Resort News - August 2022 by Multimedia AU/NZ

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Issue 312 | August 2022 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Special Report Rising short stay rates won’t solve housing problems Proﬁle Perfect view from The Hill management rights • hotels • motels • resorts • holiday parks • time share • hosted SPECIALISTS IN ACCOMMODATION FURNITURE FF&E AND JOINERY Custom made furniture including packages

CEO, Dennis Clark

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

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

Disclaimer Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein. Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law. Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties. © 2022 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the written consent of the publisher.

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EDITOR

Mandy Clarke editor@accomnews.com.au

INDUSTRY REPORTERS DESIGN & PRODUCTION ADVERTISING SUBSCRIPTIONS

Grantlee Kieza Richard McGill

Stewart Shimmin advertising@accomnews.com.au Gavin Bill subscriptions@accomnews.com.au

CONTRIBUTORS Andrew Morgan, Brett Fraser, Col Myers, Commissioner BCCM, Frank Higginson, Kelley Rigby, Kristi Kinast, Lel Parnis, Lynda Kypriadakis, Mike Phipps, Sylvia Johnston and Trevor Rawnsley. KEY Commercially funded supplier profile or supplier case study Supplier information or content Suppliers share their views in one-off, topical pieces General editorial. Case studies and features may cite or quote suppliers, please be aware that we have a strict ‘no commercial content’ guideline for all magazine editorial, so this is not part of any commercially funded advertorial but may be included as relevant opinion. Happy reading!

Inside our August issue FRONT DESK Editor’s Note: International travel: A series of unfortunate events ...05

INDUSTRY Special Report: Rising short stay rates won’t solve housing problems .................................................................... 06 News: STRA exclusion register NSW updated ............... 10 State Report .................................................................................11 QTIC Report ..................................................................................11 ARAMA Report ........................................................................... 12

SCA Report .................................................................................. 14 BCCM Report .............................................................................. 16 Person of Interest – Sharon Flood: Flood of legal ideas for management rights ................... 18

MANAGEMENT Legal Ease.....................................................................................20 By All Accounts .......................................................................... 21 Motel Market ...............................................................................22 Software Solutions....................................................................23 Thinking MR.................................................................................24

Good Governance .....................................................................26 Building Relationships ............................................................ 27

TOURISM Tourism Report ...........................................................................28 Domestic visitors flock to QLD to compete in paradise ...........................................................29

EVENTS & APPOINTMENTS Events.............................................................................................30

DEVELOPMENTS Development News ..................................................................34

PROPERTY AccomProperties Sales Report ...........................................36 New Manager Profiles ............................................................. 37 Property News ............................................................................ 37

PROFILE Hill Apartments, Currumbin Point: Perfect view from The Hill ......................................................42

PREFERRED SUPPLIERS Preferred Supplied Directory ................................................46 FRONT DESK

37 ResortNews | August 2022

Welcome to the August edition of Resort News.

Then I arrived in England to a “deadly heatwave” (well that’s what the media said) apart from one 40-degree day I’ve not felt the heat.

I am writing this from the UK, where I arrived after a mega 12-hour delay in a very chaotic Frankfurt Airport. Yes, I made it but sadly some of my luggage didn’t. Allegedly it’s still sits in Germany, one of 20 thousand lost bags. I can confirm the horror air travel stories of long delays, cancelled flights, strikes and three-hour security queues. International travel is no picnic. Many airports are a shambolic mess, especially in Europe, but I had a similar experience at Sydney International Airport in May. Airport CEOs report it’s due to “passengers forgetting how to travel” or “too many black suitcases” and one blamed “women packing too much make up”. However, here’s the truth

column this month. I would add that to travel globally now is a series of very unfortunate events.

Frankfurt Airport employees.

Enough of the bad stuff. The rest of the trip has been an absolute blast. A family reunion, followed by the most gorgeous wedding ever, and off to Ireland for Guinness and the Gaelic football final. But the dreaded return flight is imminent.

Mandy Clarke, Editor editor@accomnews.com.au using Occam’s Razor theory, experienced staff sacked during the pandemic will not return, on top of that airport recruitment is not a quick and simple process. Quite simply airports are massively understaffed and totally ill prepared for the travel surge. How do I know this for sure? Because I had a full 12 hours to chat to very fragile

What’s my advice for international travel? Wait. But if you do have to travel in 2022, take carry-on luggage only and get to the airport three hours before check-in. Most importantly ensure you have at least a three-hour transit time for any connecting flights. Travel is stressful. Mike Phipps points this out in his very honest

NUMBER

In a desperate attempt to return to a pre-COVID “normal” I can’t help thinking we’ve piled on pressure to achieve unrealistic expectations. The impact of this three-year pandemic shouldn’t be underestimated and will stretch way beyond 2022, for travel but also for our mental health.

EDITOR'S NOTE

International travel: A series of unfortunate events

Anxiety takes hold of people in the most unexpected and untimely ways. A big thank you to Mike, for being so open about his struggles and I know his words will inspire others to seek help. Finally, I want to give a warm welcome to our new Legal Ease columnist, the inimitable Frank Higginson. Enjoy this issue of Resort News and see you back in Queensland soon! Cheers, Mandy.

OUR SERVICES Furniture FF&E design concepts

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ResortNews | August 2022

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FRONT DESK

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SPECIAL REPORT

Rising short stay rates won’t solve housing problems

By Grantlee Kieza, Industry Reporter

A decision by the Brisbane City Council to increase rates for short-stay properties will not help the current housing crisis “one jot”, nor damage management rights according to ARAMA CEO Trevor Rawnsley. With the city mired in a chronic shortage of rental properties, Brisbane lord mayor, Adrian Schrinner, said increased rates on short-stay properties would provide an incentive to landlords to rent their property to longer term tenants. Landlords who rent out their entire property for longer than 60 days a year will now pay 50 percent more in rates. Mr Schrinner said the rate increase would mean a property on Brisbane’s minimum rating category would pay $600 extra a year. Handing down the city’s $4billion budget the LNP lord mayor said a new “transitory accommodation” category would

The rate rise is not going to make a jot of diﬀerence to housing aﬀordability help tackle housing availability and affordability in Australia’s fastest growing capital city. Mr Rawnsley said the decision would have “some impact” on buildings used for shortstay accommodation but not much and was more about “Brisbane City Council’s way of trying to dress up a new tax and to make it sound like they’re saving the world.” “They’re trying to make a silk purse out of sow’s ear,” Mr Rawnsley said. “In our opinion the rate rise is not going to make a jot of difference to housing affordability, it’s not going to suddenly push people out of short-term rentals into long term tenancy. “What it will do is deliver a financial windfall for Brisbane

City Council in the same way that other councils have discovered over the years that they can apply a levy. For the last 15 years, the Gold Coast City Council has applied a levy to all short-term letting and that money goes to promote Destination Gold Coast. “This is not a new thing. “I think Brisbane City Council has just discovered that while Brisbane is not exactly a mass tourism destination, they need to do something that looks like they’re responding to housing affordability and shortage of long-term rentals. “Ultimately what it means is that with an average occupancy of 65 percent it’s going to cause an increase in tariff of less than $2 a night, so investor-owners

INDUSTRY

will need to decide whether they ask their agent which is our guys, the management rights operators, whether they increase the tariff by a couple of bucks a night or will they get a better return if they converted the property from a short stay to long-term rental. “I think most people will just whack up another couple of bucks a night and no one will ever know.” “The punter will pay the extra tariff and the council will get their extra tax. Brisbane City Council is under the pump with floods, they are enormously out of pocket, and they do a prett y good job.” Mr Rawnsley said while he would never be a cheerleader for new taxes or more taxes, this one was not going to hurt much. “What I don’t like, though, is people piling on to the antishort-stay section by saying things like Airbnb and other management rights are bad for housing affordability,” he said. “Brisbane City Council’s internal marketing has spun it in such a way that this new rate rise is going to save the planet. ResortNews | August 2022

“The market will decide whether they book Airbnb or if the rates are too high, and the investor market will decide whether they’re better off getting a return on long term stays instead of short-term letting. Ultimately the market always decides. And it should decide. That’s what capitalism is all about.” Management rights executive Mike O’Farrell, the Chairman of MLR Services and a Life Member of ARAMA agreed that the council’s decision was “another tax that will be passed onto consumers. One needs to remember,” Mr O’Farrell said, “that the Gold Coast and Noosa LGAs have been charging a short-term letting tax for some time. “The BCC is playing catch up.

“It’s disappointing that governing bodies find little parts of the economy to tax rather than look at the total picture and adopt real tax reform across the board. As management rights operators we should be concerned as I wouldn’t expect the tax on Airbnb to not spread to other short-term lettings in Brisbane City Council LGA.” Management rights lawyer John Mahoney said while a rate rise had the potential to deter people who would otherwise be happy to put their units in a manager’s short-term letting pool, it was “unlikely to have any material detriment to the industry.” “I think if you work out what the increase might be and spread it across 12 months it’s not a lot of money per night. While it does have the potential to make an impact, I think the impact will be minimal. I don’t think it will help the rental crisis at all. It will result in the council getting more money, but I think it will have negligible if any impact on making more properties available for more tenants.”

“But you scratch the surface, and you find that $2 a night is not really going to make that much of a difference. If investor owners are making good money out of Airbnb. Ultimately the market will decide whether Airbnb is a success, not Brisbane City Council.

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INDUSTRY

Kelley Rigby, from Management Letting Rights Consultancy company Letts Rebuild, agreed, saying that while councils often did things to ruffle feathers the potential rate rise was not going to make much of a difference though it might persuade a few owners to put their short stay properties into the long-term rental pool. Mr Schrinner told the Guardian website that he hoped it would be more than a few properties. Brisbane’s rental vacancy rate was 0.7 percent in May, according to SQM Research. “There’s a serious housing affordability issue and we need to be looking at new ways to increase housing supply,” Mr Schrinner said. “It’s about getting more accommodation for renters to be available in that long-term rental market. Every single property that switches from short-term to long-term rental is a win for the community.” Mr Schrinner said residential rates would increase by 4.93 percent, the city’s highest rates increase in more than a decade, as Brisbane grapples with the aftermath of February’s floods. From July 1, property owners who list their homes on Airbnb, Booking.com and Stayz will be asked to self-identify and be charged higher rates. The charges will only apply to entire properties, not single rooms or granny flats, and only to those rented out on short-term leases for more than 60 days a year. He said council would use online resources to identify

pockets of potential buyers allowing them to spend more.

properties listed as shortterm accommodation and allow people to report their neighbours.

And he warned Queensland treasury officials to beware of tampering with the tax model in the management rights field.

Property taxes are being reshaped in other areas. Earlier this year, Noosa shire council introduced a $950 registration fee for short-term accommodation properties, while the New South Wales government approved a request for a 90-day-a-year cap on short-term rentals in Byron Bay. Starting in 2023, some first home buyers in NSW will be able to choose between paying a stamp duty lump sum or an annual land tax instead. Under the plan first home buyers purchasing a property up to $1.5m can opt to pay an annual fee of $400 plus 0.3 percent of the land value. Buying a $1.35m house, with a land value of $810,000, the stamp duty would be $59,125. But if a buyer is holding on to the property for less than 20 years, they are better off paying the $2,830-per-year land tax, which would total $56,600. NSW will become the second Australian jurisdiction to change stamp duty laws, with the ACT halfway through a 20-year switchover. But rather than solve a housing crisis, Mr Rawnsley said the scrapping of stamp duty would most likely only result in higher prices with the same result if the plan was adopted in Queensland. He speculated that an end to stamp duty would only put more money in to the

“In Queensland, the sale and purchase of management rights generates more than $150 million a year for the Queensland state government in stamp duty,” Mr Rawnsley said. “What the NSW government is doing, in changing that tax model will be advantageous for the management rights business because new owners won’t have to pay stamp duty when they buy a management rights business. But a government is never going to stop the taxability of things and ultimately someone ends up paying. “When the Queensland government realises how much is at stake to its coffers in stamp duty, treasury officials would be very nervous about doing anything to harm that $150 million. There are a lot more management rights in Queensland than in NSW, so the amount of stamp duty generated by those businesses in NSW is significantly less. “In the short term the removal of stamp duty would be a good thing in Queensland for people who are buying and selling management rights, but it would not necessarily be good for the government. So, they have a much more complex conundrum in Queensland then they do with management rights in NSW.” John Mahoney also doubts that the elimination of stamp duty would get more people into

INDUSTRY

their own properties “because any savings on duty is going to be offset by the increase in the price of property. “The people who are trying to get into the marketplace at the lower end are already getting all kinds of concessions so it’s not as though the duty is a big impost on them,” Mr Mahoney said. “If you are buying a property for $2 million then it’s going to cost you close to $100,000 in stamp duty so it’s that upper middle range that would benefit from removing it. “I still think that the removal of stamp duty would increase the price of properties and I can’t see it helping get more people into their own homes.” Mike O’Farrell said he supported any move to remove stamp duty but did not support “raising revenue through taxes to support the levels of government we have in this country”. “I seem to recall that the introduction of GST was to mean state governments would be dropping Stamp Duty,” Mr O’Farrell said. “Well, that didn’t occur. Now we are seeing State Governments still taxing land-buying and landowning citizens and as time moves on it will be called by another name. It’s still tax. “It’s a crying shame that a country such as Australia has the levels of government we do; it’s duplication and red tape at the highest level. Wouldn’t it be lovely to have that ‘magic pen’ and with that we could reform government and the tax systems that go with it?” ResortNews | August 2022

ResortBrokers celebrates Best year in business in four decades with $385 million worth of sales Australia’s longest established and most experienced specialist agency in the accommodation and hospitality sector notched up a record $385 million in sales last year – a record for the 37-yearold company. ResortBrokers, which boasts brokers in every Australian state

“The accommodation industry still represents good value as other asset types have tightened,” she says.

and territory, is celebrating a 43 per cent increase in sales for the 21/22 FY. Other key statistics include listings up 21 per cent; enquiry up 14 per cent; and inspections up 10 per cent. ResortBrokers Managing Director Trudy Crooks cites an increased desire in a post-COVID world by buyers wanting to run their own business and be their own boss, as one of the major reasons behind the increase.

“We are across the country with lots of feet on the ground – we have 30 brokers around the nation – and as focus continues on the regions we possess that local knowledge to help buyers and sellers. “There are also lots of commercial players – the big groups and hotel brands –

buying up accommodation around the country which is driving demand.” Ms Crooks says FY22/23 looks even more promising. “We will see more of the same excellent results,” she says. “There is still a lot of pent up activity with demand for properties in places like the Gold Coast at an all-time high. “At the same time, the regions will continue to stay strong.”

ResortBrokers’ Management Rights Report 2022 Management Rights’ industry worth $4.8B in Australia, according to groundbreaking report, with $120B of accommodation assets under management. ResortBrokers recently (July 22nd) released the Management Rights’ Report 2022 – the first over-arching industry report of its kind. ResortBrokers utilised its bespoke data collection system and new in-house research department (ResortBrokers Research - headed by our Property Economist Josh Mangleson), to collect, collate and analyse the data. Key trends to emerge over the past ﬁve years include: •

Multipliers have increased significantly particularly for medium-to-high netting MR assets

•

Many developers have opted to establish MRs as “business only” assets

•

Off-The-Plan opportunities have become the most sought-after MR type

•

An increase in high-net-worth private operators, syndicates and private equity competing for the best and biggest MRs

•

Transactions are taking considerably longer than previously

•

COVID-19 has had almost zero effect on permanent residential MRs but short-stay MRs have been affected depending on region

To receive your copy today please visit https://www.resortbrokers.com.au/mr-report/

ResortNews | August 2022

INDUSTRY

NEWS

STRA exclusion register NSW updated By Mandy Clake, Editor

All short-term rental accommodation providers in NSW can now register online for updates on the changes to the short-term rental accommodation (STRA) exclusion register that will happen from August 1, 2022. The updates will make it easier to know your obligations and comply with requirements. The short-term rental accommodation (STRA) exclusion register started in December 2020 as part of the mandatory Code of Conduct for the Short-Term Rental Accommodation Industry

(the code). It is now publicly available as an online register.

Requirements for letting agents

The exclusion register records the details of hosts who are not allowed to offer their premises for STRA, and guests who are not allowed to book STRA.

From August 1, 2022 letting agents must comply with requirements under the code not to: advertise or facilitate the offering of STRA premises if the host is listed on the exclusion register, either for all premises they offer or in relation to specific premises. Or offer STRA premises to guests who have been listed on the exclusion register.

A guest, host (or host in relation to specific premises) will be recorded on the exclusion register if they have had two strikes recorded against them in a two-year period for a breach of the code. NSW Fair Trading can also record a host or a guest on the exclusion register in certain situations if a person has been charged with, or convicted of a criminal offence. Any participant listed on the exclusion register is banned from the industry for five years.

Management Rights Transactions Damian Quinn

One of the Sunshine Coast’s most experienced firms in on-site management rights transactions. • Commercial & Business Law • Litigation & Dispute Resolution • Wills & Estate Planning

• Property Law • Retirement Villages • Body Corporate

Access to the exclusion register

•

Once subscribed, you do not need to check the register before accepting bookings. You do not need to do anything further unless you receive a notification from NSW Fair Trading.

If you receive a notification that the exclusion register has changed: •

You can access the public exclusion register on the NSW Fair Trading website to check whether individual hosts or guests are excluded from STRA. You can search the exclusion register using information such as the person’s name and a combination of the person’s email address, phone number or residential address.

•

Check the information on excluded participants.

•

Do not offer premises for STRA if the host is recorded as an excluded host on the exclusion register.

•

Do not enter into a STRA arrangement with a guest recorded on the exclusion register.

NSW Fair Trading recognises that it may be difficult to frequently check this information given the high volume of STRA arrangements that letting agents and booking platforms are involved with.

If you are not subscribed to receive notifications, you will need to check the exclusion register before each booking to make sure you are not entering into a STRA arrangement with an excluded host or guest.

To make it easier, NSW Fair Trading will provide licensed letting agents with updates when changes are made to the exclusion register. You will need to subscribe to receive these updates by following the steps below.

What do letting agents need to do? To meet the requirements under the code, you need to ensure you do not enter or facilitate STRA arrangements with an excluded person. To help comply with these obligations, you should: •

SUNSHINE COAST & QUEENSLAND WIDE

Damian Quinn (07) 5443 5266 www.simpsonquinn.com.au

You will then be notified when changes are made to the exclusion register.

INDUSTRY

Visit the subscriber portal and create a login using your licence number to subscribe to updates on changes to the exclusion register.

These obligations also apply to booking platforms and facilitators. NSW Fair Trading will be monitoring host, booking platform, letting agent and facilitator compliance with these requirements under the code from August 1, 2022. For more information, visit the NSW Fair Trading website to: •

Subscribe to NSW Fair Trading updates on changes to the exclusion register.

•

Access the exclusion register.

•

Find out more about the exclusion register.

•

Access the Code of Conduct. ResortNews | August 2022

The NSW Department of Fair Trading has recently announced that the State Government has extended its temporary COVID-19 emergency measures for strata and community schemes to September 29, 2022. This means that strata Owners Corporations and Community Land Associations can continue, until September 29, 2022, to: •

Meet and vote electronically, without passing a resolution to authorise this beforehand.

•

Validly execute documents, without affixing the seal of the Owners Corporation or Association.

The previous temporary measure of allowing certain documents

permanent changes to the strata and community scheme laws on ways of voting and using an electronic seal. These changes are currently expected to start on September 30, 2022, once supporting regulations are made. The measures allow Owners Corporations and Community Land Associations to continue operating as they have been during 2020 and 2021, until the permanent changes commence.

Col Myers, Small Myers Hughes

to be sent by email has not been extended because of changes made by the COVID-19 and Other Legislation Amendment (Regulatory Reforms) Act 2022 (the Act) on 24 March 2022. The changes mean that an Owners Corporation and Association can send documents to an email address nominated by a lot owner, lot occupier or another person on the roll. The Act makes other

NSW Strata Scheme Reporting All strata schemes in NSW will have to report annually to NSW Fair Trading through a new strata portal by December 31, 2022. The reporting will make it easier to access key strata information, and it will deliver a range of benefits. For example, emergency services will have access to a dedicated

contact for each scheme in the event of an emergency. The Department of Fair Trading will be implementing the portal’s functions in stages.

STATE REPORT

NSW COVID-19 measures extended From July 2022, Owners Corporations can register a scheme, set up a profile and access educational webinars. More features will be added in the following months. Strata communities in NSW can now start to prepare for the reporting now by: •

Knowing what information, you’ll need to report and where to find it;

•

Deciding who will do the reporting and who will be the emergency services contact.

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

Queensland tourism industry update As we enjoy the winter period and reflect on the past few months, I am emboldened by the various signs that hint at our tourism sector’s recovery. Most notably, June saw the release of new figures from Tourism Research Australia, which show that, in the year to March, our states and territories experienced a marked pick up in visitor numbers and spending. While the numbers unsurprisingly show that tourism has not yet fully recovered, they also highlight that our industry is achieving visitor numbers that are nearing parity with 2019. ResortNews | August 2022

With some destinations, such as the Whitsundays and Far North Queensland breaking all-time visitor records. Coming after a year in which our industry essentially ground to a halt, this is exceptional news and testament to how far our tourism sector has come. We owe much of our recovery to the Australian holidaymakers and day-trippers who rediscovered the wonders of their own backyard. But most importantly, this success would not have been possible without the fortitude and drive of our operators, who have proven that our nation excels in delivering exceptional visitor experiences. Our sector was guided by numbers these past months, with the Federal and Queensland State Budgets handed down. Both Labor Party budgets signalled a strong commitment to sustainable tourism and the recovery of our visitor economy. We welcomed a much-needed $262.5 million commitment from the Queensland Government for

Protected Areas. An investment that will see industry partnering with First Nations peoples to deliver better care for Country and sustainably develop new nature tourism opportunities. The state budget also coincided with the release of a long-awaited Towards 2032 – Action Plan for Tourism Recovery. Authored by an independent panel, the report sets out 75 key recommendations to government to facilitate our industry’s recovery and establish Queensland as a world-leading visitor economy by 2032. The report covers a wide range of topics and industry-related concerns. From fast-tracking market diversification and protecting natural assets, to reimagining our coastal experiences and developing more accessible infrastructure. We welcome the spirit of the report and the government’s allocation of $66.4 million within the state budget to see the fulfillment of some of the Action Plan’s recommendations.

INDUSTRY

This past month, our industry also applauded the announcement of Queensland’s best holiday destinations for 2022 at the QTIC Queensland Top Tourism Town Awards. I’m pleased to share that the much-deserving Tamborine Mountain, Airlie Beach, and Winton were all crowned this year’s top tourist towns. I attended the Awards ceremony for the first time and was heartened to see the dedication of our state’s regional gems. Their commitment to growing tourism within their respective regions is worthy of celebration.

QTIC REPORT

By Brett Fraser, Chief Executive, Queensland Tourism Industry Council

As we begin to see the green shoots of our industry’s recovery, I’m bolstered by the commitment of our operators, our regions and of government bodies in working together to see that Queensland becomes a world-leading visitor destination. There is much to be done, but I am certain that we will be able to take the lessons of the past and move forward with renewed determination.

ARAMA REPORT

TOP night celebrates best of the best Oh, what a night! The hardest workers and brightest minds in the accommodation industry came together at the Brisbane City Hall on July 26 to celebrate ARAMA’s 2022 TOP Awards. The TOP Awards are designed to highlight, recognise and reward the best in the Management & Lettings rights (MLR) industry.

Trevor Rawnsley, CEO, ARAMA

It was a stunning occasion with a marvellous attendance of almost 300 (a record for an ARAMA event) as industry participants celebrated their own achievements and the success of their peers. The night was designed to honour the best of the best in our amazing industry and to inspire the whole Management and Letting Rights Industry to strive for outstanding performance.

our brilliant MC Kelley Rigby, who did such a first-class job, was sponsored by Australian Valuers. Kelley is a young mother of two and stepmother of three, who somehow finds time to run three businesses within the MLR realm and serve ARAMA as our volunteer Gold Coast branch president.

The major sponsor of this event was the RAAS Group and

Everyone in the room toasted the success of the night

Image courtesy of ARAMA

thanks to our drinks sponsor, Coast Breakz. With the MLR industry generating $55 billion in economic benefit back into the Australian economy annually, everyone at the TOP Awards was a winner, but it was a night to recognise the very best of the best. The four major categories were each judged by an ARAMA life member and the quality of all the finalists meant the judges had tough choices in picking this year’s winners. Michael & Karen Cross from Dorchester on The Beach, Gold Coast, took out the Building Manager of the Year Award, sponsored by Property Bridge. The Dorchester on the Beach is a beachfront family holiday hi-rise in Surfers Paradise and the judge of the award noted that Michael and Karen have “a history of achievements at the building since they commenced in September 2014”. “They have demonstrated forward thinking,” the judge said, “an ability to work with the committee and the implementation of building improvements, efficiencies and environmental improvements that are in the best long-term interest of the complex. This will surely lead to maintaining and improving the value of the scheme and the investments of their lot unit owners.

INDUSTRY

“Since taking over the management rights in 2014, they have been involved with the repainting and concrete cancer repairs. They have upgraded the windows, re-landscaped the gardens, upgraded the fire safety and electrical systems. “They also implemented the ARAMA COVIDSAFE Plan, not only for their complex, but they were also instrumental in helping develop the COVIDSAFE plan for the entire industry. “These managers are pro-active in the way they take care of and manage the complex, always looking forward, and supporting their committee and lot owners. Considering their building is 41 years old and constantly hammered by the weather, the building is in great shape, and that is quite an achievement.” Michael and Karen won last year’s TOP Award in the category of Resident Manager of the Year in the short stay category, so this year’s award demonstrates their all-round capabilities. This year, the Resident Manager of the Year (Short Stay) award was Sponsored by Build Check Engineering. The winners were Paul and Francine Tuddenham from the Peninsula at Airlie Beach. It’s a mighty achievement since they only took over the Peninsula on July 1 last year. ResortNews | August 2022

Fran’s background was working at Westpac for 20 years, and Paul had a mortgage broking business. The award judge said that while Paul and Francine were relatively new to the industry, they had demonstrated a personal tenacity in overcoming daunting obstacles very quickly.

Chenoa Daniel, from ResortBrokers, took out the award for Sales Broker of the Year, which was sponsored by Flood Legal

The judge considered: •

A difficult purchasing and handover experience.

•

An ability to turn owners and guests back to appreciate good management.

•

Going the extra distance with guests and their accommodation needs.

Paul and Fran’s commitment to the business resulted in great satisfaction to the body corporate, to all the unit owners, both live-in and letting owners, and, most importantly, to the happy guests. They did this at a new family location, in a very short time. The judge said that encouragement by the industry in recognising newcomers to management rights, such as this year’s winner, was important. The award was an opportunity to recognise new operators for doing an outstanding job. “All the finalists were worthy of an award,” the judge said, “because of the high standards of results in their management rights businesses. “They are all to be commended. However, this year’s winner was a standout.” The award for Resident Manager of the Year (Mixed Category) was sponsored by EBM Insurance & Risk. This year’s TOP Award recipient is Rod Argyle from the Riverside Hotel in Brisbane.

winner has overcome some extraordinary challenges and has still been able to collaborate in a positive way with the key stakeholders in the building including the unit owners, committee members and the body corporate manager to achieve great outcomes that have proven to be mutually beneficial to the entire scheme and its stakeholders. “These rewards are the outcomes of adhering to the principles of the triangle of management.” The Resident Manager of The Year Award for Long Stay Accommodation was sponsored by The Onsite Manager. Ian and Maree Smith from Hidden Grove were the winners. The judge said this award was a tough call as many contenders had displayed the qualities that were highly desirable in the journey towards best practice as a resident manager. However, in choosing this year’s winner the judge needed to consider a broad number of KPIs including: •

The actual size of the scheme and the growth

in the letting pool during a highly competitive time. •

•

Did they enjoy their role, and did it provide fulfilment? What outside interests they might have to provide for the local community and create work-life balance.

“This year’s winner has demonstrated a commitment to excellence in all of these KPIs plus more,” the judge said, “and while every applicant shines in some way or other, and makes a magnificent contribution to their body corporate, the overall scheme and their tenants, this year’s winner was particularly worthy.” Chenoa Daniel, from ResortBrokers, took out the award for Sales Broker of the Year, which was sponsored by Flood Legal. Chenoa brings a valuable perspective to MLR and is always striving to take her service and marketing to the next level, not just in

The judge said while all applications were of the highest quality and included the winner of last years’ award, Rod was declared the winner based on the extreme challenges he overcame and the stoic determination he displayed to continue to operate the business through the most challenging of times.

She has been involved in MLR for 12 years and for three of those was ResortBrokers’ far North Queensland specialist. Nick Buick, from The Onsite Manager, took out the award as ARAMA’S Service Provider of the Year. Nick began building TheOnsiteManager in the early 2000s to establish an online marketplace for resort and residential building management rights. Nick became a fully licenced real estate agent in 2012 and founded his own agency of the same name to focus entirely on residential sales and rental marketing within residential complexes. The 2022 TOP Awards were a wonderful display of the enthusiasm in the management rights industry for the work we do and the success we enjoy. Everyone in the business should be proud of our achievements and our contributions to accommodation and tourism in Australia and the support we show to one another, especially in tough times such as during the COVID pandemic. All the contenders for this year’s awards displayed an exemplary level of professionalism and tenacity in an ever-changing landscape. The business of management and letting rights delivers great value to a community title scheme and its lot owners. This year’s TOP Awards winners will inspire others to great achievements too.

“While most resident managers have faced a number of unprecedented challenges,” the judge said, “this year’s ResortNews | August 2022

How well they got on with the committee and other lot owners including those who were owner occupiers.

terms of sales, but how she educates and empowers buyers in the process.

See you at the TOP. INDUSTRY

SCA REPORT

Hackathon and the path to reform SCA (Qld) has devoted much of our energy of recent times into reforming and modernising Queensland’s strata law. As an organisation we are committed to best practice, and with the current framework fundamentally out of date, it’s time for reform. And what better way to consider strata reform than with a hackathon! What is a strata hackathon you may ask? We gathered some of Queensland’s best strata lawyers, most experienced strata managers, suppliers to the strata industry and some of what you might call our industry’s founders and spent a day throwing a range of intensive strata ideas into the air, then put some substance and reality around them when they landed. We will use the ideas and proposals generated from having the industry’s sharpest minds in one room to advocate for best practice reform. It was the broadest possible spectrum of the Queensland strata industry, and it was great to have everyone in one room, rowing the boat in the direction of best practice, fit for purpose legislation. The Body Corporate and Community Management Act 1997 is 25 years old this year. At the time of its creation, it was, along with its accompanying Regulation Modules seen as world class legislation designed very well to fill economic niches and facilitate growth in schemes and population in Queensland. Many, however, question whether it is still fit for purpose given its age. You would be hard pressed to find a 25-year-old Act that remains largely unaltered across the books of most jurisdictions in the Western world. The Body Corporate and Community

Strata isn’t about buildings, it is fundamentally about people Kristi Kinast, President, SCA (QLD)

Management Act touches the lives of 1.2million Queenslanders who live, work, and play in strata properties, yet has barely been touched in a quarter century. What did we come out with? Reform proposals to make dispute resolution easier and more efficient, to ensure that bylaws are flexible and enforceable were some of the key concerns in terms of making strata better for lot owners. In terms of the rights and responsibilities of managers, professionalism, and modernisation including regulatory requirements were important focuses. Changes to Regulation Modules to better fit how schemes operate now was also discussed at length. SCA (Qld) will be finalising specific proposals in the coming weeks to put to government. One of the key themes that shone through was perhaps how strata law reforms don’t necessarily need to be about the nuances of regulation modules, exclusive use bylaws and finessing technical interpretations of the law. One core theme that developed was that whilst the 1997 Act is very good at setting up schemes, it perhaps falls short in managing the people who ultimately live in them. A good deal of the day was devoted to helping examine the fundamental question: how do we make it easier for people to live in a communal setting like strata? At the end of the day, a building doesn’t

have feelings, emotions and moods, nor does a CMS. The law perhaps needs to recognise that strata isn’t about buildings, it is fundamentally about people. This was the consistent message of the hackathon. People need to be able to live harmoniously more easily in what is ostensibly a communal setting. There needs to be easier ability to resolve the inevitable disputes that arise between people, and for people with shared values and lifestyle desires to coalesce to a scheme and enforce those values on those who come into their community. When conflict does arise, disputes are best resolved swiftly by the parties and if possible, without the intervention of formalities or lawyers. Bullies and those who harass others in strata need to know there are consequences for unacceptable behaviour.

INDUSTRY

As I stated above, we had some significant broad ideas to come out of the day. These will now go to our Legislation Committee for consideration. From there they will be considered in-depth by our Advocacy Directors Jason Carlson, Chris Irons, Shane Devenish and Duncan Lee before being finalised by the board more broadly. Once finalised, these ideas will be put to the Attorney-General and her Department through the mechanism of the Community Titles Legislation Working Group. Hopefully, the commitment by the entire industry to generating these positive ideas for reform will see them put into law. Overall, the theme of the day was that strata reform must be people-centric, focused on how people live amicably together. No one wants to go home to a warzone that resembles an episode of Judge Judy, and with appropriate strata law reform, we hope no one will have to. ResortNews | August 2022

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MAKE THE SWITCH TODAY! ResortNews | August 2022 INDUSTRY sales@reimaster.com.au 1800 671 179 www.reicloud.com.au

BCCM REPORT

Caretaker disputes Body corporate disputes involving caretakers can generate considerable confusion and frustration. Our interactions with clients indicate that further clarification of the options available to resolve caretaker disputes and the legal requirements for termination would be helpful. In this article, we will highlight what the relevant legislation says about terminating an engagement and what steps the committee might consider before things escalate. We will also clarify the role of our office in relation to caretaker disputes.

Steps to consider when a dispute arises Disputes often arise between committees and caretakers due to differing expectations, or a misunderstanding about the terms of the caretaker’s engagement. Most commonly the scope of their duties. The first step in trying to resolve any dispute within a body corporate is open communication. Talking through a problem or misunderstanding can go a long way towards ensuring parties are on the same

page, especially when it comes to clarifying the expectations around a caretaker’s duties. If communication between the caretaker and the committee are unable to resolve the issues that have arisen, the body corporate may wish to seek independent legal advice to interpret the terms of the contract. It is important for the body corporate to have a full understanding of the terms of the engagement before any further action is taken. If the body corporate is satisfied that the terms of the engagement are not being fulfilled or that there has been a breach of the code of conduct for caretakers, they may wish to take steps to terminate the contract.

Termination by remedial action The legislation enables a body corporate to terminate their engagement with a

service contractor, or the authorisation of a letting agent, if that person is:

can terminate the engagement or authorisation if there is noncompliance within that period.

•

Engaging in misconduct.

•

Grossly negligent in carrying out their functions under the engagement.

•

Not performing their contractual duties.

•

Not complying with the relevant code of conduct or disclosure requirements.

Although the committee can vote to issue the initial remedial action notice, a committeelevel decision is not sufficient to terminate the engagement if they believe the notice has not been complied with. An ordinary resolution at a general meeting is required for termination.

Before moving to terminate on any of these grounds, the body corporate must first issue a remedial action notice. The decision to give the notice must be made by the committee or the lot owners at a general meeting, an owner cannot make this decision. The chief function of the remedial action is to notify the individual and give them an opportunity to remedy the matter. While we regularly advise clients that the format of the notice is an internal matter (as there is no prescribed form) the legislation clearly outlines what information must be included in the notice. The remedial action notice must first state that the person has acted in one of the ways listed above and provide details of the person’s actions that adequately identify the problem. The notice must also specify a period of not less than 14 days within which the issue is to be rectified, and state that the body corporate

INDUSTRY

Other grounds for termination As an alternative to termination by remedial action, the body corporate can also terminate a person’s engagement as a service contractor or authorisation as a letting agent, by ordinary resolution, if that person commits any one of the several offences listed in the regulations. Such offences include: being convicted of an indictable offence involving fraud; dishonesty or assault; carrying on a business involving the supply of services to the body corporate (or to owners or occupiers of lots) that is contrary to law; or transferring an interest in the engagement or authorisation without approval of the body corporate. Alternatively, the body corporate can also decide to terminate by ordinary resolution under the terms of the engagement or authorisation, or simply by agreement. ResortNews | August 2022

Limited involvement of the Office of the Commissioner for Body Corporate

and the body corporate. Therefore, an owner or an occupier cannot bring a dispute directly against a caretaking service contractor or a service contractor, or vice versa.

To clarify, contractual matters concerning - the termination of an engagement or authorisation; a breach of the terms of an engagement or authorisation; the performance of duties under the terms of the engagement or authorisation; or the exercise of rights or powers under the terms of the engagement or authorisation are defined as complex disputes under the legislation. This office does not have jurisdiction (via department conciliation or department adjudication) to deal with complex disputes. According to section 229 of the Body Corporate and Community Management Act 1997, applicants seeking to resolve a

While we have outlined the various legislative avenues for termination, practically speaking, the decision to terminate may not be as clear cut. In view of factors such as the likely detriment to the person being terminated, the complexity of contractual issues, and the potential for legal repercussions, we consistently recommend that bodies corporate should seek independent legal advice about their options if they are considering termination.

Clients may not be aware that our office can only play a limited role in caretaker disputes. This is mainly because disputes involving caretakers are often connected to their engagement with the body corporate.

complex dispute must have the matter determined by a specialist adjudicator or the Queensland Civil and Administrative Tribunal (QCAT). A specialist adjudicator will typically be someone who has the appropriate legal qualifications, standing and expertise in the relevant area of law. Ultimately, the choice of forum for the dispute is a matter for the applicant. You can

read more about complex disputes and the process for specialist adjudication in the practice directions that are available on our website. For those caretaker disputes where the subject matter is suitable for conciliation or adjudication through this office, the combination of parties is limited to the caretaking service contractor and the body corporate, or a service contractor

One point that will arguably be met with little debate is that it is in the best interests of all involved (caretakers, bodies corporate and owners alike) not to get bogged down in the mire of these kinds of disputes. We urge caretakers and bodies corporate to keep the lines of communication open and discuss issues respectfully as they arise, to avoid unnecessary escalation wherever possible.

PROGRAMME

ACCOUNTANTS & AUDITORS FURNITURE - OUTDOOR INSURANCE SOLICITORS

Australian Resident Accommodation Managers Association is the peak industry body representing the interests of people who are involved in management rights.

McAdam Siemon Business Advisors Daydream Leisure Furniture ProInsure SPG Lawyers

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

For membership enquiries:

national@arama.com.au | www.arama.com.au

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

1300 ARAMA Q (1300 27 26 27)

ResortNews | August 2022

INDUSTRY

PERSON OF INTEREST

Images courtesy of Flood Legal

Flood of legal ideas for management rights By Grantlee Kieza, Industry Reporter

Sharon Flood, the legal director of rapidly expanding Kingscliﬀbased firm Flood Legal, is bringing welcome initiatives to the management rights industry. This month she talks to Grantlee Kieza about them.

You are extremely busy at Flood Legal and not just because you have five pre-teen children? We sure are. I started with a firm of me and one other person, and now there are 10 of us at Flood Legal and I’m still looking for further growth in the business. I have an awesome team and it’s been a great journey.

Daniel and Sharon Flood

Management rights is the biggest part of our business, but we also do conveyancing, the NSW strata component, INDUSTRY

as well as wills and estates. We offer a true fixed fee and we’re getting a huge name in the industry for that fully fixed fee service. None of our clients ever get a surprise at the end of the transaction, and unfortunately that’s not the case with some other lawyers. I want to have a long-term relationship with our clients and want them to come back to me for their future services. We find that many of our management rights clients will go on to purchase additional properties or want to get their wills and estates in order, and we are well placed to help them with that.

You do management rights a little bit diﬀerent to other legal firms? We want to make the transaction as easy as possible for the client and to give them as ResortNews | August 2022

It’s a wonder you have any time to be a lawyer, with five children.

much support as we can, during the actual transaction but we are also there to help them once they are in the management rights complex.

They are beautiful children, too. Rex is 11, Mac 9, Halle 8, Tillee 7, and Fox 4.

I have a lot of clients who call me long after they have established their business, asking questions about what they should do with a range of problems, it can be issues around owners or bodies corporate. Because we have an ongoing relationship, it means I can easily look up their details and give them on-the-spot answers rather than saying “would you like to make an appointment”, open a file and charge them for it. This is just one example of how we are doing things differently. We are embracing technology, for example we have a Flood Legal app where clients can download and track their matter in real time. It also gives our clients access to their documents and there is even a message function they can use to chat with us. We are also continually looking at ways to improve automation as much as we can.

I’m fortunate to also have a remarkable husband, Daniel. He is amazing, I work a huge number of hours and he is a great support. I didn’t really have any time off work while I was having babies, so it was essential to have great teamwork at home.

Left to right: Fox, Tillee, Mac, Halle and Rex

I have a lot of clients who call me long after they have established their business

It’s crucial to have legal people who are specialists in management rights?

People are putting their life savings into management rights, aren’t they?

Yes. We look after the whole transaction from start to finish and we are involved before our client finds the complex. I get a lot of calls from prospective managers before they’ve even found what they’re looking for. We have a chat with them, help them and guide them on what sort of things might, or might not suit them and what things to keep an eye out for from the outset.

Yes, and many are stepping into something in which they will live and breathe, so it’s really important for them to know that the complex is the right fit. That’s the very early stage, but down the track when we are doing our due diligence, we look for anything going on in the complex and in the business, that might deter them from buying. We are looking to see if there are any disputes between the manager and the committee, or any building defects in the complex which may create additional work or possible future costs.

What are the main things they should be keeping an eye out for? It really comes down to what sort of business they’re looking for. We can help them with that, on important decisions like whether to buy a permanent letting property or a holiday complex. We help them to decide what they are actually looking for in terms of units and if they want to live on site or not? The purchase process can be very daunting, so we want to give potential buyers as much support as we can, from the very beginning. ResortNews | August 2022

at Hynes Lawyers where I learnt so much from Frank Higginson.

You graduated from Bond University with first class honours in law? Yes, I was a mature age student, and it was my second degree. Even though I didn’t pursue a real estate career I love property and development, and it made sense for me to go into property law. I’ve been working as a lawyer for 17 years and I’ve had my own practice for eight. I started out

My husband Daniel and I first lived in Brisbane before we moved down to the southern end of the Gold Coast where I set up Flood Legal at Kingscliff just over the border in NSW. I absolutely love it here. In fact, I am taking a beach walk while talking to you, if only you could see this view - it is absolute bliss!

Has your varied career helped you as a lawyer specialising in management rights? Yes. I think it’s another one of the things that makes my legal practice different from some of the other lawyers. I understand how to explain things well in a common-sense manner. Many lawyers have a different perspective on how they should treat clients, but I want my clients to be 100 percent comfortable with what I’m doing, and I try to do that in a very relaxed and practical way. What’s more, I now consider many of my clients to be good friends.

INDUSTRY

What do you do when you’re not helping people with management rights? Do you get to travel? We live in a beautiful part of the world, and we go to the beach a lot. We also have a holiday house on Fraser Island, where we spend a lot of time. The kids keep me busy, but I love it.

What do you see as the future for management rights? Is it a growth industry? I think it must keep growing. It’s something that everyone needs, especially in Queensland. I focus on Queensland and NSW but in Queensland it’s such a large industry and bodies corporate can’t do without it. It’s ever changing. Since I started 17 years ago, I’ve seen massive differences in transactions, and in the way that we deal with clients and bodies corporate. Now it’s a totally different kettle of fish to the way it was 17 years ago, and I think it’s going to continue evolving and growing. It’s all testament to why people in management rights need specialist lawyers. We can give clients the constant update and support that they need. Finally, I’m happy at how well I’ve seen the management rights industry perform during COVID. Especially as so many other businesses didn’t fare anywhere near as well. Obviously, we saw holiday rental properties suffer during lockdowns before bouncing back but permanent letting complexes were pretty much unscathed.

LEGAL EASE

Topping up a sound investment decision

There really is no such thing as a passive investment in business, and a management rights business is no diﬀerent. To get the best return from a management rights investment requires constant work, and one key aspect always worth bearing in mind is the need to top up your management rights agreements. In effect, a ‘top up’ adds a further option to an existing contract, effectively extending the term of your agreement. Extra time means extra certainty for your ongoing financial return and related capital value. It is important to understand the distinction between a ‘top up’ and what is the exercise of an option, which is the exercise of an existing contractual right.

Management rights agreements are all structured differently. They can be straight 10 or 25-year terms at the maximum allowable under the relevant regulation module. They can also be any term less than the maximum allowed. One way to structure an agreement is to have an initial term and any number of options. For example, a 15-year term with a 10-year option (totalling 25 years), a five-year term with a five-year option (totalling 10 years), or a three-year term with a four-year option and a further three-year option (totalling 10 years).

A ‘top up’ adds a further option to an existing contract, eﬀectively extending the term of your agreement Frank Higginson, Partner, Hynes Legal

‘Topping up’ an agreement is adding a new right to the agreement, it is not exercising an existing right under it (although the need to do that when that first term comes to an end is critically important). You usually top up when you are three to five years into your agreement term. A top up essentially seeks to add that expired term back in. From a banking and general industry perspective, provided that the any new option is largely exercisable at your discretion, it is generally considered to be the term that exists. So, with a 15-year term and 10-year option, the industry basically regards that as a 25-year agreement. When we suggest you ‘top up’ you are creating a further option term which extends the maximum tenure of your management rights agreement. Using the same example, the above agreement (when looked at as a whole) would then be a

15-year term with a 10-year option with a further five-year option.

for a further period and provide themselves with far more security.

Assuming the first five years of the term had elapsed, the agreement could then be topped back up to 25 years to the maximum allowed under the Accommodation Module.

This is why we recommend to managers that they top up whenever they think the body corporate in general meeting (and hopefully the committee) would be agreeable to supporting that variation and why we promote our clients to do it when we think the time is right.

In this industry, certainty equals value. Longer tenure creates more certain business income. More certain business income means you at least stabilise the value of your business, but potentially increase it. Imagine there are two management rights businesses side-by-side that are for all intents and purposes identical. One’s management rights agreement term is for 15 years, and the other is 25 years. It is selfevident which one would be easier to sell, and it follows that there may well be a difference in capital value between the two of them. For what is a relatively small legal spend, a management rights owner can secure tenure

For a general discussion of this concept, see the Hynes Legal webinar on the topic. Frank Higginson is a partner and Director at Hynes Legal, with more than 25 years’ experience in management rights and body corporate law. Well known for cutting through the most challenging legal problems to deliver straight-talking, commercially driven advice, Frank is an active member of the management rights industry. He is a regular presenter at seminars and events where he oﬀers innovative thought leadership on addressing the multiple challenges and opportunities facing the strata industry.

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

MANAGEMENT

ResortNews | August 2022

Happy New (financial) Year! While unlikely at the top of anyone’s todo list, getting ready to have your income tax returns prepared and lodged should be high on the agenda early in the new year.

Liaise with your accountant to book in a time to have your returns prepared and if unsure request a list of information they will need to get started. Even if returns and tax bills are not due for some time, it’s always easier to compile information soon after the period end whilst transactions are fresh in your mind and before documents fall further down the pile and harder to find when required. Your accountant can prepare your returns, let you know your tax liabilities but hold for lodgement until later in the year to allow you to access later due dates for payment if required. Get the monkey (your accountant) off your back and tick that task off your list earlier and focus on the year you are in.

Lodgement due dates Where your returns are lodged by a registered tax agent and your group has less than $10 million in annual total income, the due dates for lodgement are as follows:

October 31, 2022 Individuals, trusts and companies with one or more outstanding prior year return as of June 30, 2022

March 31, 2023 Individuals and trusts whose latest return resulted in a tax liability of $20,000 or more. Companies with a total income of more than $2 million in the 2020-21 financial year

May 15, 2023 All remaining individuals, trusts and companies not required to ResortNews | August 2022

Get the monkey (your accountant) oﬀ your back and tick that task oﬀ your list

BY ALL ACCOUNTS

Tax returns & ATO debt management

Lel Parnis, Principal, Holmans lodge earlier and not eligible for the June 5 concession. The concession allows these tax returns to be lodged by June 5, 2023, without penalty, provided that any payment required is also made by this date. This is a concessional arrangement where penalties will be waived if lodgement is made by this date.

Payment due dates There are staggered payment due dates for individuals and trusts with a May 15, lodgement deadline depending on when the return is lodged: •

Return lodged on or before February 12, 2023, Tax payment due March 21, 2023

•

Return lodged between February 13, 2023, and March 12, 2023, Tax payment due April 21, 2023

•

Return lodged between February 13 to March 12, 2023, Tax payment due June 5, 2023

For returns not due on 15 May, the payment due date is generally 21 days from the lodgement due date. The payment dates above are the earliest possible due dates for payment of tax and provide at least two weeks for processing by the ATO. If processing of a tax return takes longer than this, the actual due date for payment on the notice of assessment will be later than the dates indicated above. Always refer to your actual Notice of Assessment or check with your accountant to

confirm due date if uncertain to avoid late payment penalties and/or interest charges.

(October 31 if no extension approved) to avoid additional late lodgement penalties.

Get up to date

Interest-Free Payment Plans

The ATO’s activity on outstanding tax lodgements and payments is increasing. Various options are available to taxpayers and tax and BAS agents when it comes to managing your obligations. The past two years has been extraordinarily challenging, and many small business owners may have found themselves in unfamiliar waters. Some may have fallen behind in their lodgements and/or owe a tax debt for the first time. Others with existing tax debts may find themselves deeper in debt than before the pandemic. The ATO Commissioner’s Annual Report 2020–21 explains that, given the significant impact of the pandemic on the community, the ATO adjusted their debt collection approach in three phases to enable taxpayers to get back on track, essentially aiming to increase communication between the ATO and taxpayers to assist with meeting lodgement and payment obligations. Hiding from the taxman is not the way to go if you want to seek remission of interest and penalties. If you have outstanding lodgements, contact your accountant, and set a timeline to work together to get everything up to date so they can seek an extension for the 2022 tax return lodgements

MANAGEMENT

Small businesses with an annual turnover of less than $2 million and ATO debt of $50,000 or less relating to obligations less than 12 months overdue may be eligible for interest-free payment plans. During the 12-month interestfree period, the taxpayer must comply with all lodgement and payment plan obligations. Another clear indication that the ATO are willing to assist small businesses getting on top of ATO debt but also the importance in keeping up to date with all income tax and BAS reporting obligations, if lodgements are not made on time, any ATO payment plans (interest-free or otherwise) will default. Even if you need more time to pay, it is important to keep lodging on time. Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

MOTEL MARKET

Avoid selling mistakes How much easier would life be if we never made a mistake?

You need to give a bit to get a bit

On the flip side, we would never learn from our mistakes either. Given the choice I would prefer to be able to say I have never made a mistake. That way I would never have that horrible feeling of “how did I mess that up”. With anything we do in life trying to minimise the mistakes made along the way would seem human nature. Trying to lessen the negative impact on ourselves is a self-protective measure. Having said that, some must have very little self-protective measures, as they seem to encourage it. Some of us are very hard on ourselves when we make a mistake, whereas others can shrug it off quickly and move on. I guess it depends on how big of a mistake it is and what the fallout is, monetary, physical, mental, relationship wise, etc. The sale process of a business is no different to any other situation where mistakes are made, it just depends on how big those mistakes are in the scheme of things. Small mistakes may not cause too many issues; however, those larger ones may end up being catastrophic and result in a contract of sale collapsing and therefore potentially costing the seller millions of dollars. Here are a few basic tips for anyone selling a business that may assist in achieving the desired result or minimising any damage during the sale process.

Be ready

are to be made with a calm head, ensures a better result. Andrew Morgan, Queensland Tourism and Hospitality Brokers

get real) the wheels can fall off very quickly, and any hesitation on behalf of the seller will see a buyer lose interest, as fast as they showed it in the first place.

Poor choices Choices are what we must live with once they are made. Not often do we get a second chance once the milk is spilt. The sale process is of course made up of one long line of choices that need to be made at each point in time. Making the right choices results in champagne on settlement day, opposed to walking away bitter, due to a lesser result being achieved because of poor choices. Often it is better to sit back and consider a decision carefully rather than take things personally and reacting quickly and poorly as a consequence. Experience is a big factor here and often experienced sellers will be far more relaxed in their decision making. Having the experience to be less emotional over decisions and realise they

Bird in the hand The market for businesses often depends on the business type and what is required to be able to operate that business successfully. Motels and accommodation businesses generally have a ready market for many reasons. This ensures that sellers can find a buyer if they are fully prepared and have priced their business according to the market. However, this is not to say that potential buyers of motel businesses grow on trees. At times the market will be very active, and other times, not so much, meaning buyers may not be active in the market therefore the business may take longer to sell or may not be able to achieve a high price. When one has found a genuine, fully funded potential buyer for their business, the question should be “what can I do for you to make this happen?”. Not trying to make things difficult or put-up roadblocks to the process because of the inability to see the big picture.

Give and take I always like the saying “you need

And finally, often during the sale process the buyer is not only buying the business one is selling, but they are also investing in the seller to some extent. The credibility of the seller will go a long way to ensuring a smooth sale process. It’s not always possible, but when the buyer and seller have a mutual respect for each other, the sale process is far more rewarding for all involved.

Make sure everything is fully prepared and ready for the process to commence. Too many times I have seen a potential sale collapse either early or late in the process due to the seller not being fully prepared. This means many things but, physical documentation and being mentally prepared are two that first come to mind. It is no good gaining the interest of a potential buyer only to be tardy in providing documentation. Also, not fully committing mentally to the sale will be a problem. Many sellers think they are ready to sell but when an interested buyer is presented (when it starts to

to give a bit to get a bit”. I think that if a seller can think about that saying when going through the sale process, they will end up achieving a better result. It simply means doing things for the process, to receive something back. It’s not about bowing down and accepting every request that may or may not be reasonable, it means a level of generosity will come back to you in time. An adjunct to this is putting yourself in the other party’s shoes. Trying to understand why they requested what they have and therefore a more suitable rather than emotive response can be made. I think trying to understand where the buyer is coming from can help provide a response that is positive to the situation, rather than being abrasive.

MANAGEMENT

ResortNews | August 2022

Using data to maximise occupancy Data analytics has long been the bedrock of good management in most industries including the hospitality industry, but we are entering an era of digital transformation with business intelligence in the hotel industry. When you think about the volume of data gathered in most accommodation businesses it has become impossible to manage this information manually or by simply using spreadsheets now. The list of available metrics is almost endless and it’s not just your own business that you should be looking at. Hotels operate in a highly competitive environment. So effective data analytics includes information on both your own performance and that of your competitors. So, what types of hotel industry business intelligence are going to help you to maximise occupancy and increase revenue? First of all, we need to understand how you actually calculate your hotel occupancy rate.

How do you calculate occupancy rate? Occupancy rate is the percentage of occupied rooms in your hotel at any given time and is one of the most simple but vital pieces of hotel business intelligence you have at your disposal. It is calculated by dividing the total number of rooms occupied, by the total number of rooms available and multiplying by 100 to give you a percentage. Analysing the occupancy rate by room type allows you to discover what room types outperform ResortNews | August 2022

the average daily rate (ADR) and revenue per available room (RevPAR). Let’s take a look at RevPAR in a bit more detail.

Revenue per available room (REVPAR)

Sylvia Johnston, Senior Executive, HiRUM Software Solutions

others and what room types you have the opportunity to fill.

Factors aﬀecting hotel occupancy rates There are obviously many different factors that could affect your hotel occupancy rates but one of the crucial factors that many overlook and that can help set you apart is being able to understand not only your own data but that of your competitors too. If you keep a close eye on the following hotel industry business intelligence metrics and adjust accordingly you put yourself in the strongest position to be able to fill as many rooms as possible, as profitably as possible.

Pricing strategies Understanding revenue performance and the impact of pricing strategies can be time consuming and complex if you don’t have effective hotel business intelligence software to capture, analyse and simplify the data. Being able to accurately predict the demand for rooms means that you can price effectively. Intuitive pricing is also vital to ensure that your rooms are always listed at the best price, adjusting rates and closing out channels based on your performance.

This is considered by many in the accommodation industry to be one of the most important hotel business intelligence metrics. Understanding RevPar helps you to maximise the revenue generated per room. RevPAR is calculated by using the Average Daily Rate ($) and dividing this by the Occupancy (%) to understand how to effectively price available rooms. It’s even more valuable if you can compare RevPAR against competitors so that you can adjust your pricing in line with the market. However, consideration needs to be taken when working towards improving your RevPAR (attracting more guests/higher occupancy) as the goal should be to improve financial performance overall. So, you need to keep in mind that more guests often mean higher costs involved with accommodating them.

Distribution channel analysis Understanding which of your marketing distribution channels is delivering the most bookings

and which are under-performing can ensure that you focus your marketing budget effectively. You should also be paying close attention to the distribution cost of each channel e.g., commission and taxes.

SOFTWARE SOLUTIONS

Business intelligence for the hotel industry:

It’s important to recognise that identifying where the greatest number of bookings are coming from and the most amount of revenue can often differ. Ensure that distribution channel analysis is built into your hotel business intelligence metrics so you can unlock insights into the revenue that is generated from specific sources and develop a greater understanding of how this impacts your bottom line.

Customer profiling and segmentation Digging into the data you hold about your guests can help you create a ‘target profile’ which, in turn, enables you to identify more of your most profitable customers. This can include looking at your business intelligence related to your visitor geo-location, demographic profile e.g., age, family status etc., the number of returning customers and preferred room types. Effective customer segmentation means you can create targeted marketing campaigns that avoid budget wastage.

QLD - NSW - VIC - WA

The revenue management business intelligence metrics that are really going to be vital in helping you achieve this include MANAGEMENT

THINKING MR

It’s all in the mind Travel anxiety is the fear of visiting an unfamiliar place. It can also involve the stress that comes with planning your travels. Even if you have no history of anxiety, the idea of being outside familiar territory can throw you into panic mode. There’s a lot of life affirming stuff on social media these days. There’s also a stack of people leading us to believe they are leading fruitful and happy lives with not a care in the world. I contend that much of this has the potential to give us a warped view of the world and some unrealistic expectations. In fact, I think much of the life affirming happiness stuff is BS. How do I know? Truth is, I

No one asks you how you are, expecting a sad or emotional response Mike Phipps, Director, Mike Phipps Finance

don’t, but I have reason to be sceptical. It is true that some poor souls post some prett y sad stuff but for the most part it’s all love, peace and beautiful days ahead. I guess social media was only ever intended to be a window into positive emotions, not a place to spill your guts, so to speak. I reckon it’s also true that while most people are prett y happy to share happiness with virtual strangers, our

darker experiences need to be hidden away. If a wide and sometimes unfathomable range of emotions defines the human condition why is happiness the only one we feel comfortable sharing, or indeed experiencing in any sense. No one asks you how you are, expecting a sad or emotional response. Most of us, me included, just aren’t comfortable with that stuff. More to the point, in this age of expectations of happiness,

MANAGEMENT

how do we manage emotions that occasionally blindside us? All this crossed my mind recently. I was posting a photo from Switzerland during the first week of a planned six week cycling trip. I’d bought a new bike, flown business, hired a nice car and was staying in a very beautiful place. I was living the dream and sharing it all on Facebook. There were many positive comments and life affirming memes. ResortNews | August 2022

So why did I feel miserable? As most readers know I’ve explored a bit and I like to think I’m comfortable traversing the globe. Even in these days of complicated travel I reckon I’m relatively happy navigating foreign lands. So why, one week into the trip of a lifetime, was I on the verge of a breakdown? Having never experienced this before I assumed it would pass. Mind over matter and all that positive reinforcement stuff. It got worse. By week two I was having trouble functioning. Calls to home left me in tears and basic tasks took on epic proportions. Ok, this is now really scary! Pull yourself together Michael, this is silly. Didn’t work. Rang my doctor. He’s as mystified as I am. Actually, seems a little taken back and uncomfortable with my revelations. I guess GPs aren’t used to usually reliable old blokes they’ve known for years going nuts in the blink of an eye. Sounds like an extreme anxiety attack, come see me if you make it home. Thanks. Couldn’t bring myself to get on the bike and started double guessing everything I’d planned. You know that feeling when you lean back on a chair

ResortNews | August 2022

and just catch yourself? Had that constantly. Imagined many misadventures and convinced myself I needed to get home. In desperation I changed tack, cancelled some plans, and had a couple of days off the bike in a little hotel high in the Swiss Alps. No better, got to get home. Flights changed and back to Geneva to sit tight and wait. Six weeks had turned into 12 days, and I was desperate to be in familiar surroundings. Managed to navigate car drop off and get to airline check in. COVID vaccination certificate all good but where’s your updated digital travel declaration since you changed your flights? Your government won’t let you back into your country without one. The government App isn’t working and I’m not the only Aussie looking like missing the flight. Now I’m in full melt down. Call home. Now I’ve got the managing director in tears and make no mistake, that’s quite an achievement! My IT savvy daughter in law Tayla watches a tutorial You Tube clip in the middle of the night and gets me sorted. Talk about the calm in the eye of the storm, what a woman!

Despite delays and a deteriorating emotional condition, I manage to make my flight and now I write these reflections from 40,000 feet. I get home and go see my doctor. “What the hell happened doc?” No specific trigger event, no history of problems… nothing. Turns out sometimes there’s no rhyme or reason to this stuff. The most likely explanation is that what I experienced was a culmination of apparently minor stress events resulting in a pretty scary mental health episode. My doctor tells me that recognising what’s happened and being open to help is the key to managing how your head works. Turns out to be excellent advice and I’m soon back to my normal grumpy and paranoid self. What have I learned? Alcohol doesn’t fix everything, but it sure helps… no, not really. Never tell someone to snap out of it when they are feeling down, it ain’t that easy. Never take all the happy snaps on social media at face value, life’s not like that. Never assume that past experience is a marker of future emotional responses,

MANAGEMENT

surprises await. Never underestimate the impact of simply being homesick, there’s no place like home and family. Recognise anxiety for what it is and seek help. But, most important of all… never ever travel again without the managing director! This episode has reinforced something I’ve always suspected and written about previously. For many people a holiday is a way to release the pressure cooker that is life in today’s world. For most people it’s a positive experience but accommodation providers need to appreciate that some guests will arrive stressed out of their minds. Appreciating this and having processes that don’t add to that stress seems a great guest wellness strategy and one that I am sure will be rewarded by repeat bookings. By the way… I have thought long and hard about publishing this as it may have a negative impact on how clients perceive our business. We love our clients and more importantly we trust them. Honesty is everything. If I can fess up that sometimes your head plays up, so can you.

GOOD GOVERNANCE

Building consultant vs engineer or private certifier

Getting the right fit for your building defect issues

that provides appropriate and cost-effective advice, opposed to scaring you about excessive defects and upselling their expensive quote for repairs. For example, a building consultant could be a building inspector or a project manager.

With all the rain we experienced earlier in the year most buildings in the eastern seaboard of Australia have been put through their paces in terms of waterproofing, cracks and structural integrity. Did your building pass the recent severe weather test? Or did you discover chinks in the armour allowing water ingress into habitable areas? Most building defect scenarios that adversely affect your building can be resolved by consulting with your chosen building consultant or project manager. Not to be confused with a building works contractor (who is selling you remedial works and repairs), engaging with a building consultant that specialises in inspections and reports (opposed to quotes for repair works) will ensure you get a holistic inspection with a “best for building” focus, and a cost-effective and relevant remedial scope that you clearly understand, and is within your budget. Then the building consultant will obtain “apples for apples” quotes for you and coordinate the works to ensure they are done correctly.

General practitioner versus specialist doctor Lynda Kypriadakis, Diverse FMX

For the context of this article, a building consultant is a person that holds building industry qualifications to match the same ‘Class’ of building you have. For example, if you have a high-rise apartment building that is Class 2 under the Building Code of Australia, then your building consultant will hold an Open Builder’s License. If you have a townhouse villa complex that is Class 1, then your building consultant will hold a Low-Rise Builder’s License or Residential Building Inspectors License. The key to selecting your building consultant is confirming that he and/or his business do not provide services that include actually doing the building/repair works. That is because you want a building consultant

Consider your building consultant as the local GP. They are the individual that knows the history of your complex and will look at all your building ailments as they arise, big or small. When necessary, your building consultant will know when to refer you to a specialist (for instance a structural engineer) and when to involve the private certifier for assessable building work. Triggers for escalating a defect consulting matter from a building consultant to a specialist include: •

•

Assessable building work under the Building Act requires a Private Certifier to be involved. Structural defects that exceed allowable tolerances require a structural engineer to be involved.

MANAGEMENT

•

New structural design works also require the relevant engineer to be involved.

•

Changes to the conditions imposed in the Development Approval require a Town Planning Consultant to be involved.

•

Changes to the approved fire protection system may require the local fire brigade to be involved.

Case study 1: Leaking membrane roof The body corporate experienced water leaks from their membrane roof into the upper-level apartment and went straight to three different waterproofing contractors for quotes. All three quotes came back ranging in price over 100 percent and with differing scopes of works. The committee chose the cheapest quote and at the very next rain event the leak returned, even worse than before. There was no warranty certificate provided and the waterproofing contractor did not reply to any calls, nor did he return to fix, so the body corporate had to start all over again. ResortNews | August 2022

Consider your building consultant as the local GP

Tip for next time: Ensure the building consultant is engaged as soon as the leaks appear and they will do the inspection, write a report on the defects, conduct the water tests and prepare the remedial scope of works for tendering. Then they will technically substantiate the works and obtain the necessary warranties for the body corporate.

Case study 2: Rotten deck timbers The body corporate discovered the balcony decks across the complex were rotting and engaged a structural engineer to inspect. The engineer’s inspection report that followed spoke about a remedial solution but did not inform the body corporate that the repair works were considered assessable building work under the building Act, and that a private certifier would be necessary to process a building permit. The repairs were half done before a building consultant mentioned the certification requirements and the works had to be put “on hold” while the engineering design and building approval were processed. The unit owner could not use his deck for over a year while this went on. Tip for next time: Ensure the building consultant is engaged as soon as the decking defects appear and they will do the inspection, write a report on the defects, coordinate the engineer and private certifier and prepare the remedial scope of works for tendering. Then they will coordinate the engineer and private certifier to technically substantiate the works and obtain the necessary ResortNews | August 2022

I have said it a million times, but I am going to bang the drum again, communicating with your owners is essential to building and nurturing your relationships.

warranties and regulatory compliance certification for the body corporate

Case study 3: Full reroof under insurance The body corporate suffered roof damage in the hail storm and were successful in their insurance claim to have the roof fully replaced under the insurance policy. The insurer obtained quotes and coordinated/ arranged the reroof works. Within six weeks of replacement the roof started leaking, and the insurer referred the body corporate to deal directly with the roofing contractor on fixing the defects. The roofing contractor never returned, and the leaks went on for four years, significantly damaging internal apartment ceilings and walls, before the building consultant became involved and discovered that the reroof had not been done lawfully (for example no building approval). This basically rendered the reroof works as void of warranty and the body corporate eventually had to have the reroof done again, this time with structural engineering and a building approval, at their own significant cost. Tip for next time: Ensure the building consultant is engaged as soon as the roof defects appear and they will assist with the insurance claim process to ensure the works are completed lawfully, with all necessary engineering upgrades, building approvals, warranties, and certificates. It is important to understand that the insurance company is not a building consultant or project manager.

It is funny, you ask the kids of today (yes, I am 35 and just said “the kids of today”) to pick up a pen and write a letter and they seem to look at you like you are from another world. Picking up the phone and calling someone, that is “so old school” I have been told by my teenage stepdaughters. Which brings me to the title of this article, let’s bring back the old school way of communicating, it worked then and guess what it still works now. I want you to think of your local coffee shop, restaurant, or any other establishment that you are a regular client. How would you feel if one day, on your usual visit, the owner came out and gave you a handwritten card that said, “thank you for your loyalty and for being a customer?” I don’t know about you, but they would have to start making prett y bad coffee for me to ever think about leaving them and going to a competitor. The second beautiful thing to come from such a small gesture is that is something I would tell my friend, family, colleagues and anyone that would listen. I understand that the business of management rights is on a much larger scale than a café, but it is all about how the operator makes you feel at the end of the day, regardless of the monetary factor.

MANAGEMENT

BUILDING RELATIONSHIPS

Let’s kick it old school

Kelley Rigby, Managing Director, Letts Rebuild

Phone calls are another great way to connect, why not spend an afternoon calling your investors to see how they are going both mentally and (without being too invasive) financially. Times are tough now, and it might be a great opportunity to just touch base, show you care and see if there is anything you could be doing to help ease the stress of owning an investment property. I understand rental prices are hitting extraordinary highs but as the interest rates slowly creeps up, as does the cost of living, I am sure it has got some of our investors a little bit anxious. A small gesture of gratitude thanking them for continuing to choose you to look after their investment, a phone call to see how they are and offer assistance will take your business, and possible personal relationships with your clients to a whole new level. Let’s kick it old school and take time to ensure that the relationships we build in our business are strong and healthy. Not only is it good for business, but it is also good for the soul.

more than 92,000 jobs across Queensland,” Mr Hinchliffe said. “This is a unique concept that combines music alongside an established regional event and showcases our diverse landscapes to visitors who are after a different kind of memorable experience on their holiday.”

TOURISM REPORT

Queensland promises great soundtrack for road trips

Mr Hinchliffe said Queensland Music Trails would create regional job opportunities, boost local economies and drive visitors to all corners of the state.

By Grantlee Kieza, Industry Reporter

“On the road again, I can’t wait to get on the road again.”

“The Queensland Music Festival concept will showcase our stunning landscapes, raise the profile of existing events, integrate our First Nations cultures through art and music, and provide domestic and international visitors another reason to come to Queensland.

That was a catchy refrain from one of country music star Willie Nelson’s biggest hits, and Queensland tourism chiefs are singing along with a $20 million investment in the ultimate soundtrack to some iconic road trips.

“From country and western in Stanthorpe, to indie rock in the

The Queensland Government has a three-year plan to deliver a bold concept designed to put Queensland on the map as an international music tourism destination. Queensland has already produced some of the industry’s biggest stars including The Bee Gees, Keith Urban, Powderfinger, Savage Garden and The Go-Betweens and next year 16 Queensland communities across four regions will host major music festivals, starting in the outback in May 2023. “Through this program, you’ll be able to see some of the world’s biggest stars play at some of the most remote and picturesque destinations in the country,” said Premier Annastacia Palaszczuk.

Delivered by the Queensland Music Festival (QMF), the 2021 Queensland Music Trail pilot included performances by Opera Queensland and Ensemble Q at the Jimbour Homestead in the Darling Downs, music while stargazing at the Cosmos Centre in Charleville and visual theatre at twilight on the stunning landscape of Quilpie.

Whitsundays, classic rock in Townsville, opera in the outback or Indigenous artists at Yarrabah Music and Cultural Festival. These events will expose tourists to some of the best experiences Queensland has to offer.

Tourism Minister Stirling Hinchliffe said the Queensland Music Trails would drive domestic and international visitors to regional destinations with itineraries linking music events, and local tourism, art and cultural experiences.

“Importantly, this investment will support jobs and inject funds into our music industry and growing regional communities that were hit hard during COVID.”

“The arts are vital to the state’s economic recovery, and before the global pandemic, contributed $8.5 billion annually to the economy and supported

TOURISM

“In the lead-up to the Brisbane 2032 Olympic and Paralympic Games, we will continue to foster the development of Queensland’s arts and cultural event offerings capable of driving visitation and legacy benefits for Queensland’s regions. “This will be a key step to building Queensland’s cultural events calendar to be ready to host the world in 2032.” Locations set to host a Queensland Music Trails event in 2023 include: Toowoomba, Jimbour, Roma, Charleville, Blackall, Longreach, Winton, Yarrabah, Cairns, Mareeba, Mossman/Port Douglas, Mackay, Proserpine, Airlie Beach, Townsville, Sunshine Coast, Brisbane, Scenic Rim, Gold Coast and Stanthorpe. ResortNews | August 2022

Domestic visitors flock to QLD to compete in paradise By Mandy Clarke, Editor

Queensland has been crowned the nation’s tourism capital, with TNQ, Whitsundays and Sunshine Coast reaching record levels of visitor expenditure. A new ‘Domestic Tourism Snapshot’ released by Tourism & Events Queensland (TEQ) showed that the Sunshine State outperformed the national average and all other states for Overnight Visitor Expenditure (OVE) growth. The snapshot revealed holidaymakers continued to lead the way with OVE in March 2022 recorded at 45.2 percent or $896 million higher than in March 2019, the 45.2 percent split evenly among intrastate and interstate holiday visitors. Some of the growth has been attributed to the state’s largest endurance events, including the GC Marathon, Noosa Tri and IRONMAN Cairns which are bringing in droves of interstate competitors to take part, particularly from NSW and Victoria. On top of attending, participants, many of whom are accompanied by their families, have also built-in extra time to stay on and relax on a post-event basis in various locations across the state. Tropical North Queensland, the Whitsundays and the Sunshine Coast in particular, have all been beneficiaries. When compared to 2019, Tropical North Queensland’s OVE was up 18.8 percent, while the Sunshine Coast was up by 5.7 percent and the Whitsundays by 22.9 percent across the

ResortNews | August 2022

three-year trend. The TEQ snapshot shows the increase in expenditure has predominately been led by an increase in spend on accommodation fuelled by a strong increase in average daily rates. A total of 82.1 million domestic overnight trips were taken in Australia in the year ending March 2022, which is down 30.1 percent compared to the pre-COVID-19 benchmark of the year ending December 2019. Overnight visitor expenditure (OVE) was $63.3 billion, which is 21.5 per cent lower than the year ending December 2019.

Images courtesy of This is Queensland

capacity and income experienced by the export tourism industry. Australian Tourism Export Council (ATEC) Managing Director, Peter Shelley said it is now critical that the government invests in export marketing support funding to ensure Australia is globally competitive if the country is to see a more positive result in the next IVS issue.

National holiday OVE has returned to pre-COVID-19 levels (up 0.5 percent) at 33.7 billion with Australians continuing to holiday at home when they have been able to. However other travel purposes are still softer including VFR expenditure, down 21.6 percent to $9.9 billion and business OVE, down 46.2 percent.

Meanwhile, international tourists are back The first solid measure of Australia’s inbound market since borders reopened, the latest International Visitor Survey (IVS) results to the end of March 2022, shows despite the return of international visitors the export tourism industry’s road to recovery still has a long way to go. The figures reveal a 94 percent decline in visitor numbers and an 89 percent drop in spend compared to March 2019, highlighting the significant loss of

“As 2019 drew to a close, Australia saw over 8.7 million international visitors annually who spent over $45 billion in our economy,” Mr Shelley said. “While there are notionally no barriers to travel, the reality for both traveller and tourism businesses is quite different as a shattered supply system attempts to reconnect and revitalise.” Mr Shelley said barriers to rebuilding include economy wide issues like staffing, international pressures such as fuel prices and the war in Ukraine as well as Australia’s own bureaucratic systems. “The length of time to process visa applications for intending international visitors has blown out to an extreme where people

TOURISM

are either receiving approval at the 11th hour or even after they were due to depart which is having a direct effect on our desirability in the international market. With so many barriers to travel remaining, Australia must urgently remove any impediments which are within its control.” During the two years of international border closures, many tourism businesses were forced to shift focus to attract domestic visitors and have been slow to return to the inbound market. However, Mr Shelley warned that with Australians once again heading overseas, if the inbound market does not increase, the already significant gap between tourism imports and exports will grow considerably at the expense of the Australian economy. He said: “The recovery of Australia’s $45bn tourism export industry is both a marketing challenge in attracting intending travellers to come to Australia, as well as a tourism product challenge, ensuring we can rebuild out travel offering which has been significantly eroded by the pandemic.”

EVENTS

The inaugural Management Rights Report launch Well, the sun certainly wasn’t shining for ResortBroker’s MR Industry Report launch party in July, but fortunately the cold, gloomy weather didn’t stop an outstanding turnout from the leading lights of the industry. The main function room of The Calile Hotel was filled to the rafters with an array of industry leaders - operators, lawyers, developers, accountants, valuers and agents, all intent on a delicious breakfast and the launch of the MR Industry’s first over-arching report. A rousing welcome from Tim Crooks (Director) was followed by a thorough run-through of the report by Alex Cook (Director) and Josh Mangleson (new inhouse Property Economist / Analyst). Comments from the numerous attendees continue to roll in, and all have been extremely positive. Not only did everyone seem to thoroughly enjoy the event, but the feedback on the quality report itself, and its contribution to the industry, has been great.

Josh Mangleson, ResortBrokers in-house Property Economist

EVENTS & APPOINTMENTS

ResortNews | August 2022

2022 ARAMA INDUSTRY EVENTS CALENDAR For registration and/or event information please contact us on 1300 ARAMA Q (1300 27 26 27), email national@arama.com.au or visit: https://www.arama.com.au/

BRANCH

EVENT TITLE

DATE

TIME

LOCATION

REGISTRATION

ALL Gold Coast Sunshine Coast Brisbane Byron Bay ALL ALL ALL

MRITP Trades & Services EXPO Trades & Services EXPO Trades & Services EXPO Training & Education CPD AGM and Members Forum AGM and Members Forum MRITP

Thursday, 18 August 2022 Tuesday, 13 September 2022 Wednesday, 14 September 2022 Thursday, 15 September 2022 Tuesday, 11 October 2022 Thursday, 27 October 2022 Thursday, 27 October 2022 Friday, 28 October 2022

8:30 am to 4:00 pm 6pm 6pm 6pm 6pm 10:30am 10:30am 8:30 am to 4:00 pm

Riverside Hotel, Brisbane Southport Sharks Maroochy Surf Club Brisbane Broncos Byron Bay Services Club Riverside Hotel, Brisbane Online Riverside Hotel, Brisbane

Open Open Open Open Open Open Open Open

ResortNews | August 2022

EVENTS & APPOINTMENTS

A record turnout for an ARAMA event!

Attendees at this year’s ARAMA TOP Awards witnessed a night of glamor, suspense, celebration, fine wine, great food witty speeches and a fantastic gathering of the best of the best in the Management & Letting Rights Industry.

All images supplied by ARAMA

EVENTS & APPOINTMENTS

ResortNews | August 2022

The annual “must-attend” for the industry is back! Resort and accommodation operators from around the country who make the trip each year know that “If you’re not visiting the NoVacancy Expo, you’re not giving your property it’s best chance of success”. Following a tumultuous few years for our sector, let’s take a quick recap of what NoVacancy is, why it’s important for you and your team to be there, and what you’ll get out of it!

The Education Program

The Networking Event of the Year

The What

NoVacancy is the big annual trade show for the hotel and accommodation industry. It’s held at the ICC Sydney Exhibition Centre each year, and it’s FREE to attend for industry professionals, including Resort News readers. Covering 14,000 square metres of space (the equivalent of two rugby league fields) it’s filled with more than 250 suppliers of everything essential, innovative, and new to our industry. From amenities, to cost effective technology, front and back of house software, to the hottest new sustainability and energy efficiency solutions and everything in between, it’s like a Westfield Shopping Centre where every shop is relevant and dedicated to helping you run a successful accommodation business.

ResortNews | August 2022

Also FREE, the event offers a comprehensive program of sessions dedicated to core areas of running a successful accommodation business across four theatres. An entire theatre dedicated to accommodation marketing, another to revenue and distribution, one for the latest technology, another on leadership challenges (like staffing) the growingly important sustainability summit, two days for interiors and refurbishment, and an entire day for smaller operators… All. Under. One. Roof. This year the organisers have made the commitment to a minimum 50 percent female gender balance to the speaker program, believed to be the first commitment of its type for an accommodation industry event in Australia.

When was the last time you were in a room with thousands of accommodation industry friends, peers, media, consultants, and suppliers? Attracting seven times more attendees than the next largest event in the country, every person you bump into shares your daily challenges, has ridden a similar business rollercoaster, and is attending for similar likely reasons!

Six months of meetings in two days? Many operators use NoVacancy as their annual supplier catchup and review forum. Rather than having suppliers pitch new solutions unwantedly through the year, calling and knocking on our doors, they use NoVacancy to schedule meetings, check out other supplier offerings and shop for upcoming purchase and CAPEX projects.

EVENTS & APPOINTMENTS

Pre-scheduled Meetings A few weeks before the exhibition you get access to an online meetings platform that lets you connect and book in with suppliers you want to meet. Looking for new mattresses? Tick the box during registration, log into the platform, and communicate with the suppliers you choose to lock in a time. The platform also enables you to connect with other attendees. Want to catch up with that industry friend you haven’t seen for six years? Strong chance they’re attending, look through the platform, schedule a catch up, and make the most of your time at NoVacancy!

The details: What: NoVacancy, Hotel & Accommodation Industry Expo When: Wednesday September 7 & Thursday September 8, 2022 Where: ICC Sydney Exhibition Centre, Darling Harbour (Level 4) Details: www.NoVacancy.com.au Cost: FREE for industry professionals (must preregister online. $70 onsite).

DEVELOPMENT NEWS Property sector staying positive in current environment But inflation, skill shortages, and disrupted supply chains are all having an impact.

Future work expectations also remained in positive territory but saw declines in every market aside from WA.

Macro-economic conditions have caused a decline in confidence in Australia’s property industry, yet property companies anticipate positive forward work and workforce projections off the back of solid pipelines, according to the latest ANZ/Property Council of Australia (PCA) survey.

The impacts of COVID also linger, with respondents in most states expecting the pandemic to further hinder business conditions. Additionally, the survey found the virus is expected to cause the greatest impact to the commercial office sector. Until this most recent survey, the hotels, tourism and leisure sector has consistently ranked highest in terms of COVID impacts.

This positive outlook comes off the back of a Property Council survey of than 750 members which found while the overall Confidence Index dropped 19 points nationally in the June quarter, it still remained in positive territory (118 index points) and slightly below the long term average (124 index points). A score of 100 in the Confidence Index is considered neutral.

“After experiencing a significant downturn at the onset of the pandemic it’s heartening that construction activity expectations in the hotel and retail sector continue their upward trend,” Mr Morrison said.

PCA Chief Executive, Ken Morrison said despite the decline in confidence caused by larger external factors such as inflation, skill shortages, and disrupted supply chains, the sector remained positive about its own work pipelines and staffing plans.

“Consistent with previous surveys, housing supply remains the most pressing critical issue for governments to solve at both the federal and state levels,” he added.

“What we’re seeing in this survey is a steep confidence dip in the broader outlook, yet specific firms remaining optimistic about their own business conditions,” Mr Morrison said.

ANZ Senior Economist, Felicity Emmett said property sentiment has taken a hit on the back of two rate rises already delivered by the Reserve Bank, and the expectation of a steep increase in interest rates over the coming year.

“There is no doubt that the lingering effects of COVID, inflationary pressures and interest rate implications, energy and staffing shortages as well as global geopolitical issues, have left a dent in confidence, and that comes as little surprise.” However, he said, when asked to reflect on their own business plans, respondents felt well positioned to withstand those headwinds which is why, combined with historic low unemployment figures, confidence overall is still in positive territory. Conducted between June 6-22, 2022, the survey showed

future staffing level expectations remained positive in every state and territory over the quarter, with Victoria (31) and Western Australia (30) returning the strongest figures. A score of 0 is considered neutral.

“The prospect of sharply higher interest rates, the turn in the global outlook, and talk of a US recession have all taken their toll on the economic outlook,” Ms Emmett said. “Firms are now the most downbeat about the economy than they’ve ever been outside of the worst of the pandemic in 2020 and are particularly negative about the availability of debt finance. “This pessimism seems overdone given how optimistic firms are about their own work schedule and staffing levels,” she said.

DEVELOPMENTS

ResortNews | August 2022

Hotel investment appetite remains strongest in Sydney, Gold Coast and Brisbane

Students are back! State of the art, multimillion dollar, student digs open

Despite a consensus that per-room revenue in some major cities could take three-to-five years to recover to pre-pandemic levels, nearly 90 percent of hotel-industry participants in Australia and New Zealand are looking to maintain or increase their exposure to the sector,

After two years of rolling lockdowns and construction restrictions, the $66 million Scape Lincoln College in Melbourne has officially opened its doors, right on cue for the start of Semester 2, 2022.

This positive outlook is one of the key takeaways from a CBRE Hotels survey of more than 70 hotel owners, investors, developers and industry consultants, covering topics ranging from revenue recovery to asset values. The survey shows the signs of recovery are clear in responses to the Market Conditions Survey, as tourism in both countries ramps up following two years of closed borders, even with recent volatility in financial markets. Asked whether their investment outlook for the sector had changed since early 2020, 50 percent of respondents indicated they would invest more, with a further 38 percent answering their investment level would remain the same. This is in spite of 62 percent of participants believing it will take three-to-five years for international arrival numbers in Australia and New Zealand to return to 2019 levels.

Scape Lincoln College

Most of those canvassed put the same timeframe on revenue per available room (RevPAR) returning to 2019 figures on an annualised basis in Auckland (69 percent of respondents), Melbourne (63 percent), Sydney (54 percent) and Perth (46 percent). There was more optimism around RevPAR bouncing back next year in Brisbane (51 percent of respondents) and Adelaide (49 percent). Corporate travel is another cause for encouragement, with more respondents expecting demand to return to 2019 levels next year (44 percent) than over a three-to-five-year period (39 percent). CBRE Hotels Regional Director, Valuation & Advisory Services, Troy Craig said the hotels sector is continuing to recover from the impact of closed borders. “While in-bound international traffic is still muted, and survey participants expect it will take three-to-five years to fully return to 2019 levels, recovery in the corporate sector is widely expected to provide a further boost to the current upward swing in 2023,” he said. According to CBRE Hotels Managing Director Capital Markets, Michael Simpson, the industry’s optimism is underlined by the fact nearly 90 percent of surveyed stakeholders are keen to maintain or increase their exposure to the sector, with only 12 percent looking to reduce their positions. Half of the respondents anticipate higher interest rates to flow into yields, but 58 percent do not believe inflation will result in stronger average daily rate (ADR) growth. Capital city hotel values are expected to rise over the next three years, with 55 percent anticipating growth of up to 10 percent and a further 11 percent tipping larger rises. Queensland and New South Wales are considered the mostattractive markets for hotel purchases or development, with just over three-quarters of respondents expressing an interest in those two states. That corresponded with Sydney, the Gold Coast and Brisbane ranking as the cities expected to perform most strongly over the coming year.

Students also have access to two levels of communal space as well as a commercial grade kitchen with an external terrace located on the 11th floor linked to an internal kitchen that allows the space to be opened or closed off to cater for all weather events. The rooftop will also feature Scape’s urban beehive program where bee colonies are maintained, and honey harvested for students to enjoy. Other amenities on offer include a rooftop area, cinema, large gym open 24/7, a music room kitted with electric guitars, keyboard, drumkit and recording equipment, and the latest culinary offering, Scape Eats, where delicious and healthy chef-cooked meals are included in the rent price. Scape CEO and President of the Student Accommodation Council of Australia, Anouk Darling, said her organisation was committed to helping re-establish Melbourne as a leading global education destination and will continue to invest in more developments in Melbourne. “The pandemic was devastating for the international educational industry, and we know how difficult it has been in Melbourne,” she said. “We are so excited for our students to experience our latest building, Scape Lincoln College. We have reimagined the student experience by giving students everything they need to love their student life in a new city, with new friends.“ Lord Mayor of Melbourne, Sally Capp said international students are a vital part of Melbourne’s economic, cultural and community landscape and the Victorian capital wants to be known as the world’s best city for international students.

“Two-thirds of our survey respondents see growth in asset prices over the medium term, in line with recovering visitation,” Mr Simpson said. “Queensland and New South Wales are clearly the markets attracting the most interest, with Sydney also expected to be 2023’s strongest-performing city.” ResortNews | August 2022

The 33rd building in Scape’s national portfolio, and the 11th building in Melbourne, the 12-storey building features over 460 beds spread across modern studios and share student apartments, each with bathrooms, kitchenettes, a full suite of appliances, study areas and smart storage solutions.

“And that starts with making sure they feel supported and welcomed during their time here,” she said. “Ambitious projects, such as Scape Lincoln College, that combine accommodation and lifestyle support, go a long way to making us an attractive option for those looking to complete their studies here in Australia.”

DEVELOPMENTS

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

MANAGEMENT RIGHTS Gold Coast Sandrift Apartments

Tim McConnell

Miami

Northcliffe Residences

Sailsearch Pty Ltd

Surfers Paradise

272 Hedges

Jamesimone P/L ATF J & S Hall

Mermaid Beach

Turbot House Hotel

MXL Investment P/L

Brisbane

Nero

Realty Services Group P/L

Newstead

Viva Apartments

Stacey Ireland

Fortitude Valley

Wynnum

Lutwyche

Brisbane

Lato Baia The Chaussy

G & T Property Managers P/L

CBMR

Sunshine Coast / Wide Bay / Fraser Coast Wolngarin Holiday Resort

Mark Jupp

Noosa Heads

RMS

Anchor Motel

Jan and Alan Bull

Noosaville

RMS

Maison

Noosa Rm P/L

Noosa Heads

Lisa Garnett & Chris Keogh

Manoora

CBMR

Gatehouse Hospitality P/L

Essendon

Far North Queensland Retreat on Pease

Victoria Linc Apartments

MOTELS & OTHER Queensland

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

1,000+ Listings For Sale

Nambour Lodge Motel

S. Wang

Nambour

Ammonite Inn Motel

Mike & Tracey Oliver

Richmond

Cairns Motor Inn

Jeffrey Tian & Fengling Wang

Cairns

1244 Anzac Avenue

D. Naidoo

Kallangur

Saltbush Retreat

Structers Pty Ltd - Leasehold

Longreach

Saltbush Retreat

Kelbrionoc P/L

Longreach

Thomas Lodge Motel

Elaine Yeung

Tocumwal

CRE

Bridges on Meninya

Sukhdeep Singh

Moama

CRE

Moama Central Motel

Gagan Brar

Moama

CRE

Bomaderry Motor Inn

Inntegrity P/L

Bomaderry

Maynestay Motel

S. Hurley & C. Drakley

Gunnedah

Town & Country Motor Inn

A. Gaidhu & M. Shah

Tamworth

Coorrabin Motor Inn

Billy Ahmed

Stawell

CRE

Coastal Motel

Rui Wang

Apollo Bay

CRE

Lightkeepers Inn Motel

Graeme Harris

Aireys Inlet

CRE

Blue Whale Motor Inn & Apartments

Tim Ye

Warrnambool

CRE

City Reach Motel

Gurinder Jit Singh

Wangaratta

CRE

Top 3W Pty Ltd

Manjimup

New South Wales

Victoria

Western Australia Kingsley Motel & Cabernet Restaurant

www.accomproperties.com.au 36

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

PROPERTY

ResortNews | August 2022

Cairns Motor Inn, Queensland

Maison Noosa, Queensland Back in Hasting Street Noosa, after a number of years in other buildings, Benn Wilson, along with Maurice (The French Bulldog) has taken over the reigns at one of Noosa’s premier beachfront properties. Maison Noosa. No stranger to the street, Benn had the management rights of On The Beach, another one of the regions coveted beachfront resorts, before taking over the rights to the stunning Rumba Resort in Caloundra. Other properties operated by Benn and his team included one in Byron Bay, Noosa Crest

Benn Wilson and Glenn Millar

and Noosa Heads Motel where he was the leaseholder. Resort Brokers Glenn Millar negotiated the sale and has worked with Benn to either secure or sell the other properties as above. This sale joins Tingirana and On The Beach in Hasting Street along with Noosa Quays and Noosa Pacific all sold by Glenn and Chenoa and the Resort Brokers team over the last 12 months.

46 years in the same motel must be a record! Cairns Motor Inn has been in the hands of Ross Luca and Magdalena Darveniza since they

purchased back in 1976 and now at the age of 87, Ross is retiring. With the guiding support from Tourism Brokers, Antonio Curulli, they have sold the Leasehold to Jeffrey Tian and Fengling Wang.

Home of Club Med listed for sale CBRE Hotels’ Wayne Bunz and Hayley Manvell have been exclusively appointed to market the asset, one of 24 Queensland islands offering resort approvals. On offer is a perpetual leasehold and four long-term leases over 136-hectares of land, comprising the closed beachfront resort, golf course and air strip. The island also features 637 hectares of national park area with seven private beaches. The listing follows a string of island sales, which have returned five major islands back into the hands of Australian investors over the past 12 months. These include: •

Dunk Island to Annie Cannon-Brookes, wife of Atlassian co-founder Mike Cannon-Brookes.

•

Lizard Island to Tattarang.

•

Long Island to Oscars Hotels.

•

Hook Island to Meridian Australia.

•

Elysian Retreat Long Island to Shayne Smyth, founder of Perle Ventures and travel insurance group Cover-More.

ResortNews | August 2022

Lindeman Island is located within the Whitsunday archipelago, approximately 15-kilometres from Hamilton Island. It can be accessed by boat – either via a 20-minute trip from Hamilton Island Airport or a 40-minute trip from Airlie Beach, with small charter aircraft and helicopters also able to land on the island’s airstrip. Mr Bunz said: “Lindeman Island provides investors with the opportunity to redevelop the asset in line with other nearby successful luxury resorts, such as qualia Hamilton Island, to capitalise on strong domestic tourism demand and a resurgence in the international inbound market.” Ms Manvell added, “The asset is essentially a blank canvas for an incoming investor, allowing them to follow the masterplan developed by the existing owner White Horse Group or undertake a smaller scale luxury redevelopment.” The masterplan incorporates a variety of four to six-star accommodation offerings, with 325 suites villas, suites and apartment, an ecotourism education centre, restaurants, bars, beach club, night club, conference centre, arrival centre, retail shops, sport and recreation centre and a staff village.

Lindeman Island

The International Expression of Interest campaign closes August 25, 2022 (unless sold prior).

Gold Coast builder and developer John Kearney secures development approval for sevenstorey Coolangatta apartment project Positioned in Kirra Hill on the edge of the Central Business District, the project aims to deliver high-quality, well-designed units to a beachside position within walking distance to both the white sand of Coolangatta’s world-famous beaches and the amenity of the southern Gold Coast district centre. Mr Kearney, also a Director of Greyburn Building Contractors (a

PROPERTY

PROPERTY NEWS

Providing investors an opportunity to create a new resort in the World Heritage listed Great Barrier Reef.

company with 35 years’ experience in south-east Queensland) will deliver the project in an area void of availability. He told Ocean Road Magazine Online: “Our team lives and breathes the Gold Coast so we want to position our projects in areas that inspire a great lifestyle,” said Mr Kearney. The spacious 40 two-bedroom apartments will be located just 350 metres from Coolangatta Beach, and all will offer twobedroom, two-bathroom designs in a range of floorplates “Our plans for the project are founded on providing well designed high, quality residences close to the beach with a focus on highly usable floor plans,” said Mr. Kearney.

Protect & Grow

For Sale

Picture Perfect in Runaway Bay Mixed holiday & permanent letting

$1,265,000

No set office hours Net profit $176,498 Contact Tony Ede tony@raas.com.au | 0401 563 151

Downtown Morningside Owner has committed elsewhere High rental demand

For Sale $100K PRICE REDUCTION

$1,049,000

Net profit $95,000 Contact Robert Collins robertc@raas.com.au | 0404 678 792

WE'RE GROWING OUR TEAM! Hiring in Brisbane, Gold Coast & Sunshine Coast for Management Rights sales, as well as investor and residential Sales Executives. FIND OUT MORE

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Caringbah NSW

ID: 7900

Merimbula NSW

Exclusive: Inner City Lifestyle

Premier Accommodation

Price: $2,000,000 Nett: $292,083

Price: $1,990,000 Nett: $318,479

Contact Michael Philpott 0433 137 927

Contact Tony Johnson 0433 335 679 tonyjohnson@mrsales.com.au

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ID: 7827

ID: 8263

Silverwater NSW

ID: 7903

Exclusive: Coastal Location

Exclusive: Growth Opportunity

Price: $910,000 Letting Accommodation

Price: $1,350,000 Nett: $229,388

Contact Rebecca Philpott 0437 863 400 rebeccaphilpott@mrsales.com.au

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

www.mrsales.com.au | 1300 928 556 | info@mrsales.com.au

Your Management Rights Investing and Financing Experts Management and Letting Rights Quarterly Pulse ‫آ‬٪eɍǳɬ٪‫׀׀‬

tƇǾƇǍƲǼƲǾɅ٪§ǛǍǕɅȷ٪ǌȉȯ٪¯ƇǳƲ٪‫ع‬٪tƇȯǯƲɅ٪¯ǾƇȬȷǕȉɅ٪‫ع‬٪eɍǳɬ٪‫׀׀־׀‬ Data provided by TheOnSiteManager.com.au STOCK LEVELS - The total dollar value of listings has dropped this quarter whilst the number of properties has increased January 2020

June 2020

October 2020

January 2021

March 2021

June 2021

Sept 2021

January 2022

April 2022

July 2022

$985m

$863m

$717m

$646m

$576m

$565m

$616m

$679m

$620m

$614m

716 Properties on the market

641 Properties on the market

518 Properties on the market

500 Properties on the market

463 Properties on the market

444 Properties on the market

436 Properties on the market

481 Properties on the market

424 Properties on the market

439 Properties on the market

The average dollar value of businesses on the market is lower again this month and the total balances remain depressed January 2020

June 2020

October 2020

January 2021

March 2021

June 2021

Sept 2021

January 2022

April 2022

July 2022

Holiday

335 Permanent

283 Permanent

239 Permanent

219 Permanent

187 Permanent

186 Permanent

216 Permanent

223 Permanent

201 Permanent

328

311

245

238

234

220

214

234

178

220

Multipliers have slightly increased this quarter BUSINESS MULTIPLIERS (Avg) OVER $1m Purchase Price 4.3x

4.25x

4.46x

4.35x

4.31x

4.27x

4.29x

4.39x

4.38x

4.42x

The days on the market have dropped this quarter DAYS LISTED January 2020

DAYS LISTED June 2020

DAYS LISTED October 2020

DAYS LISTED January 2021

DAYS LISTED March 2021

DAYS LISTED June 2021

DAYS LISTED Sept 2021

DAYS LISTED January 2022

DAYS LISTED April 2022

DAYS LISTED July 2022

105 Days

65 Days

58 Days

57 Days

45 Days

53 Days

67 Days

66 Days

57 Days

Market Movers ,SPMHE] TVSTIVXMIW EVI RSX ƼRHMRK XLIMV [E] SRXS XLI QEVOIX EX XLI QSQIRX ERH XLI QEVOIX VIQEMRW HITVIWWIH 8LMW QE] FI E VIWYPX SJ XLI I\GIPPIRX XVEHMRK GSRHMXMSRW XLEX EVI GYVVIRXP] FIIR I\TIVMIRGIH ERH TISTPI QEOMRK LE] [LMPI XLI WYR WLMRIW -R XLI TIVQERIRX QEVOIX WXSGO PIZIPW VIƼPPIH JVSQ XLI PEWX UYEVXIV ERH MX MW MRXIVIWXMRK XS RSXI XLEX XLIVI EVI GYVVIRXP] X[MGI EW QER] TIVQERIRX FYWMRIWWIW JSV WEPI EW LSPMHE] FYWMRIWWIW SR XLI +SPH 'SEWX 8LMW MW GPIEVP] E ZIV] YRYWYEP WMXYEXMSR ERH QE] FI XLI VIWYPX SJ XLI TVIWWYVI XLEX TIVQERIRX FYWMRIWWIW LEZI I\TIVMIRGIH MR XLIMV PIXXMRK TSSPW EGVSWW EPP QEVOIXW PIXXMRK TSSP GSZIVEKI MR TIVQERIRXW MW EX LMWXSVMGEP PS[W EX ;LIR VIWMHIRXMEP TVSTIVX] TVMGIW KVS[ VETMHP] PIXXMRK TSSPW EP[E]W JIIP XLI TVIWWYVI

¯ȬƲƇǯ‫ڑ‬ɦǛɅǕ‫ڑ‬ȉɍȯ‫ڑ‬ƲɫȬƲȯɅȷ‫ڑ‬ȉǾ‫ڑמכלڑסףףڑככמלڑ‬ȉȯ‫ڑ‬ɥǛȷǛɅ‫˶ڑ‬ǾƲɫǛƇ‫ى‬ƤȉǼ‫ى‬Ƈɍ

1300 886 103

ƼRI\ME GSQ EY

MRJS$ƼRI\ME GSQ EY

GSQTER] ƼRI\ME WIGYVMXMIW

*MRI\ME 7IGYVMXMIW 0MQMXIH %&2 LSPHW ER %YWXVEPMER *MRERGMEP 7IVZMGIW 0MGIRGI RYQFIV ERH TVSZMHIW KIRIVEP EHZMGI SRP]

Management and Letting Rights Quarterly Pulse ‫آ‬٪eɍǳɬ٪‫׀׀־׀‬

tƇǾƇǍƲǼƲǾɅ٪§ǛǍǕɅȷ٪ǌȉȯ٪¯ƇǳƲ٪‫ع‬٪tƇȯǯƲɅ٪ ǾƇǳɬȷǛȷ٪‫ع‬٪eɍǳɬ٪‫׀׀־׀‬ Letting Pool Coverage – proportion of the total units to those within the Pool Agreement Coverage – refers to % of total agreement term available upon purchase. Total stock ($)

Total stock

Days listed

Average price

Multipliers

Gross return %

Letting pool coverage

Agreement coverage

Resort / Holiday

$342,590,604

201

$1,704,431

4.19

27%

62%

78%

Permanent

$257,465,078

220

$1,170,296

4.69

27%

35%

80%

Off The Plan

$5,878,400

$1,175,680

3.74

27%

55%

100%

Caretaking

$7,217,160

$601,430

3.17

38%

17%

77%

Retirement

$860,000

3.00

33%

95%

92%

$614,011,242

439

$1,398,659

4.42

27%

49%

79%

Grand Total or Average

‫ و‬Ǿ٪ɅǕƲ٪tƇȯǯƲɅ٪ ǾƇǳɬȷǛȷ‫ى‬٪‫ع‬٪tƇȯǯƲɅ٪¤ɍǳȷƲ

OǛȷɅȉȯǛƤƇǳ٪ ȉǼȬƇȯǛȷȉǾ٪ȉǌ٪ɅǕƲ٪tƇȯǯƲɅ 8SXEP TVSTIVXMIW SR XLI QEVOIX LEW LMX ERSXLIV VIGSVH PS[

Comparison by Agreement Type - July 22

4.47

$1,419,592

716

700

641

650

7XERHEVH %KVIIQIRXW QYPXMTPMIVW LEZI HIGVIEWIH JVSQ ER EZIVEKI \ XS \ %GGSQQSHEXMSR %KVIIQIRXW LEZI MRGVIEWIH JVSQ ER EZIVEKI SJ \ XS \

600 529

550

84 in Properties for Sale (83 in Apr 2022)

400

77 Permanent (62 in Apr 2022) 2 Holiday (8 in Apr 2022)

Oct 2020

450 Jun 2020

$93m in Properties for Sale ($102m in Apr 2022)

501 463

Jan 2020

Brisbane

500

484 444

436

431

442

Jul 2022

Accommodation Agreements

750

Apr 2022

$1,325,832

Jan 2022

4.19

Sep 2021

Standard Agreements

NUMBER ON THE MARKET

Jun 2021

Avg Purchase Price

Mar 2021

BUSINESS MULTIPLIERS (avg)

Jan 2021

Purchase Price

65 Days on Average Listed (65 in Apr 2022) 4.77 Average Multiplier (4.58 in Apr 2022)

37 Days on Average Listed (64 in Apr 2022) 4.71 Average Multiplier (4.48 in Apr 2022)

1300 886 103

ƼRI\ME GSQ EY

MRJS$ƼRI\ME GSQ EY

GSQTER] ƼRI\ME WIGYVMXMIW

216

247 187 220

219

186 214

6IWSVX ,SPMHE]

201 220

234

187

4IVQERIRX

223

178 Jul 2022

60 Holiday (64 in Apr 2022)

234

Apr 2022

18 Permanent (17 in Apr 2022)

238

Jan 2022

85 in Properties for Sale (89 in Apr 2022)

244

Sep 2021

Sunshine ȉƇȷɅ

$153m in Properties for Sale ($162m in Apr 2022)

283

Jun 2021

4.77 Average Multiplier (4.91 in Apr 2022)

311 328

Mar 2021

41 Days on Average Listed (66 in Apr 2022)

335

Jan 2021

41 Holiday (53 in Apr 2022)

350 330 310 290 270 250 230 210 190 170 150

Oct 2020

82 Permanent (61 in Apr 2022)

Jun 2020

127 in Properties for Sale (117 in Apr 2022)

NO. OF BUILDINGS ON THE MARKET BY TYPE (Holiday & Permanent)

Jan 2020

Gȉǳƫ٪ ȉƇȷɅ

$169m in Properties for Sale ($157m in Apr 2022)

Hill Apartments, Currumbin Point

Perfect view from The Hill

By Grantlee Kieza, Industry Reporter

With 300 days of sunshine per annum, more than three million visitors every year, and golden beaches stretching for an unbroken 70 kilometres along rolling blue surf, it’s no wonder the Gold Coast is Australia’s playground. And Sue Mackenzie and Steve James’ Hill Apartments on Currumbin Point captures the best of the nation’s favourite holiday destination. The safe, calm waters of the Currumbin estuary are

Looking after a large complex is hard work, even for experienced real estate professionals

the beach and Currumbin’s famous Elephant Rock.”

ideal for swimming, fishing, and sailing and the property overlooks the Currumbin Alley, a magnet for serious surfboard riders and kite surfers.

Apartments for just over ten months after an 18-month search for the perfect property. “It’s certainly a beautiful spot,” Sue told Resort News.

Sue and Steve moved to the Hill Apartments from Brisbane after long careers in real estate.

There is also the pristine and patrolled Currumbin Beach just a short stroll from the 72-unit complex.

“We’re overlooking Currumbin Creek and the Currumbin Alley as the locals call it.

“We have 72 units and there is a mix of permanent and holiday rentals here,” Sue said.

“It’s a great, safe area for swimming, especially for children and it’s not far from

“We have permanent tenants who love living here and there are holiday apartments, as

Sue and husband Steve have been running The Hill

PROFILE

ResortNews | August 2022

well as owner-occupiers and lock ups. All together we have 26 units in the letting pool.” The move to The Hill Apartments fulfills one of Sue’s long-time wishes. “I had been wanting to get into management rights since I was in my 20s, but with two small children and not having quite enough money, this was a huge hurdle that prevented our dream,” she said. “I had been looking at management rights on and off since then, but I ran other businesses in that time. “I spent at least 20 years just waiting for an opportunity to become involved in management rights. Now is the perfect time, my small children are all grown up with children of their own. “Steve and I looked at properties for 18 months before we bought into this one.” Sue was heavily involved in real estate (both residential and commercial) for 12 years, and Steve for seven.

On the right, Sue Mackenzie and husband Steve James with friends

Their search for the perfect property began at Caboolture, north of Brisbane. “We were looking at something by the sea as a lifestyle. We looked at one property at Cleveland and some in Brisbane, but nothing really caught our eye,” Sue said. “So, we ventured down the coast. We looked at a couple of properties at Carrara and

Mermaid Waters. But then this came up and we were immediately interested in the fact that Currumbin is not as busy as the northern part of the Gold Coast. “It has much more of a rural flavour than most other apartments and I think that’s a big drawcard for a lot of families coming to stay.” “It’s a quieter, more relaxing

place than other parts of the coast. People who come to The Hill Apartments love the alley, and the safe swimming. Just over the other side of the hill is Tugun where there are a lot of attractions.” Sue and Steve compiled a checklist of features they wanted in their ideal property and The Hill Apartments ticked all the boxes.

ResortNews | August 2022

PROFILE

“Generating a good income was important for us of course, and so was the size of the rent roll. We wanted a rent roll that we could manage ourselves for the initial period,” Sue said. “The condition of the complex was also crucial, we wanted to ensure the property was well maintained. And we wanted it to have a committee without conflict - this was vital,” she said. “It was useful to have a ‘real estate eye’ and with my experience of renovating many properties in my spare time I could assess the state of the properties during inspections and ask the right questions

Maintaining properties for the owners is a fulltime job, and every day there is something diﬀerent to do

about maintenance. One of the things that we really liked about The Hill Apartments was that it has a madam chairman on the committee who has been the chairperson for some years, this was a drawcard for us. Looking after a large complex is hard

work, even for experienced real estate professionals. It can be very demanding,” Sue said. “A management rights business is certainly a 24-hours, seven day a week job. Anyone going into the industry really needs to

PROFILE

be aware of that. Maintaining properties for the owners is a fulltime job, and every day there is something different to do.” So, what advice would Sue give to someone wanting to buy into management rights?

ResortNews | August 2022

“You need to have a good plan in place,” Sue told us. “Because when you initially come into a property you must have a good understanding of how the business works. You should also have a very good understanding of real estate, either through a Resident Letting Agent course, whether you’re a salesperson or a licensee, because you’ve got to be able to call upon that knowledge very quickly when you walk into management rights. “And I don’t think that’s dwelt on enough with a lot of first timers coming into the management rights industry. I don’t think that a lot of newcomers really understand the complexities of what’s involved. “I found there were a lot of young couples looking at management rights when we were inspecting properties, but I don’t think you should go into this kind of business without some life experience because you need that

experience to handle all the questions from people and all the situations that arrive. “Skills in diplomacy are essential too, because you need to handle all the different problems that arrive and handle them in a professional manner.” Sue said she had let her real estate salesperson’s certificate lapse and had to go back to class to redo it. “Steve and I both had our Resident Letting Agents qualification and then I went and got my salesperson certificate, and I’m a full licensee now,” she said. Though management rights can involve a large amount of work, there are many benefits to running a complex, especially in a glorious location such as Currumbin. “We certainly don’t have to travel far from work or worry about peak hour traffic,” Sue said. “And this is a really beautiful part of Australia.”

A ResortBrokers beachside MLR business success story Management rights expert and ResortBrokers sales professional, Todd Warner introduced Sue and Steve to The Hill Apartments and assisted with their MLR journey. From his much-loved home on the southern Gold Coast, the devoted family man and self-confessed “sports tragic”, Todd spoke to Resort News about The Hill Apartments sale. He said: “I met Sue Mackenzie and her partner Steve James in late 2020, when they first enquired on a management rights business, I had listed on the Gold Coast. Sue was an experienced and well researched buyer, having held a real estate license previously and Steve was a small business owner also running a successful cement truck business in Brisbane. “We started on their journey into the management rights industry by exploring a few listings and opportunities that were both on and off market, to which none of

them turned out to be the right property for Sue and Steve. They also were very keen to learn as much as possible about the industry during their search, so they attended a ‘Management Rights Made Easy’ seminar hosted by ResortBrokers on the Gold Coast.” “Then we came across The Hill Apartments at Currumbin, which certainly ticked many boxes of their key criteria. The one thing that probably was a bit left field, was the mixed letting of short- and long-term units, but it certainly had not have seemed like Sue and Steve have adapted well and settled into their great little beachside business when I last stopped by.” In the five years the solutions focused and driven, Todd has been with ResortBrokers he has delivered some outstanding results with sales totalling more $110 million, including the first short-term holiday sales post COVID. His most recent achievement was being awarded as the Management Rights Broker of the Year 2021/2022 at the ResortBrokers national conference.

Todd Warner

ResortNews | August 2022

PROFILE

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Articles inside

Hill Apartments, Currumbin Point: Perfect view from The Hill

Development News

Events

Domestic visitors fl ock to QLD to compete in paradise

Tourism Report

Building Relationships

Good Governance

Soft ware Solutions

Thinking MR

Motel Market

BCCM Report

By All Accounts

Special Report: Rising short stay rates won’t solve housing problems

News: STRA exclusion register NSW updated

SCA Report

Person of Interest – Sharon Flood: Flood of legal ideas for management rights

Legal Ease

ARAMA Report