Resort News - April 2023

REPORTERS Grantlee Kieza

Richard McGill

The legal stuff...

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KEY Commercially funded supplier profi le or supplier case study

Supplier information or content

Suppliers share their views in one-o topical pieces

CONTRIBUTING THIS ISSUE... Andrew Morgan, Col Myers, Commissioner for Body Corporate and Community, Frank Higginson, Kelley Rigby, Laura Bos, Lel Parnis, Lynda Kypriadakis, Mike Phipps, Sylvia Johnston and Trevor Rawnsley

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!

Want to do better? Try listening twice as much as you talk

According to Epictetus, the Greek philosopher who lived nearly 2000 years ago, “we have two ears and one mouth so that we can listen twice as much as we speak.” I’m no philosopher but I’d like to add, we also have two eyes – to look and learn.

If he were alive today, I bet both of old mate’s (Epictetus’s) ears would be ringing, from the lack of active listening and authentic communication that now exists. Our lives are saturated with very public forms of ‘shouty’ communication. So many, so keen to share their voice on social media, to document even the most mundane events. Businesses showcase wares with no real thought to what their customer wants.

Epictetus understood the importance of listening and maybe his message has been lost over time but the lesson to ‘listen’ is one you’re never too old to learn. I’m happy to keep honing my listening skills because every day should be a school day. And even in a career that requires a curious mind, having an avid interest in people, questioning, and

observing, I still remind myself to ‘listen’ closer – to the team, to customers, and especially to the readers of our publications. When I ‘listen’ to readers, I’m more likely to publish an engaging article and if I ‘listen’ to both the good and bad feedback I can respond with something even more interesting. Hopefully, this leads to more readers, improved SEO results, more subscribers, happy customers, happy publisher, and an improved bottom line. In other words, remove ego, the temptation to shout out what you think is important, and instead actively listen to your customer. In management rights isn’t it better to ‘listen’ to guests, unit owners, residents, the committee and give them what they want or even exceed their expectations and improve your bottom line?

On that note, I’ve been listening to common concerns in our

industry and aim to tackle them. Therefore, this month (on page six) Grantlee looks at the difficulties that can occur around the transfer process from one management rights owner to another. And, on page eight he investigates the implications of the proposed changes to Queensland body corporate legislation, designed to make it easier to redevelop units. Also, in this edition, we put one of our own columnists, Frank Higginson who runs the law firm Hynes Legal in the hot seat. You can read his interview on page 20. Finally, enjoy our profile of the new managers of Pandanus Palms Holiday Resort at Point Lookout on North Stradbroke Island. Get to know Wayne and Gayle Broad on page 42.

Hope you had a great Easter holiday season! Enjoy this edition of Resort News

Mandy Clarke, Editor editor@accomnews.com.au

Preparation the key for easy transfer

These days the transfer process from one management rights owner to the next can be a lot more difficult.

Not only has the price of MLR businesses increased significantly, but potential buyers can also face reluctant bodies corporate who reject them or make their application to take over as resident managers decidedly unwelcome.

Leading property lawyer Col Myers, from Small Myers Hughes, says it rarely happens that someone with money to buy an MLR business will be knocked back outright by a body corporate. “But what can happen occasionally,” he says, “if you’ve got an aggressive committee that hasn’t got on with the previous manager, they may attempt to ruin the sale as a ‘square up’.

“So, they become roughish at the interview to scare the buyer off, and then the buyer starts looking at ways to get out of the deal because they don’t want to walk into a cesspool.

“There is a case going on through the courts in Melbourne for economic loss at the moment, where a body corporate knocked back an incoming buyer. The economic loss could be quite significant too.”

Queensland Government regulations state when the body corporate committee are deciding the approval of a transfer they should consider:

• the character of the transferee;

• the financial standing of the transferee;

• the terms of the transfer;

• the competence, qualifications and experience of the transferee; and

• any training the transferee has completed or is likely to complete.

After being given the information necessary to decide on a transfer, the committee has 30 days to decide. The time constraint prevents the transfer process from being deliberately dragged out, threatening the sale of the MLR business. The committee cannot unreasonably withhold approval and the seller of management rights must ensure the committee has sufficient information to decide.

Mr Myers said preparing properly for the interview process with a body corporate was the key for someone buying into a management rights business.

“Nearly all bodies corporate now engage body corporate lawyers to deal with the assignment,

and those lawyers are detailed in the information they are seeking from prospective managers,” Mr Myers said.

“They produce a very detailed proforma letter setting out all the things they want, which obviously includes a police check, and information about the financial standing of the buyer.

“A lot of the buyers are using ‘$2 companies’ that have been set up for that purpose, so the company has no financial standing. But in most cases by the time you get to the assignment stage the prospective buyer already has finance approved by a bank or other lending institution.

“Management rights lawyers use that as evidence of financial standing because if a bank is prepared to lend someone what could be anything from $500,000

to $5 million then that is evidence of financial standing. There was a case some while ago that confirmed that arrangement.

“We have some bodies corporate where, because the management rights are being bought by a $2 company, they want to probe the financial standing of the individuals (asset and liability statements) where they really want to dig deep.

“But eight out of 10 transactions involve finance so these days a letter from the bank or financial institution should be sufficient evidence of financial standing - as stated by an adjudicator in a 2016 case on this point.”

Mr Myers said managers had to go into the interview process with a body corporate with their references and police check ready.

“The police check can take up to two weeks, so it’s important to get that done early once the prospective buyer looks like they’re definitely going ahead with the deal.”

He added that many bodies corporate now insist potential managers have training from organisations such as ARAMA before the transfer of caretaking duties is approved.

Not long ago it seemed that if you had a bank cheque and a heartbeat you could become a resident manager with few impediments.

“If you’ve completed the ARAMA training it is a big tick from bodies corporate,” he said.

ARAMA CEO Trevor Rawnsley said his association has created a checklist of best practice industry guidelines to follow ahead of the “assignment interview” with bodies corporate. It covers four broad subjects that a body corporate should reasonably make inquiries about: financial capacity, education in the MLR industry, experience, and character. As an example, the four questions under “character” are:

1. Have you submitted two character references to the body corporate and who are they from?

2. Have you ever been convicted of charges involving fraud, dishonesty, bodily harm or assault?

3. Have you been convicted of any criminal offence? Please elaborate.

4. Have you ever been the subject of a domestic violence order? If so, please state the timing of such order.

“The checklist will help someone wanting to buy management rights, to prepare for the assignment meeting,” Mr Rawnsley said.

“There are 46 points covered. Most bodies corporate might require four or five things, some might require a lot more. We took this checklist to lots of body corporate managers, many committees, and lawyers who do these transactions.

“The more feedback you ask for, the more detail you get and that’s how we came up with 46 points.”

Mr Rawnsley said by law a

body corporate could not reasonably withhold approval for a potential manager.

“The body corporate being the owners of the business that is being maintained or serviced has the right to make some judgement of the incoming service provider to make sure that they have appropriate experience or money to do the job,” he said.

“So, it is not just a rubber stamp.

“But the body corporate can’t be discriminatory. They can’t say they don’t like you because you’re a redhead or for any other

reason but they can always say ‘you don’t have enough experience and we’re not going to approve this’. We say that everyone must start somewhere and for a potential buyer to be able to pull together, on average, $1.5 million for an MLR business means they usually have been quite successful in their previous careers.”

Mr Rawnsley said the ARAMA checklist was created in response to the “outrageous” questions being asked by some bodies corporate that were “clearly biased”.

“There were examples of body corporate members wanting the last 10 years of tax returns for potential buyers, when that buyer had already passed all the checks needed for bank finance.”

He said preparation for meeting the body corporate by going through ARAMA’s checklist went a long way to impressing a committee at the “assignment interview”. “Preparing properly shows the body corporate that you are someone who’s organised and ready to take over the management of a property,” Mr Rawnsley said.

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Legal minefield looms over scheme termination changes

By Grantlee Kieza, Industry Reporter

Proposed changes to Queensland body corporate legislation have been designed to make it easier for units to be redeveloped. But some say they could open the way for forced evictions and endless re-runs of courtroom scenes of the kind that made the Australian comedy “The Castle” such an enduring hit.

Queensland’s Attorney-General Shannon Fentiman says the changes will allow for the termination of a community titles scheme with the support of just 75 percent of lot owners.

The Palaszczuk Government announced the proposed draft legislation following the October 2022 Housing Summit and say the new rules will make it easier to sell and redevelop ageing or rundown community title schemes in Queensland. But a legal minefield might be in the path of implementing the new legislation.

ARAMA CEO Trevor Rawnsley told Resort News that his association had consulted extensively with government on scheme termination.

ARAMA agrees with the government that the termination of a scheme should be possible with less than 100 percent approval from lot owners, to prevent one stubborn owner from holding out on the others in the hope of extracting a huge windfall, but Mr Rawnsley says the 75 percent figure is way too low.

“At the moment the law requires a resolution without dissent,” he said.

“If you have one person in the building who votes ‘no’ to the termination, nothing can happen.

“But we do not agree that it should be only 75 percent of the vote to terminate a scheme. It should be higher. At 75 percent it means that in a scheme with 100 lots, 25 of those people are voting ‘no’ for their home to be destroyed. We think that is setting a dangerous precedent.

“It’s 75 percent in New South

Wales, too, but there are lots of other hurdles there that people need to jump over before you can terminate that scheme, and there hasn’t been a successful scheme termination there when someone has appealed.”

Mr Rawnsley said Queensland body corporate managers would be happy with the 75 percent figure because “they will make a lot of money administrating the scheme termination and the new development.”

“Developers will make a lot of money too,” he said, “but in the rush to create new developments, they are going to displace up to 25 percent of homeowners who don’t want their home destroyed.

“It’s all very well for supporters of this change to say it is going to help the housing crisis, but it’s not. The reality is they’re going to terminate those old unit blocks that are currently available for rent to low income earners. They’re going to replace them with luxury apartments. I haven’t seen any high-rises come out on the Gold Coast in the last few years that aren’t

multimillion dollar apartments. Developers need to make a profit and we’re all for that but if anybody suggests this is going to be a solution to the housing crisis it’s not.”

Mr Rawnsley said there were also other important considerations when it came to scheme termination before any new legislation was passed.

“If there are existing long-term service contracts in place – such as lift maintenance they should be factored into the cost of the rebuild and honoured,” he said.

“Then there is the resident manager who is sitting on a 25-year agreement. Someone comes along and says, ‘well we only need 75 percent of a vote to terminate your agreement’. That business must retain its value and while the little old lady can appeal and say, ‘I don’t want you to destroy my home and I’m not going’, the caretaking service provider should also be able to say, ‘this is my livelihood, you should have a good reason for wanting to terminate and there should be compensation from the developer’. A valuer should

come in and value the business and there should be a payout to the value of that business for the resident manager.”

Laura Bos, the General Manager of the Strata Community Association (Qld), applauded the draft legislation.

“I want to commend the Queensland Government on the suite of reforms they have released over the past six months,” Ms Bos said.

“Two tranches of positive body corporate law changes in six months are more than has been done in the past 25 years.”

“These changes are all extremely positive and a great start. My message to the government today is simple, this is a great start, but let’s work together to finish the job.

“Big picture reforms including changes to management rights, regulation of body corporate and finishing the job by reforming the dispute resolution framework are things our communities are crying out for.”

Currently, a community titles scheme may only be terminated if no owner opposes the termination of the scheme, or if the District Court is satisfied it is just and equitable to terminate it.

The proposed changes will allow for the termination of a scheme with the support of 75 percent of lot owners, where the body corporate has agreed it is more financially viable for lot owners to terminate rather than maintain or remediate the scheme.

In all other situations, termination of a scheme will still require that no owners dissent to the termination in order for it to be approved.

Consultation on the draft legislation will occur this year.

Attorney-General Fentiman said: “I’ve heard many stories of rundown units, townhouses, or complexes with unsustainable ongoing maintenance costs where owners want to terminate, but a single owner blocks this from occurring.

“The government recognises that some owners may not wish to sell their unit or move to a new home so termination arrangements must balance the rights and interests of all lot owners in a scheme.

“The new process will include safeguards to protect owners in the minority who do not

support termination. If the body corporate approves a termination plan, a dissenting owner will be able to make an application to the District Court, which would consider a set of just and equitable factors in deciding whether the termination should proceed.”

Leading property lawyer Frank Higginson, from Hynes Legal, said “mechanically”, the new legislation was “going to be problematic.”

“New South Wales has had the 75 percent rule for a while, but it has come unstuck because the mechanics of dealing with a dissenting owner don’t really work for someone who is looking to buy the site - because of court proceedings,” he said.

“In New South Wales they can terminate a scheme with a majority vote without any reason whereas up in Queensland they’re saying there must be an economic reason to do it (a write-off of some description) when the units cost more to repair than replace.

“Or will it be just a case of ‘we’ve got four units on a 2000m square beachfront site, and the highest and best use is absolutely the sale of the site as a whole rather than the units individually’. So that’s the sort of issues they’re going to have to work through.”

Mr Higginson said an issue in New South Wales “that has caused conniptions” is that if a resident is one of the 25 percent that doesn’t want to go, they can

file a proceeding and the cost of that legal challenge must be paid for by the body corporate.

“There’s no disincentive not to go to court,” Mr Higginson said. “If you’re running your own race and potentially having to wear the cost yourself you think twice about filing something, but when there’s no cost downside there’s no stopping you. When these changes to legislation first popped up 20 years ago, they were deemed un-Australian. It was ‘The Castle’ (the vibe all over again) kicking someone out of their house who doesn’t want to go.

“So, it’s been spoken about for more than 20 years and finally we have a government who say they are going to do something, but the mechanics of that something are going to be incredibly interesting.

“They probably won’t just produce draft legislation; they’ll produce it and send it to the Community Titles Legislation Working Group of which ARAMA is a member and I’m sitting there for ARAMA.

“Even if it appeared as legislation, it’s still going to be 12 months to two years before we get any real guidance about how it’s going to work.

“From an ARAMA perspective, one of the big questions is going to be for management rights owners - what happens to me? And we’ve proposed and built into previous legislation that the management rights has to be

bought out at market value.”

Mike Murray, the President, of the Unit Owners Association of Queensland, told Resort News, that his association “objected to in the strongest possible terms” to the new proposal.

UOAQ Committee representatives have been attending the Community Titles Legislation Working Group for just under two years and say they are the only stakeholder representing the owners of the subject properties affected. He said the considerations of owners or more than 600,000 units each with median values exceeding $500,000, “the owners of $300 billion of Queensland property”, were not involved in the change.

“Despite unit owners having been consulted via the Community Titles Legislation Working Group for the preceding two years on this very topic, their voice appears disregarded and ignored,” Mr Murray said.

“Unit owners were not even invited to participate in the October 2022 Housing Summit where such a reform decision was seemingly made.

“More likely, the multi-billiondollar property development industry led by Urban Development Industry of Australia (UDIA) sees a commercial opportunity to have the body corporate law changed to favour its agenda.”

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Beware of your ‘Drop Dead’ dates

The courts have held, on numerous occasions, that option exercise dates are “drop dead” dates. In other words, if you miss the exercise period (even by a single day) you lose your right to extend the Agreements. If you have more than one option and miss the exercise date under the first option, the Agreements come to an end at the conclusion of the then current term and all subsequent option periods are lost.

By Col

Types of Options

There are three types of options that we regularly see in Agreements:

prior to expiry of the current term. Window Options are a bit trickier and you must have a fail-safe reminder system to ensure that you exercise the option within the window allowed under your Agreements. I have recently seen a situation where the option was exercised a week earlier the designated commencement date of the relevant Window Period, and consequently, the option was considered not to have been properly exercised and the option (and later options) were lost.

to holidays, sickness or other commitments. Also ensure your reminders come up well beforehand, so you have plenty of time to exercise your option.

Whichever type of option you have in your Agreements, it is important that you comply strictly with the wording contained in the Agreements in relation to the form of notice and its delivery. Your solicitor can assist you to exercise the option validly, if you are in any doubt of what is required.

In recent years, I have seen clients having to walk away from what were good management rights businesses with next to nothing, as a consequence of them missing an option exercise date (by two days in one instance). It was very distressing!

• Open Options: where you must exercise the option by written notice to the Owners Corporation at least three months prior to expiry of the current term. If you have an Open Option, it is a good idea to exercise the option now (even though it might be a year or two years before the three-month period expires) rather than risk forgetting later.

• Window Options: Where you must exercise the option by written notice to the Owners Corporation not more than six months and not less than three months

• Automatic Exercising Options: Under this form of option, the Agreements are deemed to be automatically extended for the relevant option period, unless you advise the Owners Corporation in writing of your intention not to extend the Agreements. These are foolproof!

Bullet-proofing yourself: Diarise your Option Exercise Dates

Diarise your “drop dead” dates, but always have a backup plan. You may not be sitting in the office at your computer when the date comes up, due

It is also advisable to document the extension of the term of your Agreements by way of a Deed of Extension, so that down the track there cannot be any dispute that an option was validly exercised. This is particularly important when the time comes to sell your management rights business.

Check your Agreements now!

Take a moment now to look at your Agreements and check what kind of options you have and when the last date is for exercising the option. Then put in place a system to ensure you do not miss this “drop dead” date. Disclaimer: This article is provided for information purposes only and should not be regarded as legal advice.

It is critical that you exercise any option in your Caretaking and Letting Agreements, strictly in accordance with the terms of the Agreements.

Myers, Small Myers Hughes

Miss the exercise period (even by a single day) you lose your right to extend

THE TRUSTED PMS SOLUTION FOR YOUR BUSINESS MAKE THE SWITCH

How to protect, defend and grow your letting pool

Outside agents poaching business from onsite managers has always been an issue in the MLR Industry, but the housing crisis has created even more dangers.

Because of rises in property values, more and more unit owners are selling to owner occupiers, which immediately takes that property out of a manager’s lett ing pool.

By Trevor Rawnsley, CEO, ARAMA

Investors are looking at the bottom line with much sharper eyes these days and they are putt ing pressure on many managers to increase weekly rents, sometimes by hundreds of dollars. And if the manager doesn’t get that rent increase, some investors are taking their business elsewhere.

The resident manager is now the ham in the sandwich between the landlord wanting more money and the tenant having a tough time paying.

With the housing crisis in Australia right now, it has never been more important for resident managers to protect, defend and grow their lett ing pools.

Vacancy rates across the country are at all-time lows and there is more agitation than ever from outside real estate agents trying to take advantage of the situation.

We are also seeing many owners, particularly in popular inner-city Brisbane areas, deciding that they can make more money by converting their properties from long-term accommodation to short-term rentals and using Airbnb.

In recent weeks I took an ARAMA roadshow around Queensland and Northern NSW, speaking to managers on the subject, “Protecting, Growing and Defending Your Lett ing Pool”.

There were diff erent demographics at each place. Byron Bay is very much short stay, Airlie Beach is predominantly short stay, the Gold Coast is 50/50, Brisbane is 90 percent long-stay and the Sunshine Coast is 95 percent short stay. But the goal remains the same, protecting lett ing pools and acquiring the knowledge to make them grow so that a manager’s business can expand.

Presentations were made by two of the best minds in the

MLR industry, Kelley Rigby, who runs a business called Lett s Rebuild, and Nick Buick, the CEO of The Onsite Manager. Kelley spoke to audiences, addressing the problem from the angle of having good relationships and communicating eff ectively with owners and tenants. Nick approached the topic from a systematised basis. Both of those approaches are required. Real estate agents have business development managers

There’s an old marketing adage that says it costs fi ve times more to obtain a new customer than it does to keep an existing one. It’s crucial to remember that maxim in the Management and Letting Rights industry (MLR).

ARAMA Report Roadshow on the Sunshine Coast

It’s much easier to keep an existing client than trying to win them back

to build their rent roll, and Kelley’s business specialises in business development for resident managers. She and her team build a manager’s rent roll through marketing via phone calls, video and text messages and emails. It’s a service that helps managers who don’t know how to promote themselves or don’t have the time to build that internal lett ing pool. It beggars belief that some investors still bypass onsite managers, a person on the doorstep of their property

and who knows the building back to front, in favour of an outside real estate agent who has no real knowledge of the community at that complex and more than likely has to put the address of the property into the GPS to find out where it is.

ARAMA has always encouraged resident managers to build the best possible relationships they can with their investors and tenants so that the resident manager is always the preferred choice when it comes to managing the investment.

Kelley is trying to make managers fully aware of what they should be doing to retain their clients. Picking up the phone to say hello is not hard but it can go a long way to creating and maintaining relationships.

Kelley discussed with audiences how to connect with owners through newsletters, phone calls, emails, and text messages, and how taking a personal interest in them is so important, like gett ing to know about their kids, dogs, football teams…

It doesn’t cost anything to send a text message that will take you 30 seconds on a Saturday night when Unit 41’s team is playing and to wish them good luck. But it may help you keep them as clients.

Kelley continues to ‘fan the flame’ for managers who sometimes forget that buying a management rights business doesn’t guarantee that investors and owners will stay with you. You must put in the eff ort to make sure they do. P14

Damian Quinn Isabella Mansell

ARAMA Report Roadshow in Brisbane

Some of Kelley’s tips are:

• Do your job well. That’s the most important thing for a manager to impress an investor.

• Create a reminder to ring your investor every three, six and 12 months to simply say, “How are you doing?”

• Communicate everything you do that goes above and beyond your agreement.

• Know your clients’ expectations and what is important to them. For instance: reporting, regular communication, and sending a survey.

• Obtain your full Real Estate Licence and sell units within your complex.

• Consider hosting community events such as quarterly barbeques or Christmas get-togethers.

P13

Nick Buick, meanwhile, spoke to audiences about strategic management and making sure that managers are doing everything they can to galvanise the lett ing pool against outside agents. He said managers should work as if someone was plott ing 24/7 to take everything they have because they are.

He explained how outside agents will prospect a building and why

it’s so important for managers to put roadblocks in front of them.

Outside real estate will often put together a whole run sheet of a building, identifying every owner. They then att ack the lett ing pool by contacting those owners and planting seeds of fear, uncertainty and doubt in their minds that the manager is not doing the best possible job, and that the outside real estate agent will make them more money.

So a manager has to make sure that it’s hard for outside agents to identify the investment properties inside a building and hard for them to know the performance history of the rentals in that building.

Resident managers must always sell themselves to the investors in their scheme.

Nick knows of one resident manager who had three sales she was organising fall through. The owners then went to an outside agent who not only took the properties out of the manager’s lett ing pool but eventually sold the properties for much less than the off ers the resident manager had taken to the owners. In one case it was for $200,000 less. Managers need to educate vendors that because they are onsite, they are the best placed person to let or sell a property, far better than an agent who has no in-depth knowledge or lived experience about the building.

Lett s Rebuild and The Onsite Manager are both key components in protecting, defending, and growing a manager’s lett ing pool.

We also encourage all managers to become involved in sales, to get a full real estate licence so they have the lawful ability to sell real estate.

A lot of our members don’t realise that they are already real estate agents even though some of them only have a restricted lett ing agent licence. Some agents still don’t want to sell in their building but if a manager is involved in the sale of a unit they can have at least some kind of influence over where that lett ing will end up, and obviously, they want it to end up in their lett ing pool.

A manager with a full real estate licence can also oversee the lett ing of properties outside their scheme and grow their lett ing pool across their suburb, down the street, or in the building across the road, provided they are not already in a managed building with a resident manager in place.

Clever managers are thinking outside their scheme now, and they are creating a portfolio of lett ings apart from those properties within their own building. That is certainly a way of building and preserving a lett ing pool.

And remember that old adage. It’s much easier to keep an existing client than trying to win them back after they’ve been poached.

Doing a good job and building good relationships are the keys for successful managers to protect, defend and grow their lett ing pools.

ARAMA Report Roadshow on the Gold Coast

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Reform step one announced

By Laura Bos, General Manager, SCA (QLD)

The Body Corporate and Community Management Act 1997 was one of the world’s most cuttingedge pieces of legislation. Drafted by some of Australia’s best legal minds, it was an exciting time for the strata sector and at the time, was seen as a piece of forwardthinking legislation.

After over 25 years, still enshrined in the legislation are the Primary and Secondary Objects of the Act that speak to the intent of the drafters. These are:

1. Primary object

The primary object of this Act is to provide for flexible and contemporary communally based arrangements for the use of freehold land, having regard to the secondary objects.

2. Secondary objects

The following are the secondary objects of this Act:

• to balance the rights of individuals with the responsibility for self-management as an inherent aspect of community titles schemes;

• to promote economic development by establishing sufficiently flexible administrative and management arrangements for community titles schemes;

• to encourage the tourism potential of community titles schemes without diminishing the rights and responsibilities of owners, and intending buyers, of lots in community titles schemes;

• to provide a legislative framework accommodating future trends in community titling;

• to ensure that bodies corporate for community titles schemes have control of the common property and body corporate assets they are responsible for managing on behalf of owners of lots included in the schemes;

• to provide bodies corporate with the flexibility they need in their operations and dealings to accommodate changing circumstances within community titles schemes;

• to provide an appropriate level of consumer protection for owners and intending buyers of lots included in community titles schemes;

• to ensure accessibility to information about community titles scheme issues;

• to provide an efficient and eff ective dispute resolution process. Has the intent stood the test of time?

Twenty-fi ve years on, and through no fault of last century’s drafters, we probably aren’t achieving all these objects right now. Technology has changed, society has changed and the laws governing strata haven’t changed.

The increase in the number of disputes suggests that it hasn’t (not that this is an uncommon theme across many legislative frameworks as

policy makers struggle to keep pace with the rate of change).

But now the laws governing strata will change

In a recent press release, the Queensland Attorney General, Shannon Fentiman noted there would be changes to scheme termination, significantly limiting in legislation the ability of a body corporate to ban pets, a ban on smoking in outdoor areas and a more permissible att itude to towing dangerously parked cars.

These are all positive steps and go a long way to achieving some of the secondary objects, particularly the first of them which is concerned with balancing rights.

It was high time that the laws governing strata reflected more closely societal attitudes

Balancing individual rights and community rights - pets, smoking and scheme termination

The balance between individual and community rights is one we grapple with as a society every single day, and one that is felt acutely in strata largely because of the proximity of owners and occupiers. It is a perfect storm of cultural, social and economic clash points. And, as these clash points grate and att itudes and practices change over time in regards to what is permissible or acceptable, the law inevitably fails to keep up. By way of example, the daily smoking rate has halved since 1997. Smoking is banned in all manner of public places now and increasingly is seen as a very undesirable and deadly habit that people rightly want nothing to do with. The fact that this recent announcement concerning strata legislative reform will off er up a near total ban on smoking anywhere that smoke might drift and aff ect others in a strata scheme shows how our att itudes have changed and policy makers are moving with that.

Pets is another example of strata legislation moving with the times. The term ‘fur baby’ was probably one which would get you jeers and sniggers in 1997, and yet it is popular parlance today. The proposed changes to how the presence of pets is regulated under the Act reflects this growth in the significance of pets, and their important and very meaningful relationship to their owners. In 1997, the notion of a housing crisis in Queensland seemed a litt le far-fetched. In fact, you could buy almost 2.5 houses in 1997 for the price of one

house in Brisbane today when you adjust for inflation. So, the notion that you need to make it easier to terminate ageing schemes for redevelopment probably wasn’t on people’s minds. Indeed, the issue of ageing schemes is a relatively new concept in strata, 25 years ago this issue was not contemplated. With more and more people calling strata home, it was high time that the laws governing strata reflected more closely societal att itudes. These changes shift the pendulum positively in that direction.

SCA (Qld) generally supports these reforms. But we do want more action. Action to significantly reform debt recovery, management rights and the regulation of strata managers is needed. Societal att itudes on these matters have changed. Cowboy commerce is not accepted in 21st century Queensland and we need professionalism and equitable consumer protection to ensure we maintain our social licence as an industry. We cannot accept unethical or uneducated strata professionals any longer. These issues are a couple of significant ones that must be reformed now. Consultation and parliamentary processes take time and I acknowledge that this process has started! Whilst of course, these processes must be respected we must also always be pushing for the law to catch up with changes.

SCA (Qld) wants strata to be flexible, fair and operated in a professional manner. The objects of the Act are timeless and worthwhile, ensuring the Act achieves them is another matter.

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Damage to property

PART ONE

When proposing a motion, or making a written request, you should consider advising the other party of the action you are seeking. If it is for reimbursement, you may provide a copy of an invoice and ask for a specific sum by a designated date.

By the Office of the Commissioner for

Corporate and Community Management

the damaged property; or

• pay a fi xed amount for reimbursement for the repairs.

Limitation of section 281

Under the Body Corporate and Community Management Act 1997 (Qld) (the Act), a property owner may seek reimbursement or an order for repair, in certain circumstances, through our office.

This article (part 1) will explain the application process, the thresholds required to lodge an application for a dispute resolution, limitations on orders and relevant adjudication orders. Next month’s article (part 2) will explain contravention of the Act, common contraventions and relevant adjudication orders.

It is important to remember that any order is based on the circumstances of the parties involved and is not a precedent.

Section 281

Section 281 of the Act provides that, where an adjudicator is satisfied the applicant has suff ered damage to property because of a contravention of the Act or the community management statement (CMS), the adjudicator may order the person who they believe, on reasonable grounds, to be responsible for the contravention to either:

• carry out stated repairs to

There are limitations on an adjudicator’s order for damaged property. An adjudicator cannot make an order where:

• the costs of repairs are more than $75,000; or

• the reimbursement amount is more than $10,000. While an adjudicator is limited to the amounts set out above, a property owner can seek a remedy through a court with a greater jurisdiction. If a property owner was seeking recompense beyond these limits, they can seek legal advice.

Section 281 of the Act sets out what an adjudicator can order, provided they are satisfied that the complainant has met key elements of the section. However, in most cases, parties to these types of disputes will have to try to resolve the dispute themselves including by participating in conciliation before lodging an application for adjudication. More information about conciliation and adjudication can be found on our website.

Parties to the dispute

Our office can only provide dispute resolution services to certain parties and certain combinations of parties.

Section 227 of the Act specifies who is eligible to lodge a

dispute resolution application and the eligible party the application can be made against. A body corporate, owners, occupiers, lett ing agents, service contractors and body corporate managers may be parties to a dispute.

For example, if your property suff ered water damage because an upstairs lot owner’s shower leaked (something an owner has a responsibility to maintain) you would have grounds to bring an application to our office under section 227(1)(a) against the owner of the property. Conversely, if your visitor’s car was damaged because of a burst pipe in the car park, they (not being an owner or occupier, and assuming they do not stay at the property often enough to be classed as an occupier) would not have grounds to make an application for a remedy under section 281. They may need to seek legal advice on the options available to them.

Preliminary step: Self resolution

Before lodging a dispute application, you should first attempt to amicably resolve the dispute yourself. If you request the body corporate to act, you should propose a motion to be considered at a committee meeting or a general meeting and as soon as appropriate.

However, if you require another owner or occupier to remedy the issue, then a request in writing can be made directly to the other party.

If the request is for damage to be repaired, it may be prudent to provide a quotation and a reasonable timeframe for the works to be completed.

Establishing grounds for your application

Damage to property

Section 281 of the Act specifically relates to property damage.

Example of damage covered

Section 281 applies not only to common property, such as land or a building but also to personal property, such as a motor vehicle or furniture. An example of the type of damage covered under section 281 is soiled carpets after water ingress caused by a failed common property pipe. Carpets are generally not covered under the body corporate’s building insurance, and some lot owners struggle to get the body corporate or person(s) responsible to agree to replace or fi x the carpet. This is where section 281 may off er recourse to the lot owner.

General damages

Section 281 is contained to repairs and reimbursement for repairs to property and therefore does not extend to general damages (for example, loss of rent).

Nevertheless, other courts with greater jurisdiction may award general damages. For example, in MAGOG (NO. 15) Pty Ltd v. The Body Corporate for the Moroccan [2010] QDC 70, the District Court awarded a lot owner loss of rent, plus interest, after the body corporate failed to maintain a waterproofing membrane that att ributed to the damage to property and loss of rent.

Occasionally in bodies corporate, property can be damaged through no fault of the property’s owner who could either be an owner of a lot, an occupier, or the body corporate.

Body

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Higginson a big driver in management rights

By Grantlee Kieza, Industry Reporter

This month, Resort News caught up with Frank Higginson who runs the law firm Hynes Legal.

When he’s not at Royal Queensland trying to cut his golf handicap to ‘scratch’, he’s leading the field as one of the most respected figures in the management rights industry.

How did you start in management rights?

I really just fell into property law. I started my legal training in January 1992 with five years of article clerkship at Short, Punch and Greatorix on the Gold Coast. They did a heap of work in management rights as well as broad-based property stuff, and the love for that sort of work never really left me. I was articled until 1997, while I was doing my law degree externally from the Queensland University of Technology. Working in a legal office full-time while studying law was a great way to learn the business side of things, but it was an old school way of doing a degree and they don’t offer that anymore.

What’s your hometown?

I was born in Gladstone, but my parents moved to the Gold Coast when I was a kid, and I grew up there. I moved to Brisbane in 2011.

Cricket was a big part of your life?

I played a lot of local A-grade for Surfers Paradise and then decided to go up the tree to the Dolphins in the Brisbane grade competition. I was the first person to play all six senior grades there! I ended up playing and captaining mostly second grade, but I did play four A-grade games for the Gold Coast, and two of them were alongside Andrew Symonds, the great Test all-rounder. The club also included top cricketers such as

Scott Muller, Bruce Oxenford, and Greg Campbell, who was the Ashes Test ‘bolter’ in 1989, but they were all a class above. It’s like golf, you really can tell who has it and who doesn’t. I could bowl quickish when I got it right (which wasn’t as often as I would have liked) and I was a very ‘sloggy’ lower order batsman. My single ton was in third grade from number 10.

I was admitted as a lawyer in April 1997 and the big cricket thing at the time was the Ashes Tour to England that year, so I went over there for a working holiday and to follow the cricket. I knocked around a bit and I played for Blackheath in the Kent League for two seasons which was great fun. My very first job in London was checking people’s bags for bombs as they came through the gates at the Oval, the Test cricket ground in South London. I got to see the one-day games and I saw Glenn McGrath take his best-ever Test bowling figures against England at Lord’s (8/38) which was a cracking day.

Did you work in a law office in England?

I did, but it was just running their accounts. The firm was a big European one who billed at $600 USD an hour back then!

I came back to the Gold Coast in 1999 and did two years at MinterEllison, and then joined Hynes Legal in 2001. Robert Hynes had started the business in the late 1990s and we became business partners, working together until late last year when he retired.

I was based on the Gold Coast until 2011 and we did a lot of property work over the years with developments and management rights and bodies corporate but towards the end I was really narrowing the practice. Part of that was choice and part of it was necessity - the arrival of the GFC killed a lot of the property development work on the coast for a while, but management rights and body corporate work just soldiered on.

Management rights is a huge industry, and it continues to grow?

Yes. One of the big things is the constant influx of new people into strata, for all of management rights, committee members and body corporate managers. There is a lot of repeat business in our work, constantly revisiting issues we may have dealt with years ago at the same building, or dealing with those same issues in a different building.

Right now, there is a big threat to cut long-term agreements. How do you see that playing out?

Fundamentally it would be very unfair if the government took away long-term agreements for existing management rights businesses. A legislative system was created in which people invested and to change that without notice or compensation, would just be completely wrong.

The legislation in 1997 specifically catered for longterm agreements. To me, what they do with new buildings going forward is a bit of a clean slate because it’s not affecting people who have invested, based on the existing legislative system. But they should not pull the rug from under those people who invested based on the laws that are already in place.

What advice would you give someone wanting to get a start in management rights?

Spend time with people who are already in it. The best experience comes from those who have lived it, so listen to them. As a business model, management rights work very well, but with lived experience you can learn from other people’s mistakes so that you don’t make them as well.

Trevor Rawnsley with Frank at a Cowboys game

What do you see as the future of the industry?

I’ve seen the business of management rights grow bigger and bigger over the last 30 years. Just like any other business, if you provide good service and value for money you’re going to be fine, but if you’re lazy and sloppy and take things for granted and don’t do what you’re required to do in the job there are going to be consequences. That’s not in a legislative sense, that’s in a performance sense.

One of the criticisms raised about management rights is that some managers take the job for granted and don’t deliver. But if you deliver, you’ll be fine. I’ve had hundreds or even thousands of clients over the years and I recognise the ones who will do well in the business because they deliver. They are communicative, they engage, they know what’s going on, they are professional, and they look after people. That ultimately pays for itself in the end when they’re looking for a sale, or a top-up, or other support from their committee.

You’ve had some great mentors in the business?

Mike Backhaus (now retired) was my ‘master’ when I was articled and he taught me a lot, but in the way of kids, I didn’t listen to a lot of it. John Punch was likewise, and I

made a speech honouring him at ARAMA’s 30th anniversary celebration on the Gold Coast last year. Col Myers though is probably a bigger one. Col and I catch up every three or four months for a lunch and a chat about all the stuff that goes on -no holds barred!

I’m also very lucky to have a long-suff ering wife, Karrina. When you’re growing a business and flogging yourself or having to travel for presentations and conferences, you spend a lot of time without your spouse who is left behind looking after all the other things. That work sometimes goes unthanked so I’m very grateful to Karrina for everything.

What do you do away from management rights and running your legal practice?

I play as much golf as possible. I get asked occasionally to come back and play some golden oldies cricket but I’m nearly 50, and I’m scared I’ll rip something off a bone, which would then mean less golf. I’m not going too bad at the moment playing off a handicap of two but the search for ‘scratch’ remains elusive though!

The batt le is retiring early enough to have the time to practise and retain the length off the tee to get there.

Frank with his daughter Eloise

Frank with the claret jug at RQ

2023 Tax planning time

By Lel Parnis, Principal, Holmans

It’s that time again, Christmas feels like yesterday but the Easter bunny will have been and gone in no time and the end of the financial year looms.

And with June 30 fast approaching, it’s essential to take the time now to review your overall position and implement strategies to ensure the most eff ective outcome for your overall business objectives including tax minimisation where possible.

There’s no magic tax planning solution (that I know of anyway) whereby you make more money and pay less tax. The more you earn the more you pay in tax generally speaking and so a higher tax bill is synonymous with improving business performance and is a good thing, right? What’s not good is a surprise bill you’ve not saved for. The answer is to plan

Tax planning, as we call it, is taking the opportunity prior to the end of each financial year to review business performance to date, estimate your taxable income and consider strategies to minimise tax and other actions to further business goals.

To that end, I’ve noted a list of items to consider while planning your business cash flows and tax position for the financial year ending June 30, 2023.

Timing your ‘CGT’ events

Are you looking to dispose of assets, expecting capital gains and losses, if you have actual

or potential ‘capital gains tax’ (CGT) events in this financial year? Stop and consider the timing to ensure you factor in potential tax consequences to your decision-making process. Generally, the contract date dictates the tax year a capital gain or loss is reported in, not the sett lement date. Be careful not to fall into the trap of trying to spread multiple sales over two financial years based on the sett lement date.

Instant asset write-off s to end after June 30, 2023

Small businesses (under $10 million turnover) can immediately deduct business assets installed and ready for use on or before June 30, 2023. At the time of writing this article, there has been no word of extension or amendment to this allowance which means from July 1, 2023, all business assets purchased over $1000 ($100 for businesses with over $10 million turnover) will be depreciable over the life of the asset rather than being tax deductible on purchase.

I’m still holding out hope for a sensible outcome on this from the government but as it stands, tax deductions for business assets from July 1, 2023, will be significantly less and it would be wise to consider potential purchases over the coming months with this in mind.

Immediate tax deductions for prepaid expenditure provided the period to which the expense relates is less than 12 months (think prepaid interest, insurance etc.).

Small Business Technology

Investment Boost allows small businesses to claim a tax deduction for 120 percent of eligible business expenditure and depreciating asset purchases which support them adopting digital services such as portable payment devices, cyber security systems or subscriptions to cloud based services.

So, if you are looking to move your systems to the Cloud, and why wouldn’t you? Then there’s an additional 20 percent tax

Consider strategies to minimise tax and other actions to further business goals

deduction for eligible costs incurred from 7.30 pm March 29, 2022, until June 30, 2023. For expenditure incurred between March 29, 2022 and June 30, 2022, 100 percent of the expenditure is claimed as usual in the 2022 income tax return with the additional 20 percent deduction claimed in the 2023 income tax return. For eligible expenditure incurred from July 1, 2022, the full 120 percent deduction will be claimed in the 2023 tax return.

Small Business Skills and Training Boost similarly allows small businesses to deduct $1.20 for every $1 spent on external training courses for employees provided in Australia or online by registered training organisations. There is no cap on the 120 percent claim for eligible training expenditure incurred between 7.30 pm March 29, 2022 and June 30, 2024. Pay employee super by June 30. Superannuation contributions are only ever tax deductible when paid, if paid on time. To ensure a tax deduction for employer superannuation contribution on wages for the final quarter of the 2023 financial year ensure superannuation contributions for employees are paid and cleared by June 30, 2023.

The concessional superannuation contributions cap for the year ending June 30, 2023, is $27,500. Bear in mind when making any lump sum contributions prior to year-end, that concessional contributions include personal and employer contributions made on your behalf to avoid potential excess contributions taxes.

If your super fund balance is less than $500,000 you may be able to make additional

tax-deductible concessional contributions for any unused cap amounts for the 2019, 2020, 2021 and 2022 financial years. So, if you made no concessional contributions to date, you may be eligible to claim a tax deduction for up to $102,500 plus the current year’s concessional cap of $27,500 totalling $130,000 in potential tax-deductible superannuation contributions.

Get ready for super changes from July 1, 2023

The super guarantee rate will increase from 10.5 percent to 11 percent on July 1, 2023. You will need to ensure the new rate is applied in your payroll system for any payments made from July 1, 2023, even where some or all pay period is for work completed prior to July 1, 2023. The SG rate is legislated to increase to 12 percent by 2025.

On February 28, 2023, the government announced from July 1, 2025 a 30 percent concessional tax rate will be applied to future earnings for superannuation balances above $3 million. This measure is not yet law. I strongly advise you to liaise with your super fund advisor before taking any action in response to the recent announcements be sure you are clear on all consequences thereof.

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.

Death, taxes and change

principle with very little detail yet, but we are going to have new specific laws on towing of cars, smoking and more overt permissive pet policies. A really big one is the apparent ability for a majority of more than 75 percent to force the sale of lots in strata schemes. These provisions have been in NSW for a while and have seemingly stalled in recent times because they aren’t working as intended.

By Frank Higginson, Partner, Hynes Legal

The previous two certainties in life have been joined by a third - change.

Change is good. Life becomes a bit boring if you get trapped in the same space all the time, but the counter argument to that is that too much change makes life a tad too hectic.

Which, to be completely honest, feels like that at the moment.

Leaving aside economics, US bank collapses, consistently rising interest rates and who knows what other conflicts lurk around the corner. A little closer to home is the property law review.

It’s been in the works now for nearly a decade, but we are now getting to the pointy end. We will soon have a new Property Law Act (replacing the 1974 version) and a whole new regime for disclosure around the sales of property. On top of that we have the first tranche of BCCM changes to consider. These have been announced in

Will we learn from that experience?

Those are all important issues for management rights operators in the context of their business. The major one though is the potential reforms on management rights and the discussion around term. While submissions are in, we have not seen anything from government yet, and if there was a market for it, I would say an odds-on bet would be that it will take longer than anticipated. Leaving aside the nature of the topic, there is a heap of work for the legislation drafters in coming up with laws on the new proposals and consulting on those before anything new is taken on.

Don’t hold your breath on that one.

The other rocket of change is Chat GPT. If you haven’t had a play with it, you should. It can be quite fun but there is a degree of consternation out there among lawyers who wonder if we will be replaced by it.

For the record I don’t think so…. yet. A former lawyer mate of mine often says to me that

Can a Queensland body corporate stop short term le�ng?

Yes, a Queensland Body Corporate has the power to make and enforce by-laws that regulate the use of lots and common property within the scheme. This includes the power to make by-laws that prohibit or restrict short-term le�ng within the scheme.

However, any by-law made by a body corporate must not be inconsistent with the Body Corporate and Community Management Act 1997 (Qld) or any other legisla�on. Therefore, any by-law that seeks to prohibit or restrict short-term le�ng must be carefully dra�ed to ensure that it is lawful and enforceable.

It is also important to note that any exis�ng by-laws must be reviewed and updated to ensure they comply with recent legisla�ve changes in Queensland regarding short-term le�ng. The changes allow for short-term le�ng of a person's principal place of residence for a maximum of 180 days per year, subject to certain condi�ons.

If you are a member of a body corporate and have concerns about short-term le�ng in your scheme, you should consult the by-laws and seek legal advice on the op�ons available to the body corporate.

when the revolution comes, the lawyers are going to be the first one against the wall, but for those of you who echo that sentiment, I wouldn’t be loading up the ammunition quite yet.

The amount of information on the internet is extraordinary. For our firm alone we have about 150 articles, a heap of FAQ and more than 100 hours of YouTube webinar content. That is probably scratching the strata surface in terms of information, but there is still a lot more out there.

And that’s just us. When you add everyone else in, there is almost too much information, and some of it is inconsistent. Some of it is subjective, and some of it is just plain wrong.

Take this question posed to Chat GPT on short-term letting. It states some of the law correctly but then interprets that incorrectly to provide the wrong answer and

then also drags in some NSW provisions for good measure.

The answer is certainly framed in a way that would make you think it is right, starting with the unequivocal ‘yes!’. Anyway, the point of the story? We have so much more change coming it isn’t funny, and you need to be bloody careful where you get your information from.

Resident managers are quite often asked about these seemingly minor things, but you want to be able to give accurate answers when asked. Don’t guess.

While ChatGPT may not be accurate, it at least gives one sound piece of guidance, to “seek legal advice on the options available”.

It wouldn’t really be an article from a lawyer without that selfserving statement would it?

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Motels: Target market

• Which type of potential guest should we be aiming to att ract?

• Where is the motel positioned in the market?

• Are we targeting the right market for the business?

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

If a motel’s average occupancy rate is sitting at 50 percent there is clearly an upside opportunity available. Half the rooms are not being filled over the course of a year. How do we find potential guests to fill these unoccupied units? By throwing unlimited funds into advertising?

Absolutely not! Marketing in a cost eff ective and direct manner without blowing the budget has to be the goal.

To achieve this consider the following:

• Is the motel more suited to the high tariff traveller, the middle-of-the-road traveller or the budget conscience, cheapest room available guest?

These are questions that need answers if a business owner does not have a bottomless pit of marketing funds available. Due to the never ending off ers of marketing opportunities available, the incorporation of a clear strategy can help ensure that a motel business gets the best value for money from its marketing budget. The business owner or operator is the best person to determine which market the property is suited to and how it is going to get to that market. Also, they are best to know where potential opportunities exist to att ract new customers, on the basis of the local area, local industries, the business itself or new developments occurring.

Target marketing for the individual motel

What services do the business

and property off er? If the motel room has a separate desk with executive chair, free wifi internet access, and the property includes a licenced restaurant and meeting and conference facilities, it is more than likely suited to the business or corporate market. A large pool with playground facilities, larger or separate bedroom units with numerous beds and some form of cooking facilities or even an additional sink with bench space will be most suited to the family, sporting group or tourist traveller. Don’t forget the free wifi internet access for this market as well and the large smart television which appeals to all markets. A corporate traveller is more than likely not interested in the size of the pool, but more so the ability to put a laptop or iPad on a separate desk with a comfortable chair. In many cases, a motel will off er various room types and be able to att ract diff erent market segments for the diff erent facilities available.

What standard is the property?

If the property is of a high standard with a quality fi t-out, the higher-end and corporate traveller is the more likely target market. The budget conscience traveller will be dictated by the room rate as to where they stay, rather than the facilities available being their buying

motive. In saying this guest expectations for their dollar (no matter what the level) are gett ing higher and higher. What are the room rates being charged? Higher room rates will att ract the higher end market with the expectation of a higher standard of presentation and high level of ancillary services available that suit that traveller and satisfy their individual requirements.

Answering these questions can assist in determining the target market and therefore a direct marketing strategy can be focused on gett ing to those most likely guests, and thereby state a case for why a potential guest will be satisfied staying at that motel. In other words, off ering the products and services that will satisfy that guest’s need.

Accessing the target market

What are the best mediums available? A few options depending on the particular target market are:

• Internet: A motel’s own website off ers the opportunity to sell the property’s assets, services and benefi ts directly to the market with extensive information on what

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the motel offers to the prospective guest. This is also the opportunity to get the guest to book directly. Alternatively, online room inventory and rate management are terms that are often heard regarding booking sites and programmes. Channel managers provide access and a conduit to numerous booking sites in order to maximise a motel’s online exposure.

• Social media: Directly accessing the target market via social media such as Facebook, Twitter, Instagram, LinkedIn and others is a cost-effective method of directly communicating with the target market. Many may already be familiar with the property’s products and services however it offers a good opportunity to promote the features and benefits and any new services or specials available to attract future stays. It helps keep the motel in the front of mind of future guests.

• Print (hard copy) publications: There are various options available as far as print media goes. Publications to the industry offer direct access to those potential guests within the industry (who can help to sell your product to travellers via a mutually beneficial referral basis) and to potential guests who access the publication from other accommodation properties during a stay, or from other sources.

• Street, highway and airport signage: The use of highway and street signage has been around for a very long time and is still a popular medium for accommodation providers to access the travelling market. If the target market is the drive market, it does go directly to the drive market yet to book accommodation, or that require it in the future. If targeting air travellers, then the airport billboard and many different types of static and interactive signage options are available.

• Chain affiliation: The assistance provided by

chain affiliation in regard to marketing is often out of the individual operator’s control apart from being a member. Brand awareness is important, and this is an area where chain affiliation can be effective. Brand awareness can provide immediate acceptance by a target market of a certain level of accommodation and services without it needing to be further sold to a potential guest.

• Local tourism bodies , industry memberships, referrers and accommodation industry memberships can be very effective from a customer referral point of view and provide a cost-effective method of marketing directly to the traveller. Membership for these groups will suit some motels better than others, so again choosing the ones that will be of the most benefit is important.

• Local business and industries: Local rotary organisations and other community groups who may attend meetings or conferences at the property and who will recommend the complex to family, friends and business associates for accommodation and a night out for dinner perhaps. The income derived directly from these meetings may not be the most profitable, but their constant referrals can result in a very profitable long-term outcome. Sponsorship is another method to gain direct access to a target market. If sporting groups are the target, then teams or events are an option. Again, awareness is key here.

It is very easy to spend a fortune on marketing for little result. Hence why target marketing is so important, especially from a small and medium business point of view. Many motels are still family-owned businesses and throwing money at every marketing opportunity presented (rather than the most effective) can end up being a very bad investment.

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Industry Recognised Workplace Performance

You can’t do that!

between operator error and death is mere milliseconds. In most cases the carnage will be limited to the operator and will come to rest well off the designated carriageway, thereby causing minimal inconvenience to other road users.

Mate, forget it. You must be insane to think of such an idea and even crazier to believe we would approve it for use by the general public. The proposed operators sound like organ donors in waiting and we have a responsibility to protect people from themselves. Application declined.

The comedian Jim Jeffries is profane, offensive, politically incorrect and very funny. His riff on America’s fascination with guns is particularly biting. He observes that people of a certain demographic get very angry when he suggests that perhaps it’s time for the great US of A to reflect on gun violence.

“You can’t change the 2nd amendment” they shout, to which he retorts, “Yes you can, it’s called an amendment!”.

Kinda says it all when it comes to some attitudes to change. Got me thinking about stuff we take for granted that might not get a run in today’s gentler, more feeling world.

Imagine you are an inventor. You come up with a brilliant new means of transportation and take the idea to the relevant government body. I imagine the conversation going something like this…

Gidday, I’m a mechanical genius and I’ve come up with this new way of getting around. It’s economical, takes up far less space than a car, has lower emissions, is cheaper to buy and maintain and is fun to operate.

Sounds amazing, how does it work?

Well, we start with a 190HP engine which we attach to some steel tubes.

So, attached to the steel tubes that also support the roof and all the safety equipment, seat belts, airbags and what have you?

Ah, no. There’s no roof, no seat belts, and no airbags. My god, how does the operator get in this thing?

Well, that’s the brilliance of the idea. You don’t get in, you get on. We put a wheel at each end and the operator sits on the engine in the middle and steers via an aluminium bar attached to the front wheel. We have installed really good brakes albeit in testing we found

that enthusiastic application tended to result in the operator being spat over the aluminum bar. Testing continues.

Are you serious? This device sounds like a death trap. What happens if the operator makes an error. Good question. Given that my machine accelerates to 100kph in three seconds the time frame

Now imagine you are a farmer looking for a new crop to monetise. After much experimentation a suitable plant is found. It’s already used in some products, grows relatively easily but tastes terrible. In an inspired moment you decide to dry the leaves and roll the result in papers. Now, you stick it in your mouth and light it. After much wheezing and gagging a strange calm comes over you.

Your newfound relaxant seems the answer to your prayers, and you take it to the appropriate food and drug administration for approval to manufacture and sell your miniature cigars. Turns out the authorities have some reservations. Your product contains a highly addictive stimulant which will certainly lead to addiction. If that’s not bad enough there’s also some concern that the prolonged use of the product will kill the customer.

By Mike Phipps, Mike Phipps Finance

No worries you say. We’ll just put a warning on the packet that advises the user of potential addiction, disfigurement and death.

Application declined. And yet, here we are in the 21st century with motorcycles and cigarettes readily available for any punter prepared to take… a punt. Which, in my usual convoluted manner, leads me to banks. Unlike transportation devices that will try and kill you and consumer products requiring similar warnings, I think the original idea of banking was a good one. The problem seems to be that as banking has evolved some of the stuff they get up to could well be compared to the out of control motorcycle or the cancer inducing coffin nail. It is this, how shall we say, diversification, which has led a number of financial institutions to the brink these past few

days. Everything from highrisk lending outside accepted standards of credit assessment to dabbling in crypto currencies are coming home to roost. Thankfully the dramas so far appear to be contained to a number of US banks and Credit Suisse. In most if not all cases so far, it’s hard not to draw the conclusion that problems arose when these institutions got fast and fancy with high margin, high risk strategies that failed to pay off. Here in the land of Oz I would argue that we enjoy one of the safest banking environments on earth. Having said that our banks regularly raise the ire of regulators with eye watering fines the order of the day. I would argue that unlike some overseas peers, our banks are usually fined for breaches of regulations that in no way risk the fundamental viability of the organization. It’s important to diff erentiate between being a bit naughty in a highly (some

might say over) regulated banking environment and throwing caution to the wind. Here’s the thing. Banking, at its most simplistic, is a confidence game. You deposit money, usually on call, and the bank keeps some for emergencies and lends the rest. At call means you can withdraw your loot at any time while lending terms can be as long as 30 years. You see the problem. If everyone loses confidence and lines up to withdraw their dough the doors will close. And how does the average person lose confidence you ask? In the Australian context that’s a four-step dance. Step one, some overseas bank oversteps the risk mark and loses a stack of money. Step two, the deposit holders in the bank panic and all want their money. Step three, that bank closes its doors or gets rescued. Step four, a confidence crisis manifests for no good reason and the lemmings

follow each other off the cliff.

By the time you read this I expect the consequences of the Silicon Valley Bank debacle and the UBS takeover of Credit Suisse will be well known. Let’s hope local bank customers can recognise the diff erence between the regulatory environment and operations relevant to these companies as compared to the banking landscape here in Australia. Yes, some of our banks have stumbled from time to time but make no mistake, in the global context we are as safe as houses…

In closing a caveat… the ‘managing director’ and I spent many a happy Sunday pre children tearing around the countryside on a variety of motorcycles, stopping only for a smoke and a beverage. When she quit in her early twenties, she cried every Friday night for six months. I cried too.

Sometimes people just need a special heart that listens

By Kelley Rigby, Managing Director, Lett s Rebuild

and successful women all of which we are lucky enough to have in the management rights community. Whilst sitting amongst them listening to them exchange stories about their experiences in our industry, there were many common denominators but the one that stood out the most was the kindness and selfless acts these women did for their communities. The stories that flowed freely throughout the group spoke about many issues, from mental health scares and assistance with domestic violence to simple acts like helping residents with their groceries. Being an onsite manager of a scheme is so much more than a business and a place to call your own, it is a community and essentially you are at the helm.

A few years ago, an onsite manager who is also a friend of mine asked me to assist with rallying their owners together for the upcoming AGM. This meeting was particularly important as they were asking for a ‘Top Up’ and approval for some major

renovations. When discussing the owners and revealing some background information, the manager explained that one of the owners had always been rude and quite short with them, openly expressing her dislike for onsite managers… she was my first phone call.

When she answered the phone the rudeness and abruptness of her voice was very apparent. Things only got worse when I explained where I was from, and she barked: “What do you want?”

This owner was living in Victoria at the time so before my pitch began, I simply asked, “how are you going? It was during COVID, so I went on to ask, “how has the lockdown been?” One brick came down when she admitted it had been quite difficult.

From there I continued to ask questions about her time and why it had been so difficult, apart from the obvious reasons. She explained that her elderly mother lived with her and suffers from severe dementia sometimes becoming overly aggressive. We spoke for

about 30 minutes, and we ended the conversation not even mentioning the AGM. Immediately, the manager and I organised a beautiful hamper with a simple message that said “You are doing a great job. Our team is here if you ever need anything”. No pitch just a simple act of kindness.

The owner approved all motions at the AGM and has continued to be a supporter of the manager ever since. A simple act of kindness and selflessness can go a long way. You never know what people are dealing with in their personal life, we are wired to portray a certain controlled and invincible persona but deep down we all just want a little bit of kindness.

To be kind is more important than to be right. Many times, what people need is not a brilliant mind that speaks but a special heart that listens. In a world were selfishness and self-interest surround us be kind and put those needs of others before our own.

Yes, it’s me again blabbing on about being kind, thoughtful and thinking of others before ourselves. I must admit my optimistic world has been on shaky ground over the last few weeks, but I continue to believe that there is good in all of us and kindness and empathy will continue to win in this game we call life…

I was lucky enough recently to sit in a room with some extremely intelligent, kind

Insurance clamp down on leaks & maintenance in residential strata

Evidence of water leaks does not automatically confirm shonky construction work, but water leaks do require urgent and immediate remedial action from the body corporate.

By Lynda Kypriadakis,

If you are like me, you would have noticed the recent clampdown on body corporate insurance claims, especially claims relating to damage caused by defects in the building that allow water to leak into habitable areas. It seems that body corporate insurers are taking a dim view of bodies corporate that are unable to demonstrate a culture of pro-active maintenance of their waterproofing systems.

If the body corporate has a history of water leaking into apartments and multiple claims lodged for water damage repairs, coupled with no evidence of routine maintenance on waterproofing systems, the insurer may start denying claims and requiring the body corporate to obtain specialist or engineering reports and undertake maintenance.

Water damage

Water ingress and resultant damage is one of the top three defects in residential strata complexes around Australia (research study into defects by Dr. Nicole Johnstone of Deakin University, An examination of building defects in residential multi-owned properties 2019) and will probably be experienced by almost every residential strata complex at some point within its life cycle.

Water leaks are not necessarily a sign of a bad building or shonky building practices but failure to maintain and repair defects that allow water to leak into the building and cause damage is a definite sign of a body corporate that needs to urgently implement a regime of proactive maintenance.

Waterproofing systems

What are insurers looking at in terms of waterproofing systems in the common property of a residential strata scheme? Here are the fi ve main waterproofing systems that provide protection against the threat of water damage:

1. Roof

Roof and rainwater disposal systems (gutters and downpipes) are an integral part of the waterproofing systems for protecting the building against water ingress. Whether the roof is metal decking, concrete roof tiles or a waterproofed concrete slab (or a combination) the roof needs regular routine inspecting and servicing to maintain in optimal condition.

2. Windows and doors

The windows and doors within the complex are also a common source of water leaks and can cause a breach of the waterproofing barriers across the building. Windows and doors also need routine inspecting and servicing to protect against defects that will allow water leaks to penetrate apartment interiors.

3. Waterproof membranes

Where waterproof membranes are installed to protect against water ingress these also need inspecting routinely to ensure integrity. This includes balcony or deck waterproofing, wet area waterproofing, planter-box

waterproofing, and so on. A visual inspection will be the first step. Where signs of water leaks are detected, an invasive survey will be the next step (where linings, tiles or planter box soils are removed to inspect the concealed membrane areas).

4. Drains

Something as simple as clearing leaf litter out of the stormwater drain, and cleaning leaves out of eaves gutters to unblock the stormwater system is a simple strategy for avoiding water ingress. Blocked drains are a primary cause of flooding due to rainwater being unable to drain away eff ectively. Flooding can also occur if drains are insufficient or poorly constructed, for example where water flows into the habitable areas from the exterior via balconies and decks (where falls are not correctly set) or blocked drains not discharging eff ectively.

5. External painting

This is where bodies corporate undervalue the full external repaint for the property, especially if the external cladding is rendered or painted. Masonry finishes can tend to shrink and crack and allow water ingress if left unresolved. Once water gets in behind the paint membrane it is very difficult to get it out and it will slowly erode the structural integrity of the substrate.

Prevention is better than cure!

Best leak prevention advice to bodies corporate is a routine of proactive inspections and servicing of the waterproofing systems within the property, including:

Roof

Annual inspection by a licensed contractor. The scope of works should include full access to the roofs and rainwater disposal infrastructure, along with the completion of minor repairs that can be done on the spot, and a report on any defects discovered

during the inspection that need proper quoting.

Windows and doors

Annual inspection by a licensed contractor with minor repairs delivered on the spot and a report on items that need quoting. For inaccessible windows, consider gett ing the rope access technicians to inspect when doing the annual building wash down.

Membranes

Have an annual inspection by a specialist contractor who has a good eye for tell-tale signs of early membrane failure. Membranes typically have a 10year warranty period but can fail much earlier if there is building movement causing cracks to form, or plant roots penetrating the membrane as gardens mature in planter boxes. Act on early signs of membrane failure to prevent a bigger issue.

Drains

Coordinate and arrange a licensed plumber or drainer to undertake an annual inspection of all stormwater drains to ensure no blockages or cracks have formed. Ensure the caretaker or building manager is keeping the accessible drains clean and free of blockages.

External repainting

Keep the annual paint wash downs going each year and get touch-ups done where necessary. Ensure the full repaint is undertaken in accordance with the paint supplier recommendations (Generally every 10 years, contact the paint supplier for confirmation).

Any body corporate that undertakes a regime of proactive inspecting and servicing of the waterproofing systems within the building (such as detailed above) will not only have an audit trail of vigilance in proactive maintenance to present to the insurer at renewal time but will be highly unlikely to have any leaks!

Diverse FMX

How safe is the cloud?

By Sylvia Johnston, Senior Executive, HiRUM Software Solutions

‘The cloud’, we’ve all heard of it and we’ve probably all used it, often without giving it a second thought.

The term ‘cloud software’ conjures up the image of your data floating above your head, ready to be plucked from the air as you need it… reality is a little different. It is actual physical data storage, and that storage does involve hardware systems and their inherent security risks. Therefore it is vitally important to understand the different ‘cloud’ options available to you and what choice is the most appropriate in order to keep your business safe, minimising the risk to your data.

Many software programs now run purely on the cloud, and the data within these programs is also stored on the cloud, allowing easy access to the program wherever you have internet access. However, it is important to be mindful that this convenience does not come at the expense of your data security. In our industry, the level of care required to ensure your guest and owner data is secure is not only a moral requirement, but also a legislative one. That said, it is important to be aware that all is not equal when it comes to cloud storage, and it is vital that you understand the inherent differences between your options.

When looking at cloud options, the one that most readily comes to mind is the public cloud. These are low-cost storage systems owned by an outsourced cloud provider, the likes of Microsoft Azure, IBM Cloud or Google Cloud. Within a public cloud environment, you share hardware, storage and network devices with other ‘tenants’ and access your account and services using a traditional web browser.

Public Cloud systems are easily scalable as additional storage is required, have

no geographic barriers, and are available on any device with access to the internet. Maintenance and development of the infrastructure is up to the cloud provider and is very much a one-size fits all approach. They are ideal for smaller to medium sized businesses looking for lower cost solutions, but by their very nature, they are generally the least secure solution for sensitive data.

Think of it like a bank. Customers deposit their money, which is all held in the same vault. If someone manages to break into the vault, they have access to everyone’s money. Now substitute money for data, and you get the picture. By comparison, the private cloud is a storage system that is exclusive to the associated organisation. It is a dedicated secure environment that cannot be accessed by others. It may be located on premises or via a third-party vendor off-site.

Security is customisable based on business needs, and organisations can configure and run protocols to ensure compliance to stringent regulations. It remains scalable and efficient without compromising security, mobility or performance. Maintenance

and development are controlled by the organisation and hence is flexible and customisable. Now, to get access to your ‘money’, the would-be thief must not only break into the bank’s vault, but also into your personal safety deposit box inside that vault. Access to one does not mean access to all.

In our industry, security and privacy of both owner and guest data is highly regulated. Potential breaches of these regulations are the responsibility of the accommodation business provider, not the cloud storage provider, and the punishment for breaches can be very costly.

The private cloud is recommended for any such highly regulated industries. Interestingly, and perhaps tellingly, government agencies and financial institutions use private cloud, mitigating risking their sensitive data to the public platform.

It is important to remember, in the quest for convenience, that you don’t sacrifice security. Private cloud options can provide the happy medium between ease of access and the data security you and your business deserve.

Brisbane named in TIME Magazine’s ‘2023 World’s Greatest Places’

One of the world’s most influential publishing powerhouses, TIME highlighted some of Brisbane’s leading urban experiences, including bustling premium dining and retail precinct James Street, and the highly anticipated Queen’s Wharf Brisbane; a new $3.6 billion entertainment and leisure destination nearing completion on Brisbane’s River edge.

“We’re investing in fantastic projects like Victoria Park, Brisbane Metro and our green bridges to help make Brisbane even better.

“Precincts like South Bank and Howard Smith Wharves are world-class destinations while our suburbs are great places to live, work and relax.

“With the Brisbane 2032 Olympic and Paralympic Games on the horizon, our city will grow rapidly as a destination for tourism and events.

“Brisbane’s unique alfresco offering, thriving business community, and most importantly, its friendly people, are what makes the destination so appealing to visitors, both domestic and international.

“The city’s latest visitation figures show domestic tourism has experienced significant growth post-pandemic, with hotel occupancy up almost 20 per cent compared to 2021.”

Brisbane Lord Mayor Adrian Schrinner said Time’s recognition of Brisbane was welcome but not a moment too soon.

“While this is a fantastic accolade for our city, it’s also about time,” Cr Schrinner said. “Our residents already know Brisbane is the best place in the world to live and just keeps getting better.

“It’s no accident that Brisbane is the fastest growing capital city in the country with people from southern states recognising that our city’s incredible climate, lifestyle and liveability is second to none.

“Time magazine’s acknowledgement is another example of the world recognising that Brisbane just keeps getting better.”

Queensland’s capital city is being celebrated for its enviable sunny and outdoor lifestyle, thriving arts and culture scene, jampacked calendar of major events, boutique shopping and luxury accommodation.

Anthony Ryan, CEO of Brisbane Economic Development Agency (BEDA), said it’s no surprise that Brisbane is taking its rightful place as a global ‘must visit’ destination.

“There’s an infectious momentum behind Brisbane at the moment, creating a city alive with opportunity in every way,” Mr Ryan said.

The magazine’s annual travel guide, curated from TIME’s editor and travel industry experts from around the world, lists 50 destinations, including countries, cities, towns, and national parks, that are offering visitors an extraordinary experience unlike any other.

All images courtesy of Visit Brisbane

Queensland flying high again

Korean Air will schedule five flights a week from Seoul to Brisbane beginning in April, with Queensland tourism to gain $120 million for the local economy each year as a result.

The five flights a week will land 89,000 passengers into Brisbane annually and will support 1230 jobs in the State.

Korean Air is also one of the world’s largest cargo carriers and their regular service is great news for Queensland’s export industries.

Ryan Both, executive general manager of aviation, Brisbane Airport Corporation, said the latest deal signed under Queensland’s Attracting Aviation Investment Fund (AAIF) was “great news for Queensland” and a huge boost for trade and tourism.

“We have one of Australia’s largest Korean communities who will now have a direct connection with families. And South Korean tourists and students love coming to Queensland,” Mr Both said. “South Korea is our third largest trading market and a major technology partner in Queensland’s new energy economy. This year will mark 30 years since Korean Air first started flying to Brisbane.”

has secured over 1.1 billion inbound seats and up to $960 million in overnight visitor spending since launching 12 months ago.

Mr Both said that during December and January, international travel at Brisbane Airport had grown to 61 percent of pre-COVID levels, from just two percent a year earlier, and signs were promising despite a continuing shortage of aircraft and flight crew.

The new San Francisco to Brisbane route, which was launched by United Airlines last October, was the AAIF’s first deal for Queensland. It has already flown 10,000 people into the Sunshine State while return flights across the Pacific have generated millions of export dollars for local companies by carrying hundreds of tonnes of Queensland beef, seafood, automotive parts, and cosmetics.

Queensland tourism minister Stirling Hinchliffe said his government had partnered with Queensland’s international airports on their $200 million post-COVID war chest.

“Securing international services is one part of a much bigger picture which also includes Tourism and Events Queensland’s ongoing promotion of Queensland destinations overseas,” he said.

“We’re seeing encouraging green shoots of recovery in overseas visitor numbers, but there’s more work to do on rebuilding airline capacity and Queensland’s $6 billion international tourism industry.”

Stephen Beckett, Brisbane Airport Corporation’s Head of Public Affairs, said across December and January, more than three million people passed through Brisbane’s Domestic and International terminals, more than double the number for the same period last year.

“This festive period delivered more than $3 billion to Queensland tourism operators and the state’s visitor economy,” he said.

“When Brisbane Airport is busy, Queensland is busy.”

Philippine Airlines is also making five flights a week between Brisbane and Manila, while Taiwanese carrier EVA Air is flying four times a week between Brisbane and Taipei.

Virgin Australia has also announced that its fares are now on sale for direct flights to Cairns from Tokyo-Haneda Airport.

Virgin Australia’s year-round, daily services from Tokyo-Haneda take off from June 28, and are predicted to deliver more than 30,000 visitors from Japan into Cairns during the first year of operation.

It’s estimated Virgin Australia’s direct flights to Cairns will generate $69.5 million for Tropical North Queensland’s visitor economy and support 680 Queensland jobs.

The Queensland Government and its four international gateways, Brisbane, Gold Coast, Sunshine Coast and Cairns airports have funded $200 million towards the AAIF, which

All images courtesy of Visit Brisbane

© Markus Mainka, stock.adobe.com

Awards aplenty for The Whitsundays

National and international recognition has rocketed The Whitsundays into the news this month, with several awards won by local accommodation and experience operators.

The Australian Tourism Awards held on Friday, March 17 in Sydney, saw longterm businesses of The Whitsundays, including Ocean Rafting, Magnums Accommodation Airlie Beach, and BIG4 Adventure Whitsunday, all nominated after their gold wins at the Queensland Tourism Awards in November last year.

The winners this year were BIG4 Adventure Whitsunday Resort taking gold in the Caravan and Holiday Parks category, Ocean Rafting with silver in the Adventure Tourism category and Magnums Accommodation Airlie Beach winning bronze in the 3-3.5 Star Accommodation category.

And, internationally, Club Wyndham Airlie Beach was awarded Best Interior Design for its $3 million presidential apartments refurbishment project at the GNEX Vacation Industry Awards earlier this month.

At the northern end of The Whitsundays, Queens Beach Tourist Village in Bowen was awarded Best Grey Nomad Large Caravan Park at February’s Grey Nomad Awards. The win accentuates the love Bowen has for the Grey Nomads and the large part they play in Bowen’s tourism year.

Tourism Whitsundays CEO, Rick Hamilton, thrilled with the wins, stated it’s no surprise to see exceptional Whitsundays experiences acknowledged after a year of record expenditure and visitation.

“Everything about The Whitsundays is outstanding, our icons, our people and our experiences from Airlie Beach and the islands, Bowen in the north to Collinsville and Proserpine in the west. These awards are a testament to just

how outstanding our region really is.

“Congratulations to all the winners, what an incredible achievement for your businesses but also for us all in The Whitsundays,” Mr Hamilton said.

Tourism Whitsundays Chair, Julie Telford said the tourism industry in The Whitsundays offers exceptional experiences to a wide range of travellers, and these awards really highlight this.

“Visitors to The Whitsundays can be young backpackers on their first east coast road trip, seasonal ‘Grey Nomads’ on their tenth visit, or families seeking to bond together for a once-in-a-lifetime adventure. The Whitsundays is an incredible destination that caters to all demographics. Our region should be very proud of how passionate and hardworking our high-quality operators are.”

“Everyone working in customer-facing jobs has exceptional service that shines through to our visitors to our Whitsundays. “A huge congratulations to the winners and thank you to everyone who is sharing their passion for The Whitsundays with our visitors,” said Ms Telford.

Destination Gold Coast’s International Women’s Day luncheon

500 industry leaders and tourism peers came together at the Gold Coast Convention and Exhibition Centre to celebrate International Women’s Day on March 8.

The Gold Coast community united to celebrate the significant social, economic, and cultural contributions of women in tourism and other key industries.

Destination Gold Coast’s Head of Stakeholders and Strategy Rachel Hancock said the organisation was delighted by the city’s support of the event, only in its second year. She said: “It was a day to recognise and celebrate the extraordinary contribution of women throughout our community, we heard from

some of Australia’s most inspiring leaders including powerful female CEOs, a quadriplegic medical hero, and a local sustainability warrior.”

Hosted by Seven Network Presenter Liz Cantor, the luncheon served as a timely reminder that everyone everywhere can step forward, drive gender parity, and truly embrace equity.

A series of thought-provoking and inspirational conversations saw the event culminate with a panel including Brisbane 2032 Olympic and Paralympic Games Organising Committee CEO, Cindy Hook, Tourism and Events Queensland CEO Patricia O’Callaghan, 2022 Queensland Tourism Awards Young Achiever Amy Gash, and 2021 Queensland Australian of the Year and Disability Advocate, Doctor Dinesh Palipana OAM.

ResortBrokers Lunch and Learn Series

The first inaugural Lunch and Learn Series of the year was held at The Reef Hotel in Noosa Heads. The gathering saw the participation of a diverse group of operators and professionals from the industry.

The series addressed various topics, such as an update on the Sunshine Coast market by Chenoa Daniel from ResortBrokers, the impact of interest rates on purchasing power by Mike Phipps, and the hot topic of unit de-coupling presented by Trent Pevy from

Pevy Lawyers, along with a presentation by Tony Rossiter from Holmans Accounting.

The event was proudly sponsored by Mike Phipps Finance, Pevy Lawyers, and Holmans Accountants.

Attendees enjoyed a few beers during the afternoon.

The subsequent Lunch and Learn Series event is scheduled to be held in Mooloolaba or Maroochydore in May 2023.

For further details or to sponsor any of these events, please contact Chenoa Daniel at chenoa@resortbrokers.com.au.

What about Women In?

In March the Gold Coast luncheon was held in Broadbeach and hosted by Alison Sun from Accom Valuers. It was great to get an insight about Accom Valuers and what they do, whilst sharing knowledge. There was a lucky door prize and a great day had overall. It had been a while, so it was wonderful to see the connections spark up again.

2023 ARAMA INDUSTRY EVENTS CALENDAR

Accommodation industry golf day

Wow, the club had another great day of golf at the Hope Island Resort course on Thursday March 9.

The weather was perfect, and the golf course was in immaculate condition and everyone was keen to get started. Tracey, Bruce, and Andrew manned the registration desk and welcomed each player by giving them a gift bag which contained golf balls and other goodies. Before golf players gathered around the putting green to hear details of the Irish Rules Golf Day. The rules (a bit complicated to explain here) were designed to ensure a fun team event for the four player team. Every player then received a lunch and drink voucher prior to hit off.

Play commenced with the main rule being that everyone in the team event had to contribute at some time to the score.

The fun event proved very popular with many stories coming out later of the misfortunes and the great golf shots. After golf, players relaxed in the club’s lounge before having a complimentary “build a burger” meal.

President Mike made a humorous presentation

to the winners of the giant raffle, business card draws and nearest the pins etc. He individually thanked the sponsors for their generous support which allows the players to enjoy golf at top courses for a reduced price, plus receive great prizes and giveaways.

Winners of the day were:

1st Placed Team: David Manson; Aaron Manson; Phil Trimble and Chris Locking

2nd Placed Team: Mike O’Farrell; Sue O’Farrell, John Christopher and Ryan Cameron

The club’s next great golfing event will be on the Sunshine Coast, Friday June 16 at the Maroochy River Golf Club.

This will be another special team event starting at 12.00 noon.

The Sunshine Coast venue will offer a new experience for the Gold Coast, Brisbane and Sunshine Coast players.

We are really looking forward to this one! Full details of this day will follow shortly by email.

Please contact our Golf Coordinator Tracey Taylor taylor77@bigpond.net.au to register your interest.

Thank you to all of our sponsors.

First of its kind Gold Coast hotel given green light

A development application has been approved for a new Palm Beach landmark. The code-compliant development application for a striking new $120 million project has been approved, comprising 126 rooms across six storeys, with state-of-the-art amenities, including a rooftop pool, gym, spa, and in-house dining.

Earmarked for a site at 1081-1089 Gold Coast Highway in Palm Beach, the hotel is set to deliver over 2000 sqm of architectural elegance to a beachside position.

With the Southern Gold Coast currently undergoing a resurgence, the location of Palm Beach Hotel is surrounded by the best of what the coast has to offer, with a vibrant dining and shopping scene and a mix of trendy cafes and restaurants all within walking distance to white sandy beaches.

Now that travel is back to normal and stimulating tourism, Palm Beach Hotel will also help meet the need for more accessible offerings in the Southern Gold Coast for domestic and international travellers.

From the team engaged to deliver the project, Danny Juric from Plus Architecture said: “Being such a significant project, our team took a considered approach to create

a standout development in an increasingly discerning market.”

The Palm Beach market has achieved exceptional price growth, positioning itself as one of the Gold Coast’s hottest beachfront suburbs.

The plans laid for the architecture and amenities in Palm Beach Hotel certainly follow the visionary ethos of designing and delivering high-quality projects.

One of the parties is Gold Coast-based luxury property group, Steer Developments, headed by Robert Steer who said: “We wanted to create a space that makes our guests feel something special.

“It’s about the entire experience. A perfect blend of beauty, luxury, and premium quality with a calm, lush, and peaceful serenity. We have always appreciated the Gold Coast’s lifestyle and are excited to contribute to its beauty and make an everlasting impact on the southern Gold Coast.

“While the northern end of the Gold Coast is flooded with hotels, the southern end is ripe for a luxury offering.

Along with Mondrian set to open in Burleigh, the timing is perfect for an additional prestige hotel at Palm Beach.”

Palm Beach Hotel will be delivered in one stage, with construction set to commence in Q4 2023 and completion estimated for Q1 2025.

Artist renderings of the new Palm Beach landmark. All images supplied.

Mooloolaba’s iconic 5-Star management rights sold

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

MANAGEMENT RIGHTS

The confidential sale of the highly acclaimed and award-winning 5-star resort, Breeze Mooloolaba, located in the Sunshine Coast was brokered by Chenoa Daniel and Glenn Millar of ResortBrokers.

Chenoa Daniel expressed her gratitude in representing such a magnificent property, stating that it was an honour to work with such a beautiful asset. She added that this transaction is a testament to the Sunshine Coast’s enduring appeal for premium properties. ResortBrokers would like to extend their congratulations to both the buyers and the vendor.

Brisbane

Peninsula Apartments Crows Ash Holdings P/L Kangaroo Point RB

Grange MR Portfolio First International Group P/L Kangaroo Point RB

Sunshine Coast / Wide Bay / Fraser Coast

Breeze Mooloolaba Seabreeze Resorts P/L Mooloolaba RB

Gympie Pines Fairway Villas John & Jo Bolger Gympie RB

North Queensland

The York Ed Backer Yorkeys Knob MRS

New South Wales

Nelson Bay Breeze Apartments Shahzad Irani Salamander Bay RB

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Cricket star on good wicket at The Pandanus Palms Resort

By Grantlee Kieza, Industry Reporter

Wayne Broad was a champion cricketer who had a decade-long career with the Queensland team during a golden age for the sport.

A batsman and medium-pace bowler, he also played for Wynnum-Manly in Brisbane Grade Cricket and held the record for the most runs scored for the club until his son, Ryan, another star Queensland player, surpassed his tally in 2015. Wayne’s wife Gayle is also from a famous cricketing family; her brother Mark Gaskell and father Brian being prominent in the game. Now 67, Wayne was part of a mighty Queensland team in the early 80s that included Test players Greg Chappell,

Kepler Wessels, Martin Kent, Allan Border, Greg Ritchie, Ray Phillips, Trevor Hohns, Jeff Thomson, Geoff Dymock, Carl Rackemann and Phil Carlson.

Wayne even has a sports ground in the Brisbane suburb of Tingalpa named in his honour.

Now he and Gayle have the runs on the board managing the picture-postcard Pandanus Palms Holiday Resort at Point Lookout on North Stradbroke Island. They’ve developed great relationships with their owners, and particularly the chair of the

body corporate, which Wayne says is crucial to success in the management rights industry.

The Pandanus Palms Resort features spacious villas with balconies offering views across Moreton Island and the Coral Sea.

All the villas feature fully equipped kitchens with dishwashers and ovens, laundries with dryers, ceiling fans in each room, and a barbeque. From June to October, migrating humpback whales are often in the area putting on a spectacular show. Marvellous bushwalks are on all year round and you can cool off in the resort’s pool.

It’s a glorious spot, and Wayne and Gayle moved to Pandanus Palms in February last year, though they have owned the business since October 2021.

“Gayle and I have always lived around Wynnum on

the mainland, and we’ve holidayed over on Stradbroke for many years, ever since our kids were really small,” Wayne told Resort News

Wayne’s parents had a pineapple farm at Closeburn near Samford in Brisbane’s rural west when he was small, but they moved across to Brisbane’s bayside and that became Wayne’s home for most of his life.

“I played cricket for Queensland in the old days when there was no money involved,” Wayne said.

“I became a regular in the Queensland team after Kerry Packer lured a lot of the Test

players away to World Series Cricket, but it became tougher to get a spot when they all returned to the state competition a couple of years later.”

He is being very modest about his sporting success. The Queensland team of 1981, where he batted at No. 6, was composed almost entirely of players who were also in the Australian side.

“I stayed in the sporting fields after my cricket career ended,” Wayne said.

“For quite a number of years, I was running my own businesses, building tennis

courts and developing sports paints and things like that.

“Then I moved in with another company called A1 Rubber, a recycling company. We collected rubber and turned it into matting for playgrounds. It was quite a small business when I started there, but I became managing director with 60 staff and turnover of over $26 million a year.”

Then Wayne hit 65, going on 66, and decided on a sea change, a relocation from the office and factory to the great salty breezes of South East’s Queensland spectacular island frontier. Wayne said playing state cricket and working in his businesses involved a lot of travel. Looking at different accommodation types planted the seed for running his own resort close to where he’d grown up.

“I thought managing a resort in a picturesque location would be a great lifestyle business,” he said.

“In my previous job at the rubber company I was in the office and a factory environment a lot, and I started really liking the prospect of a job with a great view of the ocean and the opportunity of working outdoors.

“Gayle still has her own business, running a ladies’ boutique at Wynnum, called Smooche Boutique. In fact, she has opened up a small clothing outlet at the resort to offer options to our guests and locals of Straddie.

“I started researching management rights about five years ago and I was convinced that running a resort would really suit us.”

He undertook a couple of management rights courses with ARAMA and knew he was on a good wicket. P44

Wayne & Gayle Broad, managers of Pandanus Palms Resort

P43

“Management rights looked like a good business with a great rate of return and the sort of work that appealed to me,” Wayne said.

“If I was going to get into the business I said I always wanted to have a place on Stradbroke Island mainly because of the great return business here. We have a very high percentage of people coming back, year after year and I understand that because my family has been coming here forever.”

But Wayne warns anyone who thinks management rights is a holiday for the operators to think again.

“You have to work hard at the business to make it a success and make sure you are on good terms with the owners and the body corporate from the outset,” Wayne said.

“There are 36 units here and we manage 24 to 27, it varies during holiday peak seasons.

“It’s a beautiful spot and it’s not far from the Brisbane mainland, which is attractive for a lot

of holidaymakers. When we decided to do this Gayle and I were doing a lot of walks along the Wynnum waterfront and we’d see the sun coming up over Point Lookout on Stradbroke.

“It was just stunning.

“For a lot of people catching the ferry over here makes for a much more enjoyable holiday than battling the highway up to Noosa and then fighting the peak hour traffic coming back.”

Wayne reflects that their introduction to running the Pandanus Palms Resort was

made easier by the strong relationship they had forged with the previous owners. He said: “By the time the contract was signed to take over here, we weren’t quite ready to move. I hadn’t finished with the job I was in, so we were lucky that the managers we bought Pandanus from stayed around for four months afterwards and ran the resort for us over the Christmas holidays as relief managers. They stayed until February 2022, and it was a great way for us to start in the business because we gradually eased into it, learning slowly as we went along before taking over full-time.

“It was a luxury for us to have so much help from the previous owners, not every new manager is as fortunate, but we highly recommend seeking out experienced management rights industry professionals to help guide and support you through the purchase process and transition into the business. We believe we made our best decisions after joining with ARAMA and connecting with experienced industry specialists.”

Wayne reveals he contacted Mike Phipps Finance about 12 months before he even made the decision to buy.

He said: “We wanted to talk about management rights and Mike was very generous with his time. We found him to be passionate about the sector, forthcoming and insightful, so when we made the decision to purchase, we engaged the services of Mike Phipps finance and Paul Grant ensured the finance process was seamless. Recently we contacted Paul with some questions and once again he was very happy to help.”

Wayne and Gayle met Trent Pevy from Pevy Lawyers, at an ARAMA seminar where he was a speaker.

Wayne said: “We were impressed by Trent’s knowledge but most of all his enthusiasm for the industry, he also has a strong working relationship with our broker, which made for a smoother purchasing process. We found Trent to be a very good communicator with a depth of MLR experience.”

Wayne and Gayle were using their own regular accountant when they were impressed by Holmans Accountancy who were acting on behalf of the seller of Pandanus Palms.

Wayne said: “Initially we only engaged Holmans as an auditor, but we quickly realised their connections and expertise in management rights would be invaluable to us and now we’ve engaged them for all our business.

“We are very happy we made the decision to use industry professionals, because together their skills and expertise made the contract process much easier than it might have been if we had gone outside that network.”

Because of Wayne’s long involvement in tennis court construction, he has totally renovated his resort’s court and is gradually making other improvements to the property.

“I think it’s important that when a new manager comes into a property they don’t try to put all their ideas for renovations into place right away because it can be very expensive and take up all their time,” he said.

“Take your time improving the business and be prepared to work hard and give good service to the owners and guests. The rewards are there if you do.”