MLR business at a reasonable price in this area, and you will notice that these

generally offer a better deal and multiplier than that being asked in South East Queensland. You are getting more resort for your dollar up here and the prospect of a greater yield. Apart from our fantastic destination, value for money is perhaps our region’s biggest management rights business advantage over South East Queensland, where prices, especially on the Sunshine Coast, have gone up dramatically.”

Antonio Curulli says motel stock in North Queensland has gone up in price and subsequently come down in yield, putting management rights “in a far better light.”

He says good properties will always be in demand, but those with profits of less than $100,000 a year remain slow to sell, especially at a time of high interest rates.

“Those properties are a semi-retirement, lifestyle position. Banks see rights yielding below 12.5 percent on gross assets as lifestyle and those above 12.5 percent on gross assets as commercial. But if the multiples decrease a little bit, they become quite attractive for banks.”

Among the properties Curulli has sold was the Palm Villas in Palm Cove, which was sold

on a multiple of 2.8. “The vendor had decided that the price of the real estate had gone up so much he could take a lower multiple, and we were inundated with buyers,” he said.

He is currently marketing the York Apartments at Yorkeys Knob. “It’s great buying, with a three-bedroom unit, fully refurbished apartments, and absolutely beachfront with a six-digit annual income. It’s selling for $795,000 with a multiple of 2.1. It’s a semi-retirement opportunity with a good income in a beautiful location on the beach. We’ve also got Waterfront Terraces on the Cairns esplanade. It’s a modern hotel-style resort that’s showing a net of $300,000, and the managers don’t have to live onsite. That’s priced at $1.4 million with a 22 percent return on investment and 21 years left on the agreement.”

Cairns-based accountant Robert Cuda, from Caatz, says North Queensland has probably a greater proportion than anywhere else of management rights operators who have been at their properties for many years. “I’ve seen some people who have been in business for 15 to 20 years,” he said.

“Theirs are the properties transacting at the moment.” Cuda said during the COVID-19 pandemic, there were very few transactions, and it has since taken a couple of years to get the net profits of properties “up to a reasonable level to demonstrate to the market that there is consistency in those levels.” He said the lower multiples in North Queensland compared to South East Queensland represented great value but also the risk of the “ebbs and flows of tourism being a discretionary spend.”

“The lower multiples present a great opportunity for investors because you do get a better return on your money here,” he said. “The visitor numbers have been quite positive since COVID-19, and we haven’t had a lot of new stock, which adds to the good occupancy levels. Port Douglas had the cyclone, and that dented numbers from December to May, but forward bookings look good. In great weather, there’s no better place to be.”

Robert Cuda

Cairns

Des Fagg, who has represented ResortBrokers in North Queensland since 2014, points out that the MLR sector in North Queensland is mainly concentrated in popular beach locations such as Airlie Beach, Port Douglas, and Palm Cove, which predominantly have short-stay accommodation businesses.

“Outside of local buyers, North Queensland has proved popular with corporate operators and syndicates looking for a wider geographical spread and/or higher ROIs generated by purchasing at significantly lower multipliers,” he said.

“Management rights businesses in North Queensland typically sell at multipliers of one to 1.5 times, less than an equivalent in South East Queensland. The attraction of North Queensland’s imperishable natural attractions and lower multipliers has led to some significant MLR sales for ResortBrokers. This includes Dreamtime Resorts acquiring Drift Palm Cove and Verandahs Port Douglas. Drift was sold on actual/part projected profits of between $1 and $2 million for about $8 million, inclusive of extensive real estate. At Hotel Group, which holds the MLRs for nine accommodation assets in the Whitsunday region, recently purchased the MLR for Grand Mercure Apartments Magnetic Island through ResortBrokers. Additionally, Property Vine, which has several North Queensland properties in its portfolio of 14 MLRs, recently bought two MLRs in Airlie Beach through us as well.”

Geoff Ellis from North Queensland Management Rights says a lack of business confidence exacerbated by high interest rates still weighs heavily on the MLR market in his region. “It’s nothing to do with the destination, which has always been outstanding,” Ellis said. “It’s nothing to do with the tourism industry and the profitability of the businesses because most of them are showing better trading results than they’ve done in years. Most have bounced back well after COVID-19, and it hasn’t let up. The trading, the industry, and the destination are all terrific, but business confidence around the nation is down, cost of living is an issue, along with interest rates and inflation.”

Frank van der Heijden from Resort Sales agrees, adding that while the market for management rights is improving in North Queensland, interest rates are likely keeping a lot of buyers on the sidelines.

“But the confidence will come back,” Ellis said. “Buyers don’t go away; they just hibernate.

I’ve got some buyers that I’ve been talking with for three or four years, and they’re just waiting for the right opportunity.”

Among the Airlie Beach management rights properties, Ellis is marketing the Portside Whitsunday Apartments, the Azure Sea Whitsunday Resort, the Shingley Beach Resort, and the Mango House Resort. “At Portside and Mango House,

both vendors have been there for a long time, and they’ve done very well,” he said, “but they’re at retirement age, so they are motivated to sell for genuine reasons.”

Based in Agnes Water, Ronnie Slebos from CRE Brokers recently facilitated the sale of management rights for a high-rise in Mackay, listed at $750,000. With his own experience in owning and operating a management rights business, Slebos understands the crucial role brokers play in guiding both buyers and sellers from contract to settlement. He personally travels as far as Airlie Beach for inspections, noting that despite facing challenges like Cyclone Debbie and COVID-19, businesses in Airlie Beach have financially recovered.

Ronnie Slebos

Des Fagg

Geoff Ellis

Frank van der Heijden

Airlie Beach Photo by Nicolas Weldingh on Unsplash

Slebos remarked, “There’s no reason why any property in Airlie shouldn’t sell, but there are quite a few available at the same time.”

His colleague Peter Sagner agrees: “Management rights north of the Sunshine Coast, Brisbane, and Gold Coast regions require more patience from vendors to secure qualified buyers. This is most likely due to the higher population density of the South East corner and the sample number of MLR business buyers available from that population. Beyond that, the MLR business model is possibly less familiar beyond the South East pocket of Queensland. The businesses I have been involved with in the north perform quite well, and from a buyer’s perspective, the lower multipliers mean you get more bang for your buck.”

Alex Stagg, from McDonald Business Brokers, says there remains a lot of demand in North Queensland for accommodation businesses, especially for some of the bigger freehold motels. “We had one in Port Douglas, By The Sea, which was on the market for just a week before it went under offer,” he said. “In the last month, there are a lot of signs indicating that there is a lot more activity coming. We’ve had more inquiries and more offers in the last four-week period than probably we’ve had all year. People do want to get into the North Queensland market, but so much of it is very tightly held. With the big freehold hotels and motels, no one wants to give them up because they’re making too much money. But there are a lot of opportunities. We are marketing The Speewah Country Tavern. It is just past Kuranda, up the range from Cairns. It’s such a magnificent property, and it just hasn’t been getting the traction of what we would have thought. It’s a motel, tavern, and general store, with fuel out the front. It’s a beautiful property, and it’s listed at just over $2.1 million.”

Alex McCowan, from Accom Valuers, says he has been busy with valuations in North Queensland all year. “A lot of the turnover is in the smaller businesses, either short term or permanent,” he said. “The multipliers of those with a net profit less than $300,000 have seen some decrease, we’re seeing from low threes up to 3.8 times. But there have also been some bigger deals in Cairns, northern beaches and Port Douglas area. The larger properties with a net profit over $500,000 have attracted up to 4.3 times, and another at Palm Cove with a Net Operating Profit over $1.4 million sold at a multiplier of 5.0 times back in late 2022. Some of the

confidence for management rights has come back, but the market is nowhere near the size of the Sunshine Coast or Gold Coast, where deals are happening every day. Still, there are a lot of smaller deals in North Queensland around the $100,000 net profit, which are more suited to ‘lifestyle’ type purchasers.”

McCowan said there had been a flurry of property sales in Port Douglas in 2022 and early 2023 with the management rights for Mandalay reaching a five-times multiplier with a Net Operating Profit of over $800,000. “There’s now a ‘significant player’ moving into the management rights market,” he said, “with assets in Townsville, the Sunshine Coast, and Airlie Beach. They’ll probably look to Port Douglas later. Having them buy two large MLR businesses in Airlie confirms it’s going to hold up its values.”

Peter Ward, the director of Ward Commercial, said he had always enjoyed “a very special affinity” for Airlie Beach since the mid-1970s when he watched the cane toad races at the original Airlie Beach Hotel. “On a professional basis, whilst based on the Sunshine Coast, from 2003 we visited Airlie Beach and surrounds frequently, having negotiated 10 sales, mostly management rights but two significant freehold properties as well,” Ward said. “In 2022, Ward Commercial relocated to Yeppoon, and in 2024 teamed up with Brad Sobott from the highly regarded Taylors Real Estate in Airlie Beach to jointly market all types of accommodation properties, but mainly management rights. Obviously, the COVID-19 era and subsequent years created many unprecedented challenges, but we see the market being steady with improvement over the longer term. We currently have four management rights/caretaker properties (one of which has already been sold), plus a high-quality freehold accommodation asset listed, and

these in the main are attracting good inquiry, which gives us confidence for the future.”

The new National Director of Ras360, Nathan Eades agrees and says there is a great deal of confidence returning to the North Queensland accommodation market, so much so that they have appointed North Queensland local Shane Croghan to oversee sales there.

Shane Croghan joins Ras360 from ResortBrokers, where he started in 2019, notching up notable sales, including the management rights to Drift at Palm Cove, one of Far North Queensland’s largest and most soughtafter luxury beachfront residences. The business was bought in December 2022 by Dreamtime, one of Australia’s foremost resort management groups. He also covers the motel and caravan park market and has an extremely strong track record in these asset classes.

Croghan also spent a decade operating three of his own management rights businesses: the 80-unit Whitfield Waters from 2010 to 2013, the 54-unit City Park Gardens Apartments from 2010 to 2015, and Mid City Luxury Suites from 2016 to 2019.

Eades said: “The management rights market and accommodation market, in general, in the north have bounced back quite strongly. It’s good buying up there, and the multipliers in the management rights sector have always been historically softer than Brisbane and the SEQ market. So particularly with the high net assets, the return on investment is always very attractive.

“Lifestyle is another big factor, which is evidenced by the strong migration from

Peter Ward

Nathan Eades

Peter Sagner

Alex Stagg

Alex McCowan

Shane Croghan

Port Douglas beach and ocean on sunny day, Queensland

southern states to SEQ and regional Queensland. The Townsville, Mackay and Whitsunday markets have always had a strong drive and fly-in market, whereas the Cairns market is predominantly a fly-in market. The recent announcement that Cathay Pacific is about to open flights back into the area, offering a direct link between Hong Kong and Cairns, also provides an opportunity for strong revenue growth for the region.”

Cairns-based Danny Adams from North Queensland Lending has spent 40 years in finance and says the management rights opportunities in his region are in stark contrast to the state’s southeast.

Much cheaper real estate and more profitable businesses are almost as compelling as the Great Barrier Reef and the Daintree Rainforest.

“Our real estate in the north is still not out of hand,” Adams said. “It’s still possible for someone to buy a management rights business in North Queensland and get a very comfortable two-bedroom, two-bathroom manager’s lot in the $500,000 range with a management rights business for $1 million underpinning that and with a three to 3.5 times multiplier. That’s a very good deal. Banks are very much on board here and very eager to lend for MLR businesses.

There is good activity as far as sales. We’re not blowing the world away at the moment, but there is a steady stream of sales, and they range from very small permanent complexes to multi-million-dollar properties.

“I’m seeing activity from Airlie Beach right through to Port Douglas, which includes Cairns and Palm Cove in between. There is a steady level of inquiry from genuine buyers at varied levels. People are trying to come in at entry-level to get that first building with a view to getting something bigger in four to five years. They are learning the ropes of the MLR industry with the intent to make a lifelong career. Then there is genuine inquiry at the upper end with

people who already have industry experience with motels or hotels. In some instances, it’s the corporates. Everyone buying into MLR business in the north is getting a good deal, and I haven’t seen one multiplier that would make me worry. Lower multiples mean a more profitable business.”

Adams said the north had enjoyed two good holiday seasons after COVID-19 with an influx of domestic visitors and now international travellers, who are coming back in droves.

“At Port Douglas, it’s hard to get a seat for a coffee in the morning,” he said, “and a lot of those visitors are from overseas. The future is looking good.”

Danny Adams

Port Douglas

Contact: Geoff Ellis, 0432 790 959 geoffellis@nqmr.com.au

Contact: Calvin Bailey, 0414 889 593 calvin@cbmr.com.au

Contact: Antonio Curulli, 0432 790 959 tony@mrsales.com.au

Contact: Chenoa Daniel, 0403 143 151 chenoa@resortbrokers.com.au

Clifton Beach, QLD

Contact: Craig Johnson, 0493 108 073

Contact: Calvin Bailey, 0414 889 593

Great Strides see boost at Sanctuary Lake

By Grantlee Kieza, OAM Industry Reporter

The magnificent Sanctuary Lake Apartment complex in Currumbin on the southern Gold Coast offers a beautiful oasis with waving palms and shimmering waters, as well as spacious self-contained holiday apartments. It’s elegant yet affordable accommodation complete with a sparkling saltwater pool and inviting sundeck, and it’s the pride and joy of managers Jon and Leah Stride, who notched up two years running the complex on August 1.

With the world-famous Currumbin Wildlife Sanctuary right next door and a superb beach on the property’s doorstep, Jon and Leah have the best vacations possible right at home. The couple came into management rights with no experience and say that building a great team around them has been the key to their success. Their property had just eight holiday units in the letting pool when they arrived and now has 14.

“Leah and I had never been involved in management rights before,” Jon said. “But we had been managers in different industries, so we had transferable skills.

“We lived in Carindale in Brisbane for many years, but with all my family and all of Leah’s family on the Gold Coast, we decided it

For over 16 years, our team's unity and collective wisdom has driven us to deliver exceptional body corporate services, exceeding expectations.

07 5591 6849

manager@stratasphere.com.au

Level 2, 140 Bundall Road, Bundall Qld 4217 www.stratasphere.com.au

was time for a move. With our eldest son Gabe looking to do a trade, it was perfect timing to move the whole family.

“We began to look for properties and considered buying a unit around Robina, but then we heard about management rights and were intrigued by the possibility of running our own resort and living there as well. We saw that the management rights at Sanctuary Lake were available, and we thought, even though we had no experience in the industry, why not give it a go?”

The couple began researching management rights by attending ARAMA seminars and tuning into their webinars.

“They were fantastic,” Jon said, “and we took ARAMA’s advice to build a great team around us.

“We got in contact with some

excellent people in the industry – Count Gold Coast, formerly Jonathan Grant Accountants,, Trent Pevy for all our legal work, and Chris de Closey at Switch Hotel Solutions for business support and revenue management services.

“With their help, coming to Sanctuary Lake has been a real winner for us.”

Jon came to management rights from the print industry.

“I’m a binder by trade (making books and brochures) and I used to run all the floors for different companies.

“I started that when I was 19 with an apprenticeship and only finished up a couple of years ago after 20 years in that industry, and probably 10 of those in management. P56

Images courtesy of Sanctuary Lake Apartments

Switch turns on pricing for Sanctuary Lake

By Grantlee Kieza, OAM Industry Reporter

Jon and Leah Stride

attribute a significant part of their success at the Sanctuary Lake Apartments in Currumbin to the crucial support of Chris de Closey and his team at Switch Hotel Solutions.

“Chris and his company are vital for our business,” Jon said. “They check our location for pricing to ensure we’re sitt ing at market value by comparing our prices with other complexes nearby. They make sure we’re competitive in the market, and that is one less thing we have to think about.”

Jon said Switch’s revenue analyst, Rahul Rajiv, sends updates each week with what’s going on in the area and any adjustments that need to be made to pricing.

“Rahul makes sure the bookings keep coming,” Jon said. “Without the help we get from Switch, there’s a danger we could be overcharging and turning people off or undercharging and doing ourselves financial harm.”

Rahul is a passionate individual with a deep love for hospitality and a natural affinity for numbers. He trained in hospitality in Switzerland, where he honed his skills

and immersed himself in the intricacies of the industry. He has gained work experience in Kuwait, Switzerland, Spain, Hong Kong, and Australia, where he arrived to pursue a master’s in data analytics.

Chris de Closey, the director of Switch, said his company helps Sanctuary Lake Resort by providing revenue management services, including muchwelcomed dynamic pricing

support. “We are constantly adjusting pricing for Leah and Jon to ensure they are appropriately priced within the market,” Chris said. “We do this by leveraging multiple data points for our clients, including Lighthouse, STR, and localised data sets.

“We assist the client in taking on the revenue, sales, and marketing for those that work with us, allowing them several great benefi ts, including professional, outsourced support at a fraction of the cost of a full-time staff member.

“It also gives our clients peace of mind knowing that their business is in great hands, and they can focus on providing their customers and owners with an amazing experience onsite at the property.

“We take a consultative approach, working alongside our clients to reach their goals.”

Sanctuary Lake Apartments

P54

“Certainly, coming into a very different business was quite a steep learning curve for both Leah and me, but we are quick learners. From where we started to where we are now, it is certainly more relaxed and much easier. You know what you have to do at the complex and you just do it.”

Jon said the location of Sanctuary Lake was a big factor in buying the management rights there.

“We’ve been members of the North Kirra Surf Club for more than 10 years, and I can jump on my bike and be at the club in 15 minutes. The fact that we’ve got a beautiful stretch of water only 120 metres away swayed our decision.

“The size of the pool and facilities here are just phenomenal and we share a common wall with the Currumbin Wildlife Sanctuary, and our guests love visiting there.”

Sanctuary Lake has 78 units in the complex with 41 of them owner-occupied, 16 permanent rentals, and now 14 holiday units, up from eight when Jon and Leah arrived two years ago.

“We’ve spent the last month completing renovations on a unit that is going to be another permanent rental,” Jon said, “and we are really happy that we have built up such a good reputation that we are getting units back when other operators are losing them from the rental pool.

“Leah and I are both very handson, and all our tradespeople are locals. We’re always about supporting locals, and our plumber and electrician are all nearby. It means if we make a phone call, they’re here within the hour sorting it out.”

Higgins Coatings did a complete exterior repaint on the property a year ago, and they have an ongoing maintenance contract.

“The place looks phenomenal after their work,” Jon said.

“Higgins did all the outside of the building and the stairwells and unit doors, and we are so happy with the way the property looks.”

What advice would Jon give to anyone contemplating coming into management rights without experience, just as he and Leah did?

“Just do it,” Jon said. “It seems daunting at first, but truthfully, the lifestyle and flexibility that management rights give us at this property are fantastic. If you have a bad body corporate relationship, it can be difficult, but we’ve got a great body corporate, and everything runs smoothly. They are very supportive.

“Make sure you’ve got trusted advisors and accountants and legal people, too.

“One of the great things about management rights is the support from within the industry.

“I’m standing in my front car

park, and I can see two other complexes, but we’re all friends, so don’t be afraid to buddy up with people near you. If we’re full, we send guests to neighbouring properties, and if they’re full, they send people our way.”

Jon and Leah have three children. Hannah lives in Melbourne, 19-year-old Gabe is doing an electrical trade on the Gold Coast, and 11-year-old Alex is at Currumbin State School.

The family loves their slice of paradise.

“We can get people to come in and look after the property if we go on holidays,” Jon said, “but we haven’t seen the need to do that yet. People come from all over Australia to have holidays at Currumbin, so for now we think, why would we want to go anywhere else?

“It’s so beautiful and relaxing at Sanctuary Lake, and we’re getting paid to live here.”

Managers Jon and Leah Stride

Images courtesy of Sanctuary Lake Apartments

Resly simplifies bookings for Sanctuary Lake Apartments

By Grantlee Kieza, OAM Industry Reporter

Jon and Leah Stride said their Resly software system has been a godsend for their Sanctuary Lake apartments in Currumbin. Resly creates software for smart hoteliers and their system is specifically built for management rights and holiday letting, combining the latest technology and simplified trust accounting into one intuitive and easy-to-use platform.

Jon told us: “We got the Resly system on the recommendation of Chris De Closey at Switch Hotel Solutions. Chris said it was vital for us because we were new to management rights and that it was a system easy to use even for newcomers. We quickly found Chris’s advice to be spot on, the program was so simple

to use and very intuitive. We got the hang of it very quickly!”

The name “Resly” is a contraction of “Reservations easily,” and Jon and Leah say they found that as soon as they made a change in the system, it automatically updated all the different booking channels. Being 100 percent cloud-based, Resly ensures accessibility across any device, anytime, anywhere. It comes with

the backing of an Australian-based customer support team, dedicated onboarding specialists, and live one-on-one training with ongoing support at no extra cost. There is transparent billing, with no lock-in contracts or hidden fees.

Founders Sam Steel and Rico Chen say their mission was to enable and empower the management rights industry through technical innovation in

a way it had never experienced. They noted that, like many of their clients, they had problems working with outdated, complicated software that made it difficult to run a trust account. They wanted to build a property management system with powerful features yet simple to operate. It took close to three years of research and development to launch Resly, involving industry leaders, independent hoteliers, auditors, and accountants.

“We decided to make it an all-in-one platform,” Sam said. “We realised very early on that property managers often had to use multiple systems for property management, channel management, booking engines, and websites. Many were just getting lost in the day-to-day running of their business. So, we thought if we could bring it all into one platform, it would remove a lot of the need to double up on work. The property managers love it.”

Sanctuary Lake Apartments