Resort News - December 2023 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 328 | December 2023 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Madison Lee

Shooting to the top as young gun of management rights

Riviere on Golden Beach Riviere shines on Golden Beach

profiles • spotlights • special report • body corporate matters management • industry news • legal • finance and accounting

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We would like to offer our best wishes to everyone for a great Christmas and Happy New Year! Contact: Mobile: Email:

Calvin Bailey LREA 0414 889 593 calvin@cbmr.com.au

Postal Address: PO Box 266 Palm Cove, QLD, 4879

Contact: Mobile: Email:

Alex Barker-Re LREA 0414 835 128 alex@cbmr.com.au

Australian Resident Accommodation Managers’ Association Member

www.calvinbaileymanagementrights.com.au All information/figures are supplied by the vendors and are subject to check by intending purchasers

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INSIDE

The legal stuff...

December 2023 - Issue 328

12 Person of Interest

Advertising Conditions

10 BCCM Report

20 Special Report

Front Desk 05

Tourism

Editor’s Note: December delights – Past present and future

Industry 06

ARAMA Report

State Report

10 12

Niche Travel

Tourism Report

Events & Appointments 30

ResortBrokers Management Rights Report 2023 launch

BCCM Report

Accommodation Industry Christmas Golf Day

Person Of Interest: Madison Lee

2023 ABMA Information Breakfast

Management

Farewell to Stephen William Burton

Legal Ease

What about Women In?

By All Accounts

Property

Motel Market

New Manager Profiles

Special Report: A little preparation helps weather the storm

AccomProperties Sales Report

Thinking MR

Good Governance

Building Relationships

Preferred Supplier Directory

Software Solutions

Profile 38

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

Riviere Golden Beach: Riviere shines on Golden Beach

The Preferred Supplier Directory

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

Disclaimer Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein. Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law. Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties.

KEY

22 Thinking MR

34 New Manager Profiles

EDITOR

SUBSCRIPTIONS

CONTRIBUTING THIS ISSUE...

Mandy Clarke editor@accomnews.com.au

Gavin Bill

Andrew Morgan, Ben Ashworth, Col Myers, Commissioner BCCM, Frank Higginson, Kelley Rigby, Lynda Kypriadakis, Mike Phipps, Nikita Johnston, Steven West and Trevor Rawnsley

ADVERTISING

Stewart Shimmin advertising@accomnews.com.au

30 Events

December 2023

subscriptions@multimediapublishing.com.au INDUSTRY REPORTERS Grantlee Kieza PRODUCTION Richard McGill

Commercially funded supplier profile or supplier case study Supplier information or content Suppliers share their views in one-off, topical pieces General editorial. Case studies and features may cite or quote suppliers, please be aware that we have a strict ‘no commercial content’ guideline for all magazine editorial, so this is not part of any commercially funded advertorial but may be included as relevant opinion. Happy reading!

EDITOR’S NOTE

December delights: Past present and future! Season’s greetings and a warm welcome to the December edition of Resort News! November, with its end-ofyear preparations and festive staff celebrations, proved to be just as eventful as October. The month culminated in the PRET Awards 2023, which was bigger than ever. Resort News was a proud sponsor and presented the 5 Star Property Managers Awards. Stay tuned for full coverage of this exciting event in our next issue. I’m about to embark on a few months in New Zealand, to Oamaru, a historic and artsy coastal town in the South Island. There, I’ll be spending Christmas and enjoying some much-needed R&R. I find delight in people-watching as its wonderfully quirky locals dress up for the Victorian festival. I

29, she is making an impact on the management rights industry and represents the future of our wonderful sector. Enjoy her inspiring story.

Now, let’s return to the pages of this edition. On page 6 you will find an intriguing report from Trevor Rawnsley, CEO of ARAMA. He highlights how the presence of a resident manager in a scheme can lead to a reduction in crime, something important for all properties. Mandy Clarke, Editor editor@accomnews.com.au

embrace the Steampunk vibe and love the live jazz music at its wineries, breweries, and the local pub - Fat Sallys - yes, it is named after it’s owner! All of this before I dive back into the whirlwind of magazine deadlines for 2024. If you’ve never been, Oamaru is a must-visit spot, located north of Dunedin on the way to Christchurch. Don’t miss the chance to explore the historic part of town – it’s a highlight, along with the cute penguins.

On page 38, we feature Riviere on Golden Beach and gain insights into the experiences of its enthusiastic managers, David and Bec Hodges. They share their rewarding journey of managing the Sunshine Coast resort for the past 17 months.

Taking a step back in time, I recently found myself perusing the history of the management rights industry. While exploring some of the early editions of Resort News from our office library in Noosaville, I stumbled upon the writings of industry legend, Russell Leary. One of his columns from 1996 made interesting reading. It was a nostalgic journey that led to the present day, and with Resort News reconnecting with the Leary legacy. Russell’s stepdaughter, the remarkable Madison Lee is in the spotlight on page 12. At the age of just

Remember to “pull out” your handy Resort News Calendar for 2024. And finally, take note of the valuable Tips for Buying Motels in 2023, courtesy of Andrew Morgan. Without further ado, enjoy the final issue of Resort News for 2023. Warm wishes for a joyful Christmas and a prosperous New Year. See you in 2024! Warm regards, Mandy.

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FRONT DESK

December 2023

ARAMA REPORT

How resident managers help reduce crime seeking somewhere safe for many different reasons, single parents, retirees who do not feel the need to go into a retirement home, older single women who want to feel safe, and young women who don’t want to house share, but are too scared to live by themselves. All these people form part of a safe community protected by the onsite manager. Maree points to crime data maps in the Griffin area where complexes with onsite managers have less than 10 percent of the incidents of crime compared with properties that don’t have a resident manager. Some of the properties she manages have no incidents of crime at all.

By Trevor Rawnsley, CEO, ARAMA

Crime and violence are escalating across the wider community, but week after week managers who operate onsite are preventing it in their strata schemes. The nature of onsite management means that there is always someone at the property who can respond quickly and can look out for the interests of residents. Many onsite managers are residents too, and they want to be surrounded by a safe and secure environment as well.

Generally, crime statistics are lower in properties that have resident managers than properties that don’t. Reports of domestic violence in managed properties are lower too. Resident managers know their property inside out. They know their residents and look out for them, and they also know immediately if someone does

December 2023

If any resident notices suspicious behaviour, or visitors to a building who look out of place, they let the manager know. And the manager acts.

A recent crime survey showed some strata schemes with a resident manager can claim a reduction of 90 percent of incidents of crime on their property compared with the rate for other properties in their area without onsite managers.

Ian and Maree have all the latest security cameras and technology but even complexes with no CCTV can take advantage of old-fashioned eyes on the ground which the resident manager provides.

not belong in that complex. The resident manager is a great safeguard against domestic violence simply by having a presence at a property. That is often enough to make an aggressive person de-escalate. It is reassuring for all residents to know they have someone whose door they can knock on if they are in distress, and someone they can call on for assistance. They might not get that in a property without a resident manager.

Maree and Ian Smith, who manage 230 townhouses in the Moreton Bay area north of Brisbane, were attracted to the business of management rights largely because it offered safety for its community of residents including their children. Maree and Ian provide safe accommodation for young people moving out of home for the first time, parents who rent properties for their children studying at university from regional towns, women

INDUSTRY

Maree and Ian also use simple tools such as Facebook to make sure nothing untoward happens in their schemes. As resident managers, they are on the spot. They once had trespassers come into the pool area for a swim. One young bloke and his girlfriend stole a hose nozzle and some hand soap. Maree had the photos from the CCTV cameras and put them up on the scheme’s Facebook page asking if anyone recognised them and to let her and Ian know if they ever came back. It was only a few days later that a resident called Maree at 7.30 a.m. to say the guy in the photo was back at the pool with his mates having drinks. Maree walked over and said “Thanks for driving into the complex mate. You’re

trespassing and I’ve now got your rego on camera. Get going or we’ll call the police.” That’s all it took. A resident manager doesn’t have to be threatening or aggressive. Just on the spot and that’s almost always the biggest deterrent to crime in a strata scheme. Complexes that don’t have an onsite manager are open to those kinds of unwanted visitors all the time. These days, kids have been known to hunt in packs, kicking doors in, but most of the youth crime is opportunistic. If they are confronted and know that there’s a manager onsite ready to call the police, it’s usually enough to send them on their way. Ian and Maree send out emails to residents constantly to say that “this is your complex as much as everyone else’s. Please respect it. Don’t park on the lawns or the gardens. If you see someone suspicious, please let us know straight away because this is your community, and we are here to keep an eye out for you.” By being a constant presence at a complex a resident manager helps to ensure that everyone within a strata scheme also respects the bylaws and appreciates the property being maintained in a good condition. Kelley Rigby is a tenant in a community title scheme which is managed by a resident manager. Kelley sees the safety benefits of having a resident manager every day. Kelley’s husband is a FIFO (fly in-fly out) worker, and she is the mother of two small children and a stepmum to three teenage girls. The family currently rents in a managed complex on the Gold Coast. Out of almost 100

townhouses in her complex, she knows of 10 single mums (one who is a domestic violence survivor) who have openly admitted they chose to live in a managed complex for safety. For women who are often alone or looking after children by themselves, there is a definite sense of security at having a manager onsite tasked with looking after the properties and the residents. One Sunday afternoon, Kelley received a message from her onsite manager warning that there was an intoxicated man roaming around the complex and telling all the residents to stay inside until the police arrived. If the manager hadn’t sent that text, Kelley would have allowed the older girls to take the small children out on their bikes as they normally would and potentially into the path of danger. When Kelley was pregnant with her second baby, she wandered out of the house to put some rubbish in an outside bin. A gust of wind slammed her front door shut and it was locked. Her two-year-old was inside on his own. She ran down to the manager’s office, and he had Kelley back in her house within minutes. Kelley’s son is an adventurous little boy, and they live in a three-story townhouse. She hates to think what could have happened if there hadn’t been a manager onsite.

Resident managers know which cars belong on the property and all the spots in a building that thieves might target. When Chris Podmore, ARAMA’s Manager of Member Services, was managing buildings, he had a lot of tradies parking above ground because their vehicles couldn’t fit in the carpark. There were always people walking past on the street trying to pinch their tools, but Chris, being a diligent onsite manager, knew this and the areas they might come through, and was prepared to make sure it didn’t happen. He would also tell his night security officer the areas of buildings to patrol most carefully and invariably they would stop trouble before it started. ARAMA national president Guy Elliott and his partner Kathryn manage Sailfish Point, a complex of 99 townhouses at Mermaid Waters on the Gold Coast. Youth crime is a big problem on the coast, but the fact their complex is a gated community with resident managers provides everyone living there with real peace of mind.

Once, Guy was arriving home from a Broncos game at 11 o’clock at night when he saw an intruder in a hoodie break the window of a car inside the complex. He called the police and followed the intruder via security cameras. It just so happened that the police had a dog squad car nearby, and as the intruder came out of the complex Guy was on the phone to the police saying “Yeah, that’s him.” The intruder met the long arm and sharp teeth of the law because Guy was on the spot protecting residents. Without a resident manager that intruder would most likely have gotten away to strike again. Resident managers have skin in the game – they have a vested interest in protecting their hard-earned investment and livelihood. They become the eyes and ears of their strata community, reducing crime, being a reassuring presence for domestic violence survivors and making their community safer and happier.

The security that onsite managers provide can be as simple as stopping unwelcome guests using the pool or parking spaces in a complex, but it’s reassuring for residents to know that there is someone always looking out for their interests no matter what the problem.

SMALL MYERS HUGHES LAW • BUSINESS • RELATIONSHIPS

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

Management Rights Specialists QLD-NSW-VIC-WA BUYERS - SELLERS - DEVELOPERS Our team of legal experts, led by Col Myers, has over 30 years’ experience in this area and will get you the best possible outcome. Tel: +61 (0)7 5552 6666 M: +61 (0)417 620 516 E: cmyers@smh.net.au W: www.smh.net.au

For membership enquiries:

national@arama.com.au | www.arama.com.au 1300 ARAMA Q (1300 27 26 27)

INDUSTRY

December 2023

STATE REPORT

Cancellations: Who gets paid?

What should you charge?

The later a booking is cancelled the greater the lost opportunity By Ben Ashworth, Senior Associate, Small Myers Hughes Lawyers

In a post-COVID world there appears to be far more inconsistency in the industry when it comes to short-term operators charging cancellation fees.

After a few years of significant pressure to not charge any cancellation fees and entice guests to book risk-free, the tide has been turning. Whether you charge a cancellation fee or not, what hasn’t changed over the years is the number of letting appointments we see that don’t adequately address who

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gets to keep the cancellation fee paid by the guests. Typically, a cancellation fee paid by guests is intended to offset a lost opportunity for the lot owner and/or recover the costs incurred by the manager in managing the booking prior to cancellation. Generally, the later a booking is cancelled the greater the lost opportunity and therefore impact on the lot owner. If your letting appointment does not include any mention of a cancellation fee, the presumption is that any cancellation fee you charge guests belongs to the lot owner. As an agent for the lot owner, all income you collect relating solely to a booking belongs to the owner unless the owner has authorised you to deduct an agreed fee or expense. It is not recommended that you assume you can charge your normal commission rate on any cancellation fee you collect. If your letting appointment is worded in a way that only allows you to charge a commission when a stay has occurred, a cancelled booking never results in a stay and therefore you can’t charge your commission. Ideally, your letting appointment should expressly state that you can charge a cancellation fee to guests and that when a cancelation fee is paid you are entitled to a share of it. There should be no doubt or confusion about why you are keeping this money or how much you are allowed to keep.

INDUSTRY

A common amount charged by managers is a base fee, for example, $50, with any extra collected above that passed onto the owners. In this case, the manager is reimbursed a fixed amount for their admin time with the rest going to the owner. Another common model is sharing equally any cancellation fee collected. This accommodates the fact that both the owner and the manager are losing an income opportunity when a cancellation occurs. A combination of both the above is also a good fit for many managers, ensuring that your admin costs are covered first, while also gaining a chance to share in lost profit potential with the owner. Whatever amount you charge owners it is important that it is stated clearly in your letting appointment. Remember that the cancellation fee you have charged guests is not your money and is only money you hold on trust for the lot owners. The only cancellation fee you get to keep is the amount you charge owners for the service you have provided for the owner, as set out in your letting appointment. Also, managers should be aware that unauthorised cancellation fees are not considered a sustainable income stream and won’t contribute to the value of their business. If you have any doubts about whether you can or can’t keep a cancellation fee, I strongly recommend you speak to your lawyer and have your letting appointments reviewed. For managers thinking of charging a cancellation fee in the future, being up-front and speaking to owners about how much you should charge is a far less awkward conversation than trying to argue why you don’t have to refund any unauthorised fees you have charged in the past.

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BCCM REPORT

Demystifying insurance excess By the Office of the Commissioner for Body Corporate and Community Management

We will try and clear up the confusion surrounding who is liable for the excess on insurance claims by examining past orders of our adjudicators. It is important to keep in mind that the orders referred to in this article are intended as guidelines only, and not precedents. Each matter before an adjudicator is determined by its individual set of circumstances. We will also explore whether a large excess on an insurance claim can create an “unreasonable burden” on individual owners.

Liability for excess under the body corporate legislation Working through an insurance claim to repair damaged property can be stressful. The pressure can be magnified when an individual owner in a body corporate is asked to pay the excess, especially if the excess is a sizeable amount. While the default position for liability is based on what areas of a community titles scheme are affected, it boils down to what is reasonable in the circumstances.

December 2023

Who pays the excess on an insurance claim is an issue that our adjudicators are often called upon to determine.

The legislation states that if the damage caused by the insurable event affects: Only one lot – the owner should pay the excess unless the body corporate decides it is unreasonable in all the circumstances for them to do so.

The importance of this consideration is demonstrated in the decisions discussed below.

a discretion to be exercised reasonably by the body corporate, taking into account all the relevant circumstances”.

Case example 1: Brighton on Broadwater Dune [2023] BCCM 345

As the body corporate was responsible for maintaining the window, the adjudicator determined that the body corporate should pay the excess and that it was unreasonable not to reimburse the applicant.

Liability for excess – a question of maintenance

Water ingress from a failed window seal caused damage to the applicant’s timber floorboards. The applicant sought reimbursement from the body corporate for the excess they had paid towards an insurance claim. The body corporate submitted that, when considering the question of liability, the committee at the time found no “extenuating circumstances” to warrant the body corporate bearing the excess instead of the owner.

When determining who is liable to pay the excess, one of the key questions should be: who is normally responsible for maintaining the property that caused or contributed to the damage?

The adjudicator remarked that the legislative provision that applies when only one lot is affected “is not one which automatically puts the onus on owners to pay the excess in every situation. There is

Two or more lots, or, one or more lots and common property – the body corporate should pay the excess unless the body corporate decides it is reasonable in all the circumstances for the excess (or a portion of the excess) to be paid by one or more of the affected lots.

INDUSTRY

Case example 2: Suginoko Place [2021] QBCCMCmr 110 The applicant’s lot sustained water damage due to a leaking pipe in the bathroom ceiling void. The applicant submitted that the body corporate should be liable for the insurance excess. As there was no evidence to establish that the body corporate was responsible for the pipe, the adjudicator determined that there was no basis for reversing the applicant’s liability for the excess.

Case example 2: Suginoko Place [2021] QBCCMCmr 110

Case example 3: Soleil 501 Adelaide [2023] QBCCMCmr 29 A flexi-hose in the applicant’s unit burst, causing flooding to eight other lots. The applicant claimed that it was unreasonable for the body corporate to make them liable for the excess, as the body corporate had previously offered to organise repairs to the flexi-hose and failed to follow through. In the applicant’s view, the body corporate’s offer – which was accepted by the applicant – meant that the body corporate had assumed responsibility. The adjudicator dismissed the application and noted the body corporate’s offer “does not alleviate the applicant from its obligations” to maintain its own utility infrastructure in good condition. Case example 4: Northcliffe [2018] QBCCMCmr 178 A pinhole leak in one of the pipes under the applicant’s shower base caused damage to the ceiling of the lot below. The applicant wanted reimbursement from the body corporate for the excess that had already been paid toward the claim. The applicant contended that they “could not reasonably have predicted the leakage from below the shower base.” However, the adjudicator highlighted that “the duty to maintain involves an obligation to keep something in proper order by acts of maintenance before it falls out of condition” and that the owner was not only required to “attend to cases where there is a malfunction but also take preventative measures to ensure that there would not be a malfunction.” As the applicant was responsible for maintaining the leaking pipe that caused the event, the adjudicator determined that it was not objectively unreasonable for the committee to ask the applicant to pay the excess.

Liability for excess – consider all the circumstances Even if the body corporate was not responsible for the property that caused the damage, there may still be circumstances where the body corporate should pay the excess.

An insurance claim can create an unreasonable burden Unreasonable burden: when is an excess too much?

The case example below highlights the body corporate’s obligation to consider all circumstances and act reasonably when considering who was liable to pay the excess. Case example: Focus [2023] QBCCMCmr 132 A faulty main isolating valve in a lot (lot 111) caused a water leak, damaging the applicant’s lot below (lot 107). The committee invoiced the owner of lot 111 for the excess – however, the owner of lot 111 refused to pay. The committee told the applicant that they would need to broach the excess dispute privately with the owner of lot 111. As the repair work could not proceed until the excess was paid, the applicant submitted that the body corporate should pay the excess. As the event affected more than one lot, the body corporate was liable for the excess by default. The adjudicator observed that the body corporate “cannot automatically pass on the excess to affected lot owners.” Rather, the body corporate must consider “the particular circumstances” and “act reasonably in making that decision”. Importantly, the adjudicator observed that although the body corporate had not asked the applicant to pay any of the excess, its actions – in not paying for the excess itself or taking steps to recover the excess from lot 111 – had the same effect. Given this, the adjudicator resolved that the body corporate should pay the excess, remarking that it was “entirely unreasonable for the body corporate to expect the applicant to bear the cost of the excess that it has not recovered, or to expect the applicant to pursue the owner of Lot 111 for the excess, or to expect Lot 107 to be left in a damaged condition for an extended period.”

We will look at a body corporate’s decision to put in place a specific insurance policy. The legislation provides that, when taking out an insurance policy, the excess must not create an unreasonable burden on individual lot owners. Contrary to common misconceptions, this is not simply a question of whether the excess is a burden on an owner - a high amount that would be difficult for an owner to pay. The issue is whether that burden is an unreasonable one. Case example 1: Beach Meet [2018] QBCCMCmr 39 An owner in a duplex (the applicant) was unwilling to accept a commercial insurance policy proposed by the other owner (lot 1) due to its lack of flood cover and the “extremely high” excess. The applicant submitted that cyclones and flooding were serious concerns given the body corporate’s location in far North Queensland. Under the proposed policy, the excess for cyclone cover would increase from $100 under the current policy to $20,000. The applicant sought an order that a different insurance policy with lower excesses be obtained. When considering whether the proposed policy created an unreasonable burden, the adjudicator observed that “exhaustive attempts have been made to secure alternative insurance” and that there was no evidence that “alternative cover is able to be provided by any other insurer (let alone for lower excesses)” since lot 1 started being used for short-term letting. The adjudicator determined that “it would not be just and equitable to make an order that cannot be complied with”.

INDUSTRY

The applicant argued that a $15,000 excess imposed was an unreasonable burden. The adjudicator noted that although the amount was substantial and the applicant may “struggle to pay”, no evidence was provided to show it was “objectively remarkable” or “wildly at odds with what insurers generally offer” similar schemes. Or, that there were “any special circumstances… that would make it illogical, incomprehensible, or otherwise manifestly unreasonable” for the body corporate to choose this policy. The adjudicator further observed that despite their liability for the excess, the applicant would benefit from the policy. Specifically, the adjudicator remarked that the applicant “will still receive a payment toward repairs that would otherwise have been her sole financial responsibility. “In that sense, the excess is not truly a burden at all. It is just a smaller benefit than she would have received if the excess was smaller.” Case examples 3 and 4: Soleil 501 Adelaide [2023] QBCCMCmr 29 and Cianna Gardens [2016] QBCCMCmr 553 In both cases it was accepted that a lower excess for water damage could not be obtained due to the body corporate’s claim history – evidence to the contrary was not provided by either applicant. Both adjudicators determined that the burden of the excess, though perhaps heavy, was not unreasonable.

Conclusion Given the potentially detrimental effect that an insurance excess can have on individuals in a body corporate, it is fundamental to understand the legislative requirements. We hope that the orders examined in this article will provide guidance when considering these questions and help to avoid unnecessary disputes in this area. In situations where an insurance claim was not a viable option to cover the damage, the provision in the legislation about damage to property may be relevant. December 2023

PERSON OF INTEREST

shooting to the top as young gun of management rights By Grantlee Kieza, Industry Reporter

At just 29 the marvellous Madison Lee is already a management rights veteran and is inspiring others in the industry with her dynamic energy at properties including Sovereign on the Gold Coast. She spoke with Grantlee Kieza. You were virtually born into the management rights business? You could say that - it feels like it’s part of my DNA. My stepdad Russell Leary has been heavily involved in management rights on the Gold Coast for over 35 years. Originally a bricklayer in Tasmania and as the story goes, he came to the Gold Coast for a holiday and had a poor experience with a hotel operator, and felt he could do a far better job. Later that year he relocated to the Gold Coast and purchased his first management rights, and the rest is history. Fast forward 35 years he has now owned and operated more than 50 buildings and has applied the same principles throughout each one - ensuring owners, bodies corporate committees, strata managers and the onsite managers were on the same page, working toward a common and united goal. This is really where I was born into the industry, I saw firsthand every aspect of being involved in the management rights business from the initial negotiations right through to the pool and garden maintenance, often having to help when needed with the rest of my siblings. Madison Lee

December 2023

After spending some time outside of the family business

INDUSTRY

I was eager to re-enter the management rights industry, inspired with the reputation Russ had built as being one of the best operators on the Gold Coast. As a family business I felt motivated to carry this on and add to it in my own way. You grew up living in management rights properties? Correct - I remember bouncing from one building to the next. The family would initially live onsite in the manager’s unit to get a feel for the complex and its issues. We would run the building until such time as we found the correct managers to take over. I drive through Broadbeach now and it’s very nostalgic - filled with buildings we lived in. When did you start work in the industry? Age 14 – we had a resort in Currumbin at the time that I would ride my bike to on Sunday morning to help in housecleaning, making beds and cleaning rooms. I’d work a full day for $20, which I’d spend immediately at the local lolly store. At the time I thought I was so rich. During my teen years I was fortunate to help in many capacities around the resorts Russ owned at the time, ranging from basic housekeeping through to front desk and back-end administration. During those earlier years, one of Russ’s business partners at the time (Jenny Fulton) really took me under her wing - she was very passionate about the industry and a hard taskmaster. She taught me a lot about the industry and how to run a building. Fast forward 15 years and it is only now that I realise how privileged I was to learn about management

rights at such a young age from such seasoned managers and owners. It has really paid dividends over the past few years, helping me navigate the running of Sovereign. Why did you step away from the industry for a while? Like a lot of young people, I wanted to make my own way in the world and gain some personal experience before circling back to the family business. I always had a passion for property and travel, so I initially moved to Sydney and worked for a large real estate agency down there. I then caught the travel bug and moved to Aspen where I worked in property and then onto Thailand where I worked in one of the largest international chain of resorts, Club Med. Then COVID hit, and I was forced to relocate back to Australia. You came home and what happened next? I relocated to Noosa because of COVID and decided that it was time for me to put my skills to work in the family business. I initially partnered with Russ on a consolidate project he had in Noosa at the time with a couple of recently purchased buildings and rent rolls. Not too long afterward I decided to move back to the Gold Coast with both Russ and I identifying that it was a far bigger market we could collectively tackle. Together we started searching for our first project with the goal to find a building that was big enough, showed great opportunity but needed a little bit of love. It was daunting at the time taking on a building in the middle of COVID, but we had faith it would be short-term and that it was a good time to buy. That’s when Sovereign came up? Yes – it was exactly the building we were looking for. It was a little run down, there was animosity between existing management and owners and the committee had little trust. Essentially it just needed love, which is what we pride ourselves on. Despite the issues and being up against it, we saw the potential. We agreed to purchase it, took the gamble, and settled in March 2021.

Our mantra going into the building was hard work, knowing that if we didn’t work hard, the gamble wouldn’t pay off, we wouldn’t unite the owners and committee and we certainly wouldn’t get the opportunity to get a top-up to continue managing the building. There was a real possibility that if we didn’t get it right the committee was going to run the agreements out and manage it themselves. When I say we were up against it, we really were. At time of settlement, the neighbouring property had around 70 of Sovereign’s keys and was gaining access through the fire escapes - what a mess! Russ was living in Noosa, and I was on the ground running the building mostly solo. Looking back most people would have struggled to see the opportunity, but I am glad we persevered. It was a great building to cut my teeth on initially, everything that could have gone wrong did. I guess from my perspective, I was brought back down to earth very quickly on how difficult this industry can be and the reminder that a bit of hard work and love can go a long way.

At the same time as you were snowed under with work, you had a personal disaster? My younger sister Alexa fell off her bike training for the Noosa Triathlon going 70km an hour down a hill. She was airlifted from Noosa to Brisbane and initially feared she might not make the trip to the hospital. She was in hospital for over a year, underwent multiple brain surgeries and we were told that there was a chance she would never walk or talk again. It certainly was a difficult and trying time, but I am so grateful that she is here with us today. It taught me to not sweat the small stuff and that you can’t control every situation. Alexa now lives on the Gold Coast and is on track to compete in the Paralympics for swimming. She is one of the most resilient and determined people I know.

Madison Lee with sister and Co-Director Ashtyn Leary

The Reserve in Varsity Lakes

You’ve overseen big changes at Sovereign?

is larger buildings with more than 150 keys but open to all opportunities that come up.

We certainly have. We now have a refreshed and united committee working with us and the owners on improving the building. Our letting pool has increased from 45 to 180. Many of the units have undergone full renovations as owners now have confidence in the building, and we have renewed our agreements to a new 25-year term.

What do you do away from work? It can seem a bit all-consuming at times, therefore I am a big believer in a healthy work-life balance. I have an amazing partner Jesse, who runs a couple of his own businesses in the accountancy and finance industry. It’s great to have someone with a similar work ethic to bounce ideas and problems off.

What advice would you give to management rights buyers? I struggle to give advice because each building will be different. I can only say what has and continues to work for us. We leave the pride and ego at the door and set out to align ourselves with the owners and the committee. There are no right or wrong decisions, opinions, or people. We understand that there will always be differing opinions, big and small personalities, much like my own family dynamic given I have seven siblings. We work out what needs to be done and systematically work through this in terms of priority with a real sense of urgency. Owners want to feel like you share the same passion they do for the building and that you are in their corner fighting to get the best returns for them, not just collecting a clip of their rent.

Sovereign, Gold Coast

While doing all of this, we always prioritise regular and consistent communications with owners – we want to tell them how we are tracking with improvements and wins along the way, while also keeping it personal so they can get to know us and the team.

operators will struggle. For the most part, I think we have great operators and hopefully the management rights community can come together to continue to improve and demonstrate why we are such an integral part of the industry.

Don’t become insular, think about what you would want to see if you were an owner. This perspective always allows me to get outside of my own bubble and keep my priorities aligned. If ever in doubt, I always ask myself the same question; “what is best for the scheme?” This simple question has helped me navigate many decisions.

You’re a director of the Gold Coast Resort Group. What’s that?

What’s the future of management rights? I think great operators will continue to see wins, and poor

Gold Coast Resort Group is the brand we are looking to unite all our Gold Coast buildings under. We have added an additional building to the portfolio (The Reserve in Varsity Lakes) two months ago with several others we are currently in negotiations with. We are actively looking to add to this quite aggressively over the next few years. Our preference

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I have a big family, as there are seven of us. We spend as much time together as we can. I also like to balance my weeks out with staying healthy at the gym and catching up with close friends over coffee at weekends. I’ve heard you’re a great singer too? No, I’m a terrible singer! I’m borderline tone deaf. At the Resly Gala they had a band, which was awesome and a couple of us thought we would get on stage and sing a few songs. I was terrible. I think I hurt everyone’s ears, so I’m sorry about that!

Sovereign, Gold Coast

Together we have a beautiful dog named Ned, he’s a Cavoodle and my first son. He keeps us busy with long walks on the beach and at the park.

INDUSTRY

LEGAL EASE

Strata is a complicated and changing business By Frank Higginson, Partner, Hynes Legal

To that list, I think we can add a third item: legislative change. I have just sat through three years as a member of the Community Title Law Working Group, wearing my ARAMA hat. The Working Group has discussed all manner of legislative change for bodies corporate in Queensland. Some of it has been discussed and discarded. Some of it went around in circles for a few meetings. Other parts were relatively straight forward in concept, as in ‘something needs to be done’. But what does that mean? If additional obligations are created for bodies corporate, how are those then regulated or enforced? How much additional resourcing is needed at the Commissioner’s Office in terms of adjudication and education? And that leaves aside how to disseminate that information into the industry and whether the people who need it most will actually take it up. All things considered, the Working Group has been a terrific learning experience and has culminated in draft legislation dealing with a range of evergreen issues – from pets, to towing cars, through to bodies corporate being able to ban smoking.

December 2023

“Nothing is certain except death and taxes” is often attributed to US founding father Benjamin Franklin all the way back in 1789. At the time of writing, the legislation had just been approved. The by-law issues weren’t controversial, but the ability for a 75 percent vote of a body corporate to terminate a community titles scheme was. It eventually got there, though.

for because everyone expects lawyers to know the law off the top of their heads. Right?

Strata law is complicated enough as it is. Change only adds to the complication.

Strata is riddled with nooks and crannies, especially when an issue might turn on whether it is ‘just and equitable’ or ‘reasonable’. Those are quite subjective concepts and largely turn on their individual facts.

When it comes to strata law, there is an ongoing debate over experience versus a clean set of eyes. That is, just because an issue has repeatedly occurred in the past doesn’t mean the outcome will always be the same. I still recall matters from 20 years ago that were a new interpretation of an existing provision, or an outcome achieved against the prevailing view of industry at the time. Those memories serve wonderfully at presentations and as anecdotes. Everyone loves a war story! But there are times when you cannot help but second-guess yourself, even with all those years of hard-earned experience. You end up trawling through case law and legislation to double check what you think is the position, actually is the position. That soaks up an hour-plus of time that you might not get paid

A clean set of eyes looking at something for the first time without bias is sometimes a good thing. But it is never a quick thing.

The longer I spend as a lawyer the more I tend to get scared if I get dragged off into other areas of law. Even after 30 years in the business, I still learn something new every day in strata. It might be as simple as seeing a mistake made by someone else and wondering how that happened, but it also might be a new slant on an old case that one of our litigators has dug up. It might also be another imbecilic bit of behaviour from someone in strata that plumbs another depth that I thought could not be exceeded. What is absolutely certain, however, is that strata law is getting harder, and things are getting more complex. In a sense, the law around management

MANAGEMENT

rights is fairly stable, but managers also have to deal with the same change in strata laws as I do, and being on the ground can be far more problematic when it comes to change. This new legislation changes the position on quite a few issues, and many people won’t be aware that the rules of the game have altered. We have 25 years-plus of prior experience that is about to be tossed out the window on issues such as smoking. Many thousands of people will be extremely confident of the position of a body corporate with respect to its inability to prohibit smoking based on their lived experience, which is now going to be 100 percent wrong. And those people will run around their communities telling people their views on smoking without checking whether the law has changed. And on we go. Until the next round of changes that affect the residential homes of nearly 1 million people. You can’t ever take anything for granted in this arena—that’s as certain as death and taxes.

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As an accountant in public practice, I’ve had experience working with all sorts of small business owners over the years. Since specialising in the accommodation industry,

And with good reason. Management rights owners have invested hard-earned savings to purchase these businesses which are valued on a net profit figure they need to maintain or improve, in order to sustain their valuable asset for future re-sale. Luck aside, you can only manage what you measure – having a strong grasp of the key performance indicators (KPIs) and profit centres in

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your business can greatly assist you in managing your business’ profit, to maximise your returns and maintain or improve your asset value. Room revenue is a strong indicator of performance, however if you’re focussed solely on room rates, occupancy and increasing gross room revenue for your building, without clarity as to management share of the revenue, average length of stay and other revenue KPIs, you may be missing valuable opportunities to review how your schedule of fees are presented and how costs are managed. The all-important net profit your business generates, whilst certainly a product of the gross room revenue, is absolutely dependent on cost management. For instance, you can theoretically double your revenue and decrease your net profit if you are not managing your labour costs. Knowing your businesses benchmark KPIs or profit margin percentages by department (cleaning, linen, recoverable etc) can greatly assist you in reviewing your performance and identifying problem areas that need more management focus. The financial verification and/ or valuation report you likely paid for when purchasing your business, contains invaluable information you can use to assist you with setting your own personalised benchmarks and can be a good place to start if unsure what you should be setting as a basis for comparison to actual performance figures. Costs, particularly cleaning and linen, have increased significantly in recent times with challenges in the labour market and inflation on the rise.

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

When was the last time you increased your charges to owners? Review your letting appointments and addendums, the standard ARAMA versions

December 2023

MANAGEMENT

have a built-in annual CPI or five percent increase to charges which you are entitled to action each year. If you are changing your fees to owners, even if only actioning authorised annual CPI increases, it is best practice to store on file communication with each owner regarding the change in fees. Further if any changes, it’s worth considering whether there may be value in preparing new agreements with all owners and sending those to be signed electronically by owners to reduce time involved in chasing signed agreements. If using cloud-based property management systems (PMS) you should liaise with your provider before preparing new letting agreements ‘manually’ as many now offer integrations to pre-populate the forms with owner data and with electronic signing solutions which can make a previously tedious process quite painless. Whilst talking time savings, we’d strongly encourage you to save all signed letting appointments and fee schedules to your cloudbased PMS owner accounts to minimise external storage, for ease of access and to avoid having to provide on request to your trust account auditor. Now, more than ever, the systems you use day-to-day facilitate your own review of your figures with ease - online PMS and bookkeeping systems provide you with access to a wealth of data at a click of a button. Knowledge is power, if you are unsure how to easily access information from the systems you are currently using, please reach out to your advisors to show you how to get the information you already have at your fingertips which can help you better manage your business.

BY ALL ACCOUNTS

MOTEL MARKET

Annual motel market wrap up for 2023 businesses that had been sitting on the market for longer than others due to many different reasons, were now starting to gain interest from the market.

It’s that time of the year again where we take a moment to look back on how the motel and accommodation market performed throughout the course of the year. If there is one thing we can say year on year, it is how quickly the year went. I guess if there is a second thing we say, it is that markets of all kinds never stay static, they always ebb and flow. The motel market is generally very well aligned with the motel industry itself. If occupancy and demand for accommodation is strong and motels are trading well, then the number of sale transactions is strong also. So, in summary of 2023, activity in the motel sector has followed suit and continued to show strength throughout the course of the year. Occupancy rates have been good to high, which has flowed on to increased room tariffs, and in many cases, a number of tariff increases throughout the year. As always, some regions have performed better than others in this regard, for many different reasons within the economy. The resources sector has been very active, companies have been expanding and requiring more workers and government spending in many areas and

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

industries has meant increased demand for accommodation across the board. Going back to the end of 2022, we saw a very busy close to the year. The new year seemed to be a little slow to get going, with new contracts taking a bit longer to put together and eventually settle. Strong enquiry levels were still being recorded however hesitancy was lying just under the surface for many. Perhaps interest rate rises were starting to gain traction. At this stage of the year the level of motels available for sale was still quite good, even after a strong close out of 2022, however this would change as the year progressed. As mentioned, enquiry levels were strong with genuine buyers looking for good motel opportunities. The second quarter of the year saw an improvement with increased activity from those enquiries. There was a good level of settlements completing throughout this period albeit with many transactions experiencing delays with finance approvals and various other weird and wonderful issues. Demand for

leaseholds improved during this time with many contracts enjoying ‘back up’ buyers hoping for contracts to fail. Again, following on from 2022, where many were having issues gaining finance for strange reasons, a number of investors were then completing contracts by financing the transactions themselves. Those buyers who were financially marginal are then shut out of the market by those stronger cashed up investors. The majority of businesses gaining buyer interest were freehold in tenure, although leasehold tenure was certainly seeing more demand. Third quarter activity continued to grow with improving enquiry levels across the board. Interest in wanting to make the move to Queensland from the southern states to invest money into a motel, resort or caravan park continued. In similar fashion to this time last year, activity and sales included a wide range of businesses from smaller leases through to large freehold businesses. Leases as low as $200,000 were being sought after as well as larger leases and freehold properties. A number of

MANAGEMENT

The final quarter of 2023 saw a continued strong level of activity. Enquiry levels were good and the businesses mentioned that had been on the market too long, were all of a sudden going under contract. The combination of strong motel business sales completed throughout the year, and businesses remaining tightly held due to strong trading performances, meant the number of available accommodation businesses decreased significantly. Those being sold were simply not being replaced within the market. This has led to a pent up demand with those buyers who were procrastinating, now being unable to find suitable assets to purchase. Similar to the end of 2022, and 2021 for that matter, sale transactions saw more than one investor eager to purchase the same business. Again, demand was not satisfied, and those investors are continuing to look for other accommodation opportunities. Moving on, what will 2024 have in store for the industry? Demand for accommodation businesses looks strong and the solid trading performances of businesses throughout the industry is expected to continue. The accommodation business owners already in the industry are expected to continue to invest. Demand from those within other industries is likely to continue as they move into the accommodation sector more and more. Queensland Tourism and Hospitality Brokers (QTHB) partners and staff have very much appreciated the industry’s support throughout the year and wish all a safe, prosperous and enjoyable 2024 to all within the accommodation industry. December 2023

A little preparation helps weather the storm By Grantlee Kieza, Industry Reporter

Ignorance is never bliss when it comes to storm season. That’s the mantra of Trevor Rawnsley, the CEO of ARAMA (Australian Resident Accommodation Managers Association), in terms of keeping buildings and their occupants safe. Australia is a sunburnt country but also one of flooding rains, bushfires and cyclones. Throw in king tides and even avalanches in the snow country and there’s no place for complacency. Proactive resident managers should be prepared for any emergency, especially in the stormy months of summer in northern Australia.

Just as you’d be prepared for bad guests with a proper cancellation policy you should be prepared for bad weather.” Mr Rawnsley said failing to accept the available help for preparedness, will result in a bigger clean-up, greater costs, and more damage to a property than those managers who do prepare well. “The managers who are ready for storm season are the ones who are more highly valued by their community. “And with the insurance situation at the moment the more you can do to stop damage to a property the better it is for your insurance bill next time it comes

up for renewal. Being prepared saves time and money.” Mr Rawnsley said hotel managers should do a risk assessment on their property, including making sure they have appropriate insurance, especially business interruption insurance. Laura Bos, the General Manager of the Strata Community Association (Qld), said storms and wild weather were an inevitable part of life in Queensland and preparation was “everything”. “We urge all our strata managers to assist their bodies corporate to get ready for storm season,” Ms Bos said. “This year they are predicting

“The further north you go in this country the inevitability of severe weather events is more certain,” Mr Rawnsley said. “If you’re not preparing, if you’re not engaging with your local SES or local authorities to give you information – and there’s plenty of it out there – then you are not doing a good job.

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“Pre-planning is critical to ensure that bodies corporate, lot-owners, and residents can stay safe, mitigate any potential damage, and avoid unnecessary repair costs. I know many of our SCAQ members have been working with their bodies corporate for some time on the issue of storm season readiness. “Being prepared and mitigating risks is also a good thing when it comes to insurance premiums. Ensuring drains and gutters are clear, windows are properly sealed and trees are maintained properly all help. “It’s also critical to have a plan in place if something goes wrong - torches for blackouts and also be storm aware and ensuring balconies are clear of flying objects if a storm warning is current.”

How to prepare your property

“All sorts of things happen in summer: fire, flood and cyclones.

an El Niño cycle, or drier weather, but that won’t mean we are immune from storms.

MANAGEMENT

Being prepared for disasters could be the difference between staying safe or putting yourself and those you love in danger. Storm preparedness includes checking that walls, roof and

SPECIAL REPORT

eaves are secure, treetops and branches are clear of the property, loose material and furniture that could cause injury in high winds has been stored, and fuel tanks are full.

day if you have certain areas where you can put demountable barriers and prevent that water coming through, that will save your property in the long run.” Since 2011, Queensland has been rocked by more than 70 significant natural disasters.

Radiant heat from a large bushfire has the potential to melt or crack objects including parts of cars, and glass windows The heat can be felt more than 100m away and bushfire smoke can impair vision and create difficulties in breathing. It is important to make sure you follow any local alerts and evacuation warnings. Property owners are urged to prepare for bushfire season by clearing out gutters because embers and sparks can quickly set leaves alight. Managers are advised to check roofs for any damaged or missing tiles – and repair or cover gaps in external walls to help reduce the chance of embers getting in. Cutting back trees or shrubs near buildings and keeping lawns well-maintained can help minimise the spread of fire. If verandas or decks have mats, outdoor furniture, wood piles or even flammable liquids such as petrol or chemicals, they should be moved out of the way to reduce the chance of them catching alight. Metal fences can better withstand the extreme heat of fire than wooden fences, and attaching fine metal mesh screens on the outside of windows and doors is also a sound preventative measure. Queensland’s extreme weather can cause a property to lose electrical power, water and gas. Roads may be blocked in a storm and it may be impossible to reach a supermarket or pharmacy for supplies. The website getready.qld. gov.au advises everyone to prepare an emergency kit and store it somewhere safe so necessary items are close by when the weather turns bad. Making an emergency kit only requires a little extra shopping at the supermarket. The government advises that managers should have in their emergency kit at least 10 litres of drinking water per person, non-perishable food for three

In bushfires the fire itself is only one element of the danger. Radiant heat and smoke are huge hazards.

days, important documents stored on a USB, sturdy work gloves for removing rubbish and debris, enough tissues and wipes for each guest, batteryoperated radio and torches, spare batteries to last three days, toiletries for three days, sunscreen and insect repellent, can openers, phone and portable charger, and hand sanitiser and face masks for each guest.

He joined the State Emergency Service after the Queensland floods in 2011 when Riverside’s car park and the first level of the building were destroyed, along with the restaurant and the office.

It’s also essential to pack first aid supplies and medicines that may be required if there are long periods with no power or access to shops.

“One of the biggest things I learned working with the SES was how to use sandbag barriers effectively. Sandbags themselves don’t cut it. You have to use them with big rolls of plastic to make the barrier, because the sand will soak up as much water as it can and let the rest flow through. The plastic will allow the barrier to hold water back for much longer.”

Preparation success stories Mr Rawnsley said when he managed a resort on the Gold Coast with an open pool area he would throw the pool furniture - plastic chairs and sofas - into the swimming pool during heavy winds so they didn’t get blown away. “Doing that reduced the damage to the pool furniture and equipment and it also gave it a good clean,” he said. “Preparation goes a long way in storm season and that includes things like taking chairs off balconies and preparing guests for what is coming. “While people who live in Queensland or other parts of Australia are prepared for storms, a manager might have guests coming from interstate or overseas not familiar with our weather and they need to make them ready for things like cyclones.” Chris Podmore has almost 20 years of involvement in management rights and learned a lot about preparing for disasters during his time at the Riverside Hotel beside the treacherous and unpredictable Brisbane River.

“A lot of the skills that I learned at the SES have really helped me working in management rights,” he said.

Mr Podmore said it was imperative for properties in flood-risk areas to have the best submersible pumps for the building and to have them checked regularly. “At one of the buildings I was managing the pumps hadn’t been looked at in ages and so when the flood came, they couldn’t keep up,” he said. “The other building we had was well prepared for flooding. We put in bigger pumps, so it kept up with the flow of water that was coming into our sump well. “It’s important to future-proof buildings as well. At Riverside a lot of our infrastructure was in the car park and we were looking to move them to higher levels. In the case of the elevators when it came time for renewal, we replaced them with elevators that had the motor in the roof rather than in the basement – that way we knew they would always be safe. “Some properties also install demountable flood barriers – it’s a big cost but at the end of the

MANAGEMENT

In 2017 Cyclone Debbie handed Whitsundays tourism a $180 million damages bill, and emergency services had to evacuate thousands of holidaymakers stranded on resort islands hit by wind gusts stronger than 260 km/h. During the most destructive phase of Cyclone Debbie, Jo Matthews at the Toscana Village Resort at Airlie Beach, showed once again the vital role of a resident manager. Most people had evacuated and gone home before the cyclone arrived but there were still people ready to ride out the storm. Some were residents living beside the Whitsundays, and a couple of tourists who couldn’t get a flight. Jo knew exactly where they all were. She put the garden furniture in the swimming pool, so it didn’t blow away, and baked muffins, delivering them to people in their apartments on the afternoon the cyclone was coming. She warned everyone what would happen when the cyclone hit, made sure they got everything in off the balconies and reassured the residents and guests that, while they would lose power, they just had to hang in there and sit tight no matter how hard the wind roared. She told them it would be traumatic for a few hours, but the storm would eventually pass. Jo gave them torches and matches and supplies to keep them comfortable. Cyclone Debbie charged into Airlie Beach, the power went out, and the noise of the wind was terrifying. It stopped at about 9 o’clock. Most people thought it was over, but Jo warned that it was only the eye of the storm. The tail was even more intense, slamming into the Toscana with even more ferocity. Jo lost a lot of foliage and there was a lot of broken glass, but largely thanks to her efforts as the resident manager, there were no injuries to people staying there. December 2023

THINKING MR

I’m sorry if I bore you are getting smashed. It is clear to all, except the geniuses who run the place, that government subsidies, increased inward migration, incentivised laziness, poorly planned and hyperexpensive energy transitioning, and insane levels of regulation are harming our economy. All these policy settings are inflation contributors, so what do we do? We hit the families and businesses with mortgages, using the bluntest tool in the economic tool kit... interest rates.

I come this month with sad tidings, dear readers. Absolutely nothing unpleasant has happened to me this past month and the ‘managing director’s’ attempts to create an amusing anecdote at my expense have failed. Nice try with the hair dryer in the bathtub dearest, but I live on. To my great concern, readers, your feedback suggests that the more life bites me on the bum, the more amusing you find my reporting. I understand. Of course, we face Christmas 2023 with much unpleasantness in the world and far be it from me to offer any solutions. Sadly, perhaps humanity is simply destined for conflict albeit we must never give up hope.

By Mike Phipps, Mike Phipps Finance

stupid, and I would suggest the good people of Oz have landed right where Clinton and Bush found themselves in 1992. While they had endured the recession they had to have, the wounds were fresh with consumers who had been paying fixed rates of 18 percent. By the time Clinton had introduced his policies, rates were back to 9

percent. Albeit to give Bush H W some credit, the trend was already pretty clear in 1991. And so, the trend here in the best country on earth is also clear. Productivity has tanked, we don’t make anything except soy lattes anymore, rents are unaffordable, people don’t want to work and mortgage holders

Turns out Carville was on the money. It was the economy

December 2023

The situation is best evidenced by those geniuses who want to

And on that solemn note let’s focus on a problem brewing at home that I think we do have the capacity, if not the will, to rectify. To quote James Carville, senior advisor to that sax playing, intern chasing larrikin Bill Clinton, “It’s the economy, stupid!”. At the time, George Bush Senior was El Presidente and the US economy was recovering from a recession. It was 1992. George H W was seen to be out of touch with the ordinary punters. Clinton won in, what was compared to today’s standards, a landslide! Interestingly enough, billionaire Ross Perot ran as an independent on a largely economic management platform and scored an unprecedented 19 percent of the popular vote.

It beggars’ belief that nearly every economic and social justice policy employed by our current governments, both state and federal, adds to inflation pressure. All the while non-discretionary spending drivers like fuel prices and rent spiral out of control. Flogging families and businesses in the suburbs with rising mortgage payments, horrendous fuel bills, and record rental costs isn’t going to stop them trying to get to work or put a roof over their heads. Economic and social policy needs to change.

MANAGEMENT

turn off reliable fossil fuel and gas-based power in favour of socalled renewables. Setting aside the farce that is “renewable”, let’s get the alternate power sources sorted before killing the current ones. There’s a transition stage. No one went out and shot all their horses the day Henry Ford rolled out the Model T. In fact, if they had, the result would have been inflationary and Henry’s product would have been a whole lot more expensive. It’s all pretty grim to be sure, but I see light at the end of the tunnel and I’m hoping it’s not a train. Not that many years ago we had dodged the GFC bullet and were all living in an economic paradise. Debt was

cheap, rents were reasonable, and we were mostly not living in our cars. In fact, times were so good there for a while, that the population could afford to support some woke causes and dream of a better world. COVID, in the form of out-ofcontrol money printing, laid that dream to rest. In fact, I’m sure a growing number of the great unwashed out there in the ‘burbs have lost all interest in being social warriors and virtue signallers. Given a choice between keeping the lights on and a roof over their family’s heads, as opposed to filling Bass Strait with wind turbines, I’m very sure I know how that choice would play out. Here’s a final thought. I reckon

the general population was fed up with how the place is being run long before the Yes/No referendum campaign gained full steam. Sadly, as I have some sympathy for the issues facing our Indigenous population, the vote was a chance for voters to tell our ruling politicians exactly how they are feeling. I suspect in happier economic times; the result would have been much closer. So… P Dutton, grow a pair and give the electorate a real alternative. Better to go out in a blaze of glory, albeit I suspect some bravery will be well rewarded. I’ll leave you with Winston Churchill. For you, young people,

MANAGEMENT

It’s all pretty grim to be sure, but I see light at the end of the tunnel and I’m hoping it’s not a train. look him up. He was quite the achiever back in the day!

“We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” Disclaimer: Contrary to popular belief, I am not a rusted-on Liberal voter. If Bob Hawke and Paul Keating were running today, I’d back them. Sadly, we’ve got latter-day Gough Whitlam and Jim Cairns. Like our current Jim the treasurer, Jim Cairns had a PhD in economics and zero grasp of real-world policy outcomes. Read the Wikipedia entry on what was a very “colourful” life. Nothing’s really changed.

December 2023

GOOD GOVERNANCE

Building works: When do you need a private certifier? and will not be covered by insurance, so it is really important to make sure the required approvals are obtained and in place in a timely way.

So how do we know when to engage a private certifier? By Lynda Kypriadakis, The Diverse Group of Companies & DPX Projects

Every strata property or body corporate will eventually need repairs or upgrade works on the common property that requires official building permits and certification. Capital upgrades, alterations, additions, or repairs to the common property of the strata scheme can trigger a requirement for an amendment to the development approval and/or a fully-fledged building approval from the local consent authority. Failing to obtain the proper approvals may result in the body corporate undertaking unapproved building work, which is an offense. Unapproved building work will not be able to obtain compliance certification

The easiest way to determine whether the proposed works are assessable and require a private certifier is to make contact with a certifier direct. It may cost an hour of their time to consult with you about your project but it will be well worth it. Private certifier fees are around $350+GST per hour for a preliminary consultation about building work but you can expect them to explain to you exactly what construction compliance requirements apply to your specific project.

What would not require a private certifier? Works that would not require a private certifier in a strata complex would include non-structural works such as repainting the building or repairing landscape structures such as refurbishing a swimming pool or a garden retaining wall under 1 metre in height. Replacing a driveway or paved landscape area wouldn’t require building approval.

Failing to obtain the proper approvals may result in the body corporate undertaking unapproved building work, which is an offense 24

December 2023

What projects would require a private certifier?

•

Combustible cladding replacement.

•

Here are some common strata complex projects that definitely require a private certifier’s involvement:

Underpinning works to concrete footings and slab defects.

•

Balcony or deck framing repairs or replacement.

•

Stairs or balustrade replacement.

•

Lift upgrade or replacement.

Reroof or roof replacement – even if works are done under an insurance claim, the body corporate must make sure there is a private certifier and building approval.

•

Replacement of any structural beams or roof framing material.

•

Box gutter replacement.

•

Replacement of windows or doors.

•

Replacement of balcony balustrade.

•

Any extension of the building that creates additional square meterage.

•

Any change to the fire protection system, including passive fire separation (party walls) fire safety installations (eg., fire doors, hydrant system) and/or building anything in the fire escape pathway.

•

Retaining wall higher than 1 metre in height – or any retaining wall that forms part of the structure of the building.

•

Any structural repair should have a private certifier comment about building approval before proceeding (eg., repairing roof trusses or structural columns/posts on common property).

•

Building access hatches onto the roof.

•

Replacing external façade treatments such as shutters/screens, decorative timbers, fretwork or cladding.

MANAGEMENT

All too often a committee for a strata scheme pushes ahead with capital works projects without prior consultation with a project manager or private certifier and ends up undertaking unapproved building works that can’t be certified or insured. There is always some well-meaning individual on the committee with some knowledge about building works or construction that helps out with advice and ideas, but unless that committee member is a qualified and licensed project manager or private certifier, any advice should be confirmed by a professional consultant for good orders sake. Unapproved building works may ultimately need to be removed under a Show Cause Notice from the local consent authority if built without the prerequisite mandatory approvals. Those bodies corporate that attempt to obtain retrospective approvals (after the building works are complete) find they outlay much, much more in fees than they would have, had the applicable approvals been obtained prior to the works being done. The bottom line is that for a very small amount of money the committee can consult with a private certifier to obtain clear, concise and unbiased information that is completely site-specific and relevant – before the project is tendered or built.

BUILDING RELATIONSHIPS

Let’s communicate this festive season… all the knowledge about their property within the community/complex/ building. Trust me, they’ll love hearing from you.

for some, but hear me out. What better time than Christmas to strengthen your connections with your community?

By Kelley Rigby, Managing Director, Letts Rebuild

In this digital age, with Facebook, Instagram, TikTok, Twitter, LinkedIn, and WhatsApp, the list of communication platforms seems endless. Recently, I had an interesting revelation from my insightful 16-year-old stepdaughter. She informed me that traditional text messages and phone calls have become a thing of the past for her generation. Now, they prefer to exchange audio messages. While it does make me worry about the next generation, that’s a topic for another article. In my final editorial for 2023, I want to emphasise the importance of the good oldfashioned human-to-human, voice-to-voice phone call. I understand that the mere thought of it may induce panic

As the year draws to a close, people tend to relax, finish work, and embrace the spirit of bidding farewell to 2023. This season offers an opportunity to reach out to others, so why not pick up the phone and call to wish them happy holidays? It’s as simple as that — no sales pitch, no hidden agenda — just a sincere phone call to express your best wishes. Now, when I mention no hidden agenda, I must admit there might be a small one: building or reinforcing relationships that you haven’t had the chance to nurture yet. I acknowledge that we have an array of communication methods at our disposal these days, and each one has its place. A good old-fashioned phone call or a face-to-face conversation, though, will never become obsolete. Now, for those of you sitting at the back, shrinking in your seats and silently hoping I won’t single you out, rest assured I won’t. Instead, I’ll share some helpful tricks of the trade. 1.

First and foremost, remember that this isn’t a cold call. You’re not a salesperson trying to peddle printers. You are their onsite manager, the authority figure who possesses

Take some time to tune into a great song, go for a leisurely walk, or listen to an inspiring podcast. This will help you get into the right mindset.

Don’t forget to eat! Avoid making calls while you’re hangry (perhaps that’s just a personal quirk of mine ... I’m currently pregnant).

Start by contacting your favourites. I understand, officially, we’re not supposed to have favourites, but let’s be honest—we all do. Begin with those owners and feel the rush of adrenaline before tackling the potentially more challenging ones. Yes, you still have to make those challenging calls.

Make a habit of taking notes. Get ready for the new year by keeping notes about their activities and interests. By doing so, when you call them in the new year, you can engage in a more personal conversation.

As an onsite manager, you are the person that holds a community together. I know sometimes it might not feel

like that, but you are. You are the captain of the ship, and it is up to you to navigate those waters into calm seas (disclosure I am not a boatie at all so I hope that made sense). To conclude my final 2023 article, I would like to wish you all a spectacular Christmas. I hope it is filled with love and laughter. I extend my heartfelt gratitude to the team at Resort News for providing me with the opportunity to write for them throughout the year. Thank you for putting up with me and being so patient. From a young girl who once struggled with English, to now writing articles for the industry magazine, this journey has been remarkable. I am sincerely grateful to the team for always believing in me. Your unwavering support is truly amazing. SIDE TIP SCRIPT: “Hi Scott, it is Kelley here your onsite manager here at ABC Complex, how are you? I am calling to simply wish you and your family an amazing time over the Christmas break. Do you have much planned? That sounds great, well please know we are here over the holidays if you need anything. Of course, we will be having some time with our family also but here if you need. Thank you for a great year and allowing us to do what we do here. Looking forward to chatting in the new year. BYE”

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

MANAGEMENT

December 2023

SOFTWARE SOLUTIONS

You can lead a horse to water but how do you make them drink? Save’ offer. Entice them with a compelling incentive such as a five percent discount code or even an additional travel perk of a complimentary upgrade. Travellers will always shop around for a better deal, so let them know that booking direct will be the best rate.

convert to more bookings? Often the answer is no. The success of paid marketing is reliant on the performance of the linked website.

By Nikita Johnston,

Marketing Manager, HIRUM Software Solutions

In my current role as the Marketing Manager for HIRUM Software Solutions, I have the pleasure of engaging with clients daily, delving into strategies not just to boost their overall occupancy but to improve their direct bookings. Saving OTA commission rates can be a game-changer for accommodation providers.

Here are the key elements you need to consider when crafting a seamless and profitable direct booking experience that help you stand above your competition: 1.

Branding Consistency: Your website should reflect your brand identity, mirroring consistency across all your platforms - social media, website, Google Business Page, you name it, it needs to be consistent. The appearance of your brand should also reflect the live experience accurately, creating a cohesive experience for the traveller. Seal the Deal: Capture attention as soon as visitors land on your site with a ‘Book Direct and

Easy Booking: Make the ‘Book Now’ or ‘Book Direct’ button popout at them as soon as they arrive on your website, no matter what page they land on first. Device Optimisation: Your website needs to navigate smoothly across various devices - computers, smartphones, or tablets where speed is also crucial! Make sure your website not only ‘looks’ good across all devices but that it loads instantly to provide a great customer experience from the outset. User-Friendly Calendar: Enable customers to effortlessly pick their desired dates using a calendar or dropdown menu. Crystal-Clear Options: Transparency and flexibility is king. If options are limited, showcase when bookings are available. Flexibility often wins over potential guests.

Many clients tend to spend their marketing budgets solely on Google and Meta ads, in pursuit of driving traffic to their websites. However, does this increase in traffic actually

The real secret lies in diverting more marketing efforts toward the pivotal point where customers seal the deal - the website and direct booking engine. Instead of spending large amounts of marketing dollars gaining more website visitors, spend the time and resources on perfecting the customer experience so that you essentially ‘get those horses to drink’!

December 2023

MANAGEMENT

Now that you’ve implemented the strategies mentioned above and secured that direct booking, the next milestone is ensuring the guest not only stays but also becomes an advocate for your property among their circle of family and friends. Remember, the guest journey doesn’t end with the booking; it’s the entire experience, starting even before their stay.

My suggestion? Establish consistent prestay communication to keep the customer at the forefront of your service. Here are some tips to master your pre-arrival communication: 1.

Encourage guests to connect with you on your social media platforms.

Take the chance to share a hidden local gem, something only the locals know about - whether it’s a secluded beach spot or a must-visit local wine cellar.

Recommend your favourite dining spots in the area, catering to various budgets and tastes.

Offer assistance by connecting them with your preferred tourist agent, ensuring they have the opportunity to explore unique local experiences.

The race to win bookings is ever present, and unfortunately even though a client has booked directly with you, they likely already exist in the database of one of your direct competitors, a global OTA. These global marketing giants constantly inundate their own database with weekly emails of special deals, tempting them to book through their platform. Therefore, it’s incredibly important to keep your foot on the pedal of customer engagement until the guest is tucked safely into one of your beds!

NICHE TRAVEL

The art of solo travel Image courtesy of Interline Travel

people around them. Without the comfort of a familiar companion, solo travellers are more likely to engage with locals and fellow travellers, forming meaningful connections that might be overlooked in the company of others. The ability to strike up conversations and forge new friendships becomes a skill cultivated in the rich tapestry of solo adventures. By Stephen West, Interline Travel

Solo travel, once considered an unconventional choice reserved for the adventurous few, has evolved into a transformative and empowering experience. Despite its growing popularity, though, a lingering stigma persists around the idea of embarking on a journey alone. It’s time to unravel the misconceptions and celebrate the joys and lessons that come with solo exploration. One of the primary myths surrounding solo travel is the notion that it is lonely and isolating. Solo travellers often find themselves more connected to the world and the

Safety concerns also contribute to the stigma surrounding solo travel, particularly for solo female travellers. While it’s crucial to prioritise safety, the assumption that traveling alone is inherently dangerous oversimplifies the reality. With proper research, awareness, and basic precautions, solo travellers can navigate the world safely. Additionally, the sense of independence gained from solo travel often results in increased situational awareness and adaptability, valuable skills that extend beyond the realm of travel. Another misconception is that solo travel is reserved for the extroverted and outgoing. In truth, solo travel caters to a wide spectrum of personalities. Introverts may find solace in self-reflection and the freedom to explore at their own pace, while extroverts thrive on the

constant social interactions available on the road. Solo travel is a customisable experience, accommodating the diverse preferences and needs of individual travellers. Financial concerns also contribute to the stigma, with the assumption that solo travel is cost-prohibitive. While some costs may be higher without the sharing of expenses, solo travellers often find creative ways to manage their budgets. From staying in hostels to leveraging solo travel discounts, there are numerous strategies for making solo adventures financially viable. Additionally, the priceless experiences and personal growth gained from solo travel are often considered a worthy investment. Cruise lines are becoming more realistic in their approach to this massive, significant market by lowering the 100 percent loading, to anywhere from zero to fifty percent. The fear of judgment, both from others and oneself, is a significant barrier that solo travellers must overcome. Society’s expectations often dictate that certain life milestones, such as travel, should be shared experiences. However, the evolving landscape of

TOURISM

individualism and personal fulfilment challenges these norms. Solo travel offers an opportunity for self-discovery, self-reliance, and the freedom to pursue one’s passions without the constraints of societal expectations. As the travel industry adapts to the changing dynamics of tourism, solo travel is gaining wider acceptance and recognition. Travel agencies and tour operators now cater specifically to solo travellers, offering tailored experiences and itineraries. The rise of solo travel influencers and online communities further dispels the stigma, showcasing the diverse stories and perspectives of those who have ventured into the world on their own terms. In conclusion, the stigma surrounding solo travel is a relic of outdated perceptions. Solo travel is not a lonely pursuit; it’s a celebration of independence, self-discovery, and the limitless possibilities that unfold when one steps beyond the borders of familiarity. As more individuals embrace the transformative power of solo exploration, the narrative around solo travel is shifting from stigma to celebration, ushering in a new era of personal and collective growth. December 2023

TOURISM REPORT

Sunshine state glows with tourism records Queensland tourism is celebrating a recordbreaking year with $33.2 billion in overnight visitor spend for the 12 months to June 2023, or almost $91 million a day. Tourism Research Australia data shows that 1.6 million international visitors travelled to Queensland during the last financial year, spending $4.3 billion and putting the state’s recovery in overseas spend ahead of the national average by two percent. Queensland outperformed the national average in the June quarter for international visitor spend from New Zealand ($212 million, up 50 percent), the UK ($86 million, up 38 percent) and Canada ($34 million, up 23 percent). While matches in the FIFA Women’s World Cup brought Queensland to the eyes of the world, the state also hosted other major events including the NRL Magic Round, the 2023 Outback Queensland Masters (Australia’s most remote golf series), Toowoomba’s Carnival of Flowers, the Savannah in the Round in North Queensland, and the inaugural Pacific Airshow on the Gold Coast. Visitors from Canada for the June quarter, compared with the same period in 2019, increased more than 30 percent to 17,000, following Air Canada’s increase in flight

December 2023

exceeded the same period for 2021/22 ($3 billion) but also surpassed the pre-COVID year of 2019 ($2.7 billion). Matt Stoeckel, CEO of Visit Sunshine Coast, expressed his delight, highlighting the resilience of Sunshine Coast tourism operators in a challenging year. “Our marketing campaigns generated strong interest in, and demand for, the Sunshine Coast and this is reflected in the data coming from Tourism Research Australia,” he said. Images courtesy of Visit Sunshine Coast

capacity to Brisbane, secured by the $200 million Attracting Aviation Investment Fund.

leading 29 percent share.

Domestic business visitors to Queensland in the year to June were also up by more than 25 percent to 5.3 million, spending $4.7 billion which is up almost 77 percent.

In total, Queensland welcomed 25.3 million domestic visitors in the year leading up to June 2023, a significant increase of 16.4 percent compared to the previous year. Notably, both the Gold Coast, with 4.3 million visitors, and Tropical North Queensland, with 2.5 million, welcomed more domestic visitors than ever before. Brisbane recorded 7.2 million domestic visitors who spent a record-breaking $6.9 billion, while the Outback and Mackay regions also broke spending records, raking in $892 million and $751 million, respectively, each hosting 1.1 million visitors.

Queensland continues to shine as Australia’s holiday destination of choice with 10.8 million holiday visitors, up 15 percent and spending $16 billion for a nation-

The Sunshine Coast in particular, shone brightly in terms of domestic traveller expenditure, reaching a record-breaking $4.4 billion. This impressive figure not only

China has returned to Queensland’s top three for international visitor spend at $88.5 million, behind New Zealand and the USA. International holiday visitors stayed on average 14 nights in the June quarter, two more nights than the same period in 2019.

TOURISM

“While domestic travel results remained very positive for the year, the International Visitor Survey showed that we are yet to reach full recovery in overseas holiday visitors. Our direct services from Auckland over the winter months stimulated the trans-Tasman market, and it has been pleasing to see the return of UK, European and Asian visitors to the Sunshine Coast.” Mr Stoeckel said that a focus for 2024 would be on promoting the region’s food and agritourism assets through a new promotion called Queensland’s Sunshine Pantry. Agritourism is one of the growth travel sectors in Australia, with visits to farms and producers estimated to be worth over $7 billion to the Australian tourism economy. Queensland Tourism Minister Stirling Hinchliffe said the latest visitor data was a great credit to tourism operators and the “world-class visitor

Helping to boost Queensland’s tourism success is the fact that China’s largest airline has restarted direct flights to Brisbane from its Guangzhou aviation hub. China Southern will initially fly four services a week, increasing to daily for the Chinese New Year travel season. It is predicted that the flights will generate $440 million for Queensland’s visitor

Meanwhile, Brisbane has risen from being described as “uneventful” to “dazzling,” earning a spot on the world’s top destinations to visit in 2024 according to international travel guide Frommer’s. The guide highlights Brisbane’s Cross River Rail project, set to conclude in 2026, which will enhance the city’s transit options, particularly as Brisbane prepares to host the 2032 Summer Olympic Games. The Queen’s Wharf casino, hotel, and dining precinct, scheduled to open in April 2024, is also noted for its contribution to Brisbane’s appeal.

experiences”, with Queensland remaining the nation’s favourite holiday destination. “Queensland’s visitor economy continues to break records, bringing the state a step closer to our target of building a $44 billion-a-year tourism industry by the 2032 Games,” he said. CEO of Tourism and Events Queensland, Patricia O’Callaghan said demand for Queensland was high, and the state’s tourism operators intended to keep it that way. “The focus will remain on reinvigorating our markets, driving demand through cutting-edge, high-impact marketing campaigns and leveraging the influence of Queensland’s destinations and industry,” she said.

economy and support 1790 local jobs over three years. Additionally, Australia’s two busiest regional airports are hoping they can strike deals with Qatar Airways after the airline’s failed bid to operate extra weekly flights into three major capitals. Operators of the Cairns and Gold Coast airports believe increased competition would lower airfares.

Tourism employs 206,000 people and generates more than $22 billion in annual revenue, according to Tourism and Events Queensland.

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“…Sunrise Internet installed high speed internet into our building and the results have been amazing. We have had no complaints and no issues since our Internet was installed. Nothing was too hard, and our questions were always answered. The staff are just a phone call away and it feels even better to be supporting a local business. We would highly recommend Sunrise Internet to anyone looking to update their Internet”

“…with the flick of a switch our internet services moved to world class Gigabit capable internet. Resident and guest satisfaction has skyrocketed with the availability of fast, reliable industry leading internet, which allows our resort to include phone, video and streaming services never before offered. Absolutely Brilliant!”

– Seamark on First, Mooloolaba

Manager Atlantis Marcoola Beachfront Resort and past ARAMA President (Australian Resident Accommodation Managers Association.)

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TOURISM

sunri sei nternet.com.au December 2023

ResortBrokers Management Rights Report 2023 launch Brisbane’s Calile Hotel saw a packed house of management rights industry stakeholders for the breakfast launch of ResortBrokers Research’s Management Rights Report 2023 on Friday, November 10. The capacity audience of industry specialist lawyers, developers, accountants, valuers, and brokers, as well as several operators, were welcomed by emcee, ResortBrokers Director of New Developments & Hotels Tim Crooks, followed by the keynote presentation by ResortBrokers Director Alex Cook and ResortBrokers Property Economist Josh Mangleson, the report’s principal author who heads up ResortBrokers Research. Management Rights Report 2023 builds on ResortBrokers Research’s inaugural 2022 report, which was the first ever quantitative analysis of Australia’s management rights sector. For this year’s report, ResortBrokers Research surveyed over 400 management rights operators across Australia with the assistance of peak industry body ARAMA, and analysed management rights sales data of its own, as well as sales data provided by the two leading management rights valuers in the industry, AccomValuers and Australian Valuers. The key takeaway from this year’s report is the size of Australia’s management rights industry. ResortBrokers Research estimates the sector is worth an estimated $8 billion, $3.2 billion more than reported in 2022, with approximately 286,000 lots under management rights. “We’re now able to provide a more granular picture of Australia’s management rights sector than our inaugural report,” said Mangleson. “The buy-in from our new data partners, ARAMA, AccomValuers and Australian Valuers, as well as the expansion of our own research competencies, means we now have a more statistically reliable sample size than that used for our 2022 analysis.”

December 2023

EVENTS

Accommodation Industry Christmas Golf Day The weather held off on Friday November 24, for the end of year Christmas Golf Day and the course at Lakelands Golf Club was in great condition. A special thank you to Hole sponsors – Rochele Painting for providing the ute full of beer for all to enjoy on Hole 10, REI Master for fun Christmas competitions on Hole One and the Golfer Girl hitting drives for everyone on Hole 14. A big thank you to all the sponsors for their support in giving away 24 Christmas leg hams; a drink tab on the bar after the game and prizes for everyone on the course, and not forgetting the prize draws at presentation. Competition winners for the two-player Ambrose were: •

1st Placed Team: David Ekberg and Damon Hardiker – Score: 56 ¾.

•

2nd Placed Team: Dean Barnes and Dane Richardson – Score: 61 ½.

•

3rd Placed Team: John Christopher and Colin Boswarva – Score: 62 ¼.

The dates and Venues for the 2024 Accommodation Industry Golf Series are now confirmed: •

Round One: RACV Royal Pines Resort - Thursday March 21.

•

Round Two: Maroochy River Golf Club - Friday June 7.

•

Round Three: Glades Golf Club -Thursday July 25.

•

Round Four: Oxley Golf Club Brisbane Thursday October 17.

•

Round Five: Lakelands Golf Club Friday December 6.

EVENTS

December 2023

2023 ABMA Information Breakfast It was a full house on Wednesday November 15 at Riverside Hotel, Brisbane for an information breakfast discussing, national standards for caretaking performance, contract schedules, and remuneration reviews. The event was hosted by Mike O’Farrell and the impressive speakers included: Dr Nicole Johnston, Founder and Director of Strata Knowledge, Debbie Wigan, renowned remuneration expert, Barry Turner BMCS Founding Director and David Ross, Operations Manager for Diverse FMX. The morning concluded with an open question forum, which inspired lively discussions.

Farewell to Stephen William Burton Steve as many fondly called him, passed away on November 4, 2023, after a long fight with leukaemia.

firms. He supported fledgling businesses, including Resort News, with whom he had a regular advert in every issue for well over 10 years when it first started.

For the past 28 years, Steve shaped a successful finance business and touched the lives of employees, clients, business professionals, and the general community.

As a person, Steve was a happy-go-lucky individual who rarely let an obstacle get in the way of achieving a positive outcome.

Steve was a visionary. His legacy is a testament to hard work, innovation, and creative vision. Steve believed in equal opportunity; he believed in fairness. Many in the management rights industry would have crossed paths with him in the almost three decades of PCS Finance. Steve was a trailblazer and a pioneer who was involved in thousands of Management and Letting Rights transactions. He was the one who identified an opportunity to structure Management and Letting Rights purchases under a partnership structure.

December 2023

Stephen William Burton

He put together the best and the brightest minds in the accounting, legal, banking, and real estate sectors to achieve this. This has become the standard template for financing businesses, and other finance professionals ended up following Steve’s lead and adopted the same partnership structures. It gave ‘mum and dad’ operators the opportunity to participate in large-scale building projects. Steve was a leader in the Management and Letting

Rights industry when it came to sourcing finance and offering advice on how to structure a purchase. It is a testament to Steve’s professionalism in the MLR industry, that he had many clients who repeatedly relied on his services time and time again. He was instrumental in setting up Dreamtime Resorts, which now has a portfolio of 18 complexes. He took care of his clients, ranging from first-time investors to private equity

EVENTS

He lived life to the fullest and took everyone around with him. He was a generous person. A cool father who was not just a dad to his boys’ Aydin and Lance, but also their friend. He was a loyal friend who will be sorely missed. His loyal customer base relied on him to source finance for many different purchases over the last 20 years that would leave them comfortably retired. This is the dash that Stephen William Burton’s life represents. That little line is worth so much to so many people and he leaves a big hole that would be very hard to fill. Rest in God’s embrace.

What about Women In? The last Women In luncheon of the year was a fun-filled enjoyable afternoon, it was great to have the involvement of sponsors Resly, The Onsite Manager, Letts Rebuild Group, SSKB, Opat, Switch Hotels, Property Bridge & Accom Valuers - all indicate strong support and collaboration within the Women In community. Soko Rooftop provided a fantastic setting for the Women In Luncheon, offering a vibrant and enjoyable atmosphere for everyone to connect and

share in each other’s company, there were games and prizes that added an extra element of fun and engagement. Luncheons like these indeed play a crucial role in fostering personal connections, building a sense of community, and creating lasting memories. All the sponsors contributed to making it a memorable and enriching experience for those who attended. Marisa Millane Founder of Women In thanked everyone for the support throughout the year and said she is looking forward to a sensational 2024 with lots of networking and connecting within an ever-growing industry.

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EVENTS

December 2023

NEW MANAGER PROFILES The Islander Noosa Resort, Noosaville

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

MANAGEMENT RIGHTS Gold Coast Olympus

TY Corporation Pty Ltd

Surfers Paradise

MRS

Waterford Court

Deus Pai Management P/L

Bundall

MRS

Phoenix Palms

RAM Qld Investments P/L

Southport

MRS

Golden Gate

Dungeness P/L

Surfers Paradise

MRS

Burleigh Mediterranean Resort

Ultiqa Hotels & Resorts

Burleigh Heads

The Glass Factory

Richard & Lisa Ward

West End

Forests Edge

Jeff & Jodie McNamara

Chermside West

Breeze

Lannie Teng

West End

Renovare

JFY Management P/L

Brisbane

Ormiston Springs

Bradley & Melissa Britton

Ormiston

RB RMS

Brisbane

From left to right: Joy, Rod, Cathy, and Colin.

Sunshine Coast / Wide Bay / Fraser Coast

MR Sales wishes to congratulate the vendors of The Islander Noosa Resort, Cathy & Rod on their sale. After 26 years at the helm, they are retiring and handing the wheel over to Joy, Colin, Andrew, and their management team.

Sunseeker Lodge

Bevan Young

Sunshine Beach

Grand Palais

Luke and Pianica Boddington

Alexandra Headland RMS

The Islander Noosa

Realty Services Group P/L

Noosaville

MRS

Coco Mooloolaba

Seabreeze Group

Mooloolaba

Park Regis Concierge Apartments

Collective Hotel Management

Sydney

Harriet House

Ramandeep & Harpeet Dhaliwal

Tumut

New South Wales

The Islander is a beautiful resort in the heart of Noosaville, just steps away from the Noosa River and foreshore. With extensive amenities, The Islander has everything a family or couple require for a beautiful relaxing stay.

MOTELS & OTHER

From the moment we were asked to sell the property, we knew visitors from all walks of life would enjoy this Island getaway holiday destination. One cannot help but be impressed with The Islander and all it has to offer.

Queensland

We wish Cathy and Rod a relaxing retirement and the incoming management team a happy and profitable 2024.

Coco Mooloolaba, Mooloolaba

Warrego Motel

Maree Melksham & Guy Gibson

Charleville

Wagon Wheel Motel

Waddell

Cloncurry

CRE

The Pool

Rose Consulting

Peregian Springs

CRE

Cloncurry Motel

Waddell

Cloncurry

CRE

Exchange Hotel

Christou

Mossman

CRE

Yuleba Hotel Motel

Dave and Mel P/L

Yuleba

Nanango Fitzroy Motel

Vistaar Realty P/L

Nanango

Edgewater Motel

Amanda Grace

Burrill Lake

Quest Cronulla Beach

Robert Page

Cronulla

Bungalow Motel

Melbourne

Gilgandra

CRE

Oasis Motel

Bland

Peak Hill

CRE

Costa Rica Motel

Islam

South West Rocks

CRE

Heritage Motel

Patel

Goulboun

CRE

Forster Wallace Lake Motel

Sursinh

Forster

CRE

Clocktower Motor Inn

GW & NJ Andrews

Coonabarabran

Jaswinder Singh

Port Augusta

Blazing Stump Motel & Suites

Jarrad & Blaze Hutchinson

Wodonga

High Street Motel

High St Motel & RLAX Holding Co P/L

Echuca

Craig & Tracey Chobdzynski

Low Head

New South Wales

South Australia Motel Poinsettia

Victoria From left to right: Winston, Kylie, Chenoa and David.

ResortBrokers is delighted to announce the accomplished sale of Coco Mooloolaba, facilitated by Chenoa Daniel from our team.

Tasmania Low Head Tourist Park

We extend our sincere appreciation to our clients for entrusting us with their sale and extend heartfelt congratulations to the buyer on their fantastic new acquisition.

December 2023

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

PROPERTY

Sales

Working together, working for you. Christmas Tidings, Price Reductions...

Currumbin QLD

ID: 8002

Upper Coomera QLD

ID: 9109

Mixed Letting Rights Lifestyle Resort

Strong Permanent Management Rights

Reduced Price: $1,340,000 Net Profit: $157,300

Reduced Price: $1,398,000 Net Profit: $140,000

Contact Phil Trimble 0418 478 966

Contact Ben Lynn 0456 640 414 ben@mrsales.com.au

phil@mrsales.com.au

Peregian Beach QLD

ID: 9081

Wongaling Beach QLD

ID: 8674

Vibrant Resort in Enviable Location

Where The Rainforest Meets The Reef

Reduced Price: $1,350,000 Net Profit: $172,000

Reduced Price: $720,000 Net Profit: $187,814

Contact Meagan Monk 0459 693 160 meagan@mrsales.com.au

Contact Antonio Curulli 0488 030 853 tony@mrsales.com.au

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

Port Douglas, QLD

ID16216

MANAGEMENT RIGHTS – HOLIDAY

Robina, QLD

ID16215

MANAGEMENT RIGHTS – PERMANENT

BEAUTIFUL RESORT PROPERTY AND TOP LOCATION

PERMANENT LAKEFRONT MANAGEMENT RIGHTS IN ROBINA

Asking Price: $1,660,000

Asking Price: $ 1,500,000

Nett Profit: $ 272,495

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

Port Douglas, QLD

MANAGEMENT RIGHTS – HOLIDAY

Nett Profit: $ 127,000

Contact: Craig Johnson, 0493 108 073 craig@premiersales.com.au

ID16172

Carrara, QLD

ID16163

MANAGEMENT RIGHTS – PERMANENT

MOWBRAY BY THE SEA HOLIDAY APARTMENTS

TAKE TWO OR ONE - PERMANENT MR, NETTING OVER $192K

Asking Price: $ 1,995,000

Asking Price: $ 2,090,000

Contact: Alex Stagg, 0406 856 710 alex@mhbrokers.com.au

Contact: Greg Yang, 0430 241 109 sales@onsitemr.com.au

www.accomproperties.com.au

Nett Profit: $ 192,105

OVER 1,100

LISTINGS FROM ALL THE LEADING BROKERS IN AUSTRALIA, NEW ZEALAND AND THE PACIFIC ISLANDS Upper Coomera, QLD

ID16208

OVER 15,000 BUYERS VISIT

ACCOMPROPERTIES

ON A MONTHLY BASIS

MANAGEMENT RIGHTS – PERMANENT

DUAL MANAGEMENT RIGHTS OPPORTUNITY IN PRIME LOCATION! Asking Price: $ 2,637,000

Nett Profit: $ 312,827

ADVERTISING

LISTING OPTIONS

Contact: Phil Trimble, 0418 478 966 phil@mrsales.com.au

Slacks Creek, QLD

ID16281

SINGLE CASUAL LISTING $375 EX. GST

(Displayed until sold)

10x MORE ENGAGEMENT

MANAGEMENT RIGHTS – PERMANENT

IDEAL FOR FIRST TIME BUYERS OR THOSE SEEKING FLEXIBILITY Asking Price: $ 1,569,751 Contact: Jessie Shi, 0422 935 428 jessi@resortbrokers.com.au

Nett Profit: $ 229,097

HOMEPAGE FEATURED LISTING $750

EX. GST (Displayed until sold)

For further information on advertising opportunities please contact: Stewart Shimmin on 07 5440 5322 or email s.shimmin@accomproperties.com.au

RIVIERE ON GOLDEN BEACH

Riviere shines on Golden Beach

By Grantlee Kieza, Industry Reporter

Riviere on Golden Beach has been a landmark Sunshine Coast property since its construction in 1997. Resort News profiled the building and its then managers not long after its opening 26 years ago. Boasting 10-storeys, Riviere was designed and developed with full management input, including a fabulous threebedroom manager’s residence with stunning views. The new managers, David and Bec Hodges, moved into Riviere 17 months ago. They were taken not only by the glorious

December 2023

Giving good service and building relationships with a body corporate is so very important residence that became home to them and their two children, but captivated by its magnificent position at the southern end of the Sunshine Coast. David was a painter and renderer by trade, and he and Bec had their own business for many years. Bec had been working in real estate, property

management, and the retail music industry all her life. They had been looking for a change for some time, trying to unearth what they called “a blue-chip business” after many frustrating times chasing builders for overdue accounts from their painting and rendering work. At last, they

PROFILE

decided to bite the bullet and follow their long-held dream to enter the management rights industry. They found a beautiful building right over the water, full of luxury apartments. Bec said she and David call management rights a “blue chip business” because managers don’t need to buy stock or employ large numbers of staff, and they have a guaranteed income from the start. “When you are looking at a business, you also have an asset, your home, that goes with the business. We thought what a perfect way to move into our new home with our family and have a business that went with it right underneath us. That was very encouraging.”

“But coming from that lifestyle with a big backyard into an apartment took some getting used to.

Since coming to Riviere 17 months ago, David and Bec have worked hard to bring the building and its surrounds up to the best possible standard.

“Coming into smaller, closer surroundings and adjusting to that took time. But on the flipside, our backyard is amazing with the beach and the pool, and the parks. There are good schools just down the road and friends close by. And Golden Beach, being a very safe area, gives the kids a little bit of independence and freedom as well.”

“Riviere was one of the original, luxury holiday apartment buildings on this part of the Coast,” David said. “The owners have been very obliging when it comes to updating and doing repairs and adding new furnishings and fittings so that gives us the opportunity to sell the accommodation to guests without any hassles. “We have really worked on the gardens and brought them to a good standard, which is now very manageable. We get lots of comments that the gardens are a credit to us, it is really flattering and gives us a great deal of job satisfaction.” There are 26 units at Riviere and David and Bec have nine of them in their letting pool. To build their business, they have just taken over the management of another building, the King’s Row on Kings Beach, about five minutes away. “We have another 12 units at King’s Row, so we manage 21 units altogether,” David said.

Riviere Managers - David and Rebecca Hodges

“We are used to acreage and so are the children. We spent 11 years up there, but our kids were getting older, all our family were on the Sunshine Coast, and we wanted to have that closeness for everyone.

Bec said there had been adjustments to make, and challenges to overcome in the 17 months since they arrived at Riviere. The couple have two children, Isabella, 14, and Gordon, 12, who were raised on a large plot of land. “David and I grew up on the Sunshine Coast, but we moved away and relocated our business up to Yeppoon where we bought a hobby farm,” Bec said.

“The Coast is perfect for the kids with our family and it’s a safe area for things like bike riding and skateboarding. Gordy is always out fishing. We’ve got a little tinnie that’s moored nearby.

While Riviere was the couple’s first foray into management rights, they are not novices to the accommodation industry. David’s parents ran a couple of motels when he was a lot younger – one in north-western Victoria, at Robinvale, and the other, the Mooloolaba Motel on Brisbane Road, which they had for several years. “Bec and I came into management rights after we toyed with the idea about eight years ago,” David said. “At that time, we were just researching the industry, asking questions about how it worked, and the costs.

One of the Sunshine Coast’s most experienced firms in on-site management rights transactions. “Proud to be appointed by David and Rebecca to support and assist with the operation and growth of their businesses.”

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

Isabella Mansell SUNSHINE COAST & QUEENSLAND WIDE

5% Discount for Resort News readers when booked direct

BOOK DIRECT (07) 5492 3200

(07) 5443 5266

72 Esplanade, Golden Beach Qld 4551 • info@riviere.com.au

www.riviere.com.au

simpsonquinn.com.au PROFILE

December 2023

“When we ceased the painting and rendering business, we went back and studied throughout the COVID period. I studied community services and Bec studied health administration. But we discovered that it wasn’t really for us and then we started looking for a management rights business, and we ended up here.”

“To me, every day is a school day because we’re always learning, and you can only improve your service from it.”

David said the unit (which they love) and the idyllic location sold them on a life at Riviere. “It’s so beautiful here at Golden Beach. Riviere is a great complex, and we saw that it still had the potential to improve.”

“The things I learned there –the work ethic, the honesty and professionalism, and the communication skills – have really helped David and I in this business,” Bec said.

Their practical skills were complemented by Bec’s background in real estate, which began in 2002. Her mother had Kilpatrick Commercial Real Estate on Aerodrome Road, Maroochydore.

The look of the complex, David explained, needed work. “We thought that the units could be updated. Coming from a trade background we’ve got the knowledge of how to fix things up so that is a big help in this business.”

“They can see now that we know what we’re doing,” David said. “Giving good service and building relationships with a body corporate is so very important in management rights.

Body corporate support for the couple has been crucial, and Bec and David’s good service was key in winning the body corporate over.

“There were a few tricky things here that hadn’t had proper attention for many years. They had just stuck a bandaid over them and we offered

December 2023

a few different solutions to fix the problems properly, and they really worked. “Just having open communication with the body corporate helps so much. We say if there’s a problem, we want to know about it. If we’re doing something wrong, we want to know about it too, so we can fix it straight away.

PROFILE

“I just love being with people. I love being among them, especially in this customer service field. I could talk all day to some of our guests because they are so interesting.” The couple started their tenure at Riviere just as COVID was withering. “Things were starting to open up at last,” Bec said. “We still had policies and procedures all set in place,

but the borders were opening, and families wanted to come to visit and we had that sort of flow come on at the start of our work here which was a beautiful experience. “A lot of people hadn’t been able to see their families during lockdowns. It was terrific to see all the happiness that the end of lockdowns brought. It was a great experience for the start of our time at Riviere. “Now that COVID has passed, and we’ve headed back to normality again we’re getting

people coming in from New Zealand and America and all over the world, which is really nice. It’s been a very pleasant change.” Acquiring management rights can be a tricky process but David and Bec said they were helped enormously by the team of professionals around them. “Damian Quinn from Simpson Quinn Lawyers has been absolutely excellent,” David said, “so too has Greg Kamp from Kamp Accountants. “Our broker is Dan Cuthbert

from Power Tynan. He is out at Stanthorpe and he’s just unreal to work with as was the team at Suncorp. They’ve all been so easy and professional to work with.” David and Bec are confident the business of management rights will remain strong, although they worry that Queensland’s natural beauty will work against the industry. “The only thing that worries us at Riviere is that more and more people want to live here permanently because it’s so

PROFILE

fantastic. The influx of owneroccupiers might cut into our rental pool,” David said. “That’s why we acquired the business at King’s Row to give us some extra security. We will probably want to do something else; we may look at another property, in a year or two.” For now, they are happy with the lifestyle change and professional direction they have taken. “We love working in management rights and we love our beautiful new home on Golden Beach.”

December 2023

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

Specialist Advisers to the Accommodation & Hospitality Industry

Accounting – Audits – Taxation Due Diligence Reports

07 5631 6900 info@hostrata.com.au www.hostrata.com.au

Specialist Business Advisors to the Management and Letting Industry • Due Diligence Reports • Trust Account Audits • Structure Advice & Tax Compliance

ACCOUNTANTS & AUDITORS

Level 3, 345 Ann Street, Brisbane QLD 4000

Smiljan Jankovic 0423 595 910 SmiljanJ@agredshaw.com.au

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- GOLD COAST -

erika thomas & associates MANAGEMENT ACCOUNTANTS

management rights income verifica�on management rights trust account audi�ng prepara�on of bank review/re-finance figures

phone 07 5575 9649 | mobile 0411 841 868 erikathomas@bigpond.com www.managementrightsauditor.com.au

- SUNSHINE COAST “YOUR GUIDING LIGHT ON MANAGEMENT RIGHTS”

Your Sunshine Coast

Management Rights Specialists FOR OVER 20 YEARS

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07 5443 7789

Greg Kamp FCPA FTI

12/72 Wises Road, Maroochydore Qld 4558

info@kbaa.com.au

www.kampba.com.au

- NORTH QUEENSLAND -

07 5538 0999

info@crestaccountants.com.au

www.crestaccountants.com.au

Chartered Accountants & Specialist Advisors to the Accommodation Sector Since 1993

Management Rights Specialist Financial Due Diligence Trust Account Audits

Peter Brewer B. Bus. Acc.,FCA, CTA

t: 07 5449 9992 e: peter@pbbconsult.com.au w: www.pbbconsult.com.au

AIR CONDITIONING

Supplying the Gold Coast, Southern Brisbane and Northern New South Wales regions with quality air conditioning services since 1977.

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Call 07 5522 1044

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December 2023

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Where Value & Service are No.1!

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ART & FRAMING

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RESORT & HOTEL WALL ART RENTAL

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PREFERRED SUPPLIER DIRECTORY

Across the Sunshine Coast Call 0438 302 591 www.firstresort.com.au Whatever, Wherever, Whenever!

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December 2023

CLEANING CONTRACTORS

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sales@reimaster.com.au

ELECTRICAL CONTRACTORS

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Specialising in furniture for hotels, motels, serviced apartments, resorts and refurbishments

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December 2023

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GLASS INSTALLATION/REPAIRS

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

www.rcabusinessbrokers.com.au Specialising in Motel & Resort Sales Qld wide Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au

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Think Management Rights Wayne & Linda Stoll 0452 181 505

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December 2023

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December 2023

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Buying & Selling

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

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TRAINING & DEVELOPMENT

SPECIALISED VALUERS FOR MANAGEMENT & LETTING RIGHTS BUSINESSES AND MOTELS

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SERVING THE INDUSTRY SINCE 2006 WHEN EXPERIENCE MATTERS Valuations for all purposes - National Coverage Major Lenders, Pre-Sale and Pre-Purchase Advice Alex McCowan 0417 405 115 Alison Sun 0416 181 285

o: 07 5406 1282 e: sc@bagl.com.au Suite 2/2 Akeringa Place Mooloolaba PO Box 246 Mooloolaba QLD 4557 www.bagl.com.au

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